Company: TOMZ
Filing Date: 2025-09-30
Form Type: ARS
Source: 0001654954-25-011264
Chunk: 57

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-09-30
Form: ARS
Chunk 57
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 the current year period.

| 35 |

Depreciation and Amortization

|                               |     | For The Year Ended  December 31, |    2024 |     |   |    2023 |     | Change |         |   |
|:------------------------------|:----|:---------------------------------|--------:|:----|:--|--------:|:----|:-------|:--------|:--|
| Depreciation and Amortization |     | $                                | 297,000 |     | $ | 367,000 |     | $      | (70,000 | ) |

Depreciation and amortization was approximately $297,000 and $367,000 for the years ended December 31, 2024 and 2023, respectively, representing a decrease of $70,000, or 19%. The decrease in depreciation expense is due to a lower amount of fixed assets being depreciated in the current year period when compared to the same prior year periods.

Selling Expenses

|                  |     | For The Year Ended  December 31, |      2024 |     |   |      2023 |     | Change |          |   |
|:-----------------|:----|:---------------------------------|----------:|:----|:--|----------:|:----|:-------|:---------|:--|
| Selling Expenses |     | $                                | 1,128,000 |     | $ | 1,351,000 |     | $      | (223,000 | ) |

Selling expenses for the year ended December 31, 2024 were approximately $1,128,000, as compared to $1,351,000 for the year ended December 31, 2023, representing a decrease of approximately $223,000, or 17%. The decline in selling expenses is due to lower advertising costs and sales commission incurred in the current year period due to less sales generated by third party representatives.

Research and Development

|                          |     | For The Year Ended  December 31, |    2024 |     |   |    2023 |     | Change |          |   |
|:-------------------------|:----|:---------------------------------|--------:|:----|:--|--------:|:----|:-------|:---------|:--|
| Research and Development |     | $                                | 291,000 |     | $ | 492,000