Core Viewpoint - TOMI Environmental Solutions, Inc. has filed a $50 million universal shelf registration statement with the SEC to enhance its financial flexibility for operational growth and strategic initiatives [1][2]. Financial Strategy - The registration statement will allow TOMI to offer and sell securities as needed, providing the company with the ability to efficiently access capital [2]. - TOMI has entered into a strategic advisory and placement arrangement with Bancroft Capital and established an equity line of credit (ELOC) facility with Hudson Global Ventures, allowing the sale of up to $20 million of common stock over a 24-month period [3]. Operational Performance - The CEO of TOMI highlighted strong sequential revenue growth and improved gross margins in Q3, indicating expanding customer adoption of the SteraMist® technology [4]. - The financing from the ELOC is intended to accelerate investments in innovation, manufacturing efficiency, and global distribution [4]. Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination through its Binary Ionization Technology® (BIT™) platform, which utilizes a low percentage of Hydrogen Peroxide to create a germ-killing aerosol [5]. - The company's products are designed for a wide range of commercial structures, including hospitals, cruise ships, schools, and military facilities [6].

Core Insights - TOMI Environmental Solutions, Inc. reported a quarterly loss of $0.02 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, marking a 100% earnings surprise [1] - The company generated revenues of $2.12 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 22.77% and down from $2.54 million year-over-year [2] - The stock has underperformed, losing approximately 22.9% since the beginning of the year, while the S&P 500 has gained 14.6% [3] Financial Performance - Over the last four quarters, TOMI Environmental Solutions has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $3.63 million, and for the current fiscal year, it is -$0.10 on revenues of $8.98 million [7] Industry Outlook - The Waste Removal Services industry, to which TOMI belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TOMI's stock performance [5] Future Expectations - The company's earnings outlook will be crucial for assessing future stock performance, particularly in light of management's commentary during the earnings call [4] - The estimate revisions trend for TOMI was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue was $2 million, a 24% decrease from $2.5 million in Q3 2024, primarily due to a timing reduction in iHP services sales from a key customer [9][10] - Year-to-date service demand remains robust, with quote activity and pipeline volume up approximately 35% year-over-year in life sciences and food safety [10] - Gross profit margins remained strong at 61% for Q3 2025, consistent with the same period last year [10] Business Line Data and Key Metrics Changes - Recurring BIT solution sales increased by 21% year-to-date, contributing to the overall revenue growth [5][10] - The sales order backlog was $0.9 million at the quarter end and grew to $1.3 million by October 31, with approximately $3 million in pending SteraMist integration contracts expected to close before year-end [6][10] Market Data and Key Metrics Changes - The FDA's broadened approval of hydrogen peroxide positions the company to serve not only life sciences and healthcare but also agriculture, food processing, and environmental biosafety [7][23] - The active pipeline surpassed $15 million, encompassing both domestic and international customers across various industries [6] Company Strategy and Development Direction - The company aims to enhance customer engagement and expand its recurring revenue streams through personalized outreach and targeted marketing campaigns [8] - Focus on biosecurity advancements and scaling automation integrations for high-efficacy environments is prioritized for 2026 [8][9] - The company is investing in innovation and customer success to capture opportunities in clean tech and biosecurity [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's recovery and reaffirmed the soundness of its strategy, with steady improvement expected financially, operationally, and strategically [25][26] - The company is well-positioned for a successful fourth quarter with momentum carrying into 2026, supported by a recent equity purchase agreement to access capital [26][27] Other Important Information - The company celebrated a significant addition to its customer roster with Bausch + Lomb, which adopted mobile handheld surface units and committed to BIT Solution orders for 2026 [19][20] - The company is actively pursuing the cannabis market and has opened doors to promising new partnership discussions [22] Q&A Session Summary Question: What are your sales and marketing efforts towards the FDA approval for hydrogen peroxide usage? - Management indicated that the food industry could be a key marketing vertical, and they are excited about the approval as it positions their technology favorably [29] Question: Should we expect operating expenses and gross margins to continue improving? - Management expects operating expenses to increase but remain positive in relation to revenue, with gross margins expected to hold steady [30][31] Question: What kind of sales effort is in place for international markets like Morocco? - The company has distributors in various countries and is working with global partners to increase demand for SteraMist [34] Question: Do you have visibility on solution sales in the coming quarters? - Management noted that while there was a decrease in solution sales growth in Q3, they expect a rebound by the end of the fourth quarter [35] Question: Any updates on servicing military and defense markets? - Management mentioned ongoing studies with a key site looking to replace formaldehyde, with expectations for significant developments in 2026 [42] Question: Any progress in the use of SteraMist for replacing ethylene oxide in medical sterilization? - Management confirmed ongoing discussions and prioritization of partnerships in device manufacturing for this purpose [51]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue was $2 million, a 24% decrease from $2.5 million in Q3 2024, primarily due to a timing reduction in IHP services sales from a key customer [9][10] - Year-to-date service demand remains robust, with quote activity and pipeline volume up approximately 35% year over year in the life sciences and food safety areas [10] - Gross profit margins remained strong at 61% for Q3 2025, consistent with the same period last year [10] Business Line Data and Key Metrics Changes - Recurring BIP solution sales increased by 21% year to date, contributing to the overall revenue growth [5][10] - The sales order backlog was $0.9 million at the quarter end and grew to $1.3 million by October 31, with approximately $3 million in pending SteraMist integration contracts expected to close before year-end [6][10] Market Data and Key Metrics Changes - The FDA's broadened approval of hydrogen peroxide as a safe disinfectant opens new markets, particularly in food processing and agriculture [7][23] - The company is seeing strong interest from emerging sectors, with an active pipeline surpassing $15 million [6][7] Company Strategy and Development Direction - The company aims to grow sales of mobile capital equipment, IHP corporate service, and custom integration platforms alongside its core BIP solution business model [5][8] - There is a focus on biosecurity advancements and scaling automation integrations for high-efficacy environments, addressing global challenges [8][9] Management's Comments on Operating Environment and Future Outlook - Management believes the third quarter marked a decisive turning point, with a 95% sequential revenue increase driven by expanding recurring revenue streams [4][5] - The company is optimistic about the future, with a strong sales backlog and a sales strategy beginning to deliver promising results [25][26] Other Important Information - The company entered into an equity purchase agreement with Hudson Global Ventures, allowing it to sell up to $20 million in common stock over a 24-month period [26] - The SteraMist IHP technology was named the Disinfection and Decontamination Products Company of the Year 2025 [7] Q&A Session Summary Question: What are the sales and marketing efforts towards the FDA approval for hydrogen peroxide usage? - Management sees the food industry as a key marketing vertical and is excited about the approval, which is expected to be a game changer [29] Question: Should operating expenses and gross margins continue to improve? - Management expects operating expenses to increase but believes they will be positive in relation to revenue, with gross margins remaining stable [30][31] Question: What kind of sales effort is in place for international markets like Morocco? - The company has different distributors in various countries and is working with global partners to increase demand for SteraMist [34] Question: What visibility is there on solution sales in the coming quarters? - Management anticipates that solution sales will increase as more technology is deployed, with a key focus on driving growth in BIP solution sales [35] Question: Any updates on servicing military and defense markets? - The company is working with a key site looking to replace formaldehyde and expects significant developments in 2026 [42] Question: Any progress in the use of SteraMist for replacing ethylene oxide in medical instrument sterilization? - The company is prioritizing partnerships in device manufacturing to streamline IHP into decontamination processes [51]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue was $2 million, a 24% decrease from $2.5 million in Q3 2024, primarily due to a timing reduction in IHP services sales from a key customer [9][10] - Year-to-date service demand remains robust, with quote activity and pipeline volume up approximately 35% year over year in the life sciences and food safety areas [10] - Gross profit margins remained strong at 61% for Q3 2025, consistent with the same period last year [10] Business Line Data and Key Metrics Changes - Recurring BIP solution sales increased by 21% year to date, indicating a positive trend in this segment [5][10] - The sales order backlog was $0.9 million at the quarter end and grew to $1.3 million by October 31, with approximately $3 million in pending SteraMist integration contracts expected to close before year-end [6][10] Market Data and Key Metrics Changes - The FDA's broadened approval of hydrogen peroxide as a safe disinfectant opens new markets, particularly in food safety, agriculture, and environmental biosafety [7][23] - The company is seeing strong interest from emerging sectors, with an active pipeline surpassing $15 million [6] Company Strategy and Development Direction - The company aims to grow sales of mobile capital equipment, IHP corporate service, and custom integration platforms alongside its core BIP solution business model [5] - There is a focus on biosecurity advancements and scaling automation integrations for high-efficacy environments, addressing global challenges [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's recovery and strategic execution, highlighting steady improvement financially, operationally, and strategically [25] - The company is well-positioned for a successful fourth quarter with momentum carrying into 2026, supported by a recent equity purchase agreement to access capital [26] Other Important Information - The company has been recognized as the Disinfection and Decontamination Products Company of the Year 2025, validating its solutions and positioning [7] - The company is expanding its training programs and customer engagement strategies to enhance market penetration [8] Q&A Session Summary Question: What are the sales and marketing efforts towards the FDA approval for hydrogen peroxide? - Management indicated that the food industry could be a key marketing vertical, and they are excited about the approval as it positions their technology favorably [30] Question: Should we expect operating expenses and gross margins to continue improving? - Management expects operating expenses to increase but remain positive in relation to revenue, with gross margins holding steady [31][32] Question: What kind of sales effort is in place for international markets like Morocco? - The company has distributors in various countries focused on increasing demand for SteraMist [36] Question: Do you have visibility on solution sales in the coming quarters? - Management noted that while they had a 40% increase in solution sales earlier in the year, they expect recurring sales to rise again by the end of Q4 [37] Question: Any updates on servicing military and defense markets? - Management mentioned ongoing studies with a key site looking to replace formaldehyde, expecting significant developments in 2026 [43] Question: Progress on CAR T-cell disinfection business? - No updates were provided on this front [45] Question: Expectations on the rollout by major service provider companies in healthcare mold remediation? - Management expressed optimism about rapid rollouts due to strong initial assessments and training support [46] Question: Plans to penetrate the disinfection market for data centers? - Management acknowledged the interest in data centers and the need for disinfection, indicating plans to expand the sales team for this vertical [49] Question: How is the company increasing awareness for the food industry post-FDA ruling? - The company is focusing on social media and reaching out to existing contacts in the food safety sector [51] Question: Any progress in using SteraMist for replacing ethylene oxide in medical sterilization? - Management confirmed ongoing discussions and prioritization of partnerships in this area [54]

Financial Performance - For the three months ended September 30, 2025, net sales were $2,011,556, a decrease of 21% compared to $2,542,251 for the same period in 2024[18]. - Gross profit for the nine months ended September 30, 2025, was $2,860,840, down 30% from $4,086,311 in the same period of 2024[18]. - The net loss for the nine months ended September 30, 2025, was $1,943,457, compared to a net loss of $1,221,030 for the same period in 2024, indicating a deterioration of 59%[18]. - For the three months ended September 30, 2025, the company reported a net loss of $450,348, compared to a net income of $58,962 for the same period in 2024[55]. - Total revenue for the three months ended September 30, 2025, was $2,012,000, a decrease of 20.8% from $2,542,000 in the same period of 2024[63]. - For the nine months ended September 30, 2025, total revenue was $4,619,000, a decline of 30.6% from $6,670,000 in the same period of 2024[65]. Assets and Liabilities - Total current assets decreased to $5,030,309 as of September 30, 2025, from $6,493,113 at December 31, 2024, representing a decline of approximately 22%[15]. - Total liabilities increased to $5,838,709 as of September 30, 2025, compared to $5,594,799 at December 31, 2024, reflecting a rise of about 4%[15]. - Total shareholders' equity decreased to $2,206,482 as of September 30, 2025, from $4,098,939 at December 31, 2024, a decline of about 46%[15]. - Cash and cash equivalents decreased to $490,022 as of September 30, 2025, from $664,879 at December 31, 2024, a decline of approximately 26%[15]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $5,069,409, slightly up from $5,041,873 in the same period of 2024[18]. - The company’s cash paid for interest increased to $309,314 for the nine months ended September 30, 2025, compared to $222,000 for the same period in 2024, indicating higher financing costs[23]. - General and administrative expenses for the three months ended September 30, 2025, were $1,072,000, an increase of $162,000 or 18% compared to the same period in 2024[198]. Revenue Breakdown - Revenue from the SteraMist product line for the three months ended September 30, 2025, was $1,603,000, down from $1,766,000 in 2024[63]. - The company recognized service and training revenue of $409,000 for the three months ended September 30, 2025, down from $776,000 in 2024[64]. - Domestic revenue for the three months ended September 30, 2025, was $1,280,000, a decrease of $606,000 or 32% compared to the same period in 2024[188]. - International revenue for the three months ended September 30, 2025, was $732,000, an increase of $76,000 or 12% compared to the same period in 2024[189]. Cash Flow and Financing - Net cash used in operating activities was $(576,780) for the nine months ended September 30, 2025, a significant improvement compared to $(1,452,862) for the same period in 2024[23]. - Cash provided by financing activities increased significantly to $535,000 for the nine months ended September 30, 2025, compared to $28,000 in the same period of 2024[211]. - The company plans to fund ongoing activities through current cash, cash generated from operations, and raising additional capital, though there is no assurance of success in raising such capital[85]. Inventory and Credit Losses - The allowance for credit losses increased to $2,229,977 as of September 30, 2025, up from $1,494,347 at December 31, 2024, indicating a rise in expected credit losses[39]. - The reserve for obsolete inventory was $868,000 as of September 30, 2025, down from $1,100,000 as of December 31, 2024, indicating improved inventory management[43]. - The company reported a credit loss expense of $197,639 for the nine months ended September 30, 2025, compared to $1,050,543 for the same period in 2024, showing a decrease in credit loss expense[39]. Strategic Initiatives - The company successfully completed multiple high-profile installations of its iHP technology, including at NASA's Johnson Space Center and Virginia Commonwealth University, demonstrating its adaptability in high-containment environments[152]. - The FDA's final rule broadening the use of hydrogen peroxide as a direct food additive is expected to positively impact the company's positioning in the food safety market, particularly in the ready-to-eat segment[157]. - The company is experiencing revenue growth among distributors and international partners, particularly in Europe, as it works towards finalizing regulatory approvals in the EU and UK[155]. Management and Governance - The company appointed a new Chief Financial Officer with an annual base salary of $230,000 and eligibility for a bonus of up to 40% of the base salary[122]. - Management is implementing measures to improve financial results and cash flows, including optimizing product mix and expanding recurring solution sales, to support liquidity needs through 2025[212].

Revenue Performance - Revenues for Q3 2025 reached $2.0 million, reflecting a 95% sequential increase over Q2 2025, driven by higher equipment purchases and strong BIT™ Solution sales[6] - Net sales for the three months ended September 30, 2025, were $2,011,556, down 20.9% from $2,542,251 in the same period of 2024[27] - SteraMist solution sales increased by 21% year over year for the nine months ended September 30, 2025[6] Profitability and Margins - Gross profit margin remained strong at 61% for Q3 2025, consistent with the same period last year, indicating operational efficiency[6] - Gross profit for the nine months ended September 30, 2025, was $2,860,840, a decrease of 30.0% compared to $4,086,311 in 2024[27] - The company reported a net loss of $450,348 for the three months ended September 30, 2025, compared to a net income of $58,962 in the same period of 2024[27] Expenses and Liabilities - Operating expenses increased to $5,069,409 for the nine months ended September 30, 2025, compared to $5,041,873 in 2024, reflecting a rise of 0.5%[27] - The company incurred interest expenses of $130,339 for the three months ended September 30, 2025, compared to $93,620 in the same period of 2024, representing an increase of 39.2%[27] - Total liabilities increased from $5,594,799 in December 2024 to $5,838,709 in September 2025, an increase of approximately 4.4%[25] Shareholder Equity and Capital - Shareholders' equity decreased significantly from $4,098,939 in December 2024 to $2,206,482 in September 2025, a decline of about 46.1%[25] - As of September 30, 2025, the company had working capital of $2.5 million, with cash used in operations improving by approximately $876,000 compared to the same period in 2024[7] - An equity line of credit allows the company to sell up to $20 million of common stock over a 24-month period, enhancing financial flexibility[8] Market Presence and Future Outlook - International revenue accounted for nearly 36% of Q3 revenue, up from 20% in Q2 2025, highlighting the company's expanding global market presence[6] - The company's sales order backlog grew to $0.9 million at quarter-end and expanded to $1.3 million as of October 31, with approximately $3 million in pending contracts expected to close before year-end[6] - The potential demand for TOMI's product offerings is estimated at approximately $15 million, with $7 million designated as high priority[6] - The company expects to file a universal shelf registration statement allowing it to offer and sell securities up to $50 million, including the $20 million under the equity line of credit[9] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $139,380, down 25.0% from $185,923 in 2024[27] Installations and Product Development - The company completed major SteraMist® installations, including the first installation of the SteraMist Integration System – Standalone (SIS-SA) in the life sciences sector[6]

Core Insights - TOMI Environmental Solutions, Inc. reported a significant sequential revenue increase of 95% in Q3 2025, driven by higher equipment purchases and strong recurring sales of its BIT™ Solution [5][10] - The company is strategically positioned for long-term growth, with ongoing investments in R&D and expanding international market penetration [10][11] Financial Performance - Revenues for Q3 2025 were $2.0 million, a 95% increase from Q2 2025, but a decrease from $2.54 million in Q3 2024 [5][25] - Gross profit margin remained stable at 61% for Q3 2025, indicating operational efficiency [5][25] - Operating loss for Q3 2025 was $(321,000), compared to an operating income of $149,000 in Q3 2024 [5][25] - Net loss for Q3 2025 was $(450,000) or $(0.02) per share, compared to a net income of $59,000 or $0.00 per share in Q3 2024 [5][25] Business Highlights - The company achieved a 21% year-over-year increase in SteraMist solution sales for the nine months ended September 30, 2025 [5] - International revenue accounted for nearly 36% of Q3 revenue, up from 20% in Q2 2025, reflecting successful global market penetration [5] - The sales order backlog grew to $0.9 million at quarter-end and expanded to $1.3 million by October 31, with approximately $3 million in pending contracts expected to close before year-end [5] Strategic Initiatives - The company is focusing on expanding its product applications across various sectors, including life sciences, healthcare, food safety, and commercial markets [5][10] - A new equity line of credit allows the company to sell up to $20 million in common stock over a 24-month period, enhancing financial flexibility [8][9] - The FDA's expanded approval for hydrogen peroxide use is expected to broaden the application of SteraMist iHP technology, targeting food, agriculture, and environmental biosecurity markets [10][12] Liquidity and Capital Access - As of September 30, 2025, the company had working capital of $2.5 million, with cash used in operations improving by approximately $876,000 compared to the same period in 2024 [7] - The company completed a $535,000 convertible note financing to support growth initiatives [7] Executive Commentary - The CEO highlighted the strong revenue growth and new customer partnerships as evidence of the effectiveness of the company's strategy and execution [10] - The company is optimistic about maintaining momentum into Q4 2025 and throughout 2026, supported by a growing customer base and expanding sales [11][12]

Core Points - TOMI Environmental Solutions, Inc. will report its third quarter results for the period ending September 30, 2025, on November 14, 2025, after market close [1] - A conference call will be held on the same day at 4:30 p.m. ET to discuss the results [1] Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its proprietary Binary Ionization Technology (BIT) platform [4] - BIT technology employs a low percentage of hydrogen peroxide as the active ingredient, utilizing patented ionized Hydrogen Peroxide (iHP) technology for superior disinfection [4] - The company's products are applicable in various sectors, including hospitals, biosafety labs, pharmaceutical facilities, commercial buildings, schools, and emergency services [4]

Core Insights - TOMI Environmental Solutions, Inc. is actively participating in the AALAS 76th National Meeting to enhance its presence in the animal research sector [1][2] - The event serves as a platform for TOMI to strengthen strategic partnerships and promote its SteraMist Integrated System (SIS) [2][3] - The company aims to leverage high-impact networking opportunities to drive the adoption of its innovative ionized Hydrogen Peroxide (iHP) technology [3][4] Company Overview - TOMI specializes in disinfection and decontamination solutions, utilizing its Binary Ionization Technology® (BIT™) platform, which is based on low percentage hydrogen peroxide [5] - The company’s products are designed for a wide range of applications, including hospitals, biosafety labs, and food processing facilities [5] Event Participation - AALAS is a significant event for TOMI, attracting thousands of professionals from research institutions, which facilitates lead generation and collaboration [3] - The executive team, including key leaders from various departments, will represent TOMI at the event, highlighting the company's commitment to innovation and customer-centric growth [4][5]