Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 182

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 182
---
 prospects.

We depend on a small number of wholesale
dealers for a significant portion of our revenues to date.

Due to our limited operating
history, we depend on a relatively small number of wholesale dealers and installers in California and other states for our revenue. For
the fiscal year ended June 30, 2025, our two largest dealers accounted for approximately 41% and 23% of our total revenues, respectively.
For the fiscal year ended June 30, 2024, our two largest dealers accounted for approximately 20% and 14% of our total revenues, respectively.
As of June 30, 2025, our three largest dealers represented approximately 39%, 12% and 12% of our accounts receivable balance. Our limited
customer base and concentration could expose us to the risk of substantial losses if a single dominant customer stops purchasing, or significantly
reduces orders for, our products. Our ability to maintain close relationships with these top customers is essential to the growth and
profitability of our business. If we fail to sell our products to one or more of these top customers in any particular period, or if a
large customer purchases fewer of our products, defers orders or fails to place additional orders with us, or if we fail to develop additional
major customers, our revenue could decline, and our results of operations could be adversely affected.

If we fail to scale our business operations
and otherwise manage future growth and adapt to new conditions effectively as we grow our company, we may not be able to produce, market,
sell and service our products successfully.

Any failure to manage our
growth effectively could materially and adversely affect our business, prospects, operating results and financial condition. Our future
operating results depend to a large extent on our ability to manage our expansion and growth successfully. We may not be successful in
undertaking this expansion if we are unable to control expenses and avoid cost overruns and other unexpected operating costs; adapt our
products and conduct our operations to meet local requirements; implement the required infrastructure, systems and processes; and find
and hire the right skills to make our growth successful.

 11 

If we are unable to achieve our targeted
manufacturing costs for our energy storage products our financial condition and operating results will suffer.

As a relatively new company,
we have limited historical data that ensures our targeted manufacturing costs will be achievable. While we expect in the future to better
understand and control our manufacturing costs, there is no guarantee we