Company: TOMZ
Filing Date: 2025-09-30
Form Type: ARS
Source: 0001654954-25-011264
Chunk: 58

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-09-30
Form: ARS
Chunk 58
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 |     | $      | (201,000 | ) |

Research and development expenses for the year ended December 31, 2024 were approximately $291,000, as compared to $492,000 for the year ended December 31, 2023, representing a decrease of approximately $201,000, or 41%. The decline in research and development expenses is due to a planned reduction in the budget and cost-cutting measures.

Consulting Fees

|                 |     | For The Year Ended  December 31, |    2024 |     |   |    2023 |     | Change |         |   |
|:----------------|:----|:---------------------------------|--------:|:----|:--|--------:|:----|:-------|:--------|:--|
| Consulting Fees |     | $                                | 226,000 |     | $ | 283,000 |     | $      | (57,000 | ) |

Consulting fees were $226,000 and $283,000 for the years ended December 31, 2024 and 2023, respectively, representing a decrease of $57,000, or 20%. The decrease in consulting fees is due to termination of select external consulting agreements, with remaining consultants agreeing to reduce their consultant fees, as part of our cost-reduction measures implemented June 2024.

General and Administrative Expense

|                            |     | For The Year Ended  December 31, |      2024 |     |   |      2023 |     | Change |         |
|:---------------------------|:----|:---------------------------------|----------:|:----|:--|----------:|:----|:-------|--------:|
| General and Administrative |     | $                                | 5,123,000 |     | $ | 4,571,000 |     | $      | 552,000 |

General and administrative expense includes salaries and payroll taxes, rent, insurance expense, utilities, office expense, product registration costs and credit loss expense.

| 36 |

General and administrative expenses were $5,123,000 and $4,571,000 for the years ended December 31, 2024 and 2023, respectively, an increase of $552,000 in the current year period. The increase in general and administrative expenses was attributable to a charge incurred in connection with the increase to our reserve for expected credit losses in the amount of $959,000, offset by