Core Insights - NeoVolta Inc. has reported preliminary results for its fiscal fourth quarter, achieving approximately $5 million in revenue, marking its third consecutive record-setting quarter [1][6] - The company's full-year revenue for fiscal 2025 is projected to more than triple compared to fiscal 2024, indicating a growth rate significantly exceeding the typical annual growth of approximately 20% in the residential energy storage industry [1][2] Company Performance - NeoVolta's growth rate is approximately ten times the industry average, highlighting the accelerating demand for its American-assembled battery systems [2] - The CEO of NeoVolta emphasized the company's ability to scale production and capture market share, demonstrating clear product differentiation and operational momentum in a market with typically sub-20% annual growth [3] Market Positioning - The company is well-positioned to capitalize on the growing demand for residential energy storage, driven by rising utility rates, declining grid reliability, and increasing homeowner interest in American-assembled solutions [3] - NeoVolta's focus on cutting-edge technology and strategic partnerships aims to enhance energy management in residential and commercial applications, reinforcing its role as a critical player in the clean energy sector [4]

Core Insights - NeoVolta Inc. has achieved a record high in distributor purchase orders, exceeding $3 million in the current quarter, marking the highest quarterly total in the company's history [1][2] - The surge in orders indicates a significant milestone in NeoVolta's expansion strategy, reflecting growing demand for its energy storage systems across the U.S. through established installer networks [2][3] - The strength of the distributor channel highlights broader market traction, with sustained installer demand confirmed across diverse regions, particularly in markets like Puerto Rico where grid instability and rising electricity costs drive demand [3] Company Overview - NeoVolta is an innovator in energy storage solutions, focused on providing reliable and sustainable systems for residential and commercial applications [4] - The company aims to meet the increasing demand for efficient energy management, leveraging cutting-edge technology and strategic partnerships to enhance renewable energy storage and usage [4]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited financial statements for the period ended March 31, 2025, show significant asset and liability growth, substantial revenue increase, a widened net loss, and negative operating cash flow offset by financing activities Balance Sheet Summary (Unaudited) | Balance Sheet Items | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $535,966 | $986,427 | | Accounts receivable, net | $2,356,468 | $1,805,980 | | Inventory, net | $2,279,725 | $1,787,308 | | **Total current assets** | **$5,711,691** | **$4,656,530** | | **Liabilities** | | | | Short-term notes payable | $1,420,116 | $– | | Payable to line of credit lender | $383,538 | $– | | **Total liabilities** | **$1,885,240** | **$61,100** | | **Total stockholders' equity** | **$3,826,451** | **$4,595,430** | Statement of Operations - Three Months Ended March 31 (Unaudited) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $2,014,105 | $283,900 | | Gross profit | $514,508 | $166,145 | | General and administrative | $1,857,531 | $756,118 | | Loss from operations | ($1,370,970) | ($600,365) | | **Net loss** | **($1,449,331)** | **($589,473)** | | Net loss per share | ($0.04) | ($0.02) | Statement of Operations - Nine Months Ended March 31 (Unaudited) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $3,675,922 | $2,065,858 | | Gross profit | $931,266 | $493,190 | | General and administrative | $4,136,167 | $2,085,976 | | Loss from operations | ($3,283,789) | ($1,603,178) | | **Net loss** | **($3,384,962)** | **($1,574,232)** | | Net loss per share | ($0.10) | ($0.05) | Cash Flow Summary - Nine Months Ended March 31 (Unaudited) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($3,501,515) | ($988,827) | | Net cash provided by financing activities | $3,051,054 | $– | | **Net decrease in cash** | **($450,461)** | **($988,827)** | | Cash at end of period | $535,966 | $1,013,962 | - The company designs, sells, and manufactures Energy Storage Systems (ESS) for residential and commercial sites, primarily selling through wholesale customers[30](index=30&type=chunk) - Significant customer concentration exists. For the three months ended March 31, 2025, two dealers represented approximately **48% and 15% of revenues**. For the nine-month period, three dealers represented 26%, 24%, and 15% of revenues[34](index=34&type=chunk) - In September 2024, the company secured a line of credit for up to **$5,000,000**. As of March 31, 2025, net borrowings were **$383,538**. Additionally, the company initiated short-term borrowings from a commercial accounts receivable lender, with an outstanding balance of **$1,420,116** as of March 31, 2025[43](index=43&type=chunk)[45](index=45&type=chunk) - In February 2025, the company closed a private equity offering, issuing **543,500 shares** of common stock at **$2.00 per share** for gross proceeds of **$1,087,000**[46](index=46&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes significant revenue growth to new sales channels and CEO hiring, but increased G&A expenses led to a wider net loss, with liquidity bolstered by recent financing and a new tariff risk identified Quarterly Performance Comparison (Three Months Ended March 31) | Metric | 2025 | 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Revenues | $2,014,105 | $283,900 | Impact of opening new sales channels. | | G&A Expense | $1,857,531 | $756,118 | Engagement of new CEO and other employees, leading to higher cash and stock compensation. | | Net Loss | ($1,449,331) | ($589,473) | Increased operating expenses outpaced gross profit growth. | Year-to-Date Performance Comparison (Nine Months Ended March 31) | Metric | 2025 | 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Revenues | $3,675,922 | $2,065,858 | Impact of opening new sales channels. | | G&A Expense | $4,136,167 | $2,085,976 | Engagement of new CEO and other employees, leading to higher cash and stock compensation. | | Net Loss | ($3,384,962) | ($1,574,232) | Increased operating expenses outpaced gross profit growth. | - Net cash used in operating activities increased to **$3.5 million** for the nine months ended March 31, 2025, from **$0.99 million** in the prior year, due to a higher net loss and increased working capital needs, including inventory stockpiling[85](index=85&type=chunk) - Financing activities provided **$3.05 million** in cash, sourced from a private equity offering (**$1.09M**), borrowings under a new line of credit and other short-term debt, and proceeds from warrant exercises (**$160.4K**)[86](index=86&type=chunk) - The company has stockpiled its main components (batteries and inverters) from China in anticipation of significant tariff increases implemented by the new Trump Administration in April 2025. This mitigates the short-term impact, but prolonged tariffs could adversely affect sales and profitability[89](index=89&type=chunk)[90](index=90&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "smaller reporting company," NeoVolta is exempt from providing quantitative and qualitative disclosures about market risk - The company is exempt from this disclosure requirement because it qualifies as a "smaller reporting company" under Exchange Act Rule 12b-2[93](index=93&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were ineffective as of March 31, 2025, due to a material weakness from lack of segregation of duties, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **not effective** as of March 31, 2025[95](index=95&type=chunk) - The ineffectiveness is due to a **material weakness** stemming from a lack of segregation of duties, which is challenging to remediate given the company's size and resource constraints[95](index=95&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[97](index=97&type=chunk) [PART II. OTHER INFORMATION](index=20&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings and is unaware of any such proceedings being contemplated against it - As of the report date, the company is **not involved in any material legal proceedings**[99](index=99&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, except for a new risk concerning significant tariff increases on key components from China, which could adversely affect sales and profitability despite inventory stockpiling - A new risk factor has been added regarding **significant tariff increases** on goods imported from China, which applies to the company's main raw material components: batteries and inverters[101](index=101&type=chunk) - The company has mitigated the short-term risk by **stockpiling inventory** but acknowledges that if a trade agreement is not reached, it may have to either absorb the costs or pass them to customers, both of which could **materially and adversely affect sales and/or profitability**[101](index=101&type=chunk)[102](index=102&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On February 28, 2025, the company completed a private equity offering, issuing 543,500 common shares at $2.00 each for gross proceeds of $1,087,000, designated for working capital and general corporate purposes - The company closed a private placement on February 28, 2025, raising **$1,087,000** in gross proceeds by selling **543,500 shares** at **$2.00 per share**[103](index=103&type=chunk) - The sale was made to **accredited investors** under an exemption from registration pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D[103](index=103&type=chunk) [Defaults Upon Senior Securities](index=21&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon its senior securities - **None reported**[104](index=104&type=chunk) [Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[105](index=105&type=chunk) [Other Information](index=22&type=section&id=Item%205.%20Other%20Information) During the reported quarter, none of the company's directors or executive officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - **No director or executive officer has adopted or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement** during the period[106](index=106&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, recent agreements, and required certifications by the Principal Executive and Financial Officers - The report includes a list of filed exhibits, such as amended corporate articles, bylaws, employment agreements, and required **SOX 302 and 906 certifications**[107](index=107&type=chunk)

Core Insights - NeoVolta Inc. is projected to achieve over $2 million in revenue for April 2025, surpassing the total estimated revenue for the entire first quarter of 2025 [1] - The company previously estimated first quarter revenue exceeding $2 million, indicating a year-over-year increase of more than 600% [2] - The CEO of NeoVolta highlighted that the record revenue in April follows a record-breaking first quarter, indicating a strong growth trajectory [3] Company Growth Factors - The rapid expansion of NeoVolta is driven by increasing demand for backup power due to grid instability, rising energy costs, and weather-related disruptions [3] - The company is expanding its installer network and penetrating new markets, particularly in Texas, which is contributing to its growth [3] - NeoVolta is focused on delivering reliable and cost-saving energy storage solutions, which aligns with the rising demand in the market [3] Future Outlook - NeoVolta plans to announce finalized financial results for the first quarter of 2025 in May 2025 [4] - The company is committed to advancing clean energy through innovative energy storage solutions and strategic partnerships [5]

Company Overview - NeoVolta Inc. is a U.S.-based energy technology company focused on scalable storage solutions for residential and commercial power infrastructure [1][4] - The company aims to advance clean energy through reliable and high-performance energy storage systems [4] Market Growth - Texas has become one of the fastest-growing battery storage markets in the U.S., surpassing 6,200 megawatts of installed capacity by the end of 2024 [2] - NeoVolta has onboarded over 10% of Texas's solar installers as NeoVolta Certified Dealers, indicating strong demand for energy solutions among homeowners [2] Strategic Partnerships - NeoVolta has formed a distribution partnership with Solartek Distributors, LLC, which will enhance deployment and training for Texas-based installers [3] - Solartek's local presence and comprehensive portfolio of solar and storage equipment will support NeoVolta's growth in the Texas market [3][4]

Core Insights - NeoVolta Inc. has partnered with Virtual Peaker to enhance grid resilience and promote the adoption of distributed energy resources [1][2][3] - The collaboration integrates NeoVolta's advanced battery energy storage systems with Virtual Peaker's virtual power plant platform, enabling AI-driven energy management [2][3] - This partnership aims to empower energy consumers to actively participate in the energy ecosystem, benefiting both homeowners and utilities [3] Company Overview - NeoVolta is a leading innovator in energy storage solutions, focused on providing reliable and sustainable energy storage systems for residential and commercial applications [4] - The company is committed to advancing renewable energy and improving energy management through strategic partnerships and cutting-edge technology [4] Virtual Peaker Overview - Virtual Peaker is a prominent virtual power plant software company that helps utilities build a future-ready grid and achieve global decarbonization goals [5] - The company's software-as-a-service platform integrates distributed energy resource management, customer engagement, and load forecasting [5]

Core Insights - NeoVolta Inc. has partnered with Virtual Peaker to enhance grid resilience and promote the adoption of distributed energy resources [1][2][3] - The collaboration integrates NeoVolta's advanced battery energy storage systems with Virtual Peaker's virtual power plant platform, enabling AI-driven energy management [2][3] - This partnership aims to empower energy consumers to actively participate in the energy ecosystem, benefiting both homeowners and utilities [3] Company Overview - NeoVolta is a leading innovator in energy storage solutions, focused on providing reliable and sustainable energy storage systems [4] - The company has established itself as a critical player in the energy storage industry, catering to the growing demand for efficient energy management in residential and commercial applications [4] - NeoVolta is committed to advancing renewable energy and enhancing energy storage and usage through strategic partnerships and cutting-edge technology [4] Virtual Peaker Overview - Virtual Peaker is a leading virtual power plant software company that helps utilities build a future-ready grid and achieve global decarbonization goals [5] - The company offers a software-as-a-service platform that integrates distributed energy resource management, customer engagement, and load forecasting [5] - Virtual Peaker's technology, Topline Demand Control, is designed to enhance virtual power plant capabilities [5]

Core Insights - NeoVolta Inc. anticipates record-breaking quarterly sales, with unaudited revenue expected to exceed $2 million, marking an increase of over 600% compared to the same period last year, driven by rising demand for sustainable home energy solutions [1][2] - The company's advanced energy storage systems are designed to reduce grid dependency, lower electricity costs, and maintain power during outages, reflecting a market shift towards renewable energy and energy independence [2] - A newly introduced product offering has seen early success, with demand exceeding expectations, indicating strong momentum ahead of a broader rollout planned for late spring [3] Company Performance - NeoVolta has experienced four consecutive quarters of sales growth, showcasing the strength of its technology and the accelerating market shift towards renewable energy [2] - The company has aggressively expanded into new markets over the past six months, resulting in increased adoption of its solutions by partners [4] - NeoVolta is positioned to capitalize on the growing energy storage market opportunity, with a focus on innovation and customer service [4] Future Outlook - The company plans to release its full financial results for the quarter in May 2025, which will provide further insights into its performance and market position [4]

Core Viewpoint - NeoVolta Inc. has received approval to proceed with a $300 million loan application from the U.S. Department of Energy to expand its manufacturing capabilities in the U.S. [1] Group 1: Company Developments - NeoVolta plans to produce residential and commercial Battery Energy Storage Systems (BESS) across the U.S., creating over 200 jobs and enhancing the American supply chain by onshoring battery cells and inverters [2] - The company has shortlisted two states for its new headquarters, manufacturing facility, and regional offices from 23 state economic development offers [2] - NeoVolta's CEO, Ardes Johnson, emphasized the importance of battery storage and grid strengthening for the future of clean energy, noting that electricity consumption is expected to grow by 80% by 2050 [3][4] Group 2: Industry Context - The U.S. Department of Energy has stated that battery storage is essential for the initiative to "Unleash American Energy," and it will continue to allocate funds to support energy development despite recent pauses in federal funding [3] - The Title 17 Clean Energy Financing Program requires projects to feasibly and financially support energy development, transmission, storage, and deployment across the U.S., aligning with the current administration's focus on U.S. manufacturing and supply chain strengthening [3]

Financial Performance - Revenues from contracts with customers for Q2 2024 reached $1,071,581, a 5.3% increase from $1,017,828 in Q2 2023[17] - Gross profit for Q2 2024 was $323,911, compared to $205,873 in Q2 2023, reflecting a significant increase of 57.1%[17] - Total operating expenses for Q2 2024 were $1,270,841, up 64.1% from $774,698 in Q2 2023[17] - Net loss for Q2 2024 was $971,137, compared to a net loss of $556,044 in Q2 2023, representing a 74.6% increase in losses[17] - Revenues for the three months ended December 31, 2024, were $1,071,581, a modest increase from $1,017,828 in the same period of 2023, attributed to new sales channels opened since the new CEO's engagement[76] - Revenues for the six months ended December 31, 2024, were $1,661,817, down from $1,781,958 in 2023, influenced by macroeconomic and regulatory factors[83] - Net loss for the three months ended December 31, 2024, was $971,137, compared to $556,044 for the same period in 2023, reflecting the overall financial performance[82] - Net loss for the six months ended December 31, 2024, was $1,935,631, up from $984,759 for the same period in 2023[88] Cash and Liquidity - Cash and cash equivalents decreased to $328,746 as of December 31, 2024, down from $986,427 at the end of June 2024, a decline of 66.7%[25] - As of December 31, 2024, the company had a cash balance of approximately $0.3 million and net working capital of approximately $3.7 million[93] - The company anticipates sufficient cash to operate for at least the next 12 months due to increased product demand and recent financing arrangements[93] - Net cash used in operating activities for the six months ended December 31, 2024, was $1,451,330, compared to $503,497 in the same period in 2023, due to increased cash operating expenses[90] - Net cash provided by financing activities for the six months ended December 31, 2024, was $793,649, compared to zero in the same period in 2023, following the establishment of a line of credit[91] Assets and Liabilities - Total current assets as of December 31, 2024 were $4,018,118, a decrease of 13.7% from $4,656,530 as of June 30, 2024[15] - Total liabilities increased to $717,830 as of December 31, 2024, compared to $61,100 as of June 30, 2024, indicating a significant rise in liabilities[15] - The company reported a stockholders' equity of $3,300,288 as of December 31, 2024, down from $4,595,430 as of June 30, 2024, a decrease of 28.2%[15] Research and Development - Research and development expenses for Q2 2024 were $42,324, compared to no expenses in Q2 2023, indicating a new focus on product development[17] - Research and development expenses for the three months ended December 31, 2024, were $42,324, compared to zero in the same period of 2023, indicating increased focus on product development[79] - Research and development expenses for the six months ended December 31, 2024, were $50,941, compared to zero for the same period in 2023, reflecting increased product development efforts[86] Stock and Compensation - The company recognized stock compensation expense of $392,339 for the six months ended December 31, 2024, compared to $81,683 for the same period in 2023[53] - For the six months ended December 31, 2024, total non-cash stock compensation expense recognized was $480,089, compared to $181,858 for the same period in 2023, reflecting a significant increase[54][56] - The new CEO received an initial equity grant of 1,280,000 restricted stock units valued at $2,854,000, vesting over four years[50] - As of December 31, 2024, the outstanding warrants totaled 1,081,150 shares with a weighted average exercise price of $4.00 and an intrinsic value of $1,308,192[48] Market and Sales - The company has expanded its sales of proprietary Energy Storage Systems (ESS) through wholesale customers, primarily in California, with plans for further market expansion[27] - The company has expanded its market presence, successfully installing products in multiple states beyond California, including Arizona, Texas, and Florida[71] - For the three months ended December 31, 2024, two dealers represented approximately 37% and 34% of the Company's revenues, while for the six months ended December 31, 2024, they represented approximately 35% and 33%[31] Financing and Borrowings - The Company obtained a line of credit for borrowings of up to $5,000,000 in September 2024, with net borrowings of $383,538 as of December 31, 2024, leaving an available balance of $4,616,462[40] - In November 2024, the Company initiated short-term borrowings of $371,997 from a commercial lender to finance shipments to a new customer in Puerto Rico[42] - The gross proceeds from the August 2022 public offering were $4,485,000, with net proceeds of approximately $3,780,000 after deductions[45] - The company issued 500,000 shares of common stock at $2.00 per share on February 4, 2025, raising gross proceeds of $1,000,000 for working capital needs[63] - On February 4, 2025, the company issued 500,000 shares of common stock at $2.00 per share, resulting in gross proceeds of $1,000,000[92] Corporate Governance and Compliance - NeoVolta, Inc. has filed various amended and restated documents, including Articles of Incorporation and Bylaws, indicating ongoing corporate governance updates[121] - The company is preparing for a private offering in February 2025, as indicated by the Form of Subscription Agreement[121] - Steve Bond has an amended employment agreement effective February 4, 2025, which may reflect changes in compensation or responsibilities[121] - The consulting agreement with Brent Willson, effective March 1, 2025, suggests strategic advisory support for the company[121] - Certifications by the Principal Executive Officer and Principal Financial Officer were filed, ensuring compliance with the Sarbanes-Oxley Act[121] - Inline XBRL documents have been prepared, indicating a commitment to transparency and modern reporting standards[121] - The company has signed the report on February 7, 2025, indicating timely compliance with regulatory requirements[126] - H. Ardes Johnson serves as the Chief Executive Officer, while Steve Bond is the Chief Financial Officer, highlighting key leadership roles[126] Risk Factors - The company is monitoring potential tariff increases on imported components, which could significantly impact costs if enacted[95]