Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 17

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 17
---
ITEM
1A. RISK FACTORS

An investment in our common stock involves significant
risks. You should carefully consider the following risks and all other information set forth in this Annual Report before deciding to
invest in our common stock. If any of the events or developments described below occurs, our business, financial condition and results
of operations may suffer. In that case, the value of our common stock may decline, and you could lose all or part of your investment.

You should consider each of the following risk
factors and any other information set forth in this Annual Report and the other reports filed by the Company with the SEC, including the
Company’s financial statements and related notes, in evaluating the Company’s business and prospects. The risks and uncertainties
described below are not the only ones that impact on the Company’s operations and business. Additional risks and uncertainties not
presently known to the Company, or that the Company currently considers immaterial, may also impair its business or operations. If any
of the following risks actually occurs, the Company’s business and financial condition, results or prospects could be harmed. Please
also read carefully the section entitled “ Special Note Regarding Forward-Looking Statements” at the beginning of this Annual
Report.

Risks Related to the Company and Financial Condition

We have a history of annual net losses which
may continue and which may negatively impact our ability to achieve our business objectives.

As of December 31, 2024, we had cash of $0.0 million
and negative working capital of $6.5 million. We have incurred recurring losses, anticipate continuing losses, and reported losses available
to common shareholders for the years ended December 31, 2024 and December 31, 2023 of $4.0 million and $6.9 million, respectively. In
the past, we have financed our operations principally through investment by Hyperscale, our current parent company. There can be no assurance
that, even if our revenues increase, future operations will result in net income. Our failure to increase our revenues or improve our
gross margins will harm our business. We may not be able to sustain or increase profitability on a quarterly or annual basis in the future.
If our revenues grow more slowly than we anticipate, our gross margins fail to improve or our operating expenses exceed our expectations,
our operating results will suffer. The prices we charge for our products may decrease, which would reduce our revenues and gross margins
and harm our business. If we are