Company: TOMZ
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001654954-25-005288
Chunk: 20

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 for amounts included in the measurement of lease liabilities: $41,578  $40,367  As of March 31, 2025, the maturities of our operating lease liability are as follows: Year Ended: Operating Lease April 1 – December 31, 2025 $128,474 December 31, 2026  175,153 December 31, 2027  180,408 December 31, 2028  185,819 December 31, 2029  33,751 Total minimum lease payments  703,605 Less:  Interest   91,588 Imputed value of lease obligations  612,017 Less: Current portion  132,660 Long-term portion of lease obligations $479,357 

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 March 31, 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 months ended March 31, 2025 and 2024 were $3,766 and $3,766, respectively.

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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