Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 294

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 3
Chunk 294
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 largely due to our relatively small number of employees rendering a full segregation of various disclosure control duties impractical.

Inherent Limitations over Controls

Management does not expect
that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all
fraud. Controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives
and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and
instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in
decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented
by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any
system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate
because of changes in conditions, or deterioration in the degree of compliance with the policies or procedures. Because of the inherent
limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

.

Management's Report on Internal Control Over
Financial Reporting

Our
principal executive officer and our principal accounting and financial officer, are responsible for establishing and maintaining adequate
internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Management conducted an assessment
of the effectiveness of our internal control over financial reporting as of June 30, 2025. In making this assessment, management used
the criteria described in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Our management concluded that there was a material weakness in our internal controls over financial reporting largely
due to our relatively small number of employees rendering a full segregation of various accounting control and financial reporting duties,
which includes multiple levels of review, impractical. Accordingly, our
internal controls over financial reporting were not effective as of June 30, 2025.

Our independent registered
public accounting firm will not be required to formally attest to the effectiveness of