Company: TOMZ
Filing Date: 2025-09-30
Form Type: ARS
Source: 0001654954-25-011264
Chunk: 56

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-09-30
Form: ARS
Chunk 56
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 $6,125,000, respectively, a decrease of $27,000 when compared to the same prior year period

Internationally, our revenue for the years ended December 31, 2024 and 2023, was approximately $1,641,000 and $1,230,000, respectively, representing an increase of $411,000.

Cost of Sales

|               |     | For The Year Ended  December 31, |      2024 |     |   |      2023 |     | Change |           |
|:--------------|:----|:---------------------------------|----------:|:----|:--|----------:|:----|:-------|----------:|
| Cost of Sales |     | $                                | 4,182,000 |     | $ | 3,065,000 |     | $      | 1,117,000 |

Cost of sales was $4,182,000 and $3,065,000 for the years ended December 31, 2024 and 2023, respectively, an increase of $1,117,000, compared to the prior year. The increase in cost of sales was primarily due to the adjustment to our inventory reserve of $1,005,000, which was increased to account for additional slow-moving items in our year-end inventory records compared to anticipated demand for certain units. Our gross profit as a percentage of sales for the year ended December 31, 2024 was 46% compared to 58% in the same prior period, respectively. Before consideration of the additional inventory reserve, our gross margins were consistent with the prior year.

Professional Fees

|                   |     | For The Year Ended  December 31, |    2024 |     |   |    2023 |     | Change |        |
|:------------------|:----|:---------------------------------|--------:|:----|:--|--------:|:----|:-------|-------:|
| Professional Fees |     | $                                | 597,000 |     | $ | 576,000 |     | $      | 21,000 |

Professional fees are comprised mainly of legal, accounting, and financial consulting fees.

Professional fees were $597,000 and $576,000 for the years ended December 31, 2024 and 2023, respectively, representing an increase of approximately $21,000 in the current year period. The increase is attributable to higher accounting and legal fees in