Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 42

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 42
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 a company, independent of us. In such instances, Hyperscale may exercise its control over us in a way that is
beneficial to Hyperscale, and you will not be able to affect the outcome so long as Hyperscale continues to hold a majority of the outstanding
shares entitled to vote. Even if Hyperscale were to reduce its ownership below a majority of the aggregate voting power of the common
stock, it could still retain effective control of our company provided that it maintained a significant number of our outstanding common
stock.

In the event Hyperscale is acquired or otherwise
undergoes a change of control, any acquirer or successor will be entitled to exercise the voting control and contractual rights of Hyperscale
and may do so in a manner that could vary significantly from what Hyperscale would have done or not done.

Our historical financial information as a subsidiary
of Hyperscale may not be representative of our results as an independent public company.

The historical financial information we have included
in this Annual Report does not necessarily reflect what our financial position, results of operations or cash flows would have been had
we been an independent entity during the historical periods presented. The historical costs and expenses reflected in our consolidated
financial statements include an allocation for certain corporate functions historically provided by Hyperscale, including tax, accounting,
treasury, legal, human resources, compliance, insurance, sales and marketing services. The historical financial information is not necessarily
indicative of what our results of operations, financial position, cash flows or costs and expenses will be in the future. We have not
made pro forma adjustments to reflect many significant changes that will occur in our cost structure, funding and operations as a result
of our transition to becoming a public company, including changes in our employee base, potential increased costs associated with reduced
economies of scale and increased costs associated with being a publicly traded, stand-alone company. For additional information, see “ Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and our historical consolidated financial statements and
notes thereto.

  23  

Risks Relating to the Distribution and Ownership
of Our Common stock

We may not achieve the benefits expected from
the Distributionandmay be more susceptible to adverse events.

We expect that, as a company independent from
Hyperscale, we will be able to grow organically and through acquisitions. Nonetheless, we may not be able to achieve any of these benefits.
Further, by separating from Hyperscale,