Financial Data and Key Metrics Changes - In Q2 2025, total recognized revenue was approximately $1,000,000, a decline of 66% from $3,000,000 in Q2 2024, primarily due to customers deferring capital expenditure projects [14] - Service revenue for the quarter was $378,000, representing a 33% increase year-over-year, while service revenue for the first six months reached $955,000, a 299% increase [15] - Gross margin improved to 66% in Q2 2025, up from 62% in the same quarter last year, attributed to a favorable product mix [15] Business Line Data and Key Metrics Changes - Service revenue from IHP service deployments and validation support services grew by 33% compared to the same period last year and by 46% over the first six months [8] - BIT solution sales saw a 40% increase year-to-date, with expectations for continued growth due to repeat orders [10] - The company has a sales order backlog of approximately $4,600,000, with active projects scheduled for delivery in 2025 [7] Market Data and Key Metrics Changes - The company is negotiating approximately $2,000,000 in new custom and integrated contracts, with bids expected to close before year-end [7] - Open opportunities for three product offerings total approximately $15,000,000, with $7,000,000 designated as high priority [7] - The USDA increased its usage of SteraMist in Q2 2025, indicating growing market acceptance [12] Company Strategy and Development Direction - The company is focused on expanding customer outreach through targeted marketing strategies and strategic partnerships [9] - There is an emphasis on educating the market about proactive disinfection through the SteriMist Pro certified program [10] - The company aims to enhance its infrastructure by strengthening personnel in management and expanding its global distributor network [28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining a positive trajectory for the remainder of 2025, despite challenges faced in Q2 [6] - The company anticipates significant orders from large companies as new manufacturing plants are built in the U.S. [38] - Management is hopeful that upcoming regulatory approvals will significantly impact growth [29] Other Important Information - The company was recognized as the Disinfection, Decontamination, and Disinfection Product Company of the Year for 2025 [12] - The company is developing a scalable solution to replace outdated methods in collaboration with the U.S. Army Medical Research Institute of Infectious Diseases [21] - There is a strong pipeline of international partnerships in Europe, with pending approvals expected soon [23] Q&A Session Summary Question: Can you provide margins realized in solution sales compared to the rest of the business? - Management expressed excitement about solution sales, noting high margins and an increase in gross margins to 66% this quarter [33] Question: What opportunities arise from the strategy to bring back pharma manufacturing to the U.S.? - Management highlighted that high regulatory standards present opportunities for significant orders from large companies as new facilities are built [38] Question: Have any customers that deferred CapEx projects notified you about moving ahead? - Management indicated a significant increase in customer deposits and confirmed that at least two customers are expected to proceed with projects in 2026 [41] Question: Can you describe how SteraMist would be used if FDA approvals are obtained? - Management detailed ongoing FDA approval processes for medical devices and food safety applications, emphasizing the potential for expanded market opportunities [43][44] Question: Any new uses developed for SteraMist? - Management mentioned ongoing internal tests for new applications, including extending the shelf life of flowers, but noted hurdles to overcome before entering new industries [46]

Financial Results - For Q2 2025, net sales were $1,031,000, a decrease from $3,013,000 in Q2 2024, reflecting a decline in product sales due to deferred capital expenditures by customers [5][22] - For the first half of 2025, net sales were $2,608,000, down from $4,127,000 in the same period of 2024 [5][22] - Gross profit margin improved to 66% in Q2 2025, compared to 62% in Q2 2024, attributed to a favorable product mix [5][22] - The company reported an operating loss of $(1,133,000) for Q2 2025, compared to an income of $122,000 in Q2 2024 [5][22] - Net loss for Q2 2025 was $(1,238,000) or $(0.06) per share, compared to a net income of $30,000 or $0.00 per share in Q2 2024 [5][22] Business Highlights - Service and training revenue increased by 33% year-over-year in Q2 2025 and by 46% in the first half of 2025, indicating strong demand for decontamination services [5][6] - SteraMist solution sales rose by 40% year-over-year for the first half of 2025 [5] - The company achieved nearly 20% of Q2 revenue from international markets, demonstrating ongoing global expansion [5][6] Strategic Initiatives - The company is focused on expanding recurring service contracts and exploring new product lines to generate steady income [12] - Plans to strengthen the corporate team and expand talent in key areas such as sales and customer support are underway [9] - The company is negotiating approximately $2 million in new custom and integrated contracts, with bids expected to close before year-end [5] Leadership and Recognition - David Vanston was appointed as Chief Financial Officer in May 2025, bringing extensive experience to support growth and capital strategy [7] - The company received the "Disinfection and Decontamination Products Company of the Year" award by MedTech Outlook in June 2025, highlighting its commitment to excellence [6] Liquidity and Capital Access - As of June 30, 2025, the company had working capital of $2.8 million, with cash used in operations improving by over $1 million compared to the prior year [8] - The company completed a $435,000 convertible note financing in the first half of 2025 to support growth initiatives [8]

Core Insights - TOMI Environmental Solutions, Inc. has received significant purchase orders from a leading company in eye health, indicating strong demand for its disinfection solutions [1][4] - The total expected purchases from this customer for 2025 are approximately $385,000, which includes SteraMist iHP equipment, BIT Solution, and support services [4] Group 1: Purchase Orders and Customer Engagement - A customer placed an initial order for multiple Surface Units and disinfection carts for its South Carolina facility earlier in the year, followed by a second order for the Florida facility in Q3 2025 [2] - The successful completion of the South Carolina validation package demonstrates the effectiveness of TOMI's surface treatment solutions [2][3] Group 2: Technology and Competitive Advantage - The FDA has highlighted the need for complete decontamination of hard-to-clean equipment, which TOMI's SteraMist technology addresses effectively [3] - SteraMist has successfully passed trials against Geobacillus stearothermophilus spores, showcasing the reliability of its iHP technology [3] Group 3: Company Overview and Product Offering - TOMI Environmental Solutions specializes in disinfection and decontamination, utilizing its Binary Ionization Technology (BIT) platform, which employs low percentage hydrogen peroxide as the active ingredient [5] - The company's products are designed for a wide range of applications, including hospitals, biosafety labs, pharmaceutical facilities, and more [5]

Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its proprietary Binary Ionization Technology (BIT) platform [4] - The BIT solution employs a low percentage of hydrogen peroxide as its active ingredient, enhanced by patented ionized Hydrogen Peroxide (iHP) technology [4] - TOMI's products cater to a wide range of sectors, including hospitals, biosafety labs, pharmaceutical facilities, schools, and more [4] Financial Reporting - TOMI will report its second-quarter results for the period ending June 30, 2025, after the market closes on August 14, 2025 [1] - A conference call to discuss these results will take place at 4:30 p.m. ET on the same day [1] Participation Details - Participants can join the conference call by dialing (888) 506-0062 or (973) 528-0011 for international callers, using access code 838858 [2] - A replay of the teleconference will be available until August 28, 2025, with access codes provided for both domestic and international callers [3]

Core Insights - TOMI Environmental Solutions, Inc. has received a significant order from ARES Distribution for its SteraMist Integration System (SIS) platform, marking the fourth order for this product line [1][2] - The order is intended for a biomedical research university in Coral Gables, Florida, with an expedited delivery expected by late 2025 [2] - The COO of TOMI emphasized the importance of innovation and collaboration in the sterilization technology sector, highlighting the insights gained from each project to optimize workflow and automation capabilities [3] Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its Binary Ionization Technology® (BIT™) platform, which employs low percentage hydrogen peroxide as the active ingredient [3] - The company's products are designed for a wide range of environments, including hospitals, biosafety labs, pharmaceutical facilities, and various commercial settings [3]

Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, focusing on the life sciences sector with its SteraMist Integration System – Standalone (SIS-SA) [1][4] - The company utilizes its proprietary Binary Ionization Technology® (BIT™) platform, which employs ionized Hydrogen Peroxide (iHP™) for superior disinfection [5] Industry Insights - The life science sterility testing market is projected to grow to $3.4 billion by 2031, with a compound annual growth rate (CAGR) of 12.4%, driven by increased demand for pharmaceutical and biotechnology products and stricter regulatory standards [2][4] - Aseptic isolators are becoming increasingly critical as life sciences organizations aim to meet stringent regulatory requirements for sterile drug production [2] Product Development and Market Position - The first installation of the SIS-SA system marks a significant milestone for TOMI, indicating the company's commitment to expanding its presence in the life sciences industry [4] - A leading pharmaceutical CDMO has adopted TOMI's SteraMist iHP technology, indicating growing acceptance and investment in TOMI's solutions within the industry [3][4] - The company anticipates generating over half a million dollars in revenue from the SIS-SA product in fiscal 2025, reflecting strong market demand [4]

Core Insights - TOMI Environmental Solutions, Inc. has been awarded the "Disinfection and Decontamination Products Company of the Year 2025" by MedTech Outlook, showcasing its commitment to excellence and customer trust in its SteraMist iHP technology [1][2][3] Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its proprietary Binary Ionization Technology® (BIT™) platform, which employs a low percentage of hydrogen peroxide as the active ingredient [4] - The SteraMist systems incorporate patented ionized Hydrogen Peroxide (iHP™) technology, providing superior disinfection across various sectors, including healthcare, pharmaceuticals, and food processing [4] Recognition and Commitment - The award selection involved an expert panel of C-level executives and industry leaders, affirming SteraMist's leadership in the disinfection and decontamination market for 2025 [2] - The CEO of TOMI expressed gratitude for the recognition, emphasizing the company's dedication to advancing its iHP technology and exceeding customer expectations globally [3]

Core Insights - TOMI Environmental Solutions, Inc. reported a 42% increase in revenue for Q1 2025 compared to the previous quarter, driven by strong demand for its product lines and recurring solution sales [2][3] - The company achieved a gross margin of 60.4%, slightly up from 60.2% in the prior year, and reduced its operating loss to $(754,000) from $(1,226,000) year-over-year [6] - Net loss decreased to $(256,000) or $(0.01) per share, compared to $(1,310,000) or $(0.07) per share in the same period last year [6] Financial Performance - Net sales for Q1 2025 were $1,577,000, up from $1,114,000 in Q1 2024, marking a significant year-over-year growth [6] - SteraMist product-based revenues increased to $1,000,000 from $743,000, reflecting a $257,000 rise due to heightened demand for various SteraMist solutions [6] - Service-based revenue also grew by 56%, reaching $577,000 compared to $371,000 in the prior year [6] Market Trends and Business Development - Domestic revenue surged by 80% to $1,192,000 from $662,000, attributed to increased demand for solutions and services [6] - The sales backlog as of March 31, 2025, was $1,225,000, an increase of $348,000 from December 31, 2024 [6] - A significant contract was secured for a SteraMist iHP Custom Engineered System at a university in Rhode Island, valued at approximately $450,000 [6] Strategic Partnerships and Expansion - TOMI announced the deployment of SteraMist iHP technology at NASA Johnson Space Center, indicating expansion into the aerospace sector [6] - An OEM partnership with Pharma Biotech System Components was established to enhance the SteraMist Integrated System [6] - The company is expanding into aquaculture with a new partner, Algafeed, further diversifying its market reach [7]

Company Overview - TOMI Environmental Solutions, Inc. specializes in disinfection and decontamination solutions, utilizing its proprietary Binary Ionization Technology (BIT) platform [4] - The BIT solution employs a low percentage of hydrogen peroxide as its active ingredient, utilizing patented ionized Hydrogen Peroxide (iHP) technology for superior disinfection [4] - TOMI's products are applicable in various environments, including hospitals, biosafety labs, pharmaceutical facilities, schools, and commercial buildings [4] Financial Reporting - TOMI will report its first-quarter results for the period ending March 31, 2025, after the market closes on May 8, 2025 [1] - A conference call to discuss these results will be held at 4:30 p.m. ET on the same day [1] Participation Information - Participants can join the conference call by dialing (877) 545-0320 or (973) 528-0002 for international callers, using access code 616069 [2] - A replay of the teleconference will be available until May 22, 2025, with access codes provided for both domestic and international callers [3]

Financial Data and Key Metrics Changes - GAAP revenue increased to $7.739 million in 2024 from $7.355 million in 2023, driven by higher demand for mobile systems and IHP corporate service revenue [51] - Non-GAAP revenue was approximately $8 million, reflecting nearly a 6% increase over 2023 [52] - GAAP net loss was $4.477 million or $0.22 per share compared to a net loss of $3.403 million or $0.17 per share in the prior year [57] Business Line Data and Key Metrics Changes - Mobile equipment sales totaled approximately $3.8 million in 2024, reflecting a 23% growth compared to 2023 [54] - Service revenue generated around $2 million, a 23% increase from the previous year [54] - BIT solution sales reached approximately $900,000, marking a 9% growth [54] Market Data and Key Metrics Changes - The IHP corporate service division secured contracts extending through 2026, with a 42% increase in Q1 2025 compared to the same period last year [29] - Distribution arrangements resulted in 13 partners, leading to approximately $930,000 in sales for 2024 [27] - The company anticipates a $1 million pipeline with open proposals for 2025 in IHP corporate service deployment [65] Company Strategy and Development Direction - The company aims to expand the SteriMIST IHP brand globally and has established valuable partnerships in key markets [16] - Focus on enhancing sales infrastructure by establishing new distribution channels and recruiting independent representatives [59] - The company is committed to advancing healthcare initiatives and meeting regulatory requirements for medical devices [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, highlighting early successes in 2025 and a healthy pipeline [15] - The company is focused on returning to sustainable positive cash flow as soon as possible [50] - Management acknowledged challenges in the global food market but emphasized ongoing collaborations to address these issues [30] Other Important Information - The company has reduced R&D expenses by 41%, advertising and sales commissions by 17%, and consulting expenses by 20% in 2024 [48] - The company is actively pursuing new partnerships and expanding its market presence in regions like Panama, Nigeria, and Israel [64] - The SteriMIST Pro-Certified Program is expected to grow in membership by 2026, enhancing the utilization of SteriMIST products [72] Q&A Session Summary Question: Revenue guidance for the year and margin information - Management indicated that margins should remain around current levels and expressed confidence in the pipeline of projects for 2025 [85][89] Question: Impact of tariffs on the company - Management does not anticipate significant ramifications from the tariff situation at this time [100] Question: Adequacy of cash levels for upcoming opportunities - Management believes that with a planned raise and current accounts receivable, cash levels will be adequate to address opportunities [102] Question: Status of FDA rulings on 1% hydrogen peroxide for food applications - Management stated that it is difficult to predict the timeline for FDA rulings due to changes in regulatory agencies [110] Question: Modifications to SteriPak - Management confirmed that they are considering upgrades to surface units but are currently marketing the existing SteriPak [112]