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. 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]