TOMI Chief Executive Officer, Dr.
“There has been a heavy focus placed on building sales partnerships and expanding distribution channels and we are excited with the progress made thus far in 2023. We added new distributors in
“We believe our second quarter results have us back on track and establish momentum for us heading into the second half of 2023. Given our current sales pipeline, the strength of our high margin business model and high profitability on incremental revenues, at this point in time we believe that we may attain profitability in the fourth quarter. We remain focused on executing our strategies to grow revenues, expand our sale network and deliver improved results and values for our shareholders.”
Financial Results for the Three Months Ended
- Total net revenue was
$2,775,000 compared to$1,458,000 , representing an increase of$1,317,000 or 90%. The increase in revenue was largely due to strong growth in our product and service revenue in the current year period as well as our internal team’s ability to execute and deliver two iHP SteraMist Custom Engineered Systems (CES) in the second quarter. - Gross margin was 61% compared to 63%. The decrease in gross profit was attributable to product mix in sales.
- Operating loss was (
$89,000 ) compared to ($863,000 ). The decline in our loss from operations was attributable to higher sales and gross profit in the current year period. - Net loss was (
$89,000 ) or ($0.00 ) per basic and diluted share, compared to ($862,000 ) or ($0.04 ) per basic share. - Adjusted EBITDA was
$2,000 compared to a loss of ($780,000 ) in the same prior year period. A table reconciling EBITDA to the appropriate GAAP financial measure is included with the Company’s financial information below.
Financial Results for the Six Months Ended
- Total net revenue was
$4,357,000 compared to$3,767,000 , representing an increase of$590,000 or 16%. The increase in revenue was attributable to growth in our product and service revenue. - Gross margin was 61% compared to 62%. The decrease in gross profit was attributable to product mix in sales.
- Operating loss was (
$1,277,000 ) compared to ($1,523,000 ). The decline in our loss from operations was attributable to higher sales and gross profit in the current year period. - Net loss was (
$1,276,000 ) or ($0.06 ) per basic and diluted share, compared to ($1,522,000 ) or ($0.08 ) per basic share. - Adjusted EBITDA was a loss of (
$939,000 ) compared to ($1,060,000 ). A table reconciling EBITDA to the appropriate GAAP financial measure is included with the Company’s financial information below.
Balance sheet highlights as of
- Cash and cash equivalents were approximately
$1.6 million . - Working capital was
$7.8 million . - Shareholders’ equity was
$10.4 million .
Recent Business Highlights:
- 100% growth quarter over quarter in SteraMist product revenues for the three months ended
June 30, 2023 , compared to the same to the same prior year period. - 55% growth quarter over quarter in SteraMist iHP Service revenue for the three months ended
June 30, 2023 , compared to the same to the same prior year period. - 116% growth in second quarter domestic revenue, when compared to the same prior year period.
- 75% growth in 2023 second quarter sales compared to the first quarter of 2023.
- Delivered an eleven (11) applicator CES system to Avid Bioservices, Inc. (Avid) for implementation in Avid’s new purpose-built viral vector development and manufacturing facility in
Costa Mesa, California . - Announced Collaboration with Cellares to integrate our SteraMist ionized Hydrogen Peroxide (iHP) technology into a revolutionary new cell therapy manufacturing solution, the Cell Shuttle, designed and produced by Cellares.
- Entered into a distributor agreement with Avantor, a Fortune 500 company and a leading supplier of mission-critical products and services. We expect the distributor agreement to expand our sales channels into the vital research, development, and production activities in the biopharma, healthcare, education, government, and advanced technologies and applied materials industries.
- Expanded our presence in
Europe with the addition of International Business Development (I.B.D.) as a distributor inItaly . - Entered into a contract with
Vizient, Inc. increasing our presence in theU.S. healthcare system.Vizient is the largest group purchasing organization (GPO) in the healthcare industry supplying around$100 billion in annual member purchasing volume.Vizient serves approximately 97% of the nation’s Academic Medical Centers, more than 50% of the nation’s acute care health system, and serves more than 20% of the nation’s ambulatory market. - Completion of a study conducted in accordance with the
U.S. Department of Defense (DoD ) Biological Select Agents and Toxins (BSAT) Biorisk Program Office (BBPO) which demonstrated SteraMist iHP as an effective technology for decontamination of biological toxoids. - Attended and presented our SteraMist brand of products at the following tradeshows,
AORN Global Surgical Conference ,Controlled Environment Testing Association (CETA) International ,Restoration Industry Association (RIA) International , Lab Manager Leadership Summit,FDIC International , Interphex, Food Safety Summit, and Florida International Medical Expo (FIME). - SteraMist technology was recognized as one of the Top 10 Infection Solution Providers of 2023 in the recent infection control solutions special edition.
Conference Call Information
TOMI will hold a conference call to discuss Second Quarter 2023 results at
To participate in the call by phone, dial (877) 545-0320 approximately five minutes prior to the scheduled start time and reference the participant access code 559024 or request the "
A replay of the teleconference will be available until
TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®
TOMI™ Environmental Solutions, Inc. (NASDAQ:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform. Invented under a defense grant in association with the
TOMI products are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.
TOMI develops training programs and application protocols for its clients and is a member in good standing with
For additional information, please visit http://www.tomimist.com/ or contact us at info@tomimist.com.
Forward-Looking Statements
This press release contain forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, expected sales pipeline; financial performance and operating results for 2023; upcoming launch of new products; expected growth in sales and market demand; revenue opportunities of CES products and brand recognition of our products. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business and customers; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 1,574,088 | $ | 3,866,733 | |||
Accounts Receivable - net | 3,379,150 | 2,772,340 | |||||
Other Receivables | 164,150 | 164,150 | |||||
Inventories | 4,412,786 | 4,495,999 | |||||
Vendor Deposits | 203,459 | 447,052 | |||||
Prepaid Expenses | 291,224 | 388,359 | |||||
Total Current Assets | 10,024,857 | 12,134,633 | |||||
Property and Equipment – net | 1,238,241 | 1,335,331 | |||||
Other Assets: | |||||||
Intangible Assets – net | 1,018,189 | 1,025,736 | |||||
Operating Lease - Right of Use Asset | 499,369 | 528,996 | |||||
Capitalized Software Development Costs - net | - | - | |||||
Other Assets | 565,540 | 475,103 | |||||
Total Other Assets | 2,083,098 | 2,029,835 | |||||
Total Assets | $ | 13,346,196 | $ | 15,499,799 | |||
| | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 1,360,438 | $ | 1,761,750 | |||
Accrued Expenses and Other Current Liabilities | 646,130 | 728,703 | |||||
Deferred Revenue | 146,381 | 699,732 | |||||
Current Portion of Long-Term Operating Lease | 109,318 | 100,282 | |||||
Total Current Liabilities | 2,262,267 | 3,290,467 | |||||
Long-Term Liabilities: | |||||||
Long-Term Operating Lease, Net of Current Portion | 701,974 | 761,132 | |||||
Total Long-Term Liabilities | 701,974 | 761,132 | |||||
Total Liabilities | 2,964,241 | 4,051,599 | |||||
Shareholders’ Equity: | |||||||
Cumulative Convertible Series A Preferred Stock; | |||||||
par value | |||||||
and outstanding at | 638 | 638 | |||||
Cumulative Convertible Series B Preferred Stock; | |||||||
7.5% Cumulative dividend; 4,000 shares authorized; none issued | |||||||
and outstanding at | - | - | |||||
Common stock; par value | |||||||
19,823,955 and 19,763,855 shares issued and outstanding | |||||||
at | 198,240 | 197,640 | |||||
57,882,792 | 57,673,559 | ||||||
Accumulated Deficit | (47,699,715 | ) | (46,423,637 | ) | |||
Total Shareholders’ Equity | 10,381,955 | 11,448,200 | |||||
Total Liabilities and Shareholders’ Equity | $ | 13,346,196 | $ | 15,499,799 | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
For The Three Months Ended | For The Six Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Sales, net | $ | 2,774,699 | $ | 1,458,395 | $ | 4,356,871 | $ | 3,766,978 | |||||||||
Cost of Sales | 1,074,420 | 537,103 | 1,715,355 | 1,424,991 | |||||||||||||
Gross Profit | 1,700,279 | 921,292 | 2,641,516 | 2,341,987 | |||||||||||||
Operating Expenses: | |||||||||||||||||
Professional Fees | 111,660 | 94,796 | 248,845 | 285,326 | |||||||||||||
Depreciation and Amortization | 90,560 | 82,751 | 179,336 | 165,043 | |||||||||||||
Selling Expenses | 501,045 | 565,945 | 877,698 | 906,734 | |||||||||||||
Research and Development | 73,728 | 99,350 | 144,248 | 136,426 | |||||||||||||
Consulting Fees | 68,912 | 39,535 | 144,367 | 102,745 | |||||||||||||
General and Administrative | 943,314 | 901,632 | 2,324,108 | 2,268,256 | |||||||||||||
Total Operating Expenses | 1,789,219 | 1,784,009 | 3,918,602 | 3,864,530 | |||||||||||||
Income (loss) from Operations | (88,940 | ) | (862,717 | ) | (1,277,086 | ) | (1,522,543 | ) | |||||||||
Other Income (Expense): | |||||||||||||||||
Interest Income | 349 | 335 | 1,008 | 678 | |||||||||||||
Total Other Income (Expense) | 349 | 335 | 1,008 | 678 | |||||||||||||
Income (loss) before income taxes | (88,591 | ) | (862,382 | ) | (1,276,078 | ) | (1,521,865 | ) | |||||||||
Provision for Income Taxes | - | - | - | - | |||||||||||||
Net Income (loss) | $ | (88,591 | ) | $ | (862,382 | ) | $ | (1,276,078 | ) | $ | (1,521,865 | ) | |||||
Net income (loss) Per Common Share | |||||||||||||||||
Basic | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.08 | ) | |||||
Diluted | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.08 | ) | |||||
Basic Weighted Average Common Shares Outstanding | 19,823,955 | 19,717,919 | 19,815,336 | 19,703,012 | |||||||||||||
Diluted Weighted Average Common Shares Outstanding | 19,823,955 | 19,717,919 | 19,815,336 | 19,703,012 | |||||||||||||
The following is a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA:
For The Three Months Ended | For The Six Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net income (loss) | $ | (88,591 | ) | $ | (862,382 | ) | $ | (1,276,078 | ) | $ | (1,521,865 | ) | |||||
Interest Income | (349 | ) | (335 | ) | (1,008 | ) | (678 | ) | |||||||||
Depreciation and Amortization | 90,560 | 82,751 | 179,336 | 165,043 | |||||||||||||
Other | - | - | - | - | |||||||||||||
EBITDA (Loss) | $ | 1,620 | $ | (779,966 | ) | $ | (1,097,750 | ) | $ | (1,357,500 | ) | ||||||
Equity Compensation Expense | - | - | 158,833 | 297,766 | |||||||||||||
Other | - | - | - | - | |||||||||||||
Adjusted EBITDA (Loss) | $ | 1,620 | $ | (779,966 | ) | $ | (938,917 | ) | $ | (1,059,734 | ) | ||||||
Net revenue | $ | 2,774,699 | $ | 1,458,395 | $ | 4,356,871 | $ | 3,766,978 | |||||||||
Adjusted EBITDA Margin | 0 | % | -53 | % | -22 | % | -28 | % | |||||||||
INVESTOR RELATIONS CONTACT:
IMS Investor Relations
tomi@imsinvestorrelations.com
Source:
2023 GlobeNewswire, Inc., source