Financial Performance - For the three months ended June 30, 2025, net sales were $1,031,115, a decrease from $3,013,392 in the same period of 2024, representing a decline of approximately 65.8%[18] - Gross profit for the six months ended June 30, 2025, was $1,628,869, down from $2,525,184 in 2024, indicating a decrease of about 35.5%[18] - The net loss for the six months ended June 30, 2025, was $1,493,109, compared to a net loss of $1,279,992 for the same period in 2024, representing an increase in loss of approximately 16.7%[18] - For the six months ended June 30, 2025, the company reported a net loss of approximately $1,493,000, compared to a net loss of $1,280,000 for the same period in 2024, indicating an increase in losses of about 16.67%[81] - For the three months ended June 30, 2025, the net loss attributable to common shareholders was $1,237,516, compared to a net income of $30,198 for the same period in 2024[56] - Net loss for Q2 2025 was $(1,238,000), compared to a net income of $30,000 in Q2 2024, representing a decrease of $1,268,000[167] Revenue Breakdown - Total revenue for the three months ended June 30, 2025, was $1,031,000, a decrease of 65.8% from $3,013,000 in the same period of 2024[62][63] - SteraMist product revenue for the three months ended June 30, 2025, was $653,000, down 76.0% from $2,728,000 in 2024[62] - Service and training revenue increased to $378,000 for the three months ended June 30, 2025, compared to $285,000 in 2024, representing a growth of 32.6%[62] - For the six months ended June 30, 2025, revenue was $2,608,000, down $1,519,000 or 37% from $4,127,000 in the same period of 2024[168] - SteraMist product revenue for Q2 2025 was $653,000, a decrease of $2,075,000 or 76% compared to $2,728,000 in Q2 2024[169] - Service and training revenue increased by $93,000 or 33% in Q2 2025, totaling $378,000 compared to $285,000 in Q2 2024[170] Expenses and Liabilities - Operating expenses for the three months ended June 30, 2025, totaled $1,809,813, an increase from $1,732,704 in the same period of 2024, indicating a rise of about 4.4%[18] - Total liabilities increased to $5,819,120 as of June 30, 2025, compared to $5,594,799 at the end of 2024, marking an increase of about 4%[14] - Total accrued expenses and other current liabilities increased to $736,480 as of June 30, 2025, from $455,675 as of December 31, 2024, representing a rise of approximately 61.6%[119] - Professional fees for Q2 2025 were $184,000, an increase of approximately $100,000 compared to $84,000 in Q2 2024, due to higher filing and audit fees[176] Cash Flow and Assets - Cash and cash equivalents decreased to $569,450 as of June 30, 2025, from $664,879 at the end of 2024, a decline of approximately 14.3%[14] - Cash flow from operating activities showed a net cash used of $463,302 for the six months ended June 30, 2025, a significant improvement from $1,558,173 in the prior year, reflecting a decrease in cash used of approximately 70.3%[24] - Cash and cash equivalents as of June 30, 2025, were $569,000, down from $665,000 as of December 31, 2024[165] - Cash used in operations decreased to $463,000 for the six months ended June 30, 2025, compared to $1,558,000 for the same period in 2024[191] Shareholder Equity and Financing - The total shareholders' equity as of June 30, 2025, was $2,656,830, down from $4,098,939 at the end of 2024, reflecting a decrease of about 35.1%[16] - The company raised $435,000 from the issuance of convertible notes during the six months ended June 30, 2025, compared to $27,500 from the exercise of options in the same period of 2024[24] - The company has convertible notes totaling $2,600,000 issued in October and November 2023, convertible into 2,080,000 shares of common stock at a conversion price of $1.25 per share[99] - As of June 30, 2025, the net amount of convertible notes was $2,781,730, up from $2,360,494 as of December 31, 2024, indicating an increase of about 17.8%[105] Research and Development - Research and development expenses for the three months ended June 30, 2025, were $84,106, compared to $61,614 in the same period of 2024, an increase of approximately 36.3%[18] - Research and development expenses increased by approximately $22,000 or 35% for the three months ended June 30, 2025, while decreasing by approximately $1,000 or 1% for the six months ended June 30, 2025 compared to the same periods in 2024[180][181] Customer Concentration and Contracts - One customer accounted for 10% of net revenue for the three months ended June 30, 2025, while two customers accounted for 54% of net revenue for the same period in 2024, indicating a shift in customer concentration[125] - The company announced a significant contract valued at approximately $450,000 for a SteraMist iHP Custom Engineered System at a leading university in Rhode Island[144] - The deployment of SteraMist iHP technology at the NASA Johnson Space Center marks the company's expansion into the aerospace sector[145] - Open opportunities for the SteraMist Integrated System total approximately $15 million, with $7 million designated as high-priority[152] Tax Credits and Other Income - The company recorded refunds from Employee Retention Credits during the six months ended June 30, 2025, recognized as Other Income, indicating a non-recurring benefit[129] - For the six months ended June 30, 2025, the company recorded $534,912 in employee retention credits and $81,887 in related interest[130] - Other income was approximately $535,000 for the six months ended June 30, 2025, attributed to employee retention tax credits received in the current year period[186] Accounting Policies - The company recognizes revenue in accordance with ASC Topic 606, reflecting the consideration expected in exchange for goods or services[206] - Product revenue includes sales from standard and customized equipment, recognized upon transfer of control to customers[209] - Service revenue encompasses high-level decontamination, equipment validation, and customer training, recognized as services are rendered[210] - Estimated allowances for sales returns are recorded as sales are recognized, using historical average calculations[211] - Costs to obtain a contract with a customer are generally expensed as incurred, particularly sales commissions with an amortization period of one year or less[212]

[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]

Core Insights - TOMI Environmental Solutions, Inc. has received a significant order from ARES Distribution for its SteraMist Integration System (SIS) platform, marking the fourth order for this product line [1][2] - The order is intended for a biomedical research university in Coral Gables, Florida, with an expedited delivery expected by late 2025 [2] - The COO of TOMI emphasized the importance of innovation and collaboration in the sterilization technology sector, highlighting the insights gained from each project to optimize workflow and automation capabilities [3] Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its Binary Ionization Technology® (BIT™) platform, which employs low percentage hydrogen peroxide as the active ingredient [3] - The company's products are designed for a wide range of environments, including hospitals, biosafety labs, pharmaceutical facilities, and various commercial settings [3]

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]

Core Insights - TOMI Environmental Solutions, Inc. has been awarded the "Disinfection and Decontamination Products Company of the Year 2025" by MedTech Outlook, showcasing its commitment to excellence and customer trust in its SteraMist iHP technology [1][2][3] Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its proprietary Binary Ionization Technology® (BIT™) platform, which employs a low percentage of hydrogen peroxide as the active ingredient [4] - The SteraMist systems incorporate patented ionized Hydrogen Peroxide (iHP™) technology, providing superior disinfection across various sectors, including healthcare, pharmaceuticals, and food processing [4] Recognition and Commitment - The award selection involved an expert panel of C-level executives and industry leaders, affirming SteraMist's leadership in the disinfection and decontamination market for 2025 [2] - The CEO of TOMI expressed gratitude for the recognition, emphasizing the company's dedication to advancing its iHP technology and exceeding customer expectations globally [3]

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]

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 increased to $1,577,000, up from $1,114,000 in the first quarter of 2024, representing a 42% increase driven by heightened demand for bit solutions, mobile systems, and IHP corporate services [11] - Product-based revenues totaled $1,000,000 in Q1 2025, reflecting a 35% growth compared to Q1 2024, while service revenues generated $577,000, a 56% increase from the same prior year period [11] - Gross margin as a percentage of sales for the three months ended March 31, 2025, was 60.4%, compared to 60.2% in the same prior year period [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] Business Line Data and Key Metrics Changes - BIT solution sales reached approximately $300,000, marking nearly a 200% increase from just over $100,000 in the first quarter of last year [12] - The company experienced a 169% surge in BIT solution sales year-to-date compared to the same period last year [6] - The increase in sales was attributed to new service offerings launched in February 2024 and collaborations with partners [6][8] Market Data and Key Metrics Changes - The company welcomed several new customers, including a new division of the US Army and a children's hospital in Philadelphia, indicating expansion into new markets [8] - The open sales log increased from approximately $877,000 at the end of 2024 to $1,600,000 by the end of Q1 2025, reflecting growing demand [10] Company Strategy and Development Direction - The company is focused on expanding customer outreach through targeted marketing initiatives and strategic partnerships to sustain growth in consumable BIT solution sales [7] - There is a commitment to educating the market on the importance of protective disinfection through the SteraMist Pro certified program [7] - The company anticipates a positive trend in sales throughout the year for BIT solutions, equipment services, and custom designs [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining sales momentum and highlighted significant progress made in Q1 2025 [5][24] - The company is actively negotiating $2,000,000 among five potential orders for custom engineered systems, indicating a strong pipeline for future growth [17] - Management noted that they are not experiencing problems with international sales due to tariffs and expect positive developments in government-related sales [28][29] Other Important Information - The company is enhancing its sales infrastructure by establishing new distribution channels and recruiting independent representatives [21] - There is ongoing work to finalize a new partnership that could make a customer the highest service customer for the IHP corporate service deployment [22] Q&A Session Summary Question: Do you have any financial goals for the year 2025 that you can share with us? - Management is confident that 2025 will be a great year and expects to improve on last year's numbers [26] Question: Do you anticipate any effects from the tariffs trade policy? - Management indicated that they are not having problems with international sales due to tariffs and are hopeful for a resolution soon [28] Question: Do you anticipate that government budget cuts will pose significant problems for TOMI? - Management believes that there will be an increase in government demand for their products, particularly in critical testing and studies [29] Question: Any new developments on food safety? - Management reported a surge in interest and requests for quotes related to food safety, indicating a growing market [31] Question: Any updates on SteraMist for prevention of bird flu transmission? - Management noted that there is increased interest in using their product for disinfection related to bird flu, although no significant developments were reported [33] Question: Any new developments on Ceramist as an ethylene oxide replacement? - Management confirmed ongoing negotiations with companies looking to replace ethylene oxide with Ceramist [34] Question: Was the order for treating pacemakers used in replacement of ethylene oxide? - Management clarified that the order was not a replacement but helped develop a new protocol for use [36] Question: Have you developed new ways to educate the market about your products? - Management launched the SteraMist Pro certified program to educate their entire customer base and distributors [38]