Company: TOMZ
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001654954-25-004233
Chunk: 1138

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 6
Chunk 1138
---
 tax liabilities:        Operating lease right-of-use assets  (158,000)  (189,000)Property and Equipment  (77,000)  (133,000)   (235,000)  (322,000)         Net Deferred Tax Assets and Liabilities $-  $-  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 ASC-740 guidance for income taxes. As of December 31, 2024, we recorded a valuation allowance of $8,678,000 for the portion of the deferred tax assets that we do not expect to be realized. The valuation allowance on our net deferred taxes increased by $1,139,000 during the year ended December 31, 2024, primarily due to U.S. deferred tax assets incurred in the current year that cannot be realized.  The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted.

 F-25Table of Contents

For income tax purposes in the United States, we had available federal net operating loss carryforwards (“NOL”) as of December 31, 2024 and 2023 of approximately $22,434,000 and $20,234,000 respectively to reduce future federal taxable income. For income tax purposes in the United States, we had available state NOL carryforwards as of December 31, 2024 and 2023 of approximately $20,045,000 and $17,433,000 respectively to reduce future state taxable income. If any of the NOL’s generated prior to 2018 are not utilized, they will expire at various dates through 2037. NOL’s generated after 2017 carry forward indefinitely. There may be certain limitations as to the future annual use of the NOLs due to certain changes in our ownership. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the