NeoVolta Inc.

Overview

We are a designer and manufacturer of high-performance energy storage systems (“ESS”) for residential and commercial applications. Our product portfolio includes the NV14, NV24, NVPlus, NV7600 stand-alone inverter, and most recently, the NV16 kW AC hybrid inverter with 24 kW PV input and a 250 kW / 430 kWh commercial and industrial (“C&I”) system. Our systems combine lithium iron phosphate (LiFePO₄) battery technology with hybrid inverter capability, providing safe, flexible, and adaptable solutions for backup power, self-consumption, and energy resilience.

We market and sell our products primarily through certified solar installers and regional and national distributors. Initially focused on Southern California, we have since expanded into other markets throughout the United States and Puerto Rico. Looking forward, we intend to grow across residential, commercial, and industrial segments while building financing solutions and pursuing domestic and FEOC-compliant sourcing to support long-term competitiveness.

History

We were founded in 2018 to develop safe, reliable, and versatile residential energy storage systems. Later that year, we produced our first prototype of the NV14, which received certification and approval from the California Energy Commission in early 2019. Customer installations began shortly thereafter in San Diego County following approval from San Diego Gas & Electric.

Between 2020 and 2022, we expanded beyond Southern California into other major metropolitan regions and ultimately into more than 15 additional states and territories. During this period, we introduced the NV24 expansion battery and continued to secure certifications under evolving California and national regulatory standards.

In 2023, we transitioned from contract manufacturing to in-house production by hiring key personnel and assuming direct responsibility for manufacturing operations in Poway, California. This change enhanced quality control and supply chain resilience.

Since 2024, we have broadened our product portfolio with the launch of the NVPlus energy storage system and the NV7600 stand-alone inverter, extending our reach into higher-capacity residential and light commercial applications. In February 2025, we expanded into a larger facility in Poway to support increased production. Subsequent to fiscal year end, we announced two additional products: a 250 kW / 430 kWh Commercial & Industrial (C&I) Battery Energy Storage System, and the NV16 kW AC hybrid inverter with 24 kW PV input, expected to be available beginning in November 2025.

Our Products

We design and manufacture energy storage systems (“ESS”) that combine lithium iron phosphate (LiFePO₄) battery technology with integrated or stand-alone inverters to provide safe, reliable backup power for residential and light commercial applications. All systems are NEMA 3R rated for indoor or outdoor installation, UL 9540/9540A certified, and compatible with both AC- and DC-coupled solar configurations.

In addition to these core products, we have also developed the NV14-K, a custom variant of the NV14 engineered to EOS Linx specifications. This product is manufactured on a limited basis for a single customer application and is not marketed generally.

Subsequent to fiscal year end, we announced two additional products: (i) a Commercial & Industrial Battery Energy Storage System (BESS) with a 250 kW power rating and 430 kWh usable capacity, designed for larger-scale applications; and (ii) the NV16 kW AC hybrid inverter with 24 kW PV input, developed to support higher-capacity residential installations and whole-home backup. The NV16 kW inverter is expected to become generally available in November 2025.

Market Overview

Our addressable market is expanding across multiple customer segments, supported by favorable policy, resiliency needs, and evolving financing and distribution models.

Residential Retrofit. There are an estimated 4.2 million U.S. homes equipped with solar panels, and more than 3 million of these do not currently have battery storage. (SolarInsure) This represents a significant retrofit opportunity, particularly as installed inverters approach end of life after 10–15 years of operation. Grid reliability concerns, increasingly common utility outages, and changing rate structures are expected to accelerate adoption of storage among this installed base.

New Residential and Small Commercial Installations. The U.S. installer market is highly fragmented, with more than 11,000 companies nationwide, most of them small independent operators not typically serviced by larger ESS providers. These smaller installers represent NeoVolta’s core customers. Once certified, they generally become recurring purchasers, relying on just-in-time availability to serve homeowners who prefer not to stock or pre-finance equipment.

Battery adoption in new solar projects is rising rapidly. Nationally, only about 6% of residential solar systems included storage in 2020, compared to an estimated 15–20% by 2024. (Clean Energy Group) In California, adoption has been even stronger: under the new net-billing tariff, roughly 60% of new residential systems are now being paired with storage, compared to 10–14% under prior net-metering rules. (Utility Dive) Nationally, the residential storage market is scaling quickly—Wood Mackenzie reports ~458 MW added in Q1 2025 alone, the strongest first quarter on record. (Wood Mackenzie)

Commercial and Industrial Expansion. Beyond residential applications, the market for C&I storage is emerging as a new growth segment. Businesses are increasingly seeking solutions for demand-charge management, backup power, and grid services. To address this demand, we recently announced a 250 kW / 430 kWh C&I battery energy storage system, positioning NeoVolta to participate directly in this next stage of adoption.

Financing and Distribution. The importance of financing structures has grown significantly across all customer segments. As system costs increase and federal incentives such as the Investment Tax Credit (“ITC”) phase down under the One Big Beautiful Bill Act (scheduled to sunset by December 31, 2025), adoption is expected to depend increasingly on third-party ownership, leasing, and loan-based models. These financing options reduce upfront costs and align payments with monthly utility savings, broadening access to storage. At the same time, NeoVolta is evolving its channel strategy: while we initially sold primarily to independent installers, we are now leveraging regional and national distributors to expand reach, improve logistics, and scale efficiently across multiple geographies.

**Policy and Resiliency Drivers.**Federal and state policy incentives continue to support adoption, including the ITC, though subject to phase-outs after 2025. Several states, led by California and Hawaii, have adopted building codes and interconnection requirements that mandate or encourage storage. Utilities are increasingly turning to rate reform, such as California’s net-billing tariff, which improves the economics of pairing solar with batteries. Meanwhile, grid reliability concerns—including widespread Public Safety Power Shutoff events in California—continue to highlight the resiliency benefits of energy storage for both homeowners and businesses.

We believe that these combined factors—retrofit opportunity, rising attachment in new installations, growth into C&I, expanding financing and distribution channels, and favorable regulatory and resiliency drivers—create a substantial and growing market opportunity for NeoVolta.

Growth Strategy

With the addition of Ardes Johnson to NeoVolta’s management team as our CEO in April 2024, we adopted a refreshed growth strategy designed to expand our market penetration, diversify revenue channels, and accelerate product development. This strategy rests on three primary objectives: (i) expanding revenue through strategic sales channel development, (ii) broadening financing options through partnerships, and (iii) initiating development of next-generation storage solutions.

**Sales Channel Expansion.**We have built a national sales team targeting key renewable energy distribution centers and regional installers. While NeoVolta initially focused on direct sales to small, independent installers, we are now leveraging regional and national distributors to extend reach and support scalability. Distributors improve logistics, expand product availability, and position us to penetrate high-growth markets such as Texas, Florida, Hawaii, and Puerto Rico.

Financing Partnerships. We are developing financing solutions that align with the evolving market. As federal incentives phase down under the One Big Beautiful Bill Act (scheduled to sunset by December 31, 2025), adoption is expected to rely increasingly on third-party ownership, leasing, and loan-based models. By working with financing partners, we intend to make our products more accessible and affordable to homeowners and small businesses, supporting continued adoption despite changing incentive structures.

Product Innovation. We are investing in research and development to expand our product portfolio and maintain a competitive edge. In addition to our core NV14, NV24, NVPlus, and NV7600 inverter, we recently announced two major product launches: (i) a 250 kW / 430 kWh commercial and industrial battery energy storage system, and (ii) the NV16 kW AC hybrid inverter with 24 kW PV input. These launches expand our reach into larger residential and commercial markets. We have also begun advanced discussions with technology partners to develop future generations of NeoVolta storage systems.

Commercial Market Entry. We are positioning NeoVolta to compete in the emerging commercial and industrial (“C&I”) segment, where businesses are seeking solutions for resiliency, demand-charge management, and grid services. Our newly introduced 250 kW / 430 kWh C&I product is the first step in this expansion.

Strategic Combinations. In addition to organic growth, we may evaluate acquisitions, joint ventures, or other strategic transactions to expand our technology base, accelerate market entry, and enhance financing capabilities.

We believe this growth strategy—driven by expanded distribution, financing innovation, product development, and C&I expansion—will allow NeoVolta to scale efficiently and strengthen our competitive position in the growing energy storage market.

Competition

We compete with several established companies in the energy storage systems (“ESS”) market, including Tesla, LG Chem, Sonnen, Enphase, SunPower, and SMA America. Many of these competitors have significantly greater financial resources, manufacturing capacity, brand recognition, and established distribution channels. Their scale allows them to pursue aggressive pricing, broader marketing, and faster product refresh cycles.

In addition to dedicated ESS providers, we also face competition from diversified industrial companies, generator manufacturers, inverter suppliers, and other firms that offer alternative backup power or distributed energy solutions. We expect new entrants to continue to emerge as energy storage adoption expands and regulatory requirements evolve.

Despite the presence of larger and more established competitors, we believe NeoVolta maintains distinct competitive advantages:

Product Availability. We generally fulfill orders in less than two weeks, often within days, compared to extended backlogs reported by some competitors. This supports the cash-flow needs of small and mid-sized installers.

Installer Service. Our Certified Installer Program, direct technical support, and remote monitoring capabilities provide education and assistance to installers, fostering loyalty and reducing installation risk.

Product Safety and Flexibility. Our systems use lithium iron phosphate (LiFePO₄) chemistry and are UL 9540/9540A certified with no thermal runaway risk. Products are NEMA 3R rated for indoor/outdoor use, support both AC- and DC-coupled solar, and allow capacity expansion without requiring an additional inverter.

Market Focus. Unlike some competitors that sell storage primarily as an add-on to solar, NeoVolta is focused entirely on energy storage. We target independent installers and distributors that are underserved by larger providers, particularly in retrofit markets and emerging commercial segments.

We believe these differentiators allow us to compete effectively in a rapidly growing market, even against larger, more established participants.

Intellectual Property & Product Development

We rely on a combination of patents, trademarks, copyrights, trade secrets, and contractual protections to safeguard our technology and brand. As of September 2025, we hold three issued U.S. utility patents:

We expect to continue filing for patent protection when appropriate as we expand our technology portfolio.

In addition to patents, we protect our intellectual property through nondisclosure agreements, confidentiality provisions, and invention assignment agreements with employees, consultants, and advisors. Despite these protections, unauthorized parties may attempt to copy aspects of our products or use information we consider proprietary. The success of our business depends in part on our ability to defend against misappropriation and infringement.

Product Development. We continue to invest in research and development to expand our product offerings. In addition to our core NV14 and NV24 ESS products, we have launched NVPlus, a higher-capacity residential and small commercial system; the NV7600 stand-alone inverter; and two new products in 2025: (i) a 250 kW / 430 kWh commercial and industrial BESS, and (ii) the NV16 kW AC hybrid inverter with 24 kW PV input. We are also exploring partnerships to accelerate development of next-generation systems.

Regulatory Environment

The energy storage industry is subject to a complex and evolving regulatory framework at the federal, state, and local levels. In recent years, regulators have adopted new safety, interconnection, and performance standards that materially impact product design and installation requirements.

California and Hawaii have been at the forefront of these regulatory changes. In California, the California Public Utilities Commission (“CPUC”) has implemented standards such as the Common Smart Inverter Profile (CSIP) and “Rule 21” interconnection requirements. On August 5, 2020, the California Energy Commission (“CEC”) approved NeoVolta’s CSIP compliance application, enabling our products to meet CPUC interconnection rules. In addition, “rapid shutdown” requirements—mandating that emergency responders be able to quickly disable PV systems at the service panel—were adopted in 2021 and are now reflected in the National Electrical Code.

Fire code and safety standards have also advanced significantly. Beginning in 2022, California prohibited installation of energy storage systems in residential living spaces, limited installation in garages to units with fire protection measures, and required additional safeguards such as heat and smoke detectors or bollards. These changes reflect increasing scrutiny of certain lithium-ion chemistries that have demonstrated thermal runaway risks. NeoVolta’s lithium iron phosphate (LiFePO₄) batteries, by contrast, have been certified under UL 9540A testing, which evaluates thermal runaway and fire propagation, and meet current safety requirements.

NeoVolta’s products are certified under multiple safety and performance standards, including:

We expect the regulatory environment for ESS to remain highly dynamic. Although compliance requires continued investment in engineering and certification, we believe these requirements create higher barriers to entry for new competitors and reinforce NeoVolta’s positioning as a compliant and safety-focused manufacturer.

Manufacturing

We manufacture our NV14 and NV24 energy storage systems at our facility in Poway, California. These products are built under a made-to-order model, with minimal finished-goods inventory and higher raw-materials inventory relative to projected sales to support delivery timelines. In April 2023, we amended our master supply agreement and purchased bulk raw-materials inventory from our former contract manufacturer; on June 1, 2023, we assumed direct responsibility for manufacturing NV14/NV24 systems and hired key personnel who previously supported those activities. In February 2025, we secured a larger Poway facility to accommodate growth in these product lines.

Other NeoVolta products—including NVPlus, the NV7600 stand-alone inverter, and newly announced offerings—are manufactured through qualified contract partners under NeoVolta specifications. We manage supplier selection, production planning, and quality control, and we perform firmware configuration and final acceptance testing as appropriate before shipment.

Our manufacturing processes emphasize traceability and compliance. For NV14/NV24, we track components from receipt through final build, recording serial numbers, torque settings, and required test results prior to packaging. All units are released only after passing defined quality checkpoints. For partner-manufactured products, we apply incoming inspection protocols aligned to our specifications and certifications.

We source critical components from suppliers in the United States and Asia. To mitigate risks from supply chain disruptions, tariffs, or component shortages, we maintain buffer stocks of key NV14/NV24 components, pursue multi-sourcing arrangements, and coordinate production schedules with our partners. In addition, we are actively working to increase domestic content across our products and to ensure that our supply chain is compliant with Foreign Entity of Concern (FEOC) requirements, which will become increasingly important for eligibility under federal incentive programs.

Employees

As of June 30, 2025, we had 17 full-time employees. Our Chief Executive Officer oversees overall company strategy, sales, and product development, while our Chief Financial Officer manages finance and administration. Our Poway facility staff is primarily focused on manufacturing and quality control for our NV14 and NV24 systems, supported by supply chain, technical support, and sales and marketing personnel.

We also engage outside consultants and contractors for specialized functions, including research and development, regulatory compliance, and market development. From time to time, we may enter into specific contracts for non-recurring projects to supplement our workforce.

We consider our relationship with employees to be good. None of our employees are represented by a labor union, and we have not experienced any work stoppages.

Access to Information

Our website is at www.neovolta.com. We make available, free of charge, on our corporate website, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as soon as reasonably practicable after they are electronically filed with the Securities and Exchange Commission (SEC). The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov. Information contained on our website does not, and shall not be deemed to, constitute part of this Annual Report on Form 10-K. Our reference to the URL for our website is intended to be an inactive textual reference only.