Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 184

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 184
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 the increased costs through increased prices. Any attempts to increase prices in response to increased material costs
could result in cancellations of energy storage orders and therefore materially and adversely affect our brand, image, business, prospects
and operating results.

Continued high mortgage interest rates may
result in a decrease in demand by homeowners for our residential energy storage systems.

Sales volume in our homeowner
channel is partially dependent on the construction of new homes and the sale of existing homes in our residential markets. Many customers
of our installation partners rely on mortgage loans from banks and other lenders in order to finance a substantial portion of the purchase
price for their home, including any related improvements. Increased mortgage interest rates may lead to lower demand for new homes and
a reduced number of homes available for solar origination through our homeowner channel. Additionally, increased interest rates may result
in fewer secondary home sales, a reduction in the number of customers refinancing their mortgages and uncertainty about the economy.

 12 

We are currently operating in a period of
economic uncertainty and capital markets disruption, which has been significantly impacted by geopolitical instability due to the ongoing
military conflicts between Russia and Ukraine and between Gaza and Israel. Our business, financial condition and results of operations
may be materially and adversely affected by any negative impact on the global economy and capital markets resulting from these conflicts
or any other geopolitical tensions.

U.S. and global markets are
experiencing volatility and disruption following the escalation of geopolitical tensions and the military conflicts between Russia and
Ukraine, which began in February 2022, and between Gaza and Israel, which began in October 2023. Although the length and impact of these
ongoing military conflicts are highly unpredictable, they could lead to further market disruptions, including significant volatility in
commodity prices, credit and capital markets, as well as supply chain interruptions. We are continuing to monitor the situations in both
of these areas and globally and assessing any potential impacts on our business.

Any of the above mentioned
factors could affect our business, prospects, financial condition, and operating results. The extent and duration of the military actions,
sanctions and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions may also magnify
the impact of other risks described in this report.

We may become subject to product liability
claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims.

Although we believe we have
designed our products for safety, product liability