Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 78

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 78
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 competitive.

We face competition from other
manufacturers, developers and installers of energy storage systems, as well as from large utilities. Decreases in the retail prices of
electricity from utilities or other renewable energy sources could make our products less attractive to customers. Reduction in various
federal and state rebate and incentive programs could also adversely affect product adoption.

 13 

Our products and services are subject to
substantial regulations, which are evolving, and unfavorable changes or failures by us to comply with these regulations could substantially
harm our business and operating results.

As a manufacturer of energy
storage systems, we are impacted by federal, state and local regulations and policies concerning electricity pricing, the interconnection
of electricity generation and storage equipment with the electric grid, and the sale of electricity generated by third-party owned systems.
For example, existing or proposed regulations and policies would permit 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