Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 29

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 29
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 secure sufficient raw materials to manufacture products
for our customers has reduced, in the past, our revenue and profitability and could do so again.

We may choose, and have chosen, to mitigate our
inventory risks by increasing the levels of inventory for certain products, components and materials. Such increased inventory levels
may increase the potential risk for excess or obsolete inventories, should our forecasts fail to materialize or if there are negative
factors impacting our customers’ end markets, leading to order cancellation. If we identify excess inventory or determine certain
inventory is obsolete (i. e., unusable), we likely will record additional inventory reserves (i. e., expenses representing the write-off
of the excess or obsolete inventory), which could have an adverse effect on our gross margins and on our operating results.

We depend on international operators for a
substantial portion of our components and products.

We purchase a substantial portion of our components
from foreign manufacturers and have a substantial portion of our commercial products assembled, packaged and tested by subcontractors
located outside the United States. These activities are subject to the uncertainties associated with international business operations,
including trade barriers and other restrictions, changes in trade policies, governmental regulations, currency exchange fluctuations,
reduced protection for intellectual property, war and other military activities, terrorism, changes in social, political, or economic
conditions, and other disruptions or delays in production or shipments, any of which could have a materially adverse effect on our business,
financial condition, and/or operating results.

Although no assurance can be given that future
disruptions will not occur, to date, we have not experienced any disruptions due to our reliance on foreign manufacturers. In the future,
if any one of our foreign manufacturers experiences an extensive disruption in the production of the products that we need, we will have
to pursue alternative plans of production, such as finding an alternative manufacturer to produce those products affected by such disruption.
Alternative manufacturers that produce the products that we need do exist. Nonetheless, having to locate an alternative supplier may
cause a material disruption in our ability to produce and supply products to our customers. If we have to pursue alternative plans of
production, it could have a materially adverse effect on our business, financial condition, and operating results.

We may face significant risks and operational
disruptions in transitioning to a new contract manufacturer, which could adversely affect our business, results of operations, and customer
relationships.

Shifting production to a new contract manufacturer
(“ CM”) involves numerous challenges and introduces substantial risks that could materially impact our