Company: TOMZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013088
Chunk: 22

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
---
,000 Total $497,000 

 18Table of Contents

NOTE 7. LEASES  In April 2018, we entered into a 10-year lease agreement for a new 9,000-square-foot facility that contains office, warehouse, lab and research and development space in Frederick, Maryland. The lease agreement commenced in December 2018 when the property was ready for occupancy. The agreement provided for 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 June 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:   September 30, 2025   December 31,  Operating leases: (Unaudited)  2024 Assets:      Operating lease right-of-use asset $342,229  $399,254          Liabilities:        Current Portion of Long-Term Operating Lease $139,917  $129,132 Long-Term Operating Lease, net of current portion  407,781   513,395 Total Right of Use Liability $547,698  $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  For the nine months ended   September 30, (Unaudited)  September 30, (Unaudited)   2025  2024  2025  2024 Operating Lease Expense $39,329  $39,329  $117,986  $117,986  Other information related to leases where we are the lessee is as follows:   September 30, 2025   December 31,    (Un