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| 8-K - CURRENT REPORT - TOMI Environmental Solutions, Inc. | tomi_8k.htm |
Exhibit 99.1
TOMI ENVIRONMENTAL SOLUTIONS, INC. REPORTS RECORD THIRD QUARTER
2018 FINANCIAL RESULTS
BEVERLY HILLS, CA, NOVEMBER 19, 2018 (GLOBE NEWSWIRE)—TOMI
Environmental Solutions, Inc. (“TOMI”) (OTCQX:TOMZ), a
global provider of infection prevention and decontamination
products, services and research, including SteraMistTM, a hydrogen
peroxide-based mist and fog, announced its
results for the third quarter of 2018.
TOMI™
Chief Executive Officer, Dr. Halden Shane stated
“The third quarter delivered the
highest quarterly revenue we have seen to date and set a record for
the Company at $1,948,000. We saw 89% growth in our quarter over
quarter revenue and improved financial operating results. We
continue to expand our sales force, grow our customer list and open
new revenue channels. The Company remains committed to growing
revenue, building brand awareness, innovation and making the world
a safer place.”
Financial Results for the Three Months Ended September 30, 2018
compared to 2017
●
Total net revenue was $1,948,000, compared to
$1,030,000, representing an increase of
$918,000, or 89%. A further breakdown of revenue is as
follows:
–
SteraMist™
product based revenue was $1,613,000,
compared to $792,000, representing an increase of
$821,000, or 104%. The increase in the current year period was
attributable to large equipment orders from new customers and
steady repeat solution orders from our existing customer
base.
–
SteraMist™
service based revenue was $335,000,
compared to $238,000, representing an increase of
$97,000, or 41%. The increase in the current year period was
attributable to a higher amount of service engagements in the
current period.
●
Gross margins were 53.1%, compared to
62.2%. The primary reason for the decrease in our gross
margins was attributable to our product mix in sales for the
current year period in connection with the complete room system we
sold to a Fortune 100 pharmaceutical company that carried a lower
gross profit margin.
●
Loss
from operations was $314,000, compared to $396,000, representing a
decrease of $82,000, or 21%. The reduced loss from operations was
attributable to higher revenue and gross profit.
●
Net
loss was 373,000, or $0.00 on a per share basis compared to a net
loss of $457,000 or $0.00 on a per share basis, representing a a
decrease of $84,000, or 18%.
●
At
September 30, 2018, cash and cash equivalents were $3,177,000 and
working capital was $2,355,000.
Current Business Highlights
●
89% and 28% growth
in our revenue for the the three and nine months ended September
30, 2018, respectively.
●
Manufactured,
delivered and installed an iHP™ Complete Room
system with 20 applicators across four suites for a platinum Life
Science U.S. customer.
●
Added 56 new
customers in 2018 and continued to see an increase in repeat
solution orders from our existing client base.
●
Added 13 new
members to our TSN network.
●
Partnership with
MaxAir, a purifying respiratory protection helmet. This high-tech
helmet will be worn by hospital Environmental Service employees and
outside service providers during TOMI’s hospital terminal
clean. TOMI has developed a hospital terminal clean protocol that
takes less than one hour for completion including changing bedding,
thanks to our SteraMist technology and our MaxAir partnership. TOMI
has also recently partnered with MaxAir’s national sales
team, which regularly sells to the infection disease/safety market
in the healthcare industry. TOMI and MaxAir have partnered and
hired manufacturing sales representatives, sales groups and
companies to sell and promote SteraMist™ along with
MaxAir. TOMI will manage the orders and logistics of training and
supplies to the end users. We believe this partnership will enable
us to penetrate the United States healthcare market more
effectively.
●
The World Health
Organization (“WHO”) identified SteraMist™ as the only
“Disinfecting solution and technology” in its recently
published 2016–2017 “WHO compendium of innovative
health technologies for low-resource settings”. As part of
its selection process, the 562 technologies were evaluated by 35
internal WHO staff and 87 external reviewers, who presented no
conflict of interest. Once the evaluations were received and
compiled, a total of 39 prototypes and 29 commercially available
products were selected and are presented in the compendium in order
to illustrate certain innovative technologies that can empower
healthcare workers and might support people and patients to have a
healthier life.
●
Continued
participation in a large study that compares hospital manual
cleans to a SteraMist™ mechanical
clean using iHP™ disinfecting technology. The study is being
conducted at three Los Angeles Public Heath Hospitals, LAC-USC
Medical Center, UCLA Olive View Medical Center and Harbor-UCLA
Medical Center. Early study details have demonstrated progress and
more recent data shows that there is a significant decrease in the
transference of HAIs in the rooms that used SteraMist™ for their
terminal clean, as compared to the manual clean rooms. Further
results will be released as obtained from each of the lead
investigators
●
Further, in
September 2018, we implemented an iHP™
decontamination chamber system for a well-renowned
university.
●
Partnered with the
Global BioRisk Advisory Council (“GBAC”) to use
SteraMist™ as one of the
training technologies taught in its certification classes and used
during decontamination of everyday crises and forensic restoration
scenes.
●
Launched the
Forensic Restoration Service Team (“FRST”), a
TOMI-certified forensic restoration and crime clean network. The
network is comprised of service providers who are certified and
specialize in forensic restoration, mass casualty cleanup, crime
scene cleanup, suicide cleanup, unattended death cleanup, hoarding
and bio-recovery. Participating FRST members will receive
specialized training and certifications by GBAC.
About TOMI Environmental Solutions, Inc.
TOMI™
Environmental Solutions, Inc. (OTCQX:TOMZ) is a global provider of
disinfection and decontamination essentials through its premier
Binary Ionization Technology®
(BIT™)
platform, under which it manufactures, licenses, services and sells
its SteraMist™ brand of
products, including SteraMist™ BIT™, a hydrogen
peroxide-based mist and fog.
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 a 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.
TOMI 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,
meat and produce processing facilities, universities and research
facilities, vivarium labs, all service industries including cruise
ships, office buildings, hotel and motel rooms, schools,
restaurants, military barracks, police and fire departments, and
athletic facilities. TOMI products are also used in
single-family homes and multi-unit residences.
TOMI’s
mission is to help its customers create a healthier world through
its product line in its divisions (Healthcare, Life Sciences, TOMI
Service Network and Food Safety) and its 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,
American Seed Trade Association 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.
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CONDENSED
CONSOLIDATED BALANCE SHEET
|
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|
|
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|
ASSETS
|
|
|
|
Current
Assets:
|
September
30,
2018
(Unaudited)
|
December
31,
2017
|
|
Cash and Cash
Equivalents
|
$3,177,145
|
$4,550,003
|
|
Accounts Receivable
- net
|
2,284,828
|
1,835,949
|
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Inventories
|
3,069,148
|
3,518,884
|
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Deposits
|
185,893
|
-
|
|
Prepaid
Expenses
|
373,568
|
270,419
|
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Total
Current Assets
|
9,090,582
|
10,175,255
|
|
|
|
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Property and
Equipment – net
|
648,384
|
712,822
|
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Other
Assets:
|
|
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Intangible Assets
– net
|
1,271,401
|
1,548,532
|
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Deposits
|
11,395
|
4,700
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Total
Other Assets
|
1,282,796
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1,553,232
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Total
Assets
|
$11,021,761
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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
|
$1,052,618
|
$751,730
|
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Accrued
Expenses and Other Current Liabilities
|
396,313
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267,136
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Accrued
Interest
|
17,667
|
80,000
|
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Customer
Deposits
|
1,245
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3,062
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Deferred
Rent
|
-
|
781
|
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Convertible
Notes Payable, net of discount of $31,833
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5,268,167
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-
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at
September 30, 2018
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Total
Current Liabilities
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6,736,010
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1,102,709
|
|
|
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Convertible Notes Payable, net of discount of
$55,625
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at
December 31, 2017
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-
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5,944,375
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Total
Long-Term Liabilities
|
-
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5,944,375
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Total
Liabilities
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6,736,010
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7,047,084
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Commitments
and Contingencies
|
-
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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 September 30, 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 September 30, 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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124,290,418
and 122,049,958 shares issued and outstanding
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at
September 30, 2018 and December 31, 2017,
respectively.
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1,242,904
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1,220,499
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Additional
Paid-In Capital
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42,930,773
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42,139,675
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Accumulated
Deficit
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(39,893,026)
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(37,971,049)
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Total
Shareholders’ Equity
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4,285,751
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5,394,225
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Total Liabilities
and Shareholders’ Equity
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$11,021,761
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$12,441,309
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TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
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Three Months
Ended
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Nine Months
Ended
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September
30,
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September
30,
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2018
|
2017
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2018
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2017
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Sales,
net
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$1,947,570
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$1,030,095
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$4,506,508
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$3,508,748
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Cost
of Sales
|
912,466
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389,170
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1,961,935
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1,318,021
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Gross
Profit
|
1,035,104
|
640,925
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2,544,573
|
2,190,727
|
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Operating
Expenses:
|
|
|
|
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Professional
Fees
|
78,684
|
72,197
|
270,856
|
738,918
|
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Depreciation
and Amortization
|
153,572
|
145,760
|
468,778
|
453,834
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Selling
Expenses
|
368,733
|
319,807
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1,004,393
|
870,287
|
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Research
and Development
|
129,924
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79,747
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372,234
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128,512
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Equity
Compensation Expense
|
-
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(20,597)
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12,685
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223,300
|
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Consulting
Fees
|
19,711
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63,293
|
93,089
|
180,405
|
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General
and Administrative
|
598,679
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696,028
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1,999,485
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2,078,252
|
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Other
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-
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(319,388)
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-
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(319,388)
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Total Operating
Expenses
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1,349,303
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1,036,848
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4,221,520
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4,354,121
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Loss from
Operations
|
(314,199)
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(395,923)
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(1,676,947)
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(2,163,394)
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|
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Other Income
(Expense):
|
|
|
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Amortization
of Debt Discounts
|
(7,851)
|
(1,688)
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(23,792)
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(2,582)
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Induced
Conversion Costs
|
-
|
-
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(57,201)
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-
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Interest
Income
|
1,893
|
585
|
4,842
|
1,221
|
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Interest
Expense
|
(53,000)
|
(60,000)
|
(168,878)
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(131,256)
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Total Other Income
(Expense)
|
(58,958)
|
(61,103)
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(245,029)
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(132,617)
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Net
Loss
|
$(373,158)
|
$(457,025)
|
$(1,921,977)
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$(2,296,010)
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Loss Per Share of
Common Stock
|
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Basic
and Diluted
|
$(0.00)
|
$(0.00)
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$(0.02)
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$(0.02)
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Basic and Diluted
Weighted Average Shares of Common Stock Outstanding
|
124,290,418
|
121,567,328
|
123,333,468
|
121,144,339
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INVESTOR
RELATIONS CONTACT
Harold
Paul
hpaul@tomimist.com