Company: NEOV
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001683168-25-008147
Chunk: 30

Company: NeoVolta Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 30
---
 at maturity on September 3, 2028. In order to secure
such borrowings, we have granted a security interest in all of our assets to the lender. As a condition of receiving this line of credit
from the lender, we have agreed not to issue any securities pursuant to the Company’s Form S-3 (file number 333-280400), without
the lender’s consent, so long as any borrowing remains outstanding. As of September 30, 2025, we had made net borrowings under this
credit agreement in the amount of $633,538, leaving an available balance of $4,366,462. Accrued interest as of September 30, 2025 was
$48,646.

In the month of November 2024,
we initiated short-term borrowings from a commercial accounts receivable lender under a loan agreement allowing for borrowings, secured
by certain property interests, of up to a principal amount of $4,000,000. In the three months ended September 30, 2025, we made borrowings
from this lender to finance customer shipments and related costs in the total amount of $4,199,549. The lender charges a placement fee
of 1% on each borrowing and assesses interest at the rate of 2.5% per month on the outstanding borrowings. Borrowings are to be repaid
upon the earlier of: (i) 120 days from the borrowing date; or (ii) receipt of payment from the customer. In the event of default, interest
is assessed at the default rate of 1% per 7 days. In the three months ended September 30, 2025, we repaid $2,660,497 of such borrowings,
including accrued interest and fees, leaving an outstanding balance as of that date, including accrued interest and fees, of $4,142,275
(see Note 5).

(3)Equity

Common Stock –
In September 2025, the Company commenced plans for a private equity offering of shares of its common stock to accredited investors. As
of September 30, 2025, the Company had received a cash deposit from a potential investor in the amount of $800,000. Pending the subsequent
closing of the offering, of which there is no assurance, the Company has accounted for it as an advance received for stock subscription
under current liabilities on its balance sheet as of September 30, 2025.