TOMI ENVIRONMENTAL SOLUTIONS, INC. REPORTS
170% SEQUENTIAL GROWTH IN SECOND QUARTER REVENUE WITH BREAK EVEN EPS
- Company Reports Operating Income of $122,000 And Positive Net Income -
- Performance Driven By Growth in International, Mobile Equipment and BIT Solutions Sales -
FREDERICK, MD, August 1, 2024 — 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 second quarter 2024 results.
TOMI Chief Executive Officer, Dr. Halden Shane, stated, “In
the second quarter of 2024, we achieved profitability and delivered improved financial results through revitalized revenue growth. These efforts contributed to a quarterly profit of $30,000. Our revenue for the second quarter increased 8.6% year
over year to $3,000,000, with notable sequential growth of $1,900,000, or 170%, from the first quarter of 2024. This growth was primarily driven by higher mobile equipment sales, a product mix not seen since 2022, with our mobile SteraMist equipment accounting for over 60% of our revenue in the second quarter of 2024.”
“We’re off to strong start in 2024. For the first time since the end of 2020,
our outlier year due to the COVID-19 pandemic, we surpassed $3 million in sales. In fact, to date, we have nearly matched the total number of
mobile equipment sales realized throughout the entire calendar year of 2023 and we remain diligent in our focus on executing our strategies to grow
revenues, reduce operating expenses, expand business development and deliver improved results and value for our shareholders,” Dr. Shane concluded.
Financial Results for the three months ended June 30, 2024, compared to June 30, 2023
|
• |
Total net revenue was $3,013,000 compared to $2,775,000.
|
|
• |
Gross margin was 61.5% compared to 61.3%.
|
|
• |
Operating profit was $122,000, compared to an operating loss of ($89,000).
|
|
• |
Net income was $30,000 or $0.00 per basic and diluted share, compared to a net loss ($89,000) or ($0.00) per basic and diluted share.
|
|
• |
Adjusted EBITDA was $343,000 compared to $2,000 in the same prior year period. A table reconciling EBITDA to the appropriate GAAP financial measure is
included with the Company’s financial information below
|
Financial Results for the six months ended June 30, 2024, compared to June 30, 2023
|
• |
Total net revenue was $4,127,000 compared to $4,357,000.
|
|
• |
Gross margin was 61.2% compared to 60.6%.
|
|
• |
Operating loss was ($1,105,000), compared to ($1,277,000).
|
|
• |
Net loss was ($1,280,000) or ($0.06) per basic and diluted share, compared to a net loss ($1,276,000) or ($0.06) per basic and diluted share.
|
|
• |
Adjusted EBITDA was ($806,000) compared to ($939,000) in the same prior year period. A table reconciling EBITDA to the appropriate GAAP financial
measure is included with Company’s financial information below
|
Balance sheet highlights as of June 30, 2024
|
• |
Cash and cash equivalents were approximately $709,000
|
|
• |
Working capital was $6.8 million.
|
|
• |
Shareholders’ equity was $7.3 million.
|
Recent Business Highlights:
|
• |
170% sequential quarterly revenue growth for the three months ended June 30, 2024, compared to the three months ended March 31, 2024
|
|
• |
With increased revenue and lower operating expenses, we reported a profit of approximately $30,000. This marks a significant milestone for the company
and a major improvement compared to both the first quarter of this year and the second quarter of 2023.
|
|
• |
Overall sales volume and sales order activity for the first and second quarters of 2024 amounted to $5,100,000 which consisted of approximately
$4,100,000 in recognized revenue and an approximate sales backlog of $1,000,000 at the end of the quarter.
|
|
• |
Second quarter BIT Solution sales increased by approximately 31% compared to the second quarter of 2023 and by 171% sequentially over the first quarter
of 2024.
|
|
• |
Our second quarter international revenue grew by 130%, driven by new customers in Canada, Mexico, the Philippines, and the United Arab Emirates,
compared to the same period in 2023.
|
|
• |
As of June 30, 2024, we have nearly matched the total number of mobile equipment sales achieved during the entire calendar year of 2023.
|
|
• |
During the second quarter, management implemented cost reduction initiatives that lowered our operating expenses by 3% compared to the same period last
year. Additionally, our operating expenses in the second quarter of 2024 decreased by 9% compared to the first quarter of 2024
|
|
• |
To expand our reach and increase our presence in the western United States via our iHP Service offerings, we have partnered with EMAQ. EMAQ has invested
over a million dollars in SteraMist iHP equipment and will serve as our partner to expand iHP services in this region.
|
|
• |
In Q2 2024, we received an order for our CES system from a global leader in advanced laboratory services. This customer added two more Environment
Systems to their existing set of two, along with a seven-applicator iHP Custom Engineered System (CES), which is scheduled for installation by the end of the year.
|
|
• |
We maintained an active focus on digital marketing initiatives and business development plans with existing customers. To optimize our budget, we reduced our
participation in tradeshows and redirected resources towards more effective lead generation strategies such as referrals and references.
|
|
• |
We are steadily increasing our presence in the food safety marketplace and are currently conducting numerous feasibility studies with both small and
large companies.
|
|
• |
On April 3, 2024, we announced the company has received the Gold Safety Award from Highwire. The award is presented to TOMI in recognition of the Company achieving a
score of between 85-94 on the Highwire Safety Assessment. Highwire’s Safety Assessment reviews a company’s historic and current safety performance. The program provides a thorough, objective, and consistent evaluation of company performance
so clients and contractors can identify, monitor, and mitigate risks more effectively. The results provide a strong indicator of how a contractor values safety and serve as a reliable predictor of future performance.
|
Conference Call Information
TOMI will hold a conference call to discuss second Quarter 2024 results at 4:30 p.m. ET today, August 1, 2024.
To participate in the call by phone, dial (888) 506-0062
approximately five minutes prior to the scheduled start time and request the "TOMI Environmental Solutions second quarter earnings call” or provide the participant access code: 474947. International callers please dial (973) 528-0011. 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/2262/50974 .
A replay of the teleconference will be available until Thursday, August 15, 2024, and may be accessed by dialing (877) 481-4010.
International callers may dial (919) 882-2331. Callers should use replay access code: 50974. 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,
our strategies to grow revenue and expand business development, financial performance and operating results for 2024; and our ability to generate lead and referral for sales. 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:
|
|
|
|
|
|
|
| |
June 30, 2024 (Unaudited)
|
|
|
December 31, 2023
|
|
|
Cash and Cash Equivalents
|
|
$
|
709,110
|
|
|
$
|
2,339,059
|
|
|
Accounts Receivable - net
|
|
|
3,663,862
|
|
|
|
2,429,929
|
|
|
Other Receivables
|
|
|
164,150
|
|
|
|
164,150
|
|
|
Inventories
|
|
|
4,281,614
|
|
|
|
4,627,103
|
|
|
Vendor Deposits
|
|
|
126,185
|
|
|
|
29,335
|
|
|
Prepaid Expenses
|
|
|
290,195
|
|
|
|
371,298
|
|
|
Total Current Assets
|
|
|
9,235,116
|
|
|
|
9,960,874
|
|
| |
|
|
|
|
|
|
|
|
|
Property and Equipment – net
|
|
|
983,601
|
|
|
|
1,048,642
|
|
| |
|
|
|
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
|
|
|
|
|
Intangible Assets – net
|
|
|
1,113,491
|
|
|
|
1,123,246
|
|
|
Operating Lease - Right of Use Asset
|
|
|
434,607
|
|
|
|
467,935
|
|
|
Long Term Accounts Receivable - net
|
|
|
206,240
|
|
|
|
206,240
|
|
|
Other Assets
|
|
|
638,392
|
|
|
|
550,677
|
|
|
Total Other Assets
|
|
|
2,392,730
|
|
|
|
2,348,098
|
|
|
Total Assets
|
|
$
|
12,611,447
|
|
|
$
|
13,357,614
|
|
| |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| |
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
$
|
1,714,489
|
|
|
$
|
1,267,029
|
|
|
Accrued Expenses and Other Current Liabilities
|
|
|
512,829
|
|
|
|
675,491
|
|
|
Deferred Revenue
|
|
|
57,192
|
|
|
|
-
|
|
|
Current Portion of Long-Term Operating Lease
|
|
|
122,259
|
|
|
|
115,658
|
|
|
Total Current Liabilities
|
|
|
2,406,769
|
|
|
|
2,058,178
|
|
| |
|
|
|
|
|
|
|
|
|
Long-Term Liabilities:
|
|
|
|
|
|
|
|
|
|
Long-Term Operating Lease, Net of Current Portion
|
|
|
579,715
|
|
|
|
642,527
|
|
|
Convertible Notes Payable, net of unamortized debt discount of $270,746 and $301,985 at June 30, 2024 and December 31, 2023, respectively
|
|
|
2,329,254
|
|
|
|
2,298,015
|
|
|
Total Long-Term Liabilities
|
|
|
2,908,969
|
|
|
|
2,940,542
|
|
|
Total Liabilities
|
|
|
5,315,738
|
|
|
|
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 June 30, 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 June 30, 2024 and December 31, 2023, respectively
|
|
|
-
|
|
|
|
-
|
|
|
Common stock; par value $0.01 per share, 250,000,000 shares authorized;
|
|
|
|
|
|
|
20,015,205 and 19,823,955 shares issued and outstanding
|
|
|
|
|
|
|
|
|
|
at June 30, 2024 and December 31, 2023, respectively
|
|
|
200,152
|
|
|
|
199,240
|
|
|
Additional Paid-In Capital
|
|
|
58,201,140
|
|
|
|
57,985,245
|
|
|
Accumulated Deficit
|
|
|
(51,106,221
|
)
|
|
|
(49,826,229
|
)
|
|
Total Shareholders’ Equity
|
|
|
7,295,709
|
|
|
|
8,358,894
|
|
|
Total Liabilities and Shareholders’ Equity
|
|
$
|
12,611,447
|
|
|
$
|
13,357,614
|
|
| |
|
TOMI ENVIRONMENTAL SOLUTIONS, INC.
|
|
| |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For The Three Months Ended
|
|
|
For The Six Months Ended
|
|
| |
|
June 30,
|
|
|
June 30,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales, net
|
|
$
|
3,013,392
|
|
|
$
|
2,774,699
|
|
|
$
|
4,127,479
|
|
|
$
|
4,356,871
|
|
|
Cost of Sales
|
|
|
1,158,876
|
|
|
|
1,074,420
|
|
|
|
1,602,295
|
|
|
|
1,715,355
|
|
|
Gross Profit
|
|
|
1,854,516
|
|
|
|
1,700,279
|
|
|
|
2,525,184
|
|
|
|
2,641,516
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Fees
|
|
|
84,327
|
|
|
|
111,660
|
|
|
|
282,326
|
|
|
|
248,845
|
|
|
Depreciation and Amortization
|
|
|
76,554
|
|
|
|
90,560
|
|
|
|
154,475
|
|
|
|
179,336
|
|
|
Selling Expenses
|
|
|
366,265
|
|
|
|
501,045
|
|
|
|
655,334
|
|
|
|
877,698
|
|
|
Research and Development
|
|
|
61,614
|
|
|
|
73,728
|
|
|
|
129,585
|
|
|
|
144,248
|
|
|
Consulting Fees
|
|
|
23,095
|
|
|
|
68,912
|
|
|
|
136,730
|
|
|
|
144,367
|
|
|
General and Administrative
|
|
|
1,120,849
|
|
|
|
943,314
|
|
|
|
2,271,398
|
|
|
|
2,324,108
|
|
|
Total Operating Expenses
|
|
|
1,732,704
|
|
|
|
1,789,219
|
|
|
|
3,629,848
|
|
|
|
3,918,602
|
|
|
Income (loss) from Operations
|
|
|
121,812
|
|
|
|
(88,940
|
)
|
|
|
(1,104,664
|
)
|
|
|
(1,277,086
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
1,845
|
|
|
|
349
|
|
|
|
11,751
|
|
|
|
1,008
|
|
|
Interest Expense
|
|
|
(93,459
|
)
|
|
|
-
|
|
|
|
(187,079
|
)
|
|
|
-
|
|
|
Total Other Income (Expense)
|
|
|
(91,614
|
)
|
|
|
349
|
|
|
|
(175,328
|
)
|
|
|
1,008
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
30,198
|
|
|
|
(88,591
|
)
|
|
|
(1,279,992
|
)
|
|
|
(1,276,078
|
)
|
|
Provision for Income Taxes (Note 16)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net Income (loss)
|
|
$
|
30,198
|
|
|
$
|
(88,591
|
)
|
|
$
|
(1,279,992
|
)
|
|
$
|
(1,276,078
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) Per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
|
$
|
(0.00
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.06
|
)
|
|
Diluted
|
|
$
|
0.00
|
|
|
$
|
(0.00
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.06
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted Average Common Shares Outstanding
|
|
|
19,985,205
|
|
|
|
19,823,955
|
|
|
|
19,946,164
|
|
|
|
19,815,336
|
|
|
Diluted Weighted Average Common Shares Outstanding
|
|
|
22,133,562
|
|
|
|
19,823,955
|
|
|
|
19,946,164
|
|
|
|
19,815,336
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For The Three Months Ended
|
|
|
For The Six Months Ended
|
|
| |
|
June 30,
|
|
|
June 30,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
| |
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Net income (loss)
|
|
$
|
30,198
|
|
|
$
|
(88,591
|
)
|
|
$
|
(1,279,992
|
)
|
|
$
|
(1,276,078
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization
|
|
|
76,554
|
|
|
|
90,560
|
|
|
|
154,475
|
|
|
|
179,336
|
|
|
Interest Expense
|
|
|
93,459
|
|
|
|
-
|
|
|
|
187,079
|
|
|
|
-
|
|
|
Interest Income
|
|
|
(1,845
|
)
|
|
|
(349
|
)
|
|
|
(11,751
|
)
|
|
|
(1,008
|
)
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
EBITDA Profit/(Loss)
|
|
$
|
198,366
|
|
|
$
|
1,620
|
|
|
$
|
(950,189
|
)
|
|
$
|
(1,097,750
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Compensation Expense
|
|
|
144,308
|
|
|
|
-
|
|
|
|
144,307
|
|
|
|
158,833
|
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted EBITDA Profit/ (Loss)
|
|
$
|
342,674
|
|
|
$
|
1,620
|
|
|
$
|
(805,882
|
)
|
|
$
|
(938,917
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
3,013,392
|
|
|
$
|
2,774,699
|
|
|
$
|
4,127,479
|
|
|
$
|
4,356,871
|
|
|
Adjusted EBITDA Margin
|
|
|
11
|
%
|
|
|
0
|
%
|
|
|
-20
|
%
|
|
|
-22
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTOR RELATIONS CONTACT:
John Nesbett/Roz Christian
IMS Investor Relations
tomi@imsinvestorrelations.com