Company: TOMZ
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001654954-25-005288
Chunk: 19

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 annual rent of $143,460, an escalation clause that increases the rent 3% year over year, a landlord tenant improvement allowance of $405,000 and additional landlord work as discussed in the lease agreement. We took occupancy of the property on December 17, 2018, and the lease was amended in March 2019 to provide for a 4-month rent holiday and a commencement date of April 1, 2019. A 7% discount rate was determined using our incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.  The balances for our operating lease where we are the lessee are presented as follows within our condensed consolidated balance sheet: Operating leases: March 31, 2025(Unaudited)  December 31, 2024 Assets:      Operating lease right-of-use asset $380,791  $399,254 Liabilities:        Current Portion of Long-Term Operating Lease $132,660  $129,132 Long-Term Operating Lease, Net of Current Portion  479,357   513,395 Total Right of Use Liability $612,017  $642,527  The components of lease expense are as follows and are included within general and administrative expense on our condensed consolidated statement of operations:   For the Three Months Ended March 31, 2025 (Unaudited)  For the Three Months Ended March 31, 2024 (Unaudited)        Operating lease expense $39,329  $39,329 

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Other information related to leases where we are the lessee is as follows:   March 31, 2025(Unaudited)  December 31, 2024 Weighted-average remaining lease term:      Operating leases  3.75 years     4.00 years   Discount rate:      Operating leases  7.00%  7.00% Supplemental cash flow information related to leases where we are the lessee is as follows:   For the Three Months Ended March 31, 2025 (Unaudited)  For the Three Months Ended March 31, 2024 (Unaudited) Cash paid