Company: TOMZ
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001654954-25-004233
Chunk: 597

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1B
Chunk 597
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 effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU was adopted retrospectively on December 31, 2024 and resulted in us including the additional required disclosures. .Refer to Note 17, Segment Reporting about the areas for the inclusion of the new required disclosures.

NOTE 3. INVENTORIES Inventories consist of the following at (rounded to the nearest thousandth):   December 31, 2024  December 31, 2023 Finished goods $3,800,000  $3,980,000 Raw Materials  878,000   742,000 Inventory Reserve  (1,100,000)  (95,000)Inventory, net $3,578,000  $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