Company: TOMZ
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001654954-25-004233
Chunk: 892

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 4
Chunk 892
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For The Year Ended December 31,  Change    2024  2023  $ Cost of Sales $4,182,000  $3,065,000  $1,117,000 

Cost of sales was $4,182,000 and $3,065,000 for the years ended December 31, 2024 and 2023, respectively, an increase of $1,117,000, compared to the prior year. The increase in cost of sales was primarily due to the adjustment to our inventory reserve of $1,005,000, which was increased to account for additional slow-moving items in our year-end inventory records compared to anticipated demand for certain units. Our gross profit as a percentage of sales for the year ended December 31, 2024 was 46% compared to 58% in the same prior period, respectively.  Before consideration of the additional inventory reserve, our gross margins were consistent with the prior year.

Professional Fees

   For The Year Ended December 31,  Change    2024  2023  $ Professional Fees  $597,000  $576,000  $21,000 

Professional fees are comprised mainly of legal, accounting, and financial consulting fees.

Professional fees were $597,000 and $576,000 for the years ended December 31, 2024 and 2023, respectively, representing an increase of approximately $21,000 in the current year period. The increase is attributable to higher accounting and legal fees in the current year period.

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Depreciation and Amortization

   For The Year Ended December 31,  Change    2024  2023  $  Depreciation and Amortization $297,000  $367,000  $(70,000)

Depreciation and amortization was approximately $297,000 and $367,000 for the years ended December 31, 2024 and 2023, respectively, representing a decrease of $70,000, or 19%.  The decrease in depreciation expense is due to a lower amount of fixed assets being depreciated in the current year period when compared to the same prior year periods.

Selling Expenses

   For The Year Ended December 31,  Change    2024  2023  $ Selling Expenses