Company: TOMZ
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001654954-25-004233
Chunk: 113

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 113
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578,000  $4,627,000  Our inventory reserve was adjusted upwards by $1,005,000 during the fiscal year ended December 31, 2024, to account for additional slow-moving items in our year-end inventory records compared to anticipated demand for certain units.

NOTE 4. VENDOR DEPOSITS On December 31, 2024 and December 31, 2023, we maintained vendor deposits of $35,895 and $29,335, respectively, for open purchase orders for inventory.

 F-17Table of Contents

NOTE 5. PROPERTY AND EQUIPMENT Property and equipment consist of the following at:   December 31, 2024  December 31, 2023 Furniture and fixtures $458,652  $364,819 Equipment  2,301,803   2,269,185 Vehicles  66,170   66,170 Computer and software  316,334   306,556 Leasehold improvements  393,381   393,381 Tenant Improvement Allowance    405,000   405,000          Total Property and Equipment  3,941,340   3,805,111 Less: Accumulated depreciation  3,065,891   2,756,469 Property and Equipment, net $875,449  $1,048,642  For the years ended December 31, 2024 and 2023, depreciation was $270,228 and $345,556, respectively. For the years ended December 31, 2024 and 2023, amortization of tenant improvement allowance was $39,194 and was recorded as lease expense and included within general and administrative expense on the consolidated statement of operations.

NOTE 6. INTANGIBLE ASSETS Intangible assets consist of patents and trademarks related to our Binary Ionization Technology. We amortize the patents over the estimated remaining lives of the related patents. The trademarks have an indefinite life. Amortization expense was $26,308 and $21,121 for the years ended December 31, 2024 and 2023, respectively. Definite life intangible assets consist of the following:  December 31, 2024  December 31, 2023 Intellectual Property and Patents  $3,350,031  $