TOMI Environmental Solutions(TOMZ) - 2025 Q3 - Quarterly Results

Revenue Performance - Revenues for Q3 2025 reached $2.0 million, reflecting a 95% sequential increase over Q2 2025, driven by higher equipment purchases and strong BIT™ Solution sales[6] - Net sales for the three months ended September 30, 2025, were $2,011,556, down 20.9% from $2,542,251 in the same period of 2024[27] - SteraMist solution sales increased by 21% year over year for the nine months ended September 30, 2025[6] Profitability and Margins - Gross profit margin remained strong at 61% for Q3 2025, consistent with the same period last year, indicating operational efficiency[6] - Gross profit for the nine months ended September 30, 2025, was $2,860,840, a decrease of 30.0% compared to $4,086,311 in 2024[27] - The company reported a net loss of $450,348 for the three months ended September 30, 2025, compared to a net income of $58,962 in the same period of 2024[27] Expenses and Liabilities - Operating expenses increased to $5,069,409 for the nine months ended September 30, 2025, compared to $5,041,873 in 2024, reflecting a rise of 0.5%[27] - The company incurred interest expenses of $130,339 for the three months ended September 30, 2025, compared to $93,620 in the same period of 2024, representing an increase of 39.2%[27] - Total liabilities increased from $5,594,799 in December 2024 to $5,838,709 in September 2025, an increase of approximately 4.4%[25] Shareholder Equity and Capital - Shareholders' equity decreased significantly from $4,098,939 in December 2024 to $2,206,482 in September 2025, a decline of about 46.1%[25] - As of September 30, 2025, the company had working capital of $2.5 million, with cash used in operations improving by approximately $876,000 compared to the same period in 2024[7] - An equity line of credit allows the company to sell up to $20 million of common stock over a 24-month period, enhancing financial flexibility[8] Market Presence and Future Outlook - International revenue accounted for nearly 36% of Q3 revenue, up from 20% in Q2 2025, highlighting the company's expanding global market presence[6] - The company's sales order backlog grew to $0.9 million at quarter-end and expanded to $1.3 million as of October 31, with approximately $3 million in pending contracts expected to close before year-end[6] - The potential demand for TOMI's product offerings is estimated at approximately $15 million, with $7 million designated as high priority[6] - The company expects to file a universal shelf registration statement allowing it to offer and sell securities up to $50 million, including the $20 million under the equity line of credit[9] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $139,380, down 25.0% from $185,923 in 2024[27] Installations and Product Development - The company completed major SteraMist® installations, including the first installation of the SteraMist Integration System – Standalone (SIS-SA) in the life sciences sector[6]