15. SUBSEQUENT EVENTS	12 Months Ended
Dec. 31, 2016
Notes to Financial Statements
NOTE 15. SUBSEQUENT EVENTS	We have evaluated subsequent events through the date the financial statements were issued and up to the time of filing of the financial statements with the Securities and Exchange Commission. Effective March 14, 2017, Mr. Edward J. Fred resigned from his position as director. In March 2017 we issued senior callable convertible promissory notes (the “Notes”) with an aggregate principal amount of $5,300,000. The Notes mature on August 31, 2018, unless earlier redeemed, repurchased or converted. The Notes are convertible at any time by the holder into common stock at a conversion price of $0.54 per share. Subsequent to September 1, 2017, TOMI may redeem the Notes at any time prior to maturity at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest as of the redemption date. Interest on the Notes is payable semi-annually in cash on February 28 and August 31 of each year, beginning on August 31, 2017, at a rate of 4 percent per annum. In addition, TOMI issued three-year warrants to purchase up to an aggregate of 833,333 shares of common stock at an exercise price of $0.69 per share.

15. SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2016

We have evaluated subsequent events through the date the financial statements were issued and up to the time of filing of the financial statements with the Securities and Exchange Commission.

Effective March 14, 2017, Mr. Edward J. Fred resigned from his position as director.

In March 2017 we issued senior callable convertible promissory notes (the “Notes”) with an aggregate principal amount of $5,300,000. The Notes mature on August 31, 2018, unless earlier redeemed, repurchased or converted. The Notes are convertible at any time by the holder into common stock at a conversion price of $0.54 per share. Subsequent to September 1, 2017, TOMI may redeem the Notes at any time prior to maturity at a price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest as of the redemption date. Interest on the Notes is payable semi-annually in cash on February 28 and August 31 of each year, beginning on August 31, 2017, at a rate of 4 percent per annum. In addition, TOMI issued three-year warrants to purchase up to an aggregate of 833,333 shares of common stock at an exercise price of $0.69 per share.