Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 513

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 513
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 under which the Company has incentivized the dealers
to achieve quarterly sales above targeted levels by agreeing to grant them shares of the Company’s common stock for exceeding such
quarterly sales targets, subject to defined maximums, as determined annually on a calendar year basis.

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. Beginning in April 2025, the Trump Administration implemented a significant increase in tariff rates on all goods imported from
China, although it was temporarily suspended for 90 days in April 2025 and the suspension has recently been extended to early November
2025. Prior to the tariff escalation in April 2025, we had anticipated the likelihood of facing such a tariff increase and began stockpiling
our inventory of these two components. As a result, we do not anticipate having to purchase a significant level of such components at
post-tariff prices for the next several months.

From time to time in the ordinary
course of our business, the Company may be involved in legal proceedings, the outcomes of which may not be determinable. The Company is
not involved in any legal proceedings at this time. The results of litigation are inherently unpredictable. Any claims against us, whether
meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in
diversion of significant resources. We are not able to estimate an aggregate amount or range of reasonably possible losses for those legal
matters for which losses are not probable and estimable.

     39 

(6)Subsequent Events 

On July 4, 2025, Congress
passed, and the President signed into law the One Big Beautiful Bill Act (“OBBB”). Among other provisions, it extends
many of the expiring provisions from the Tax Cuts and Jobs Act of 2017 and phases out a number
of clean energy tax incentives, including credits for the installation of residential solar panels. Based on our preliminary analysis,
however, we do not expect passage of the OBBB to have a material impact on our business. 

On July 23, 2025, we issued
78,565 shares of common stock to a wholesale