When are the purchase orders expected to be fulfilled and recognized in the financial statements?

Timing of fulfillment & revenue recognition

TOMI’s press release states that the company has received “significant purchase orders” from a new eye‑health client for 2025. Under U.S. GAAP (and the IFRS “point‑of‑sale” model), a company can only recognize revenue when the promised goods or services are delivered (or the performance obligation is satisfied) and the amount is measurable and collectible. Because the orders are tied to the 2025 calendar year, the actual shipments, installations and related services are expected to be carried out throughout 2025 – most likely beginning in the second half of the year as the client ramps up production and the contracts move from the “order” stage to the “execution” stage.

Consequently, the revenue from these orders will not appear in TOMI’s 2024 financial statements. It will be recognized in the 2025 fiscal year, with the bulk of the impact showing up in the Q3–Q4 2025 earnings releases (or the 2025 annual filing) once the deliveries are made and the performance obligations are fulfilled. Until the goods/services are shipped, the orders remain an off‑balance‑sheet commitment; only the related contract assets/liabilities (e.g., bill‑of‑materials, work‑in‑process) may be disclosed in the footnotes.

Trading implication

Because the revenue will only be booked in 2025, the market will price the news today on the basis of future growth expectations rather than immediate earnings. Expect the stock to trade on a forward‑looking premium (higher multiples) as analysts project incremental 2025 top‑line and margin expansion. Short‑term traders can capitalize on the upside by buying on any pull‑back, while longer‑term investors should focus on the Q4‑2025 earnings cycle when the order fulfillment will materially lift TOMI’s revenue and EPS. Technicals will likely show a breakout on the news, but the true earnings‑driven move will be confirmed once the Q4‑2025 results are released.