Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 65

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 65
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 are now leveraging regional and national distributors
to expand reach, improve logistics, and scale efficiently across multiple geographies.

Policy and Resiliency Drivers.
Federal and state policy incentives continue to support adoption, including the ITC, though subject to phase-outs after 2025. Several
states, led by California and Hawaii, have adopted building codes and interconnection requirements that mandate or encourage storage.
Utilities are increasingly turning to rate reform, such as California’s net-billing tariff, which improves the economics of pairing
solar with batteries. Meanwhile, grid reliability concerns—including widespread Public Safety Power Shutoff events in California—continue
to highlight the resiliency benefits of energy storage for both homeowners and businesses.

We believe that these combined
factors—retrofit opportunity, rising attachment in new installations, growth into C&I, expanding financing and distribution
channels, and favorable regulatory and resiliency drivers—create a substantial and growing market opportunity for NeoVolta.

 4 

Growth Strategy

With the addition of Ardes
Johnson to NeoVolta’s management team as our CEO in April 2024, we adopted a refreshed growth strategy designed to expand our market
penetration, diversify revenue channels, and accelerate product development. This strategy rests on three primary objectives: (i) expanding
revenue through strategic sales channel development, (ii) broadening financing options through partnerships, and (iii) initiating development
of next-generation storage solutions.

Sales Channel Expansion.
We have built a national sales team targeting key renewable energy distribution centers and regional installers. While NeoVolta initially
focused on direct sales to small, independent installers, we are now leveraging regional and national distributors to extend reach and
support scalability. Distributors improve logistics, expand product availability, and position us to penetrate high-growth markets such
as Texas, Florida, Hawaii, and Puerto Rico.

Financing Partnerships.
We are developing financing solutions that align with the evolving market. As federal incentives phase down under the One Big Beautiful
Bill Act (scheduled to sunset by December 31, 2025), adoption is expected to rely increasingly on third-party ownership, leasing, and
loan-based models. By working with financing partners, we intend to make our products more accessible and affordable to homeowners and
small businesses, supporting continued adoption despite changing incentive structures.

Product Innovation.
We are investing in research and development to expand our product portfolio and maintain a competitive edge. In addition to our core
NV14, NV24, NVPlus,