Company: TOMZ
Filing Date: 2025-09-30
Form Type: ARS
Source: 0001654954-25-011264
Chunk: 116

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-09-30
Form: ARS
Chunk 116
---
 paid in cash on a quarterly basis. Non-employee Director compensation also includes the annual issuance of our Common Stock.

For the year ended December 31, 2023, we issued an aggregate of 60,000 shares of Common Stock that were valued at approximately $51,000 to members of our Board.

For the year ended December 31, 2024, we issued an aggregate of 60,000 shares of Common Stock that were valued at approximately $45,000 to members of our Board.

NOTE 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following at:

|                                                |     |   | December 31,  2024 |     |   | December 31,  2023 |
|:-----------------------------------------------|:----|:--|-------------------:|:----|:--|-------------------:|
| Commissions                                    |     | $ |            187,151 |     | $ |            200,837 |
| Payroll and related costs                      |     |   |            125,773 |     |   |            201,009 |
| Director fees                                  |     |   |             37,650 |     |   |             37,650 |
| Sales Tax Payable                              |     |   |              3,864 |     |   |              5,707 |
| Accrued warranty (Note 14)                     |     |   |             30,000 |     |   |             30,000 |
| Other accrued expenses and current liabilities |     |   |             71,237 |     |   |            200,288 |
| Total                                          |     | $ |            455,675 |     | $ |            675,491 |

| F-23 |

NOTE 14. ACCRUED WARRANTY

Our manufacturers assume the warranty against product defects from date of sale, which we extend to our customers upon sale of the product. We assume responsibility for product reliability and results. The warranty is generally limited to a refund of the original purchase price of the product or a replacement part. We estimate warranty costs based on historical warranty claim experience.

The following table presents warranty reserve activities at:

|                                  |     |   | December 31,  2024 |   |     |   | December 31,  2023 |   |
|:---------------------------------|:----|:--|-------------------