Company: TOGIW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001214659-25-011987
Chunk: 15

Company: TurnOnGreen, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 4
Chunk 15
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 accurate manufacturing and provide proper recording of raw materials
inventory. The BOM structure ultimately minimizes inventory inaccuracies and production delays, and we have been increasing cycle counting
of inventory used in production to improve accuracy. Lastly, we have recently hired a material specialist whose responsibility is to maintain
inventory records.

Revenue Recognition. We intend on enhancing
the design of existing controls and implementing new controls over the review of the application and recording of revenue for customer
contracts under the guidance outlined in ASC 606. We also intend on implementing more thorough reviews of contracts by evaluating contractual
terms and determining whether certain contracts should be consolidated, involve related parties and the proper timing of revenue recognition.
These reviews will include more comprehensive contractual analysis from our legal team while ensuring qualified resources are involved
and adequate oversight is performed during the internal technical accounting review process.

Accounts Receivable. We intend on enhancing
the design of existing controls and implementing new controls over the processing and review of accounts receivable billings. We plan
to supplement our accounting staff with more experienced personnel. We will also evaluate information system capabilities in order to
reduce the manual calculations within this business process.

Complex Financial Instruments. We will
design and implement controls to properly identify and implement the proper accounting treatment and classifications of our complex financial
instruments to ensure our equity accounting and treatment is in accordance with U. S. generally accepted accounting principles. We intend
to accomplish this by implementing more thorough reviews of certain details regarding all rights, penalties, record holders and negative
covenants of the financial instruments in order to apply the correct accounting guidance (liabilities vs. equity vs. temporary equity).

Fair Value Estimates. We will design and
implement additional control activities to ensure controls related to fair value estimates (including controls that validate the reasonableness,
completeness and accuracy of information, data and assumptions), are properly designed, implemented and documented.

While these actions and planned actions are subject
to ongoing management evaluation and will require validation and testing of the design and operating effectiveness of internal controls
over a sustained period of financial reporting cycles, we are committed to the continuous improvement of our internal control over financial
reporting. We will continue to diligently review our internal control over financial reporting.

Changes in Internal Control over Financial
Reporting

There were
no changes in our internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or
that are reasonably likely to materially affect, our internal control over financial reporting.

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PART II -