Company Overview - TOMI Environmental Solutions, Inc. is a global company specializing in disinfection and decontamination solutions, focusing on environmental solutions through its Binary Ionization Technology® (BIT™) platform [3] - The BIT™ solution utilizes a low percentage of hydrogen peroxide as its only active ingredient, employing patented ionized Hydrogen Peroxide (iHP™) technology for superior disinfection [3] Leadership Appointment - Mr. David Vanston has been appointed as Chief Financial Officer, effective May 30, 2025, bringing over 25 years of international financial leadership experience [1][2] - His previous roles include senior finance positions at various companies, including CFO roles at Jon-Don, Flexan, Arcmed-Diba Industries, and VolitionRx [2] - The CEO of TOMI, Dr. Halden Shane, expressed confidence in Mr. Vanston's extensive background in life sciences and manufacturing, aligning with the company's growth strategy [3] Product and Market Applications - TOMI's products are designed for a wide range of applications, including hospitals, medical facilities, biosafety labs, pharmaceutical facilities, commercial buildings, schools, restaurants, and emergency services [3]

TOMI Environmental Solutions (TOMZ) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Company Participants Rosalyn Christian - Account ManagerHalden Shane - Chairman & CEOElissa Shane - COO & Director Conference Call Participants None - Analyst Operator Greetings. Welcome to the TOMI Environmental Solutions Inc. First Quarter two thousand twenty five Financial Results Conference Call. Please note this conference is being recorded. I will now turn the conference over to your host, Rosalynn Christian from IMS In ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased to $1,577,000, up from $1,114,000 in Q1 2024, representing a 42% increase driven by heightened demand for bit solutions and mobile systems [11] - Product-based revenues totaled $1,000,000 in Q1 2025, reflecting a 35% growth compared to Q1 2024 [11] - Service revenues generated $577,000, a 56% increase from the same prior year period [11] - BIT solution sales reached approximately $300,000, marking nearly a 200% increase from just over $100,000 in Q1 2024 [12] - Operating loss for the quarter was approximately $754,000, an improvement from the operating loss of $1,226,000 in the same quarter last year [12] - Net loss was approximately $256,000 or $0.01 per share compared to $1,310,000 or 7% loss per share in the prior year [12] - Cash and cash equivalents stood at approximately $674,000, with working capital of $3,800,000 [13] Business Line Data and Key Metrics Changes - Total sales in February 2025 saw a 42% increase compared to February 2024, with a 21% increase in April 2025 compared to April 2024 [6] - Year-to-date, there was a 169% surge in bit solution sales compared to the same period last year [6] - The company welcomed several new customers, including a division of the US Army and a children's hospital, indicating expansion in various sectors [8] Market Data and Key Metrics Changes - The company reported an increase in open sales log from approximately $877,000 at the end of 2024 to $1,600,000 by the end of Q1 2025 [10] - The IHP corporate service deployment pipeline currently stands at $1,000,000 in open proposals for 2025 [22] Company Strategy and Development Direction - The company is focused on expanding its product line and distribution strategy, with new service offerings launched in 2024 [5] - There is a commitment to educating the market on the importance of protective disinfection through the SteraMist Pro certified program [7] - The company aims to enhance its sales infrastructure by establishing new distribution channels and recruiting qualified business developers [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining sales momentum and anticipated a positive trend in sales throughout the year [14] - The company is encouraged by significant progress made in Q1 2025, showcasing the effectiveness of its strategies and product offerings [23] - Management noted that they are not experiencing significant problems due to government budget cuts and expect increased demand from government sectors [28] Other Important Information - The company is actively seeking strong global partners and is focused on rebuilding brand presence in various international markets [21] - The partnership with AlgaFeed has opened a new aquaculture market for SteriMist IHP [8] Q&A Session Summary Question: Do you have any financial goals for the year 2025? - Management is confident that 2025 will be a great year and expects to improve on last year's numbers [25] Question: Do you anticipate any effects from the tariffs trade policy? - Management indicated that they have had minor issues with tariffs but are not experiencing significant problems with international sales [26][27] Question: Do you anticipate significant problems due to government budget cuts? - Management believes there will be an increase in demand from government sectors that utilize their products [28] Question: Any new developments on food safety? - Management reported a surge in interest and requests related to food safety, indicating a growing market [30] Question: Any updates on SteraMist for prevention of bird flu transmission? - Management noted that there is increased interest in using their products for bird flu disinfection, but no significant developments have materialized recently [31][32] Question: Any new developments on Ceramist as an ethylene oxide replacement? - Management confirmed ongoing negotiations with companies looking to replace ethylene oxide with Ceramist [33] Question: Was the order for treating pacemakers used in replacement of ethylene oxide? - The order was not a replacement but helped develop a new protocol for the medical device manufacturer [34][35] Question: Have any new ways been developed to educate the market? - The SteraMist Pro certified program was launched to educate the market and improve product usage [37][38]

Financial Performance - For the year ended December 31, 2024, total net sales increased by 5% to $7,739,000 compared to $7,355,000 in 2023[8] - Non-GAAP gross sales for the year were $7,966,000, reflecting a 6% increase from $7,483,000 in the previous year[8] - GAAP net loss for the year was $(4,477,000) or $(0.22) per share, compared to $(3,403,000) or $(0.17) per share in 2023[8] - SteraMist product-based revenues increased to $6,035,000 for the year, up from $5,781,000 in 2023, driven by higher demand for mobile and SIS units[8] - Net sales for the year ended December 31, 2024 were $7,738,842, an increase of 5.2% compared to $7,354,564 in 2023[30] - Gross profit for the year ended December 31, 2024 was $3,557,078, down 17.1% from $4,289,536 in 2023[30] - The net loss for the year ended December 31, 2024 was $4,476,762, compared to a net loss of $3,402,592 in 2023, representing an increase in loss of 31.6%[30] - Non-GAAP gross profit for the year ended December 31, 2024 was $4,789,078, an increase of 8.4% from $4,417,926 in 2023[31] - Non-GAAP net loss for the year ended December 31, 2024 was $2,049,912, compared to $2,838,399 in 2023, indicating a decrease in loss of 28%[31] Revenue Growth - International revenue grew by 33% for the year, supported by new customers in Canada, South Africa, and India[8] - Preliminary Q1 2025 revenues are expected to be approximately $1,577,000, a 42% increase from $1,114,000 in Q1 2024[19] - Sales backlog increased to $1,232,000 as of March 31, 2025, representing a 40% increase from December 31, 2024[19] Operational Metrics - The gross margin for the year was 46%, down from 58% in the prior year, while non-GAAP gross margin was 60%, up from 59%[8] - Operating expenses increased to $7,661,838 for the year ended December 31, 2024, compared to $7,638,813 in 2023, reflecting a slight increase of 0.3%[31] Assets and Liabilities - Total assets decreased from $13,357,614 in December 31, 2023 to $9,693,738 in December 31, 2024, a decline of approximately 27.5%[24] - Total liabilities increased from $4,998,720 in December 31, 2023 to $5,594,799 in December 31, 2024, an increase of approximately 11.9%[28] - Cash and cash equivalents decreased significantly from $2,339,059 in December 31, 2023 to $664,879 in December 31, 2024, a decline of about 71.6%[24] - Total shareholders' equity decreased from $8,358,894 in December 31, 2023 to $4,098,939 in December 31, 2024, a decline of approximately 51%[28] Future Outlook - The company anticipates continued improvement in 2025, driven by a strong pipeline and high-margin solution sales[9] - The company expanded partnerships with six new partners across various regions, enhancing its global distribution capabilities[8]

Financial Performance - For Q1 2025, TOMI Environmental Solutions reported net sales of $1,576,558, a 41.6% increase from $1,114,087 in Q1 2024[18]. - Gross profit for Q1 2025 was $951,745, compared to $670,668 in Q1 2024, reflecting a gross margin improvement[18]. - The net loss for Q1 2025 was $255,593, significantly improved from a net loss of $1,310,190 in Q1 2024[18]. - The basic net loss per share for the three months ended March 31, 2025, was $(0.01), compared to $(0.07) for the same period in 2024, showing a reduction in loss per share[54]. - Cash used in operations decreased to approximately $276,000 in Q1 2025 from $1,178,000 in Q1 2024[76]. - Net loss for Q1 2025 was $255,000, significantly improved from a net loss of $1,310,000 in Q1 2024, indicating better financial performance[198]. Revenue Growth - For the three months ended March 31, 2025, total revenue was $1,577,000, a 41.6% increase from $1,114,000 in the same period of 2024[60]. - SteraMist product revenue increased to $1,000,000 in Q1 2025 from $743,000 in Q1 2024, representing a 34.6% growth[60]. - Service and training revenue rose to $577,000 in Q1 2025, up 55.7% from $371,000 in Q1 2024[60]. - The United States contributed $1,192,000 to total revenue in Q1 2025, compared to $662,000 in Q1 2024, marking an increase of 80.0%[61]. - Domestic revenue grew by 80% in Q1 2025 compared to the same period last year, reflecting higher demand for solutions and services[131]. Cost Management - Operating expenses decreased to $1,706,210 in Q1 2025 from $1,897,144 in Q1 2024, a reduction of approximately 10.1%[18]. - Operating expenses decreased by $191,000, or 10%, in Q1 2025 compared to Q1 2024, primarily due to lower selling and administrative expenses[133]. - Research and development expenses for Q1 2025 were approximately $45,000, down from $68,000 in Q1 2024, a reduction of 33.8%[74]. - Selling expenses decreased to approximately $246,000 for the three months ended March 31, 2025, compared to $289,000 in 2024, representing a decline of approximately $43,000 or 15%[212]. Asset Management - Total current assets increased to $6,779,492 as of March 31, 2025, up from $6,493,113 at the end of 2024, representing a growth of 4.4%[15]. - Total assets reached $9,957,777 as of March 31, 2025, compared to $9,693,738 at the end of 2024, indicating a 2.7% increase[16]. - Cash and cash equivalents at the end of Q1 2025 were $674,181, a slight increase from $664,879 at the end of 2024[21]. - Accounts receivable increased by $112,666 in Q1 2025, while inventory saw a positive change with an increase of $158,095[21]. Inventory and Liabilities - Total inventories decreased to $3,406,000 as of March 31, 2025, from $3,578,000 at the end of 2024, a decline of 4.8%[80]. - The reserve for obsolete inventory remained stable at $1,100,000 as of both March 31, 2025, and December 31, 2024, suggesting consistent inventory management practices[40]. - As of March 31, 2025, one vendor accounted for approximately 49% of accounts payable, down from 60% as of December 31, 2024, indicating improved supplier diversification[45]. Strategic Initiatives - TOMI's Binary Ionization Technology® (BIT™) continues to be a key focus, with products actively used for COVID-19 decontamination[24]. - A significant contract for a SteraMist iHP Custom Engineered System valued at approximately $450,000 was secured with a leading university in March 2025[139]. - The deployment of SteraMist iHP technology at NASA Johnson Space Center marks an expansion into the aerospace sector[140]. - An OEM partnership with Pharma Biotech System Components LLC was announced, enhancing the SteraMist Integrated System product[142]. Market Opportunities - The global pharmaceutical market is projected to grow steadily, increasing the demand for decontamination solutions that deliver consistent fast results[161]. - The life sciences sector has adopted SteraMist iHP, enhancing efficiency and safety in operations, with Fortune 100 companies among its customers[159]. - The food safety segment presents significant growth opportunities, with increasing demand for effective sanitation solutions due to food contamination concerns[164]. - Approximately 7-10% of patients in healthcare facilities acquire healthcare-associated infections (HAIs), highlighting the need for effective disinfection measures[175]. Compliance and Recognition - The company achieved compliance and recognition from Avetta, enhancing its commitment to health, safety, and environmental excellence[189]. - The company maintains registrations in all 50 states, Washington D.C., Canada, and approximately 40 other countries, demonstrating its commitment to global safety[155].

Core Insights - TOMI Environmental Solutions, Inc. reported a 42% increase in revenue for Q1 2025 compared to the previous quarter, driven by strong demand for its product lines and recurring solution sales [2][3] - The company achieved a gross margin of 60.4%, slightly up from 60.2% in the prior year, and reduced its operating loss to $(754,000) from $(1,226,000) year-over-year [6] - Net loss decreased to $(256,000) or $(0.01) per share, compared to $(1,310,000) or $(0.07) per share in the same period last year [6] Financial Performance - Net sales for Q1 2025 were $1,577,000, up from $1,114,000 in Q1 2024, marking a significant year-over-year growth [6] - SteraMist product-based revenues increased to $1,000,000 from $743,000, reflecting a $257,000 rise due to heightened demand for various SteraMist solutions [6] - Service-based revenue also grew by 56%, reaching $577,000 compared to $371,000 in the prior year [6] Market Trends and Business Development - Domestic revenue surged by 80% to $1,192,000 from $662,000, attributed to increased demand for solutions and services [6] - The sales backlog as of March 31, 2025, was $1,225,000, an increase of $348,000 from December 31, 2024 [6] - A significant contract was secured for a SteraMist iHP Custom Engineered System at a university in Rhode Island, valued at approximately $450,000 [6] Strategic Partnerships and Expansion - TOMI announced the deployment of SteraMist iHP technology at NASA Johnson Space Center, indicating expansion into the aerospace sector [6] - An OEM partnership with Pharma Biotech System Components was established to enhance the SteraMist Integrated System [6] - The company is expanding into aquaculture with a new partner, Algafeed, further diversifying its market reach [7]

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, utilizing patented ionized Hydrogen Peroxide (iHP) technology for superior disinfection [4] - TOMI's products are applicable in various environments, including hospitals, biosafety labs, pharmaceutical facilities, schools, and commercial buildings [4] Financial Reporting - TOMI will report its first-quarter results for the period ending March 31, 2025, after the market closes on May 8, 2025 [1] - A conference call to discuss these results will be held at 4:30 p.m. ET on the same day [1] Participation Information - Participants can join the conference call by dialing (877) 545-0320 or (973) 528-0002 for international callers, using access code 616069 [2] - A replay of the teleconference will be available until May 22, 2025, with access codes provided for both domestic and international callers [3]

Financial Data and Key Metrics Changes - GAAP revenue increased to $7.739 million in 2024 from $7.355 million in 2023, driven by higher demand for mobile systems and IHP corporate service revenue [51] - Non-GAAP revenue was approximately $8 million, reflecting nearly a 6% increase over 2023 [52] - GAAP net loss was $4.477 million or $0.22 per share compared to a net loss of $3.403 million or $0.17 per share in the prior year [57] Business Line Data and Key Metrics Changes - Mobile equipment sales totaled approximately $3.8 million in 2024, reflecting a 23% growth compared to 2023 [54] - Service revenue generated around $2 million, a 23% increase from the previous year [54] - BIT solution sales reached approximately $900,000, marking a 9% growth [54] Market Data and Key Metrics Changes - The IHP corporate service division secured contracts extending through 2026, with a 42% increase in Q1 2025 compared to the same period last year [29] - Distribution arrangements resulted in 13 partners, leading to approximately $930,000 in sales for 2024 [27] - The company anticipates a $1 million pipeline with open proposals for 2025 in IHP corporate service deployment [65] Company Strategy and Development Direction - The company aims to expand the SteriMIST IHP brand globally and has established valuable partnerships in key markets [16] - Focus on enhancing sales infrastructure by establishing new distribution channels and recruiting independent representatives [59] - The company is committed to advancing healthcare initiatives and meeting regulatory requirements for medical devices [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, highlighting early successes in 2025 and a healthy pipeline [15] - The company is focused on returning to sustainable positive cash flow as soon as possible [50] - Management acknowledged challenges in the global food market but emphasized ongoing collaborations to address these issues [30] Other Important Information - The company has reduced R&D expenses by 41%, advertising and sales commissions by 17%, and consulting expenses by 20% in 2024 [48] - The company is actively pursuing new partnerships and expanding its market presence in regions like Panama, Nigeria, and Israel [64] - The SteriMIST Pro-Certified Program is expected to grow in membership by 2026, enhancing the utilization of SteriMIST products [72] Q&A Session Summary Question: Revenue guidance for the year and margin information - Management indicated that margins should remain around current levels and expressed confidence in the pipeline of projects for 2025 [85][89] Question: Impact of tariffs on the company - Management does not anticipate significant ramifications from the tariff situation at this time [100] Question: Adequacy of cash levels for upcoming opportunities - Management believes that with a planned raise and current accounts receivable, cash levels will be adequate to address opportunities [102] Question: Status of FDA rulings on 1% hydrogen peroxide for food applications - Management stated that it is difficult to predict the timeline for FDA rulings due to changes in regulatory agencies [110] Question: Modifications to SteriPak - Management confirmed that they are considering upgrades to surface units but are currently marketing the existing SteriPak [112]

Core Insights - TOMI Environmental Solutions, Inc. reported a 5% year-over-year increase in annual revenue for 2024, reaching $7.739 million compared to $7.355 million in 2023, while also expanding its customer base and product line [2][8] - The company experienced a GAAP net loss of $4.477 million for the year, compared to a loss of $3.403 million in the previous year, but noted improvements in non-GAAP financials, with a non-GAAP net loss of $2.050 million compared to $2.838 million in 2023 [3][4][8] - Preliminary Q1 2025 revenues are up 42% compared to Q1 2024, indicating a strong start to the year and a robust sales pipeline [2][16] Financial Performance - For the fourth quarter of 2024, net sales were $1.069 million, down from $1.528 million in Q4 2023, with a GAAP gross margin of -49.5% compared to 54.9% in the prior year [3][8] - Non-GAAP gross sales for Q4 2024 were $1.296 million, down from $1.656 million in Q4 2023, with a non-GAAP gross margin of 54.2% compared to 58.4% in the same period last year [4][8] - The total operating loss for the year was $4.105 million, compared to $3.349 million in 2023, while the non-GAAP operating loss improved to $1.678 million from $2.785 million [3][4][8] Business Highlights - SteraMist product-based revenues increased to $6.035 million in 2024 from $5.781 million in 2023, driven by higher demand for mobile and SIS units [8] - Service-based revenue also grew to $1.704 million in 2024 from $1.574 million in 2023, attributed to increased demand for iHP services [8] - International revenue grew by 33% in 2024, with new customers in Canada, South Africa, and India, and the company has established partnerships across various regions [8] Future Outlook - The company anticipates continued improvement in profitability throughout 2025, supported by high gross margins and a reduced expense structure [2][7] - Sales backlog increased to $1.232 million as of March 31, 2025, reflecting a 40% increase from December 31, 2024 [16] - The company is committed to nurturing partnerships with over 30 partners globally to strengthen the SteraMist brand [8]

Financial Data and Key Metrics Changes - GAAP revenue increased to $7.739 million in 2024 from $7.355 million in 2023, driven by higher demand for mobile systems and IHP corporate service revenue [51] - Non-GAAP revenue was approximately $8 million, reflecting nearly a 6% increase over 2023 [52] - GAAP net loss was $4.477 million or $0.22 per share compared to a net loss of $3.403 million or $0.17 per share in the prior year [57] Business Line Data and Key Metrics Changes - Mobile equipment sales totaled approximately $3.8 million in 2024, reflecting a 23% growth compared to 2023 [54] - Service revenue generated around $2 million, a 23% increase from the previous year [54] - BIT solution sales reached approximately $900,000, marking a 9% growth [54] Market Data and Key Metrics Changes - The IHP corporate service division secured contracts extending through 2026, with a 42% increase in Q1 2025 compared to the same period last year [29] - Distribution arrangements resulted in 13 partners, leading to approximately $930,000 in sales for 2024 [27] Company Strategy and Development Direction - The company aims to expand the SteriMIST IHP brand globally and has established valuable partnerships in key markets [16] - Focus on enhancing sales infrastructure by establishing new distribution channels and recruiting independent representatives [59] - Plans to nurture the pipeline of CES hybrid and SIS sales to positively impact revenue in 2025 and beyond [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, highlighting early successes in 2025 and a healthy pipeline [15][16] - The company is focused on returning to sustainable positive cash flow as soon as possible [50] - Management acknowledged challenges in the global food market but emphasized ongoing collaborations to address these issues [30] Other Important Information - The company has reduced R&D expenses by 41%, advertising and sales commissions by 17%, and consulting expenses by 20% in 2024 [48] - The company is actively pursuing new EPA labels to support growth within the cannabis and food safety industries [69] Q&A Session Summary Question: Revenue guidance for the year and margin information - Management indicated that margins should remain around current levels and expects additional wins to follow throughout the year [85][89] Question: Impact of tariffs on the company - Management does not anticipate significant ramifications from the tariff situation at this time [100] Question: Adequacy of cash levels to address opportunities - Management is looking to raise funds and believes current cash levels, along with accounts receivable, will be sufficient [102] Question: Status of FDA ruling for 1% solution for food products - Management stated it is hard to predict due to changes within regulatory agencies [110] Question: Modifications to SteriPak - Management confirmed that they are considering upgrades to surface units but are currently marketing the existing SteriPak [112]