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].
TOMI Environmental Solutions(TOMZ) - 2025 Q1 - Quarterly Report