TOMI Environmental Solutions, Inc. Announces Cost Reduction Efforts to Sustain Long Term Growth and Achieve Profitability
06 Giugno 2024 - 6:45PM
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
comprehensive cost reduction initiatives to align the Company’s
cost structure with targeted profitability objectives.
The Company’s operational cash savings initiatives include:
- Executive Compensation Modifications: Executives will reduce
their compensation by 30% of their current cash compensation for
the remainder of 2024, thereby reducing the Company’s cash
requirements for salaries and ensuring alignment of interests with
shareholders.
- Optimization of Consultant Arrangement: Termination of select
external consulting agreements, with remaining consultants agreeing
to reduce their consultant fees. This initiative, along with
reductions in other costs, fosters a leaner and more efficient
operational model.
These cost-reduction measures underscore TOMI's commitment to
enhancing financial performance while maintaining investments in
critical areas such as product development and sales team
expansion. The Company anticipates that these initiatives will
result in a 30% or approximately $500,000 reduction in cash used in
operations by the end of 2024.
This proactive action reinforces TOMI's dedication to delivering
long-term value to shareholders and achieving profitability, while
sustaining innovation and growth momentum in its core business
segments.
Below is an update on some current business developments:
TOMI is making significant progress expanding the installation
of Custom Engineered Systems (CES) worldwide. The Company has
successfully installed double digit CES systems, with expectations
for these installs to generate approximately $600,000 from BIT
Solution starting in 2025.
The Company believes it is nearing the close of another CES
contract with a prominent cell and gene therapy facility in the
United States. The customer is a current user of TOMI mobile
equipment, and is currently in phase two of a bid scheduled for a
next month close. This contract includes a SteraMist CES, which has
already been allocated in the budget for approximately $450,000.
The project is currently scheduled for completion by the end of
2024.
TOMI is making substantial progress in the rapidly evolving
decontamination service industry and anticipates an increase in iHP
Corporate Services revenue. Recent shifts in the competitive
landscape have resulted in an increase in quotations and
opportunities. This summer, the Company anticipates securing a
significant contract, complementing TOMI’s approximately $1 million
per annum in repeatable revenue from this sector.
Additionally, the Company has signed and onboarded STS
Technocrat, a distributor based in India with 35 years of
collective experience in technical consumable sales. Their
clientele includes notable names within TOMI’s targeted
industries. In May, TOMI made its first sale under its Vizient
contract to a university for an Environment System and the Company
is in discussions with four key enclosure decontamination
manufacturers to promote the use of iHP and the SteraMist
Integrated System (SIS) product lines, replacing the inferior VHP
technologies on the market.
TOMI is executing against its strategy of enhancing its product
line, including a fully automated decontamination solution
targeting the broader Life Sciences market, and expanding its base
of distributors and partners to efficiently promote its technology
and deliver new opportunities across all markets.
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, statements
relating to cost reduction measures and compensation changes;
anticipated 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.
INVESTOR RELATIONS CONTACT:John Nesbett/Roz ChristianIMS
Investor Relationstomi@imsinvestorrelations.com
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