Group 1 - TOMI Environmental Solutions, Inc. reported a quarterly loss of $0.06 per share, missing the Zacks Consensus Estimate of a loss of $0.03, compared to break-even earnings per share a year ago, indicating an earnings surprise of -100.00% [1] - The company posted revenues of $1.03 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 41.75%, and down from $3.01 million in the same quarter last year [2] - The stock has underperformed the market, losing about 3.8% since the beginning of the year, while the S&P 500 gained 10% [3] Group 2 - The current consensus EPS estimate for the coming quarter is -$0.02 on revenues of $2.12 million, and for the current fiscal year, it is -$0.11 on revenues of $7.87 million [7] - The Zacks Industry Rank for Waste Removal Services is currently in the bottom 24% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Data and Key Metrics Changes - In Q2 2025, total recognized revenue was approximately $1,000,000, a decline of 66% from $3,000,000 in Q2 2024, primarily due to customers deferring capital expenditure projects [14] - Service revenue for the quarter was $378,000, representing a 33% increase year-over-year, while service revenue for the first six months reached $955,000, a 299% increase [15] - Gross margin improved to 66% in Q2 2025, up from 62% in the same quarter last year, attributed to a favorable product mix [15] Business Line Data and Key Metrics Changes - Service revenue from IHP service deployments and validation support services grew by 33% compared to the same period last year and by 46% over the first six months [8] - BIT solution sales saw a 40% increase year-to-date, with expectations for continued growth due to repeat orders [10] - The company has a sales order backlog of approximately $4,600,000, with active projects scheduled for delivery in 2025 [7] Market Data and Key Metrics Changes - The company is negotiating approximately $2,000,000 in new custom and integrated contracts, with bids expected to close before year-end [7] - Open opportunities for three product offerings total approximately $15,000,000, with $7,000,000 designated as high priority [7] - The USDA increased its usage of SteraMist in Q2 2025, indicating growing market acceptance [12] Company Strategy and Development Direction - The company is focused on expanding customer outreach through targeted marketing strategies and strategic partnerships [9] - There is an emphasis on educating the market about proactive disinfection through the SteriMist Pro certified program [10] - The company aims to enhance its infrastructure by strengthening personnel in management and expanding its global distributor network [28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining a positive trajectory for the remainder of 2025, despite challenges faced in Q2 [6] - The company anticipates significant orders from large companies as new manufacturing plants are built in the U.S. [38] - Management is hopeful that upcoming regulatory approvals will significantly impact growth [29] Other Important Information - The company was recognized as the Disinfection, Decontamination, and Disinfection Product Company of the Year for 2025 [12] - The company is developing a scalable solution to replace outdated methods in collaboration with the U.S. Army Medical Research Institute of Infectious Diseases [21] - There is a strong pipeline of international partnerships in Europe, with pending approvals expected soon [23] Q&A Session Summary Question: Can you provide margins realized in solution sales compared to the rest of the business? - Management expressed excitement about solution sales, noting high margins and an increase in gross margins to 66% this quarter [33] Question: What opportunities arise from the strategy to bring back pharma manufacturing to the U.S.? - Management highlighted that high regulatory standards present opportunities for significant orders from large companies as new facilities are built [38] Question: Have any customers that deferred CapEx projects notified you about moving ahead? - Management indicated a significant increase in customer deposits and confirmed that at least two customers are expected to proceed with projects in 2026 [41] Question: Can you describe how SteraMist would be used if FDA approvals are obtained? - Management detailed ongoing FDA approval processes for medical devices and food safety applications, emphasizing the potential for expanded market opportunities [43][44] Question: Any new uses developed for SteraMist? - Management mentioned ongoing internal tests for new applications, including extending the shelf life of flowers, but noted hurdles to overcome before entering new industries [46]

Financial Results - For Q2 2025, net sales were $1,031,000, a decrease from $3,013,000 in Q2 2024, reflecting a decline in product sales due to deferred capital expenditures by customers [5][22] - For the first half of 2025, net sales were $2,608,000, down from $4,127,000 in the same period of 2024 [5][22] - Gross profit margin improved to 66% in Q2 2025, compared to 62% in Q2 2024, attributed to a favorable product mix [5][22] - The company reported an operating loss of $(1,133,000) for Q2 2025, compared to an income of $122,000 in Q2 2024 [5][22] - Net loss for Q2 2025 was $(1,238,000) or $(0.06) per share, compared to a net income of $30,000 or $0.00 per share in Q2 2024 [5][22] Business Highlights - Service and training revenue increased by 33% year-over-year in Q2 2025 and by 46% in the first half of 2025, indicating strong demand for decontamination services [5][6] - SteraMist solution sales rose by 40% year-over-year for the first half of 2025 [5] - The company achieved nearly 20% of Q2 revenue from international markets, demonstrating ongoing global expansion [5][6] Strategic Initiatives - The company is focused on expanding recurring service contracts and exploring new product lines to generate steady income [12] - Plans to strengthen the corporate team and expand talent in key areas such as sales and customer support are underway [9] - The company is negotiating approximately $2 million in new custom and integrated contracts, with bids expected to close before year-end [5] Leadership and Recognition - David Vanston was appointed as Chief Financial Officer in May 2025, bringing extensive experience to support growth and capital strategy [7] - The company received the "Disinfection and Decontamination Products Company of the Year" award by MedTech Outlook in June 2025, highlighting its commitment to excellence [6] Liquidity and Capital Access - As of June 30, 2025, the company had working capital of $2.8 million, with cash used in operations improving by over $1 million compared to the prior year [8] - The company completed a $435,000 convertible note financing in the first half of 2025 to support growth initiatives [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 000-09908 TOMI ENVIRONMENTAL SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Florida 59-1947988 ( ...

[Q2 2025 Financial & Operational Overview](index=1&type=section&id=Q2%202025%20Financial%20%26%20Operational%20Overview) [Financial Performance](index=1&type=section&id=Financial%20Performance) TOMI's Q2 2025 net sales fell to **$1.03 million**, leading to a **$1.24 million** net loss, though gross margin remained strong at **66%** Q2 Financial Comparison (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Sales, net | $1,031,000 | $3,013,000 | -65.8% | | Gross Profit | $677,124 | $1,854,516 | -63.5% | | Gross Margin | 66% | 62% | +4 p.p. | | Operating (Loss) Income | $(1,133,000) | $122,000 | - | | Net (Loss) Income | $(1,238,000) | $30,000 | - | | EPS (basic and diluted) | $(0.06) | $0.00 | - | YTD Financial Comparison (Six Months Ended June 30) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Sales, net | $2,608,000 | $4,127,000 | -36.8% | | Service-based Revenue | $955,000 | $656,000 | +46% | | SteraMist Solution Sales | - | - | +40% | | Operating Loss | $(1,887,000) | $(1,105,000) | +70.8% | | Net Loss | $(1,493,000) | $(1,280,000) | +16.6% | | EPS (basic and diluted) | $(0.07) | $(0.06) | - | - The decline in net sales was primarily attributed to customers deferring capital expenditure projects due to economic uncertainty and the impact of tariffs on their supply chains. This was not a factor in Q2 2024, which had higher sales in mobile equipment and Custom Engineered Systems (CES)[4](index=4&type=chunk) [Business & Operational Highlights](index=1&type=section&id=Business%20%26%20Operational%20Highlights) The company saw strong **33%** growth in service and training revenue, with a **$1.4 million** sales backlog and a **$4.6 million** total pipeline - Service and training revenue showed significant year-over-year growth, increasing **33%** in Q2 2025 and **46%** in the first half of 2025[4](index=4&type=chunk) - The sales order backlog was approximately **$1.4 million** as of June 30, 2025. The combined total of recognized revenue, deferred revenue, and backlog was approximately **$4.6 million** as of August 7, 2025[4](index=4&type=chunk) - The company was awarded the **'2025 Disinfection and Decontamination Products Company of the Year'** by MedTech Outlook and announced the first installation of its new **SteraMist Integration System (SIS-SA)**[4](index=4&type=chunk)[5](index=5&type=chunk) - The company has a total of approximately **$15 million** in open opportunities for its product offerings, with **$7 million** designated as high priority[4](index=4&type=chunk) [Leadership & Liquidity](index=2&type=section&id=Leadership%20%26%20Liquidity) TOMI appointed a new CFO, maintained **$2.8 million** in working capital, improved operational cash flow, and secured **$435 thousand** in convertible note financing - In May 2025, **David Vanston** was appointed as the new **Chief Financial Officer**[6](index=6&type=chunk) - As of June 30, 2025, the company had working capital of **$2.8 million**, and cash used in operations improved by over **$1 million** year-over-year for the quarter[7](index=7&type=chunk) - A convertible note financing of **$435 thousand** was successfully completed in H1 2025 to provide additional working capital[7](index=7&type=chunk) [Management Commentary & Future Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Future%20Outlook) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) CEO acknowledged softer Q2 product sales but affirmed confidence in growth strategy, highlighting service revenue and margin resilience, with plans for team expansion - The CEO acknowledged a **'softer product sales cycle'** in Q2 but remains optimistic about future opportunities and the company's growth strategy[8](index=8&type=chunk) - Key areas of encouragement include sustained growth in the **service and training division**, **resilient margins**, and progress in **broadening the customer base**[8](index=8&type=chunk) - The company plans to expand its team before year-end, adding talent in the **C-suite, sales, customer support, and service technician roles**[8](index=8&type=chunk) [Looking Ahead: Growth Strategy](index=2&type=section&id=Looking%20Ahead%3A%20Growth%20Strategy) The growth strategy focuses on expanding recurring revenue through service contracts and SteraMist sales, growing international presence, and strengthening the team and balance sheet - The company is executing a focused strategy with the following key pillars: - **Expand recurring service contracts** and explore new offerings. - **Drive recurring revenue growth via SteraMist solution sales**. - **Grow international presence** with targeted marketing. - **Pursue additional government and institutional partnerships**. - **Strengthen the balance sheet and corporate team**[13](index=13&type=chunk) [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$8.48 million** by June 30, 2025, while liabilities rose to **$5.82 million**, leading to a decline in shareholders' equity to **$2.66 million** Balance Sheet Summary (as of June 30, 2025 vs. Dec 31, 2024) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $569,450 | $664,879 | | Accounts Receivable – net | $1,054,071 | $1,881,138 | | Inventories - net | $3,267,460 | $3,578,202 | | **Total Current Assets** | **$5,402,751** | **$6,493,113** | | **Total Assets** | **$8,475,950** | **$9,693,738** | | Accounts Payable | $1,001,121 | $1,924,379 | | **Total Current Liabilities** | **$2,593,063** | **$2,720,910** | | **Total Liabilities** | **$5,819,120** | **$5,594,799** | | **Total Shareholders' Equity** | **$2,656,830** | **$4,098,939** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20Of%20Operations) Q2 2025 saw a **$1.24 million** net loss on **$1.03 million** sales, a reversal from Q2 2024 net income, with year-to-date losses widening to **$1.49 million** Statement of Operations (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales, net | $1,031,115 | $3,013,392 | | Gross Profit | $677,124 | $1,854,516 | | Total Operating Expenses | $1,809,813 | $1,732,704 | | Income (loss) from Operations | $(1,132,689) | $121,812 | | Net Income (loss) | $(1,237,516) | $30,198 | Statement of Operations (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales, net | $2,607,673 | $4,127,479 | | Gross Profit | $1,628,869 | $2,525,184 | | Total Operating Expenses | $3,516,023 | $3,629,848 | | (Loss) from Operations | $(1,887,154) | $(1,104,664) | | Net (Loss) | $(1,493,109) | $(1,279,992) | [About TOMI & Conference Call Information](index=2&type=section&id=About%20TOMI%20%26%20Conference%20Call%20Information) [Company Profile](index=2&type=section&id=Company%20Profile) TOMI is a global decontamination and infection prevention company, leveraging its DARPA-developed SteraMist® Binary Ionization Technology® (BIT™) for surface disinfection - TOMI is a **global decontamination and infection prevention company** that provides environmental solutions for indoor surface disinfection[12](index=12&type=chunk) - The company's premier technology is the **Binary Ionization Technology® (BIT™)** platform, which was invented under a defense grant from **DARPA**[12](index=12&type=chunk) - TOMI's products and services are used in diverse settings, including hospitals, medical facilities, cruise ships, schools, and military barracks[14](index=14&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) A conference call to discuss Q2 2025 financial results is scheduled for **August 14, 2025, at 4:30 p.m. ET**, with access details provided - A conference call is scheduled for **August 14, 2025, at 4:30 p.m. ET**[9](index=9&type=chunk) - Participants can join via phone by dialing **(888) 506-0062** with access code **838858**, or access the live webcast through the company's **investor relations website**[10](index=10&type=chunk) - A replay of the call will be available until **August 28, 2025**[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially, as detailed in SEC filings - The report contains **forward-looking statements** concerning strategies, future revenue, and business development, which are subject to **risks and uncertainties** as described in the company's **SEC filings**[17](index=17&type=chunk)

Core Insights - TOMI Environmental Solutions, Inc. has received significant purchase orders from a leading company in eye health, indicating strong demand for its disinfection solutions [1][4] - The total expected purchases from this customer for 2025 are approximately $385,000, which includes SteraMist iHP equipment, BIT Solution, and support services [4] Group 1: Purchase Orders and Customer Engagement - A customer placed an initial order for multiple Surface Units and disinfection carts for its South Carolina facility earlier in the year, followed by a second order for the Florida facility in Q3 2025 [2] - The successful completion of the South Carolina validation package demonstrates the effectiveness of TOMI's surface treatment solutions [2][3] Group 2: Technology and Competitive Advantage - The FDA has highlighted the need for complete decontamination of hard-to-clean equipment, which TOMI's SteraMist technology addresses effectively [3] - SteraMist has successfully passed trials against Geobacillus stearothermophilus spores, showcasing the reliability of its iHP technology [3] Group 3: Company Overview and Product Offering - TOMI Environmental Solutions specializes in disinfection and decontamination, utilizing its Binary Ionization Technology (BIT) platform, which employs low percentage hydrogen peroxide as the active ingredient [5] - The company's products are designed for a wide range of applications, including hospitals, biosafety labs, pharmaceutical facilities, and more [5]

Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its proprietary Binary Ionization Technology (BIT) platform [4] - The BIT solution employs a low percentage of hydrogen peroxide as its active ingredient, enhanced by patented ionized Hydrogen Peroxide (iHP) technology [4] - TOMI's products cater to a wide range of sectors, including hospitals, biosafety labs, pharmaceutical facilities, schools, and more [4] Financial Reporting - TOMI will report its second-quarter results for the period ending June 30, 2025, after the market closes on August 14, 2025 [1] - A conference call to discuss these results will take place at 4:30 p.m. ET on the same day [1] Participation Details - Participants can join the conference call by dialing (888) 506-0062 or (973) 528-0011 for international callers, using access code 838858 [2] - A replay of the teleconference will be available until August 28, 2025, with access codes provided for both domestic and international callers [3]

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 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 pe ...

Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, focusing on the life sciences sector with its SteraMist Integration System – Standalone (SIS-SA) [1][4] - The company utilizes its proprietary Binary Ionization Technology® (BIT™) platform, which employs ionized Hydrogen Peroxide (iHP™) for superior disinfection [5] Industry Insights - The life science sterility testing market is projected to grow to $3.4 billion by 2031, with a compound annual growth rate (CAGR) of 12.4%, driven by increased demand for pharmaceutical and biotechnology products and stricter regulatory standards [2][4] - Aseptic isolators are becoming increasingly critical as life sciences organizations aim to meet stringent regulatory requirements for sterile drug production [2] Product Development and Market Position - The first installation of the SIS-SA system marks a significant milestone for TOMI, indicating the company's commitment to expanding its presence in the life sciences industry [4] - A leading pharmaceutical CDMO has adopted TOMI's SteraMist iHP technology, indicating growing acceptance and investment in TOMI's solutions within the industry [3][4] - The company anticipates generating over half a million dollars in revenue from the SIS-SA product in fiscal 2025, reflecting strong market demand [4]

Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, particularly through its SteraMist technology [1] - The company is positioned to play a key role in protecting global food security through environmental biosecurity [4] Industry Context - Honeybees are essential pollinators, contributing $20–30 billion annually to the U.S. agricultural economy and $387 billion globally [4] - The U.S. Department of Agriculture (USDA) has reported that commercial beekeepers faced colony losses of up to 60% in early 2025, leading to an estimated economic impact of $600 million [3] Scientific Validation - A study published by the USDA demonstrated that SteraMist's ionized hydrogen peroxide (iHP) significantly inactivates Deformed Wing Virus (DWV), a major cause of honeybee colony loss [2] - The research highlights SteraMist's ability to reduce viral infections in hive substrates, providing a non-toxic solution for protecting bee populations [2] Economic Impact - The collapse of honeybee colonies has significant economic and ecological implications, emphasizing the need for effective solutions [5] - The USDA confirmed that viruses spread by Varroa destructor mites are the primary cause of the honeybee crisis [3]