Company: TOMZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013088
Chunk: 30

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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)  December 31, 2024 Commissions $178,932  $187,151 Payroll and related costs   488,968   125,773 Director fees      37,650   37,650 Sales Tax Payable     2,575   3,864 Accrued warranty (Note 14)  22,648   30,000 Other accrued expenses and current liabilities  97,950   71,237 Total  $828,723  $455,675 

NOTE 14. ACCRUED WARRANTY Our manufacturers assume the warranty against product defects from date of sale, which we extend to our customers upon sale of the product. We assume responsibility for product reliability and results. The warranty is generally limited to a refund of the original purchase price of the product or a replacement part. We estimate warranty costs based on historical warranty claim experience. The following table presents warranty reserve activities at:   September 30, 2025 (Unaudited)  December 31, 2024 Beginning accrued warranty costs $30,000  $30,000 Provision for warranty expense  15,637   9,707 Settlement of warranty claims  (22,989)  (9,707)Ending accrued warranty costs $22,648  $30,000 

NOTE 15. INCOME TAXES For the three and nine months ended September 30, 2025, and 2024, our provision for income tax was $0. Deferred income tax assets and liabilities are determined based on differences between the financial statement reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The measurement of deferred income tax assets is reduced, if necessary, by a valuation allowance for any tax benefits, which are, on a more likely than not basis, not expected to be realized in accordance with FASB ASC Topic 740, Income Taxes. As of September 30, 2025, and December 31, 2024, we recorded a valuation allowance of $9,223,000 and $8,678,000, respectively for the portion of the deferred tax assets that we do not expect to be realized. Management believes that based on the available information, it is more likely than not that the remaining U.S. deferred