Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 185

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 185
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 claims, even those without merit, could harm our business, prospects, operating results
and financial condition. Our risks in this area are particularly pronounced given that we have only recently begun to deliver energy storage
products. Moreover, a product liability claim could generate substantial negative publicity about our products and business and could
have material adverse effect on our brand, business, prospects and operating results.

The markets in which we operate are in their
infancy and highly competitive, and we may not be successful in competing in these industries as the industry further develops. We currently
face competition from new and established domestic and international competitors and expect to face competition from others in the future,
including competition from companies with new technology.

The worldwide energy storage
market is in its infancy, and we expect it will become more competitive in the future. We also expect more regulatory burden as customers
adopt this new technology. There is no assurance that our energy storage systems will be successful in the respective markets in which
they compete. A significant and growing number of established and new companies, as well as other companies, have entered or are reported
to have plans to enter the energy storage market. Most of our current and potential competitors have significantly greater financial,
technical, manufacturing, marketing, sales networks and other resources than we do and may be able to devote greater resources to the
design, development, manufacturing, distribution, promotion, sale and support of their products. Increased competition could result in
lower unit sales, price reductions, revenue shortfalls, loss of customers and loss of market share, which could harm our business, prospects,
financial condition and operating results. The energy storage industry is highly competitive.

We face competition from other
manufacturers, developers and installers of energy storage systems, as well as from large utilities. Decreases in the retail prices of
electricity from utilities or other renewable energy sources could make our products less attractive to customers. Reduction in various
federal and state rebate and incentive programs could also adversely affect product adoption.

 13 

Our products and services are subject to
substantial regulations, which are evolving, and unfavorable changes or failures by us to comply with these regulations could substantially
harm our business and operating results.

As a manufacturer of energy
storage systems, we are impacted by federal, state and local regulations and policies concerning electricity pricing, the interconnection
of electricity generation and storage equipment with the electric grid, and the sale of electricity generated by third-party owned systems.
For example, existing or proposed regulations and policies would permit