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8-K - CURRENT REPORT - TOMI Environmental Solutions, Inc. | tomz_8k.htm |
EXHIBIT 99.1
TOMI ENVIRONMENTAL SOLUTIONS, INC. REPORTS FIRST QUARTER 2018
FINANCIAL RESULTS
BEVERLY
HILLS, CA, May 17, 2018 (BUSINESS WIRE)— TOMI Environmental Solutions, Inc.
(“TOMI”) (OTCQX:TOMZ), a global provider of
infection prevention and decontamination products, services and
research, including SteraMist™,
a hydrogen peroxide-based mist and fog registered as Binary
Ionization Technology®
(BIT™)
with the U.S. Environmental
Protection Agency (“EPA”) for use as a
hospital-healthcare disinfectant, and general disinfectant,
including C.
diff, h1n1,
norovirus, salmonella
and
MRSA,
announced its results for the first quarter of 2018
TOMI™
Chief Operating Officer, Elissa Shane,
stated: “We’re off to a great start in 2018. We saw
growth in our quarter over quarter revenue and improved financial
operating results. We continued to invest in human capital by
filling key sales leadership positions that will further strengthen
our direct sales force. We finalized the lease on a new facility
which will provide us with much needed additional space to
accommodate our growth. We believe the additions to our
sales force and our new facility will position TOMI well in the
marketplace and will facilitate continued growth of the SteraMist
brand.”
First Quarter 2018 Financial Results
●
Net revenue in the
first quarter of 2018 was $1,312,000, compared to $1,099,000 in the
first quarter of 2017, representing an increase of $213,000 or 19%.
The increase in revenue relates to product mix in sales as there
was an increase in equipment sales from new customers and steady
reoccurring solution orders from our existing customer
base.
●
Gross margins in
the first quarter of 2018 was 62.5%, compared to 62.1% in the first
quarter of 2017.
●
Loss from operations in the first quarter
of 2018 was approximately $496,000,
compared to $612,000 in the first quarter of 2017,
representing a decrease of $115,000 or 19%. Our loss from
operations improved in the current period as a result of increased
revenue and gross profit, offset by an increase in our operating
expenses that was largely attributable to higher research and
development costs in relation to the SHIELD study.
●
Net loss in the
first quarter of 2018 was $563,000, or $0.00 on a per share basis,
compared to a net loss in the first quarter of 2017 of $626,000, or
$0.01 on a per share basis, representing a decrease of $63,000 or
10%. The decrease in our net loss is attributable to our lower loss
from operations, offset by higher interest expense in the current
period.
●
At March 31,
2018, cash and cash equivalents were
$3,867,000 and working capital was $8,724,000 compared to
$4,550,000 and $9,070,000, respectively, at December 31,
2017.
●
The appointment and
promotion of Elissa Shane as our Chief Operating
Officer.
●
Strengthened our board of directors with the
appointment of Dr. Lim Boh Soon, who brings over 25
years’ experience in the banking and finance
industry.
●
Filled
key leadership position and expanded our internal sales force with
the addition of Stephen Grant as our Vice President of
Sales.
●
Expansion
of sales force devoted to our Hospital-Healthcare division with the
hiring of Bill Flecky, Director of Hospital-Healthcare Sales and
Jeff Hobson, Vice President of Hospital-Healthcare
Sales.
●
Participation in large study being conducted at
one of the largest hospitals west of the Mississippi River, LAC-USC
Medical Center in addition to two other Los Angeles Public
hospitals, UCLA Olive View Medical Center and UCLA Harbor Medical
Center that compares terminal manual clean to SteraMist™
terminal mechanical clean using
iHP™
disinfecting
technology.
●
Finalized lease on new 9,000 square foot facility
in Frederick Maryland to accommodate expanding operations.
The new space will have additional office and warehouse space, a
dedicated laboratory, larger research and development space and
will feature a one-of-a-kind, state-of-the-art built-in
decontamination chamber to demonstrate the ease, quickness and
effectiveness of our core product “SteraMistTM” while
applying it to numerous types of vehicles from neighboring
communities.
●
Added
13 new customers in the first quarter and saw an increase in repeat
solution orders from our existing customer base.
●
Quarter
over quarter growth in domestic and international revenue of 11%
and 46%, respectively.
●
Our U.K. distributor, Westbury
Decontamination completed a decontamination service job
at one of the facilities of the Metropolitan Police
Service.
●
After a 17-month
submission and review process, SteraMist™ BIT™ received its
registration by the Environmental Protection Administration of
Taiwan.
●
In January 2018,
the article “Review of Necessary Practices for EPA Submission
of a Hospital Disinfectant Using Good Laboratory Practice (GLP)
Disinfectant Study Summaries of TOMI’s™
SteraMist™ BIT™ Disinfection System” in the
Journal of The Association for Biosafety and Biosecurity (ABSA)
International 2017, Vol. 22 (4) 172-180 was published.
●
In February 2018,
SteraMist™ was featured
in a newspaper article that discusses how a hospital in Delaware is
managing to control the spread of the flu virus. Delaware Online,
part of the USA Today Network, shared news of record high flu cases
in the state and how St. Francis Healthcare, located in Wilmington,
DE, is managing to address the need to control this highly
infectious and aggressive flu strain through the use of
SteraMist™
BIT™
technology.
About TOMI Environmental Solutions, Inc.
TOMI™ Environmental
Solutions, Inc. (OTCQX:TOMZ)
is a global decontamination and infection prevention company,
providing environmental solutions for indoor surface and air
disinfection through manufacturing, sales and licensing of its
premier Binary Ionization Technology® (BIT™)
platform. Invented under a
defense grant in association with the Defense Advanced Research
Projects Agency (DARPA) of the U.S. Department of Defense.
BIT™ is
registered with the U.S. Environmental Protection Agency
(“EPA”) and uses a low
percentage Hydrogen Peroxide as its only active ingredient to
produce a fog composed mostly of hydroxyl radical
(.OH
ion), known as ionized Hydrogen Peroxide, iHP™.
Represented by the SteraMist™ brand
of products, iHP™ produces a germ-killing aerosol that works
like a visual non-caustic gas.
Our products are designed to service a broad spectrum of commercial
structures, including, but not limited to, hospitals and medical
facilities, bio-safety labs, pharmaceutical facilities,
universities and research facilities, vivarium labs, all service
industries including 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 are also used in
single-family homes and multi-unit residences.
Our
mission is to help its customers create a healthier world through
its product line in our divisions ( Healthcare, Life Sciences, TSN
or TOMI Service Network and Food Safety) our motto is
“innovating for a safer world” for healthcare and
life.
TOMI develops
training programs and application protocols for its clients and is
a member in good standing of 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 and The Restoration Industry
Association.
For additional information, please visit http://www.tomimist.com/ or
contact us at info@tomimist.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.
They are forward-looking, and 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
|
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Current
Assets:
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March 31,
2018
(Unaudited)
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December
31,
2017
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Cash and Cash
Equivalents
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$
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3,867,420
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$
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4,550,003
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Accounts
Receivable, net
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2,230,402
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1,835,949
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Inventories (Note
3)
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3,273,613
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3,518,884
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Deposits on
Merchandise (Note 9)
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15,714
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-
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Prepaid
Expenses
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276,685
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270,419
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Total Current
Assets
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9,663,834
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10,175,255
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Property and
Equipment, net (Note 4)
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642,461
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712,822
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Other
Assets:
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Intangible Assets,
net (Note 5)
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1,456,155
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1,548,532
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Security
Deposits
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4,700
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4,700
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Total Other
Assets
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1,460,855
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1,553,232
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Total
Assets
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$
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11,767,150
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$
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12,441,309
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LIABILITIES
AND SHAREHOLDERS’ EQUITY
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Current
Liabilities:
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Accounts
Payable
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$
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634,803
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$
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751,730
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Accrued Expenses
and Other Current Liabilities (Note 10)
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287,861
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267,136
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Accrued Interest
(Note 6)
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16,000
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80,000
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Customer
Deposits
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1,578
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3,062
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Deferred
Rent
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-
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781
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Total Current
Liabilities
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940,242
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1,102,709
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Convertible Notes
Payable, net of discount of $47,588 and 55,625
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at March 31, 2018
and December 31, 2017, respectively (Note 6)
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5,952,412
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5,944,375
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Total Long-Term
Liabilities
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5,952,412
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5,944,375
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Total
Liabilities
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6,892,654
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7,047,084
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Commitments and
Contingencies
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-
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-
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Shareholders’
Equity:
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Cumulative
Convertible Series A Preferred Stock;
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par value $0.01 per
share, 1,000,000 shares authorized; 510,000 shares
issued
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and outstanding at
March 31, 2018 and December 31, 2017
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5,100
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5,100
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Cumulative
Convertible Series B Preferred Stock; $1,000 stated
value;
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|||||||
7.5% cumulative
dividend; 4,000 shares authorized; none issued
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and outstanding at
March 31, 2018 and December 31, 2017
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-
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-
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Common Stock; par
value $0.01 per share, 200,000,000 shares authorized;
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122,349,958 and
122,049,958 shares issued and outstanding
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at March 31, 2018
and December 31, 2017, respectively
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1,223,499
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1,220,499
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Additional Paid-In
Capital
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42,180,265
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42,139,675
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Accumulated
Deficit
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(38,534,368
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)
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(37,971,049
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)
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Total
Shareholders’ Equity
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4,874,496
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5,394,225
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Total Liabilities
and Shareholders’ Equity
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$
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11,767,150
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$
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12,441,309
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The accompanying
notes are an integral part of the condensed consolidated financial
statements.
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TOMI
ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
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For the Three
Months Ended
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March
31,
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2018
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2017
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Sales,
net
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$1,312,466
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$1,098,883
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Cost of
Sales
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491,659
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416,357
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Gross
Profit
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820,807
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682,526
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Operating
Expenses:
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Professional
Fees
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106,458
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272,011
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Depreciation and
Amortization
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162,738
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159,151
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Selling
Expenses
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204,005
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179,384
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Research and
Development
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132,487
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30,647
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Equity Compensation
Expense (Note 7)
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12,685
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11,553
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Consulting
Fees
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35,026
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31,052
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General and
Administrative
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663,887
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610,355
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Total Operating
Expenses
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1,317,287
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1,294,153
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Loss from
Operations
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(496,480)
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(611,627)
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Other Income
(Expense):
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Amortization of
Debt Discount
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(8,037)
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(137)
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Interest
Income
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1,198
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-
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Interest
Expense
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(60,000)
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(14,133)
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Total Other Income
(Expense)
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(66,839)
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(14,270)
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Net
Loss
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$(563,319)
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$(625,897)
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Net Loss Per Common
Share
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Basic and
Diluted
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$(0.00)
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$(0.01)
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Basic and Diluted
Weighted Average Common Shares Outstanding
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122,229,959
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120,825,134
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MEDIA RELATIONS CONTACT
Juliana deRosa
Vice President Domestic Business Operations
jderosa@tomimist.com