Company: TOMZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001654954-25-009631
Chunk: 18

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 experience, industry projections, micro and macro general economic condition projections, and our expectations. We had no long-lived asset impairment charges for the three and six months ended June 30, 2025 and 2024.

 16Table of Contents

Advertising and Promotional Expenses Advertising and promotional costs are expensed in the period they are incurred. For the three and six months ended June 30, 2025, advertising and promotional expenses included in selling expenses were approximately $33,000 and $64,000, respectively. For the same periods in 2024, these expenses were approximately $65,000 and $157,000, respectively. Research and Development Expenses Research and development expenses are expensed in the period they are incurred. For the three and six months ended June 30, 2025, these expenses were approximately $84,000 and $129,000, respectively. For the same periods in 2024, research and development expenses were approximately $62,000 and $130,000, respectively. Business Segments We currently have one reportable business segment due to the fact that we derive our revenue primarily from one product in which 1) The business activities are homogenous in nature, 2) The entire operation faces similar market conditions and risks, 3) There is a high degree of integration in its operations, 4) Internal evaluations of financial results are conducted on a consolidated basis. A breakdown of revenue is presented in “Revenue Recognition” in Note 2 above. See Note 17, Segment Reporting for more details. We are required to apply the guidance in ASC 280 and identify significant segment expenses and other segment items for our single reportable segment. Going Concern For the six months ended June 30, 2025 and 2024, our net loss was approximately $1,493,000 and $1,280,000, respectively, and the cash used in operations was approximately $463,000 and $1,558,000, respectively. As of June 30, 2025, we had approximately $569,450 cash and cash equivalents and an accumulated deficit of $55.8 million. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. The Company’s consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business; no adjustments have been made relating to the recoverability