Attached files
| file | filename |
|---|---|
| 8-K - TOMI ENVIRONMENTAL SOLUTIONS, INC. 8-K - TOMI Environmental Solutions, Inc. | a50833547.htm |
Exhibit 99.1
TOMI™ Reports 107% Increase in Revenue for the Year Ended 2013
- Increased the use and subsequent sales of TOMI™’s patented BIT™ technology
- Added additional healthcare systems to TOMI™’s client base
- Expanded sales to the pharmaceutical and clean-room markets
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--March 28, 2014--TOMI™ Environmental Solutions, Inc. (“TOMI” or the “Company”) (OTCQB: TOMZ), a global bacteria and infectious disease control company with both end user and service provider clients, today reported an increase in revenue of 107% for the year ended December 31, 2013. The primary reason for the increase in revenue was attributable to: 1) completion of the bio-mass reduction and decontamination services at The Complejo Hospitalario Metropolitano in Panama City, Panama in 2013 amounting to $420,000 and 2) TOMI’s ability in 2013 to acquire and take control over the entire SteraMistTM product line, including manufacturing, which facilitated the Company having sufficient supply of product to fill orders as well as diversify its client base.
Net loss for the years ended December 31, 2013 and December 31, 2012 was approximately $5,658,000 and $1,750,000, respectively. Net loss per common share, basic and diluted, for the years ended December 31, 2013 and December 31, 2012 was ($0.07) and ($0.02), respectively. The primary reason for the net loss and net loss per share for the year ended December 31, 2013 can be attributed to non-cash charges of $3,782,000 comprising of: 1) non-cash charges of $349,000 related to the change in the fair value of the embedded conversion feature of our convertible notes; 2) non-cash charges of $3,199,000 related to the finance charge recorded in conjunction with the issuance of our $5,074,000 in convertible notes in relation to the acquisition of our BIT Technology; and 3) amortization of deferred finance costs of $234,000 related to the issuance of convertible notes.
Commenting on the Company’s operations, Dr. Halden Shane, TOMI’s Chief Executive Officer, stated, “We are thrilled with the growth that TOMI™ exhibited during 2013 and our strong finish of last year. During 2013, TOMI™ increased its sales and service in the healthcare sector. In addition, we continue to successfully penetrate other markets, including the pharmaceutical and clean-room markets. As our existing customers continue to increase their usage of our technology, and as new customers come on board, we have strong momentum going into 2014 and we remain enthusiastic about our sales and service pipeline.”
Highlights from the year ended December 31, 2013 as compared to the prior year include:
- Successfully acquired Binary Ionization Technology® (“BIT™”), as well as other assets, from L-3 Applied Technologies, Inc. (“L-3”) for $3,510,000;
- Was awarded and began, on October 1, 2013, a 36-month biomass reduction and decontamination services at The Complejo Hospitalario Metropolitano in Panama City, Panama;
- Increased the use and subsequent sales of TOMI™’s patented BIT™ technology under its existing decontamination programs with Sinai Hospital in Baltimore, Maryland, Northwest Hospital in Randallstown, Maryland, St. Mary’s in Philadelphia, Baptist Hospital in Little Rock, Arkansas, and Geisenger Medical Center in Danville, Pennsylvania;
- Added additional healthcare systems to the TOMI™ family including Union Memorial of MedStar Health and Springhill Medical. TOMI™ has already trained staff members at each of these hospitals in the use of our BIT™ technology;
- Expanded sales to the pharmaceutical and clean-room markets with sales of its Environment Unit to Six-Log, Controlled Contamination Services, Felder Services and Telstar Life Sciences along with RTI Biologicals;
- Current testing of its SteraMist™ technology in two major U.S. teaching hospitals, along with the Sperry Group -- each of which are in the process of completing peer review studies with results anticipated to be published within 18 months. Adding key members of the TOMI™ Executive team, including its President, Chief Operating Officer, Chief Financial Offer and Chief Regulatory Officer as well as other key employees; and
- Exhibited TOMI™’s Binary Ionization Technology® around the world at various conferences and symposiums.
|
TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEET |
|||||||||||
| ASSETS | |||||||||||
| Current Assets: |
December 31, |
December 31, 2012 |
|||||||||
| Cash and Cash Equivalents | $ | 706,350 | $ | 73,424 | |||||||
|
Cash – Restricted |
70,124 | - | |||||||||
| Accounts Receivable | 805,809 | 215,657 | |||||||||
|
Inventories |
407,549 | - | |||||||||
| Prepaid Expenses | 7,980 | 5,400 | |||||||||
| Total Current Assets | 1,997,812 | 294,481 | |||||||||
|
Property & Equipment – net |
164,068 | 47,906 | |||||||||
| Other Assets: | |||||||||||
|
Intangible Assets – net |
3,026,564 | - | |||||||||
|
Deferred Financing Costs – net |
542,116 | - | |||||||||
| Security Deposits | 2,543 | 500 | |||||||||
| Total Other Assets | 3,571,223 | 500 | |||||||||
| Total Assets | $ | 5,733,103 | $ | 342,887 | |||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY) |
|||||||||||
| Current Liabilities: | |||||||||||
| Accounts Payable and Accrued Expenses | $ | 383,349 | $ | 225,487 | |||||||
|
Accrued Interest on Convertible Notes |
211,194 | - | |||||||||
|
Accrued Officers Compensation |
25,000 | 5,000 | |||||||||
|
Common Stock to be Issued |
150,871 | - | |||||||||
| Loan Payable – Officer | - | 3,988 | |||||||||
| Customer Deposits | 14,105 | - | |||||||||
|
Derivative Liability |
7,665,502 | - | |||||||||
| Total Current Liabilities | 8,450,021 | 234,475 | |||||||||
|
Convertible Notes Payable, net of discount of $5,003,558 |
70,442 | - | |||||||||
| Total Long-term Liabilities | 70,442 | - | |||||||||
| Total Liabilities | 8,520,463 | 234,475 | |||||||||
| Commitments and Contingencies | - | - | |||||||||
| Stockholders’ Equity (Deficiency): | |||||||||||
| Cumulative Convertible Series A Preferred Stock; | |||||||||||
|
par value $0.01, 1,000,000 shares authorized; 510,000 shares issued |
|||||||||||
| and outstanding at December 31, 2013 and 2012 | 5,100 | 5,100 | |||||||||
| Cumulative Convertible Series B Preferred Stock; $1,000 stated value; | |||||||||||
| 7.5% Cumulative dividend; 4,000 shares authorized; none issued | |||||||||||
| and outstanding at December 31, 2013 and 2012 | - | - | |||||||||
| Common stock; par value $0.01, 200,000,000 shares authorized; | |||||||||||
| 79,867,217 and 75,455,585 shares issued and outstanding | |||||||||||
| at December 31, 2013 and December 31, 2012, respectively. | 798,672 | 754,555 | |||||||||
| Additional Paid-In Capital | 15,674,958 | 12,956,535 | |||||||||
| Accumulated Deficit | (19,266,090 | ) | (13,607,778 | ) | |||||||
| Total Stockholders’ Equity (Deficiency) | (2,787,360 | ) | 108,412 | ||||||||
| Total Liabilities and Stockholders’ Equity (Deficiency) | $ | 5,733,103 | $ | 342,887 | |||||||
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||
| For The Year Ended | |||||||||||
| December 31, | |||||||||||
| 2013 | 2012 | ||||||||||
| Sales, net | $ | 1,166,457 | $ | 564,142 | |||||||
| Cost of Sales | 480,678 | 342,130 | |||||||||
| Gross profit | 685,779 | 222,012 | |||||||||
| Costs and Expenses: | |||||||||||
| Professional Fees | 339,116 | 207,926 | |||||||||
| Depreciation and Amortization | 318,265 | 40,951 | |||||||||
| Selling Expenses | 195,954 | 106,097 | |||||||||
| Research and Development | 127,547 | 2,384 | |||||||||
| Impairment of Intangibles | - | 69,439 | |||||||||
| Debt Extinguishment | - | (43,900 | ) | ||||||||
|
Consulting fees |
643,827 | 19,536 | |||||||||
| General and Administrative | 509,243 | 1,270,389 | |||||||||
| Total Costs and Expenses | 2,133,952 | 1,672,822 | |||||||||
| Loss from Operations | (1,448,173 | ) | (1,450,810 | ) | |||||||
| Other Income (Expense): | |||||||||||
| Amortization of Deferred Financing Costs | (234,370 | ) | - | ||||||||
| Amortization of Debt Discounts | (70,442 | ) | (173,398 | ) | |||||||
| Fair Value Adjustment of Derivative Liability | (349,410 | ) | - | ||||||||
|
Financing Costs |
(3,198,803 | ) | (26,611 | ) | |||||||
| Interest Expense – Related Party | (161 | ) | (72,000 | ) | |||||||
| Interest Expense | (356,953 | ) | (27,588 | ) | |||||||
| Total Other Income (Expense) | (4,210,139 | ) | (299,597 | ) | |||||||
| Net Loss | $ | (5,658,312 | ) | $ | (1,750,407 | ) | |||||
| Loss Per Common Share | |||||||||||
| Basic and Diluted | $ | (0.07 | ) | $ | (0.02 | ) | |||||
| Basic and Diluted Weighted Average Common Shares Outstanding | 77,474,329 | 70,270,868 | |||||||||
About TOMI™ Environmental Solutions, Inc.
TOMI™ Environmental Solutions, Inc. (OTCQB: TOMZ) is a global bacteria decontamination and infectious disease control company providing green energy-efficient environmental solutions for indoor surface decontamination through manufacturing, sales and licensing of its premier platform of Hydrogen Peroxide aerosols, Ultra-Violet Ozone Generators and Ultra-Violet Germicidal Irradiation (“UVGI”) products and technologies.
TOMI™’s products are designed to service a broad spectrum of commercial structures including medical facilities, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, and athletic facilities. TOMI™’s products and services have also been used in single-family homes and multi-unit residences.
TOMI™ also develops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, The Restoration Industry Association, Indoor Air Quality Association and The International Ozone Association.
For additional product information, visit www.tomiesinc.com or contact us at info@tomiesinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain written and oral statements made by us may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Forward-looking statements are identified by such words and phrases as “we expect,” “expected to,” “estimates,” “estimated,” “current outlook,” “we look forward to,” “would equate to,” “projects,” “projections,” “projected to be,” “anticipates,” “anticipated,” “we believe,” “could be,” and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. Because they are forward-looking, they should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements after the date of this release.
CONTACT:
TOMI™ Environmental Solutions, Inc.
Dr. Halden
Shane, Chairman of the Board & Chief Executive Officer
(310)
275-2255 TOLL-FREE | (800) 525-1698
or
INVESTOR RELATIONS:
Syndicated
Capital, Inc.
John T. Hillman
(310) 255-4445