Hydrogen Peroxide

- Company Reports Operating Income of $149,000 and Positive Net Income - Performance Driven by Growth in International, Mobile Equipment, and iHP Corporate Service Sales FREDERICK, Md., Oct. 30, 2024 (GLOBE NEWSWIRE) -- 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 third quarter 2024 results. TOMI Chief Executive Officer, Dr. Halden Shane, stated, “Our positive momentum continued into the third quarter, marking our second consecutive profitable quarter in 2024. This achievement was driven by increased revenue, improved margins, and strategic cost reductions. We also generated positive cash flow, benefiting from improved receivables and reduced operating expenses.” “These efforts contributed to a quarterly net income of $59,000. Our revenue for the third quarter increased by 73% year-over-year to $2.5 million, and year-to-date revenue reached $6.7 million, representing a 14.5% increase over the same period in 2023. Additionally, we continue to see traction with our razor/razor blade model as our BIT Solution sales have increased by 13% year to date. We remain steadfast in our commitment to executing our strategic initiatives to drive revenue growth in current and new markets, reduce operating expenses, and continue to deliver increased results and shareholder value,” Dr. Shane concluded. Financial Results for the three months ended September 30, 2024, compared to September 30, 2023 Total net revenue was $2,542,000 compared to $1,470,000.Gross margin was 61.4% compared to 55.0%.Operating income was $149,000, compared to an operating loss of ($901,000).Net income was $59,000 or $0.00 per basic and diluted share, compared to a net loss ($901,000) or ($0.05) per basic and diluted share.Adjusted EBITDA was $219,000 compared to $(807,000) 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 nine months ended September 30, 2024, compared to September 30, 2023 Total net revenue was $6,670,000 compared to $5,827,000.Gross margin was 61.3% compared to 59.2%.Operating loss was ($956,000), compared to ($2,178,000).Net loss was ($1,221,000) or ($0.06) per basic and diluted share, compared to a net loss ($2,177,000) or ($0.11) per basic and diluted share.Adjusted EBITDA was ($587,000) compared to ($1,746,000) 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 September 30, 2024 Cash and cash equivalents were approximately $809,000Working capital was $6.9 million.Shareholders’ equity was $7.4 million. Recent Business Highlights: We continue to see improved financial results as the third quarter marks our second consecutive profitable quarter in our 2024 calendar year. The improved financial results are largely due to higher revenue, improved gross profit margins, and strategic reductions in operating expenses. We also were cash flow positive in the third quarter due to the improved turnover in our accounts receivable and lower monthly outgoing cash expenditures with management’s spending cuts. We continue to expand our customer base and secured significant agreements and new partnerships.Revenue for the third quarter 2024 was $2,542,000 which represents $1,072,000 or 73% growth compared to the third quarter of the prior year. The higher revenue was attributable to increased demand for our SteraMist iHP mobile units and higher iHP Corporate Service revenue.Overall sales volume and sales order activity for the nine months ended September 2024 amounted to $7,200,000 which consisted of approximately $6,700,000 in recognized revenue and an approximate sales backlog of $500,000 at the end of the quarter.Our third quarter international revenue grew by 82%, driven by new customers in Canada, South Africa, and India, compared to the same period in 2023.Management's strategic cost reduction initiatives, implemented in the second quarter, were fully realized in the third quarter, resulting in a 10% decrease in operating expenses compared to the same period last year.We are expanding our market presence in the food safety sector, with a 208% increase in end users since 2020 and are currently engaged in numerous feasibility studies with both small and large enterprises.We also want to highlight our awareness of the various challenges currently affecting the food market, ensuring we meet their evolving needs during critical times and to prevent contamination to the world’s food supply. Conference Call InformationTOMI will hold a conference call to discuss Third Quarter 2024 results at 4:30 p.m. ET today, October 30, 2024. To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time and provide participant access code 617413, or request the "TOMI Environmental Solutions third quarter earnings call." 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/2262/51494. A replay of the teleconference will be available until Wednesday, November 6, 2024, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code: 51494. 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 contains 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 SHEETSASSETSCurrent Assets: September 30, 2024 (Unaudited)December 31, 2023Cash and Cash Equivalents$809,037 $2,339,059 Accounts Receivable - net 3,146,390 2,429,929 Other Receivables 164,150 164,150 Inventories 4,580,115 4,627,103 Vendor Deposits 97,488 29,335 Prepaid Expenses 345,842 371,298 Total Current Assets 9,143,022 9,960,874 Property and Equipment – net 914,156 1,048,642 Other Assets: Intangible Assets – net 1,108,614 1,123,246 Operating Lease - Right of Use Asset 417,190 467,935 Long Term Accounts Receivable - net 206,240 206,240 Other Assets 672,565 550,677 Total Other Assets 2,404,609 2,348,098 Total Assets$12,461,787 $13,357,614 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts Payable$1,552,223 $1,267,029 Accrued Expenses and Other Current Liabilities 537,509 675,491 Current Portion of Long-Term Operating Lease 125,666 115,658 Total Current Liabilities 2,215,398 2,058,178 Long-Term Liabilities: Long-Term Operating Lease, Net of Current Portion 546,844 642,527 Convertible Notes Payable, net of unamortized debt discount of $255,126 and $301,985 at September 30, 2024 and December 31, 2023, respectively 2,344,874 2,298,015 Total Long-Term Liabilities 2,891,718 2,940,542 Total Liabilities 5,107,116 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 September 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 19,923,955 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 200,152 199,240 Additional Paid-In Capital 58,201,140 57,985,245 Accumulated Deficit (51,047,259) (49,826,229)Total Shareholders’ Equity 7,354,671 8,358,894 Total Liabilities and Shareholders’ Equity$12,461,787 $13,357,614 TOMI ENVIRONMENTAL SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For The Three Months Ended For The Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Sales, net $2,542,251 $1,470,019 $6,669,730 $5,826,890 Cost of Sales 981,124 661,087 2,583,419 2,376,442 Gross Profit 1,561,127 808,932 4,086,311 3,450,448 Operating Expenses: Professional Fees 104,941 207,673 387,267 456,518 Depreciation and Amortization 69,909 93,929 224,384 273,265 Selling Expenses 226,593 283,054 881,927 1,160,752 Research and Development 56,338 76,339 185,923 220,587 Consulting Fees 44,338 44,355 181,068 188,722 General and Administrative 909,906 1,004,618 3,181,304 3,328,726 Total Operating Expenses 1,412,025 1,709,968 5,041,873 5,628,570 Income (loss) from Operations 149,102 (901,036) (955,562) (2,178,122) Other Income (Expense): Interest Income 3,480 256 15,231 1,264 Interest Expense (93,620) - (280,699) - Total Other Income (Expense) (90,140) 256 (265,468) 1,264 Income (loss) before income taxes 58,962 (900,780) (1,221,030) (2,176,858)Provision for Income Taxes - - - - Net Income (loss) $58,962 $(900,780) $(1,221,030) $(2,176,858) Net income (loss) Per Common Share Basic $0.00 $(0.05) $(0.06) $(0.11)Diluted $0.00 $(0.05) $(0.06) $(0.11) Basic Weighted Average Common Shares Outstanding 20,015,205 19,823,955 19,984,179 19,818,241 Diluted Weighted Average Common Shares Outstanding 20,096,751 19,823,955 19,984,179 19,818,241 For The Three Months Ended For The Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Net income (loss) $58,962 $(900,780) $(1,221,030) $(2,176,858) Depreciation and Amortization 69,909 93,929 224,384 273,265 Interest Expense 93,620 - 280,699 - Interest Income (3,480) (256) (15,231) (1,264)Other - - - - EBITDA Profit/(Loss) $219,011 $(807,107) $(731,178) $(1,904,857) Equity Compensation Expense - - 144,307 158,833 Other - - - - Adjusted EBITDA Profit/ (Loss) $219,011 $(807,107) $(586,871) $(1,746,024) Net revenue $2,542,251 $1,470,019 $6,669,730 $5,826,890 Adjusted EBITDA Margin 9% -55% -9% -30% INVESTOR RELATIONS CONTACT:John Nesbett/Rosalyn ChristianIMS Investor Relationstomi@imsinvestorrelations.com