Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 28

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 28
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affect our standing with our customers and the public, thereby making it more difficult for us to compete effectively, and could significantly
impact the cost and availability of adequate insurance in the future.

Risks Related to Our EV Charging Business and
the EV Charging Industry

We are dependent upon our and our contract
manufacturers’ ability to timely procure electronic components.

Because of the global economy, many raw material
vendors have reduced capacities, closed production lines and, in some cases, even discontinued their operations. As a result, there is
a global shortage of certain electronic or mineral components, which may extend our production lead-time and our production costs. Some
materials are no longer available to support some of our products, thereby requiring us to search for cross materials or, even worse,
redesign some of our products to support currently available materials. Such redesign efforts may require certain regulatory and safety
agency re-submittals, which may cause further production delays. While we have initiated actions that we believe will limit our exposure
to such problems, the dynamic business conditions in many of our markets may challenge the solutions that have been put in place, and
issues may recur in the future.

In addition, most of our products are manufactured,
assembled and tested by third party subcontractors and contract manufacturers located in Asia, and particularly China. While we have had
relationships with many of these third parties in the past, we cannot predict how or whether these relationships will continue in the
future. In addition, changes in management, financial viability, manufacturing demand or capacity, or other factors, at these third parties
could hurt our ability to manufacture our products.

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We may not be able to procure necessary key components or
raw materials, or we may purchase excess raw material inventory or unusable inventory, which increases the risk of reserve charges to
reduce the value of any inventory deemed excess or obsolete, thereby reducing our profitability.

The power systems industry, and the electronics
industry as a whole, can be subject to pronounced, lengthy business cycles and otherwise subject to sudden and sharp changes in demand.
Our success is, in part, dependent on our ability to forecast and procure inventories of components and materials to match production
schedules and customer delivery requirements. Many of our products require raw materials supplied by a limited number of vendors and,
in some instances, a single vendor. During certain periods, key components or materials required to build our products may become unavailable
in the timeframe required for us to meet our customers’ needs. Our inability to