Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 49

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 49
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 the meaning of Public Company Accounting Oversight Board (“ PCAOB”) Audit Standard No.
5, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual
or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material
weaknesses which have caused management to conclude that as of December 31, 2024, our internal control over financial reporting (“ ICFR”)
was not effective at the reasonable assurance level:

  We do not have sufficient resources in our accounting function, which restricts our ability to gather,                                          
  analyze and properly review information related to financial reporting, including fair value estimates, in a timely manner. Due to our          
  size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the         
  extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate        
  individuals. The company's primary user access controls to ensure appropriate authorization and segregation of duties that would adequately     
  restrict user and privileged access to the financially relevant systems and data to appropriate personnel were not designed and/or implemented  
  effectively.                                                                                                                                    
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  The insufficient resources in our accounting function also resulted in a deficiency over design and implementation                      

  Management also concluded that there was a deficiency in internal controls over financial reporting relating                           

  We did not design and maintain effective controls associated with related party transactions and disclosures.                                

Management evaluated the impact of our failure
to have segregation of duties, inadequacy in design of revenue recognition policies and procedures, failure to properly account for and
provide adequate disclosures of complex financial instruments and deficiency in identification and a disclosure of related party transactions
and concluded that the multiple control deficiencies that resulted represented material weaknesses.

While management evaluates the effectiveness of
our internal controls on a regular basis, these controls may not always be effective. There are inherent limitations on the effectiveness
of internal controls, including collusion, management override, and failure in human judgment. In addition, control procedures are designed
to reduce rather than eliminate business risks. In the event our Chief Executive Officer or Chief Financial Officer, our certifying officers
under the Sarbanes-Oxley Act of 2002 (the “ SOX”), or our independent registered public accounting firm determines our internal
controls over financial reporting are not effective