Company: TOGIW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001214659-25-011987
Chunk: 5

Company: TurnOnGreen, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 expense for the six
months ended June 30, 2025, and 2024 was $14,000and $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 six months ended
June 30, 2025, and 2024, were as follows:

  Schedule of lease cost                                                                          
                              Three Months Ended                   Six Months Ended               
  Operating lease cost        $                       137,000      $                     275,000  

                             Three Months Ended      Six Months Ended  
                                  June 30, 2024         June 30, 2024  
 ───────────────────────────────────────────────────────────────────────
  Operating lease cost                 $162,000              $324,000  
  Less: Sublease income                ( 25,000              ( 50,000  
  Total                                $137,000              $274,000  

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 $64,000and $103,000for the three months ended June 30, 2025, and 2024, respectively and $128,000and $206,000for the six months ended June 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 June 30, 2025, and December 31, 2024, were comprised of the following:

  Schedule of related party notes payable                                                                                                               
                                                              Due date      Credit Limit      June 30,                     December 31,                 
  Hyperscale advance payable                          10      Demand        $                 $             6,426,000      $                 5,118,000  
  Chief Executive Officer                             14      Default                                          51,000                           46,000  
  Total