10-Q - TurnOnGreen, Inc. (0001349706) (Filer)

Tue, May 14, 9:16 PM (73 days ago)

TurnOnGreen, Inc. reported a notable improvement in its financial performance for the quarter ended March 31, 2024. Revenue increased by 40% year-over-year to $1,225,000, driven by higher sales from a significant defense industry customer. Gross profit rose by 55% to $558,000, reflecting improved cost management. Operating expenses decreased by 11%, primarily due to lower consulting and audit fees. Consequently, the operating loss narrowed to $666,000, a 34% improvement from the previous year. The net loss also decreased by 27% to $735,000. Despite these positive trends, the company continues to face liquidity challenges with cash and cash equivalents of $103,000 and a negative working capital of $6.6 million. The company's ability to continue as a going concern remains uncertain, relying heavily on future equity sales and additional funding sources. Management has identified material weaknesses in internal controls, particularly in revenue recognition and accounting for complex financial instruments, and is implementing measures to address these issues.