Company: TOGIW
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001214659-25-007984
Chunk: 5

Company: TurnOnGreen, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 income                ( 25,000  
  Total                                $137,000  

10. RELATED PARTY TRANSACTIONS

The Company is a controlled subsidiary of Hyperscale,
and as a result Hyperscale is deemed a related party.

Allocation of General Corporate Expenses

Hyperscale provides human resources, accounting
and other services to the Company, which are included as allocations of these expenses. The allocation method calculates an appropriate
share of overhead costs by using Company revenue as a percentage of total revenue. This method is reasonable and consistently applied.
Costs incurred in connection with the allocation of these costs are reflected in selling, general and administrative of $590,000and $893,000for the three months ended March 31, 2025, and 2024, respectively.

Related Party Notes and Advances Payable

Related party notes and advances payable were
used for working capital purposes and on March 31, 2025, and December 31, 2024, were comprised of the following:

  Schedule of related party notes payable                                                                                                                
                                                                            Credit Limit      March 31,                     December 31,                 
  Hyperscale advance payable                          10%      Demand       $                 $              5,683,000      $                 5,118,000  
  Chief Executive Officer                             14%      Default                                          71,000                           46,000  
  Non-officer advance payable                         -        -                                                21,000                           21,000  
  Total related party notes and advances payable                                              $              5,775,000      $                 5,185,000  

Pursuant to the Amendment, the Company and Hyperscale
have agreed to, among other things, amend the Credit Agreement to increase the Credit Limit to $8,000,000, extended the date to which
credit extensions may be made toDecember 31, 2026, and provide for additional loans made in excess of the initial Credit Limit to become
Advances. The related party note payable accrues interest of 10%, has no fixed terms of repayment and is recorded as related party advance
payable.

The Hyperscale advance payable funded the allocation
of general corporate expenses noted above for the three months ended March 31, 2025, and 2024.

Summary of interest expense, related party, recorded
on the condensed consolidated statement of operations:

  Schedule of interest expense, related party                                                                     
                                                   For the Three Months Ended                                     
                                                   March 31,