Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 38

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 38
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 conditioning and accelerated testing
performed on equipment developed by us or the third-party partners. An important, differentiating benefit of this proprietary process
is that it does not generate problematic effluent, resulting in an environmentally safe approach to our products with minimal waste. We
have entered into agreements with a third-party partner for production and transfer of technologies and process know-how, including the
purchase of the enabling equipment developed by the third-party partner.

To date, we have successfully relied upon this
third-party partner to perform these manufacturing steps, although we have experienced delivery delays associated with the third-party
partner’s volume constraints. This experience caused us to accelerate our schedule for establishing our own high-volume capabilities
in-house, modifying, in 2020, our construction plans to accommodate a dedicated, on-premises metal surface finishing facility. We expect
to rely on our third-party partner for production requirements through the installation and qualification for production of our products.
We also expect to rely on our third-party partner in the future for surge capacity requirements.

In the event one of our third-party vendors experiences
a cybersecurity incident, we have taken steps to mitigate potential damages to our operations by diversifying our sources of supply to
such an extent that we have the ability to move production of a product impacted by such cybersecurity incident to an alternative third-party
vendor. Due to our diverse sources of supply, we do not believe that cybersecurity incidents at the third-party vendor level of our supply
chain will have a material impact on our business. However, if our third-party partner experiences a cybersecurity incident, our operations
related to manufacturing associated with some of our proprietary processes supporting our power products and solutions could be disrupted,
or otherwise negatively affected. If we are unable to procure alternatives in a timely and efficient manner and on acceptable terms, or
at all, third-party supply unavailability could result in customer dissatisfaction, regulatory scrutiny and damage to our reputation and
brand, and other consequences that could adversely affect our business.

  21  

We are dependent on information technology in our operations
and the failure of such technology may adversely affect our business. Potential security breaches of our information technology systems,
including cyber-attacks, could lead to liability or could damage our reputation and financial results.

Although no assurance can be given that future
disruptions will not occur, to date we have not experienced problems with the operations of our current technology systems or the technology
systems of third parties on which we rely. In the future, we may experience such problems, as well as with