Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 12

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 12
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 longer than expected
to become enabled or are legally restricted, our ability to develop, market and sell our products and services could be harmed. While
we intend to perform internal testing on the products we manufacture, as a start-up company we currently have no frame of reference by
which to evaluate detailed long-term quality, reliability, durability and performance characteristics of our battery packs, inverters,
and energy storage products. There can be no assurance that we will be able to detect and fix any defects in our products prior to their
sale to or installation for consumers. Any product defects, delays or legal restrictions on product features, or other failure of our
products to perform as expected could harm our reputation and result in delivery delays, product recalls, product liability claims, significant
warranty and other expenses, and could have a material adverse impact on our business, financial condition, operating results and 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