Company: TOMZ
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001654954-25-004233
Chunk: 320

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 13
Chunk 320
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 leases 4.00 years  5.00 years        Discount rate:      Operating leases  7.00%  7.00% Supplemental cash flow information related to leases where we are the lessee is as follows:   For the Year Ended December 31, 2024  For the Year Ended December 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: $165,098  $160,290  As of December 31, 2024, the maturities of our operating lease liability are as follows: Year Ended: Operating Lease December 31, 2025 $170,051 December 31, 2026  175,153 December 31, 2027  180,408 December 31, 2028  185,819 December 31, 2029  33,752 Thereafter  - Total minimum lease payments  745,183 Less: Interest  102,656 Present value of lease obligations  642,527 Less: Current portion  129,132 Long-term portion of lease obligations $513,395 

 F-19Table 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 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 years ended December 31, 2024 and 2023 were $15,063 and $15,063, respectively.

NOTE 9. CONVERTIBLE DEBT On 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