TurnOnGreen, Inc. (formerly Imperalis Holding Corp.) reported its financial results for the three and nine months ended September 30, 2024, reflecting notable changes in revenue, profitability, and operational challenges compared to the previous fiscal period.

For the three months ended September 30, 2024, TurnOnGreen generated revenue of $1,290,000, an increase of $124,000 or 11% from $1,166,000 in the same period of 2023. The gross profit for this quarter surged to $675,000, a significant rise from $28,000 in the prior year, marking an increase of 2311%. This growth was primarily attributed to higher sales from defense industry customers, which contributed approximately $217,000 to the revenue increase.

Despite the revenue growth, the company reported an operating loss of $(560,000), an improvement from $(1,174,000) in the same quarter of 2023, reflecting a reduction of 52%. The net loss for the three months was $(660,000), down from $(1,199,000) in the previous year, indicating a 45% decrease in losses.

For the nine-month period ending September 30, 2024, TurnOnGreen's revenue rose to $3,751,000, up by $985,000 or 36% from $2,766,000 in the same period of 2023. Gross profit for the nine months also increased significantly to $1,801,000, compared to $336,000 in the prior year. The net loss for this period was $(2,193,000), a decrease of $1,859,000 from $(4,052,000) in 2023, while the operating loss improved to $(1,936,000) from $(3,938,000).

The company’s financial position showed total assets of $3,755,000 as of September 30, 2024, down from $4,717,000 at the end of 2023. Total liabilities decreased to $7,707,000 from $9,143,000, and total current liabilities also fell to $7,352,000 from $8,407,000. The shareholders’ deficit slightly improved to $(28,952,000) from $(29,426,000).

TurnOnGreen has faced ongoing operational challenges, including recurring net losses and substantial doubt about its ability to continue as a going concern. The company plans to finance future development and working capital needs primarily through the sale of equity securities and term notes. Additionally, management identified material weaknesses in internal controls over financial reporting, particularly in revenue recognition and related party transactions, and is implementing measures to address these deficiencies.

The company’s cash and cash equivalents increased to $33,000 as of September 30, 2024, from $21,000 at the end of 2023, while net cash used in operating activities for the nine months was $(1,972,000), a slight improvement from $(2,244,000) in the previous year.