Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 178

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 178
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The
following risks and uncertainties should be carefully considered in addition to the other information included in this Report. If any
of the following conditions or other unknown conditions should occur, our business, financial condition or operating results could be
materially harmed. An investment in our securities is speculative in nature, involves a high degree of risk and should not be made by
an investor who cannot bear the economic risk of its investment for an indefinite period of time and who cannot afford the loss of its
entire investment.

Risks Related to our Business and Industry

We are a relatively new company, with our
sales having only commenced in July 2019, and we continue to have some of the risks associated with start-up ventures.

We formed our corporation
in 2018. Since formation, we have focused on research, development and certification of our first energy storage system. We began marketing,
sales, and installations via our certified installers in May 2019 (although no sales were completed in the year ended June 30, 2019).
We may never achieve commercial success with our energy storage systems. We have limited historical financial data upon which we may base
our projected revenue and operating expenses. Our relatively short operating history makes it difficult for potential investors to evaluate
our technology or prospective operations and business prospects. Accordingly, we continue to be subject to many of the risks inherent
in business development, financing, unexpected expenditures, and complications and delays that often occur in a new business. Investors
should evaluate an investment in us in light of the uncertainties encountered by developing companies in a competitive environment. There
can be no assurance that our efforts will be successful or that we will ultimately be able to attain profitability.

We have a history of net losses and we are
uncertain about our future profitability.

We have incurred significant
net losses since our inception. For the years ended June 30, 2025 and 2024, we have incurred net losses of $5.0 million and $2.3 million,
respectively. As of June 30, 2025, we had an accumulated deficit of $25.8 million. If our revenue grows more slowly than currently anticipated,
or if operating expenses are higher than expected, we may be unable to consistently achieve profitability, our financial condition will
suffer, and the value of our common stock could decline. Even if we are successful increasing our sales, we may incur losses in the foreseeable
future as we continue to develop and market our products. If sales revenue from