Attached files
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| 8-K - TOMI ENVIRONMENTAL SOLUTIONS, INC. 8-K - TOMI Environmental Solutions, Inc. | a50981975.htm |
Exhibit 99.1
TOMI™ Reports Third Quarter 2014 Results
FINANCIAL HIGHLIGHTS:
- Continued growth in revenue over the last six quarters;
- Continued improvement in gross margin; and
- Moved into new facility in Frederick, Maryland, in September of 2014.
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--November 11, 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 its financial results for the third quarter of 2014.
FINANCIAL RESULTS
Third Quarter of 2014 Compared to Third Quarter of 2013:
- Net loss attributable to the Company of $1,254,000 or $0.02 per share, compared to $2,946,000 or $0.04 per share for the third quarter of 2013.
- Revenue of $515,000 for the third quarter, compared to $295,000 for the third quarter of 2013, representing an increase of $220,000 or 75%. Revenue increased in all of the Company’s divisions, driven largely by international gains during the quarter.
- Gross profit of $327,000 for the third quarter, compared to $109,000 for the third quarter of 2013, representing an increase of $218,000 or 199%.
- As a percentage of sales, gross profit was 64% for the third quarter, compared to 37% for the third quarter in 2013.
- Without the non-cash charge of $976,000 for equity-based compensation, the loss from operations would be approximately $446,000 for the third quarter of 2014.
“We have achieved six consecutive quarters of sales growth and margin expansion since TOMI has purchased BIT technology from L-3 nearly 19 months ago, and we are excited by our prospects for continued improvement,” stated Dr. Halden Shane, TOMI’s Chairman and Chief Executive Officer. “The international demand for portability in a decontamination technology that is red-light-green-light, leaves no residue and achieves a six-log reduction in killing and inactivating antimicrobial pathogens continues to improve. We are further realizing the benefits of our long-term strategy to expand our presence in international core dealer channels, introduce new product design along with adding greater functionality benefits to our existing line of our SteraMist products along with maintaining a disciplined cost structure. The expansion of our facility with RG Group is a reflection of the success we have enjoyed in our market space and the growth opportunities that we believe exist. With our strategy intact and our overall business improving across all our divisions such as Sales, Service and Training, we look forward to entering 2015 well positioned.”
About TOMI™ Environmental Solutions, Inc.
TOMI™ Environmental Solutions, Inc. (TOMZ) is a global bacteria decontamination and infectious disease control company, providing green energy-efficient environmental solutions for indoor surface decontamination through manufacturing, sales, servicing and licensing of TOMI’s Hydrogen Peroxide mist and fog product SteraMist™ that utilizes TOMI’s™ Binary Ionization Technologies (BIT) platform. 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’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. Currently, TOMI’s products are being used in 8 countries (Australia, Singapore, South Korea, Panama, Mexico, Spain, Italy and the United Kingdom).
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.
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||
| ASSETS | ||||||||||||
| Current Assets: | September 30, | December 31, | ||||||||||
| 2014 | 2013 | |||||||||||
| (Unaudited) | ||||||||||||
| Cash and Cash Equivalents | $ | 85,837 | $ | 706,350 | ||||||||
| Cash – Restricted (Note 6) | 228 | 70,124 | ||||||||||
| Accounts Receivable - net | 534,690 | 805,809 | ||||||||||
| Inventories (Note 3) | 517,105 | 407,549 | ||||||||||
| Prepaid Expenses | 41,187 | 7,980 | ||||||||||
| Deferred Financing Costs – net (Note 6) | 285,952 | - | ||||||||||
| Total Current Assets | 1,464,998 | 1,997,812 | ||||||||||
| Property & Equipment – net (Note 4) | 303,099 | 164,068 | ||||||||||
| Other Assets: | ||||||||||||
| Intangible Assets – net (Note 5) | 2,749,433 | 3,026,564 | ||||||||||
| Deferred Financing Costs – net (Note 6) | - | 542,116 | ||||||||||
| Deposits | 6,553 | 2,543 | ||||||||||
| Total Other Assets | 2,755,986 | 3,571,223 | ||||||||||
| Total Assets | $ | 4,524,083 | $ | 5,733,103 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||||||||||
| Current Liabilities: | ||||||||||||
| Accounts Payable and Accrued Expenses | $ | 368,516 | $ | 383,349 | ||||||||
| Accrued Interest on Convertible Notes (Note 6) | 84,567 | 211,194 | ||||||||||
| Accrued Officers Compensation (Note 9) | 81,000 | 25,000 | ||||||||||
| Common Stock to be Issued (Note 12) | 83,211 | 150,871 | ||||||||||
| Customer Deposits | 18,873 | 14,105 | ||||||||||
| Deferred Rent | 3,809 | - | ||||||||||
| Derivative Liability (Note 7) | 3,765,541 | 7,665,502 | ||||||||||
|
Convertible Notes Payable, net of discount of $4,513,775 |
560,225 | - | ||||||||||
| at September 30, 2014 (Note 6) | ||||||||||||
| Total Current Liabilities | 4,965,742 | 8,450,021 | ||||||||||
| Convertible Notes Payable, net of discount of $5,003,558 | - | 70,442 | ||||||||||
| at December 31, 2013 (Note 6) | ||||||||||||
| Total Long-term Liabilities | - | 70,442 | ||||||||||
| Total Liabilities | 4,965,742 | 8,520,463 | ||||||||||
| Commitments and Contingencies | - | - | ||||||||||
| Stockholders’ Deficiency: | ||||||||||||
|
Cumulative Convertible Series A Preferred Stock; par value $0.01, 1,000,000 shares authorized; 510,000 shares issued and outstanding at September 30, 2014 and December 31, 2013 |
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 September 30, 2014 and December 31, 2013 |
- | - | ||||||||||
|
Common stock; par value $0.01, 200,000,000 shares authorized; 82,690,650 and 79,867,217 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively. |
826,907 | 798,672 | ||||||||||
| Additional Paid-In Capital | 18,927,408 | 15,674,958 | ||||||||||
| Accumulated Deficit | (20,201,074 | ) | (19,266,090 | ) | ||||||||
| Total Stockholders’ Deficiency | (441,659 | ) | (2,787,360 | ) | ||||||||
| Total Liabilities and Stockholders’ Deficiency | $ | 4,524,083 | $ | 5,733,103 | ||||||||
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | ||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||
| For The Three Months Ended | For The Nine Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Sales, net | $ | 515,465 | $ | 294,627 | $ | 1,204,949 | $ | 506,656 | ||||||||||||||||
| Cost of Sales | 187,943 | 185,098 | 439,929 | 280,403 | ||||||||||||||||||||
| Gross profit | 327,522 | 109,529 | 765,020 | 226,253 | ||||||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Professional Fees | 89,341 | 93,200 | 280,166 | 261,111 | ||||||||||||||||||||
| Depreciation and Amortization | 121,496 | 112,990 | 345,790 | 220,332 | ||||||||||||||||||||
| Selling Expenses | 107,460 | 36,327 | 284,615 | 65,455 | ||||||||||||||||||||
| Research and Development | 30,544 | 23,041 | 127,686 | 39,388 | ||||||||||||||||||||
| Equity Compensation Expense (Note 8) | 1,043,069 | 66,825 | 2,448,591 | 66,825 | ||||||||||||||||||||
| Consulting fees | 44,338 | 312,116 | 128,491 | 495,993 | ||||||||||||||||||||
| General and Administrative | 313,229 | 166,847 | 857,571 | 361,536 | ||||||||||||||||||||
| Total Operating Expenses | 1,749,477 | 811,346 | 4,472,911 | 1,510,640 | ||||||||||||||||||||
| Loss from Operations | (1,421,955 | ) | (701,817 | ) | (3,707,891 | ) | (1,284,387 | ) | ||||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Amortization of Deferred Financing Costs | (86,327 | ) | (86,253 | ) | (256,165 | ) | (148,044 | ) | ||||||||||||||||
| Amortization of Debt Discounts | (272,329 | ) | (21,254 | ) | (489,783 | ) | (30,071 | ) | ||||||||||||||||
| Fair Value Adjustment of Derivative Liability | 653,824 | (1,677,837 | ) | 3,899,961 | (6,233,374 | ) | ||||||||||||||||||
| Financing Costs | - | (330,753 | ) | - | (3,198,803 | ) | ||||||||||||||||||
| Interest Expense – Related Party | - | - | - | (161 | ) | |||||||||||||||||||
| Interest Expense | (126,850 | ) | (128,231 | ) | (381,106 | ) | (229,932 | ) | ||||||||||||||||
| Total Other Income (Expense) | 168,318 | (2,244,328 | ) | 2,772,907 | (9,840,385 | ) | ||||||||||||||||||
| Net Loss | $ | (1,253,637 | ) | $ | (2,946,146 | ) | $ | (934,984 | ) | $ | (11,124,772 | ) | ||||||||||||
| Loss Per Common Share | ||||||||||||||||||||||||
| Basic and Diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.15 | ) | ||||||||||||
| Basic and Diluted Weighted Average Common Shares Outstanding | 82,690,650 | 78,569,460 | 80,601,165 | 76,677,430 | ||||||||||||||||||||
CONTACT:
TOMI™ Environmental Solutions, Inc.
Dr. Halden
Shane, Chairman of the Board & Chief Executive Officer
(310)
275-2255 | (800) 525-1698
or
INVESTOR RELATIONS:
Syndicated
Capital, Inc.
John T. Hillman, (310) 255-4445