Company: TOMZ
Filing Date: 2025-09-30
Form Type: ARS
Source: 0001654954-25-011264
Chunk: 60

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-09-30
Form: ARS
Chunk 60
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,000. Our principal capital requirements are to fund operations, invest in research and development and capital equipment, and the continued costs of compliance with public company reporting requirements. We have historically funded our operations through funds generated through operations and debt and equity financings. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and may include operating and financial covenants that would restrict our operations. We cannot be certain that any financing will be available in the amounts we need or on terms acceptable to us, if at all.

For the year ended December 31, 2024 and 2023, we incurred losses from operations of ($4,105,000) and ($3,349,000), respectively. Cash used in operations for the year ended December 31, 2024 and 2023, was ($1,440,000) and ($3,599,000), respectively.

A breakdown of our statement of cash flows for the year ended December 31, 2024 and 2023 is provided below:

|                                            |     | For the Year Ended December 31, |       2024 |   |     |   |       2023 |   |
|:-------------------------------------------|:----|:--------------------------------|-----------:|:--|:----|:--|-----------:|:--|
| Net Cash (Used) in Operating Activities    |     | $                               | (1,440,000 | ) |     | $ | (3,599,000 | ) |
| Net Cash (Used) in Investing Activities    |     | $                               |   (262,000 | ) |     | $ |   (217,000 | ) |
| Net Cash Provided By Financing Activities: |     | $                               |     27,500 |   |     | $ |  2,288,000 |   |

| 37 |

Operating Activities

Cash used in operating activities for the years ended December 31, 2024 and 2023 was $1,440,000 and $3,599,000, respectively. The decrease was attributable to a higher current year loss offset by non-cash adjustments to credit loss expense and inventory reserve, as well as increases to Accounts Payable and Deferred Revenue. In order to achieve positive cash flow from operations, we continue to closely monitor our cash flow position and implement targeted cost reductions in accordance with our budget.

Investing Activities

Cash used