Company: NEOV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001683168-25-003355
Chunk: 20

Company: NeoVolta Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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, that has materially affected, or is
reasonably likely to materially affect, our internal controls over financial reporting.

 19 

PART II. OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

Although we may, from time
to time, be involved in litigation and claims arising out of our operations in the normal course of business, we are not currently a party
to any material legal proceeding. In addition, we are not aware of any material legal or governmental proceedings against us, or contemplated
to be brought against us.

ITEM 1A.RISK FACTORS

There have been no material
changes from the risk factors previously disclosed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year
ended June 30, 2024, as filed with the SEC on September 27, 2024 (the “Form 10-K”), under the heading “Risk Factors”,
except as set forth below, and investors should review the risks provided in the Form 10-K prior to making an investment in the Company.
The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known
or unknown, including but not limited to those described in the Form 10-K for the year ended June 30, 2024, under “Risk Factors”,
any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to
vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in
part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price.

The new Administration
has introduced tariff increases that apply to the two main raw material components of our products which are sourced from Asian suppliers.

Presently, our two main raw
material components, batteries and inverters, are imported from different suppliers in China and, until recently, were subject to fairly
low tariff rates that had been in effect for several years. Beginning in April 2025, the new Trump Administration implemented a significant
increase in tariff rates on all goods imported from China that applies to our two main components. However, we anticipated the likelihood
of facing such a tariff increase and have been stockpiling our inventory of these two components. As a result, we do not anticipate having
to purchase a significant level of such components at post-tariff prices for the next several months while there