TOMI Environmental Solutions(US:TOMZ)2025-11-14 21:30Financial 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].