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BEVERLY HILLS, Calif., Aug. 14, 2017 -- TOMI Environmental Solutions, Inc. (“TOMI™”) (OTCQX:TOMZ), a global decontamination company that specializes in disinfection/decontamination sales and services, including SteraMist™, a hydrogen peroxide-based mist/fog registered with the U.S. Environmental Protection Agency (“EPA”) for use as a hospital-healthcare disinfectant, announces its financial results for the second quarter of 2017.
Dr. Halden Shane, TOMI’s Chief Executive Officer, stated: “While we experienced some growing pains and challenges at the beginning of the year, I am pleased to report that we are back on track and meeting our goals of expanding the technology in our focus sectors and advancing our efforts across the globe.”
Financial Results for the Three Months Ended June 30, 2017 Compared to 2016
- Completion of $6.0 million in private placement funding.
- Net revenue was $1,380,000, compared to $1,729,000.
- Gross margins were 62.0%, compared to 59.1%.
- Loss from operations was $1,156,000, compared to $789,000.
- Net loss was $1,213,000, or $0.01 on a per share basis compared to a net loss of $575,000 or $0.00 on a per share basis.
- At June 30, 2017, cash and cash equivalents were $5,468,000 and working capital was $10,435,000, compared to $948,000 and $5,716,000, respectively, at December 31, 2016.
Recent and Current Business Highlights
- Settlement of suit TOMI initiated against Astro Pak Corporation to protect its intellectual property rights, resulting in the assignment of the iHP trademark and a favorable cash settlement.
- Held annual shareholder meeting where our shareholders approved the election of our directors, ratification of our independent registered accounting firm, approval of the 2016 stock plan, amendment to our bylaws to establish a classified board, amendment to our restated articles of incorporation to implement a reverse stock split, executive compensation and frequency of advisory votes on approval of compensation to the named executive officers.
- Custom built in system that was designed and installed into a vivarium facility was featured in the publication, ALNmag.
- Expansion of EPA label to include efficacy against Salmonella and Norovirus.
- Continued our growth into international markets during the second quarter by entering into distributor and sales rep agreements in Chile, Brazil and Portugal.
- Expansion of TOMI sales force in life science sector with addition of an internal sales manager and five manufacturing representatives.
- Completion of a $6.0 million private placement funding to be used to expand sales force, further research and development, domestic and international product registrations, enhance marketing and public relation initiatives along with amending TOMI’s BIT Solution EPA label.
- Continued growth of disinfection/decontamination services with eleven (11) global pharmaceutical companies for both reoccurring and new customer service orders, totaling approximately $772,000 in the current year.
- Continued to support six (6) Hospital trials in the Asian marketplace. Completion of the trials will facilitate entry into the Asian Marketplace.
- Further growth in operations personnel.
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 disinfection through manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform, which was invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. BIT™ uses a low percentage Hydrogen Peroxide as its only active ingredient to produce a hydroxyl radical (OH ion), represented by the TOMI™ SteraMist™ brand of products, which produces a germ-killing aerosol that works like a visual non-caustic gas.
TOMI’s 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 (when not in operation), military barracks, police and fire departments, 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 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 [email protected].
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 | |||||||
| Current Assets: | June 30, 2017 (Unaudited) | December 31, 2016 | |||||
| Cash and Cash Equivalents | $ | 5,467,521 | $ | 948,324 | |||
| Accounts Receivable – net | 1,723,469 | 1,521,378 | |||||
| Inventories | 4,064,120 | 4,047,310 | |||||
| Deposits on Merchandise | 79,119 | 147,010 | |||||
| Prepaid Expenses | 210,895 | 104,448 | |||||
| Total Current Assets | 11,545,123 | 6,768,469 | |||||
| Property and Equipment – net | 494,940 | 611,807 | |||||
| Other Assets: | |||||||
| Intangible Assets – net | 1,733,286 | 1,918,040 | |||||
| Security Deposits | 4,700 | 4,700 | |||||
| Total Other Assets | 1,737,986 | 1,922,740 | |||||
| Total Assets | $ | 13,778,049 | $ | 9,303,016 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts Payable | $ | 741,203 | $ | 735,879 | |||
| Accrued Expenses and Other Current Liabilities | 285,499 | 278,413 | |||||
| Accrued Interest | 71,256 | - | |||||
| Customer Deposits | 7,487 | 30,120 | |||||
| Deferred Rent | 4,661 | 8,541 | |||||
| Total Current Liabilities | 1,110,105 | 1,052,953 | |||||
| Convertible Notes Payable, net of discount of $61,010 at June 30, 2017 | 5,938,990 | - | |||||
| Total Long-term Liabilities | 5,938,990 | - | |||||
| Total Liabilities | 7,049,096 | 1,052,953 | |||||
| Commitments and Contingencies | - | - | |||||
| Shareholders’ Equity: | |||||||
| Cumulative Convertible Series A Preferred Stock; par value $0.01, 1,000,000 shares authorized; 510,000 shares issued and outstanding at June 30, 2017 and December 31, 2016 | 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, 2017 and December 31, 2016 | - | - | |||||
| Common stock; par value $0.01, 200,000,000 shares authorized; 121,043,958 and 120,825,134 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively. | 1,210,439 | 1,208,251 | |||||
| Additional Paid-In Capital | 41,683,635 | 41,367,946 | |||||
| Accumulated Deficit | (36,170,220 | ) | (34,331,234 | ) | |||
| Total Shareholders’ Equity | 6,728,954 | 8,250,063 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 13,778,049 | $ | 9,303,016 | |||
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| For The Three Months Ended | For The Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Sales, net | $ | 1,379,769 | $ | 1,728,533 | $ | 2,478,653 | $ | 3,435,508 | |||||||||
| Cost of Sales | 512,494 | 706,760 | 928,851 | 1,454,572 | |||||||||||||
| Gross Profit | 867,275 | 1,021,773 | 1,549,801 | 1,980,936 | |||||||||||||
| Operating Expenses: | |||||||||||||||||
| Professional Fees | 394,710 | 95,521 | 666,721 | 273,181 | |||||||||||||
| Depreciation and Amortization | 148,923 | 145,763 | 308,074 | 279,030 | |||||||||||||
| Selling Expenses | 371,095 | 517,486 | 550,480 | 869,662 | |||||||||||||
| Research and Development | 18,119 | 18,718 | 48,765 | 27,498 | |||||||||||||
| Equity Compensation Expense | 232,345 | 118,340 | 243,897 | 456,969 | |||||||||||||
| Consulting Fees | 86,060 | 101,435 | 117,112 | 231,061 | |||||||||||||
| General and Administrative | 771,869 | 814,117 | 1,382,224 | 1,671,585 | |||||||||||||
| Total Operating Expenses | 2,023,121 | 1,811,379 | 3,317,274 | 3,808,986 | |||||||||||||
| Loss from Operations | (1,155,845 | ) | (789,606 | ) | (1,767,472 | ) | (1,828,050 | ) | |||||||||
| Other Income (Expense): | |||||||||||||||||
| Amortization of Debt Discounts | (757 | ) | - | (894 | ) | - | |||||||||||
| Gain on Disposition of Property and Equipment | - | 12,000 | - | 12,000 | |||||||||||||
| Grant | - | 202,451 | - | 202,451 | |||||||||||||
| Interest Income | 636 | - | 636 | - | |||||||||||||
| Interest Expense | (57,123 | ) | - | (71,256 | ) | - | |||||||||||
| Total Other Income (Expense) | (57,244 | ) | 214,451 | (71,514 | ) | 214,451 | |||||||||||
| Net Loss | $ | (1,213,089 | ) | $ | (575,155 | ) | $ | (1,838,986 | ) | $ | (1,613,599 | ) | |||||
| Loss Per Common Share | |||||||||||||||||
| Basic and Diluted | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | |||||
| Basic and Diluted Weighted Average Common Shares Outstanding | 121,032,400 | 120,457,277 | 120,929,340 | 120,317,306 | |||||||||||||
MEDIA RELATIONS CONTACT Juliana deRosa Executive Administrator [email protected]
