Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 72

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 72
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 planned production yield and
further increase capacity as planned while maintaining our desired quality levels and optimize design and production changes, and our
suppliers’ ability to support our needs. If we are unable to realize our plans, our brand, business, prospects, financial condition
and operating results could be materially damaged.

We are dependent on our two main component
vendors for our suppliers of batteries, inverters and other raw materials and the inability of these single-source suppliers to deliver
necessary components of our products according to our schedule and at prices, quality levels and volumes acceptable to us, or our inability
to efficiently manage these components, could have a material adverse effect on our financial condition and operating results.

Our products contain numerous
purchased parts which we source globally from direct suppliers, the majority of whom are currently single-source suppliers. Any significant
unanticipated demand would require us to procure additional components in a short amount of time. While we believe that we will be able
to secure additional or alternate sources of supply for most of our components in a relatively short time frame, there is no assurance
that we will be able to do so or develop our own replacements for certain highly customized components of our products. In addition, if
we are required to use alternative suppliers for certain critical components, we may need to have our products go through a re-certification
process with various regulatory bodies, which process may be lengthy. In such event, we would not be able to sell our products using these
new components until we received all required certifications.

If we encounter unexpected
difficulties with key suppliers such as our inverter or lithium-iron phosphate cell supplier, and if we are unable to fill these needs
from other suppliers, we could experience production delays and potential loss of access to important technology and parts for producing,
servicing and supporting our products. This limited, and in many cases single source, supply chain exposes us to multiple potential sources
of delivery failure or component shortages for the production of our products. The loss of any single or limited source supplier or the
disruption in the supply of components from these suppliers could lead to significant product design changes and delays in product deliveries
to our customers, which could hurt our relationships with our customers and result in negative publicity, damage to our brand and a material
and adverse effect on our business, prospects, financial condition and operating results.

We may become subject to further tariff
increases that would apply to the two main raw material components of our products which are sourced from Asian suppliers.