NeoVolta Inc. reported its financial results for the three months ended September 30, 2024, revealing a decline in revenue and an increase in net loss compared to the same period in the previous year. Revenues from contracts with customers totaled $590,236, down from $764,130 in Q3 2023. This decrease is attributed to macroeconomic and regulatory factors affecting the market. The cost of goods sold also decreased to $497,389 from $642,958, resulting in a gross profit of $92,847, compared to $121,172 in the prior year, maintaining a gross profit margin of approximately 16% in both periods.

General and administrative expenses surged to $1,050,119 from $555,160, primarily due to the new CEO's salary of $350,000 and an equity award valued at $2,854,000. Total operating expenses for the quarter reached $1,058,736, significantly higher than the $555,160 reported in Q3 2023. Consequently, the net loss for the quarter increased to $(964,494), compared to $(428,715) in the same quarter last year. The company also reported net cash flows used in operating activities of $(593,031), up from $(179,089) in Q3 2023.

As of September 30, 2024, NeoVolta's total current assets decreased to $4,150,110 from $4,656,530 as of June 30, 2024. Total current liabilities rose significantly to $253,775, compared to $61,100 in the previous quarter. Stockholders' equity also declined to $3,896,335 from $4,595,430. The company had cash and cash equivalents of $393,396 at the end of the quarter, down from $1,823,700 a year earlier.

In terms of strategic developments, NeoVolta has entered into a line of credit agreement for borrowings of up to $5,000,000, with a 16% annual interest rate, although no borrowings had been made under this agreement as of the reporting date. The company has also taken over direct manufacturing responsibilities for its Energy Storage Systems (ESS) units as of June 1, 2023, following an amendment to its supply agreement with a former contract manufacturer.

Additionally, NeoVolta's management acknowledged a material weakness in its internal controls due to a lack of segregation of duties, which they plan to address by hiring additional personnel. The company remains focused on expanding its market presence, particularly in California, while navigating the challenges posed by recent regulatory changes affecting solar installations.