Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 187

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 187
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, 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 may arise concerning this or
other agreements we have entered into that concern ownership of or use of intellectual property rights.

 14 

Our business could be negatively impacted
if we fail to adequately protect our intellectual property rights.

We consider our intellectual
property rights to be important assets, and seek to protect them through a combination of patent, trademark, copyright and trade secret
laws, as well as licensing and confidentiality agreements. These protections may not be adequate to prevent third parties from using our
intellectual property without our authorization, breaching any confidentiality agreements with us, copying or reverse engineering our
products, or developing and marketing products that are substantially equivalent to or superior to our own. The unauthorized use of our
intellectual property by others could reduce our competitive advantage and harm our business. Not only are intellectual property-related
proceedings burdensome and costly, but they could span