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 September 30, 2023 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 59-1947 ...

TOMI Environmental Solutions, Inc. (NASDAQ:TOMZ) Q2 2023 Earnings Call Transcript August 11, 2023 4:30 PM ET Company Participants John Nesbett - IMS IR Dr. Halden Shane - CEO and Chairman E.J. Shane - COO Nick Jennings - CFO Conference Call Participants Todd Felte - AGES Financial Services John Nelson - Private Investor Operator Greetings. Welcome to the TOMI Environmental Solutions Incorporated Second Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. ...

Financial Performance - Net sales for the three months ended June 30, 2023, increased to $2.77 million, a 90.2% increase compared to $1.46 million for the same period in 2022[21]. - Gross profit for the six months ended June 30, 2023, was $2.64 million, up 12.8% from $2.34 million in the same period of 2022[21]. - The net loss for the three months ended June 30, 2023, was $88,591, a significant improvement compared to a net loss of $862,382 for the same period in 2022[21]. - For the six months ended June 30, 2023, the net loss was $1,276,078, an improvement from a net loss of $1,521,865 in the same period of 2022, representing a decrease of approximately 16%[29]. - Revenue for Q2 2023 was $2,775,000, representing a 90% increase or $1,300,000 compared to Q2 2022[126]. - Revenue for the first half of 2023 was $4,357,000, reflecting a 16% growth over the same period in the prior year[127]. - Loss from operations improved by 90% for Q2 2023 compared to the same period last year[128]. Assets and Liabilities - Total assets decreased to $13.35 million as of June 30, 2023, down from $15.50 million at the end of 2022, representing a decline of approximately 13.8%[15]. - Shareholders' equity decreased to $10.38 million as of June 30, 2023, down from $11.45 million at the end of 2022, reflecting a decline of approximately 9.3%[19]. - Cash and cash equivalents decreased to $1.57 million as of June 30, 2023, from $3.87 million at the end of 2022, a decline of about 59.3%[15]. - Total current liabilities decreased to $2.26 million as of June 30, 2023, down from $3.29 million at the end of 2022, a reduction of approximately 31.2%[17]. - Total inventories as of June 30, 2023, were $4,412,786, a slight decrease from $4,495,999 as of December 31, 2022[83]. - Property and equipment, net as of June 30, 2023, was $1,238,241, down from $1,335,331 as of December 31, 2022[85]. Revenue Breakdown - Total revenue for the three months ended June 30, 2023, was $2,775,000, a 90.4% increase from $1,458,000 in the same period of 2022[65]. - SteraMist product revenue for the three months ended June 30, 2023, was $2,272,000, compared to $1,134,000 in 2022, reflecting a 100.9% increase[65]. - Service and training revenue for the three months ended June 30, 2023, was $503,000, up from $324,000 in 2022, representing a 55.4% increase[65]. - Revenue from the United States for the three months ended June 30, 2023, was $2,602,000, compared to $1,206,000 in 2022, marking a 116.5% increase[66]. Expenses - Total operating expenses for the three months ended June 30, 2023, were $1.79 million, slightly up from $1.78 million in the same period of 2022[21]. - Research and development expenses for the three months ended June 30, 2023, were approximately $74,000, down from $99,000 in 2022, a decrease of 25.3%[79]. - Advertising and promotional expenses for the three months ended June 30, 2023, were approximately $142,000, a decrease from $158,000 in 2022, reflecting a 10.1% reduction[78]. - The company reported a depreciation and amortization expense of $179,336 for the six months ended June 30, 2023, compared to $165,043 for the same period in 2022, reflecting an increase of approximately 9%[29]. Cash Flow - Cash flow from operating activities resulted in a net cash used of $2,198,350 for the six months ended June 30, 2023, compared to $450,954 for the same period in 2022, indicating a significant increase in cash outflow[29]. - The ending cash and cash equivalents as of June 30, 2023, were $1,574,088, down from $4,800,408 at the end of June 30, 2022, reflecting a decrease of approximately 67%[31]. - Net cash used in operations for the first half of 2023 was approximately $2,198,000[200]. Market and Product Developments - The company launched its fourth generation SteraMist Environment System, which operates at 24 volts and features eight outputs, enhancing its efficiency and usability[150]. - The SteraMist BIT solution product line now includes five options, ranging from a 32-ounce bottle to a 55-gallon drum, supporting the company's razor/razor-blade business model[151]. - The company has established partnerships with domestic and international distributors to expand its market reach, including a distributor agreement with Avantor, a Fortune 500 company[140][138]. - The company is focusing on long-term projects and validations in the life sciences sector, with expectations for installations to materially impact results in 2023 and 2024[161]. - The company has maintained relationships with large pharmaceutical companies and has treated four BSL-3 research laboratories recently, indicating growth in its iHP service department[161]. Customer and Sales Insights - Three customers accounted for 57% of net revenue for Q2 2023, highlighting customer concentration risk[120]. - The company has received 15 orders for CES systems since the product launch, indicating strong market demand[134]. - The integration of TOMI's technology into the Cell Shuttle enhances decontamination capabilities, aligning with industry needs[132]. - The total recognized revenue and customer sales backlog for the three months ended June 30, 2023, was approximately $3,261,000, consisting of recognized revenue of $2,775,000 and a customer sales backlog of approximately $486,000[145]. Future Outlook - The company anticipates achieving profitability in Q4 2023, supported by strong second-quarter results[178]. - The company expects new product introductions to positively impact net sales, cost of sales, and operating expenses during the fiscal year[152]. - Recent studies demonstrated SteraMist's effectiveness in reducing microbial contamination in cannabis without affecting potency[195]. - The company is actively pursuing additional EPA registrations to enhance its market presence in the food safety sector[193].

Financial Data and Key Metrics Changes - For Q1 2023, consolidated net revenue was $1,582,000, down from $2,309,000 in Q1 2022, reflecting a decrease of approximately 31.5% [31] - Consolidated gross profit margin was 59.5%, compared to 61.4% in the prior year [31] - Consolidated operating loss increased to $1,188,000 from $660,000 year-over-year [31] - Consolidated net loss was $1,187,000 or $0.06 per share, compared to a net loss of $659,000 or $0.03 per share in the previous year [31] - Adjusted EBITDA was a loss of $941,000 compared to a loss of $280,000 in the prior year [31] Business Line Data and Key Metrics Changes - The recognized revenue for the quarter was $1,582,000, with a customer sales backlog of approximately $1,547,000, totaling around $3,129,000 [5] - Higher margin solution sales are growing, with recurring solution sales currently accounting for about 15% of total revenue, expected to increase as more CES systems are put into production [35][36] Market Data and Key Metrics Changes - The EPA's proposed reduction of ethylene oxide emissions by 80% at 86 commercial sterilization locations in the U.S. presents a significant market opportunity for TOMI's SteraMist products [6] - The company is expanding its distribution network, including partnerships with various medical and scientific suppliers, which is expected to enhance market reach [8][9] Company Strategy and Development Direction - The company is optimistic about improved financial results for the remainder of 2023, driven by an expanding sales backlog and distribution network [6] - TOMI is focusing on international expansion, particularly in Europe and Africa, to establish partnerships and increase sales [18][19] - The company is actively seeking to enhance its presence in the cannabis industry, with ongoing studies demonstrating the efficacy of SteraMist in eliminating contaminants [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in the second half of 2023, despite the lumpy nature of revenue recognition [37] - The company is working on multiple fronts to strengthen its market position, including expanding its product offerings and enhancing customer engagement [30] - Management highlighted the importance of ongoing studies and partnerships in driving future growth and revenue [13][19] Other Important Information - The company has launched a new website to improve customer engagement and reflect its mission [16] - TOMI is involved in various studies to prove the efficacy of its products against specific pathogens, which could lead to new market opportunities [13][16] Q&A Session Summary Question: What is the recurring revenue from the BIT solution? - Management indicated that margins on recurring solution sales are higher than typical, around 60%, with 15% of revenue attributed to these sales [34][35] Question: Will the company achieve profitability in 2023? - Management reaffirmed the goal of profitability in the second half of the year, citing strong expectations for improved performance [37] Question: How does the custom engineered systems business drive predictable sales? - Management explained that upfront equipment purchases lead to consistent solution usage, enhancing predictability in revenue [39] Question: Any updates on competition from LifeClean? - Management stated that there is no comparison between SteraMist and LifeClean's product, emphasizing SteraMist's superior efficacy and environmental safety [41][42] Question: What is the status of the shield study? - Management noted that the study is with the authors, and results are expected to be discussed in the next quarter [43] Question: Any progress with the large seed company? - Management confirmed positive progress in food safety testing and ongoing discussions with potential users [44] Question: Is the company comfortable with its current cash position? - Management expressed comfort with the cash position but emphasized the need for deposits from CES systems to improve cash flow [47]

Financial Performance - Net sales for Q1 2023 were $1.58 million, a decrease of 31.5% compared to $2.31 million in Q1 2022[18]. - Gross profit for Q1 2023 was $941,237, down 33.7% from $1.42 million in the same period last year[18]. - The net loss for Q1 2023 was $1.19 million, compared to a net loss of $659,484 in Q1 2022, indicating a 80.5% increase in losses year-over-year[21]. - Total revenue for Q1 2023 was $1,582,000, a decrease of $727,000 or 31% compared to Q1 2022 revenue of $2,309,000[196]. - Total operating expenses for Q1 2023 were $2,129,000, an increase of $48,000 from $2,081,000 in Q1 2022[193]. - Net loss for Q1 2023 was $1,187,000, compared to a net loss of $659,000 in Q1 2022, reflecting an increase in loss of $528,000[195]. Assets and Liabilities - Total assets decreased to $13.74 million as of March 31, 2023, down from $15.50 million at the end of 2022, representing a decline of approximately 11.2%[12][16]. - Cash and cash equivalents decreased to $2.47 million at the end of Q1 2023, down from $3.87 million at the end of 2022, a decline of 36.1%[24]. - Total current liabilities decreased to $2.53 million as of March 31, 2023, down from $3.29 million at the end of 2022, a reduction of 23.0%[14][16]. - Total shareholders' equity as of March 31, 2023, was $10,471,000, a decrease from $11,448,000 as of December 31, 2022[191]. Revenue Breakdown - SteraMist product revenue was $1,276,000 for Q1 2023, down from $1,886,000 in Q1 2022, representing a decline of 32.3%[63]. - Service and training revenue decreased to $306,000 in Q1 2023 from $423,000 in Q1 2022, a reduction of 27.7%[63]. - Revenue from the United States was $1,128,000 in Q1 2023, down from $1,879,000 in Q1 2022, reflecting a decline of 40%[63]. - International revenue for Q1 2023 was approximately $454,000, an increase of $24,000 or 6% compared to $430,000 in Q1 2022[201]. Expenses - Research and development expenses increased to $70,520 in Q1 2023, up 90.2% from $37,076 in Q1 2022[18]. - Total accrued expenses and other current liabilities decreased from $728,703 as of December 31, 2022, to $528,800 as of March 31, 2023, reflecting a reduction of approximately 27.4%[109]. - Professional fees decreased by approximately $54,000, or 28%, to $137,000 for the three months ended March 31, 2023, compared to $191,000 in the prior year[205]. - Selling expenses increased by approximately $36,000, or 11%, to $377,000 for the three months ended March 31, 2023, compared to $341,000 in the prior year[208]. Market and Product Development - The company continues to focus on expanding its market presence through its SteraMist® brand, which is actively used for COVID-19 decontamination[25]. - The company launched its fourth generation SteraMist Environment System, which features eight outputs and improved efficiency in hydrogen peroxide conversion[140]. - New product introductions are expected to positively impact net sales, cost of sales, and operating expenses during the fiscal year[142]. - The Food Safety division is poised for significant growth due to emerging challenges in food safety and compliance with new regulations, including the Food Safety Modernization Act[159]. Customer and Sales Information - Two customers accounted for 26% of net revenue for the three months ended March 31, 2023, compared to three customers accounting for 41% in the same period of 2022[115]. - Recognized revenue for the three months ended March 31, 2023, was approximately $1,582,000, with a customer sales backlog of approximately $1,547,000[135]. - The company added one independent manufacturing representative and five distributors in Q1 2023, expanding its sales channels and distribution networks[120]. Legal and Compliance - The company has no legal matters that would materially affect its financial condition or results of operations as of the reporting date[102]. - The provision for income tax for the three months ended March 31, 2023, was $0, with a valuation allowance of $5,664,000 for deferred tax assets not expected to be realized[112].

TOMI Environmental Solutions, Inc. (NASDAQ:TOMZ) Q4 2022 Results Conference Call March 16, 2023 4:30 PM ET Company Participants John Nesbett - IMS IR Dr. Halden Shane - CEO and Chairman E.J. Shane - COO Nick Jennings - CFO Conference Call Participants Sameer Joshi - H.C. Wainwright Operator Good afternoon, and welcome to the TOMI Environmental Fourth Quarter and Year-End 2022 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, John Nesbett from IMS In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 (State or other jurisdiction ...

TOMI Environmental Solutions, Inc. (NASDAQ:TOMZ) Q3 2022 Earnings Conference Call November 10, 2022 4:30 PM ET Company Participants John Nesbett - IMS Investor Relations Halden Shane - Chairman and CEO Conference Call Participants Sameer Joshi - H.C. Wainwright Operator Good day, everyone, and welcome to today's TOMI Environmental Solutions, Inc. Third Quarter 2022 Financial Results Conference Call. [Operator Instructions] It is now my pleasure to turn the conference over to John Nesbett of IMS Investor Rel ...

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 September 30, 2022 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) (State or other ...

Financial Data and Key Metrics Changes - In Q2 2022, TOMI Environmental Solutions closed $5.6 million in orders, representing a 35% growth in sales orders compared to the same period last year [9] - Revenue for the first half of 2022 grew by 6%, with mobile equipment demand increasing by 11% and 13% for the 3 and 6 months ended June 30, 2022 [10] - Operating expenses were reduced by 16% and 21% for the 3 and 6 months ended June 30, 2022, respectively, compared to the same prior year period [11] - Cash used in operations decreased by 82% for the first half of 2022 compared to the same prior year period [11] Business Line Data and Key Metrics Changes - The SteraMist product line saw robust interest, with $4.9 million of overall orders attributable to SteraMist product revenues [12] - The Custom Engineered System (CES) is a primary driver for growth, with ongoing orders and installations expected [8][25] - The company anticipates over $12 million in revenue for 2022, supported by a strong sales pipeline and new product developments [10][40] Market Data and Key Metrics Changes - The global disinfectant spray market is projected to reach USD 18.6 billion by 2030, expanding at a CAGR of 8.2% from 2022 to 2030 [13] - Demand for HAI control products is expected to rise significantly in ambulatory surgical care centers [13] - The company has expanded its customer base to 709 customers in 2022, up from 308 in 2019, indicating substantial growth [33] Company Strategy and Development Direction - TOMI is focusing on expanding its presence in the food safety industry, which is a multibillion-dollar market, and is actively pursuing registrations for direct food applications [17][47] - The company is developing new products and applications to enhance its competitive advantages in the decontamination industry [14][31] - There is a strong emphasis on increasing customer service and sales personnel to support growth and market penetration [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and potentially exceeding the $12 million revenue target for 2022 due to a strong pipeline and product demand [40][41] - The company is optimistic about its competitive position, noting that it does not see competitors winning significant projects [45] - Management highlighted the importance of educating potential customers about the technology to drive adoption and standardization in the market [66] Other Important Information - The company has improved its balance sheet significantly since 2019, with cash balance increasing to $4.8 million from $1.6 million [34] - TOMI has added over 10 new SteraMist products and expanded its IP portfolio with 28 new patents and 115 trademarks since 2019 [33] Q&A Session Summary Question: What gives confidence in achieving the $12 million annual outlook? - Management indicated that they are waiting for purchase orders on 3 and have 8 others in the final approval stages, with expectations for most to be fulfilled in the next two quarters [39][40] Question: Are the pending orders from repeat customers or new customers? - Many orders are from repeat large Fortune 500 pharmaceutical companies, indicating strong customer loyalty and satisfaction [43] Question: What is the outlook for expenses in the next 6 months? - Management noted that while there may be some increase in expenses due to growth, they expect revenue growth to outweigh the additional costs [42] Question: Any updates on the SHIELD study? - The SHIELD study is ongoing, with data being reviewed by independent researchers, and management is awaiting updates [58] Question: Has the relationship with ServiceMaster expanded? - Management indicated that they would need to research the specifics of the ServiceMaster relationship and would provide updates in future calls [60] Question: What plans are in place to increase awareness of the product? - Management is focused on hiring more customer service and sales personnel to enhance outreach and education about the technology [66]