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 fourth
quarter and year end 2023 results.
TOMI Chief Executive Officer, Dr. Halden Shane, stated, “During
2023 we continued to expand our sales infrastructure through the
broadening of our distribution network, diversify our product line
to support our growing customer base and the related utilization of
our SteraMist technology and deliver multiple custom engineered
systems to key customers.
“We remain focused on expanding our internal and external sales
infrastructure and business development initiatives. Last year we
onboarded 9 distributors and 11 sales representatives, which
expanded our presence both domestically and internationally. We
anticipate the increased bandwidth of our internal and external
sales channels will have a positive impact on our revenue in 2024
and beyond.
“In 2023 we made significant progress developing, manufacturing
and validating new products for our elite customers. These new
products will be the primary driver of growth in the years to come.
We are reciving multiple orders from the Pharmaceutical, Vivarium,
Food Industry and United States Homeland Security sectors. While
our list of premium clients continued to expand, we diversified our
product mix with the SteraMist Hybrid, Transport and Select Plus
units, positioning us to achieve improved financial results moving
forward. Our products and related customer projects
have long sale cycles, but as the number of engagements is growing,
we expect to drive revenue growth over the next 18 months.
“We are off to a good start in 2024 as we landed a new SteraMist
iHP Custom Engineered System (CES) installation with a
California-based life sciences company and have seen further growth
in our iHP service revenue. We 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 year ended December 31, 2023,
compared to December 31, 2022
- Total net revenue was $7,355,000 compared to $8,338,000. The
timing of orders including the holidays and lengthy customer
approval process affected our revenue.
- Gross margin was 58.3% compared to 60.6%. The decrease in gross
profit was attributable to product mix.
- Operating loss was ($3,349,000) compared to
($2,882,000).
- Net loss was ($3,403,000) or ($0.17) per basic and diluted
share, compared to ($2,880,000) or ($0.15) per basic and diluted
share.
Financial Results for the three months ended December
31, 2023, compared to December 31, 2022
- Total net revenue was $1,528,000 compared to $2,812,000.
- Gross margin was 54.9% compared to 58.6%. The decrease in gross
profit was attributable to product mix.
- Operating loss was ($1,171,000) compared to ($706,000).
- Net loss was ($1,226,000) or ($0.06) per basic and diluted
share, compared to ($705,000) or ($0.04) per basic and diluted
share.
Balance sheet highlights as of December 31,
2023
- Cash and cash equivalents were approximately $2.3 million.
- Working capital was $7.9 million.
- Shareholders’ equity was $8.4 million.
Recent Business Highlights:
- Expanded sales infrastructure with the addition of 9
distributors and 11 sales representatives in 2023 which has
expanded our presence domestically and on an international
basis.
- Entered into a contract with Vizient, Inc. increasing our
presence in the U.S. healthcare system. Vizient is the largest
group purchasing organization (GPO) in the healthcare industry
supplying around $100 billion in annual member purchasing volume.
Vizient serves approximately 97% of the nation’s Academic Medical
Centers, more than 50% of the nation’s acute care health system,
and serves more than 20% of the nation’s ambulatory market.
- Added Sterile Grow, a United States based distributor and
consultation company in the food and cannabis market.
- Entered into an agreement with Patty Olinger, the Founder of
BEAMS, LLC who specializes in Public Health Preparedness. Ms
Olinger is also a Director of Frontline Foundation dedicated to
protecting American citizens from bioterror threats. In the past
she was Assistant Vice President of the Office of Research
Administration, and Executive Director of Environmental Health and
Safety Office of Emory University Hospital System and most recently
the Executive Director of Global Biorisk Advisory Council, a
division of ISSA. She will assist in strengthening and expanding
the TOMI SteraMist Network and increasing business development in
the commercial market. She brings over 20 years of experience
establishing executive strategic vision and direction of large
institutions and companies spanning multiple industries, including
higher education, not-for-profit, healthcare, consultancy,
hospitality, and pharmaceutical sectors.
- Completion and delivery four CES systems, as follows:
- During the first quarter, we delivered a CES system to Orna
Therapeutics, a leading biotechnology company located in
Massachusetts
- During the second quarter, we delivered an eleven applicator
CES system to Avid Bioservices, Inc. (“Avid”) for implementation in
Avid’s new purpose-built viral vector development and manufacturing
facility in Costa Mesa, California.
- During the third quarter of 2023, we delivered a three
applicator CES system to Ragon Institute of MGH, MIT and Harvard
for implementation in their research and clinical lab located in
Cambridge, MA.
- During the third quarter of 2023, we delivered to a one
applicator system Indigo Pharmaceutical, Inc. in Las Vegas,
Nevada.
- SteraMist iHP Service revenue grew 13% for the year ended
December 31, 2023, compared to the same prior year period.
- Completed a convertible note financing in an aggregate
principal amount of $2,600,000,which will be used for working
capital and other general corporate purposes.
- Pfizer Rocky Mount engaged TOMI’s iHP service team to conduct
emergency decontamination within their facility, which suffered
substantial damage due to a tornado. TOMI continues to perform
decontamination service twice a year at the Pfizer Rocky Mount
facility.
- Introduced three new products, the SteraMist Hybrid, SteraMist
Transport and Select Plus, to support superior disinfection
decontamination solutions for our growing customer base.
- Attended and presented our SteraMist brand of products at
various tradeshows, most notable were Interphex, Food Safety
Summit, AALAS, ISSA North America, and MJBiz Conference. In the
fourth quarter of 2023, we attended and presented at the following
shows: Pharma Ed Aseptic, ISPE National, AALAS National Conference,
NFMT Remix Conference, Bio Innovation, ISSA North America, and
MJBiz Conference.
- Launched our updated website, now accessible through our new
domain name steramist.com. The refreshed website offers a modern,
user-friendly design and streamlined navigation, providing visitors
with easy access to essential information about SteraMist products
and services.
Conference Call Information
TOMI will hold a conference call to discuss Fourth Quarter and
year end 2023 results at 4:30 p.m. ET today, April 1, 2024.
To participate in the call by phone, dial (888) 506-0062
approximately five minutes prior to the scheduled start time and
reference the participant access code 530125 or request the "TOMI
Environmental Solutions fourth 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/2262/50244.
A replay of the teleconference will be available until Monday,
April 15, 2024, and may be accessed by dialing (877) 481-4010.
International callers may dial (919) 882-2331. Callers should use
replay access code: 50244. 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 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. |
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
ASSETS |
|
|
|
Current Assets: |
December 31, 2023 |
|
December 31, 2022 |
Cash and Cash Equivalents |
$ |
2,339,059 |
|
|
$ |
3,866,733 |
|
Accounts Receivable – net |
|
2,429,929 |
|
|
|
2,772,340 |
|
Other Receivables |
|
164,150 |
|
|
|
164,150 |
|
Inventories |
|
4,627,103 |
|
|
|
4,495,999 |
|
Vendor Deposits |
|
29,335 |
|
|
|
447,052 |
|
Prepaid Expenses |
|
371,298 |
|
|
|
388,359 |
|
Total Current Assets |
|
9,960,874 |
|
|
|
12,134,633 |
|
|
|
|
|
Property and Equipment –
net |
|
1,048,642 |
|
|
|
1,335,331 |
|
|
|
|
|
Other Assets: |
|
|
|
Intangible Assets – net |
|
1,123,246 |
|
|
|
1,025,736 |
|
Operating Lease - Right of Use
Asset |
|
467,935 |
|
|
|
528,996 |
|
Long Term Accounts Receivable
– net |
|
206,240 |
|
|
|
- |
|
Other Assets |
|
550,677 |
|
|
|
475,103 |
|
Total Other Assets |
|
2,348,098 |
|
|
|
2,029,835 |
|
Total Assets |
$ |
13,357,614 |
|
|
$ |
15,499,799 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
Accounts Payable |
$ |
1,267,029 |
|
|
$ |
1,761,750 |
|
Accrued Expenses and Other Current Liabilities |
|
675,491 |
|
|
|
728,703 |
|
Deferred Revenue |
|
- |
|
|
|
699,732 |
|
Current Portion of Long-Term Operating Lease |
|
115,658 |
|
|
|
100,282 |
|
Total Current Liabilities |
|
2,058,178 |
|
|
|
3,290,467 |
|
|
|
|
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
Long-Term Operating Lease, Net of Current Portion |
|
642,527 |
|
|
|
761,132 |
|
Convertible Notes Payable, net of discount of $301,985 and $0 at
December 31, 2023 and 2022, respectively (Note 10) |
|
2,298,015 |
|
|
|
- |
|
Total Long-Term Liabilities |
|
2,940,542 |
|
|
|
761,132 |
|
Total Liabilities |
|
4,998,720 |
|
|
|
4,051,599 |
|
|
|
|
|
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 December 31, 2023 and 2022, 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 December 31, 2023 and 2022, respectively |
|
- |
|
|
|
- |
|
Common stock; par value $0.01 per share, 250,000,000 shares
authorized; |
|
|
|
|
|
19,923,955 and 19,763,955 shares issued and outstanding |
|
|
|
|
|
at December 31, 2023 and 2022, respectively |
|
199,240 |
|
|
|
197,640 |
|
Additional Paid-In Capital |
|
57,985,245 |
|
|
|
57,673,559 |
|
Accumulated Deficit |
|
(49,826,229 |
) |
|
|
(46,423,637 |
) |
Total Shareholders’ Equity |
|
8,358,894 |
|
|
|
11,448,200 |
|
Total Liabilities and
Shareholders’ Equity |
$ |
13,357,614 |
|
|
$ |
15,499,799 |
|
|
|
|
|
TOMI ENVIRONMENTAL SOLUTIONS, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
For The Three Months Ended |
|
For The Years Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Sales, net |
|
$ |
1,527,674 |
|
|
$ |
2,811,501 |
|
|
$ |
7,354,564 |
|
|
$ |
8,338,099 |
|
Cost of Sales |
|
|
688,586 |
|
|
|
1,164,020 |
|
|
|
3,065,028 |
|
|
|
3,277,644 |
|
Gross Profit |
|
|
839,087 |
|
|
|
1,647,480 |
|
|
|
4,289,536 |
|
|
|
5,060,455 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Professional Fees |
|
|
119,210 |
|
|
|
144,574 |
|
|
|
575,728 |
|
|
|
536,311 |
|
Depreciation and Amortization |
|
|
93,412 |
|
|
|
81,502 |
|
|
|
366,677 |
|
|
|
329,164 |
|
Selling Expenses |
|
|
190,713 |
|
|
|
595,225 |
|
|
|
1,351,465 |
|
|
|
1,867,013 |
|
Research and Development |
|
|
271,211 |
|
|
|
97,630 |
|
|
|
491,798 |
|
|
|
352,238 |
|
Consulting Fees |
|
|
93,826 |
|
|
|
69,423 |
|
|
|
282,548 |
|
|
|
215,180 |
|
General and Administrative |
|
|
1,241,871 |
|
|
|
1,365,063 |
|
|
|
4,570,597 |
|
|
|
4,642,548 |
|
Total Operating Expenses |
|
|
2,010,243 |
|
|
|
2,353,417 |
|
|
|
7,638,813 |
|
|
|
7,942,454 |
|
Income (loss) from
Operations |
|
|
(1,171,155 |
) |
|
|
(705,937 |
) |
|
|
(3,349,276 |
) |
|
|
(2,881,999 |
) |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
Interest Income |
|
|
10,726 |
|
|
|
891 |
|
|
|
11,990 |
|
|
|
1,939 |
|
Interest Expense |
|
|
(65,305 |
) |
|
|
- |
|
|
|
(65,305 |
) |
|
|
- |
|
Total Other Income
(Expense) |
|
|
(54,579 |
) |
|
|
891 |
|
|
|
(53,315 |
) |
|
|
1,939 |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
|
|
(1,225,735 |
) |
|
|
(705,046 |
) |
|
|
(3,402,592 |
) |
|
|
(2,880,060 |
) |
Provision for Income Taxes
(Note 16) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net Income (loss) |
|
$ |
(1,225,735 |
) |
|
$ |
(705,046 |
) |
|
$ |
(3,402,592 |
) |
|
$ |
(2,880,060 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) Per Common
Share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.15 |
) |
Diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
|
Basic Weighted Average Common
Shares Outstanding |
|
|
19,883,955 |
|
|
|
19,763,955 |
|
|
|
19,834,476 |
|
|
|
19,743,544 |
|
Diluted Weighted Average
Common Shares Outstanding |
|
|
19,883,955 |
|
|
|
19,763,955 |
|
|
|
19,834,476 |
|
|
|
19,743,544 |
|
INVESTOR RELATIONS CONTACT:John Nesbett/Roz ChristianIMS
Investor Relationstomi@imsinvestorrelations.com
Grafico Azioni TOMI Environmental Solut... (NASDAQ:TOMZ)
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