Company: TOMZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013088
Chunk: 20

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide a practical expedient permitting an entity to assume that conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current classified accounts receivable and contract assets. This update is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal years. Adoption of this ASU can be applied prospectively for reporting periods after its effective date. Early adoption is permitted. We are currently evaluating the provisions of this ASU and do not expect this ASU to have a material impact on our consolidated financial statements.

NOTE 3. INVENTORIES Inventories consist of the following at (rounded to the nearest thousandth):   September 30, 2025 (Unaudited)  December 31, 2024 Finished Goods $3,332,000  $3,800,000 Raw Materials  900,000   878,000 Inventory Reserve  (868,000)  (1,100,000)Total $3,364,000  $3,578,000   Our inventory reserve decreased by $232,000 during the nine months ended September 30, 2025 due to higher than anticipated equipment sales during the current fiscal year.

NOTE 4. VENDOR DEPOSITS At September 30, 2025, and December 31, 2024, we maintained vendor deposits of $222,065 and $35,895, respectively, for open purchase orders for inventory.

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NOTE 5. PROPERTY AND EQUIPMENT Property and equipment consist of the following at:   September 30, 2025 (Unaudited)  December 31, 2024 Furniture and fixtures $458,652  $458,652 Equipment  2,316,200   2,301,803 Vehicles  66,170   66,170 Computer and software  318,999   316,334 Leasehold improvements  393,381   393,381 Tenant Improvement Allowance  405,000   405,000 Total cost of Property and Equipment  3,958,402   3,941,340 Less: