Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 24

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 24
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and OEM partners, which could negatively affect our business, results of operations and financial condition.

If our major OEM customers reduce or cancel their
orders scaling back some of their activities, our revenues would be significantly reduced. Further, diversions in the capital spending
of certain of these customers to new network elements have and could continue to lead to their reduced demand for our products, which
could, in turn, have a material adverse effect on our business and results of operations. If the financial condition of one or more of
our major customers should deteriorate, or if they have difficulty acquiring investment capital due to any of these or other factors,
a substantial decrease in our revenues would likely result. We are dependent on the electronic equipment industry and accordingly will
be affected by the impact on that industry of current economic conditions.

Substantially all of our existing customers are
in the electronic equipment industry, and they manufacture products that are subject to rapid technological change, obsolescence, and
large fluctuations in demand. This industry is further characterized by intense competition and volatility. The OEMs serving this industry
are pressured for increased product performance and lower product prices. OEMs, in turn, make similar demands on their suppliers, such
as us, for increased product performance and lower prices. Such demands may adversely affect our ability to successfully compete in certain
markets or our ability to sustain our gross margins.

We anticipate growing international sales for a portion of our revenues,
for which there can be no assurance.

Sales to customers outside of North America accounted
for 2%, and 10% of revenues for the years ended December 31, 2024, and 2023, respectively, and we expect that international sales will
represent an increasing portion of our total revenues. International sales are subject to the risks of international business operations
as described above, as well as generally longer payment cycles, greater difficulty collecting accounts receivable and currency restrictions.

  14  

Our backlog is subject to reduction and cancellation
and unavailability of raw materials used in our products, which could negatively impact our revenues and results of operations.

Backlog represents products or services that our
customers have committed by contract to purchase from us. Many of the orders that comprise our backlog may be canceled by our customers,
and we cannot be certain that the amount of our backlog does not exceed the level of orders that will ultimately be delivered. Moreover,
cancellations of purchase orders or reductions of product quantities in existing contracts could substantially and materially reduce backlog
and, consequently, future