Company: TOGIW
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001214659-25-007984
Chunk: 1

Company: TurnOnGreen, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 1
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000  

The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.

   6  

TURNONGREEN, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

1. DESCRIPTION OF BUSINESS

Overview

TurnOnGreen, Inc., a Nevada corporation (“ TOG”),
through its wholly owned subsidiaries Digital Power Corporation (“ Digital Power”) and TOG Technologies Inc. (“ TOGT,”
and together with Digital Power, the “ Company”), is an emerging provider of premium power electronic and electric vehicle
(EV) charging solutions. The Company designs, develops, manufactures, and sells highly engineered, feature-rich, high-grade power conversion
systems and power solutions for mission-critical, life-sustaining, and lifesaving applications across a variety of sectors, particularly
those operating in demanding and harsh environments.

The Company serves a broad range of markets, including
defense and aerospace, medical and healthcare, industrial applications, telecommunications, e-Mobility, and OEM solutions. Our products
are highly adaptive, featuring customized firmware meticulously configured to meet the specific requirements and challenges of our customers’
applications. In addition, we provide comprehensive EV charging infrastructure and subscription-based network management services for
residential, fleet, hospitality, workplace, healthcare, municipal, and educational environments including universities and schools.

2. LIQUIDITY AND GOING CONCERN

The accompanying condensed consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring operating
and net losses that have not provided sufficient cash flows. Management believes that the Company will continue to incur operating and
net losses each quarter until at least the time it begins significant deliveries of its products. The Company’s inability to
continue as a going concern could have a negative impact on the Company, including its ability to
obtain needed financing. In view of these matters, there is substantial doubt about the Company’s ability to continue as a
going concern.

The Company intends to finance its future development
activities and its working capital needs largely through advances from Hyperscale, Inc. (“ Hyperscale”) (See Note 10) until
such time as funds provided by operations are sufficient to fund working capital requirements. Although management believes that capital
sources will be available, there can be no assurances that Hyperscale will continue providing financing to the Company when needed to
allow the Company to continue its operations