Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 55

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 55
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 employment agreements with our officers. The foregoing indemnification obligations could result in us incurring substantial expenditures
to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and
the resulting costs may also discourage us from bringing a lawsuit against directors and officers for breaches of their fiduciary duties
and may similarly discourage the filing of derivative litigation by our shareholders against our directors and officers even though such
actions, if successful, might otherwise benefit us and our shareholders.

Failure to build our finance infrastructure
and improve our accounting systems and controls could impair our ability to comply with the financial reporting and internal controls
requirements for publicly traded companies.

As a public company, we will operate in an increasingly
demanding regulatory environment, which requires us to comply with SOX, the rules and regulations of the SEC, expanded disclosure requirements,
accelerated reporting requirements and more complex accounting rules. Company responsibilities required by SOX include establishing corporate
oversight and adequate internal control over financial reporting and disclosure controls and procedures. Effective internal controls are
necessary for us to produce reliable financial reports and are important to help prevent financial fraud. Commencing with our fiscal year
ending 2024, we must perform system and process evaluation and testing of our internal controls over financial reporting to allow management
to report on the effectiveness of our internal controls over financial reporting in our Form 10-K filing for that year, as required by
Section 404 of SOX. We have never been required to test our internal controls within a specified period and, as a result, we may experience
difficulty in meeting these reporting requirements in a timely manner.

We anticipate that the process of building our
accounting and financial functions and infrastructure will require significant additional professional fees, internal costs and management
efforts. We expect that we will need to implement a new internal system to combine and streamline the management of our financial, accounting,
human resources and other functions. However, such a system would likely require us to complete many processes and procedures for the
effective use of the system or to run our business using the system, which may result in substantial costs. Any disruptions or difficulties
in implementing or using such a system could adversely affect our controls and harm our business. Moreover, such disruption or difficulties
could result in unanticipated costs and diversion of management attention. In addition, we may discover weaknesses in our system of internal
financial and accounting controls and procedures that could result in a material misstatement of our financial statements. Our internal