Company: TOGIW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001214659-25-011987
Chunk: 4

Company: TurnOnGreen, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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 $                        648,000  
  Leasehold improvements, furniture and equipment                           221,000                               221,000  
  Gross property and equipment                                              869,000                               869,000  
  Less: accumulated depreciation and amortization                         ( 754,000                             ( 715,000  
  Property and equipment, net                          $                    115,000      $                        154,000  

Depreciation and amortization expenses related
to property and equipment was $12,000and $17,000for the three months ended June 30, 2025, and 2024, respectively. Depreciation and amortization
expenses related to property and equipment was $39,000and $48,000for the six months ended June 30, 2025, and 2024, respectively.

7. INVENTORIES

As of June 30, 2025, and December 31, 2024, inventories
consisted of:

  Schedule of inventories                                                                                  
                                         June 30, 2025                     December 31, 2024               
  Raw materials, parts and supplies      $                    807,000      $                      416,000  
  Finished products                                           296,000                             474,000  
  Total inventories                      $                  1,103,000      $                      890,000  

8. LAWSUIT LIABILITY

Gordon v. Digital Power Corporation

On or about November 21, 2019, the plaintiff William
Gordon filed a complaint against defendant, DPC, alleging wrongful termination and disability discrimination. The arbitration was conducted
during October 2022. Aside from the opening and responding trial briefs, the arbitrator requested additional briefing on two subjects,
undisclosed principal liability, and disclosed principal liability, both of which were submitted. In May 2023 the arbitrator entered a
final award against the Company and in favor of Mr. Gordon in the amount of $1.1 million inclusive of interest, legal fees, administrative
fees and expenses. Interest accrues at 10% per annum.

The Company has recorded a lawsuit liability of
$1.1million for this judgement as of June 30, 2025, and December 31, 2024, in the condensed consolidated balance sheets. Interest expense
related to liability was $7,000and $0for the three months ended June 30, 2025, and 2024, respectively. Interest