Company: TOGIW
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001214659-25-007984
Chunk: 9

Company: TurnOnGreen, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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, 2024.

Net Loss available to common shareholders

The Company amended and restated its certificate
of designations of rights and preferences of the Series A Convertible Redeemable Preferred Stock. Pursuant to the Series A Amendment,
the holder of the preferred stock, which is a related party, waived all accrued and future dividends in exchange for an increase in the
liquidation preference to 125%.

The waived dividends resulted in a decrease in
accrued preferred dividends for the three months ended March 31,2025 of $500,000 compared to the three months ended March 31, 2024.

Liquidity and Capital Resources

The accompanying consolidated financial statements
have been prepared assuming that we will continue as a going concern. We have incurred recurring net losses and operations have not provided
sufficient cash flows. We believe that we will continue to incur operating and net losses each quarter until at least the time we begin
significant deliveries of our products. Our inability to continue as a going concern could have a negative impact on our Company, including
our ability to obtain needed financing. In view of these matters, there is substantial doubt about our ability to continue as a going
concern. We intend to finance our future development activities and its working capital needs largely through the sale of equity securities
with some additional funding from other sources, including term notes until such time as funds provided by operations are sufficient to
fund working capital requirements. Our consolidated financial statements do not include any adjustments relating to the recoverability
and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should we be unable to
continue as a going concern. As of March 31, 2025, we had cash and cash equivalents of $0 million and negative working capital of $6.9
million.

Critical Accounting Estimates

Our condensed consolidated financial statements
are prepared in accordance with accounting principles generally accepted in the United States. The accounting principles we use require
us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements
and amounts of income and expenses during the reporting periods presented. We believe in the quality and reasonableness of our critical
accounting policies; however, materially different amounts may be reported under different conditions or using assumptions different from
those that we have applied. The accounting policies that have been identified as critical to our business operations and to understanding
the results of our operations pertain to the valuation of inventories and accruals of certain