Company: TOMZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001654954-25-009631
Chunk: 30

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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  13,660   9,707 Settlement of warranty claims  (13,660)  (9,707)Ending accrued warranty costs $30,000  $30,000 

NOTE 15. INCOME TAXES  For the three and six months ended June 30, 2025 and 2024, our provision for income tax was $0. 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 FASB ASC Topic 740, Income Taxes. As of June 30, 2025 and December 31, 2024, we recorded a valuation allowance of $9,097,000 and $8,678,000, respectively for the portion of the deferred tax assets that we do not expect to be realized. Management believes that based on the available information, it is more likely than not that the remaining U.S. deferred tax assets will not be realized, such that a 100% valuation allowance is required against U.S. deferred tax assets.

NOTE 16. CUSTOMER CONCENTRATION The Company had certain customers whose accounts receivable balances individually represented 10% or more of the Company’s accounts receivable, or whose sales for the three and six months represented 10% or more of the Company’s revenue. One customer accounted for 10% of net revenue for the three months ended June 30, 2025. Two customers accounted for 54% of net revenue for the three months ended June 30, 2024. There were no customers who accounted for 10% or more of net revenue for the six months ended June 30, 2025. Two customers accounted for 41% of net revenue for the six months ended June 30, 2024. As of June 30, 2025, one customer accounted for 21% of our gross accounts receivable. As of December 31, 2024, two customers accounted for 25% of our gross accounts receivable.

NOTE 17. SEGMENT REPORTING Our Chief Executive Officer, as the CODM, organizes our Company, manages