Company: TOMZ
Filing Date: 2025-09-30
Form Type: ARS
Source: 0001654954-25-011264
Chunk: 114

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-09-30
Form: ARS
Chunk 114
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 received by our employees with the following assumptions: volatility, 139%; expected dividend yield, 0%; risk free interest rate, 3.59%; and an expected life of 5 years. The grant date fair value of each share of Common Stock underlying the options was $0.76.

In May 2024, we issued options to purchase 225,000 shares of Common Stock to officers at an exercise price of $0.75 per share pursuant to an employment agreement. The options were valued at $144,307 and have a contractual term of 10 years. We utilized the Black-Scholes model to fair value the options received by Officers with the following assumptions: volatility, 125%; expected dividend yield, 0%; risk free interest rate, 4.35%; and a contractual term of 10 years. The grant date fair value of each share of Common Stock underlying the options was $0.64.

The total stock based compensation for the years ended December 31, 2024 and 2023, was $144,307 and $163,286, respectively which has been in included within General and Administration expense in our statement of operations.

| F-21 |

The following table summarizes stock options outstanding as of December 31, 2024 and 2023:

|                                  |     |                   | December 31, 2024 |   |     |                                 |      |     |                   | December 31, 2023 |   |     |                                 |      |
|:---------------------------------|:----|:------------------|------------------:|:--|:----|:--------------------------------|-----:|:----|:------------------|------------------:|:--|:----|:--------------------------------|-----:|
|                                  |     | Number of Options |                   |   |     | Weighted Average Exercise Price |      |     | Number of Options |                   |   |     | Weighted Average Exercise Price |      |
| Outstanding, beginning of period |     |                   |           617,542 |   |     | $                               | 1.38 |     |                   |           413,000 |   |     | $                               | 1.65 |
| Granted                          |     |                   |           225,000 |   |     |                                 | 0.75 |     |                   |           217,042 |   |     |                                 | 0.82 |
| Exercised                        |     |                   |           (31,