TOMI Chief Executive Officer, Dr.
“Subsequent to the close of the third quarter of 2023, we agreed to sell and issue convertible notes in a private placement in one or more closings up to an aggregate principal amount of
“We continue to focus on expanding our sales channels and have made good progress this year in expanding our sales infrastructure both internally and through external partnerships, which positions us well as we close the current year and head into 2024.
We’ll continue to look to further build out our sales team and expand business development initiatives. We anticipate improved financial results in the fourth quarter and in 2024.”
Financial Results for the Three Months Ended
- Total net revenue was
$1,470,000 compared to$1,760,000 . - Gross margin was 55% compared to 61%. The decrease in gross profit was attributable to product mix in sales.
- Operating loss was (
$901,000 ) compared to ($654,000 ). - Net loss was (
$901,000 ) or ($0.05 ) per basic and diluted share, compared to ($653,000 ) or ($0.03 ) per basic and diluted share. - Adjusted EBITDA was a loss of (
$807,000 ) compared to ($571,000 ). A table reconciling EBITDA to the appropriate GAAP financial measure is included with the Company’s financial information below.
Financial Results for the Nine Months Ended
- Total net revenue was
$5,827,000 compared to$5,527,000 . - Gross margin was 59% compared to 62%. The decrease in gross profit was attributable to product mix in sales.
- Operating loss was (
$2,178,000 ) compared to ($2,176,000 ). - Net loss was (
$2,177,000 ) or ($0.11 ) per basic and diluted share, compared to ($2,175,000 ) or ($0.11 ) per basic and diluted share. - Adjusted EBITDA was a loss of (
$1,746,000 ) compared to ($1,631,000 ). 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
$1.4 million . - Working capital was
$6.9 million . - Shareholders’ equity was
$9.5 million .
Recent Business Highlights:
- Revenue for the nine months ended
September 2023 was$5,827,000 , which represents over 5% growth when compared to the prior year period. - SteraMist iHP Service revenue grew 59% quarter over quarter for the three months ended
September 30, 2023 , compared to the same prior year period. - Subsequent to the close of the third quarter of 2023, we issued a convertible note with an aggregate principal amount of
$2,600,000 which will be used for working capital and other general corporate purposes. - Delivered three (3) applicator CES systems to
Ragon Institute of MGH ,MIT and Harvard for implementation in their research and clinical lab located inCambridge, MA. - Continued collaboration with Cellares to integrate SteraMist ionized Hydrogen Peroxide (iHP) technology into a revolutionary new cell therapy manufacturing solution, the Cell Shuttle, designed and produced by Cellares.
- Pfizer Rocky Mount engaged TOMI’s iHP service team to conduct emergency decontamination within their facility, which suffered substantial damage due to a tornado. TOMI continues to perform decontamination service twice a year at the Pfizer Rocky Mount facility.
- Partnered with
Colcom, Inc. to offer SteraMist iHP products as part of Colcom’s life sciences and healthcare portfolio of products.Colcom, Inc. is a trusted supplier of high-quality clinical and laboratory equipment with an established customer base and extensive expertise in the decontamination industry. - Entered into an agreement with
Patty Olinger , the Founder ofBEAMS, LLC who specializes in Public Health Preparedness. Patty is also aDirector of Frontline Foundation dedicated to protecting American citizens from bioterror threats. In the past she was Assistant Vice President of theOffice of Research Administration , and Executive Director ofEnvironmental Health andSafety Office of Emory University Hospital System and most recently the Executive Director ofGlobal Biorisk Advisory Council , a division of ISSA. Patty will assist in strengthening and expanding the TOMI SteraMist Network and increasing business development in the commercial market.Patty Olinger brings over 20 years’ experience establishing executive strategic vision and direction of large institutions and companies spanning multiple industries, including higher education, not-for-profit, healthcare, consultancy, hospitality, and pharmaceutical sectors. - Entered into a sales representative agreement with Universal Disinfection to better facilitate growth in the European region in the commercial, aviation, and life science markets.
- Entered into a business development consulting agreement with
DAR, Inc. , a company specializing in food safety and food processing spaces, to expand TOMI’s sales channels and customer bases in the food safety markets. - Introduced two new products, the SteraMist Hybrid and
SteraMist Transport , to support superior disinfection decontamination solutions for our growing customer base. - Completed a study funded by the
United States Department of Agriculture (USDA) and theNational Institute of Food and Agriculture (NIFA) which demonstrated SteraMist iHP as an effective treatment of deformed wing virus (DWV) contaminated hive substrates. - Attended and presented our SteraMist brand of products at the following tradeshows:
The Experience Convention and Tradeshow ,National Cancer Institute/Frederick Lab – Tech Showcase, NCAB AALAS Seminar, OR Manager,EMS World and Vizient Connections Summit.
Conference Call Information
TOMI will hold a conference call to discuss Third Quarter 2023 results at
To participate in the call by phone, dial (877) 545-0523 approximately five minutes prior to the scheduled start time and reference the participant access code 618115 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 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 | $ | 1,410,697 | $ | 3,866,733 | |||
Accounts Receivable - net | 2,368,043 | 2,772,340 | |||||
Other Receivables | 164,150 | 164,150 | |||||
Inventories | 4,481,644 | 4,495,999 | |||||
Vendor Deposits | 89,860 | 447,052 | |||||
Prepaid Expenses | 442,303 | 388,359 | |||||
Total Current Assets | 8,956,697 | 12,134,633 | |||||
Property and Equipment – net | 1,138,287 | 1,335,331 | |||||
Other Assets: | |||||||
Intangible Assets – net | 1,014,416 | 1,025,736 | |||||
Operating Lease - Right of Use Asset | 483,884 | 528,996 | |||||
Other Assets | 596,164 | 475,103 | |||||
Total Other Assets | 2,094,464 | 2,029,835 | |||||
Total Assets | $ | 12,189,448 | $ | 15,499,799 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 1,248,936 | $ | 1,761,750 | |||
Accrued Expenses and Other Current Liabilities | 674,367 | 728,703 | |||||
Deferred Revenue | - | 699,732 | |||||
Current Portion of Long-Term Operating Lease | 112,460 | 100,282 | |||||
Total Current Liabilities | 2,035,763 | 3,290,467 | |||||
Long-Term Liabilities: | |||||||
Long-Term Operating Lease, Net of Current Portion | 672,510 | 761,132 | |||||
Total Long-Term Liabilities | 672,510 | 761,132 | |||||
Total Liabilities | 2,708,273 | 4,051,599 | |||||
Commitments and Contingencies | - | - | |||||
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 | (48,600,495 | ) | (46,423,637 | ) | |||
Total Shareholders’ Equity | 9,481,175 | 11,448,200 | |||||
Total Liabilities and Shareholders’ Equity | $ | 12,189,448 | $ | 15,499,799 | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
For The Three Months Ended | For The Nine Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Sales, net | $ | 1,470,019 | $ | 1,759,620 | $ | 5,826,890 | $ | 5,526,598 | |||||||||
Cost of Sales | 661,087 | 688,633 | 2,376,442 | 2,113,624 | |||||||||||||
Gross Profit | 808,932 | 1,070,987 | 3,450,448 | 3,412,974 | |||||||||||||
Operating Expenses: | |||||||||||||||||
Professional Fees | 207,673 | 106,411 | 456,518 | 391,737 | |||||||||||||
Depreciation and Amortization | 93,929 | 82,619 | 273,265 | 247,662 | |||||||||||||
Selling Expenses | 283,054 | 365,054 | 1,160,752 | 1,271,788 | |||||||||||||
Research and Development | 76,339 | 118,182 | 220,587 | 254,608 | |||||||||||||
Consulting Fees | 44,355 | 43,012 | 188,722 | 145,757 | |||||||||||||
General and Administrative | 1,004,618 | 1,009,229 | 3,328,726 | 3,277,485 | |||||||||||||
Total Operating Expenses | 1,709,968 | 1,724,507 | 5,628,570 | 5,589,037 | |||||||||||||
Loss from Operations | (901,036 | ) | (653,520 | ) | (2,178,122 | ) | (2,176,063 | ) | |||||||||
Other Income (Expense): | |||||||||||||||||
Interest Income | 256 | 370 | 1,264 | 1,048 | |||||||||||||
Total Other Income (Expense) | 256 | 370 | 1,264 | 1,048 | |||||||||||||
Loss before income taxes | (900,780 | ) | (653,150 | ) | (2,176,858 | ) | (2,175,015 | ) | |||||||||
Provision for Income Taxes (Note 16) | - | - | - | - | |||||||||||||
Net Loss | $ | (900,780 | ) | $ | (653,150 | ) | $ | (2,176,858 | ) | $ | (2,175,015 | ) | |||||
Net income (loss) Per Common Share | |||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.11 | ) | |||||
Diluted | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.11 | ) | |||||
Basic Weighted Average Common Shares Outstanding | 19,823,955 | 19,758,520 | 19,818,241 | 19,736,666 | |||||||||||||
Diluted Weighted Average Common Shares Outstanding | 19,823,955 | 19,758,520 | 19,818,241 | 19,736,666 | |||||||||||||
The following is a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA:
For The Three Months Ended | For The Nine Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net income (loss) | $ | (900,781 | ) | $ | (653,150 | ) | $ | (2,176,859 | ) | $ | (2,175,015 | ) | |||||
Interest Income | (256 | ) | (370 | ) | (1,264 | ) | (1,048 | ) | |||||||||
Depreciation and Amortization | 93,929 | 82,619 | 273,265 | 247,662 | |||||||||||||
Other | - | - | - | - | |||||||||||||
EBITDA (Loss) | $ | (807,108 | ) | $ | (570,901 | ) | $ | (1,904,858 | ) | $ | (1,928,401 | ) | |||||
Equity Compensation Expense | - | - | 158,833 | 297,766 | |||||||||||||
Other | - | - | - | - | |||||||||||||
Adjusted EBITDA (Loss) | $ | (807,108 | ) | $ | (570,901 | ) | $ | (1,746,025 | ) | $ | (1,630,635 | ) | |||||
Net revenue | $ | 1,470,019 | $ | 1,759,620 | $ | 5,826,890 | $ | 5,526,598 | |||||||||
Adjusted EBITDA Margin | -55 | % | -32 | % | -30 | % | -30 | % |
INVESTOR RELATIONS CONTACT:
IMS Investor Relations
tomi@imsinvestorrelations.com
Source:
2023 GlobeNewswire, Inc., source