Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 61

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 9
Chunk 61
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 reliable financial reports or prevent
fraud, we may not be able to manage our business as effectively as we would if an effective control environment existed, and our business
and reputation with investors may be harmed. As a result, our small size and any current internal control deficiencies may adversely affect
our financial condition, results of operations and access to capital. We have carried out an evaluation under the supervision and with
the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of
the design and operation of our disclosure controls and procedures as of the end of the most recent period covered by this report. Based
on the foregoing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures
were not effective at the reasonable assurance level due to the material weaknesses described below.

  39  

Material Weakness

A material weakness is a deficiency, or a combination
of deficiencies, within the meaning of Public Company Accounting Oversight Board (“ PCAOB”) Audit Standard No. 5, in internal
control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial
statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have
caused management to conclude that as of December 31, 2024, our internal control over financial reporting (“ ICFR”) was not
effective at the reasonable assurance level:

  We do not have sufficient resources in our accounting function, which restricts our ability to gather,                                    
  analyze and properly review information related to financial reporting, including fair value estimates, in a timely manner. Due to our    
  size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the   
  extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate  
  individuals. The company’s primary user access controls to ensure appropriate authorization and segregation of duties that would          
  adequately restrict user and privileged access to the financially relevant systems and data to appropriate personnel were not designed    
  and/or implemented effectively;                                                                                                           
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  The insufficient resources in our accounting function also resulted in a deficiency over design and implementation                      

  Management also concluded that there was a deficiency in internal controls over financial reporting relating                           

  Lastly, we did not design and maintain effective controls