Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 20

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 20
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. The failure to recruit additional key personnel
when needed with specific qualifications and on acceptable terms or to retain good relationships with our partners might impede our ability
to continue to develop, commercialize and sell our products. To the extent the demand for skilled personnel exceeds supply, we could experience
higher labor, recruiting and training costs in order to attract and retain such employees. We face competition for qualified personnel
from other companies with significantly more resources available to them and thus may not be able to attract the level of personnel needed
for our business to succeed.

Artificial intelligence presents risks and
challenges that can impact our business, including by posing security risks to our confidential information, proprietary information and
personal data.

Issues in the development
and use of artificial intelligence, combined with an uncertain regulatory environment, may result in reputational harm, liability, or
other adverse consequences to our business operations. As with many technological innovations, artificial intelligence presents risks
and challenges that could impact our business. We may adopt and integrate generative artificial intelligence tools into our systems for
specific use cases. Our vendors may incorporate generative artificial intelligence tools into their offerings without disclosing this
use to us, and the providers of these generative artificial intelligence tools may not meet existing or rapidly evolving regulatory or
industry standards with respect to privacy and data protection and may inhibit our or our vendors’ ability to maintain an adequate
level of service and experience. If we, our vendors, or our third-party partners experience an actual or perceived breach or privacy or
security incident because of the use of generative artificial intelligence, we may lose valuable intellectual property and confidential
information and our reputation and the public perception of the effectiveness of our security measures could be harmed. Further, bad actors
around the world use increasingly sophisticated methods, including the use of artificial intelligence, to engage in illegal activities
involving the theft and misuse of personal information, confidential information, and intellectual property. Any of these outcomes could
damage our reputation, result in the loss of valuable property and information, and adversely impact our business.

Risks Related to Our Securities

Nevada law and provisions in our articles
of incorporation and bylaws could make a takeover proposal more difficult.

We are a Nevada corporation
and the anti-takeover provisions of the Nevada Revised Statutes may discourage, delay or prevent a change in control by prohibiting us
from engaging in a business combination with an interested stockholder for a period of three years after the person becomes an interested
stockholder, even if a