Company: NEOV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001683168-25-003355
Chunk: 17

Company: NeoVolta Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 17
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 cash operating expenses for personnel and related costs, as well as the relatively higher changes
in our net working capital needs, including recent stockpiling and prepayment of inventory, on a comparative basis.

 17 

Financing activities.
Net cash provided by financing activities in the nine months ended March 31, 2025 was $3,051,054, compared to zero in the nine months
ended March 31, 2024. In February 2025, we closed a private equity offering under which we issued a total of 543,500 shares of our common
stock to the investors at an offering price of $2.00 per share resulting in gross proceeds of $1,087,000. In September 2024, we entered
into an agreement with a newly formed financing entity whereby we obtained a line of credit for borrowings of up to $5,000,000. As of
March 31, 2025, we had made net borrowings under this credit agreement in the total amount of $383,538 initially to fund a short-term
loan that we made to a customer in October 2024, in the amount of $250,000, which was fully repaid in December 2024. Beginning in November
2024, we have made short-term borrowings from another lender in the total amount of $2,081,845, of which a portion had been repaid, leaving
an outstanding balance as of March 31, 2025 of $1,420,116. While our increasing level of short-term borrowings from this lender have been
made at a relatively high borrowing cost in terms of interest rate and fees, we have been able to meet our rising funding needs in this
period in large part due to the timely responsiveness of this lender. In December 2024, we also received proceeds from the exercise of
warrants issued in our August 2022 public offering in the amount of $160,400.

As of March 31, 2025, we had
a cash balance of approximately $0.5 million and net working capital of approximately $4.2 million. Currently, we are not generating a
break-even level of net operating cash flow from our net sales. However, we anticipate that demand for our products will ultimately increase
over time and that, in conjunction with our recently obtained line of credit noted above and the completion of our February 2025 private
offering, we will have sufficient cash to operate for