TOMI Environmental Solutions(US:TOMZ)2023-05-15 20:03Financial 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].