Company: TOGIW
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001214659-25-007984
Chunk: 4

Company: TurnOnGreen, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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Depreciation and amortization expenses related
to property and equipment was $20,000and $24,000for the three months ended March 31, 2025, and 2024, respectively.

7. INVENTORIES

As of March 31, 2025, and December 31, 2024,
inventories consisted of:

  Schedule of inventories                                                                                   
                                         March 31, 2025                     December 31, 2024               
  Raw materials, parts and supplies      $                     589,000      $                      416,000  
  Finished products                                            480,000                             474,000  
  Total inventories                      $                   1,069,000      $                      890,000  

8. LAWSUIT LIABILITY

Gordon v. Digital Power Corporation

On or about November 21, 2019, the plaintiff William
Gordon filed a complaint against defendant, DPC, alleging wrongful termination and disability discrimination. The arbitration was conducted
during October 2022. Aside from the opening and responding trial briefs, the arbitrator requested additional briefing on two subjects,
undisclosed principal liability, and disclosed principal liability, both of which were submitted. In May 2023 the arbitrator entered a
final award against the Company and in favor of Mr. Gordon in the amount of $1.1 million inclusive of interest, legal fees, administrative
fees and expenses. Interest accrues at 10% per annum.

The Company has recorded a lawsuit liability of
$1.1million for this judgement as of March 31, 2025, and December 31, 2024, in the condensed consolidated balance sheets. Interest expense
related to liability was $7,000for the three months ended March 31, 2025, and $0for the three months ended March 31, 2024, respectively.

9. LEASES

Office and Warehouse Leases and Sublease

The components of net operating lease expenses,
recorded within operating expenses on the Company's condensed consolidated statements of operations for the three months ended March
31, 2025, and 2024, were as follows:

  Schedule of lease cost                                       
                              Three Months Ended               
  Operating lease cost        $                       137,000  

                             Three Months Ended  
                                 March 31, 2024  
 ─────────────────────────────────────────────────
  Operating lease cost                 $162,000  
  Less: Sublease