Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 315

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 315
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 states. In the year ended June 30, 2025, two such dealers represented approximately 41% and 23% of the Company’s revenues,
however, no other dealers accounted for more than 10% of the revenues in such period. Those same two dealers plus one other one represented
approximately 39%, 12% and 12% of the Company’s net accounts receivable as of June 30, 2025, however, no other dealers accounted
for more than 10% of the accounts receivable as of June 30, 2025. In the year ended June 30, 2024, two such dealers represented approximately
20% and 14% of the Company’s revenues. Under its present contracts with customers, the Company’s sole performance obligation
is the delivery of products to the customer. Since all of the Company’s revenue is currently generated from the sales of similar
products delivered to customers in domestic locations, no further disaggregation of revenue information for the years ended June 30, 2025
and 2024 is provided.

Allowance for Expected
Credit Losses – The Company recognizes an allowance for expected credit losses whenever a loss is expected to be incurred
in the realization of a customer’s account. As of June 30, 2025 and 2024, our allowance for expected credit losses was $314,200
and $1,030,000, respectively.

Income Taxes –
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities
are determined based on the differences between the financial reporting and the tax bases of reported assets and liabilities and are measured
using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must then assess
the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than
not that some portion or all of a deferred tax asset will not be realized.

The Company accounts for uncertain
tax positions in accordance with the provisions of Accounting Standards Codification (“ASC”) 740-10 which prescribes a recognition
threshold and measurement attribute for financial statement disclosure of tax positions taken, or expected to be taken, on its tax return.
The Company evaluates and records any uncertain tax positions based on the amount that management deems is more likely than not to be
sustained upon examination and ultimate settlement with the tax authorities in the tax jurisdictions in which it operates.