Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 186

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 186
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 utilities to limit the amount of electricity generated by our
customers with their solar energy systems, adjust electricity rate designs such that the price of our products may not be competitive
with that of electricity from the grid, restrict us and our customers qualifying for government incentives and benefits that apply to
renewable energy, and limit or eliminate net energy metering. If such regulations and policies remain in effect or are adopted in other
jurisdictions, or if other regulations and policies that adversely impact the interconnection or use of our energy storage systems are
introduced, they could deter potential customers from purchasing our energy storage products, which could harm our business, prospects,
financial condition and results of operations.

Our business and
operations would suffer in the event of third-party computer system failures, cyber-attacks on third-party systems or deficiency in our
cyber security.

We
rely on information technology (“IT”) systems, including third-party “cloud based” service providers, to keep
financial records, maintain product support data, and corporate records, to communicate with staff and external parties and to operate
other critical functions. This includes critical systems such as email, other communication tools, electronic document repositories and
archives. If any of these third-party information technology providers experience security breaches or incidents due to computer viruses,
unauthorized access, malware, ransomware, natural disasters, fire, terrorism, war, telecommunication failures, electrical failures, cyber-attacks
or cyber-intrusions over the internet, then sensitive data, including personal information, trade secrets, and confidential business information
could be compromised, exposed, or deleted. Similarly, we could incur business disruption if our access to the internet is compromised,
and we are unable to connect with third-party IT providers. The risk of a security breach or disruption, particularly through cyber-attacks
or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity
and sophistication of attempted attacks and intrusions from around the world have increased. To the extent that any disruption or security
breach results in a loss of or damage to our data or applications, or inappropriate disclosure of confidential or proprietary information,
we could incur liability and delay of our product development and support efforts.

We may need to assert intellectual property-related
claims or defend ourselves against intellectual property infringement claims, which may be time-consuming and could cause us to incur
substantial costs.

Others, including our competitors,
may hold or obtain patents, copyrights, trademarks or other proprietary rights that could prevent