Company: TOMZ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013088
Chunk: 31

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 tax assets will not be realized, such that a 100% valuation allowance is required against U.S. deferred tax assets.

NOTE 16. CUSTOMER CONCENTRATION The Company had certain customers whose accounts receivable balances individually represented 10% or more of the Company’s accounts receivable, and whose sales for the three and nine months represented 10% or more of the Company’s revenue. One customer accounted for 23% of net revenue for the three months ended September 30, 2025. Two customers accounted for 12% of net revenue for the three months ended September 30, 2024. One customer accounted for 12% of net revenue for the nine months ended September 30, 2025. One customer accounted for 18% of net revenue for the nine months ended September 30, 2024. As of September 30, 2025, two customers accounted for 40% of our gross accounts receivable. As of December 31, 2024, two customers accounted for 25% of our gross accounts receivable.

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NOTE 17. SEGMENT REPORTING Our Chief Executive Officer, as the CODM, organizes our Company, manages resource allocations and measures performance among one operating and reportable segment due to the fact that we derive our revenue primarily from one product (equipment and service revenue based on our patented BIT technology). A breakdown of revenue is presented in “Revenue Recognition” in Note 2 above. We evaluated the aggregation criteria in ASC 280-10-50-11 which states that aggregation can be considered if segments are similar in certain areas, including the nature of products and services, production processes, type of class of customer, and future economic performance. Our CODM is regularly provided with more detailed expense information than what is included in our consolidated income statement. The CODM considers monthly budgets and cash flow projections, gross margins for each project, and our consolidated net income (loss) as reported on the income statement when allocating resources and assessing our performance. We are required to apply the guidance in ASC 280 and identify significant segment expenses and other segment items for our single reportable segment.

NOTE 18. EMPLOYEE RETENTION CREDITS During the nine months ended September 30, 2025, the Company recorded refunds as a result of Employee Retention Credits (ERC), which are refundable tax credits against certain employment taxes initially made available under the Coronavirus Aid, Relief, and Economic Security