Forensic Analysis · Industrials / Manufacturing / Defense · as of Oct 12, 2026
Neovolta Inc. (NEOV)
A forensic read on Neovolta Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
1.0
Distress distance
Watch
Earnings quality
4
Forensic signals
-54.3%
ROE
58.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Neovolta Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 1.0, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+109.5%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +109.5% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. Net operating assets also rose $1.1M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 54% of net operating assets, against an accruals ratio of 109.5%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
-55.4%
FY2026
Return on invested capital.Return on invested capital is -55.4% in the latest fiscal year, against -51.2% in FY2024, having run between -73.0% and -51.2% across FY2024–FY2026 with no direction held. After-tax operating profit was ($2M) in FY2024 and ($14M) in FY2026, with operating income at -88.4% of revenue in FY2024, -56.0% in FY2025 and -136.1% in FY2026. The capital base behind it grew +617% across FY2024–FY2026, from $4M to $26M, while the return fell 4.2 points, so the dollars added over that window earned less than the -51.2% the older base was already earning. $10M of the $26M base at FY2026 is construction in progress (37.1%) — paid for and not yet in service.
+8.8%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +18% over the last 2 years to FY2026 (+8.8%/yr). The count is growing — 33.2M shares in FY2024, 39.3M in FY2026: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~8.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~15%.
37% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 37% of revenue in FY2026 — about $0.13 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 8.8% a year across FY2024–FY2026 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$13.3M
Revenue Growth YoY+58.2%
Revenue CAGR (2yr)+124.5%
Net Margin-161.0%
Free Cash Flow-$16.0M
Return on Equity-54.3%
Debt / Equity0.03x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Neovolta Inc.'s actual 10-K/10-Q/8-K filings?