TurnOnGreen, Inc. Quarterly Report Released - Here’s What You Should Know

TurnOnGreen, Inc. – Q3 2025 Investor Summary

Financial Highlights (as of September 30, 2025):

• Revenue: $1.74 million for Q3 2025 (up 35% vs. Q3 2024); $5.03 million YTD (up 33% vs. YTD 2024).
• Gross Profit: $717,000 for Q3 2025 (up 6% YoY); $2.13 million YTD (up 18% YoY).
• Net Loss: $(509,000) for Q3 2025 (improved from $(660,000) in Q3 2024); $(1.70) million YTD (improved from $(2.19) million YTD 2024).
• Net Loss per Share: $(0.01) in Q3 2025 (unchanged YoY).
• Operating Expenses: $1.07 million for Q3 2025 (down 14% YoY); $3.39 million YTD (down 9% YoY), with significant reductions in selling and marketing.

Balance Sheet and Liquidity:

• Cash & Equivalents: $67,000 as of September 30, 2025 (up from $27,000 at December 31, 2024).
• Total Assets: $2.74 million (flat YoY).
• Current Liabilities: $10.03 million (up from $8.26 million at year-end), driven by related party notes and advances payable ($7.18 million vs. $5.19 million at year-end).
• Shareholders’ Deficit: $(32.43) million (expanded from $(30.73) million at year-end).
• Lawsuit Liability: $1.1 million related to an ongoing legal matter.

Cash Flow:

• Net Cash Used in Operating Activities: $(1.87) million for nine months ended September 30, 2025 (similar to $(1.97) million in prior period).
• Net Cash Provided by Financing: $2.00 million YTD ($1.996 million from related party advances).
• Cash Used in Investing: $(91,000) YTD.

Operational Notes:

• Revenues: 95% from North America; 73% from Power Supply Units, 27% from EV Chargers YTD.
• Customer Concentration: Two customers accounted for 39% of Q3 revenue; Customer A represented 26% of YTD revenue.
• Inventories: Up to $1.09 million from $890,000 year-end due to increased raw materials.

Related Party/Loans:

• Substantial reliance on related party financing: $7.18 million in notes/advances with Hyperscale (controlled subsidiary), with rates of 10%, 14%, and 22%.
• New Securities Purchase Agreement: On October 29, 2025, the company entered an agreement with SJC Lending LLC with up to $2.8 million in convertible notes, with $400,000 already drawn (post-period closing).

Risks & Material Weaknesses:

• Going Concern: Significant shareholders’ deficit; dependent on ongoing related party advances and new lending.
• Customer Concentration: Heavy reliance on a few customers for revenue.
• Internal Controls: Material weaknesses persist, including insufficient accounting resources, inadequate segregation of duties, and deficiencies in transaction/estimate controls.
• Lawsuit Liability: Ongoing legal risk with $1.1 million accrued for litigation.
• Working Capital & Liquidity Risk: Minimal cash on hand, heavy debt load, and continual net losses.
• Company is not a shell company and does not consider itself an "emerging growth company."

Conclusion:
TurnOnGreen, Inc. demonstrated year-over-year revenue and profit growth and narrowed net losses in 2025. However, the company continues to face significant financial and operational risks, including heavy reliance on related party financing, customer concentration, ongoing litigation, internal control deficiencies, and a substantial shareholders' deficit. Investors should be aware that the company's ability to continue as a going concern is dependent on further external financing.

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