TOMI Environmental Solutions(TOMZ) - 2024 Q4 - Earnings Call Transcript

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$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$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] 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] - Plans to nurture the pipeline of CES hybrid and SIS sales to positively impact revenue in 2025 and beyond [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][16] - 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 EPA labels to support growth within the cannabis and food safety industries [69] Q&A Session Summary Question: Revenue guidance for the year and margin information - Management indicated that margins should remain around current levels and expects additional wins to follow throughout the year [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 to address opportunities - Management is looking to raise funds and believes current cash levels, along with accounts receivable, will be sufficient [102] Question: Status of FDA ruling for 1% solution for food products - Management stated it is hard to predict due to changes within 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]