Company: TOMZ
Filing Date: 2025-09-30
Form Type: ARS
Source: 0001654954-25-011264
Chunk: 112

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-09-30
Form: ARS
Chunk 112
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 the option of the holder, at a conversion price of $1.25 per share, which shall not exceed $1.55 per share. In addition, we can require Investors to convert the Notes at the then current conversion price at any time after 90 days from the issue date if the Common Stock has a closing bid price of $1.55 per share or higher on any twenty (20) days within a thirty (30) day period of consecutive trading days, or if a “fundamental change” occurs (as defined in the Securities Purchase Agreement). The Notes are unsecured and senior to other indebtedness subject to certain exceptions. Interest expense related to the Notes for the years ended December 31, 2024 and 2023 was $312,000 and $54,892, respectively.

Amortization of deferred financing costs were $62,480 and $10,413 for the years ended December 31, 2024 and 2023, respectively, which has been included with interest expense on the statement of operations.

Convertible notes consist of the following at:

|                           |     | 2024 | December 31, |   |     | 2023 | December 31, |   |
|:--------------------------|:----|:-----|-------------:|:--|:----|:-----|-------------:|:--|
| Convertible notes         |     | $    |    2,600,000 |   |     | $    |    2,600,000 |   |
| Less: Debt issuance costs |     |      |     (312,398 | ) |     |      |     (312,398 | ) |
| Accumulated amortization  |     |      |       72,892 |   |     |      |       10,413 |   |
| Convertible notes, net    |     | $    |    2,360,494 |   |     | $    |    2,298,015 |   |

| F-20 |

NOTE 10. SHAREHOLDERS’ EQUITY

Our Board of Directors (the “Board”) may, without further action by our shareholders, from time to time, direct the issuance of any authorized but unissued or unreserved shares of preferred stock in series and at the time of issuance, determine the rights, preferences and limitations of each series. The holders of such preferred stock may be entitled to receive a preference payment in the event of any liquidation,