Company: TOMZ
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001654954-25-005288
Chunk: 80

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 80
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276,000 and $1,178,000, respectively. The decrease was attributable to a lower current year loss.

Investing Activities

Cash used in investing activities for the three months ended March 31, 2025 and 2024 was $0 and $95,000, respectively. The decrease was attributable due to the timing of property and equipment purchased in the prior year period.  

Financing Activities

Cash provided by financing activities for three months ended March 31, 2025 and 2024 was $285,000 and $28,000, respectively. The increase is attributable to the proceeds from the issuance of convertible notes in the current year period.

Liquidity

Our revenues can fluctuate due to the following factors, among others:

 ·ramp up and expansion of our internal sales force and manufacturer’s representatives; ·length of our sales cycle; ·global and regional response to the outbreak of infectious diseases; ·expansion into new territories and markets; and ·timing of orders from distributors.

We could incur operating losses and an increase of costs related to the continuation of product and technology development, sales expense as we continue to grow our sales teams, inventory as we continue to ensure we have products needed and geographic presence, tooling capital expenditures as we ramp up and streamline our production and administrative activities including compliance with the Sarbanes-Oxley Act of 2002 Section 404.

Management has taken and will endeavor to continue to take a number of actions in order to improve our results of operations and the related cash flows generated from operations in order to strengthen our financial position, including the following items:

 ·expanding our label with the EPA to further our product registration internationally; ·continued expansion of our internal sales force and manufacturer representatives in an effort to drive global revenue in all verticals; ·continue research and development and add new products to our “Stera” product line; ·source alternative lower-cost suppliers; ·expansion of international distributors; and ·continued growth in all of our verticals.

During 2024 through 2025, we experienced increased demand for our CES where we collect deposits upon the execution of the contract. The deposits we receive fund the production for the CES and improve our overall liquidity through the duration of the project. We believe our sales for our CES will continue to grow and improve our financial results from a liquidity perspective as well as improve our operating margins due to the higher recurring solution sales we see for our CES system.

For