TurnOnGreen, Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how TurnOnGreen, Inc. performed. My goal is to explain the company’s progress and financial health in plain English so you can decide if it fits your portfolio.

1. What does this company do?

TurnOnGreen operates in two main areas. Its "Digital Power" division has 50 years of experience making high-end power supplies for defense, aerospace, and medical equipment.

Its second business is electric vehicle (EV) charging. They sell hardware like home chargers and fast-charging stations. They are also growing a "charger-as-a-service" model. This provides recurring income by bundling hardware, software, and maintenance into a subscription for commercial and city clients.

2. Financial health: The "Big Picture"

The company is in a tough spot. It spends more cash than it brings in and requires outside funding to continue operations.

• Revenue: Power electronics revenue hit $6 million in 2025, up 33% from $4.5 million in 2024.
• Profitability: The company reported a $2.1 million loss in 2025. While this is a 47.5% improvement over the $4 million loss in 2024, the company is not yet profitable.
• The "Runway" Problem: As of December 31, 2025, the company had $0.1 million in cash. It also has $8.2 million more in short-term debts than it has in assets, creating immediate pressure to pay its bills.
• Going Concern: Auditors have issued a "going concern" warning, noting that the company’s ability to stay in business through 2026 depends on securing new funding.

3. Major wins and challenges

TurnOnGreen stands out by building custom power supplies for clients in just 3 to 5 days. However, with only 19 full-time employees, it faces stiff competition from larger, well-funded rivals for big infrastructure contracts. Additionally, the company relies on trade secrets rather than patents, which may make it easier for competitors to replicate its technology.

4. Key risks that could hurt the stock price

• Survival Risk: With only $0.1 million in cash, the company faces a liquidity crisis. To survive, it may need to issue more shares—which reduces your ownership percentage—or take on high-interest debt that could strain cash flow.
• Dependency: The company relies on its parent, Hyperscale, for capital and guidance. If Hyperscale changes its strategy, TurnOnGreen loses its primary lifeline.
• Growth Pains: The company plans to grow through acquisitions. This strategy requires significant cash and management attention, which could distract from the core EV charging business.
• Market Status: The stock trades on the OTC Pink market. This market has less stringent rules than the NYSE or NASDAQ, which can lead to lower trading volume and higher price volatility.

5. Future outlook

TurnOnGreen is currently in "survival mode." It is focused on retaining its engineering team while scaling its EV charging business. Because the company cannot fund its operations through day-to-day sales alone, its future depends entirely on raising new capital, forming strategic partnerships, or significantly increasing profits through its subscription model.

---

Final Thought for Investors: This company is in a high-risk financial position with very little cash on hand. Before investing, consider whether the potential growth of their EV charging business outweighs the immediate risk of them running out of money.