Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 48

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 48
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 provided in the Nevada  

  transaction from which the directors derived an improper personal benefit.  

These limitations of liability do not apply to
liabilities arising under the federal or state securities laws and do not affect the availability of equitable remedies such as injunctive
relief or rescission.

Our bylaws provide that we will indemnify our
directors, officers and employees to the fullest extent permitted by law. Our bylaws also provide that we are obligated to advance expenses
incurred by a director or officer in advance of the final disposition of any action or proceeding. We believe that these provisions are
necessary to attract and retain qualified persons as directors and officers.

The limitation of liability in our articles of
incorporation and bylaws may discourage shareholders from bringing a lawsuit against directors for breach of their fiduciary duties. They
may also reduce the likelihood of derivative litigation against directors and officers, even though an action, if successful, might provide
a benefit to us and our shareholders. Our results of operations and financial condition may be harmed to the extent we pay the costs of
settlement and damage awards against directors and officers pursuant to these indemnification provisions.

General Risk Factors

If we fail to establish and maintain an effective
system of internal control over financial reporting, we may not be able to report our financial results accurately or prevent fraud. Any
inability to report and file our financial results accurately and timely could harm our reputation and adversely impact the trading price
of our common stock.

Effective internal control over financial reporting
is necessary for us to provide reliable financial reports and prevent fraud. If we cannot provide reliable financial reports or prevent
fraud, we may not be able to manage our business as effectively as we would if an effective control environment existed, and our business
and reputation with investors may be harmed. As a result, our small size and any current internal control deficiencies may adversely affect
our financial condition, results of operations and access to capital. We have carried out an evaluation under the supervision and with
the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of
the design and operation of our disclosure controls and procedures as of the end of the most recent period covered by this report. Based
on the foregoing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures
were not effective at the reasonable assurance level due to the material weaknesses described below.

  26  

A material weakness is a deficiency, or
a combination of deficiencies, within