Company: TOGIW
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001214659-25-015980
Chunk: 4

Company: TurnOnGreen, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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fees and expenses. Interest accrues at 10% per annum.

The Company has recorded a lawsuit liability of
$1.1million for this judgement as of September 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 September 30, 2025, and 2024, respectively. Interest expense
for the nine months ended September 30, 2025, and 2024 was $26,000and $0, respectively.

9. LEASES

Office and Warehouse Leases and Sublease

The components of net operating lease expenses,
recorded within operating expenses on the Company's condensed consolidated statements of operations for the three and nine months ended
September 30, 2025, and 2024, were as follows:

  Schedule of lease cost                                                                            
                              Three Months Ended                   Nine Months Ended                
  Operating lease cost        $                       137,000      $                       412,000  

                             Three Months Ended       Nine Months Ended  
                             September 30, 2024      September 30, 2024  
 ─────────────────────────────────────────────────────────────────────────
  Operating lease cost                 $162,000                $486,000  
  Less: Sublease income                ( 25,000                ( 75,000  
  Total                                $137,000                $411,000  

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 $36,000and $103,000for the three months ended September 30, 2025, and 2024, respectively and $146,000and $298,000for the nine months ended September 30,
2025, and 2024, respectively.

Related Party Notes and Advances Payable

Related party notes and advances payable were
used for working capital purposes and on September 30, 2025, and December 31