TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ: TOMZ), a
global company specializing in disinfection and decontamination
utilizing its premier Binary Ionization Technology (BIT) platform
through its SteraMist brand of products, today announced its
financial results for the first quarter ended March 31, 2024.
TOMI Chief Executive Officer, Dr. Halden Shane, stated,
“Although revenue was below expectation in the first quarter, we
saw continued growth in our sales pipeline, as well as an increase
in demand for our CES systems and iHP corporate
service. In addition to the $1,100,000 in sales for the
quarter, our sales backlog at the end of the quarter was $900,000
which we expect will primarily be recognized in the second and
third quarters of 2024. We’re seeing positive signs throughout the
marketplace, particularly in the pharmaceuticals and healthcare
sectors, where we’re seeing increased pipeline
activity.
“One of the notable wins in the first quarter was a notification
from the Department of Homeland Security that our SteraMist
technology has been included in their Science and Technology
Directorate Budget overview. The department expects to purchase 16
SteraMist Environment Systems for the amount of approximately
$2,000,000 to support the decontamination of the Plum Island Animal
Disease Center. In addition, TOMI has recently received
notification from a U.S. based multinational pharmaceutical company
that two of the Company’s CES systems, delivered in 2022, have
finally been qualified for use. Additional CES systems operating in
the marketplace is important for the positive long term growth and
evolution of our business model as these systems tend to be
meaningful consumers of our BIT solution.
“In the first quarter we continued to develop our government
relationships. This quarter TOMI was invited to submit a proposal
and apply to the Department of Defense to participate in a
$3,000,000 grant in connection with mitigation of the residual
effects of ethylene oxide. We recently submitted our proposal and
are currently waiting for a decision.
“We are off to a solid start in 2024 and will continue to focus
on executing our strategies to grow revenues, expand business
development and deliver improved results and value for our
shareholders,” Dr. Shane concluded.
Financial Results for the three months ended March 31,
2024, compared to March 31, 2023
- Total net revenue was $1,114,000 compared to $1,582,000.
- Gross margin was 60.2% compared to 59.5%.
- Operating loss was ($1,226,000), compared to ($1,188,000).
- Net loss was ($1,310,000) or ($0.07) per basic and diluted
share, compared to ($1,187,000) or ($0.06) per basic and diluted
share.
Balance sheet highlights as of March 31,
2024
- Cash and cash equivalents were approximately $1.1 million.
- Working capital was $6.6 million.
- Shareholders’ equity was $7.1 million.
Recent Business Highlights:
- Overall sales volume and sales order activity for the first
quarter of 2024 amounted to $2,000,000 which consisted of
approximately $1,100,000 in recognized revenue and an approximate
sales backlog of $900,000 at the end of the quarter.
- Continued growth in demand for CES with the signing of a new
contract for a SteraMist iHP Custom Engineered System (CES)
installation with a California-based life sciences company. The
contracted iHP Custom Engineered System (CES) is valued at
approximately $600,000. This system, featuring six applicators,
will be integrated into a clinical suite, and is expected to be
fully installed by the end of the third quarter in 2024.
- Informed by the Department of Homeland Security that 16
SteraMist Environment Systems, totaling approximately $2,000,000,
have been allocated from their Science and Technology Directorate
Budget for decontamination support at the Plum Island Animal
Disease Center
- Continued increase in demand for our SteraMist iHP service
where we saw quarter over quarter growth of 21%. For the three
months ended March 31, 2024 and 2023, our iHP service revenue was
$371,000 and $306,000, respectively.
- Expansion in its SteraMist iHP Corporate Service contracts with
the addition of new partners including the University of Texas and
Rising Pharmaceuticals reaffirming its position as a leading
provider of decontamination services to corporate clients in the
life sciences industry.
- Recently received notification from a U.S. based multinational
pharmaceutical company that two CES systems delivered in 2022 have
been qualified. As previously announced, the expected annual BIT
Solution revenue of the systems could amount to $250,000 once in
use.
- Attended and presented our SteraMist brand of products at
various tradeshows, most notable were Maryland Tech Council Event:
Technology Transformation Conference, National Air Duct Cleaners of
America Conference, AORN Surgical Expo, NFMT + Clean Building Expo,
Indoor Ag-Con + Grocery and PDA Annual Meeting.
- Received the Gold Safety Award from Highwire in recognition of
strong safety practices and performance.
Conference Call Information
TOMI will hold a conference call to discuss first quarter 2024
results at 4:30 p.m. ET today, May 15, 2024.
To participate in the call by phone, dial (844) 369-8770
approximately five minutes prior to the scheduled start time and
request the "TOMI Environmental Solutions first quarter earnings
call." International callers please dial (862) 298-0840. To access
the live webcast or view the press release, please visit the
Investor Relations section of the TOMI website or register at the
following link:
https://www.webcaster4.com/Webcast/Page/2262/50600.
A replay of the teleconference will be available until
Wednesday, May 29, 2024, and may be accessed by dialing (877)
481-4010. International callers may dial (919) 882-2331. Callers
should use replay access code: 50600. A replay of the webcast will
be available for at least 90 days on the company’s website,
starting approximately one hour after the completion of the
call.
TOMI™ Environmental Solutions, Inc.: Innovating for
a safer world®
TOMI™ Environmental Solutions, Inc. (NASDAQ:TOMZ) is a
global decontamination and infection prevention company, providing
environmental solutions for indoor surface disinfection through the
manufacturing, sales and licensing of its premier Binary Ionization
Technology® (BIT™) platform. Invented under a defense grant in
association with the Defense Advanced Research Projects Agency
(DARPA) of the U.S. Department of Defense, BIT™ solution
utilizes a low percentage Hydrogen Peroxide as its only active
ingredient to produce a fog of ionized Hydrogen Peroxide (iHP™).
Represented by the SteraMist® brand of products,
iHP™ produces a germ-killing aerosol that works like a visual
non-caustic gas. TOMI products are designed to service a broad
spectrum of commercial structures, including, but not limited to,
hospitals and medical facilities, cruise ships, office buildings,
hotel and motel rooms, schools, restaurants, meat and produce
processing facilities, military barracks, police and fire
departments, and athletic facilities. TOMI products and
services have also been used in single-family homes and multi-unit
residences.
TOMI develops training programs and application protocols
for its clients and is a member in good standing with The American
Biological Safety Association, The American Association of Tissue
Banks, Association for Professionals in Infection Control and
Epidemiology, Society for Healthcare Epidemiology of America,
America Seed Trade Association, and The Restoration Industry
Association.
For additional information, please
visit https://www.steramist.com/ or contact us
at info@tomimist.com.
Forward-Looking Statements
This press release contain forward-looking statements that are
based on current expectations, estimates, forecasts and projections
of future performance based on management’s judgment, beliefs,
current trends, and anticipated product performance. These
forward-looking statements include, without limitation, ability to
accelerate revenue; financial performance and operating results for
2024; upcoming launch of new products; expected growth in sales
pipeline and market demand; revenue opportunities of CES products
and brand recognition of our products. Forward-looking statements
involve risks and uncertainties that may cause actual results to
differ materially from those contained in the forward-looking
statements. These factors include, but are not limited to, our
ability to acquire new customers and expands sales; our ability to
maintain and manage growth and generate sales, our reliance on a
single or a few products for a majority of revenues; the general
business and economic conditions; and other risks as described in
our SEC filings, including our Annual Report on Form 10-K for the
fiscal year ended December 31, 2023 filed by us with the SEC and
other periodic reports we filed with the SEC. The information
provided in this document is based upon the facts and circumstances
known at this time. Other unknown or unpredictable factors or
underlying assumptions subsequently proving to be incorrect could
cause actual results to differ materially from those in the
forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance, or achievements. You should not place undue reliance
on these forward-looking statements. All information provided in
this press release is as of today’s date, unless otherwise stated,
and we undertake no duty to update such information, except as
required under applicable law.
TOMI ENVIRONMENTAL SOLUTIONS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
ASSETS |
|
|
|
Current Assets: |
|
|
|
March 31, 2024(Unaudited) |
December 31, 2023 |
Cash and Cash Equivalents |
$ |
1,093,219 |
|
|
$ |
2,339,059 |
|
Accounts Receivable - net |
|
2,115,691 |
|
|
|
2,429,929 |
|
Other Receivables |
|
164,150 |
|
|
|
164,150 |
|
Inventories |
|
4,645,885 |
|
|
|
4,627,103 |
|
Vendor Deposits |
|
124,427 |
|
|
|
29,335 |
|
Prepaid Expenses |
|
384,003 |
|
|
|
371,298 |
|
Total Current Assets |
|
8,527,375 |
|
|
|
9,960,874 |
|
|
|
|
|
Property and Equipment –
net |
|
1,060,640 |
|
|
|
1,048,642 |
|
|
|
|
|
Other Assets: |
|
|
|
Intangible Assets – net |
|
1,118,369 |
|
|
|
1,123,246 |
|
Operating Lease - Right of Use
Asset |
|
451,514 |
|
|
|
467,935 |
|
Long Term Accounts Receivable
- net |
|
206,240 |
|
|
|
206,240 |
|
Other Assets |
|
593,930 |
|
|
|
550,677 |
|
Total Other Assets |
|
2,370,053 |
|
|
|
2,348,098 |
|
Total Assets |
$ |
11,958,068 |
|
|
$ |
13,357,614 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
Current Liabilities: |
|
|
|
Accounts Payable |
$ |
1,351,118 |
|
|
$ |
1,267,029 |
|
Accrued Expenses and Other Current Liabilities |
|
472,525 |
|
|
|
675,491 |
|
Deferred Revenue |
|
13,659 |
|
|
|
- |
|
Current Portion of Long-Term Operating Lease |
|
118,911 |
|
|
|
115,658 |
|
Total Current Liabilities |
$ |
1,956,213 |
|
|
$ |
2,058,178 |
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
Long-Term Operating Lease, Net of Current Portion |
|
612,017 |
|
|
|
642,527 |
|
Convertible Notes Payable, net of discount of $286,366 and $301,985
at March 31, 2024 and December 31, 2023, respectively |
|
2,313,634 |
|
|
|
2,298,015 |
|
Total Long-Term Liabilities |
|
2,925,651 |
|
|
|
2,940,542 |
|
Total Liabilities |
$ |
4,881,864 |
|
|
$ |
4,998,720 |
|
|
|
|
|
Commitments and
Contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
Shareholders’ Equity: |
|
|
|
Cumulative Convertible Series A Preferred Stock; par value
$0.01 per share, 1,000,000 shares authorized; 63,750 shares
issued and outstanding at March 31, 2024 and December 31,
2023, respectively |
|
638 |
|
|
|
638 |
|
Cumulative Convertible Series B Preferred Stock; $1,000 stated
value; 7.5% Cumulative dividend; 4,000 shares authorized; none
issued and outstanding at March 31, 2024 and December 31,
2023, respectively |
|
- |
|
|
|
- |
|
Common stock; par value $0.01 per share, 250,000,000 shares
authorized; 19,955,205 and 19,923,955 shares issued and
outstanding at March 31, 2024 and December 31, 2023,
respectively |
|
199,553 |
|
|
|
199,240 |
|
Additional Paid-In Capital |
|
58,012,432 |
|
|
|
57,985,245 |
|
Accumulated Deficit |
|
(51,136,419 |
) |
|
|
(49,826,229 |
) |
Total Shareholders’ Equity |
|
7,076,204 |
|
|
|
8,358,894 |
|
Total Liabilities and
Shareholders’ Equity |
$ |
11,958,068 |
|
|
$ |
13,357,614 |
|
|
TOMI ENVIRONMENTAL SOLUTIONS, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
For The Three Months Ended |
|
|
|
March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
Sales, net |
|
$ |
1,114,087 |
|
|
$ |
1,582,172 |
|
Cost of Sales |
|
|
443,419 |
|
|
|
640,935 |
|
Gross Profit |
|
|
670,668 |
|
|
|
941,237 |
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
Professional Fees |
|
|
197,999 |
|
|
|
137,185 |
|
Depreciation and Amortization |
|
|
77,921 |
|
|
|
88,776 |
|
Selling Expenses |
|
|
289,069 |
|
|
|
376,653 |
|
Research and Development |
|
|
67,971 |
|
|
|
70,520 |
|
Consulting Fees |
|
|
113,635 |
|
|
|
75,455 |
|
General and Administrative |
|
|
1,150,549 |
|
|
|
1,380,794 |
|
Total Operating
Expenses |
|
|
1,897,144 |
|
|
|
2,129,383 |
|
Income (loss) from
Operations |
|
|
(1,226,476 |
) |
|
|
(1,188,146 |
) |
|
|
|
|
|
|
Other Income
(Expense): |
|
|
|
|
Interest Income |
|
|
9,906 |
|
|
|
659 |
|
Interest Expense |
|
|
(93,620 |
) |
|
|
- |
|
Total Other Income
(Expense) |
|
|
(83,714 |
) |
|
|
659 |
|
|
|
|
|
|
|
Income (loss)
before income taxes |
|
|
(1,310,190 |
) |
|
|
(1,187,487 |
) |
Provision for
Income Taxes |
|
|
- |
|
|
|
- |
|
Net Income
(loss) |
|
$ |
(1,310,190 |
) |
|
$ |
(1,187,487 |
) |
|
|
|
|
|
|
Net income (loss)
Per Common Share |
|
|
|
|
Basic |
|
$ |
(0.07 |
) |
|
$ |
(0.06 |
) |
Diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
Basic Weighted
Average Common Shares Outstanding |
|
|
19,954,511 |
|
|
|
19,806,622 |
|
Diluted Weighted
Average Common Shares Outstanding |
|
|
19,954,511 |
|
|
|
19,806,622 |
|
INVESTOR RELATIONS CONTACT:John Nesbett/Roz ChristianIMS
Investor Relationstomi@imsinvestorrelations.com
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