Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 17

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 17
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 our access to the internet is compromised,
and we are unable to connect with third-party IT providers. The risk of a security breach or disruption, particularly through cyber-attacks
or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity
and sophistication of attempted attacks and intrusions from around the world have increased. To the extent that any disruption or security
breach results in a loss of or damage to our data or applications, or inappropriate disclosure of confidential or proprietary information,
we could incur liability and delay of our product development and support efforts.

We may need to assert intellectual property-related
claims or defend ourselves against intellectual property infringement claims, which may be time-consuming and could cause us to incur
substantial costs.

Others, including our competitors,
may hold or obtain patents, copyrights, trademarks or other proprietary rights that could prevent, limit or interfere with our ability
to make, use, develop, sell or market our products and services, which could make it more difficult for us to operate our business. From
time to time, the holders of such intellectual property rights may assert their rights and urge us to take licenses, and/or may bring
suits alleging infringement or misappropriation of such rights. We may consider the entering into licensing agreements with respect to
such rights, although no assurance can be given that such licenses can be obtained on acceptable terms or that litigation will not occur,
and such licenses could significantly increase our operating expenses. In addition, if we are determined to have infringed upon a third
party’s intellectual property rights, we may be required to cease making, selling or incorporating certain components or intellectual
property into the goods and services we offer, to pay substantial damages and/or license royalties, to redesign our products and services,
and/or to establish and maintain alternative branding for our products and services. In the event that we were required to take one or
more such actions, our business, prospects, operating results and financial condition could be materially adversely affected. In addition,
any litigation or claims, whether or not valid, could result in substantial costs, negative publicity and diversion of resources and management
attention.

In August 2021, we entered
into an exclusive long term supply agreement with our Asian supplier pertaining to our inverter component. This agreement contains provisions
that address the ownership and use of intellectual property rights. While we are unaware of any present dispute concerning this agreement
or our other agreements that concern ownership of or use of intellectual property rights, future disputes