Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 75

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 75
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 effectively could materially and adversely affect our business, prospects, operating results and financial condition. Our future
operating results depend to a large extent on our ability to manage our expansion and growth successfully. We may not be successful in
undertaking this expansion if we are unable to control expenses and avoid cost overruns and other unexpected operating costs; adapt our
products and conduct our operations to meet local requirements; implement the required infrastructure, systems and processes; and find
and hire the right skills to make our growth successful.

 11 

If we are unable to achieve our targeted
manufacturing costs for our energy storage products our financial condition and operating results will suffer.

As a relatively new company,
we have limited historical data that ensures our targeted manufacturing costs will be achievable. While we expect in the future to better
understand and control our manufacturing costs, there is no guarantee we will be able to achieve sufficient cost savings to reach our
gross margin and profitability goals. We may also incur substantial costs or cost overruns in utilizing and increasing the production
capability of our energy storage system facilities.

If we are unable to achieve
production cost targets on our products pursuant to our plans, we may not be able to meet our gross margin and other financial targets.
Many of the factors that impact on our manufacturing costs are beyond our control, such as potential increases in the costs of our materials
and components, such as lithium iron phosphate, nickel and other components of our battery cells. If we are unable to continue to control
and reduce our manufacturing costs, our operating results, business and prospects will be harmed.

Increases in costs, disruption of supply
or shortage of materials, in particular for inverters and lithium iron phosphate cells, could harm our business.

We may experience increases
in the cost or a sustained interruption in the supply or shortage of materials. Any such increase, supply interruption or shortage could
materially and negatively impact on our business, prospects, financial condition and operating results. We use various materials in our
business, including inverters and lithium iron phosphate cells, from suppliers.

The prices for these materials
fluctuate, and their available supply may be unstable, depending on market conditions and global demand for these materials, including
as a result of increased production of energy storage products by our competitors, and could adversely affect our business and operating
results. For instance, we are exposed to multiple risks relating to inverters and lithium iron phosphate cells.

These risks include:

·an increase in the cost, or decrease in the available