Company: TOMZ
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001654954-25-004233
Chunk: 107

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 107
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 and sell our products. Our revenue is not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Shipping and handling costs charged to customers are included in Product Revenues. The associated expenses are treated as fulfillment costs and are included in Cost of Revenues. Revenues are reported net of sales taxes collected from Customers. Disaggregation of Revenue The following table presents our revenues disaggregated by revenue source (rounded to nearest thousandth). Product and Service Revenue  For The Years EndedDecember 31,  Change   2024  2023  $ SteraMist Product $6,035,000  $5,781,000  $254,000 Service and Training  1,704,000   1,574,000   130,000 Total $7,739,000  $7,355,000  $384,000  Revenue by Geographic Region   For The Years EndedDecember 31,  Change   2024  2023  $ United States $6,098,000  $6,125,000  $(27,000)International  1,641,000   1,230,000   411,000 Total $7,739,000  $7,355,000  $384,000 

 F-14Table of Contents

Product revenue includes sales from our standard and customized equipment, solution and accessories sold with our equipment. Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for those products. Service and training revenue include sales from our high-level decontamination and service engagements, validation of our equipment and technology and customer training. Service revenue is recognized as the agreed upon services are rendered to our customers in an amount that reflects the consideration we expect to receive in exchange for those services. Estimated allowances for sales returns are recorded as sales are recognized. We use a specific identification method based on subsequent product return activity and historical average calculations to estimate the allowance for sales returns. For the years ended December 31, 2024 and 2023, we recorded an allowance of $227,000 and $128,390, respectively. Costs to Obtain a Contract with a Customer We apply a practical expedient to expense costs as incurred for costs to obtain a