Company: TOGIW
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001214659-25-015980
Chunk: 3

Company: TurnOnGreen, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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4, the Company had related
party receivables of $0and $17,000respectively.

6. PROPERTY AND EQUIPMENT, NET

As of September 30, 2025, and December 31, 2024,
property and equipment consisted of the following:

  Schedule of property and equipment                                                                                            
                                                       September 30, 2025                     December 31, 2024                 
  Machinery and equipment                              $                         648,000      $                        648,000  
  Leasehold improvements, furniture and equipment                                312,000                               221,000  
  Gross property and equipment                                                   960,000                               869,000  
  Less: accumulated depreciation and amortization                              ( 774,000                             ( 715,000  
  Property and equipment, net                          $                         186,000      $                        154,000  

Depreciation and amortization expenses related
to property and equipment was $20,000and $17,000for the three months ended September 30, 2025, and 2024, respectively. Depreciation
and amortization expenses related to property and equipment was $59,000and $68,000for the nine months ended September 30, 2025, and
2024, respectively.

7. INVENTORIES

As of September 30, 2025, and December 31, 2024,
inventories consisted of:

  Schedule of inventories                                                                                       
                                         September 30, 2025                     December 31, 2024               
  Raw materials, parts and supplies      $                         891,000      $                      416,000  
  Finished products                                                200,000                             474,000  
  Total inventories                      $                       1,091,000      $                      890,000  

8. LAWSUIT LIABILITY

Gordon v. Digital Power Corporation

On or about November 21, 2019, the plaintiff William
Gordon filed a complaint against defendant, DPC, alleging wrongful termination and disability discrimination. The arbitration was conducted
during October 2022. Aside from the opening and responding trial briefs, the arbitrator requested additional briefing on two subjects,
undisclosed principal liability, and disclosed principal liability, both of which were submitted. In May 2023 the arbitrator entered a
final award against the Company and in favor of Mr. Gordon in the amount of $1.1 million inclusive of interest, legal fees, administrative