The NeoGeo uses a discrete video Digital-to-Analog Converter made of resistors fed by two 74LS273 latches which store the color value from the palette RAM and 74LS06 inverters. This is controlled by either NEO-B1, NEO-GRC or NEO-GRZ.
Each color component has its own set of 7 resistors. 6 of them are used for the actual color value (5 + 1 common bit). The last (SHADOW signal) is related to the REG_SHADOW and REG_NOSHADOW registers (system latch).
The output isn't lowered like on the AES. It goes straight to the JAMMA edge as a 0~3.5V signal for the high-impedance inputs on arcade monitors.
The output is divided by 2200 / (6800 + 2200) = 4.1 to obtain a ~0.9Vp-p max signal, which feeds the video encoder for amplification and conversion to composite.