Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 19

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 19
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 the obligation to pay the debt, which would
have a material adverse effect on our business, prospects, financial condition and results of operations and we could lose our existing
sources of funding and impair our ability to secure new sources of funding. You should not assume that Hyperscale will support us financially
in the future. There can be no assurance that we will be able to generate any further investor interest in our securities or other types
of funding, in which case you would likely lose the entirety of the value of our shares that will be distributed to you.

  11  

Our acquisition growth
strategy is subject to a significant degree of risk.

Our growth strategy through
acquisitions involves a significant degree of risk. Some of the companies that we have identified as acquisition targets may not have
a developed business or are experiencing inefficiencies and incur losses. Therefore, we may lose our investment assuming we are able to
make one, in the event that these companies’ businesses do not develop as planned or that they are unable to achieve the anticipated
cost efficiencies or reduction of losses.

Further, in order to
implement our growth plan, we have hired additional staff and consultants to review potential investments and implement our plan. As a
result, we have substantially increased our infrastructure and costs. If we fail to quickly find new companies that provide revenue to
offset our costs, we will continue to experience losses. No assurance can be given that our product development and investments will produce
sufficient revenues to offset these increases in expenditures.

If we make any acquisitions, they may disrupt
or have a negative impact on our business.

Whenever we make acquisitions, we could have difficulty
integrating the acquired companies’ personnel and operations with our own. In addition, the key personnel of the acquired business
may not be willing to work for us. We cannot predict the effect expansion may have on our core business. Regardless of whether we are
successful in making an acquisition, the negotiations could disrupt our ongoing business, distract our management and employees and increase
our expenses. In addition to the risks described above, acquisitions are accompanied by several inherent risks, including, without limitation,
the following:

  The possibility that senior management and/or management of future acquired companies terminate their  

  difficulty of integrating acquired products, services or operations;  

  integration of new employees and management into our culture while maintaining focus on operating efficiently  

  potential disruption of the ongoing businesses and distraction of our management and the management of  

  unanticipated issues with transferring customer relationships;  

  complexity associated