Company: NEOV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001683168-25-000834
Chunk: 43

Company: NeoVolta Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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 battery system such
as ours. We believe that the anticipation of the passage of NEM3 in California, as well as the timing of its post-effective implementation,
has had an erratic and temporary impact on the sales of our products in that state, beginning in December 2022.

Results of Operations

The following discussion
reflects the Company’s revenues and expenses for the three-month and six-month periods ended December 31, 2024 and 2023, as reported
in our financial statements included in Item 1.

Three months ended December 31, 2024 versus
three months ended December 31, 2023

Revenues - Revenues
from contracts with customers for the three months ended December 31, 2024 were $1,071,581 compared to $1,017,828 for the three months
ended December 31, 2023. Such relatively modest increase in revenues was primarily due to the impact
of opening various new sales channels since the engagement of our new chief executive officer in April 2024.

Cost of Goods Sold
- Cost of goods sold for the three months ended December 31, 2024 were $747,670 compared to $811,955 for the three months ended December
31, 2023. The cost of goods sold in both periods reflected the cost of procuring and assembling the component parts of the energy storage
systems that were sold in each fiscal year and resulted in gross profits on such sales of approximately 30% and 20%, respectively, with
the increase largely being due to the reversal in December 2024 of a prior year reserve for obsolescence on component parts of our NV-14Ks
of $90,000.

General and Administrative
Expense - General and administrative expenses for the three months ended December 31, 2024 were $1,228,517 compared to $774,698 for
the three months ended December 31, 2023. Such increase was mainly due to our engagement of a new chief executive officer, who was engaged
at an annual salary of $350,000 and also received a 4 year amortizing equity award of $2,854,000, as well as the hiring of several other
employees since April 2024. The addition of these personnel resulted in a higher level of both cash compensation expense and other associated
expenses, such as marketing and travel, as well as non-cash stock compensation expenses related to the Company’s equity incentive
programs.

Research