Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 40

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 40
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 unable to satisfy our customers’
specific product quality, certification or network requirements, our business could be disrupted, and our financial condition could be
harmed.

Our customers demand that our products meet stringent
quality, performance and reliability standards. We have, from time to time, experienced problems in satisfying such standards. Defects
or failures have occurred in the past, and may in the future occur, relating to our product quality, performance and reliability. From
time to time, our customers also require us to implement specific changes to our products to allow these products to operate within their
specific network configurations. If we are unable to remedy these failures or defects or if we cannot affect such required product modifications,
we could experience lost revenues, increased costs, including inventory write-offs, warranty expense and costs associated with customer
support, delays in, or cancellations or rescheduling of, orders or shipments and product returns or discounts, any of which would harm
our business.

Risks Related to Our Relationship with Hyperscale

As long as Hyperscale controls us, your ability
to influence matters requiring shareholder approval will be limited.

As of December 31, 2024, Hyperscale beneficially
owns approximately 26 million shares of our common stock and approximately 33.5 million through its ownership of shares of our Series
A Preferred Stock, the Preferred Stock is subject to a 19.9% beneficial ownership limitation, representing approximately 17% of the combined
voting power of our outstanding common stock. For so long as Hyperscale beneficially owns shares of our common stock representing at least
a majority of the votes entitled to be cast by the holders of outstanding common stock, and potentially even a number of beneficially
owned shares that falls short of a majority, Hyperscale will be able to elect all of the members of our board of directors. For so long
as any of the shares of Series A Preferred Stock remains issued and outstanding, Hyperscale will have the ability to appoint a majority
of our board of directors.

In addition, until such time as Hyperscale beneficially
owns shares of our common stock representing less than a majority of the votes entitled to be cast by the holders of outstanding common
stock, Hyperscale will have the ability to take shareholder action without the vote of any other shareholder and without having to call
a shareholder meeting, and shareholders will not be able to affect the outcome of any shareholder vote during this period. As a result,
Hyperscale