Company: TOMZ
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001654954-25-004233
Chunk: 240

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 11
Chunk 240
---
$-  Components of our deferred income tax assets (liabilities) are as follows:   December 31,  December 31,   2024  2023 Deferred tax assets:             Reserve for Credit Loss $624,000  $418,000 Inventory Reserve  308,000   27,000 Accrued Vacation  78,000   53,000 Warranty Reserve  8,000   8,000 Intangible Assets  98,000   181,000 Allowance for Sales Returns  64,000   - Capitalized R&D  175,000   148,000 Stock-Based Compensation  1,278,000   1,246,000 Operating lease right-of-use liabilities  180,000   212,000 Net operating losses  6,100,000   5,568,000 Valuation Allowance  (8,678,000)  (7,539,000)Deferred Tax Assets  235,000   322,000          Deferred tax liabilities:        Operating lease right-of-use assets  (158,000)  (189,000)Property and Equipment  (77,000)  (133,000)   (235,000)  (322,000)         Net Deferred Tax Assets and Liabilities $-  $-  Deferred income tax assets and liabilities are determined based on differences between the financial statement reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The measurement of deferred income tax assets is reduced, if necessary, by a valuation allowance for any tax benefits, which are, on a more likely than not basis, not expected to be realized; in accordance with ASC-740 guidance for income taxes. As of December 31, 2024, we recorded a valuation allowance of $8,678,000 for the portion of the deferred tax assets that we do not expect to be realized. The valuation allowance on our net deferred taxes increased by $1,139,000 during the year ended December 31, 2024, primarily due to U.S. deferred tax assets incurred in the current year that cannot be realized.  The effect on deferred income tax assets and liabilities of a change in tax rates is recognized