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| 8-K - CURRENT REPORT - TOMI Environmental Solutions, Inc. | tomi_8k.htm |
Exhibit 99.1
TOMI ENVIRONMENTAL SOLUTIONS, INC. REPORTS
SECOND QUARTER 2020 FINANCIAL RESULTS
BEVERLY HILLS, CA, AUGUST 13, 2020 (BUSINESS WIRE) —
TOMI
Environmental Solutions, Inc.®
(“TOMI”)
(OTCQB:TOMZ), is a global company specializing in disinfection and
decontamination utilizing its premier Binary Ionization Technology
(BIT) platform through its SteraMist brand of products - a hydrogen
peroxide-based mist and fog comprised of ionized Hydrogen Peroxide
(iHP), announced its results for the second quarter of
2020.
TOMI Chief Executive Officer, Dr. Halden Shane stated, “We
experienced sustained growth in the second quarter and hit a major
milestone with revenues exceeding $10 million as a result of strong
global demand for innovative technologies in disinfection and
infectious disease control. With the increase in sales to date and
the foreseeable future, a second manufacturer was added to expand
our production capacity. Meanwhile, TOMI’s customer base
continues to grow while additional channels are showing
interest in SteraMist and the versatility of the product. TOMI has
been hiring additional employees to improve our quality control
standards and upgrade our internal controls. As always, TOMI is
introducing new products and enhancements as we strive to innovate
for a safer world”.
Financial Results for the Three Months Ended June 30, 2020 compared
to June 30, 2019
●
Total net revenue was $10,028,000 compared to $1,639,000,
representing an increase of $8,389,000, or 512%.
-
SteraMist®
product-based revenues
was $9,235,000 and $1,504,000, respectively, representing an
increase of $7,731,000 or 514%.
-
Service-based revenue was $793,000 and $135,000, respectively,
representing an increase of $658,000 or 487%.
-
Domestic revenue was $8,392,000 and $1,428,000, respectively,
representing an increase of $6,964,000, or 488%.
-
International revenue was approximately $1,636,000 and $211,000,
respectively, representing an increase of $1,425,000 or
675%.
●
Gross margins were 55.5% compared to 59.5%. The lower gross profit
is attributable to the product mix in sales.
●
Income from operations was $3,657,000, compared to a Loss from
operations of ($535,000), representing an increase of
$4,192,000.
●
Net Income was $3,657,000, or $0.03 on a per share basis compared
to a Net loss of ($585,000), or ($0.00) on a per share basis,
representing an increase of $4,242,000.
●
EBITDA was $3,829,000 compared to an adjusted net loss of
($356,000). A table reconciling EBITDA to the appropriate GAAP
measure is included with the Company's financial information
below.
●
Cash provided from operations for the six months ended June 30,
2020 and 2019 of $5,385,000, compared to cash used in operations of
($120,000), respectively.
Balance sheet highlights as of June 30, 2020 and December 31,
2019
●
Cash and cash equivalents of approximately $6,268,000 and $897,000,
representing an increase of $5,371,000.
●
Working capital of $10,583,000 and ($1,266,000), representing an
increase of $11,849,000.
●
Shareholders’ equity of $12,159,000 and $890,000,
representing an increase of $11,269,000.
Current Business Highlights To Date
Revenues
●
Second quarter revenue of $10,028,000 is the highest gross amount
of quarterly sales reported in TOMI’s history.
●
Year over year growth
in overall revenue through June 30th
of
$14,191,000 or 491%.
●
Year over year growth
in equipment and solution revenue through June
30th
of
$13,347,000 or 527%.
●
Year over year growth
in service revenue through June 30th
of $844,000
or 236%.
●
Sold 514 machines to date in 2020, representing an 852% increase
over the same prior year period.
Customers
●
Added two hundred (200) customers to date in 2020, representing a
471% increase over the same prior year period.
●
Added forty-nine (49) new facilities in the hospital-healthcare
division to date in 2020, representing a 600% increase over the
same prior year period.
●
Added seventy-four (74) new TSN providers to date in 2020,
representing a 1,380% increase over the same prior year period,
creating a total of 175 providers throughout 40 U.S. States and
Canada.
●
Added twenty-nine (29) new customers to our Life Sciences customer
base, representing an increase of 93%.
●
Added four (4) new Food Safety customer who purchased and
implemented our SteraMist technology into their
facilities.
●
Added twenty-seven (27) customers in a variety of new commercial
channels, both in domestic and international territories. These
customers include but are not limited to use sites such as
aviation, prisons, police and fire departments, automobile, marine,
education, regulatory consulting agencies, hospitality and, of
course, emergency preparedness for counties and
cities.
Business Highlights
●
Increased demand on solution re-orders as disinfecting and
decontamination procedures have increased exponentially across the
world.
●
Saw an increase in Hospital-Healthcare customers purchasing
multiple SteraMist units in order to deploy throughout multiple
locations and/or areas within a facility.
●
Saw an increase in servicing national accounts across multiple
facilities both via iHP Corporate Service and our TSN.
●
Entered into a new manufacturing agreement with Planet Innovation
Products, Pty Ltd.
●
Increased demand of product and services has led to the hiring and
onboarding of additional employees to assist in a wide variety of
company operations, including but not limited to accounting,
procurement, customer satisfaction, and quality
control.
●
Published Study Determining the Effectiveness of Decontamination
with Ionized Hydrogen Peroxide, Lead Author, Miguel A. Grimaldo,
Applied Biosafety Journal.
●
Announced Completion and Testing Trial of Its First Disinfection
Robot.
TOMI enters into multiple separate AMR (Autonomous Mobile Robots)
manufacturing agreements globally for “SteraBot”
TOMI’s disinfecting automatous robot.
TOMI™ Environmental Solutions, Inc.: Innovating for a
safer world®
TOMI™ Environmental Solutions, Inc.
(OTCQB: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 Defense Advanced Research
Projects Agency (DARPA) of the U.S. Department of Defense,
BIT™ solution utilizes a low percentage Hydrogen
Peroxide as its only active ingredient to produce a fog of
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, 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 and services have also
been used in single-family homes and multi-unit
residences.
TOMI 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,
America Seed Trade Association, and The Restoration Industry
Association.
For additional information, please visit http://www.tomimist.com/ or
contact us at info@tomimist.com.
TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
|
ASSETS
|
|
|
|
Current
Assets:
|
June
30,
2020
(Unaudited)
|
December
31,
2019
|
|
Cash and Cash
Equivalents
|
$6,268,061
|
$897,223
|
|
Accounts Receivable
- net
|
4,591,061
|
1,494,658
|
|
Inventories
|
2,759,299
|
2,315,214
|
|
Vendor
Deposits
|
568,599
|
141,052
|
|
Prepaid
Expenses
|
257,981
|
187,664
|
|
Total
Current Assets
|
14,445,001
|
5,035,811
|
|
|
|
|
|
Property and
Equipment – net
|
1,200,510
|
1,367,864
|
|
|
|
|
|
Other
Assets:
|
|
|
|
Intangible Assets
– net
|
752,316
|
939,010
|
|
Operating Lease -
Right of Use Asset
|
653,626
|
674,471
|
|
Capitalized
Software Development Costs - net
|
73,327
|
94,278
|
|
Other
Assets
|
302,429
|
114,033
|
|
Total
Other Assets
|
1,781,698
|
1,821,792
|
|
Total
Assets
|
$17,427,209
|
$8,225,467
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
Payable
|
$3,012,832
|
$713,222
|
|
Accrued
Expenses and Other Current Liabilities
|
710,270
|
450,112
|
|
Accrued
Officers Compensation
|
31,058
|
-
|
|
Accrued
Interest
|
-
|
66,667
|
|
Customer
Deposits
|
32,040
|
-
|
|
Current
Portion of Long-Term Operating Lease
|
76,266
|
71,510
|
|
Convertible
Notes Payable, net of discount of $0
|
|
|
|
at
December 31, 2019
|
-
|
5,000,000
|
|
Total
Current Liabilities
|
3,862,466
|
6,301,511
|
|
|
|
|
|
Long-Term
Liabilities:
|
|
|
|
Loan
Payable
|
410,700
|
-
|
|
Long-Term
Operating Lease, Net of Current Portion
|
995,068
|
1,034,413
|
|
Total
Long-Term Liabilities
|
1,405,768
|
1,034,413
|
|
Total
Liabilities
|
5,268,235
|
7,335,924
|
|
|
|
|
|
Commitments
and Contingencies
|
-
|
-
|
|
|
|
|
|
Shareholders’
Equity:
|
|
|
|
Cumulative
Convertible Series A Preferred Stock;
|
|
|
|
par
value $0.01 per share, 1,000,000 shares authorized; 510,000 shares
issued
|
|
|
|
and
outstanding at June 30, 2020 and December 31, 2019
|
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 June 30, 2020 and December 31, 2019
|
-
|
-
|
|
Common
stock; par value $0.01 per share, 250,000,000 shares
authorized;
|
|
|
|
133,752,600
and 124,700,418 shares issued and outstanding
|
|
|
|
at
June 30, 2020 and December 31, 2019, respectively.
|
1,337,525
|
1,247,004
|
|
Additional
Paid-In Capital
|
48,039,415
|
43,136,683
|
|
Accumulated
Deficit
|
(37,223,066)
|
(43,499,244)
|
|
Total
Shareholders’ Equity
|
12,158,974
|
889,543
|
|
Total Liabilities
and Shareholders’ Equity
|
$17,427,209
|
$8,225,467
|
TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
|
|
For The Three
Months Ended
|
For The Six
Months Ended
|
||
|
|
June
30,
|
June
30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Sales,
net
|
$10,028,497
|
$1,638,674
|
$17,081,915
|
$2,891,332
|
|
Cost
of Sales
|
4,463,602
|
663,362
|
7,029,012
|
1,156,672
|
|
Gross
Profit
|
5,564,895
|
975,312
|
10,052,903
|
1,734,660
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
Professional
Fees
|
54,831
|
108,923
|
190,956
|
214,404
|
|
Depreciation
and Amortization
|
172,298
|
179,535
|
344,207
|
356,380
|
|
Selling
Expenses
|
388,827
|
518,546
|
767,472
|
960,216
|
|
Research
and Development
|
141,123
|
68,659
|
200,581
|
161,236
|
|
Equity
Compensation Expense
|
114,293
|
6,116
|
297,065
|
87,033
|
|
Consulting
Fees
|
69,705
|
20,261
|
151,250
|
55,267
|
|
General
and Administrative
|
967,158
|
608,605
|
1,785,303
|
1,303,485
|
|
Total Operating
Expenses
|
1,908,235
|
1,510,645
|
3,736,834
|
3,138,021
|
|
Income (loss) from
Operations
|
3,656,660
|
(535,333)
|
6,316,069
|
(1,403,361)
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
Amortization
of Debt Discounts
|
-
|
-
|
-
|
(17,534)
|
|
Interest
Income
|
1,043
|
629
|
1,585
|
1,659
|
|
Interest
Expense
|
(787)
|
(50,000)
|
(41,476)
|
(100,000)
|
|
Total Other Income
(Expense)
|
256
|
(49,371)
|
(39,891)
|
(115,875)
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
3,656,916
|
(584,704)
|
6,276,178
|
(1,519,236)
|
|
Provision for
Income Taxes
|
-
|
-
|
-
|
-
|
|
Net Income
(loss)
|
$3,656,916
|
$(584,704)
|
$6,276,178
|
$(1,519,236)
|
|
|
|
|
|
|
|
Net income (loss)
Per Common Share
|
|
|
|
|
|
Basic
|
$0.03
|
$(0.00)
|
$0.05
|
$(0.01)
|
|
Diluted
|
$0.02
|
$(0.00)
|
$0.04
|
$(0.01)
|
|
|
|
|
|
|
|
Basic Weighted
Average Common Shares Outstanding
|
133,541,403
|
124,699,539
|
130,172,111
|
124,679,534
|
|
Diluted Weighted
Average Common Shares Outstanding
|
148,558,078
|
124,699,539
|
145,188,786
|
124,679,534
|
|
Reconciliation of Net Income to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended
|
For The Six
Months Ended
|
||
|
|
June
30,
|
June
30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Net income
(loss)
|
$3,656,916
|
$(584,704)
|
$6,276,178
|
$(1,519,236)
|
|
|
|
|
|
|
|
Interest
Income
|
(1,043)
|
(629)
|
(1,585)
|
(1,659)
|
|
Interest
Expense
|
787
|
50,000
|
41,476
|
100,000
|
|
Depreciation
and Amortization
|
172,298
|
179,535
|
344,207
|
356,380
|
|
Other
|
-
|
-
|
-
|
17,534
|
|
EBITDA (Adjusted
Loss)
|
$3,828,958
|
$(355,798)
|
$6,660,276
|
$(1,046,981)
|
|
|
|
|
|
|
|
EBITDA
Margin
|
38%
|
(22%)
|
39%
|
(36%)
|
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.
INVESTOR RELATIONS CONTACT
Harold Paul
hpaul@tomimist.com