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]

Group 1 - TOMI Environmental Solutions, Inc. will present at the LD Micro Main Event XIX on October 21, 2025, at 10:00 AM PT [1][2] - The event will take place from October 19 to 21, 2025, at the Hotel del Coronado in San Diego, California, featuring around 120 companies [3][4] - Dr. Halden Shane, CEO and Chairman of the Board, will be delivering the presentation for TOMI [1] Group 2 - TOMI specializes in disinfection and decontamination through its Binary Ionization Technology (BIT) platform, marketed under the SteraMist brand [5] - The BIT solution utilizes a low percentage of hydrogen peroxide as its active ingredient, employing patented ionized Hydrogen Peroxide (iHP) technology for superior disinfection [5] - TOMI's products are designed for a wide range of applications, including hospitals, biosafety labs, pharmaceutical facilities, and various commercial settings [5]

Core Insights - TOMI Environmental Solutions, Inc. has appointed Mr. Harold W. Paul to its Board of Directors, effective immediately, succeeding Ms. Kelly J. Anderson who resigned as of September 30, 2025 [1][3] Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination through its Binary Ionization Technology (BIT) platform, marketed under the SteraMist brand [1][4] - The BIT solution utilizes a low percentage of hydrogen peroxide as its active ingredient and employs patented ionized Hydrogen Peroxide (iHP) technology for superior disinfection [4] Leadership Experience - Mr. Paul brings over 40 years of legal and securities expertise, along with extensive board leadership experience across various industries, having previously served on TOMI's Board from 2009 to 2021 [2] - He has advised numerous publicly traded companies as outside legal counsel and has served on the boards of six public companies [2] Strategic Importance - The CEO of TOMI, Dr. Halden Shane, expressed that Mr. Paul's knowledge of securities law and corporate governance will provide valuable insights as the company advances its strategy and expands its impact in critical industries [3]

Core Insights - TOMI Environmental Solutions, Inc. has made a strategic move by purchasing SteraMist iHP equipment and BIT Solution worth $175,000 through T.A.C.T. franchises, marking a significant step in its commercial growth strategy [1][2][3] Group 1: Company Developments - The phased rollout of SteraMist technology by T.A.C.T. franchises indicates their confidence in its effectiveness, with initial purchases leading to widespread adoption across all participating franchises [2][3] - The integration of SteraMist iHP technology into T.A.C.T.'s operations has been seamless, supported by TOMI's customer service and educational initiatives [3][5] - The partnership with T.A.C.T. is expected to create recurring revenue opportunities for TOMI, particularly through the BIT Solution [6] Group 2: Market Opportunities - There is a growing market opportunity in addressing mycotoxin contamination, which has reportedly increased by 20-30% in the U.S. over the past decade due to various environmental factors [5] - Mycotoxins pose significant health risks and can lead to costly consequences for businesses, making SteraMist iHP technology a valuable solution for remediation [5][6] - TOMI's SteraMist technology is positioned to tackle critical challenges in public health, particularly in commercial settings where mold and mycotoxin contamination are prevalent [6]