NeoVolta(NEOV) - 2026 Q2 - Quarterly Report

Financial Performance - Revenues from contracts with customers for the three months ended December 31, 2025, were $4,645,517, a significant increase from $1,071,581 in the same period of 2024, representing a growth of approximately 334%[18] - Gross profit for the six months ended December 31, 2025, was $2,349,774, compared to $416,758 for the same period in 2024, indicating a growth of about 463%[21] - The net loss for the three months ended December 31, 2025, was $5,538,799, compared to a net loss of $971,137 for the same period in 2024, which is an increase in loss of about 471%[18] - The net loss for the six months ended December 31, 2025, was $6,782,121, compared to a net loss of $1,935,631 for the same period in 2024[25] Operating Expenses - Total operating expenses for the three months ended December 31, 2025, were $5,249,044, up from $1,270,841 in the same period of 2024, reflecting an increase of approximately 313%[18] - Research and development expenses for the three months ended December 31, 2025, were $58,795, compared to $42,324 in the same period of 2024, showing an increase of approximately 39%[18] - Cash flows used in operating activities amounted to $4,578,069 for the six months ended December 31, 2025, compared to $1,451,330 in the prior year[25] - Cash paid for interest during the six months ended December 31, 2025, was $604,835, significantly higher than $9,306 in the same period of 2024[25] Assets and Liabilities - Total assets as of December 31, 2025, were $10,113,366, a substantial increase from $6,805,173 as of June 30, 2025, representing a growth of approximately 48%[16] - Total liabilities increased to $5,110,729 as of December 31, 2025, compared to $3,895,451 as of June 30, 2025, indicating a rise of about 31%[16] - The accumulated deficit as of December 31, 2025, was $32,559,255, up from $25,777,134 as of June 30, 2025, reflecting an increase of approximately 26%[16] Shareholder Information - The company reported a weighted average of 35,008,993 shares outstanding for the three months ended December 31, 2025, compared to 33,301,150 shares for the same period in 2024[18] - The company issued 1,200,000 shares in a private offering, raising $3,000,000 to support its operations and growth initiatives[23] - The company raised $3,000,000 by issuing 1,200,000 shares of common stock at $2.50 per share in a private equity offering in December 2025[50] Inventory and Credit - Total inventory as of December 31, 2025, was $1,855,673, a decrease from $2,137,912 as of June 30, 2025[32] - The company has a line of credit for borrowings of up to $5,000,000 to meet near-term borrowing needs[47] - The company secured a line of credit for borrowings of up to $5,000,000 with a 16% annual interest rate, having net borrowings of $633,538 as of December 31, 2025, and an available balance of $4,366,462[48] Joint Ventures and Acquisitions - The company has a 60% ownership interest in a new joint venture for a battery manufacturing facility, with an initial capital contribution of $7 million from a private offering[77][78] - The company completed an Asset Purchase Agreement with Neubau Energy Inc. in October 2025, acquiring assets including intellectual property, with sales of the proprietary battery storage module expected to begin in 2026[67] - The total consideration for the acquisition of Neubau was approximately $1.5 million, consisting of $500,000 in cash and 200,000 shares valued at $998,000[68] Stock Options and Compensation - The company granted 450,000 RSUs to each of the two new officers as part of their employment agreements, totaling 900,000 RSUs[70] - Total non-cash stock compensation expense recognized in the six months ended December 31, 2025, was $3,019,034, including $1,987,813 for RSUs granted to executive officers[63] - The company issued 147,000 Non-Qualified Stock Options at an exercise price of $3.60 per share, with a total fair value of approximately $349,500, amortized over a 3-year vesting period[57] Future Commitments - The company will pay a royalty of $10.00 per unit sold of Neubau's proprietary module for three years, with contingent consideration of up to 4,000,000 additional shares if sales milestones are met by December 31, 2028[68][74] - Future undiscounted lease payments under the extended lease agreement total approximately $1.2 million, with a present value of lease liability recorded at $850,740[72] - The company anticipates additional capital contributions of up to $40 million for the joint venture, with funding expected from public or private offerings[79]