# EDGAR Filing Document

**Accession Number:** 0001349706
**File Stem:** 0001214659-26-004113
**Filing Date:** 2026-3
**Character Count:** 320731
**Document Hash:** 3627a76b5f3447a88dae8a3756367cac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001214659-26-004113.hdr.sgml**: 20260331

**ACCESSION NUMBER**: 0001214659-26-004113

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 99

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260331

**DATE AS OF CHANGE**: 20260331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TurnOnGreen, Inc.
- **CENTRAL INDEX KEY:** 0001349706
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 205648820
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-52140
- **FILM NUMBER:** 26822572

**BUSINESS ADDRESS:**
- **STREET 1:** 1421 MCCARTHY BLVD.
- **CITY:** MILPITAS
- **STATE:** CA
- **ZIP:** 95035
- **BUSINESS PHONE:** (510) 657-2635

**MAIL ADDRESS:**
- **STREET 1:** 1421 MCCARTHY BLVD.
- **CITY:** MILPITAS
- **STATE:** CA
- **ZIP:** 95035

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IMPERALIS HOLDING CORP.
- **DATE OF NAME CHANGE:** 20210326

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COLOURED (US) INC.
- **DATE OF NAME CHANGE:** 20060112

?xml version='1.0' encoding='ASCII'?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

⌧ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the Fiscal Year Ended December 31, 2025**

or

◻ **TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from _____________ to ________________

Commission file number 000-52140

**TURNONGREEN, INC.**

(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| **Nevada** | **90-1104713** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |

---

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| | | |
|:---|:---|:---|
| **2030 Ringwood Ave., San Jose, CA** | **95035** | **(510) 657-2635** |
| (Address of principal executive offices) | (Zip Code) | (Registrant's telephone number, including area code) |

---

**Securities registered pursuant to Section 12(b) of the Act:** None

**Securities registered pursuant to Section 12(g) of the Act:** Common Stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ◻&nbsp;&nbsp;&nbsp;&nbsp;No ⌧

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ◻&nbsp;&nbsp;&nbsp;&nbsp;No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding year (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻ Accelerated filer ◻ <br> Non-accelerated filer ⌧ Smaller reporting company ⌧ <br> Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ◻

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ◻

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻&nbsp;&nbsp;&nbsp;&nbsp; No ⌧

As of June 30, 2025, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was approximately $987,805 based on the closing sale price, as quoted on the Pink Open Market, of $0.0080 per share. Such a determination should not be deemed an admission that the registrant's directors, officers, or 10% beneficial owners are, in fact, affiliates of the registrant.

There were 183,983,122 shares of common stock outstanding as of March 30, 2026.

**Documents incorporated by reference:** None

**TURNONGREEN, INC.**

**FORM 10-K**

**FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025**

**INDEX**

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| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
| **PART I** |  |  |
| Item 1. | Business | 1 |
| Item 1A. | Risk Factors | 12 |
| Item 1B. | Unresolved Staff Comments | 28 |
| Item 1C. | Cybersecurity | 29 |
| Item 2. | Properties | 29 |
| Item 3. | Legal Proceedings | 29 |
| Item 4. | Mine Safety Disclosures | 30 |
| **PART II** |  |  |
| Item 5. | Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities | 31 |
| Item 6. | Reserved | 31 |
| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 31 |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 35 |
| Item 8. | Financial Statements and Supplementary Data | F-1 – F-24 |
| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 36 |
| Item 9A. | Controls and Procedures | 36 |
| Item 9B. | Other Information | 37 |
| Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 37 |
| **PART III** |  |  |
| Item 10. | Directors, Executive Officers and Corporate Governance | 38 |
| Item 11. | Executive Compensation | 39 |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters | 40 |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence | 41 |
| Item 14. | Principal Accountant Fees and Services | 42 |
| **PART IV** |  |  |
| Item 15. | Exhibits and Financial Statement Schedules. | 43 |
| Item 16. | Form 10-K Summary | 44 |
|  | Signatures | 45 |

---

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Annual Report on Form 10-K (the "Annual Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "expects," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "approximate," "might," "budget," "forecast," "shall," "project," "predict," "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions; uncertainties and other factors may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or our ability to successfully remediate the material weakness in our internal control over financial reporting disclosed in this Annual Report on Form 10-K in an appropriate and timely matter or at all, and the other factors described under "Item 1A. Risk Factors" and elsewhere in this Annual Report on Form 10-K. Our expectations are as of the date this Annual Report is filed, and we do not intend to update any of the forward-looking statements after the date this Annual Report is filed to confirm these statements to actual results, unless required by law.

**RISK FACTOR SUMMARY**

Below is a summary of the principal factors that make an investment in our common stock speculative. This summary does not address all of the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, can be found below under the heading "Risk Factors" and should be carefully considered, together with other information in this Annual Report and our other filings with the Securities and Exchange Commission (the "Commission" or the "SEC"), before making investment decisions regarding our common stock.

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

· Our business model will continue to evolve as we focus on our EV charging operating segment, which will increase the complexity of our business.

· Our growth strategy through acquisitions and partnerships involves a significant degree of risk, and some of the companies that we have identified as acquisition targets or strategic partners may not have a developed business or are experiencing inefficiencies and losses.

· If we fail to anticipate and adequately respond to rapid technological changes in our industry, our business would be materially and adversely affected.

· Our future results will depend on our ability to maintain and expand our existing sales channels and to put our marketing, business development and sales functions in place.

· We depend upon a few major customers for most of our revenues, and the loss of any of these customers, or the substantial reduction in the quantity of products that any of them purchase from us, would significantly reduce our revenues.

· We are heavily dependent on our senior management, and a loss of a member of our senior management team could adversely affect our existing operations and future development.

· Our technology is generally unpatented and others may seek to copy it.

· We rely on charging station manufacturers and other partners, and a loss of any such partner or interruption in the partner's production could have a material adverse effect on our business.

· We are dependent upon our and our contract manufacturers' ability to timely procure electronic components.

· Our future results will depend on our ability to establish, maintain and expand our manufacturers' representative original equipment manufacturer ("OEM") relationships and our other relationships.

· We depend on international operations for a substantial portion of our
manufacturing components and products. These activities are subject to the uncertainties associated with international business operations,
including tariffs, trade barriers and other restrictions.

· We face intense industry competition, price erosion and product obsolescence, which could reduce our revenues and prevent us from generating net income, and many of our competitors are larger and have greater financial and other resources than we do.

· As long as Hyperscale maintains a significant interest in our company, your ability to influence matters requiring shareholder approval will be limited, and our historical financial information as a subsidiary of Hyperscale may not be representative of our results as an independent public company.

· The price of our common stock may have little or no relationship to the historical bid prices of our common stock on the Pink Open Market (Current Information). There is currently only a limited trading market for our common stock.

· Supply chain disruptions, component shortages, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could adversely affect our ability to meet customer's demand, lead to higher costs, and adversely affect our business and results of operations. For example, supply chain challenges related to the and global semiconductor chip shortages have impacted companies worldwide and may have adverse effects on our suppliers and customers and, as a result, our business.

**PART I**

**ITEM 1. BUSINESS**

***Overview***

TurnOnGreen, Inc., a Nevada corporation ("TOGI"), through its wholly owned subsidiaries Digital Power Corporation ("Digital Power") and TOG Technologies Inc. ("TOGT," and together with Digital Power, the "TurnOnGreen"), is an emerging provider of premium power electronic and electric vehicle ("EV") charging solutions. TurnOnGreen designs, develops, manufactures, and sells highly engineered, feature-rich, high-grade power conversion systems and power solutions for mission-critical, life-sustaining, and lifesaving applications across a variety of sectors, particularly those operating in demanding and harsh environments. TurnOnGreen serves a broad range of markets, including defense and aerospace, medical and healthcare, industrial applications, telecommunications, e-Mobility, and OEM solutions. TurnOnGreen's products are highly adaptive, featuring customized firmware meticulously configured to meet the specific requirements and challenges of its customers' applications. Approximately 17% of TurnOnGreen's revenue is generated leveraging its core power technologies to deliver comprehensive EV charging infrastructure and subscription-based charging network management services for residential, fleet, hospitality, workplace, healthcare, municipal, and educational environments including universities and schools.

Digital Power offers a broad range of rugged power solutions for the defense and aerospace market. These solutions feature the ability to withstand harsh environments. For more than 50 years, Digital Power has provided rugged products and custom power solutions designed end-to-end for military and aerospace applications. Digital Power offers a wide variety of units designed to comply with the most demanding United States and international military standards ("MIL-STDs").

In addition, Digital Power provides a comprehensive range of integrated power system solutions that are designed to meet the diverse and precise needs of its customers with the highest levels of efficiency, flexibility and scalability. Digital Power designs develop and manufacture custom power systems to meet performance and/or form-factor requirements that cannot be met with standard power products. These power system solutions are designed to function reliably in harsh environments associated with defense and aerospace applications, while also being utilized for applications ranging from industrial and telecommunications equipment to medical instrumentation. TurnOnGreen believes that Digital Power's power products are highly adaptive and feature digital power management and software configurations that allow them to achieve higher power efficiency to meet the requirements of both its customers and its original equipment manufacturers ("OEMs"). In addition to Digital Power's custom power system solutions, it also provides a wide range of industry-standard power products. These products include their alternating current ("AC") into a stable direct current ("DC") voltage open-frame product series, which TurnOnGreen believes to be among the industry's leading power switchers in terms of power efficiency. The open-frame products are deployed in highly compact form factors and modular power series that support configurable multiple DC outputs. Additionally, Digital Power offers high-power and high-voltage laser power supplies tailored to meet the unique requirements of medical, dental, and industrial pulsed energy systems. Digital Power's expertise also encompasses high-performance and high-power data-center power supplies, semiconductor fabrication equipment power source supplies, desktop power supplies, and a comprehensive range of value-added customized AC/DC and DC/DC ruggedized power supply and system solutions.

Digital Power's power products serve a wide range of applications across several critical industries. In the defense and aerospace industry, typical applications include mobile and ground communications systems, naval power conversion, automated test and simulation equipment for weapon systems, combat and airborne power supplies, radar array power sources, tactical gyro position and navigation systems, and active protection systems for tactical vehicles. In the industrial and telecommunications industry, typical applications include packaging equipment, laboratory and diagnostic equipment, industrial laser drivers, data center computing infrastructure, and turbomachinery control solutions. In the medical and healthcare industry, typical applications include portable oxygen concentrators, patient monitoring systems, pulsed laser drivers for dental and surgical treatments, DNA sequencers, medical beds, and ultrasound systems.

TOGT provides EV drivers and site hosts with convenient, reliable, and high-speed charging solutions. TOGT designs, manufactures, resells, owns, operates, and supplies Level 2 AC and DC fast charging ("DCFC") equipment for residential, commercial, and fleet applications. Its Level 2 charging systems are deployed at single-family homes, multi-family residences, hospitality and healthcare facilities, retail properties, municipalities, schools, workplaces, and fleet depots. TOGT's DCFC systems are designed for high-traffic urban, suburban, corridor, destination, and fleet locations where rapid charging and high utilization are essential. TOGT also offers a charger-as-a-service (CaaS) model in which customers receive charging hardware bundled with access to the TOGI network.

The Company also amended and restated its bylaws on January 11, 2024, to reflect the change in its name. The principal executive offices of the Company are located at 2030 Ringwood Ave., San Jose, California 95131, its telephone number is (510) 657-2635 and its corporate website is www.turnongreen.com.

 ***Our Products and Markets***

*Power System Products and Technology*

<u>Power System Solutions</u>. At Digital Power, we provide a comprehensive range of advanced, integrated power system solutions engineered to meet the diverse and precise requirements of our customers with the highest levels of efficiency, flexibility, and scalability. The core focus of our business is the design, development, and manufacture of custom power systems for mission-critical defense and aerospace applications. These systems are built to operate with exceptional reliability in harsh, high-stress environments, including extreme temperatures, electromagnetic exposure, altitude variation, and rigorous shock and vibration conditions. Our defense-grade products are utilized in a wide variety of platforms and subsystems, including communications, surveillance, guidance, targeting, and unmanned systems.

Beyond defense and aerospace, our power solutions are deployed in demanding industrial, telecommunications, and medical instrumentation applications. Our products incorporate adaptive digital power management and configurable software control, enabling high power density, improved efficiency, and precise output performance to satisfy both end-user needs and OEM specifications.

In addition to custom-engineered defense and industrial systems, Digital Power offers a broad range of industry-standard power products. These include our AC/DC Open Frame series, which we believe to be among the industry's leading high-efficiency power switchers, available in highly compact formats and modular architectures that support configurable multiple DC outputs. We also supply high-power and high-voltage laser power solutions tailored for medical, dental, and industrial pulsed-energy applications, as well as high-performance power products used in data-center infrastructure, semiconductor fabrication equipment, and desktop computing. Our portfolio further includes ruggedized AC/DC and DC/DC conversion systems and value-added engineered solutions for customers requiring highly specialized performance characteristics.

<u>Power Technology for High-Grade Power Products</u>. We offer our feature rich based power rectifiers that support flexible configuration and high-grade design implementation. This includes innovative designs and implementation of digital power management improving power efficiently and customization of the product. It includes digital signal processor controls for the power factor corrector ("PFC") and DC to DC conversing. The advanced power technology used in our products includes synchronous rectifiers, two-phase PFC, power management integrated circuits and features such as hot plug capacity and intelligent current sharing. While some of our customers have special requirements that include a full custom design, other customers may require only certain electrical changes to standard power supply products, such as modified output voltages, unique status and control signals and mechanical repackaging tailored to fit the specific application. We offer a wide range of standard and modified standard products that can be easily integrated with any platform across our diversified market segments.

For example, our board mount converters are ideal for a range of consumer electronics, medical applications and industrial control applications. These AC/DC and DC/DC power supplies range from 10 to 9,000 watts, with operating temperatures from -40 to +85 degrees Celsius and include universal AC input and/or wide range of DC inputs that are widely used by our defense and aerospace customers and for uninterruptible power supplies applications.

<u>Value-Added Services</u>. We also offer a range of AC/DC and DC/DC products that provide value to our customers due to the configuration we provide to fit each customer's specific needs, which often require multiple voltage outputs. These custom products illustrate the benefits and flexibility of our modular approach to offer higher performance, higher power densities, lower costs and faster delivery than many competitive offerings. Our configurable products typically are used in a wide range of distributed power architecture implementations in defense and aerospace electronic systems, industrial and telecommunication applications, as well as medical and healthcare instrumentation and equipment. Such configurable products include our capacitor charger supplies, which support out powers from 50 watts to 9,000 watts, with configurable voltages from 500 volts to 3,000 volts.

*Power System Markets*

We sell our power systems as integrated solutions to our diverse customers for a wide range of applications in the global markets and sectors we serve, including medical and healthcare, defense and aerospace, and industrial and telecommunications. We also sell our products as stand-alone products to our commercial customers and, most recently, we have started to roll out our EV charger products to consumers. Our current commercial customer base consists of approximately 98 companies, which are served through our direct sales groups and our strategic partner channels. During the years ended December 31, 2025, and 2024, approximately 94.05% and 98.5% of our revenues, respectively, were generated from customers located in North America.

<u>Medical and Healthcare</u>. Our power solutions are ideal for healthcare and medical applications that require a high level of reliability and performance due to their quality, output power and high-power density. Our power supplies meet the rigorous medical safety requirements and major industrial safety standards related to such products to major industrial safety standards, including the EN60601-1 safety standard and the 4th Edition EMC compliance requirements, and help medical device and system manufacturers speed compliance testing of their own products. Our qualification testing facilities are also approved by various safety agencies to test and qualify power products to be used in medical devices. We have obtained the medical quality management systems ISO 13485 certification to support rigorous design requirements and high-quality manufacturing of our medical power systems. Our medical power products help OEMs minimize the risk of encountering unexpected development problems outside of their own areas of expertise. The typical applications for our power products in the medical and healthcare industry include portable oxygen concentrators, patient monitoring systems, pulsed lasers drivers for dental and surgical treatment, DNA sequencers, medical beds and ultrasounds. Revenues from the medical and healthcare industry accounted for approximately 3% and 11% of all revenues received from our power supply products for the years ended December 31, 2025, and 2024, respectively.

<u>Defense and Aerospace</u>. We offer a broad range of rugged power solutions for the defense and aerospace market. These solutions feature the ability to withstand harsh environments. For more than 50 years, we have been providing rugged customer off-the-shelf ("COTS") products and custom power solutions designed end-to-end for military and aerospace applications. We offer a wide variety of units designed to comply with the most demanding United States and international MIL-STDs. We believe that our military products meet all relevant military standards in accordance with the Defense Standardization Program Policies and Procedures. This includes specifications related to space, weight, output power, electromagnetic compatibility, power density and multiple output requirements, all of which we meet due to decades of experience held by our engineering teams. Certain of our products that are specifically designed, modified, configured or adapted for military systems are subject to the United States International Traffic in Arms Regulations ("ITAR"), which are administered by the U.S. Department of State. We obtain the required export licenses for any exports subject to ITAR. Our defense manufacturing facilities are compliant with the international Quality Management System standard for the AS&D AS9100.

The typical applications for our power products in the defense and aerospace industry include mobile and ground communications, naval power conversion, automated test and simulation equipment for weapon systems, combat and airborne power supplies, radar arrays power source, tactical gyro position and navigation systems and active protection of tactical vehicles. Revenues from the defense and aerospace industry accounted for approximately 61% and 48% of all revenues received from our power supply products for the years ended December 31, 2025, and 2024, respectively.

<u>Industrial and Telecommunications</u>. We build products for custom and standard applications used in industrial and telecommunication markets and set the standard in flexibility, efficiency and reliability. Our compact, high-density and flexible power supplies and power converters allow optimal performance, boost functionality and decrease costs. Due to the breadth of our experience, our products have proven to easily meet stringent design requirements. Our industrial power solutions are designed to stand up to the extreme temperatures, input surges, vibration and shock found through uses such as industrial automation, material handling, industrial lasers, robotics, agriculture, oil, and gas, mining and outdoor applications. Our technology is designed for superior thermal management, reliability, electromagnetic interference ("EMI") and electromagnetic compatibility ("EMC") specifications and power density, with rugged performance that is typically unavailable in standard power supplies. The typical applications for our power products in the industrial and telecommunications industry include packaging equipment, laboratory and diagnostic equipment, industrial laser drivers, datacenter computing and turbomachinery control solutions. R**e**venues from the industrial and telecommunications industry accounted for approximately 36% and 41% of all revenues received from our power supply products for the years ended December 31, 2025, and 2024, respectively.

*EV Charging Products*

At TOG Technologies we provide EV drivers and site hosts with convenient, reliable, and high-speed charging solutions. TOGT designs, manufactures, resells, owns, operates, and supplies Level 2 AC and DCFC equipment for residential, commercial, and fleet applications. Our Level 2 charging systems are deployed at single-family homes, multi-family residences, hospitality and healthcare facilities, retail properties, municipalities, schools, workplaces, and fleet depots. Our DCFC systems are designed for high-traffic urban, suburban, corridor, destination, and fleet locations, where rapid charging and high utilization are essential.

Leveraging more than 50 years of experience in high-performance power conversion, TOGT develops charging hardware and software solutions that address the expected global expansion of EV infrastructure, and the increasing energy demands of battery-electric vehicles. Our innovative DCFC platforms can deliver an approximately full charge to a 250-mile range EV battery in roughly 35 minutes, depending on vehicle specifications.

We offer a comprehensive portfolio of networked EV charging products, including Level 2 AC chargers supporting the SAE J1772 standard, and DCFC systems compatible with the North American Combined Charging System Type 1 ("CCS1"), the SAE J3400 North America Charging Standard ("NACS"), and the CHArge de MOve ("CHAdeMO") standard used in certain Japanese-manufactured EVs. Our chargers are supported by a cloud-based charging station management system ("CSMS") that operates, monitors, and manages charging infrastructure, enabling remote diagnostics, charging data collection, access control, and payment processing.

We expect demand for EV charging infrastructure to grow as the demand for EV charging infrastructure increases from fleet operators and municipalities in addition to utilities enhance grid capabilities. TOGT intends to generate revenue primarily through sales of networked charging hardware and recurring subscription fees for TOG Network Services, which include charger connectivity, software features, authentication, energy billing, and site-host management tools. Access to the TOG Network is available through each networked commercial charging port, and optional extended-warranty coverage is billed annually. Based on current projections, we anticipate that recurring subscription-based revenue from TOG Network Services and extended warranties will reach parity with one-time commercial charger hardware sales (including EV700, EVP700, EV1100, and EVP1900 models) after approximately five years. TOGT also offers a charger-as-a-service ("CaaS") model in which customers receive hardware bundled with TOG Network access.

With a shared mission to do our part to fight climate change, our team strives to bring to established and emerging markets innovative solutions that provide value for the company and our shareholders. We provide green energy services to homeowners, business partners, and EV drivers, leveraging our highly efficient, flexible, and software-managed technologies to meet their needs for reliable and customized energy saving services. We benefit from newer technologies and by learning from the experience of our competition to offer smarter and better products and services to our markets. During the years ended December 31, 2025, and 2024, approximately 17% and 8%, respectively of our revenues, were generated from the Company's EV charging products, all of which were sold to customers located in North America.

*Power electronics and EV charging products and services renderings:*

 

![](tog32026010k_p4.jpg)

![](tog32026010k_p5.jpg)

***Our Growth Strategies***

We sell our power systems and EV charging solutions through custom, value-added and standard hardware sales, engineering services, recurring network subscriptions, extended warranty offerings, and related services. Our strategy is to continue expanding our core advanced power electronics business while supporting long-term growth through selective expansion of our EV charging products and network services. We intend to optimize our operating model by combining high-performance technology, differentiated engineering, and competitive pricing with customer-focused business models that support recurring revenue streams.

Key elements of our growth strategy include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Expand Power Electronics Capabilities in Core Markets*.** Our primary growth focus is to continue
advancing our custom and integrated power electronic solutions across defense, aerospace, medical, industrial, telecommunications, and
other mission-critical markets. We plan to invest in new product architectures, higher-density power conversion, software-managed controls,
ruggedized electronics, and advanced form-factor designs to meet the evolving requirements of these customers. Our goal is to deepen our
role as a trusted supplier of high-reliability power systems for harsh and demanding operating environments, including programs requiring
long service life, precision performance, and military-grade durability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Increase Market Penetration with Existing and New Customers.*** We intend to grow revenue within
our established customer base by expanding power system deployment across additional platforms, applications, and programs. We also expect
new opportunities through emerging defense, medical, and industrial projects that require customized solutions, higher efficiency, and
improved power density. Our direct sales teams and strategic partner channels will continue to pursue long-term supply relationships with
OEMs, defense contractors, and system integrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Strengthen Recurring Revenue Opportunities.*** As we expand our installed base of custom and
integrated power systems, we plan to increase recurring revenues through replacement units, system upgrades, firmware updates, value-added
engineering support, and long-term service agreements. We believe our technology roadmap and long-standing customer relationships create
opportunities for multi-year supply and support arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Develop and Expand Strategic Partnerships.*** We intend to continue providing reliable, feature-rich
power electronic solutions to our existing customers while developing and offering new advanced power products to address evolving market
needs. In parallel, we will continue forming strategic partnerships that support deployment of our EV charging infrastructure and expand
our market reach. Our agreements span a broad range of sectors, including construction and infrastructure service providers, large commercial
fleet operators, hospitality networks, national accounts integrators, regional transportation organizations, municipalities, engineering
and consulting firms, solar energy installers, universities, public school districts, car rental operators, and automotive dealerships.
These partnerships support site development, product installation, and broader adoption of our charging hardware and network services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Continue to Expand Our EV Charging Products and Network Services.*** While our core focus remains
power electronics, we intend to continue scaling our EV charging hardware and software offerings to meet growing e-Mobility demand. We
plan to expand our portfolio of Level 2 chargers and DCFC systems, supported by our cloud-based management platform, TOG Network Services.
This includes charger connectivity, authentication, billing, diagnostics, energy management, and fleet solutions. We may also deploy a
charger-as-a-service ("CaaS") model that bundles hardware with subscription-based network access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Cooperative and Turnkey Site-Host Programs.*** For select EV charging locations, we may partner
directly with commercial property owners under a cooperative revenue-sharing model. In these cases, we fund, install, and operate the
charging systems while retaining a majority of the revenue generated from charging sessions for a contracted period. We seek to offset
capital costs through rebates, grant programs, sale of carbon credits, and energy revenue where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Strategic Acquisitions and Investments.*** We may pursue acquisitions or investments that expand
our technical capabilities, customer base, geographic reach, or product offerings. Potential targets may include power electronics businesses,
technology assets, infrastructure partners, or software platforms that align with our core competencies and growth objectives.

***Sales and Markets***

We sell and market our products through a variety of sales channels. Our direct sales groups are dedicated to developing commercial and fleet sales in well-defined customer segments in specific geographic regions. Our channel partners, which include independent manufacturer representatives and distributors, focus on e-commerce and business-to-business sales. Our sales and marketing efforts target specific verticals and territories that we believe will have the highest demand for EV charging solutions including EV charging hardware, engineering planning, and charging management solutions over the forthcoming five-to-ten-year period. Our segment-based sales strategy focuses on regional priorities where demand is highest, strategic partnerships in commercial real estate development and business development projects that provide ongoing revenue to EV owners.

We have an internal marketing team that has built a digital and social media marketing program to increase brand awareness, product promotion and product sales. We have a variety of digital assets that can be easily shared across multiple platforms to help us scale sales quickly. We plan to market directly to consumers through our software applications, e-commerce platforms and digital advertising campaigns. We will also work across channels to help our distribution partners market our products and services by utilizing their ecommerce and social platforms.

Revenues of approximately $6.0 million and $4.5 million or 83% and 92%, of total revenues were attributable to power electronics products under various OEM agreements for the years ended December 31, 2025, and 2024, respectively. Three customers accounted for more than 10% of our total revenues for the year ended 2025 and one customer accounted for more than 10% for the year ended 2024.

***Manufacturing and Supplies***

Consistent with our strategy of focusing on custom designed, high-grade, flexible and configurable products to support our diverse applications in the markets we serve, we aim to maintain a high degree of flexibility in our manufacturing through the use of strategically focused contract manufacturer partners. These partnerships give us access to new markets and benefit our production processes, which are designed for high-mix and fast-line-charge and take advantage of technologies such as electronically controlled operating instructions, automated pick and place, automatic optical inspection and automatic testing. To achieve our high-quality and low-cost manufacturing goals with labor-intensive products, we have entered into strategic manufacturing agreements with certain contract manufacturers in the United States and Asia.

We strive to bring low cost and fast delivery production to our customers in a way that limits the impact on the natural environment. Our Asia manufacturing capabilities have provided the opportunity to not only sell but also manufacture high quality, energy efficient power systems for our global customers, with recognized standards, that we control and audit. We demonstrate through our manufacturing partners our attitude to the environment by holding our partners accountable for certain environmental-friendly standards for their manufacturing facilities. We are also continually improving our internal processes and monitoring the processes of our contract manufacturers to ensure the highest quality and consistent manufacturing of our power product solutions so that our customers can use our products right out of the box. Customer specific testing services are offered with custom designed test standards to simulate operation within our customer applications.

We believe that we are in compliance with international safety standards, which is critical for every application. By obtaining the ISO 9001 quality management system, we seek to offer total quality at every stage, from in-house design to manufacturing facilities around the world. Our contract manufacturing partners are also in compliance with such international safety standards and maintain the same ISO 9001 quality management system, as well as the ISO 14001 environmental management system, the ISO 13485 medical management system and the AS&D AS9100 quality management system. Such standards are the cornerstones of our integrated management system to drive continuous improvement of our product quality.

***Product Design and Development***

Our product design and development efforts are primarily directed toward developing new products in conjunction with our strategy of continuing to introduce advanced product solutions for the markets we serve and to expand our business into emerging markets based on our disruptive power technology.

Our engineering groups are strategically located around the world to facilitate communication with, and access to, our worldwide customer base and manufacturing facilities. This collaborative approach facilitates partnerships with customers for technical development efforts and enables us to develop technological products that support complex and evolving markets such as eMobility, cloud computing, military and aerospace. On occasion, we execute non-disclosure agreements with customers to help develop proprietary, next generation products designed for rapid deployment. We also sponsor memberships in technical organizations that allow our engineers to participate in developing standards for emerging technologies. We believe that this participation is critical in establishing credibility and a reputable level of expertise in the marketplace, as well as to position us among industry leaders in new product development.

Our internal product design and development programs have also been augmented by third party development programs with engineering partners to achieve the best technological and product design results for specific customer product applications. In June 2021, we entered into a partnership agreement with ChargeLab, Inc. to design, build and publish cross-platform mobile experiences for residential and commercial end-users of our EV chargers. Under this agreement, ChargeLab will support us in the pre-production stage of our EV charging products by performing testing sessions to ensure and validate solid firmware compliance with the Open Charge Point Protocol.

When required, we modify standard products to meet specific customer requirements. Such modifications include, but are not limited to, redesigning commercial products to meet MIL-STD requirements for military applications based on COTS products and to meet other customized product requirements. We continually seek to improve our product power density, adaptability and efficiency, while attempting to anticipate changing market demands for increased functionality, such as PFC controlled digital signal processors, customized firmware and improved Electromagnetic Interference filtering("EMI") . We also continue to attempt to differentiate all of our products from commodity-type products by enhancing, modifying and customizing our existing product portfolio through our engineering integrating laboratory located in California.

The development of our new custom and emerging product solutions is driven by our ability to provide our customers with advanced technologies that meet their product needs within a short turnaround time at a competitive price point. We believe that we are successfully executing our strategic account focus, as evidenced by the award of second and third generation product development contracts from some of our customers. In addition, our standard contract for custom power solutions includes a multi-year high-volume production forecast that could allow us to secure long-term production guarantees while providing an environment that promotes the development of our IP portfolio.

Product design and development expenditures were approximately $0.4 million for the years ended December 31, 2025, and 2024.

***Key Design Consideration for Safety Compliance***

TOG's EVSE product line (product) complies with several safety requirements and regulations to ensure electric safety and prevent hazardous accidents, in which safety requirements for the EV supply equipment and the EV battery. To facilitate the safety requirements in our EVSE product line, key requirements of electrical safety are presented. These crucial design rules implemented in our products including functional requirements, constructional requirements, personal protection against electric shock, insulation coordination, electromagnetic compatibility and charging control were implemented to fulfil the electrical safety completely.

To meet national and international safety standards requirements, we use step design methodology including product design review, product testing, approval, certificate, and listing. To obtain the safety certification for our EVSE product, we designed the product to be compliant with the safety requirements and standards for North America.

Electric shock fire, and personal injury hazards are key safety considerations for all EV charging systems and are addressed by applicable industry standards. TOG designs its EVSE products in accordance with these standards to mitigate such risks. To assure the safety of our charging equipment, we comply with applicable regulatory and industry standards and have implemented crucial design requirements across our EVSE products. These requirements address, among other things, the construction of exterior and interior components, protection against electric shock, insulation coordination, electromagnetic compatibility, charging control systems.

To ensure the safety of our charging equipment, we comply with applicable regulatory and industry standards and have implemented critical design requirements across our EVSE products. These requirements address, among other things, the construction of exterior and interior components, protection against electric shock, insulation coordination, electromagnetic compatibility, and charging control systems.

***Competitive Strengths and Competition***

We offer highly engineered, feature-rich, high-grade power conversion and power system solutions on a global scale. We believe that we differentiate ourselves from our competition and have been able to grow our business as a result of the following key competitive strengths:

· *Custom-Made Products*. We have designed our base model power system platform so that it can be quickly and economically adapted to the specific power needs of any hosting platform or OEM, which minimizes the time between customer consultation and delivery of the products.

· *Specialized Technical Expertise*. We benefit from more than 50 years of expertise in power technologies and energy management. This has given us a wealth of experience in designing and manufacturing AC/DC power conversion solutions and positions us to benefit from the ongoing transformation towards eMobility with smarter and greener EV charging infrastructure solutions.

 

· *Diverse Product and Customer Base and Revenue Streams*. We have a diverse power supply product and customer base. With our growing EV charging solution segment, we will receive additional revenue streams through a range of different sources such as energy sales, hardware sales, network management services, advertising sales and energy services. We will also offer customers a variety of business model options, particularly with respect to our EV charging solution installation and maintenance services.

· *Minimal Non-Recurring Engineering Expenses*. Our ability to efficiently adapt our base-model power system platforms to develop customized products for specific customer requirements generally results in limited non-recurring engineering ("NRE") costs. We typically charge customers a modest NRE fee to partially offset development costs; however, our business model is primarily focused on generating revenue from the ongoing manufacture and sale of the products we develop, rather than from NRE activities.

 

· *Emphasis on Product Design Development Efforts*. We have strategically deployed engineering groups around the world to facilitate communication with and access to our global customer base and manufacturing facilities. This enables us to develop cutting-edge products to support highly complex and evolving markets such as eMobility, cloud computing, military and aerospace.

We compete in two operating segments, power solutions and EV charging solutions.

**Power Electronic Segment.** Our competition in the power solutions industry includes many companies located throughout the world. Many of our competitors, including Bel Fuse, Artesyn Embedded Technologies, TDK-Lambda, Delta Electronics, Murata and Mean-Well Power Supplies, have greater fiscal and marketing resources and a more expansive geographic presence than we do. We also face competition from current and prospective customers who may decide to internally design, and manufacture power supplies needed for their products. Further, certain larger OEMs tend to contract only with larger power supply manufacturers. We believe that our power system solutions and advanced technology are superior to our competitors' power supplies based in part on our use of the latest power technology processing and controls, which make our power supplies highly customized and efficient. In addition, we believe the power-to-volume ratio makes our power solutions more compact compared to what is offered by our competitors and is suitable for custom infrastructures to meet our customers' requirements.

Notably, the flexibility of our power system products provides us with another advantage by employing an adjustable power range and a selectable number of output product design platforms. We believe that we are in a competitive position with our targeted customers that need a high-quality, compact product that can be readily modified to meet specific requirements. We have also designed the base model power system platform so that it can be quickly and economically modified and adapted to the specific power needs of any hosting platform or OEM. This emphasis on flexibility has allowed us to provide samples of modified power systems to OEM customers only a few days after initial consultation. This is an important capability given the emphasis placed by OEMs on "time to market." It also results in very low NRE expenses, which allow us generally not to charge our OEM customers for NRE expenses related to tailoring a power system to a customer's specific requirements. We believe that this approach gives us an additional advantage over our competitors, many of which charge their customers for NRE expenses.

**Electrical Vehicle Supply Equipment and Network Segment.** Our EVSE business segment competes directly with several companies in the North American market. We expect to face competition across multiple verticals in the future as demand for EVSE increases. The EV charging market has grown significantly over the past five years and can be divided into the three following macro segments:

 

· Public open network Level 2 and DCFC charging;

· Commercial fleet closed network charging; and

· Residential single and multi-family home charging.

Growth in the North American market has primarily been driven by a subset of companies including Tesla, ChargePoint, Blink Charging, EVGO, Electrify America, and Sema Connect. These companies primarily focus on the growth of public open network charging solutions but are increasingly diversifying into commercial and residential closed network sales. The EVSE competitive market is fragmented and not necessarily aligned with the EV needs of tomorrow. As EVSE charging standards are established and the market is consolidated, we expect that the competitive landscape will favor our approach to market segmentation, strategic partnerships and product development. EV driver charging behavior indicates that residential and commercial closed network charging are the areas with the most potential for growth, as an estimated of 85% of EV drivers charge at home or at work.

The competitive landscape for closed network residential EVSE sales can be found in the ecommerce segment, where there are several product and class competitors that vary in size and market reach. This segment is primarily driven by purchasing decisions that are dictated by price, consumer reviews and product features. Competitors will likely consolidate in the future to establish larger open charging networks, cooperative relationships with OEMs, and other EVSE product-based companies. As new alliances emerge in the market, EVSE manufactures that have greater market share, access to more dynamic and user-friendly software and hardware will put us at a competitive disadvantage. If we are slow to adapt to changing market conditions and EV innovations our growth will be limited or curtailed, which would negatively affect our ability to scale business and operations.

***Intellectual Property and Proprietary Technology***

We rely on a combination of trade secrets, industry expertise, confidential procedures and contractual provisions to protect our intellectual property. Given the continuous updates and revisions that we are making to our products, we believe that the cost of obtaining patents would outweigh the benefits of doing so. However, we may seek to obtain patents in the future as we continue to develop unique core technologies.

We do not patent technology developed by us and we cannot be sure that others will not independently develop the same or similar technology or otherwise obtain access to our technology. To protect our rights in these areas, we require all employees, consultants and others who work for or with us to enter into confidentiality agreements. We cannot be sure, however, that these agreements will provide meaningful protection for our trade secrets, know-how or other information in the event of any unauthorized use, misappropriation or disclosure.

We have a registered our trademarks with the United States Patent and Trademark Office for our brand name "TURNONGREEN" and for our brand names "DP Digital Power" "DP Digital Power Flexible Power Solutions" among some other trademarks names which we also registered with the World Intellectual Property Organization (WIPO) – Madrid System.

Currently we are not planning to apply for a protected patent for some of the products we have developed for EV charging supply equipment. However, we will maintain the IP of the proprietary products and solutions we developed for the power electronic and eMobility market and some other adjacent markets. We periodically monitor for infringements on our intellectual property and have never encountered such an infringement. We do not believe that our lack of patents is material to our ongoing business.

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***Compliance with Material Government (Including Environmental) Regulations***

Our businesses are heavily regulated in many of the markets in which it operates. TurnOnGreen develop and supplies power electronics products primarily used for power conversion. As a result, TurnOnGreen must comply with numerous standards governing electronic safety designed to protect the health of humans and animals. TurnOnGreen serves diverse markets including automotive, defense and aerospace, medical and healthcare, industrial and telecommunications, each of which is subject to its own set safety regulations and standards.

*Environmental Matters*. We are subject to various federal, state, local, and non-U.S. laws and regulations relating to environmental protection, including those governing the discharge, treatment, storage, disposal, and remediation of hazardous substances and wastes. TurnOnGreen continually assesses its compliance status and environmental management practices to ensure its operations comply with applicable environmental laws and regulations. Investigation, remediation, and operation and maintenance costs associated with environmental compliance and site management are a normal and recurring part of our operations.

*Government Contracts*. The U.S. Government, and other governments, may terminate any of our government contracts at their convenience, or for default based on a failure to meet specified performance requirements. If any of our U.S. Government or foreign government contracts were terminated for convenience, we would generally be entitled to receive payment for work completed and allowable termination or cancellation costs. If a government contract were terminated for breach or default, the U.S. Government or foreign government would generally pay only for work that has been accepted and may require us to pay the difference between the original contract price and the cost to re-procure the contract items, net of the work accepted from the original contract. The U.S. Government or foreign government may also hold us liable for damages resulting from the default.

*Medical Device Power Supplies*. Our medical power supplies must incorporate one or more means of protection ("MOP") to prevent electrical shock. A MOP may include safety insulation, protective earth, defined creepage distance, air gaps (clearance), or other protective impedances. These protections may be used in various combinations such that if one protection fails, another remains in place. Our medical power supplies must comply with standards that distinguish between operators and patients, resulting in classifications known as "means of operator protection" and "means of patient protection." Patient protection requirements are more stringent because patients may be physically connected to equipment through an applied part and may be unconscious when a fault occurs.

*Non-U.S. Sales*. Our non-U.S. sales are subject to both U.S. and non-U.S. governmental regulations and procurement policies, including regulations relating to import and export controls, tariffs, foreign investment, exchange controls, anti-corruption laws, and the repatriation of earnings. Non-U.S. sales are also subject to currency, political, and economic risks.

 *Other Compliance Matters.* In addition, we are subject to the local, state, national, and international laws and regulations of the jurisdictions in which we operate that affect companies generally, including those governing commerce, intellectual property, trade, health and safety, contracts, privacy and communications, consumer protection, web services, taxation, corporate governance, and securities laws. These laws and regulations may change over time. Unfavorable changes in existing or new laws and regulations could increase our cost of doing business and impede our growth.

***Human Capital Resources***

We are committed to attracting and retaining the brightest and best talent, so investing in human capital is critical to our success. The employee traits we value include industriousness, intellectual curiosity, growth mindset and deeply caring about the quality of work. The human capital measures and objectives that we focus on in managing our business include employee safety, talent acquisition and retention, employee engagement, development and training, diversity and inclusion, and compensation and pay equity. None of our employees is represented by a collective bargaining unit or is a party to a collective bargaining agreement. We believe that our relationship with our employees is good.

The following description provides an overall view of our Company.

*Employee Profile*

 

As of December 31, 2025, we have approximately eighteen full-time employees and one part-time employee, of whom two were in engineering, five in production, six in customer support, sales and marketing and six in general and administrative. Our employees are not covered by any collective bargaining agreements. We consider relations with our employees to be good.

As of December 31, 2025, approximately 22% of our current workforce is female, 78% male, and our average tenure is 9.7 years, an increase of 5% from an average tenure of 9.2 years as of December 31, 2024.

We believe we materially comply with all applicable state, local and international laws governing nondiscrimination in employment in every location in which we operate. All applicants and employees are treated with the same high level of respect regardless of their gender, ethnicity, religion, national origin, age, marital status, political affiliation, sexual orientation, gender identity, disability or protected veteran status.

*Pay Equity*

 

Our employee compensation strategy supports three primary objectives: attract and retain the best team members; reflect and reinforce our most important values; and align team member interests with stockholder interests in building enduring value. We believe people should be paid for what they do and how they do it, regardless of their gender, race or other personal characteristics. To deliver on that commitment, we benchmark and set pay ranges based on market data and consider factors such as an employee's role and experience, the location of their job, and their performance. We also regularly review our compensation practices, both in terms of our overall workforce and individual employees, to ensure our pay is fair and equitable.

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*Total Rewards*

 

As part of our compensation philosophy, we believe that we must offer and maintain market competitive total rewards programs for our employees in order to attract and retain superior talent. In addition to healthy base wages, additional programs include annual bonus opportunities, healthcare and insurance benefits, paid time off, family leave, family care resources and flexible work schedules. We have established a Company matched 401(k) plan.

 

*Health and Safety*

 

The success of our business is fundamentally connected to the well-being of our people. Accordingly, we are committed to the health, safety and wellness of our employees. We provide our employees and their families with access to a variety of flexible and convenient health and welfare programs, including benefits that support their physical and mental health by providing tools and resources to help them improve or maintain their health status; and that offer choice where possible so they can customize their benefits to meet their needs and the needs of their families.

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***Backlog***

As of December 31, 2025, and December 31, 2024, our backlog was approximately $6.5 million and $6.1 million, respectively. Due to the nature of our manufacturing process and customer base, we purchase and ship products to our customers without experiencing a significant backlog and recognize revenue at a point in time when control of goods are transferred.

 **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.

**<u>Risks Related to the Company and Its Financial Condition</u>**

**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, 2025, we had cash of $0.1 million and negative working capital of $8.2 million. We have incurred recurring losses, anticipated continuing losses, and reported losses available to common shareholders for the years ended December 31, 2025, and December 31, 2024, of $2.1 million and $4.0 million, respectively. In the past, we have financed our operations principally through investment by Hyperscale, our parent company; however, there can be no assurance that Hyperscale will continue to support us. 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 unable to sell our products at acceptable prices relative to our costs, or if we fail to develop and introduce, on a timely basis, new products from which we can derive additional revenues, our financial results will suffer. These factors raise substantial doubt regarding the Company's ability to continue as a going concern for the 12 months following the issuance of the financial statements included within this Annual Report.

**Our business model will continue to evolve as we focus on our EV charging operating segment, which will increase the complexity of our business.**

Our business model has evolved in the past and will continue to do so as we focus on our EV charging operating segment. In prior years we have added additional types of services and product offerings and in some cases, we have modified or discontinued those services and product offerings. We intend to continue to try to offer additional types of products or services, including with respect to our EV charging products and services, and we do not know whether any of them will be successful. From time to time, we have also modified aspects of our business model relating to our product mix. We do not know whether these or any other modifications will be successful. The additions and modifications to our business have increased the complexity of our business and placed significant strain on our management, personnel, operations, systems, technical performance, financial resources, and internal financial control and reporting functions. Future additions to or modifications of our business are likely to have similar effects. Further, any new business or website we launch that is not favorably received by the market could damage our reputation or our brand. The occurrence of any of the foregoing could have a material adverse effect on our business.

**We will need, but may be unable to obtain, funding on satisfactory terms, or at all; any financing we do obtain would dilute our shareholders and investors and could also impose burdensome financial restrictions on our business.**

While we have historically relied upon cash from financing activities, we hope to generate sufficient revenues from operations to fund all of the cash requirements we need to support our business. However, it is extremely unlikely that we will be able to generate any significant cash from our operating activities in the foreseeable future. Future financings may not be available on a timely basis, in sufficient amounts or on terms acceptable to us, if at all. Any debt financing or other financing of securities senior to our common stock will likely include financial and other covenants that will restrict our flexibility. Any failure to comply with these covenants may cause an event of default and acceleration of the obligation to pay the debt or dividend payments if the funds we raise arise from the sale of preferred equity, which would have a material adverse effect on our business, prospects, financial condition and results of operations and we could lose our existing sources of funding and impair our ability to secure new sources of funding. You should not assume that Hyperscale will support us financially in the future. There can be no assurance that we will be able to generate any further investor interest in our securities or other types of funding, in which case you would likely lose the entirety of the value of your shares.

**Our acquisition growth strategy is subject to a significant degree of risk.**

Our growth strategy through acquisitions involves a significant degree of risk. Some of the companies that we have identified as acquisition targets may not have a developed business or are experiencing inefficiencies and incur losses. Therefore, we may lose our investment assuming we are able to make one, in the event that these companies' businesses do not develop as planned or that they are unable to achieve the anticipated cost efficiencies or reduction of losses.

**If we make any acquisitions, they may disrupt or have a negative impact on our business.**

Whenever we make acquisitions, we could have difficulty integrating the acquired companies' personnel and operations with our own. In addition, the key personnel of the acquired business may not be willing to work for us. We cannot predict the effect expansion may have on our core business. Regardless of whether we are successful in making an acquisition, the negotiations could disrupt our ongoing business, distract our management and employees and increase our expenses. In addition to the risks described above, acquisitions are accompanied by several inherent risks, including, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The possibility that senior management and/or management of future acquired companies terminate their
employment prior to or shortly following our completion of integration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· difficulty of integrating acquired products, services or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· integration of new employees and management into our culture while maintaining focus on operating efficiently
and providing consistent, high-quality goods and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· potential disruption of the ongoing businesses and distraction of our management and the management of
acquired companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· unanticipated issues with transferring customer relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· complexity associated with managing our combined company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· difficulty of incorporating acquired rights or products into our existing business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· difficulties in disposing of the excess or idle facilities of an acquired company or business and expenses
in maintaining such facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· difficulties in maintaining uniform standards, controls, procedures and policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· potential impairment of relationships with employees and customers as a result of any integration of new
management personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· potential inability or failure to achieve additional sales and enhance our customer base through cross-marketing
of the products to new and existing customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· effect of any government regulations which relate to the business acquired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· potential unknown liabilities associated with acquired businesses or product lines, or the need to spend
significant amounts to retool, reposition or modify the marketing and sales of acquired products or the defense of any litigation, whether
or not successful, resulting from actions of the acquired company prior to our acquisition.

Our business could be severely impaired if and to the extent that we are unsuccessful in addressing any of these risks or other problems encountered in connection with any acquisition, many of which cannot be presently identified. If we fail to satisfactorily address them, these risks and problems could disrupt our ongoing business, distract our management and employees, increase our expenses and adversely affect our results of operations.

**Our business and operations are growing, and if we fail to effectively manage our growth, our business and operating results could be harmed**.

We have experienced, and may continue to experience, growth in our operations. This has placed, and may continue to place, significant demands on our management, operational and financial infrastructure. If we do not manage our growth effectively, the quality of our products and services could suffer, which could negatively affect our operating results. To effectively manage our growth, we must continue to improve our operational, financial and management controls and reporting systems and procedures. These systems improvements may require significant capital expenditures and management resources. Failure to implement these improvements could hurt our ability to manage our growth and our financial position.

**There can be no assurance of successful expansion of operations.**

Our increase in the scope and scale of our operations, including the hiring of additional personnel, has resulted in substantially higher operating expenses, and we expect our operating expenses to continue to increase. Expansion of our operations may place significant demands on our management, financial resources, and internal systems. Our ability to manage anticipated future growth will depend on the expansion of its accounting and internal management systems and the implementation and improvement of systems, procedures, and controls. We cannot assure you that significant problems will not arise in these areas. Failure to expand and improve these systems, procedures, and controls efficiently and at a pace consistent with our business growth could have a material adverse effect on our business, financial condition, and results of operations. Additionally, we cannot assure you that our efforts to expand marketing, sales, manufacturing, and customer support will generate additional sales or profitability in future periods.

**We may be unable to successfully expand our production capacity, which could result in material delays, quality issues, increased costs and loss of business opportunities, which may negatively impact our product margins and profitability**.

Part of our future growth strategy is to increase our production capacity to meet increasing demand for our goods. Assuming we obtain sufficient funding to increase our production capacity, any projects to increase such capacity may not be constructed on the anticipated timetable or within budget. We may also experience quality control issues as we implement any production upgrades. Any material delay in completing these projects, or any substantial cost increases or quality issues in connection with these projects could materially delay our ability to bring our products to market and adversely affect our business, reduce our revenue, income and available cash, all of which could harm our financial condition.

**If we fail to anticipate and adequately respond to rapid technological changes in our industry, including evolving industry-wide standards, in a timely and cost-effective manner, our business, financial condition and results of operations would be materially and adversely affected.** 

The markets in which we operate are characterized by technological changes. Such changes, including evolving industry standards, changes in customer requirements and new product introductions and enhancements, could render our products obsolete. Accordingly, we are required to constantly monitor and anticipate technological changes in our industry and develop new product offerings and technologies or adapt or modify our existing offerings and technologies to keep pace with technological advances in our industry and remain competitive.

Our ability to implement our business strategy and continue to grow our revenues will depend on a number of factors, including our continuing ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· identify emerging technological trends in our current and target markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· identify additional uses for our existing technology to address customer needs in our current and future
markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· enhance our offerings by adding innovative features that differentiate our offerings from those of our
competitors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· design, develop, manufacture, assemble, test, market and support new products and enhancements in a timely
and cost-effective manner.

We believe that, to remain competitive in the future, we will need to continue to invest significant financial resources in developing new offerings and technologies or to adapt or modify our existing offerings and technologies, including through internal product design and development, strategic acquisitions and joint ventures or other arrangements. However, these efforts may be more costly than we anticipate and there can be no assurance that they will be successful.

To the extent our customers adopt such new technology in place of our products, the sales of our products may be adversely affected. Such competition may also increase pricing pressure for our products and adversely affect the revenues from such products.

**Our future success depends upon our ability to develop, and market differentiated, leading-edge power conversion products for larger customers as well as off-grid power generation and distribution technologies, potentially contributing to lengthy product development and sales cycles that may result in significant expenditures before revenues are generated.**

The power system industry and the industries in which many of our customers operate are characterized by intense competition, rapid technological change, quickened product obsolescence, and price erosion for mature products, each of which could have an adverse effect on our results of operations. The development of new, innovative products is often a complex, time-consuming and costly process involving significant investment in research and development, with no assurance of return on investment. Although we have introduced many products over recent years, there can be no assurance we will be able to continue to develop and introduce new and improved products and power system concepts in a timely or efficient manner. Similarly, there can be no assurance that recently introduced or to be developed products will achieve customer acceptance.

Our future success depends substantially upon customer acceptance of our innovative products and services. As we have been in the early stages of market penetration for our EVSE infrastructure and eMobility service, we have experienced lengthy periods during which we have focused our product development efforts on the specific requirements of a limited number of large customers, followed by further periods of delay before meaningful purchase orders are received. As a result, we may incur significant product development expenses, as well as significant sales and marketing expenses, before we generate the related revenues for these products.

We cannot offer any assurance that the markets we currently serve will grow in the future, our power products, including EVSE infrastructure and services, will meet respective market requirements, or we can maintain adequate gross margins or operating profits in these markets.

**Our future results will depend on our ability to maintain and expand our existing sales channels and to build out our marketing, business development and sales functions.**

To grow our business, we must add new customers for our products in addition to retaining and increasing sales to our current customers. Currently, we have a limited sales force focused on establishing relationships with customers that we expect to expand over time. We have historically relied on key executives to drive growth through return business with existing customers. Building out marketing, business development and sales functions in all operating subsidiaries is critical to drive significant growth in line with our strategic plans. We plan to contract for marketing services to improve our websites, manage public relations and optimize our social media presence. Failure to recruit and retain the business development and sales personnel to execute on outreach and capture of new business, or the failure of those new hires or marketing services to perform as expected, will limit our ability to achieve our growth targets.

**The sale of our products is dependent upon our ability to satisfy the proprietary requirements of our customers.**

We depend upon a relatively narrow range of products for the majority of our revenue. Our success in marketing our products is dependent upon their continued acceptance by our customers. In some cases, our customers require that our products meet their own proprietary requirements. If we are unable to satisfy such requirements, or forecast and adapt to changes in such requirements, our business could be materially harmed.

**We depend upon a few major customers for a majority of our revenues, and the loss of any of these customers, or the substantial reduction in the quantity of products that they purchase from us, would significantly reduce our revenues.**

A relatively small number of commercial customers and OEM partners account for a substantial portion of our revenue. Our operating results and projections are therefore dependent on our performance under commercial agreements with customers in the defense and aerospace, medical and healthcare, industrial, and telecommunications sectors. We expect that a majority of our revenue, excluding our eMobility market, will continue to be derived from a concentrated group of customers and OEM partners. In addition, we do not expect a significant portion of our near-term revenue to be generated from our eMobility market. As a result, our business remains subject to risks associated with customer concentration, including the loss of, or reduction in demand from, any of these key customers or partners, as well as risks related to the industries and markets in which they operate. Furthermore, our growth strategy depends, in part, on our ability to diversify and expand our customer and OEM partner base. If we are unable to attract a broader range of customers and partners, our business, results of operations, and financial condition could be adversely affected.

If our major OEM customers reduce or cancel their orders or scale back their operations, our revenues could be significantly reduced. In addition, shifts in the capital spending priorities of certain of these customers toward new network elements have resulted, and may continue to result, in reduced demand for our products, which could have a material adverse effect on our business and results of operations. If the financial condition of one or more of our major customers deteriorates, or if they experience difficulty obtaining financing or investment capital, our revenues could decline substantially. Because we are dependent on the electronic equipment industry, our business is also subject to the impact of general economic conditions affecting that industry.

Substantially all of our customers operate in the electronic equipment industry, which is characterized by rapid technological change, product obsolescence, and significant fluctuations in demand. This industry is also highly competitive and subject to volatility. OEMs serving this industry face ongoing pressure to improve product performance while reducing costs. These pressures are often passed on to suppliers, including us, resulting in demands for enhanced product performance and lower pricing. Such demands may adversely affect our ability to compete effectively in certain markets and may negatively impact our gross margins.

**We anticipate growing international sales for a portion of our revenues, for which there can be no assurance.**

Sales to customers outside of North America accounted for 6%, and 2% of revenues for the years ended December 31, 2025, and 2024, respectively, and we expect that international sales will represent an increasing portion of our total revenues. International sales are subject to the risks of international business operations as described above, as well as generally longer payment cycles, greater difficulty collecting accounts receivable and currency restrictions.

**Our backlog is subject to reduction and cancellation and unavailability of raw materials used in our products, which could negatively impact our revenues and results of operations.**

Backlog represents products or services that our customers have committed by contract to purchase from us. Many of the orders that comprise our backlog may be canceled by our customers, and we cannot be certain that the amount of our backlog does not exceed the level of orders that will ultimately be delivered. Moreover, cancellations of purchase orders or reductions of product quantities in existing contracts could substantially and materially reduce backlog and, consequently, future revenues. Our failure to replace orders for canceled backlog or replace decreased backlog could negatively impact our revenues and results of operations. Further, disruption in the supply chain of electronic components and material parts used as raw materials in our products may affect our ability to manufacture products which could substantially reduce backlog.

**Although we depend on sales of our legacy products for a meaningful portion of our revenues, these products are mature, and their sales will decline.**

A relatively large portion of our sales have historically been attributable to our legacy products. We expect that these products may continue to account for a meaningful percentage of our revenues for the foreseeable future. However, these sales are declining. Although we are unable to predict future prices for our legacy products, we expect that prices for these products will continue to be subject to significant downward pressure in certain markets for the reasons described above. Accordingly, our ability to maintain or increase revenues will be dependent on our ability to expand our customer base, increase unit sales volumes of these products and successfully, develop, introduce, and sell new products such as custom design and value-added products. We cannot assure you that we will be able to expand our customer base, increase unit sales volumes of existing products or develop, introduce and/or sell new products.

**We are heavily dependent on our senior management, and a loss of a member of our senior management team could cause our stock price to suffer**.

If we lose the services of Amos Kohn, our Chief Executive Officer and Chief Financial Officer, Marcus Charuvastra, our President and/or certain key employees, we may not be able to find appropriate replacements on a timely basis, and our business could be adversely affected. Our existing operations and continued future development depend to a significant extent upon the performance and active participation of these individuals and certain key employees. We may enter into employment agreements new employment agreement with Mr. Kohn, Mr. Charuvastra and additional key employees in the future, we cannot guarantee that we will be successful in retaining the services of these individuals. If we were to lose any of these individuals, we may not be able to find appropriate replacements on a timely basis and our financial condition and results of operations could be materially adversely affected.

Furthermore, competition for employees can be intense, particularly in Silicon Valley where TurnOnGreen is headquartered, and the ability to attract, hire and retain them depends on TurnOnGreen's ability to provide competitive compensation. In addition, job market dynamics have been impacted by the "great resignation," with a significant number of people leaving the workforce, and future challenges related to TurnOnGreen's "return-to-office" plans, hybrid work model or workplace practices could lead to attrition and difficulty attracting high-quality employees. TurnOnGreen may not be able to attract, assimilate, develop, or retain qualified personnel in the future, and failure to do so could adversely affect its business, including the execution of its global business strategy.

**If we are unable to identify, attract, train and retain qualified personnel, especially our design and technical personnel, our business and results of operations would be materially and adversely affected, and we may not be able to effectively execute our business strategy.**

Our performance and future success largely depend on our continuing ability to identify, attract, train, retain and motivate qualified personnel, including our management, sales and marketing, finance and in particular our engineering, design and technical personnel. For example, we currently have a limited number of qualified personnel for the assembling and testing processes. We do not know whether we will be able to retain all these personnel as we continue to pursue our business strategy. Our engineering, design and technical personnel represent a significant asset. The competition for qualified personnel in our industry is intense and constrains our ability to attract qualified personnel. The loss of the services of one or more of our key employees, especially of our key engineering, design and technical personnel, or our inability to attract, retain and motivate qualified personnel, could have a material adverse effect on our business, financial condition and operating results.

**Our technology is generally unpatented, and others may seek to copy it.**

We operate in an industry in which the ability to compete depends on the development or acquisition of proprietary technologies that must be protected to preserve the exclusive use of such technologies. We devote substantial resources to establish and protect our proprietary rights. This protection, however, may not prevent competitors from independently developing products similar or superior to our products. We may be unable to protect our IP that competitors could restrict or replicate, of which may have a material adverse effect on our competitive position. In addition, the intellectual property laws of foreign countries may not protect our rights to the same extent as those of the United States.

We generally do not patent technology developed by us and we cannot be sure that others will not independently develop the same or similar technology or otherwise obtain access to our technology. To protect our rights in these areas, we require all employees, consultants and others who work for or with us to enter into confidentiality agreements. We cannot be sure, however, that these agreements will provide meaningful protection for our trade secrets, know-how or other information in the event of any unauthorized use, misappropriation or disclosure.

**Failure of our information technology infrastructure to operate effectively could adversely affect our business.**

We depend heavily on information technology infrastructure to achieve our business objectives. If a problem occurs that impairs this infrastructure, the resulting disruption could impede our ability to record or process orders, manufacture and ship in a timely manner, or otherwise carry on business in the normal course. Any such event could cause us to lose customers or revenue and could require us to incur significant expenses to remediate.

**Our insurance coverage and indemnity may be insufficient to cover potential liabilities we may face due to the risks inherent in the products and services we provide.**

We are exposed to liabilities that are unique to the products and services we provide. A significant portion of our business relates to designing, developing and manufacturing components, integrated assemblies and subsystems for advanced defense, medical, transportation, industrial, technology and communications systems and products. New technologies associated with these systems and products may be untested or unproven. Components of certain defense systems and products we develop are inherently dangerous. Failures of satellites, missile systems, air traffic control systems, homeland security applications and aircraft have the potential to cause loss of life and extensive property damage. In most circumstances, we may receive indemnification from the government end users of our defense offerings in the United States, the United Kingdom and Israel. In addition, failures of products and systems that we manufacture or distribute for medical devices, transportation controls or industrial systems also have the potential to result in loss of life, personal injury and/or extensive property damage.

While we maintain insurance for certain risks, the amount of our insurance coverage may not be adequate to cover all claims or liabilities, and we may be forced to bear substantial costs from an accident or incident. It also is not possible for us to obtain insurance to protect against all operational risks and liabilities. Substantial claims resulting from an incident in excess of government indemnity and our insurance coverage would harm our financial condition, results of operations and cash flows. Moreover, any accident or incident for which we are liable, even if fully insured, could negatively affect our standing with our customers and the public, thereby making it more difficult for us to compete effectively, and could significantly impact the cost and availability of adequate insurance in the future.

**<u>Risks Related to Our EV Charging Business and the EV Charging Industry</u>**

**We are dependent upon our and our contract manufacturers' ability to timely procure electronic components.**

Because of the global economy, many raw material vendors have reduced capacities, closed production lines and, in some cases, even discontinued their operations. As a result, there is a global shortage of certain electronic or mineral components, which may extend our production lead-time and our production costs. Some materials are no longer available to support some of our products, thereby requiring us to search for cross materials or, even worse, redesign some of our products to support currently available materials. Such redesign efforts may require certain regulatory and safety agency re-submittals, which may cause further production delays. While we have initiated actions that we believe will limit our exposure to such problems, the dynamic business conditions in many of our markets may challenge the solutions that have been put in place, and issues may recur in the future.

In addition, most of our products are manufactured, assembled and tested by third party subcontractors and contract manufacturers located in Asia, and particularly China. While we have had relationships with many of these third parties in the past, we cannot predict how or whether these relationships will continue in the future. In addition, changes in management, financial viability, manufacturing demand or capacity, or other factors, at these third parties could hurt our ability to manufacture our products.

**We may not be able to procure necessary key components or raw materials, or we may purchase excess raw material inventory or unusable inventory, which increases the risk of reserve charges to reduce the value of any inventory deemed excess or obsolete, thereby reducing our profitability.** 

The power systems industry, and the electronics industry as a whole, can be subject to pronounced, lengthy business cycles and otherwise subject to sudden and sharp changes in demand. Our success is, in part, dependent on our ability to forecast and procure inventories of components and materials to match production schedules and customer delivery requirements. Many of our products require raw materials supplied by a limited number of vendors and, in some instances, a single vendor. During certain periods, key components or materials required to build our products may become unavailable in the timeframe required for us to meet our customers' needs. Our inability to secure sufficient raw materials to manufacture products for our customers has reduced, in the past, our revenue and profitability and could do so again.

We may choose, and have chosen, to mitigate our inventory risks by increasing the levels of inventory for certain products, components and materials. Such increased inventory levels may increase the potential risk for excess or obsolete inventories, should our forecasts fail to materialize or if there are negative factors impacting our customers' end markets, leading to order cancellation. If we identify excess inventory or determine certain inventory is obsolete (i.e., unusable), we likely will record additional inventory reserves (i.e., expenses representing the write-off of the excess or obsolete inventory), which could have an adverse effect on our gross margins and on our operating results.

**We depend on international operators for a substantial portion of our components and products.**

We purchase a substantial portion of our components from foreign manufacturers and have a substantial portion of our commercial products assembled, packaged and tested by subcontractors located outside the United States. These activities are subject to the uncertainties associated with international business operations, including trade barriers and other restrictions, changes in trade policies, governmental regulations, currency exchange fluctuations, reduced protection for intellectual property, war and other military activities, terrorism, changes in social, political, or economic conditions, and other disruptions or delays in production or shipments, any of which could have a materially adverse effect on our business, financial condition, and/or operating results.

Although no assurance can be given that future disruptions will not occur, to date, we have not experienced any disruptions due to our reliance on foreign manufacturers. In the future, if any one of our foreign manufacturers experiences an extensive disruption in the production of the products that we need, we will have to pursue alternative plans of production, such as finding an alternative manufacturer to produce those products affected by such disruption. Alternative manufacturers that produce the products that we need do exist. Nonetheless, having to locate an alternative supplier may cause a material disruption in our ability to produce and supply products to our customers. If we have to pursue alternative plans of production, it could have a materially adverse effect on our business, financial condition, and operating results.

**We may face significant risks and operational disruptions in transitioning to a new contract manufacturer, which could adversely affect our business, results of operations, and customer relationships.**

Shifting production to a new contract manufacturer ("CM") involves numerous challenges and introduces substantial risks that could materially impact our 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.

**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 rely a on foreign third-party manufacturers and component suppliers located in China, Taiwan, Israel, and other countries. The U.S. government has taken actions that may result in changes to U.S. and international trade policies. In April 2025, the U.S. government announced tariffs on imports from China that may reach a combined total rate of up to at least 145%, including the 20% tariff implemented in February 2025. Tariffs of 10% were also imposed on imports from Taiwan and Israel. If maintained or expanded to additional countries, tariffs and potential trade disputes with China or other countries could increase our costs of revenue and operating expenses. The extent and duration of tariffs, and their impact on economic conditions and our business, remain uncertain.

Disruption of our manufacturing facilities or other operations or those of our suppliers, or in the operations of our customers, due to climate change, earthquake, flood, other natural catastrophic events, public health crises or terrorism could result in cancellation of orders, delays in deliveries or other business activities, or loss of customers and could seriously harm our business.

We have operations, suppliers and customers located in the U.S., China and Israel. Operations at our manufacturing facilities and our assembly subcontractors and those of our suppliers, as well as our other operations and those of our customers, are subject to disruption for a variety of reasons, including work stoppages, acts of war such as the United States' and Israeli military actions taken against Iran and its reverberations, Russia's invasion of Ukraine, terrorism, public health crises, fire, earthquake, volcanic eruptions, drought, storms, sea-level rise, extreme temperatures, energy shortages, spikes in energy demand or power blackouts, disruptions in the availability of water necessary for our operations (including, but not limited to, in areas of relatively high water stress), flooding or other natural disasters; and certain of these events may become more frequent or intense as ma result of climate change. Such disruption could in the future cause inefficiencies in our workforce and delays in, among other things, shipments of products to our customers, our ability to perform services requested by our customers, the ability of our suppliers to supply us components for our products in a timely manner, or the timely installation and acceptance of our products at customer sites. Such disruptions could also induce illiquidity for our customers and suppliers, further straining our supply chain and causing continued uncertainty in customers' abilities to pay for the products they purchase and their demand for our products and services. In case of any disruptions in our supply chain, we may need to commit to increased purchases and provide longer lead times to secure critical components, which could increase inventory obsolescence risk.

**Changes in government incentives, emissions and fuel economy standards, and other regulatory policies may negatively impact the EV market and demand for our products and services.**

The market for EVs is influenced by a range of regulatory and policy factors, including government rebates, tax credits, infrastructure incentives, emissions standards, fuel economy standards, and other measures intended to encourage the adoption of EVs and related charging infrastructure. Changes to, reductions in, or the elimination of such incentives, standards, mandates, or other supportive policies at the federal, state, or international level could reduce consumer demand for EVs and EV charging infrastructure. In addition, improvements in the fuel efficiency, cost, or performance of internal combustion engine vehicles or other alternative fuel technologies could reduce the relative attractiveness of EVs. The regulatory environment remains subject to change, including as a result of legislative, administrative, or political developments. If demand for EVs or EV charging infrastructure declines or grows more slowly than expected as a result of these factors, our business, results of operations, financial condition, and prospects could be materially adversely affected.

**The EV market is influenced by government incentives, regulatory policies, and political priorities, and changes to such programs or policies could adversely affect demand for our products and services.** 

The market for electric vehicles ("EVs") and EV charging infrastructure has historically benefited from government incentives, including tax credits, rebates, grants, and other financial support programs at the federal, state, and local levels, as well as from regulatory policies and mandates intended to encourage electrification. These incentives and policies have reduced the effective cost of EVs and charging infrastructure and have contributed to the growth of the EV market.

However, these programs and policies are subject to change, reduction, or elimination as a result of legislative, regulatory, or administrative actions, including changes in political priorities across administrations. For example, government authorities may reduce or eliminate tax credits, grants, or other incentives supporting EV adoption or charging infrastructure deployment, delay or weaken emissions or electrification mandates, or prioritize alternative technologies or energy policies. Any such changes could reduce consumer and commercial demand for EVs and related infrastructure.

In addition, certain of our revenues may be derived from regulatory credit programs or other government-supported mechanisms. Changes to, or the elimination of, such programs could adversely affect our ability to generate such revenue.

Because the EV market remains dependent, in part, on continued regulatory support and favorable policy environments, any reduction in incentives, changes in regulatory frameworks, or shifts in government priorities could slow the growth of the EV market. If demand for EVs or EV charging infrastructure declines or grows more slowly than expected, our business, results of operations, financial condition, and prospects could be materially adversely affected.

**The growth of the EV charging market depends on the development of adequate charging infrastructure, which is subject to significant uncertainty and requires substantial investment.**

The size, composition, and geographic distribution of the EV charging network will depend on a number of evolving factors, including the rate of EV adoption, consumer charging preferences, the availability of residential and workplace charging, and differences across urban, suburban, and rural markets. As a result, the development of charging infrastructure may not occur at the pace or scale required to support widespread EV adoption.

In addition, the buildout of charging infrastructure requires significant capital investment, including investment in publicly accessible fast charging, Level 2 charging, and private residential charging. The level and timing of such investment remain uncertain and may vary based on economic conditions, technology developments, and policy support.

Furthermore, the expansion of EV infrastructure depends on the availability of sufficient electric grid capacity, energy generation, and distribution systems. If federal, state, or local governments, utilities, or private sector participants do not make adequate investments in these areas, the growth of EV adoption and charging infrastructure could be constrained.

If the development of EV charging infrastructure, grid capacity, or related investments does not meet market needs, demand for our products and services could be adversely affected, which could have a materially and adversely impact on our business, results of operations, and financial condition.

**Our revenue growth ultimately depends on consumers' willingness to adopt electric vehicles in a market that is still in its early stages.**

Our growth is highly dependent upon the adoption by consumers of EVs, and we are subject to the risk of reduced demand for EVs. If the market for EVs does not gain broader market acceptance or develops slower than we expect, our business, prospects, financial condition and operating results will be harmed. The market for alternative fuel vehicles is relatively new, rapidly evolving, characterized by rapidly changing technologies, price competition, additional competitors, evolving government regulation and industry standards, frequent new vehicle announcements, long development cycles for EV original equipment manufacturers, and changing consumer demands and behaviors.

**We are in a highly competitive EV charging services industry and there can be no assurance that we will be able to compete with many of our competitors, which are larger and have greater financial resources.**

We face strong competition from other EV charging providers, some of whom may be able to duplicate aspects of our business model. Many competitors have substantially greater financial, marketing, and development resources than us. In addition, barriers to entry in certain segments of the EV charging services market are relatively low. As a result, competitors may independently develop services that are substantially equivalent or superior to their services. Therefore, an investment in our company is very risky and speculative due to the competitive environment.

Our competitors may also provide customers with greater capabilities or benefits in areas such as technical qualifications, past contract performance, geographic presence, and pricing. Furthermore, competitors with greater resources may develop competing technologies, secure broader contracts, or recruit our employees by offering more attractive compensation packages.

**Our business is subject to risks associated with construction, cost overruns and delays, and other contingencies that may arise in the course of completing installations, and such risks may increase in the future as we expand the scope of such services with other parties.**

We do not typically install charging stations at customer sites. These installations are often performed by our partners or electrical contractors with an existing relationship with the customer and/or knowledge of the site. The installation of charging stations at a particular site is generally subject to oversight and regulation in accordance with state and local laws and ordinances relating to building codes, safety, environmental protection and related matters, and frequently requires various local and other governmental approvals and permits that may vary by jurisdiction. In addition, building codes, accessibility requirements or regulations may hinder EV charger installation because they end up costing the developer or installer more in order to meet the code requirements. Meaningful delays or cost overruns may impact our recognition of revenue in certain cases and/or impact customer relationships, either of which could impact our business and profitability.

Further, we may install charging stations at customer sites or manage contractors, primarily as part of offering customers a turnkey solution. Working with contractors may require us to obtain licenses or require us or our customers to comply with additional rules, working conditions and other union requirements, which can add costs and complexity to an installation project. In addition, if these contractors are unable to provide timely, thorough and quality installation-related services, customers could fall behind their construction schedules leading to liability or cause customers to become dissatisfied with the solutions we offer, and our overall reputation would be harmed.

**If we fail to offer high-quality support to charging station owners and drivers, our business and reputation will suffer.**

Once a customer has installed our charging stations and subscribed to our services, station owners and drivers will rely on us to provide support services to resolve any issues that might arise in the future. Rapid and high-quality customer support is important so station owners can provide charging services and drivers can receive reliable charging for their EVs. The importance of high-quality customer support will increase as we seek to expand our business and pursue new customers and geographies. If we do not quickly resolve issues and provide effective support, our ability to retain customers or sell additional products and services to existing customers could suffer and our brand and reputation could be harmed.

**We rely on charging station manufacturing and other partners, and a loss of any such partner or interruption in the partner's production could have a material adverse effect on our business.**

If we experience a significant increase in demand for our charging stations and services, or if we need to replace an existing supplier, it may not be possible to supplement or replace them on acceptable terms, which may undermine our ability to deliver products to customers in a timely manner. For example, it may take a significant amount of time to identify a manufacturer that has the capability and resources to build charging stations in sufficient volume. Identifying suitable suppliers and manufacturers could be an extensive process that requires us to become satisfied with their quality control, technical capabilities, responsiveness and service, financial stability, regulatory compliance, and labor and other ethical practices. Accordingly, a loss of any significant suppliers or manufacturers, or an interruption in their production, could have an adverse effect on our business, financial condition and operating results.

Moreover, the bi-directional EV charging station market as a whole is relatively new and charging station manufacturers are even more limited and requirements are evolving. Though we work with multiple vendors, it is likely that at the time a new product is launched, and new requirements are rolled out, we may rely on a single vendor. Certifications might also be delayed, as tests are not always available at the time of commercial launch. Certain of these requirements might at times apply to technology inside the vehicles, in which case such risks could also be pushed on the vehicle OEMs. To the extent we rely on a single supplier, the risks to us would be intensified.

**Our future results are dependent on our ability to establish, maintain and expand our manufacturers' representative OEM relationships and our other relationships.**

We market and sell our products through domestic and international OEM relationships and other distribution channels, such as manufacturers' representatives and distributors. Our future results are dependent on our ability to establish, maintain and expand our relationships with OEMs as well as with manufacturers' representatives and distributors to sell our products. If, however, the third parties with whom we have entered into such OEM and other arrangements should fail to meet their contractual obligations, cease doing, or reduce the amount of their, business with us or otherwise fail to meet their own performance objectives, customer demand for our products could be adversely affected, which would have an adverse effect on our revenues.

**<u>Risks Related to Our Relationship with Hyperscale</u>**

**As long as Hyperscale controls us, your ability to influence matters requiring shareholder approval will be limited.** 

As of December 31, 2025, Hyperscale beneficially owned approximately 27 million shares of our common stock and approximately 33.5 million through its ownership of shares of our Series A Preferred Stock (the "Preferred Stock"). The Preferred Stock is subject to a 19.9% beneficial ownership limitation, representing approximately 17% of the combined voting power of our outstanding common stock. For so long as Hyperscale beneficially owns shares of our common stock representing a significant percentage of the votes entitled to be cast by the holders of outstanding common stock, Hyperscale may be able to elect all of the members of our board of directors. For so long as any of the shares of Preferred Stock remains issued and outstanding, Hyperscale has the ability to appoint a number of directors equal to its percentage of beneficial ownership of our common stock.

It should be noted that Hyperscale does not require beneficial ownership amounting to an outright majority to control or very strongly influence any of matter placed before our shareholders, in part because many shareholders would not attend, whether in person or not, any of our shareholder meetings(s). If Hyperscale does not provide any requisite consent allowing us to conduct such activities when requested, we will not be able to conduct such activities and, as a result, our business and our operating results may be harmed. Hyperscale's voting control may discourage transactions involving a change of control of us, including transactions in which you as a holder of our common stock might otherwise receive a premium for your shares over the then-current market price. Hyperscale is not prohibited from selling a controlling interest in us to a third party and may do so without your or our approval and without providing for a purchase of your shares of common stock. Accordingly, your shares of common stock may be worth less than they would be if Hyperscale did not maintain significant voting control over us.

Hyperscale's interests and objectives as a shareholder may not align with, or may even directly conflict with, our or your interests and objectives as a shareholder. For example, Hyperscale may be more or less interested in us entering into a transaction or conducting an activity due to the impact such transaction or activity may have on Hyperscale as a company, independent of us. In such instances, Hyperscale may exercise its significant control over us in a way that is beneficial to Hyperscale, and you will not be able to affect the outcome so long as Hyperscale continues to hold a controlling interest of our company, despite not beneficially owning a majority of the outstanding shares entitled to vote.

In the event Hyperscale is acquired or otherwise undergoes a change of control, any acquirer or successor will be entitled to exercise the voting control and contractual rights of Hyperscale and may do so in a manner that could vary significantly from what Hyperscale would have done or not done.

**Our historical financial information as a subsidiary of Hyperscale may not be representative of our results as an independent public company.** 

The historical financial information we have included in this Annual Report does not necessarily reflect what our financial position, results of operations or cash flows would have been had we been an independent entity during the historical periods presented. The historical costs and expenses reflected in our consolidated financial statements include an allocation for certain corporate functions historically provided by Hyperscale, including tax, accounting, treasury, legal, human resources, compliance, insurance, sales and marketing services. The historical financial information is not necessarily indicative of what our results of operations, financial position, cash flows or costs and expenses will be in the future. We have not made pro forma adjustments to reflect many significant changes that will occur in our cost structure, funding and operations as a result of our transition to becoming a public company, including changes in our employee base, potential increased costs associated with reduced economies of scale and increased costs associated with being a publicly traded, stand-alone company. For additional information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical consolidated financial statements and notes thereto.

**<u>Risks Relating to Ownership of Our Common Stock</u>**

**An active, liquid trading market for our common stock does not currently exist and may not develop after within the foreseeable future, if at all, and as a result, you may not be able to sell your common stock at a favorable price, or at all.**

 ****

An extremely limited trading market exists for our common stock on the Pink Open Market (Current Information). No assurance can be given as to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that we will be successful in causing our common stock to become listed on the OTCQB Market or, in the
future, any national securities exchange such as The Nasdaq Capital Market or NYSE American;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the likelihood that a more active trading market for shares of our common stock will develop or be sustained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the liquidity of any such market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our shareholders to sell their shares of common stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the price that our shareholders may obtain for their shares of common stock.

If an active market does not develop for our common stock or is not maintained, the market price of our common stock may decline and you may not be able to sell your shares. The market price of our common stock may be highly volatile and subject to wide fluctuations. Our financial performance, government regulatory action, tax laws, interest rates and market conditions in general could have a significant impact on the future market price of our common stock.

**The price of our common stock may have little or no relationship to the historical bid prices of our common stock on the Pink Open Market (Current Information).**

There has been no public market for our capital stock other than on the Pink Open Market (Current Information). Given the limited history of sales and the lack of publicly available information about our business, financing and financial results available, among other factors, this information may have little or no relation to broader market demand for our common stock and thus the price of our common stock. As a result, you should not rely on these historical sales prices as they may differ materially from subsequent prices of our common stock.

**Future sales, or the perception of future sales, of a substantial amount of our shares of common stock could depress the trading price of our common stock.** 

If we or our shareholders sell substantial amounts of our shares of common stock in the public market or if the market perceives that these sales could occur, the market price of shares of our common stock could decline. These sales may make it more difficult for us to sell equity or equity-linked securities in the future at a time and price that we deem appropriate, or to use equity as consideration for future acquisitions.

As of the date of this Annual Report, we have 2,000,000,000 shares of common stock and 50,000,000 shares of "blank check" preferred stock authorized. As of March 30, 2026, we had 183,983,122 shares of common stock outstanding. Of these shares, 169,808,311 shares of common stock are currently held by unaffiliated shareholders. However, these figures do not take into account issuances of common stock that we may make upon conversion of Hyperscale's preferred stock, nor does it account for any other shares that may be issued.

**The rights of the holders of common stock may be impaired by the potential issuance of preferred stock.**

Our articles of incorporation give our board of directors the right to create new series of preferred stock. As a result, the board of directors may, without shareholder approval, issue preferred stock with voting, dividend, conversion, liquidation, or other rights which could adversely affect the voting power and equity interest of the holders of common stock. Preferred stock, which could be issued with the right to more than one vote per share, could be utilized as a method of discouraging, delaying, or preventing a change of control. The possible impact on takeover attempts could adversely affect the price of our common stock. Although we have no present intention to issue any shares of preferred stock, we may issue such shares in the future.

**The regulation of penny stocks by the SEC and FINRA may have an effect on the tradability of our securities.**

 ****

Our shares of common stock are currently quoted on the Pink Open Market (Current Information). Our common stock is subject to a Securities and Exchange Commission rule that imposes special sales practice requirements upon broker-dealers who sell such securities to persons other than established customers or accredited investors. For purposes of the rule, the phrase "accredited investors" means, in general terms, institutions with assets in excess of $5,000,000, or individuals having a net worth in excess of $1,000,000 or having an annual income that exceeds $200,000 for the past two years (or that, when combined with a spouse's income, exceeds $300,000).

For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser's written agreement to the transaction prior to the sale. Consequently, the rule may affect the ability of broker-dealers to sell our securities and also may affect the ability of sellers to sell their securities in any market that might therefore develop.

In addition, the Securities and Exchange Commission has adopted a number of rules to regulate "penny stocks." Such rules include Rules 3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the Exchange Act. Because our securities constitute "penny stocks" within the meaning of the rules, the rules would apply to us and to our securities. The rules may further affect the ability of owners of our common stock to sell our securities in any market that might develop for them.

Shareholders should be aware that, according to the Securities and Exchange Commission, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) "boiler room" practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities.

The shares of our common stock may be thinly traded on the Pink Open Market, meaning that the number of persons interested in purchasing our shares of common stock at or near ask prices at any given time may be relatively small or non-existent. This situation is attributable to a number of factors, including the fact that we are a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven, early stage company such as ours or purchase or recommend the purchase of our shares of common stock until such time as we became more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our shares of common stock is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on the price of our common stock.

**<u>General Risk Factors</u>**

**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.

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

Based on the results of management's testing, management concluded that the previously identified material weakness related to inventory, revenue recognition, accounts receivable, complex financial instruments and fair value estimates were remediated as of December 31, 2025.

Management has identified the following material weakness which caused management to conclude that as of December 31, 2025, 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.

Management evaluated the impact of our failure to have segregation of duties and concluded that the control deficiency represented a material weakness.

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 as defined under Section 404 of SOX, we may be unable to produce reliable financial reports or prevent fraud, which could materially harm our business. In addition, we may be subject to sanctions or investigation by government authorities or self-regulatory organizations, such as the SEC or the Financial Industry Regulatory Authority ("FINRA"). Any such actions could affect investor perceptions of our company and result in an adverse reaction in the financial markets due to a loss of confidence in the reliability of our financial statements, which could cause the market price of our common stock to decline or limit our access to capital.

**We rely on third-party vendors and subcontractors for supply of components, assemblies, and services and, therefore, cannot control the availability or quality of such components, assemblies, and services. Any interruptions in goods provided by these third parties may impair our ability to support our customers.**

We depend on third-party vendors and subcontractors to supply components, assemblies and services used to manufacture our products, some of which are supplied by a single vendor. We have experienced shortages of certain semiconductor and electronic components and delays in service delivery, have incurred additional and unexpected costs to address the shortages and delays, and have experienced our own delays in production and shipping.

If suppliers or subcontractors cannot provide their products or services on time or to our specifications, we may not be able to meet the demand for our products, and our delivery times may be negatively affected. In addition, we cannot directly control the quality of the products and services provided by third parties. In order to expand revenue, we likely will need to identify and qualify new suppliers and subcontractors to supplant or replace existing suppliers and subcontractors, which may be a time-consuming and expensive process. In addition, any qualification of new suppliers may require customers of our products utilizing products and services from new suppliers and service providers to undergo a re-qualification process. Such circumstances likely would lead to disruptions in our production, increased manufacturing costs, delays in shipping to our customers, and/or increases in prices paid to third parties for products and services.

We rely on a third-party partner to provide certain manufacturing steps associated with some of our proprietary processes to support our power products and solutions. This process, developed with the third-party partners, involves complex printed circuit board assembly, advanced environmental conditioning and accelerated testing performed on equipment developed by us or the third-party partners. An important, differentiating benefit of this proprietary process is that it does not generate problematic effluent, resulting in an environmentally safe approach to our products with minimal waste. We have entered into agreements with a third-party partner for production and transfer of technologies and process know-how, including the purchase of the enabling equipment developed by the third-party partner.

To date, we have successfully relied upon this third-party partner to perform these manufacturing steps, although we have experienced delivery delays associated with the third-party partner's volume constraints. This experience caused us to accelerate our schedule for establishing our own high-volume capabilities in-house, modifying, in 2020, our construction plans to accommodate a dedicated, on-premises metal surface finishing facility. We expect to rely on our third-party partner for production requirements through the installation and qualification for production of our products. We also expect to rely on our third-party partner in the future for surge capacity requirements.

In the event one of our third-party vendors experiences a cybersecurity incident, we have taken steps to mitigate potential damages to our operations by diversifying our sources of supply to such an extent that we have the ability to move production of a product impacted by such cybersecurity incident to an alternative third-party vendor. Due to our diverse sources of supply, we do not believe that cybersecurity incidents at the third-party vendor level of our supply chain will have a material impact on our business. However, if our third-party partner experiences a cybersecurity incident, our operations related to manufacturing associated with some of our proprietary processes supporting our power products and solutions could be disrupted, or otherwise negatively affected. If we are unable to procure alternatives in a timely and efficient manner and on acceptable terms, or at all, third-party supply unavailability could result in customer dissatisfaction, regulatory scrutiny and damage to our reputation and brand, and other consequences that could adversely affect our business.

**We are dependent on information technology in our operations, and the failure of such technology may adversely affect our business. Potential security breaches of our information technology systems, including cyber-attacks, could lead to liability or could damage our reputation and financial results.**

Although no assurance can be given that future disruptions will not occur, to date we have not experienced problems with the operations of our current technology systems or the technology systems of third parties on which we rely. In the future, we may experience such problems, as well as with the development and deployment of new information technology systems, which could adversely affect, or even temporarily disrupt, all or a portion of our operations until resolved. Inabilities and delays in implementing new systems can also affect our ability to realize projected or expected cost savings. Any system's failures could impede our ability to timely collect and report financial results in accordance with applicable laws.

Information technology system and/or network disruptions could harm the company's operations. Failure to effectively prevent, detect and recover from security breaches, including cyber-attacks, could result in the misuse of company assets, unauthorized use or publication of our trade secrets and confidential business information, disruption to the company, diversion of management resources, regulatory inquiries, legal claims or proceedings, reputational damage, loss of sales, reduction in value of our investment in research and development, among other costs to the company. Although we have not experienced any attempts to gain unauthorized access to our information technology systems on which we maintain proprietary and confidential information, in the future, we may experience such attempts. The risk of a security breach or disruption, particularly through cyber-attacks, or cyber intrusion, including by computer hackers, and cyber terrorists, has generally increased as cyber-attacks have become more prevalent and harder to detect and fight against. Additionally, outside parties may attempt to access our confidential information through other means, for example by fraudulently inducing our employees to disclose confidential information. We actively seek to prevent and detect any unauthorized access. These threats are also continually evolving and, as a result, might become increasingly difficult to detect.

**We face intense industry competition, price erosion and product obsolescence, which, in turn, could reduce our profitability.**

We operate in an industry that is generally characterized by intense competition. We believe that the principal bases of competition in our markets are breadth of product line, quality of products, stability, reliability and reputation of the provider, along with cost. Quantity discounts, price erosion, and rapid product obsolescence due to technological improvements are therefore common in our industry as competitors strive to retain or expand their market share. Product obsolescence can lead to increases in unsaleable inventory that may need to be written off and, therefore, could reduce our profitability. Similarly, price erosion can reduce our profitability by decreasing our revenues and our gross margins. In fact, we have seen price erosion over the last several years on most of the products we sell, and we expect additional price erosion in the future.

**If we are unable to satisfy our customers' specific product quality, certification or network requirements, our business could be disrupted, and our financial condition could be harmed.**

Our customers demand that our products meet stringent quality, performance and reliability standards. We have, from time to time, experienced problems in satisfying such standards. Defects or failures have occurred in the past, and may in the future occur, relating to our product quality, performance and reliability. From time to time, our customers also require us to implement specific changes to our products to allow these products to operate within their specific network configurations. If we are unable to remedy these failures or defects or if we cannot affect such required product modifications, we could experience lost revenues, increased costs, including inventory write-offs, warranty expense and costs associated with customer support, delays in, or cancellations or rescheduling of, orders or shipments and product returns or discounts, any of which would harm our business.

**Because we do not intend to pay dividends on our common stock, you must rely on stock appreciation for any return on your investment.**

We presently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future. As a result, you must rely on stock appreciation and a liquid trading market for any return on your investment. If an active and liquid trading market does not develop, you may be unable to sell your shares of common stock at the time you would like to sell.

**Anti-takeover provisions in our charter documents could discourage, delay or prevent a change in control of our company and may affect the trading price of our common stock.**

Our corporate documents and Nevada law contain provisions that may enable our board of directors to resist a change in control of our company even if a change in control were to be considered favorable by you and other shareholders. These provisions authorize the issuance of "blank check" preferred stock that could be issued by our board of directors to help defend against a takeover attempt. Further, Nevada law prohibits large shareholders, in particular those owning 10% or more of our outstanding voting stock, from merging or consolidating with us except under certain circumstances. These provisions and other provisions under Nevada law could discourage, delay or prevent a transaction involving a change in control of our company. These provisions could also discourage proxy contests and make it more difficult for you and other shareholders to elect directors of your choosing and cause us to take other corporate actions you desire.

 **If securities analysts do not publish research or reports about our business or if they publish negative evaluations of our stock, the price of our common stock could decline.**

The trading market for our common stock will rely in part on the research and reports that industry or financial analysts publish about us or our business. We do not currently have and may never obtain research coverage by industry or financial analysts. If no or few analysts commence coverage of us, the trading price of our common stock could decrease. Even if we do obtain analyst coverage, if one or more of the analysts covering our business downgrade their evaluations of our stock, the price of our common stock could decline. If one or more of these analysts cease to cover our stock, we could lose visibility in the market for our common stock, which in turn could cause our stock price to decline.

**Our charter provides for limitations of director liability and indemnification of directors, officers and employees.**

Our articles of incorporation limit the liability of directors to the maximum extent permitted by Nevada law. Nevada law provides that directors of a corporation will not be personally liable for monetary damages for breach of their fiduciary duties as directors, except for liability for any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• breach of their duty of loyalty to us or our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unlawful payments of dividends or unlawful stock repurchases, or redemptions as provided in the Nevada
Revised Statutes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

**Our operating results may vary from quarter to quarter.**

Our operating results have in the past been subject to quarter-to-quarter fluctuations, and we expect that these fluctuations will continue, and may increase in magnitude, in future periods. Demand for our products is driven by many factors, including the availability of funding for our products in our customers' capital budgets. There is a trend for some of our customers to place large orders near the end of a quarter or fiscal year, in part to spend remaining available capital budget funds. Seasonal fluctuations in customer demand for our products driven by budgetary and other concerns can create corresponding fluctuations in period-to-period revenues, and we therefore cannot assure you that our results in one period are necessarily indicative of our revenues in any future period. In addition, the number and timing of large individual sales and the ability to obtain acceptances of those sales, where applicable, have been difficult for us to predict, and large individual sales have, in some cases, occurred in quarters subsequent to those we anticipated, or have not occurred at all. The loss or deferral of one or more significant sales in a quarter could harm our operating results for such quarter. It is possible that, in some quarters, our operating results will be below the expectations of public market analysts or investors. In such events, or in the event adverse conditions prevail, the market price of our common stock may decline significantly.

**Many of our competitors are larger and have greater financial and other resources than we do.**

We compete with companies that may offer similar or competing products and that have significantly greater financial, technical, marketing, and distribution resources than we do. These competitors may be able to develop and introduce new products more quickly, expand into new markets more effectively, and devote greater resources to sales and marketing efforts. In addition, larger competitors may seek to maintain or expand market share through aggressive pricing strategies, including discounted pricing, which we may be unable to match. Existing or new competitors may also develop products or technologies with superior performance, features, or cost advantages.

If we are unable to compete effectively, including by developing and commercializing innovative, cost-effective products on a timely basis, our competitive position, revenues, and results of operations could be materially adversely affected.

**Changes in the U.S. tax and other laws and regulations may adversely affect our business.**

The U.S. government may revise tax laws, regulations or official interpretations in ways that could have a significant adverse effect on our business, including modifications that could reduce the profits that we can effectively realize, or that could require costly changes to those operations, or the way in which they are structured. For example, the effective tax rates for most U.S. companies reflect the fact that income earned and reinvested outside the U.S. is generally taxed at local rates, which may be much lower than U.S. tax rates. If we expand abroad and there are changes in tax laws, regulations or interpretations that significantly increase the tax rates on non-U.S. income, our effective tax rate could increase, and our profits could be reduced. If such increases resulted from our status as a U.S. company, those changes could place us at a disadvantage to our non-U.S. competitors if those competitors remain subject to lower local tax rates.

**Our sales and profitability may be affected by changes in economic, business and industry conditions**.

If the economic climate in the United States or abroad deteriorates, customers or potential customers could reduce or delay their technology investments. Reduced or delayed technology and entertainment investments could decrease our sales and profitability. In this environment, our customers may experience financial difficulty, cease operations and fail to budget or reduce budgets for the purchase of our products and professional services. This may lead to longer sales cycles, delays in purchase decisions, payment and collection, and can also result in downward price pressures, causing our sales and profitability to decline. In addition, general economic uncertainty and general declines in capital spending in the information technology sector make it difficult to predict changes in the purchasing requirements of our customers and the markets we serve. There are many other factors which could affect our business, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the introduction and market acceptance of new technologies, products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• new competitors and new forms of competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the size and timing of customer orders (for retail distributed physical product);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the size and timing of capital expenditures by our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse changes in the credit quality of our customers and suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the pricing policies of, or the introduction of, new products and services by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the terms of our contracts with our customers or suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of products from our suppliers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations in product costs and the mix of products sold.

These trends and factors could adversely affect our business, profitability and financial condition and diminish our ability to achieve our strategic objectives.

**Our limited ability to protect our proprietary information and technology may adversely affect our ability to compete, and our products could infringe upon the intellectual property rights of others, resulting in claims against us, the results of which could be costly.**

Many of our products consist entirely or partly of proprietary technology owned by us. Although we seek to protect our technology through a combination of copyrights, trade secret laws and contractual obligations, these protections may not be sufficient to prevent the wrongful appropriation of our intellectual property, nor will they prevent our competitors from independently developing technologies that are substantially equivalent or superior to our proprietary technology. In addition, the laws of some foreign countries do not protect our proprietary rights to the same extent as the laws of the United States. In order to defend our proprietary rights in the technology utilized in our products from third party infringement, we may be required to institute legal proceedings, which would be costly and would divert our resources from the development of our business. If we are unable to successfully assert and defend our proprietary rights in the technology utilized in our products, our future results could be adversely affected.

Although we attempt to avoid infringing known proprietary rights of third parties in our product development efforts, we may become subject to legal proceedings and claims for alleged infringement from time to time in the ordinary course of business. Any claims relating to the infringement of third-party proprietary rights, even if not meritorious, could result in costly litigation, divert management's attention and resources, require us to reengineer or cease sales of our products or require us to enter into royalty or license agreements which are not advantageous to us. In addition, parties making claims may be able to obtain an injunction, which could prevent us from selling our products in the United States or abroad.

**If we ship products that contain defects, the market acceptance of our products and our reputation will be harmed and our customers could seek to recover their damages from us.**

Our products are complex, and despite extensive testing, may contain defects or undetected errors or failures that may become apparent only after our products have been shipped to our customers and installed in their network or after product features or new versions are released. Any such defect, error or failure could result in failure of market acceptance of our products or damage to our reputation or relations with our customers, resulting in substantial costs for us and our customers, as well as the cancellation of orders, warranty costs and product returns. In addition, any defects, errors, misuse of our products or other potential problems within or out of our control that may arise from the use of our products could result in financial or other damages to our customers. Our customers could seek to have us pay for these losses. Although we maintain product liability insurance, it may not be adequate.

**The elimination of monetary liability against our directors, officers and employees under law and the existence of indemnification rights for or obligations to our directors, officers and employees may result in substantial expenditures by us and may discourage lawsuits against our directors, officers and employees.**

Our articles of incorporation contain a provision permitting us to eliminate the personal liability of our directors to us and our shareholders for damages for the breach of a fiduciary duty as a director or officer to the extent provided by Nevada law. We may also have contractual indemnification obligations under any future employment agreements with our officers. The foregoing indemnification obligations could result in us incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and the resulting costs may also discourage us from bringing a lawsuit against directors and officers for breaches of their fiduciary duties and may similarly discourage the filing of derivative litigation by our shareholders against our directors and officers even though such actions, if successful, might otherwise benefit us and our shareholders.

**Failure to build our finance infrastructure and improve our accounting systems and controls could impair our ability to comply with the financial reporting and internal controls requirements for publicly traded companies.**

As a public company, we will operate in an increasingly demanding regulatory environment, which requires us to comply with SOX, the rules and regulations of the SEC, expanded disclosure requirements, accelerated reporting requirements and more complex accounting rules. Company responsibilities required by SOX include establishing corporate oversight and adequate internal control over financial reporting and disclosure controls and procedures. Effective internal controls are necessary for us to produce reliable financial reports and are important to help prevent financial fraud. Commencing with our fiscal year ending 2024, we must perform system and process evaluation and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting in our Form 10-K filing for that year, as required by Section 404 of SOX. We have never been required to test our internal controls within a specified period and, as a result, we may experience difficulty in meeting these reporting requirements in a timely manner.

We anticipate that the process of building our accounting and financial functions and infrastructure will require significant additional professional fees, internal costs and management efforts. We expect that we will need to implement a new internal system to combine and streamline the management of our financial, accounting, human resources and other functions. However, such a system would likely require us to complete many processes and procedures for the effective use of the system or to run our business using the system, which may result in substantial costs. Any disruptions or difficulties in implementing or using such a system could adversely affect our controls and harm our business. Moreover, such disruption or difficulties could result in unanticipated costs and diversion of management attention. In addition, we may discover weaknesses in our system of internal financial and accounting controls and procedures that could result in a material misstatement of our financial statements. Our internal control over financial reporting will not prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.

If we are not able to comply with the requirements of Section 404 of SOX in a timely manner, or if we are unable to maintain proper and effective internal controls, we may not be able to produce timely and accurate financial statements. If we cannot provide reliable financial reports or prevent fraud, our business and results of operations could be harmed, investors could lose confidence in our reported financial information, and we could be subject to sanctions or investigations by the SEC or other regulatory authorities.

**ITEM 1B. UNRESOLVED STAFF COMMENTS.**

Not applicable.

**ITEM 1C. CYBERSECURITY.**

**Information Security Program**

Our information security organization safeguards the confidentiality, integrity, and availability of our systems, services, and data. We employ internal and external security and technology professionals and continue to invest in resources to address evolving cybersecurity threats. Oversight of our cybersecurity program is provided by designated management personnel and, where appropriate, reported to our board of directors or relevant committees.

**Cybersecurity Risk Management and Strategy**

We maintain a cybersecurity risk management program designed to identify, assess, and manage risks to our critical systems, data, and operations. Our program incorporates elements of recognized industry frameworks, including guidance from the National Institute of Standards and Technology ("NIST"), which we use as a reference in evaluating and enhancing our cybersecurity practices.

Our cybersecurity risk management processes include:

&nbsp;&nbsp;&nbsp;&nbsp;· **Risk Identification:** Ongoing identification of potential cybersecurity threats across our systems,
operations, personnel, and third-party service providers, informed by threat intelligence and industry trends.

&nbsp;&nbsp;&nbsp;&nbsp;· **Risk Assessment:** Periodic evaluation of our exposure to identified risks and the effectiveness
of existing controls.

&nbsp;&nbsp;&nbsp;&nbsp;· **Risk Mitigation and Response:** Implementation of security measures and remediation plans to address
identified risks, including tracking and resolution of vulnerabilities.

We also consider cybersecurity risks associated with third-party vendors and service providers as part of our overall risk management framework.

To date, cybersecurity risks have not materially affected our business strategy, results of operations, or financial condition. However, due to the evolving nature of cybersecurity threats, we may in the future experience incidents that could materially adversely affect our business, results of operations, or financial condition.

***Cybersecurity Governance***

Management is responsible for the Company's cybersecurity risk management program including the identification, assessment, mitigation, and remediation of cybersecurity risks. Oversight of the Company's cybersecurity program is led by the CEO, who is responsible for cybersecurity strategy, policies, standards, architecture, and processes.

The Company's board of directors has oversight responsibility for cybersecurity risk and receives periodic reports from the CEO regarding cybersecurity risks, threat trends, and initiatives to strengthen the Company's information security systems. The board of directors is also informed of material cybersecurity incidents in accordance with the Company's incident response procedures and receives updates, as appropriate, on incidents that may have a lesser impact.

The Company maintains a cybersecurity incident response plan designed to facilitate timely identification, escalation, and management of cybersecurity incidents. In addition, the Company provides regular cybersecurity and data protection training to its employees, covering topics such as phishing, social engineering, password security, protection of confidential information, and secure use of company systems. These programs are intended to promote awareness of cybersecurity risks and reinforce the importance of timely reporting of potential incidents

**ITEM 2. PROPERTIES**

Our principal business and corporate address is 2030 Ringwood Ave, San Jose, CA.

**ITEM 3. LEGAL PROCEEDINGS**

The Company is currently involved in litigation arising from matters in the ordinary course of business. We are regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences.

Certain of these outstanding matters include speculative or indeterminate monetary amounts. We record an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when we consider it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being a loss and the estimated amount of loss related to such matters.

With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**PART II**

**ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES** 

***Market Information***

Our common stock is quoted on the Pink Open Market (Current Information), operated by OTC Markets Group Inc., under the symbol TOG. The last reported sale price for our common stock, as quoted on the Pink Open Market, was $0.0280 on March 30, 2026. Quotes of stock trading prices on any over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

We have never declared or paid dividends on our common stock and do not anticipate paying dividends on our common stock at any time in the foreseeable future. The terms of our series A preferred stock will prohibit us from paying dividends on all classes of stock junior to such stock (including our common stock) while shares of our series A preferred stock remain outstanding.

***Holders***

As of March 30, 2026, there were 190 shareholders of record of our common stock based upon the records of the shareholders provided by our transfer agent. Our transfer agent is Computershare, Inc. A number of holders of our common stock are "street name" or beneficial holders whose shares of record are held by banks, brokers, and other financial institutions.

***Dividends***

We have never paid or declared any dividends on our Common Stock and do not anticipate paying cash dividends in the foreseeable future. The terms of our series A preferred stock will prohibit us from paying dividends on all classes of stock junior to such stock (including our common stock) while shares of our series A preferred stock remain outstanding.

***Securities Authorized for Issuance Under Equity Compensation Plans***

On June 27, 2023, the Company held a special meeting of shareholders, and the shareholders voted and approved the TurnOnGreen, Inc. 2023 Stock Incentive Plan which reserved 100,000,000 shares for issuance. As of the date of this Annual Report, no shares had been issued under the plan.

***Unregistered Sales of Equity Securities***

We have previously disclosed all sales of securities without registration under the Securities Act of 1933, as amended.

***Issuer Purchases of Equity Securities***

None

**ITEM 6. RESERVED**

**ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of our financial condition and results of our operations together with our financial statements and the notes thereto appearing elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements reflecting our current expectations, whose actual outcomes involve risks and uncertainties. Actual results and the timing of events may differ materially from those stated in or implied by these forward-looking statements due to several factors, including those discussed in the sections entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements," and elsewhere in this Annual Report on Form 10-K.*

 

***Plan of Operations***

We are an emerging power electronics company that design and manufacture premium power solutions and EV charging infrastructure. Through our wholly owned subsidiaries Digital Power Corporation ('DPC") and TOG Technologies Inc. ("TOGT"), we design, develop, manufacture and sell highly engineered, feature-rich, high-grade-power conversion and power system solutions to diverse industries and markets including e-Mobility, medical, military, telecommunications, and industrial as well as design and provide a line of advanced EV charging solutions. Through DPC, we provide solutions which leverage a combination of low leakage power emissions, very high-power density with power efficiency, flexible design leveraging customized firmware and short time to market. Our designed and manufactured, highly engineered, precision power conversion and control solutions serve mission-critical applications and processes. Through TOGT, we market and sell a line of scalable EV residential, commercial and ultra-fast charging products and comprehensive charging management software and network services. The business represents a natural outgrowth from our proprietary core power technologies to optimizing the design and performance of EV charging solutions.

Our strategy is to be the supplier of choice across numerous markets that require high-quality power system solutions where custom design, superior product, high quality, time to market and competitive prices are critical to business success. We believe that we provide advanced custom product design services to deliver high-grade products that reach a high level of efficiency and density and can meet rigorous environmental requirements. Our customers benefit from a direct relationship with us that supports all their needs for designing and manufacturing power solutions and products. By implementing our proprietary core technology, including process implementation in integrated circuits, we can provide cost reductions to our customers by replacing their existing power sources with our custom design cost-effective products.

***Factors Affecting Our Performance***

We believe that the growth of our business and our future success depend on various opportunities, challenges, trends and other factors, including the following:

⮚&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business model is evolving and we will need to invest a substantial amount of operating capital on an ongoing basis to support our EV charging solutions business. We expect to use the largest portion of any capital we may be able to raise to purchase EV components and inventory in connection with future sales and installations. To the extent that the capital expenditure requirements of our EV charging solutions business are greater than anticipated, any funds we have will be unavailable for our other operations. It is likely that we will need substantial additional funds for our working capital and capital expenditure requirements as we grow our EV charging solutions business.

⮚&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to provide our products and systems on a timely basis relies heavily on obtaining essential electronic components used not only in our products but also in our customers' products. As an electronics technology original design manufacturer ("ODM") and original equipment design manufacturer ("OEM"), we continue to face significant challenges in producing some of our products due to shortages and delays in electronic components and raw materials. Various factor, heightened demand for electronics, and disruptions in the supply chain, have led to a widespread scarcity of these crucial materials. Some of our customers face similar challenges, affecting their demand for our products promptly.

⮚&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We are still experiencing long lead times and shortages of critical components used in our products. While the global chip shortage has eased, certain high-demand components (such as power semiconductors and automotive semiconductor chips), continue to face supply bottlenecks due to limited fab capacity and ongoing geopolitical factors.

⮚Tensions between major economies (e.g., U.S.-China, Taiwan-China) have led to export controls, further restricting the availability of essential electronic components. These prolonged lead times and supply constraints have negatively impacted our operations throughout 2024, disrupting our supply chain for semiconductors, electronic components, and raw materials from key vendors.

⮚Global manufacturing operations continue to be affected by geopolitical tensions, supply chain constraints, and cost volatility. While certain supply chain disruptions, including semiconductor shortages, have moderated, availability of critical electronic components, including power semiconductors and specialized chips, remains constrained in certain markets, and lead times and pricing continue to fluctuate. In addition, global demand for materials used in electrification and advanced technologies, including lithium, copper, and rare earth elements, remains elevated. This demand, combined with geopolitical developments, trade restrictions, and resource concentration in certain regions, has contributed to ongoing price volatility and supply uncertainty. These factors have resulted in increased costs and procurement challenges across our supply chain, and such conditions may persist or worsen. Increases in material costs, component pricing, transportation expenses, and supplier pricing pressures could adversely affect our margins and ability to meet customer demand in a timely and cost-effective manner.

⮚&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To date, our operations were financed principally through investments by Hyperscale and took advantage of Hyperscale's size and purchasing power in procuring goods, technology, and services, including insurance, employee benefit support and audit, and other professional services. However, we may not have access to Hyperscale's financial and other resources in the future.

 ***Results of Operations***

***for the Years Ended December 31, 2025, and 2024***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **Change ($)** | **Change (%)** |
| &nbsp;&nbsp;&nbsp;Revenue | $7228000 | $4912000 | $2316000 | 47% |
| &nbsp;&nbsp;&nbsp;Cost of revenue | 3909000 | 2790000 | 1119000 | 40% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 3319000 | 2122000 | 1197000 | 56% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 3598000 | 3610000 | (12000) | 0% |
| &nbsp;&nbsp;&nbsp;Selling and marketing | 1055000 | 1293000 | (238000) | (18)% |
| &nbsp;&nbsp;&nbsp;Write off EV Assets | - | 763000 | (763000) | (100)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 4653000 | 5666000 | (1013000) | (18)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating loss | (1334000) | (3544000) | 2210000 | 62% |
| Other expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, related party | 583000 | 368000 | 215000 | (58)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 158000 | 56000 | 102000 | (182)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of embedded derivative liabilities | 36000 | - | 36000 | (100)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | 777000 | 424000 | 353000 | (50)% |
| Loss before income taxes | (2111000) | (3968000) | 1857000 | 47% |
| Income tax provision | 2000 | 5000 | (3000) |  |
| Net loss | (2113000) | (3973000) |  |  |

---

*Revenue and Gross Profit*

For the year ended December 31, 2025, we had increased revenues of $2,316,000 and increased gross profits of $1,197,000 compared to the year ended December 31, 2024, primarily due to a new defense customer that contributed $1,107,000 new sales and, increased sales of $729,000 from one of our existing defense industry customers and $729,000 increased sales from two of our commercial and telecom customers, somewhat offset by decreased sales of $229,000 from one of medical customers during the year ended December 31, 2025. The increase in gross profit during the year ended December 31, 2025, was negatively impacted by increased costs for components sourced from China and related tariffs.

*Net Loss and Operating Expenses* 

 ****

During the year ended December 31, 2025, our net loss before income tax provision decreased $1,857,000 from the year ended December 31, 2024. During the year ended December 31, 2025, our gross profit increased $1,197,000 as described above, our selling and marketing expenses decreased $238,000 and overhead allocation decreased $213,000 and the write off EV related assets in the prior year of $763,000. Somewhat offsetting these increases, we recognized increased interest expense of $317,000 and increased salaries and benefits expenses of $156,000.

**Liquidity and Capital Resources**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring net losses and has not generated sufficient cash flows from operations. We expect to continue incurring operating and net losses until we achieve significant product deliveries. Historically, the Company has been funded primarily by its parent and that is expected to continue. Recently, the Company has also begun to receive funding from external investors. Despite these sources of capital, there is substantial doubt about the Company's ability to continue as a going concern. The Company intends to finance its future development activities and working capital needs primarily through the sale of equity securities, supplemented by additional financing sources, including term notes, until such time as operating cash flows are sufficient to support its working capital requirements. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classifications of liabilities that may be necessary if the Company is unable to continue as a going concern. As of February 28, 2026, the Company had cash and cash equivalents of approximately $0.4 million and negative working capital of approximately $8.6 million.

***Securities Purchase Agreement***

On October 29, 2025, the Company entered into a Securities Purchase Agreement with SJC Lending LLC, pursuant to which the Company agreed to sell to SJC convertible promissory notes in the aggregate principal amount of up to $1,650,000 for a total purchase price of up to $1.5 million.

The Agreement provides that the Loan shall be conducted through seven (7) separate tranche closings, provided, that SJC has the ability, exercisable in its sole discretion, to accelerate its purchases of Convertible Notes prior to the dates of the tranche closings provided for in the Agreement.

Pursuant to the Agreement, the initial tranche closing, which occurred on October 29, 2025, consisted of the issuance of a Convertible Note to SJC in the principal face amount of $440,000 for a purchase price of $400,000. The Convertible Note accrues interest at 12% per annum and will mature October 29, 2026. The Convertible Note is convertible into shares of the Company's common stock at any time at a conversion price equal to the greater of (i) $0.035 per share, which shall not be adjusted for stock dividends, stock splits, stock combinations and other similar transactions and (ii) 20% discount to the Company's lowest VWAP (as defined in the Convertible Note) of the common stock during the ten trading days immediately prior to the date of conversion into shares of common stock.

***Critical Accounting Estimates***

Our consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet date, as well as the reported revenues and expenses recognized during the reporting period. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates, and such differences could be material to our financial statements.

***Supply Chain Constraints, Cost Increases, and Geopolitical Effects on Our Operations***

 ****

Although the broader semiconductor supply environment has improved, we continue to experience cost increases, pricing volatility, and, in certain cases, extended lead times for components and materials used in our products. In particular, the costs of key inputs, including copper, transformers, capacitors, and other passive components, have increased, driven in part by strong demand associated with artificial intelligence infrastructure, geopolitical developments, and rising labor costs. These conditions have resulted in, and may continue to result in, supplier price increases, including recent notifications of adjustments for certain products. In addition, supply-demand imbalances and capacity constraints affecting specific components and materials may continue to create variability in availability and lead times. Further, geopolitical tensions and trade policies, including export controls, tariffs, and other regulatory actions particularly involving the United States, China, and Taiwan, and some other countries may disrupt our supply chain, limit our ability to source components from certain suppliers, increase our costs, and require us to modify our sourcing strategies. Any inability to obtain components and materials on commercially reasonable terms, or at all, as well as increases in input costs or disruptions in our supply chain, could adversely affect our production schedules, margins, and ability to meet customer demand, which could have a material adverse effect on our business, results of operations, and financial condition.

***Impact of Global Trade Policies on Our Operations***

We rely upon vendors outside the U.S. for a significant amount of our products and related components. And we face resulting uncertainty and risks related to tariffs and other trade policies which will likely increase the costs of securing products from our vendors. Tariffs and other non-tariff trade practices and policies may adversely affect our business in other ways beyond increased costs for our products. Uncertainty about trade policy, tariff rates, and other changes in practices affecting international trade might have an adverse effect on our business and results of operation and we may face challenges in implementing the optimal responses to changing trade conditions. Apart from the impact of macroeconomic factors on our business operations and on general economic conditions, below are certain factors that affect our results of operations.

***Impact on Our Supply Chain*** 

Global supply chain disruptions, including component shortages, manufacturing interruptions, increased material and product costs, extended lead times, customer order delays, and customer order cancellations, have had and could continue to have a material adverse effect on our business, financial condition, and results of operations. We depend on the timely supply of materials, services, and related products to meet the demands of our customers, which depends in part on the timely delivery of materials and services from our suppliers and contract manufacturers. Global supply chain conditions in fiscal 2025 continued to be affected by geopolitical tensions, trade restrictions, export controls, inflationary pressures, and logistics disruptions. Although the global semiconductor shortage has improved compared to prior periods, shortages and extended lead times persist for certain components, including power semiconductors, specialized integrated circuits, and other critical electronic components. Increased demand driven by electrification, artificial intelligence infrastructure, and telecommunications expansion has further constrained supply. These conditions have made it more difficult for us to obtain sufficient quantities of materials on commercially reasonable terms, or at all.

We have experienced, and may continue to experience, increased costs for raw materials, including lithium, copper, and rare earth elements, as well as increased freight and logistics costs. Although cost inflation has moderated compared to prior years, costs remain elevated relative to historical levels and continue to fluctuate. Our ability to pass these increased costs on to our customers may be limited, which could adversely affect our gross margins.

Disruptions in manufacturing, delivery delays, port congestion, transportation constraints, and intermittent supplier shutdowns have resulted in additional costs, reduced availability of components, and increased variability in supply. Trade restrictions and export controls affecting semiconductors and raw materials have further contributed to supply constraints. These factors have led to fluctuations in our production levels and sales and have adversely affected our operations.

Our customers are experiencing similar supply chain challenges, which may result in delays in their production schedules, extended delivery timelines, or cancellations of orders they have placed with us. In addition, changes in customer demand, including a shift toward more customized solutions, have increased operational complexity and may adversely affect our ability to efficiently plan production and manage inventory.

Ongoing supply chain challenges, component shortages, and increased logistics costs have adversely affected our gross margins in fiscal 2025 and prior periods, and we expect that our gross margins may continue to be adversely affected by increased material costs and freight and logistics expenses for the foreseeable future. Further, any sustained slowdown in demand for electronic systems used in our customers' products, including in industrial, telecommunications, and electric vehicle markets, could adversely affect our business, financial condition, and results of operations.

These adverse impacts on our supply chain could limit our ability to manufacture and deliver our products in a timely and cost-effective manner and could materially adversely affect our business, financial condition, and results of operations.

We have implemented measures intended to mitigate these risks, including supplier diversification, alternative sourcing, product redesign, inventory management initiatives, manufacturing partner optimization, and pricing adjustments. However, these measures may not be effective, and there can be no assurance that they will be sufficient to offset the impact of current or future supply chain disruptions and revenue fluctuations affecting us and our customers.

***Recently Issued Accounting Pronouncements***

The Company has implemented all the new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

The Company is a smaller reporting company as defined in Rule 12b-2 under the Exchange Act. As a result, pursuant to Item 305(e) of Regulation S-K, the Company is not required to provide the information required by this Item.

**ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

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| | |
|:---|:---|
|  | Page<br> No . |
| Report of Independent Registered Public Accounting Firm – CBIZ CPAs P.C. (PCAOB ID Number 199) | F-2 |
| Report of Independent Registered Public Accounting Firm - Marcum LLP (PCAOB ID Number 688) | F-4 |
| Consolidated Balance Sheets as of December 31, 2025, and 2024 | F-6 |
| Consolidated Statements of Operations for the Years Ended December 31, 2025, and 2024&nbsp;&nbsp;&nbsp;&nbsp; | F-7 |
| Consolidated Statement of Changes in Shareholders' Deficit for the Years Ended December 31, 2025, and 2024 | F-8 |
| Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, and 2024 | F-9 |
| Notes to the Consolidated Financial Statements | F-10 |

---

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and Board of Directors of

TurnOnGreen, Inc. and Subsidiaries

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheet of TurnOnGreen, Inc. (the "Company") as of December 31, 2025, the related consolidated statements of operations, changes in shareholders' deficit and cash flows for the year ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flow for the year ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited the adjustments to the 2024 consolidated financial statements to retrospectively apply the change in accounting for income taxes as a result of the adoption of Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, as described in Note 2 and 14. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review, or apply any procedures to the 2024 consolidated financial statements of the Company other than with respect to these adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2024 consolidated financial statements taken as a whole.

**Explanatory Paragraph – Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 3, the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ CBIZ CPAs P.C.

CBIZ CPAs P.C.

We have served as the Company's auditor since 2021. (such date takes into account the acquisition of the attest business of Marcum llp by CBIZ CPAs P.C. effective November 1, 2024).

New York, NY

March 31, 2026

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of

TurnOnGreen, Inc. and Subsidiaries

**Opinion on the Financial Statements**

We have audited, before the effects of the retrospective adjustments for the impact of the adoption of ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09") as discussed in Note 2 and 14 to the consolidated financial statements, the accompanying consolidated balance sheet of TurnOnGreen, Inc. (the "Company") as of December 31, 2024, the related consolidated statements of operations, changes in shareholders' deficit and cash flows for the year in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements, before the effects of the ASU 2023-09, present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flow for the year in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

We were not engaged to audit, review, or apply any procedures to ASU 2023-09 and, accordingly, we do not express an opinion or any other form of assurance about whether such adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by CBIZ CPAs P.C.

**Explanatory Paragraph – Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 3, the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Marcum llp

Marcum llp

We have served as the Company's auditor since 2021.

New York, NY

April 23, 2025

**TURNONGREEN, INC. AND SUBSIDIARIES** 

**CONSOLIDATED BALANCE SHEETS** 

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| **CURRENT ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $65000 | $27000 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 1434000 | 730000 |
| &nbsp;&nbsp;&nbsp;Inventories | 984000 | 890000 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 90000 | 107000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL CURRENT ASSETS** | **2573000** | **1754000** |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 159000 | 154000 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 45000 | 567000 |
| &nbsp;&nbsp;&nbsp;Other noncurrent assets | 450000 | 270000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $**3227000** | $**2745000** |
| **LIABILITIES AND SHAREHOLDERS' DEFICIT** |  |  |
| **CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other current liabilities | $1312000 | $1376000 |
| &nbsp;&nbsp;&nbsp;Convertible notes payable | 557000 |  |
| &nbsp;&nbsp;&nbsp;Lawsuit liability | 1157000 | 1122000 |
| &nbsp;&nbsp;&nbsp;Operating lease liability, current | 51000 | 581000 |
| &nbsp;&nbsp;&nbsp;Related party notes and advances payable | 7854000 | 5185000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL CURRENT LIABILITIES** | **10931000** | **8264000** |
| **LONG TERM LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease liability, non-current |  | 50000 |
| &nbsp;&nbsp;&nbsp;Other long term liabilities | 138000 | 163000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | **11069000** | **8477000** |
| **COMMITMENTS AND CONTINGENCIES (NOTE 16)** |  |  |
| **CONVERTIBLE REDEEMABLE PREFERRED STOCK** |  |  |
| Preferred stock series A subject to possible redemption, 50,000,000 shares authorized: 25,000 issued and outstanding at stated redemption value of $1,000 per share as of December 31, 2025 and December 31, 2024 | 25000000 | 25000000 |
| **SHAREHOLDERS' DEFICIT:** |  |  |
| Common Stock, par value $0.001 a share; 2,000,000,000 shares authorized as of <br> December 31, 2025 and December 31, 2024: 183,983,122 shares <br> issued and outstanding on December 31, 2025, and 183,949,923 as of December 31, <br> 2024, respectively | 184000 | 184000 |
| Additional paid-in capital | 16174000 | 16171000 |
| Accumulated deficit | (49200000) | (47087000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL SHAREHOLDERS' DEFICIT** | **(32842000)** | **(30732000)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS' DEFICIT** | $**3227000** | $**2745000** |

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The accompanying notes are an integral part of these consolidated financial statements.

**TURNONGREEN, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
| Revenue | $7228000 | $4912000 |
| Cost of revenue | 3909000 | 2790000 |
| Gross profit | 3319000 | 2122000 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administration | 3598000 | 3610000 |
| &nbsp;&nbsp;&nbsp;Selling and marketing | 1055000 | 1293000 |
| &nbsp;&nbsp;&nbsp;Write off EV assets | - | 763000 |
| Total operating expenses | 4653000 | 5666000 |
| Operating loss | (1334000) | (3544000) |
| Other expense: |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, related party | 583000 | 368000 |
| &nbsp;&nbsp;&nbsp;Interest expense | 158000 | 56000 |
| &nbsp;&nbsp;&nbsp;Change in fair value of embedded derivative liabilities | 36000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | 777000 | 424000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (2111000) | (3968000) |
| Income tax provision | 2000 | 5000 |
| Net loss | $(2113000) | $(3973000) |
| Net loss per common share basic and diluted: | $(0.01) | $(0.02) |
| Weighted average common shares, basic and diluted | 183982485 | 183944607 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**TURNONGREEN, INC. AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid in <br> Capital** |<br>**Accumulated <br> Deficit** | **Total**<br>**Shareholders' <br> Deficit** |
| Balance, January 1, 2025 | 183949923 | $184000 | $16171000 | $(47087000) | $(30732000) |
| Common stock issued upon exercise of warrants | 33199 |  | 3000 |  | 3000 |
| Net loss | - | - | - | (2113000) | (2113000) |
| Balance, December 31, 2025 | 183983122 | $184000 | $16174000 | $(49200000) | $(32842000) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid in <br> Capital** |<br>**Accumulated <br> Deficit** | **Total**<br>**Shareholders' <br> Deficit** |
| Balance, January 1, 2024 | 183941422 | $184000 | $13504000 | $(43114000) | $(29426000) |
| Common stock issued upon exercise of warrants | 8501 |  |  |  |  |
| Preferred dividends - forgiveness |  |  | 2667000 |  | 2667000 |
| Net loss | - | - | - | (3973000) | (3973000) |
| Balance, December 31, 2024 | 183949923 | $184000 | $16171000 | $(47087000) | $(30732000) |

---

The accompanying notes are an integral part of these consolidated financial statements.

**TURNONGREEN, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF CASH FLOWS** 

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **Cash flows from operating activities:** | **2025** | **2024** |
| Net loss | $(2113000) | $(3973000) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 56000 | 94000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 522000 | 566000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 7000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write off EV assets |  | 763000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory adjustment |  | 270000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of embedded derivative liabilities | 150000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (704000) | 236000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (144000) | (88000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (94000) | 179000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (298000) | (85000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 269000 | (66000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease and other liabilities | (605000) | (561000) |
| **Net cash used in operating activities** | (2954000) | (2665000) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (80000) | (42000) |
| **Cash used in investing activities** | (80000) | (42000) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from related party advances, net of payments | 2669000 | 2713000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from warrant exercises | 3000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible note payable | 400000 | - |
| **Net cash provided by financing activities** | 3072000 | 2713000 |
| Net decrease in cash and cash equivalents | 38000 | 6000 |
| Cash at beginning of period | 27000 | 21000 |
| Cash at end of period | $65000 | $27000 |
| Supplemental disclosures of cash flow information |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $13000 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for state income taxes | $2000 | $5000 |
| Non-cash investing and financing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forgiveness of accrued dividends | $- | $2667000 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**TURNONGREEN, INC. AND SUBSIDIARIES** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**DECEMBER 31, 2025**

**1. DESCRIPTION OF BUSINESS**

***Overview***

 ****

TurnOnGreen, Inc., a Nevada corporation ("TOG"), through its wholly owned subsidiaries Digital Power Corporation ("Digital Power") and TOG Technologies Inc. ("TOGT," and together with Digital Power, the "Company"), is an emerging provider of premium power electronic and electric vehicle ("EV") charging solutions. The Company designs, develops, manufactures, and sells highly engineered, feature-rich, high-grade power conversion systems and power solutions for mission-critical, life-sustaining, and lifesaving applications across a variety of sectors, particularly those operating in demanding and harsh environments. We serve a broad range of markets, including defense and aerospace, medical and healthcare, industrial applications, telecommunications, e-Mobility, and OEM solutions. Our products are highly adaptive, featuring customized firmware meticulously configured to meet the specific requirements and challenges of our customers' applications. In addition, we provide comprehensive EV charging infrastructure and subscription-based charging network management services for residential, fleet, hospitality, workplace, healthcare, municipal, and educational environments including universities and schools.

**2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

 

The accompanying consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). References to GAAP issued by the Financial Accounting Standards Board ("FASB") in these notes to the consolidated financial statements are to the FASB Accounting Standards Codification ("ASC"). The consolidated financial statements include the accounts of the Company and its subsidiaries, and all intercompany transactions have been eliminated in consolidation. All significant intercompany accounts have been eliminated in consolidation.

***Accounting Estimates***

The preparation of financial statements, in conformity with GAAP, requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments, and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Key estimates include net realizable inventory value and useful lives of asset.

 ***Revenue Recognition***

The Company recognizes revenue under ASC 606, *Revenue from Contracts with Customers*. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

&nbsp;&nbsp;&nbsp;&nbsp;· Step 1: Identify the contract with the customer,

&nbsp;&nbsp;&nbsp;&nbsp;· Step 2: Identify the performance obligations in the contract,

&nbsp;&nbsp;&nbsp;&nbsp;· Step 3: Determine the transaction price,

&nbsp;&nbsp;&nbsp;&nbsp;· Step 4: Allocate the transaction price to the performance obligations in the contract, and

&nbsp;&nbsp;&nbsp;&nbsp;· Step 5: Recognize revenue when the company satisfies a performance obligation.

*The Company recognizes revenue primarily from four different types of contracts:*

 

&nbsp;&nbsp;&nbsp;&nbsp;· Product sales and installation - The Company generates revenues from the sale of its products through
a direct and indirect sales force and primarily receives fixed consideration for sales of products. Some contracts contain a combination
of product sales with a service such as installation of the products, which is expected to be performed in the near term. Such services
are distinct and accounted for as separate performance obligations. For sales, the Company's performance obligations to deliver
products are satisfied at the point in time when products are shipped to the customer, which is when the customer obtains control over
the goods. The installation service on these types of contracts is usually completed within six to twelve weeks.

&nbsp;&nbsp;&nbsp;&nbsp;· The Company recognizes installation service revenue over time using the cost-to-cost measure of progress,
which measures an installation obligation's progress toward completion based on the ratio of actual contract costs incurred to date
to the Company's estimated costs at completion. Significant judgment may be required by management in the cost estimation process
for these contracts, which is based on the knowledge and experience of the Company's project managers, subcontractors and financial
professionals. Total estimated costs to complete projects include direct labor, material, permits and subcontractor costs.

The Company also provides standard assurance warranties on product functionality, which are not separately priced or considered material.

Some of the Company's contracts with distributors include stock rotation rights after six months for slow-moving inventory, which represents variable consideration. The Company uses an expected value method to estimate variable consideration and constrains revenue for estimated stock rotations until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. To date, returns have been insignificant.

 

Because the Company's product sales agreements have an expected duration of one year or less, the Company has elected to adopt the practical expedient in ASC 606-10-50-14(a) of not disclosing information about its remaining performance obligations.

***Sales Tax Collected from Customers***

As a part of the Company's normal course of business, sales taxes are collected from customers in accordance with local regulations. Sales taxes collected are remitted, in a timely manner, to the appropriate governmental tax authority on behalf of the customer. The Company's policy is to present revenue and costs net of sales taxes.

***Deferred Revenue***

Deferred revenue consists of billings on contracts where performance has commenced, and payments have been received in advance of revenue recognition. Deferred revenue is recognized in revenue as the related revenue recognition criteria are met.

 ****

***Cash and Cash Equivalents***

The Company's cash is maintained in checking accounts with reputable financial institutions. These balances may, at times, exceed the U.S. Federal Deposit Insurance Corporation insurance limits. As of December 31, 2025, the Company had cash of $65,000. The Company has not experienced any losses on deposits of cash and cash equivalents.

***Accounts Receivable and Allowance for Credit Losses***

The Company's receivables are recorded when invoiced and represent claims against third parties that will be settled in cash. The Company records accounts receivable at the invoiced amount less an allowance for any potentially uncollectible accounts under the current expected credit loss impairment model and discloses the net amount of the financial instrument expected to be collected. The Company estimates the allowance for credit losses based on an ongoing review of existing economic conditions, the financial conditions of the customers, historical trends in credit losses, and the amount and age of past due accounts. Past-due receivable balances are written off when the Company's internal collection efforts have been unsuccessful in collecting the amount due.

***Leases***

 ****

The Company accounts for its leases under ASC 842, *Leases*. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases. Operating leases are recognized as Right-of-use ("ROU") assets, Operating lease liability, current, and Operating lease liability, non-current on the consolidated balance sheets. Lease assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In certain of the lease agreements, the Company receives rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis over the lease term without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the life of the lease, without assuming renewal features, if any, are exercised. The Company elected the practical expedient in ASC 842 and does not separate lease and non-lease components for any of its leases.

 ****

 ****

***Inventory***

Inventories, inclusive of raw materials and finished goods, are valued at the lower cost or net realizable value after using the first-in, first-out method. Management compares the cost of inventory with the net realizable value and adjustments are made for writing down inventory to net realizable value, if lower.

The Company periodically assesses its inventories valuation with respect to obsolete items by reviewing revenue forecasts and technological obsolescence and moving such items into a reserve for obsolescence. When inventories on hand exceed the foreseeable demand or become obsolete, the value of excess inventory, which at the time of the review was not expected to be sold, is written off.

 ***Property and Equipment, Net***

Property and equipment are stated at cost, net of accumulated depreciation. Major additions and improvements are capitalized, while replacements, maintenance and repairs, which do not improve or extend the life of the respective assets, are expensed as incurred. When property and equipment is retired or otherwise disposed of the cost and accumulated depreciation are removed from the related accounts and any resulting gain or loss is included in the results of operations for the respective period.

  ****

***Warranty***

The Company offers a warranty period for all its manufactured products to function free from defects in material and workmanship under normal use and service for one to two years on most products and up to five years for rugged power products for the defense and aerospace markets. For the Company's electric vehicle supply equipment product line, the Company offers up to a three-year extended warranty beyond the manufacturing warranty period, although not considered material to its revenue stream. The Company also provides end user technical support for up to fifteen (15) years on many of its products that have long lifetimes. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company's warranty liability include the number of units sold, the sector product being used, historical rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability.

***Litigation***

 ****

The Company records an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when it considers it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

***Income Taxes***

The Company determines its income taxes under the asset and liability method in accordance with ASC No. 740, *Income Taxes*, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Consolidated Statements of Operations in the period that includes the enactment date.

The Company accounts for uncertain tax positions in accordance with ASC No. 740-10-25**.** ASC No. 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC No. 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. To the extent that the final tax outcome of these matters is different than the amount recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. ASC No. 740-10-25 also requires management to evaluate tax positions taken by the Company and recognize a liability if the Company has taken uncertain tax positions that more likely than not would not be sustained upon examination by applicable taxing authorities. Management of the Company has evaluated tax positions taken by the Company and has concluded that as of December 31, 2025, and December 31, 2024, there were no uncertain tax positions taken, or expected to be taken, that would require recognition of a liability that would require disclosure in the financial statements.

 ***Impairment of Long-lived Assets***

The Company analyzes its long-lived assets for potential impairment at least annually or when changes in circumstances indicate a possibility of impairment. Impairment losses are recorded on long-lived assets when indicators of impairment are present. When the carrying value of an asset exceeds the associated undiscounted expected future cash flows, it is considered to be impaired and is written down to fair value.

 ****

 ****

***Segments***

The Company determined that its two primary brands constitute its two operating segments. However, the Company's operating segments continue to be aggregated into one reportable segment based on the similarity in economic characteristics, other qualitative factors and the objectives and principles of ASC 280, *Segment Reporting*.

***Receivables and Concentration of Credit Risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and trade receivables.

Trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located primarily in the U.S. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses.

***Preferred Shares***

The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) are classified as temporary equity.

***New Accounting Guidance – Recently Adopted***

On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The new standard is effective for the Company for the fiscal year beginning after 15 December 2023, and interim periods within fiscal years beginning after 15 December 2024. The Company adopted ASU No. 2023-07 during the fiscal year ended December 31, 2024, and the adoption did not result in any material changes to the consolidated financial statements.

On December 14, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The Company retrospectively adopted ASU 2023-09 as required for the year ending December 31, 2025. The adoption of ASU 2023-09 did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows, as the standard primarily expands disclosure requirements.

***Recent Accounting Pronouncements not yet Adopted***

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement may affect the Company's financial reporting, the Company undertakes an analysis to determine any required changes to its Consolidated Financial Statements.

In December 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income- Expense Disaggregation Disclosures (ASU 2024-03). ASU 2024-03 requires disclosure of specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods. The objective of the disclosure requirements is to provide disaggregated information to help financial statement users (a) better understand the Company's performance, (b) better assess the Company's prospects for future cash flows, and (c) compare the Company's performance over time and with that of other entities. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. We are currently evaluating the impact that this guidance will have on our consolidated financial statements.

**3. GOING CONCERN**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring net losses and operations have not provided sufficient cash flows. The Company believes that it will continue to incur operating and net losses each quarter until at least the time it begins significant deliveries of its products. The Company's inability to continue as a going concern could have a negative impact on the Company, including its ability to obtain needed financing, and could adversely affect the trading price of the Company's common stock. These factors create substantial doubt about the Company's ability to continue as a going concern for at least one year after the date that the Company's audited consolidated Financial Statements are issued. The Company intends to finance its future development activities and its working capital needs largely through the sale of equity securities with some additional funding from other sources, including term notes until such time as funds provided by operations are sufficient to fund working capital requirements.

The consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

**4. REVENUE DISAGGREGATION**

The Company's disaggregated revenues consisted of the following:

---

| | | |
|:---|:---|:---|
| **** |  |  |
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
| **Primary Geographical Markets** |  |  |
| North America | $6793000 | $4839000 |
| Other | 435000 | 73000 |
| &nbsp;&nbsp;&nbsp;Total Revenue | $7228000 | $4912000 |
| **Major Goods** |  |  |
| Power supply units | $6025000 | $4501000 |
| EV chargers | 1203000 | 411000 |
| &nbsp;&nbsp;&nbsp;Total Revenue | $7228000 | $4912000 |
| **Timing of Revenue Recognition** |  |  |
| Goods transferred at a point in time | $7151000 | $4865000 |
| Revenue recognized over time | 77000 | 47000 |
| &nbsp;&nbsp;&nbsp;Total Revenue | $7228000 | $4912000 |

---

***Customer advances***

We defer revenues when cash payments are received in advance of our performance obligation required under the guidelines of ASC 606. The revenue is recognized upon completion of our related performance obligations, typically within twelve months following receipt of the customer advances. Customer advances are recorded in the accounts payable, accrued expenses and other current liabilities line of the consolidated balance sheets.

Customer advances consisted of the following:

---

| | |
|:---|:---|
|  | **Customer advances** |
| Balance, December 31, 2024 | $125000 |
| Advances received | 1403000 |
| Revenue recognized | (1018000) |
| Advances refunded | (305000) |
| Balance, December 31, 2025 | $205000 |

---

The Company's related party sales consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
| **Related Party** |  |  |
| Subsidiaries of Hyperscale | $- | $28000 |

---

The following table provides the percentage of total revenue attributable to a single customer from which 10% or more of total revenue is derived:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Total Revenue**<br>**by Major**<br>**Customers** | **Percentage of**<br>**Total Company**<br>**Revenue** | **Total Revenue**<br>**by Major**<br>**Customer** | **Percentage of**<br>**Total Company**<br>**Revenue** |
| Customer A | $1709000 | 24% | $1721000 | 35% |
| Customer B | $1107000 | 15% | $&nbsp;&nbsp;&nbsp;&nbsp;- | -% |
| Customer C | $865000 | 12% | $- | -% |

---

**5. FAIR VALUE OF FINANCIAL INSTRUMENTS**

The following table sets forth the Company's financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2025 (no material financial instruments were measured at fair value on a recurring basis at December 31, 2024):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| Embedded conversion feature liabilities | $150000 | $- | $- | $150000 |

---

The embedded conversion feature liabilities are included in the convertible notes payable line of the consolidated balance sheets.

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management's determination of fair value is based on the best available information which may incorporate management's own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer's securities and liquidity risks.

The changes in Level 3 fair value hierarchy during the year ended December 31, 2025, were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Level 3 Balance at <br> Beginning of Year** | **Fair Value <br> Adjustments** | **Sales and <br> Settlement** | **Grants** | **Level 3 <br> Balance at <br> End of <br> Year** |
| Embedded conversion feature liabilities | $– $| 36000 | $– $| 114000 | $150000 |

---

**6. TRADE RECEIVABLES**

The following table provides the percentage of total trade receivables attributable to a single customer that accounted for 10% or more of the Company's outstanding receivables:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Trade Receivables**<br>**by Major**<br>**Customer** | **Percentage of**<br>**Total Trade**<br>**Receivables** | **Total Receivables**<br>**by Major**<br>**Customer** | **Percentage of**<br>**Total Trade**<br>**Receivables** |
| Customer A | $501000 | 35% | $346000 | 47% |
| Customer B | $244000 | 17% |  | -% |
| Customer C | $- | -% | $91000 | 12% |

---

***Related party receivables***

 ****

As of December 31, 2025, and 2024, the Company had related party receivables of $- and $17,000, respectively.

 **7. WRITE OFF EV-RELATED ASSETS**

During the year ended December 31, 2024, the Company performed a review of the carrying value of assets associated with its EV charging business based on current demand trends and sales activity. As a result of this assessment, the Company recorded a write-off of approximately $763,000 related primarily to certain prepaid and fixed assets.

**8. PROPERTY AND EQUIPMENT**

As of December 31, 2025, and 2024, property and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Machinery and equipment | $648000 | $648000 |
| Leasehold improvements, furniture and equipment | 304000 | 221000 |
|  | 952000 | 869000 |
| Less: accumulated depreciation and amortization | (793000) | (715000) |
| Property and equipment, net | $159000 | $154000 |

---

Depreciation and amortization expense related to property and equipment was $56,000 and $94,000 for the years ended December 31, 2025, and 2024, respectively.

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following rates:

---

| | |
|:---|:---|
| <br>**Asset** | **Useful Lives**<br>**(In Years)** |
| Computer software and office and computer equipment | 3 – 5 |
| Machinery and equipment, automobiles, furniture, and fixtures | 3 – 15 |
| Leasehold improvements | Over the term of the lease or the life of the asset, whichever is shorter |

---

**9. INVENTORIES**

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

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Finished products | $296000 | $416000 |
| Raw materials, parts and supplies | 688000 | 474000 |
| Total inventories | $984000 | $890000 |

---

**10. CONVERTIBLE NOTES PAYABLE**

Convertible notes payable were comprised of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Conversion <br> price per <br> share** | **Interest<br> rate** | **Effective<br> rate(1)** | **Due <br> date** | **December <br> 31, 2025** | **December <br> 31, 2024** |
| SJC convertible promissory note | 80% of 10-day VWAP | 12% | 21% | October 29, 2026 | $440000 | $- |
| Fair value of embedded conversion options |  |  |  |  | 150000 |  |
| Less: unamortized debt discounts |  |  |  |  | 33000 | - |
| Total convertible notes payable, net of financing cost, long-term |  |  |  |  | $557000 | $- |
| Less: current portion |  |  |  |  | 557000 |  |
| Convertible notes payable, net of financing cost – long-term portion |  |  |  |  | $- | $- |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes OID costs that are amortized to interest expense over the life of the notes.

***SJC Convertible Promissory Note***

On October 29, 2025, the Company entered into a Securities Purchase Agreement ("Agreement") with SJC Lending LLC ("SJC"), pursuant to which the Company agreed to sell to SJC convertible promissory notes in the aggregate principal amount of up to $1,650,000 (the "Convertible Notes") for a total purchase price of up to $1.5 million (the "Loan"). The Agreement provides that the Loan shall be conducted through seven (7) separate tranche closings, provided, that SJC has the ability, exercisable in its sole discretion, to accelerate its purchases of Convertible Notes prior to the dates of the tranche closings provided for in the Agreement (See Note 17).

Pursuant to the Agreement, the initial tranche closing, which occurred on October 29, 2025, consisted of the issuance of a Convertible Note to SJC in the principal face amount of $440,000 for a purchase price of $400,000. The Convertible Note accrues interest at 12% per annum and will mature October 28, 2026. The note was issued with an original issue discount of 10%.

SJC entered into various collateral agreements in support of the convertible notes including (i) an intellectual property security agreement pursuant to which the Company and its subsidiaries granted SJC a continuing security interest in certain trademarks, copyrights, patents and mask works (ii) a security agreement pursuant to which the Company and its subsidiaries granted SJC a security interest in substantially all of their respective assets as collateral for repayment of the convertible notes and (iii) a pledge agreement pursuant to which the Company pledged the capital stock of the Company's subsidiaries as additional collateral.

***Embedded Derivative***

The Company identified embedded derivative features within certain convertible promissory notes issued on October 29, 2025, that required bifurcation and separate accounting as derivative liabilities under Accounting Standards Codification ("ASC") 815, Derivatives and Hedging Activities. Specifically, the embedded conversion options associated with the SJC convertible promissory note was determined to meet the criteria for derivative classification.

The fair value of the embedded derivative liabilities was estimated using a Monte Carlo simulation model. The model incorporates key assumptions including the Company's stock price, risk-free interest rate, expected volatility, credit-risk adjusted discount rate, and the specific terms of each conversion feature (including floor price, cap, and VWAP-based pricing). Due to the significant use of unobservable inputs, these derivative liabilities are classified within Level 3 of the fair value hierarchy.

The following table summarizes the key inputs used in the valuation of the embedded derivatives at inception and on December 31, 2025:

---

| | | |
|:---|:---|:---|
| **Assumption** | **October 29, 2025** | **December 31, 2025** |
| Valuation technique | Monte Carlo Simulation | Monte Carlo Simulation |
| Risk-free interest rate (cont. comp.) | 4% | 3% |
| Expected volatility | 95% | 105% |
| Credit-risk adjusted rate | 22% | 26% |
| Time to maturity (years) | 1 | 0.83 |
| Stock price at valuation date | $0.05 | $0.07 |
| Dividend yield | 0.00% | 0.00% |

---

The Monte Carlo simulation utilized 100,000 iterations and incorporated conversion mechanics, including the floor price and the VWAP-based conversion price as defined in the agreement. The incremental value attributable to the conversion feature was isolated to determine its impact on the overall fair value of the embedded option.

**11. 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 $1.1 million for this judgement as of December 31, 2025, and 2024 in the consolidated balance sheets. Interest expense related to the liability was $29,000 and $56,000 for the years ended December 31, 2025, and 2024, respectively.

**12. LEASES**

***Office and Warehouse Leases***

During the year ended December 31, 2024, the Company was a lessee as well as a sublessor for a certain office space lease. No residual value guarantees had been provided by the sublessee. For the year ended December 31, 2024, the Company recognized income related to the sublease of $91,000. The sublease expired November 30, 2024. Fixed sublease payments received were recognized on a straight-line basis over the sublease term and netted against operating lease expenses.

The Company leases offices and warehouse space under an operating lease requiring periodic payments. The following table provides a summary of leases by balance sheet category as of December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Operating right-of-use assets | $45000 | $567000 |
| Operating lease liability – current | 51000 | 581000 |
| Operating lease liability – non-current |  | 50000 |

---

The components of lease expenses recorded within operating expenses on the Company's consolidated statements of operations for the years ended December 31, 2025, and 2024, were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Operating lease costs | $550000 | $649000 |
| &nbsp;&nbsp;&nbsp;Less: Sublease income |  | (91000) |
| &nbsp;&nbsp;&nbsp;Total | $550000 | $558000 |

---

The following tables provides a summary of other information related to leases for the year ended December 31, 2025:

---

| | |
|:---|:---|
|  | **December 31, 2025** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |
| Operating cash flows related to operating leases | $609000 |
| Right-of-use assets obtained in exchange for new operating lease liabilities |  |
| Weighted-average remaining lease term – operating leases | .1 years |
| Weighted-average discount rate – operating leases | 8% |

---

Payments due by period of lease liabilities under the Company's non-cancellable operating lease as of December 31, 2025, were as follows:

---

| | |
|:---|:---|
| 2026 | $51000 |
| Total lease payments | 51000 |
| Less interest | - |
| Present value of lease liabilities | $51000 |

---

**13. RELATED PARTY TRANSACTIONS**

The Company is an indirect subsidiary of Hyperscale Data, Inc. ("Hyperscale"), and as a result Hyperscale is deemed a related party.

 ****

***Allocation of General Corporate Expenses***

Hyperscale provides human resources, accounting and other services to the Company, which are included as allocations of these expenses. The allocation method calculates an appropriate share of overhead costs by using Company revenue as a percentage of total revenue. This method is reasonable and consistently applied. Costs incurred in connection with the allocation of these costs are reflected in selling, general and administrative of $196,000 and $401,000 for the fiscal year end December 31, 2025, and 2024, respectively and were recorded in Hyperscale advance payable.

***Related Party Notes and Advances Payable***

 ****

Related party notes and advances payable were used for working capital purposes and were comprised of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Interest <br> rate** | **Due date** | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Hyperscale advance payable | 10% |  | $7803000 | $5118000 |
| Chief Executive Officer | 14% and 22% | Default | 51000 | 46000 |
| Non-officer advance payable |  |  | - | 21000 |
| &nbsp;&nbsp;&nbsp;Total related party notes and advances payable |  |  | $7854000 | $5185000 |

---

On September 26, 2024, the Company entered into an Amendment to the Loan and Security Agreement (the "Amendment") with Hyperscale dated August 15, 2023 (the "Credit Agreement"). The Credit Agreement provided for a secured, non-revolving credit facility with an aggregate principal amount of up to $2,000,000 (the "Credit Limit") through December 31, 2023 (the "Credit Termination Date"). All loans under the Credit Agreement (collectively, the "Advances") were payable within five business days of a request by Hyperscale, and Hyperscale was not obligated to provide any further Advances after the Credit Termination Date.

Pursuant to the Amendment, the Company and Hyperscale have agreed to, among other things, amend the Credit Agreement to increase the Credit Limit to $8,000,000, extend the Credit Termination Date to December 31, 2026, and provide for additional loans made in excess of the initial Credit Limit to become Advances.

The Company recorded related party interest expense of $583,000 and $368,000 for the years ended December 31, 2025, and 2024, respectively in interest expense, related party.

**14. INCOME TAXES**

The following is a geographical breakdown of loss before the provision for income tax, for the years ended December 31, 2025, and 2024.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Pre-tax loss |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Federal | $(2111000) | $(3968000) |
| &nbsp;&nbsp;&nbsp;Foreign | - | - |
| Total | $(2111000) | $(3968000) |

---

The federal and state income tax (provision) benefit is summarized as:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Current |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Federal | $- | $- |
| &nbsp;&nbsp;&nbsp;U.S. State | 2000 | 5000 |
| &nbsp;&nbsp;&nbsp;Foreign | - | - |
| Total current provision | 2000 | 5000 |
| Deferred |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Federal |  |  |
| &nbsp;&nbsp;&nbsp;U.S. State |  |  |
| &nbsp;&nbsp;&nbsp;Foreign | - | - |
| Total deferred provision (benefit) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision (benefit) for income taxes | $2000 | $5000 |

---

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes and (b) operating losses and tax credit carryforwards. Significant components of the Company's deferred taxes as of December 31 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Deferred tax asset: |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss | $7829000 | $7396000 |
| &nbsp;&nbsp;&nbsp;Intangible asset basis | 99000 | 113000 |
| &nbsp;&nbsp;&nbsp;Deferred rent liability | 14000 | 177000 |
| &nbsp;&nbsp;&nbsp;Inventory adjustments | 380000 | 375000 |
| &nbsp;&nbsp;&nbsp;R&D capitalization | 70000 | 102000 |
| &nbsp;&nbsp;&nbsp;Asset retirement obligation | 8000 | 7000 |
| &nbsp;&nbsp;&nbsp;Settlement liability | 298000 | 298000 |
| &nbsp;&nbsp;&nbsp;Accrued warranty | 13000 | 13000 |
| &nbsp;&nbsp;&nbsp;Accrued salaries | 90000 | 69000 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 75000 | 35000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 281000 | 122000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivatives | 10000 | - |
| Total deferred tax asset | 9167000 | 8707000 |
| Deferred tax liability: |  |  |
| &nbsp;&nbsp;&nbsp;ROU assets | (8000) | (159000) |
| &nbsp;&nbsp;&nbsp;Fixed asset basis | (13000) | (90000) |
| Total deferred income tax liabilities | (21000) | (249000) |
| Net deferred income tax assets | 9146000 | 8458000 |
| Valuation allowance | (9146000) | (8458000) |
| Deferred tax asset (liability), net | $- | $- |

---

Events which may restrict utilization of a company's net operating loss and credit carryforwards include, but are not limited to, certain ownership change limitations as defined in Internal Revenue Code Section *382* and similar state provisions. In the event the Company has had a change of ownership, utilization of carryforwards could be restricted to an annual limitation. The annual limitation may result in the expiration of net operating loss carryforwards before utilization. The Company has not undertaken a study to determine if its net operating losses are limited. In the event the Company previously experienced an ownership change, or should experience an ownership change in the future, the amount of net operating loss carryovers available in any taxable year could be limited and may expire unutilized. The impact of any such limitations or expirations would not have a material impact on the financials since all the deferred tax assets for the Company's attributes are fully offset by a valuation allowance.

ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is "more likely than not." Realization of the future tax benefits is dependent on the Company's ability to generate sufficient taxable income within the carryforward period. Because of the Company's recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance.

The valuation allowance increased by $688,000, and $929,000 during the years ended December 31, 2025, and 2024, respectively. Net operating losses and tax credit carryforwards as of December 31, 2025, and 2024 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2025 Amount** | **Expiration Years** |
| Net operating losses, federal (Post December 31, 2017) | $19189000 | Do Not Expire |
| Net operating losses, federal (Pre-January 1, 2018) | 8058000 | 2026 to 2037 |
| Net operating losses, state | 30180000 | 2029 to 2044 |

---

---

| | | |
|:---|:---|:---|
|  | **2024 Amount** | **Expiration Years** |
| Net operating losses, federal (Post December 31, 2017) | $16415000 | Do Not Expire |
| Net operating losses, federal (Pre-January 1, 2018) | 9263000 | 2025 to 2037 |
| Net operating losses, state | 28697000 | 2029 to 2043 |

---

The effective tax rate of the Company's provision (benefit) for income taxes as of December 31, differed from the federal statutory rate as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
| Tax computed at the federal statutory rate | $(443000) | 21.00% | $(772000) | 21.00% |
| State and local income tax (net of FBOS) | 41000 | -1.94% | 72000 | -1.97% |
| Change in Valuation Allowance | 466000 | -22.09% | 553000 | -15.04% |
| Nontaxable or nondeductible items | 1000 | -0.09% | 3000 | -0.05% |
| NOL Expiration |  | 0.00% | 190000 | -5.17% |
| Prior Year True-Up | (63000) | 3.00% | (41000) | 1.11% |
| Total | $2000 | -0.11% | $5000 | -0.13% |

---

The Company's statute of limitations remains open for various taxable years in various U.S. federal and California jurisdictions.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, restoring the immediate deductibility of domestic Section 174 research and experimental expenditures for tax years beginning in 2025 and reinstating 100% bonus depreciation. The Company evaluated the impact of the legislation and determined it does not have a material effect on its consolidated financial statements. The Company elected to continue amortizing Section 174 costs capitalized in 2022 through 2024 over their remaining amortization periods rather than taking a full deduction in 2025.

**15. LOSS PER SHARE**

In accordance with ASC 260, *Earnings Per Share*, the basic loss per common share is computed by dividing the net loss available to common shareholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

The Company excluded the potential common stock equivalents outstanding from the calculation of diluted weighted average net loss per share for each of the years ended December 31, 2025, and 2024, which would be anti-dilutive due to the net loss from continuing operations in those periods.

Anti-dilutive securities, which are convertible into or exercisable for the Company's common stock, consisted of the following as of December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Warrants | 140923000 | 140956000 |
| Convertible notes payable | 10659000 |  |
| Convertible preferred stock | 1250000000 | 1250000000 |
| Total | 1401582000 | 1390956000 |

---

**16. COMMITMENTS AND CONTINGENCIES**

***Litigation Matters***

 

The Company is involved in litigation arising from other matters in the ordinary course of business. The Company is regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences.

Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. The Company records an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when we consider it is probable that a liability has been incurred, and the amount of the loss can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss. The Company evaluates developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and makes adjustments as additional information becomes available. Significant judgment is required to determine both the likelihood of there being a loss, and the estimated amount of a loss related to such matters.

With respect to the Company's outstanding litigation matters, based on the Company's current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on the Company's business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties.

***Non-cancelable Obligations***

 ****

In the normal course of business, the Company enters non-cancelable obligations with certain parties to purchase services, such as technology equipment and subscription-based cloud service arrangements. As of December 31, 2025, and 2024, the Company had outstanding non-cancelable purchase obligations with terms of one year or longer aggregating $0 and $18,000, respectively.

**17. SHAREHOLDERS' DEFICIT**

 ****

***Authorized Capital***

The Company is authorized to issue 2 billion (2,000,000,000) shares of common stock, par value $0.001 per share and fifty million (50,000,000) shares of preferred stock, par value $0.001 per share, of which twenty-five thousand shares (25,000) have been designated as Series A Convertible Redeemable Preferred Stock, par value $0.001 per share and the remaining authorized shares of preferred stock are "blank check" shares, which can be issued with various rights as determined by the Board. The number of authorized shares of any class or classes of stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of at least a majority of the voting power of the issued and outstanding shares of common stock of the Corporation, voting together as a single class.

***Common Stock***

The holders of the Company's Common Stock have equal ratable rights to dividends from funds legally available therefore, when, as and if declared by the Company's board of directors (the "Board"). Holders of Common Stock are also entitled to share ratably in all of the Company's assets available for distribution to holders of Common Stock upon liquidation, dissolution or winding up of the Company's affairs.

Except as otherwise required by law or as may be provided by the resolutions of the Board authorizing the issuance of Common Stock, all rights to vote and all voting power shall be vested in the holders of Common Stock. Each share of Common Stock shall entitle the holder thereof to one vote.

Upon any liquidation, dissolution or winding-up of the corporation, whether voluntary or involuntary, the remaining net assets of the Company shall be distributed pro rata to the holders of the Common Stock.

**18. REDEEMABLE SERIES A PREFERRED STOCK – RELATED PARTY**

***Series A Preferred Stock***

There are 25,000 shares of Series A Preferred Stock issued and outstanding. Each share of Series A Preferred Stock has a stated value of $1,000, for an aggregate value of $25 million.

On August 9, 2024, the Company amended and restated its certificate of designations of rights and preferences of the Series A Convertible Redeemable Preferred Stock ("Preferred Stock"). Pursuant to the Series A Amendment, the holder of the preferred stock, which is a related party, waived all accrued and future dividends in exchange for an increase in the liquidation preference to 125%. This modification of the Preferred Stock resulted in a non-cash decrease in accrued dividends and a corresponding increase in additional paid in capital of $2,667,000.

On April 22, 2024, the Company amended its articles of incorporation. Pursuant to the Series A Amendment, the conversion price, for purposes of determining the number of votes the holder of Series A Preferred Stock is entitled to cast, shall not be lower than $0.072. Further, the price at which the Series A Preferred Stock shall become convertible into shares of common stock of the Company shall be equal to the greater of (i) $0.02 per share or (ii) eighty (80%) percent of the Market Price as at the Conversion Date.

Each holder shall be entitled to vote on an "as converted" basis with holders of outstanding shares of our common stock, voting together as a single class, with respect to any and all matters presented to the shareholders for their action or consideration. For so long as the holder shall continue to hold any shares of Series A Preferred Stock originally issued to it, the holder shall be entitled to elect a number of directors to the Board equal to a percentage determined by the number of Series A Preferred Stock beneficially owned by the holders, determined on an "as converted" basis, divided by the sum of the number of shares of Common Stock outstanding plus the number of Series A Preferred Stock outstanding on an "as converted" basis, provided, that the number of directors that the holders are entitled to elect shall never be less than a majority of our Board.

Beginning January 1, 2026, the shares of Series A Preferred Stock shall be subject to redemption in cash at the option of the holder in an amount per share equal to the stated value plus all accrued and unpaid dividends thereon. In accordance with FASB ASC Topic 480, *"Distinguishing Liabilities from Equity"*, paragraph 10-S99, redemption provisions not solely within the control of a company require ordinary shares subject to redemption to be classified outside of permanent equity. Accordingly, all of the shares of Series A Preferred Stock are presented as temporary equity, outside of the shareholders' deficit section of the Company's balance sheets.

**19. WARRANTS**

A summary of warrant activity for the years ended December 31, 2025, and 2024 is presented below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Warrants** | **Weighted-<br> Average Exercise <br> Price** | **Weighted-<br> Average <br> Remaining <br> Contractual Life <br> (Years)** |
| Outstanding on December 31, 2023 | 116010720 | $0.1 | 4.6 |
| Granted | 24954170 | 0.1 |  |
| Exercised | (9161) | 0.1 |  |
| Outstanding on December 31, 2024 | 140955729 | 0.1 | 3.7 |
| Granted |  | 0.1 |  |
| Exercised | (33199) | 0.1 |  |
| Outstanding on December 31, 2025 | 140922530 | $0.1 | 2.7 |

---

The following summarizes information about common stock warrants outstanding on December 31, 2025, and 2024:

Warrants held by related parties consisted of 13,235,252, and 13,235,252 as of December 31, 2025, and 2024 respectively.

***Commitment Fee; Warrant***

On July 25, 2024, the Company entered into a purchase agreement (the "ELOC Purchase Agreement") with GCEF Opportunity Fund, LLC ("GCEF"), which provides that, upon the terms and subject to the conditions and limitations set forth therein, the Company has the right to direct GCEF to purchase up to an aggregate of $25.0 million of shares of the Company's common stock, par value $0.001 per share (the "Common Stock") over the 36-month term of the ELOC Purchase Agreement and the Company will execute a warrant to purchase shares of Common Stock ("ELOC Warrant"), granting the GCEF the right to purchase Common Stock issuable upon the exercise of the ELOC Warrants, with an expiration date that is the third anniversary of the First Trading Day (as defined ELOC Purchase Agreement). Under the ELOC Warrant, GCEF has the right to buy up to 2% of our outstanding Common Stock within three business days after our Common Stock is publicly listed for trading on a U.S. national securities exchange or other trading platform.

In consideration for GCEF's execution of the ELOC Purchase Agreement, the Company is required to issue to GCEF, as a commitment fee, a number of Common Stock equivalent to 2.0% of the Aggregate Limit or $0.5 million ("Commitment Fee Shares"), payable either in cash or freely tradeable Common Stock on the first trading day after 30 consecutive trading days commencing with the first trading day designated in each draw down notice. The draw down notice shall specify the draw down amount requested, set the threshold price for such draw down and designate the first trading day of the draw down pricing period that the Company wishes to grant to the purchaser during the draw down pricing period.

**20. SEGMENT INFORMATION**

ASC Topic 280, "Segment Reporting," establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company's Chief Operating Decision Maker ("CODM"), or group, in deciding how to allocate resources and assess performance.

The Company's CODM has been identified as the Chief Executive and Financial Officer, who reviews the assets, operating results, and financial metrics for the Company to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that there is only one reportable segment.

The CODM assesses performance for the single segment and decides how to allocate resources based on gross profit and net loss that are also reported on the statement of operations as net income or loss. The measure of segment assets is reported on the balance sheet as total assets. When evaluating the Company's performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in net loss, which include the following:

---

| | | |
|:---|:---|:---|
|  | **Years ended December 31,** | **Years ended December 31,** |
|  | **2025** | **2024** |
| Revenue | $7228000 | $4912000 |
| Cost of revenue |  |  |
| &nbsp;&nbsp;&nbsp;Manufacturing costs | 2553000 | 1524000 |
| &nbsp;&nbsp;&nbsp;Distribution costs | 358000 | 481000 |
| &nbsp;&nbsp;&nbsp;Inventory adjustment |  | 270000 |
| &nbsp;&nbsp;&nbsp;EV chargers | 801000 | 206000 |
| &nbsp;&nbsp;&nbsp;Other | 197000 | 309000 |
| Cost of revenue | 3909000 | 2790000 |
| Gross profit | 3319000 | 2122000 |
| Operating expenses: |  |  |
| Research and development: |  |  |
| &nbsp;&nbsp;&nbsp;Payroll and benefits | 253000 | 238000 |
| &nbsp;&nbsp;&nbsp;Occupancy costs | 98000 | 93000 |
| &nbsp;&nbsp;&nbsp;Other research and development | 93000 | 76000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total research and development | 444000 | 407000 |
| Selling and marketing: |  |  |
| &nbsp;&nbsp;&nbsp;Payroll and benefits | 742000 | 972000 |
| &nbsp;&nbsp;&nbsp;Occupancy costs | 110000 | 164000 |
| &nbsp;&nbsp;&nbsp;Other selling and marketing | 203000 | 157000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total selling and marketing | 1055000 | 1293000 |
| General and administrative |  |  |
| &nbsp;&nbsp;&nbsp;Payroll and benefits | 1389000 | 1209000 |
| &nbsp;&nbsp;&nbsp;Professional fees and outside services | 370000 | 422000 |
| &nbsp;&nbsp;&nbsp;Write off EV related assets |  | 763000 |
| &nbsp;&nbsp;&nbsp;Occupancy costs | 695000 | 660000 |
| &nbsp;&nbsp;&nbsp;Other general and administrative | 700000 | 862000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total general and administrative | 3154000 | 3966000 |
| Total operating expenses | 4653000 | 5666000 |
| Operating loss | $(1334000) | $(3544000) |

---

**21. SUBSEQUENT EVENTS**

***New Operating lease***

 ****

The Company entered into a 5-year operating lease beginning January 1, 2026, for new office and warehouse space with annual lease payments of approximately $.5 million. The total estimated lease commitment is approximately $2.4 million. This lease agreement begins subsequent to December 31, 2025, and accordingly, no amounts related to this lease are reflected in the accompanying balance sheet.

 ****

***Convertible debt issued pursuant to the SPA***

The Agreement provides that the Loan shall be conducted through seven (7) separate tranche closings, provided, that SJC has the ability, exercisable in its sole discretion, to purchase any principal face amounts of convertible notes prior to the dates of the tranche closings provided for in the Agreement. Four additional tranches closed prior to the filing of our 2025 Form 10K as described below.

Pursuant to the Agreement, the second tranche closed on January 9, 2026, the third tranche closed on January 30, 2026, and the fourth and fifth tranches on March 27, 2026. These closings consisted of the issuance of Convertible Notes to SJC in the total principal face amount of $880,000, for a total purchase price of $800,000. The convertible notes accrue interest at 12% per annum and will mature one year from issuance of the notes. The convertible notes are convertible into shares of the Company's common stock at any time at a conversion price equal to the greater of (i) $0.035 per share, which shall not be adjusted for stock dividends, stock splits, stock combinations and other similar transactions and (ii) 20% discount to the Company's lowest VWAP (as defined in the convertible notes) of the common stock during the ten trading days immediately prior to the date of conversion into shares of common stock.

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

Not applicable.

**ITEM 9A. CONTROLS AND PROCEDURES**

***Evaluation of Disclosure Controls and Procedures***

As of December 31, 2025, our management, with the participation and supervision of our principal executive officer and our principal financial officer, evaluated our disclosure controls and procedures (as defined in Rules 13a-15I and 15d-15(e) under the Exchange Act). The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost benefit relationship of possible controls and procedures. Based upon their evaluation, our principal executive officer and our principal financial officer concluded that, solely as a result of the material weaknesses identified by management and described below, our disclosure controls and procedures were not effective to ensure that material information relating to the Company required to be disclosed by the Company in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and to ensure that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

***Changes in Internal Control over Financial Reporting***

Other than the changes in connection with the remediation of the previously identified material weakness discussed below, there were no changes in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the year ended December 31, 2025 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

***Management's Annual Report on Internal Control Over Financial Reporting***

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.

 ***Material Weakness***

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

Based on the results of management's testing, management concluded that the previously identified material weaknesses related to inventory, revenue recognition, accounts receivable, complex financial instruments and fair value estimates were remediated as of December 31, 2025.

Management has identified the following material weakness which caused management to conclude that as of December 31, 2025, 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.

Management evaluated the impact of our failure to have segregation of duties and concluded that the control deficiency represented a material weakness.

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 as defined under Section 404 of SOX, we may be unable to produce reliable financial reports or prevent fraud, which could materially harm our business. In addition, we may be subject to sanctions or investigation by government authorities or self-regulatory organizations, such as the SEC or the Financial Industry Regulatory Authority ("FINRA"). Any such actions could affect investor perceptions of our company and result in an adverse reaction in the financial markets due to a loss of confidence in the reliability of our financial statements, which could cause the market price of our common stock to decline or limit our access to capital.

 **ITEM 9B. OTHER INFORMATION**

None.

**ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

The following table sets forth the names and positions of our executive officers and directors. Directors will be elected at our annual meeting of shareholders and serve for one year or until their successors are elected and qualify. Officers are elected by the Board and their terms of office are, except to the extent governed by employment contract, at the discretion of the Board.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Positions** |
| Amos Kohn | 65 | Founder, Chief Executive Officer, Chief Financial Officer and Director |
| Marcus Charuvastra | 47 | President and Director |
| Douglas Gintz | 59 | Director |

---

**Amos Kohn** Mr. Kohn is the Founder, Chief Executive Officer, and Chairman of the Board of Directors of TurnOnGreen, Inc. (formerly Coolisys Technologies Corp.), positions he has held since January 7, 2020. He has also served as Chief Financial Officer of the Company since September 5, 2023. Mr. Kohn founded TOG Technologies in 2021 and has served as its Chief Executive Officer since that time. In 2017, he founded Digital Power Corporation and has served as its Chief Executive Officer since its inception. Previously, Mr. Kohn served as President and Chief Executive Officer from 2008 to 2017, and as President from 2017 to 2020, of a publicly traded company formerly known as Digital Power Corporation (now Hyperscale Data, Inc.). He also served on its board of directors from 2003 to 2020. Mr. Kohn has over 30 years of experience in the high-technology sector. He holds a Bachelor of Science degree in Electrical and Electronics Engineering and a Certificate in Business Administration from the University of California, Berkeley. He is a retired Major in the Israel Defense Forces and is named as an inventor on several U.S. and international patents.

**Marcus Charuvastra** has served as our President since September 20, 2022. Mr. Charuvastra served as the President of TurnOnGreen, Inc. between January 2022 and September 2022 and served as its Chief Revenue Officer between June 2021 and December 2025. On January 1, 2026, Mr. Charuvastra was named Chief Executive Officer of Gresham Worldwide, Inc. Mr. Charuvastra is an accomplished leader with 20 years of experience in strategic planning, sales, services, marketing and business and organizational development. Mr. Charuvastra spent nine years at Targeted Medical Pharma, Inc. serving as Vice President of Operations and as the Managing Director of this microcap biotech start-up, from 2012 to May 2021. During his tenure, he was instrumental in guiding Targeted Medical Pharma's initial public offering. Mr. Charuvastra was previously Director of Sales and Marketing at Physician Therapeutics from 2009 to 2012 and was responsible for building the sales and distribution network in the United States and abroad. He is a graduate of UCLA.

**Douglas Gintz** served as Chief Technology Officer of TurnOnGreen, Inc. from February 2021 to May 2025 . In these roles, Mr. Gintz was responsible for driving strategic software initiatives and delivering key technologies essential to the development, commercialization, and market penetration of the Company's EV charging solutions business. Effective January 1, 2026, Mr. Gintz was appointed Chief Technology Officer and Chief AI Officer of Gresham Worldwide, Inc., where he oversees enterprise technology platforms and artificial intelligence initiatives across a diversified portfolio of operating companies. From February 2021 to January 2025, Mr. Gintz also served as Chief Technology Officer and Director of Global Technology Implementation at HSD, supporting digital transformation initiatives and technology due diligence activities. Mr. Gintz previously served as Chief Executive Officer of Pacific Coders, LLC from August 2002 to January 2022 and held senior technology and executive roles at Endocanna Health, Inc. and Targeted Medical Pharma, Inc., a publicly traded microcap company.

**Family Relationships**

No family relationship exists among any of our directors or executive officers. No arrangement or understanding exists between any director or executive officer and any other person pursuant to which any director or executive officer was selected as a director or executive officer of our company. All executive officers are appointed annually by the board of directors. Directors serve until the next annual meeting of our shareholders and until their successors are elected and qualified.

***Code of Business Conduct and Code of Ethics***

Our board of directors has adopted a code of business conduct, which applies to all of our employees, officers and directors, including our Chief Executive Officer, Chief Financial Officer and other executive and senior financial officers. Our board of directors has also adopted a code of ethics that applies to all our employees, officers and directors, including our Chief Executive Officer, Chief Financial Officer and other executive and senior financial officers. The full text of our code of business conduct and code of ethics will be posted on the investor relations page on our website. We intend to disclose any amendments to our code of ethics, or waivers of its requirements, on our website or in filings under the Exchange Act.

***Board of Directors***

Our business and affairs are managed under the direction of our board of directors. Our board of directors is currently composed of three members, none of whom qualifies as "independent" under the listing standards of Nasdaq Marketplace Rules.

**ITEM 11. EXECUTIVE COMPENSATION**

***Summary Compensation Table***

The following table sets forth summary compensation information for the following persons: (i) all persons serving as our principal executive officer during the years ended December 31, 2025, and 2024, and (ii) our two other most highly compensated executive officers who received compensation during the years ended December 31, 2025, and 2024 of at least $100,000 and who were executive officers on December 31, 2025. We refer to these persons as our "Named Executive Officers". The following table includes all compensation earned by the Named Executive Officers for the respective period, regardless of whether such amounts were actually paid during the period:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Name and principal position | Year | Salary ($) | Bonus ($) | Stock <br> Awards<br> ($) | Option <br> Awards <br> ($) | All Other <br> Compensation ($) | Total ($) |
| Amos Kohn | 2025 | 350000 | 25000 |  |  | 33720 | 408720 |
| &nbsp;&nbsp;&nbsp;Chief Executive Officer, Chief Financial | 2024 | 350000 | 10000 |  |  | 33800 | 393800 |
| &nbsp;&nbsp;&nbsp;Officer and Chairman |  |  |  |  |  |  |  |
| Marcus Charuvastra | 2025 | 140000 | 25000 |  |  |  | 165000 |
| &nbsp;&nbsp;&nbsp;President and Director | 2024 | 140000 |  |  |  |  | 140000 |

---

***Termination Provisions***

As of the date of this Form 10-K, we have no contract, agreement, plan, or arrangement, whether written or unwritten, that provides for payments to a Named Executive Officer at, following, or in connection with any termination, including without limitation resignation, severance, retirement or a constructive termination of a Named Executive Officer, or a change in control of the company or a change in the Named Executive Officer's responsibilities, with respect to each Named Executive Officer, other than with respect to Mr. Kohn.

***Outstanding Equity Awards at Fiscal Year End***

As of December 31, 2025, none of our Named Executive Officers held any unexercised options, stock that have not vested, or other equity incentive plan awards.

***Director Compensation***

To date, we have not paid any of our directors any compensation for serving on our Board.

***Equity Compensation Plan Information***

On June 27, 2023, the Company held a special meeting of shareholders, and the shareholders voted and approved three proposals presented for a vote, including approving the TurnOnGreen, Inc. 2023 Stock Incentive Plan which reserved 100,000,000 shares for issuance. As of December 31, 2025, no shares had been issued under the plan.

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS**

The following table sets forth certain information regarding beneficial ownership of our common stock based on 183,983,122 shares issued and outstanding as of the close of business on March 30, 2026 by (i) each person who is known by the company to own beneficially more than 5% of any classes of outstanding common stock, (ii) each director of the company, (iii) each of the Named Executive Officers and (iv) all directors and executive officers of the company as a group.

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| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owners of Common Stock <sup>(1)</sup>** | **Number of**<br> **shares**<br> **beneficially**<br> **owned**  | **% of<br> Common<br> Stock** |
| Amos Kohn **<sup>(2)</sup>** | 27900 | \* |
| Marcus Charuvastra |  |  |
| Douglas Gintz **<sup>(3)</sup>** | 18080 | \* |
| All Directors and Officers as a group (Three persons) | 45980 | \* |
| Hyperscale Data, Inc. <sup>(4**)**</sup> | 60461470 | 18.6% |

---

\* Less than 1%.

(1) Unless otherwise indicated, the business address of each of the individuals is c/o TurnOnGreen, Inc., 2030 Ringwood Ave., San Jose, California 95131.

(2) Represents 12,400 shares and an equal number of warrants.

(3) Represents 9,040 shares and an equal number of warrants.

(4) Consisting of (i) 30,555 shares held by Sentinum, Inc., (ii) 13,806,817 shares held by Ault Lending, (iii) 12,452,919 shares underlying warrants held by Ault Lending, (iv) 33,539,181 shares underlying the Series A Preferred Stock, (iv) 315,999 shares and 315,999 underlying warrants are held by Ault and Company, Inc. Hyperscale may be deemed to beneficially own the shares beneficially owned by Sentinum, Inc. and Ault Lending as Sentinum, Inc. and Ault Lending are wholly owned subsidiary of Hyperscale. Milton C. Ault, III, the Executive Chairman of Hyperscale, exercises voting and dispositive power over the shares owned by Hyperscale and subsidiaries. The business address of each of these entities and individuals is 11411 Southern Highlands Parkway, Suite 240, Las Vegas, Nevada 89141.

 **ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

***Director Independence***

 

We use the definition of "independence" of the Nasdaq Marketplace Rules to make this determination. Rule 5605(a)(2) of the Nasdaq Marketplace Rules provides that an "independent director" is a person other than an officer or employee of the company or any other individual having a relationship which, in the opinion of our Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Rule 5605(a)(2) generally provides that a director cannot be considered independent if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the director is, or at any time during the past three years was, an employee of the company or its parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director accepted any compensation from the company in excess of
$120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain
exemptions, including, among other things, compensation for board or board committee service);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the director is an immediate family member of an individual who is, or at any time during the past three
years was, employed by the company as an executive officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director is a partner in, controlling shareholder of, or an executive
officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal
years that exceed 5% of the recipient's consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain
exemptions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director is employed as an executive officer of an entity where,
at any time during the past three years, any of the executive officers of the company served on the compensation committee of such other
entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director is a current partner of the Company's outside auditor,
or at any time during the past three years was a partner or employee of the Company's outside auditor, and who worked on the company's
audit.

***Policies and Procedures for Related Party Transactions***

The TurnOnGreen audit committee, when established, will have the primary responsibility for reviewing and approving or disapproving "related party transactions," which are transactions between us and related persons in which the aggregate amount involved exceeds or may be expected to exceed $120,000 and in which a related person has or will have a direct or indirect material interest. The policy regarding transactions between us and related persons will provide that a related person is defined as a director, executive officer or greater than 5% beneficial owner of common stock, in each case since the beginning of the most recently completed year, and any of their immediate family members. An investor may obtain a written copy of this policy, once adopted, by sending a written request to TurnOnGreen, Inc., 2030 Ringwood Ave., San Jose, California 95131, Attention: Legal Department. Our audit committee charter that will be in effect, once adopted, will provide that the audit committee shall review and approve or disapprove certain related party transactions, including material transactions with Hyperscale.

***Allocation of General Corporate Expenses***

Hyperscale provides human resources, accounting and other services to the Company, which are included as allocations of these expenses. The allocation method calculates an appropriate share of overhead costs by using Company revenue as a percentage of total revenue. This method is reasonable and consistently applied. Costs incurred in connection with the allocation of these costs are reflected in selling, general and administrative of $196,000 and $401,000 for the fiscal year end December 31, 2025, and 2024, respectively and were recorded in Hyperscale advance payable.

***Related Party Sales and Receivables***

The Company recognized $0 and $28,000 in revenue in the years ended December 31, 2025, and 2024, respectively, from sales to another subsidiary of Hyperscale. As of December 31, 2025, and 2024, the Company had related party receivables of $0 and $17,000, respectively.

***Related Party Notes and Advances Payable***

 ****

Related party notes and advances payable were used for working capital purposes and on December 31, 2025, and 2024, were comprised of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Interest <br> rate** | **Due date** | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Hyperscale advance payable | 10% |  | $7803000 | $5118000 |
| Chief Executive Officer | 14% and 22% | Default | 51000 | 46000 |
| Non-officer advance payable |  |  | - | 21000 |
| &nbsp;&nbsp;&nbsp;Total related party notes and advances payable |  |  | $7854000 | $5185000 |

---

On September 26, 2024, The Company entered into an Amendment to the Loan and Security Agreement (the "Amendment") with Hyperscale dated August 15, 2023 (the "Credit Agreement"). The Credit Agreement provided for a secured, non-revolving credit facility with an aggregate principal amount of up to $2,000,000 (the "Credit Limit") through December 31, 2023 (the "Credit Termination Date"). All loans under the Credit Agreement (collectively, the "Advances") were payable within five business days of a request by Hyperscale, and Hyperscale was not obligated to provide any further Advances after the Credit Termination Date.

Pursuant to the Amendment, the Company and Hyperscale have agreed to, among other things, amend the Credit Agreement to increase the Credit Limit to $8,000,000, extend the Credit Termination Date to December 31, 2026, and provide for additional loans made in excess of the initial Credit Limit to become Advances.

The Company recorded related party interest expense of $583,000 and $368,000 for the years ended December 31, 2025, and 2024, respectively in interest expense, related party.

**ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The following table sets forth the aggregate fees for professional audit services rendered by CBIZ CPAs P.C. and Marcum LLP for the fiscal years ended December 31, 2025, and 2024, respectively.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Audit fees | $221000 | $196000 |

---

_________

Audit Fees consist of the aggregate fees billed for professional services rendered for the audit of our annual financial statements and the reviews of the financial statements included in our Forms 10-Q and registration statement and for any other services that were normally provided in connection with our statutory and regulatory filings or engagements.

**PART IV**

**ITEM 15. EXHIBITS**

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| | |
|:---|:---|
| 2.1 | [Securities Purchase Agreement dated March 20, 2022 by and among Imperalis Holding Corp., BitNile Holdings, Inc and TurnOnGreen, Inc. Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed March 21, 2022.](https://www.sec.gov/Archives/edgar/data/1349706/000121465922004178/ex2_1.htm) |
| 2.2 | [Form of Amendment to Securities Purchase Agreement, dated September 5, 2022. Incorporated by reference to Exhibit 2.2 to the Current Report on Form 8-K filed September 6, 2022.](https://www.sec.gov/Archives/edgar/data/1349706/000121465922010929/ex2_2.htm) |
| 3.1 | [Amended and Restated Articles of Incorporation. Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed August 31, 2023.](https://www.sec.gov/Archives/edgar/data/1349706/000121465923011915/ex3_1.htm) |
| 3.2 | [Certificate of Amendment filed with the Nevada Secretary of State on December 21, 2023.](https://www.sec.gov/Archives/edgar/data/0001349706/000121465924000936/ex3_1.htm) Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed January 18, 2024. |
| 3.3 | [By-Laws of TurnOnGreen, Inc. Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form 10 filed April 13, 2021.](https://www.sec.gov/Archives/edgar/data/1349706/000166357721000178/ex3_2.htm) |
| 3.4 | [Certificate of Designations of Rights and Preferences of Series A Convertible Redeemable Preferred Stock. Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed September 6, 2022.](https://www.sec.gov/Archives/edgar/data/1349706/000121465922010929/ex3_1.htm) |
| 3.5 | [Amended and Restated Articles of Incorporation dated August 29, 2023. Incorporated by reference to Exhibit 3.1 to the Current report on Form 8-K filed August 31, 2023.](https://www.sec.gov/Archives/edgar/data/1349706/000121465923011915/ex3_1.htm) |
| 3.6 | [Amendment to the Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Redeemable Preferred Stock, filed with the Nevada Secretary of State on March 21, 2024.](https://www.sec.gov/Archives/edgar/data/1349706/000121465924005172/ex3_1.htm) |
| 3.7 | [Amendment to the Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Redeemable Preferred Stock, filed with the Nevada Secretary of State on April 22, 2024.](https://www.sec.gov/Archives/edgar/data/1349706/000121465924007567/ex3_1.htm) |
| 3.8 | [Amendment to the Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Redeemable Preferred Stock, filed with the Nevada Secretary of State on August 9, 2024. Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed August 15, 2024.](https://www.sec.gov/Archives/edgar/data/1349706/000121465924014810/ex3_1.htm) |
| 3.9 |  |
| 4.1 | [Form of Convertible Note. Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed October 29, 2025.](https://www.sec.gov/Archives/edgar/data/1349706/000121465925015513/ex4_1.htm) |
| 4.2\*\* | [Description of Capital Stock](ex4_2.htm) |
| 10.1 | [Form of Loan and Security Agreement. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed August 21, 2023.](https://www.sec.gov/Archives/edgar/data/1349706/000121465923011554/ex10_1.htm) |
| 10.2 | [Purchase Agreement dated July 25, 2024,by and between TurnOnGreen, Inc. and GCEF Opportunity Fund, LLC. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed July 31, 2024.](https://www.sec.gov/Archives/edgar/data/1349706/000121465924013383/ex10_1.htm) |
| 10.3 | [Form of Amendment to Loan and Security Agreement. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed October 2, 2024.](https://www.sec.gov/Archives/edgar/data/1349706/000121465924017070/ex10_1.htm) |
| 10.4 | [Securities Purchase Agreement dated October 29, 2025, by and between TurnOnGreen, Inc. and SJC Lending LLC. Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed October 29, 2025.](https://www.sec.gov/Archives/edgar/data/1349706/000121465925015513/ex10_1.htm) |
| 10.5 | [Form of IP Security Agreement. Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed October 29, 2025.](https://www.sec.gov/Archives/edgar/data/1349706/000121465925015513/ex10_2.htm) |
| 10.6 | [Form of Security Agreement. Incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed October 29, 2025.](https://www.sec.gov/Archives/edgar/data/1349706/000121465925015513/ex10_3.htm) |
| 10.7 | [Form of Pledge Agreement. Incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed October 29, 2025.](https://www.sec.gov/Archives/edgar/data/1349706/000121465925015513/ex10_4.htm) |
| 21.1 | [List of Subsidiaries, Incorporated by reference to Exhibit 21.1 to the Registration Statement on Form S-1 filed December 16, 2025](https://www.sec.gov/Archives/edgar/data/1349706/000121465925018074/ex21_1.htm). |
| 31.1\* | [Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).](ex31_1.htm) |
| 31.2\* | [Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).](ex31_2.htm) |
| 32.1\*\* | [Certifications of Chief Executive and Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.](ex32_1.htm) |
| 101 | Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language). |
| 101.INS\* | Inline XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

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______________________

\* Filed herewith.

\*\* Furnished herewith.

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| | |
|:---|:---|
| **ITEM 16.** | **FORM 10–K SUMMARY** |

---

None.

**SIGNATURES**

In accordance with the requirements of the Exchange Act, the registrant caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: March 31, 2026

---

| | |
|:---|:---|
| TURNONGREEN, INC. | TURNONGREEN, INC. |
| By: | /s/ Amos Kohn |
|  | Amos Kohn |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) and<br> Chief Financial Officer<br> (Principal Financial and Accounting Officer) |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated.

---

| | |
|:---|:---|
| March 31, 2026 | /s/ Amos Kohn |
|  | Amos Kohn, Chief Executive Officer, Chief Financial Officer and Director |

---

---

| | |
|:---|:---|
| March 31, 2026 | /s/ Marcus Charuvastra |
|  | Marcus Charuvastra, Director |

---

---

| | |
|:---|:---|
| March 31, 2026 | /s/ Douglas Gintz |
|  | Douglas Gintz, Director |

---

## Exhibit 4.2

**<u>Exhibit 4.2</u>**

**DESCRIPTION OF CAPITAL STOCK**

The following is a summary of all the material characteristics of our capital stock as set forth in our articles of incorporation and bylaws. The summary does not purport to be complete and is qualified in its entirety by reference to our articles of incorporation and bylaws, and to the provisions of the Revised Statutes of the State of Nevada, as amended.

We are authorized to issue 2,000,000,000 shares of common stock par value $0.001 per share. As of the date hereof, there were 183,983,122 shares of our common stock issued and outstanding. The outstanding shares of our common stock are validly issued, fully paid and nonassessable.

We are authorized to issue up to 50,000,000 shares of preferred stock, par value $0.001 per share. Of these shares of preferred stock, 25,000 are designated as series A convertible preferred stock (the "Series A Preferred Stock"). As of the date hereof, there were 25,000 shares of Series A Preferred Stock outstanding.

**Common Stock**

The holders of our common stock have equal ratable rights to dividends from funds legally available therefore, when, as and if declared by our board of directors. Holders of common Stock are also entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs.

The holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of such outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and in such event, the holders of the remaining shares will not be able to elect any of our directors. The holders of 50% of the outstanding common stock constitute a quorum at any meeting of shareholders, and the vote by the holders of a majority of the outstanding shares or a majority of the shareholders at a meeting at which quorum exists are required to effect certain fundamental corporate changes, such as liquidation, merger or amendment of our articles of incorporation.

Except as otherwise required by law or as may be provided by the resolutions of the Board of Directors authorizing the issuance of common stock, all rights to vote and all voting power shall be vested in the holders of common stock. Each share of common stock shall entitle the holder thereof to one vote.

Except as may be provided by the resolutions of the Board of Directors authorizing the issuance of common stock, cumulative voting by any shareholder is expressly denied.

Upon any liquidation, dissolution or winding-up of the corporation, whether voluntary or involuntary, the remaining net assets of the company shall be distributed pro rata to the holders of the common stock.

**Preferred Stock**

Our preferred stock may be issued in one or more classes or series by the board of directors, who has the authority to designate the rights, preferences and other aspects of each class or series of preferred stock, without further vote or action by the shareholders. If shares of preferred stock with voting rights are issued, such issuance could affect the voting rights of the holders of our common stock by increasing the number of outstanding shares having voting rights, and by the creation of class or series voting rights. If the Board of Directors authorized the issuance of shares of preferred stock with conversion rights, the number of shares of common stock outstanding could potentially be increased by up to the authorized amount. Issuance of preferred stock could, under certain circumstances, have the effect of delaying or preventing a change in control of our company and may adversely affect the rights of the holders of our common stock. Also, preferred stock could have preferences over our common stock (and other series of preferred stock) with respect to dividend and liquidation rights. We currently have no plans to issue any preferred stock.

***Series A Preferred Stock***

There are 25,000 shares of Series A Preferred Stock issued and outstanding. Each share of Series A Preferred Stock has a stated value of $1,000, for an aggregate value of $25 million.

 

In the event that the company is liquidated, dissolved or wound up, then before any distribution or payment is made to the holders of any common stock or any other class or series of junior stock, the holders of Series A Preferred Stock are entitled to receive liquidating distributions in an amount equal to the stated value for each share of Series A Preferred Stock held by such holders.

 

Each holder shall be entitled to vote on an "as converted" basis with holders of outstanding shares of our common stock, voting together as a single class, with respect to any and all matters presented to the shareholders for their action or consideration. For so long as the holder shall continue to hold any shares of Series A Preferred Stock originally issued to it, the holder shall be entitled to elect a number of directors to the Board of Directors equal to a percentage determined by the number of Series A Preferred Stock beneficially owned by the holders, determined on an "as converted" basis, divided by the sum of the number of shares of common stock outstanding plus the number of Series A Preferred Stock outstanding on an "as converted" basis, provided, that the number of directors that the holders are entitled to elect shall never be less than a majority of our board of directors.

 

Each share of Series A Preferred Stock may be convertible at the holder's option into shares of common stock of the company where the conversion price shall be the stated value of each share of Series A Preferred Stock divided by 80% of the volume-weighted average price ("VWAP") of our common stock over the ten days immediately preceding the date of conversion. The conversion price will be subject to standard anti-dilution provisions in connection with any stock split, stock dividend, subdivision or similar reclassification of the common stock as well as carry full ratchet protection. The Preferred Stock is subject to a 19.9% beneficial ownership limitation,

 

As of January 1, 2026, the shares of Series A Preferred Stock shall be subject to redemption in cash at the option of the holder in an amount per share equal to the stated value plus all accrued and unpaid dividends thereon.

**Transfer Agent and Registrar**

The Transfer Agent and Registrar for our common stock is Computershare, 8742 Lucent Blvd., Suite 225, Highlands Ranch, CO 80129.

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,<br> AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Amos Kohn, certify that:

1. I have reviewed this Annual Report on Form 10-K of TurnOnGreen, Inc.;

2. Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this Annual Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Annual
Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this Annual Report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this Annual Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this Annual Report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this Annual Report any change in the registrant's internal control over financial reporting
that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over
financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent
functions):

&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report
financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: March 31, 2026 | By: | */s/ Amos Kohn* |
|  |  | Amos Kohn |
|  |  | Title: Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER**

**PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,<br> AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Amos Kohn, certify that:

1. I have reviewed this annual report on Form 10-K of TurnOnGreen, Inc.;

2. Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this Annual Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Annual
Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this Annual Report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this Annual Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this Annual Report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this Annual Report any change in the registrant's internal control over financial reporting
that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over
financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent
functions):

&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report
financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: March 31, 2026 | By: | */s/ Amos Kohn* |
|  |  | Amos Kohn |
|  |  | Title: Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO** 

**18 U.S.C. SECTION 1350<br> AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of TurnOnGreen, Inc. (the "Registrant") on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Amos Kohn, Principal Executive Officer and Principal Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Registrant.

---

| | | |
|:---|:---|:---|
| Dated: March 31, 2026 | By: | */s/* Amos Kohn |
|  |  | Amos Kohn |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) and |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---