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

Company: TurnOnGreen, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 and classifications of liabilities that might be necessary should we be unable to
continue as a going concern. As of September 30, 2025, we had cash and cash equivalents of $.1 million and negative working capital of
$7.9 million.

Securities Purchase Agreement

On October 29, 2025, the Company entered into
a Securities Purchase Agreement with SJC Lending LLC, pursuant to which the Company agreed to sell to SJC convertible promissory notes
in the aggregate principal amount of up to $ 1,650,000 for a total purchase price of up to $ 1.5 million.

The Agreement provides that the Loan shall be
conducted through seven (7) separate tranche closings, provided, that SJC has the ability, exercisable in its sole discretion, to purchase
any principal face amount of Convertible Notes prior to the dates of the tranche closings provided for in the Agreement.

Pursuant to the Agreement, the initial tranche
closing, which occurred on October 29,2025, consisted of the issuance of a Convertible Note to SJC in the principal face amount of $440,000
for a purchase price of $400,000. The Convertible Note accrues interest at 10% per annum and will mature October 29, 2026. The Convertible
Note is convertible into shares of the Company’s common stock at any time at a conversion price equal to the greater of (i) $0.035
per share, which shall not be adjusted for stock dividends, stock splits, stock combinations and other similar transactions and (ii) 20%
discount to the Company’s lowest VWAP (as defined in the Convertible Note) of the common stock during the ten trading days immediately
prior to the date of conversion into shares of common stock.

  14  

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