Company: TOMZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001654954-25-009631
Chunk: 23

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 1 - December 31, 2025 $85,649 December 31, 2026  175,153 December 31, 2027  180,408 December 31, 2028  185,820 December 31, 2029  34,841 Total Minimum Lease Payments  661,871 Less: Interest  81,317 Imputed value of lease obligations  580,554 Less: Current portion  136,227 Long-term portion of lease obligations $444,327 

 20Table of Contents

NOTE 8. CLOUD COMPUTING SERVICE CONTRACT In May 2020, we entered into a cloud computing service contract with a vendor. The contract provides for annual payments in the amount of $30,409 and has a term of 5 years. The annual contract payments are capitalized as a prepaid expense and amortized over a twelve-month period. We have incurred implementation costs of $66,857 in connection with the cloud computing service contract which have been capitalized in prepaid expenses and other assets as of June 30, 2025 and December 31, 2024. In accordance with ASU No. 2018-15, such implementation costs are being amortized over the remaining contract terms beginning January 1, 2021, which was when the cloud-based service contract was placed in service. Amortization expense for the three and six months ended June 30, 2025 were $3,671 and $7,436, respectively. Amortization expense for the three and six months ended June 30, 2024 were $3,766 and $7,531, respectively.

NOTE 9. CONVERTIBLE DEBT In October and November 2023, we entered into a Securities Purchase Agreement (the “SPA”) with certain accredited investors (collectively, the “Investors”) pursuant to which we agreed to sell and issue to the Investors in a private placement transaction (the “Private Placement”) in one or more closings up to an aggregate principal amount of $5,000,000 of Convertible Notes (the “Notes”). In October and November 2023, we sold and issued an aggregate of $2,600,000 of Notes that are convertible into 2,080,000 shares of common stock at a conversion price of $1.25 per share. The Notes mature and are due on the fifth anniversary of the issuance date