Company: TOGIW
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001214659-25-006296
Chunk: 30

Company: TurnOnGreen, Inc.
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 30
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 operations. The transition may result
in technical and engineering setbacks, including the loss of specialized expertise and difficulties in re-qualifying manufacturing processes
and replicating established workflows at the new facility. We may also face quality and reliability issues as the new CM ramps up production,
potentially resulting in increased product defects or variability in quality standards. The change could disrupt our supply chain due
to uncertainty in sourcing raw materials and components, extended lead times, or diminished supplier reliability.

Additionally, the transition may require significant
capital expenditures related to new equipment, tooling, and inventory adjustments, as well as increased operational costs during the ramp-up
period. We may experience delays in production output and reduced capacity during this time, which could impair our ability to meet customer
demand. There is also a heightened risk of intellectual property leakage or confidentiality breaches associated with onboarding a new
CM, along with potential compliance and regulatory hurdles that could delay necessary certifications.

Such disruptions may negatively impact customer
satisfaction and damage our brand reputation, especially if product delivery timelines or quality expectations are not met.

Collectively, these risks could impair our ability
to deliver products reliably, fulfill contractual obligations, and maintain our competitive position in the market.

  17  

Changes in U. S. and international trade policies, particularly with
respect to China, and key trading countries, may adversely impact our business and operating results.

We currently rely on foreign third-party manufacturers,
and parts suppliers, including those in China, Taiwan, Israel, and other countries. The U. S. government and persons involved in the
Trump administration have made statements and taken certain actions that may lead to potential changes to U. S. and international
trade policies. In April 2025, the U. S. government announced a tariff rate of up to 145% on imports from China. Tariffs of 10were
imposed on imports from both Taiwan and Israel. If maintained and if extended to other countries, tariffs, and the potential
escalation of trade disputes with China and other countries could pose a significant risk to our business and could result in higher
cost of revenues and operating expenses. The extent and duration of any tariffs and the resulting impact on general economic
conditions and on our business are uncertain and depend on various factors, such as negotiations between the United States and China
and/or other countries, the response of such countries, exemptions or exclusions that may be granted, availability.

Disruption of our manufacturing facilities or
other operations or those of our suppliers, or