Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 39

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 39
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 the development and deployment
of new information technology systems, which could adversely affect, or even temporarily disrupt, all or a portion of our operations until
resolved. Inabilities and delays in implementing new systems can also affect our ability to realize projected or expected cost savings.
Any system’s failures could impede our ability to timely collect and report financial results in accordance with applicable laws.

Information technology system and/or network disruptions
could harm the company’s operations. Failure to effectively prevent, detect and recover from security breaches, including cyber-attacks,
could result in the misuse of company assets, unauthorized use or publication of our trade secrets and confidential business information,
disruption to the company, diversion of management resources, regulatory inquiries, legal claims or proceedings, reputational damage,
loss of sales, reduction in value of our investment in research and development, among other costs to the company. Although we have not
experienced any attempts to gain unauthorized access to our information technology systems on which we maintain proprietary and confidential
information, in the future, we may experience such attempts. The risk of a security breach or disruption, particularly through cyber-attacks,
or cyber intrusion, including by computer hackers, and cyber terrorists, has generally increased as cyber-attacks have become more prevalent
and harder to detect and fight against. Additionally, outside parties may attempt to access our confidential information through other
means, for example by fraudulently inducing our employees to disclose confidential information. We actively seek to prevent and detect
any unauthorized access. These threats are also continually evolving and, as a result, might become increasingly difficult to detect.

We face intense industry competition, price
erosion and product obsolescence, which, in turn, could reduce our profitability.

We operate in an industry that is generally characterized
by intense competition. We believe that the principal bases of competition in our markets are breadth of product line, quality of products,
stability, reliability and reputation of the provider, along with cost. Quantity discounts, price erosion, and rapid product obsolescence
due to technological improvements are therefore common in our industry as competitors strive to retain or expand their market share. Product
obsolescence can lead to increases in unsaleable inventory that may need to be written off and, therefore, could reduce our profitability.
Similarly, price erosion can reduce our profitability by decreasing our revenues and our gross margins. In fact, we have seen price erosion
over the last several years on most of the products we sell, and we expect additional price erosion in the future.

If we are