Company: TOMZ
Filing Date: 2025-12-11
Form Type: 424B5
Source: 0001654954-25-013870
Chunk: 10

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-12-11
Form: 424B5
Chunk 10
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 will require additional financing to sustain our operations, without which we may not be able to continue operations, and the terms of subsequent financings may adversely impact our stockholders.

We may direct Hudson Global to purchase up to $20,000,000 worth of shares of our common stock under our agreement from time to time over a twenty-four (24) month period commencing after the satisfaction of certain conditions set forth in the Purchase Agreement, generally (i) in minimum amount not less than $25,000 (calculated using the Initial Purchase Price (as defined in the Purchase Agreement)) and (ii) in a maximum amount up to the lesser of (a) $2,000,000 (calculated using the Initial Purchase Price) or (b) 200% of the Average Daily Trading Value (such share amounts being subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction as provided in the Purchase Agreement).

The extent to which we rely on Hudson Global as a source of funding will depend on a number of factors including the prevailing market price of our common stock and the extent to which we are able to secure working capital from other sources. If obtaining sufficient funding from Hudson Global were to prove unavailable or prohibitively dilutive, we will need to secure another source of funding in order to satisfy our working capital needs. Even if we sell all of the $20,000,000 of our common stock to Hudson Global under the Purchase Agreement, we will still need additional capital to finance our product development programs, commercialization efforts and working capital needs, and we may have to raise funds through the issuance of equity or debt securities. Depending on the type and the terms of any financing we pursue, stockholders’ rights and the value of their investment in our common stock could be reduced. A financing could involve one or more types of securities including common stock, convertible debt or warrants to acquire common stock. These securities could be issued at or below the then prevailing market price for our common stock. In addition, if we issue secured debt securities, the holders of the debt would have a claim to our assets that would be prior to the rights of stockholders until the debt is paid. Interest on these debt securities would increase costs and negatively impact operating results. If the issuance of new securities results in diminished rights to holders of our common stock, the market price of our common stock could be negatively impacted. Should the financing we require to sustain our clinical development and working capital needs be unavailable