FREDERICK, Md., Nov. 10, 2022 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ: TOMZ), a global company specializing in disinfection and decontamination utilizing its premier Binary Ionization Technology (BIT) platform through its SteraMist brand of products, today announced its financial results for the third quarter and nine months ended September 30, 2022.
TOMI Chief Executive Officer, Dr. Halden Shane, stated, “The third quarter delivered continued increased demand for our SteraMist technology as we saw growth in customer sales orders of 5% compared to the prior year. Due to customer imposed extended delivery timelines, we saw growth in our customer sales backlog which we expect to convert into revenue in late 2022 and early 2023.”
Through September of 2022, we have received $7,900,000 in customer sales orders which represents 25% growth compared to the first nine months of 2021. The increase in sales orders is largely attributable to increased demand for our Custom Engineered Systems (CES) as well routine and new iHP Service engagements, both of which should benefit our long term business model with recurring solution sales and service revenues.
We grew revenue sequentially by 20% which was largely due to increased demand for our mobile equipment. Operating loss saw a 24% reduction compared to the second quarter 2022 due to higher revenue, gross profit and reduced operating expenses.
Operating expenses decreased 16% for the nine months ended September 30, 2022 resulting in a 32% decrease in our loss from operations compared to the first nine months of 2021.
During the third quarter we increased our employee headcount in our customer experience, sales and technology departments in response to our growing customer base and backlog. Our enhanced technology department will accelerate R&D initiatives and streamline internal production as we take on larger CES projects.
“We continue to make good progress in 2022 and look to close out the year with a strong fourth quarter and a growing sales pipeline as we head into 2023,” Dr. Shane concluded.
Financial Results for the Three Months Ended September 30, 2022 compared to September 30, 2021
Financial Results for the Nine Months Ended September 30, 2022 compared to September 30, 2021
Balance sheet highlights as of September 30, 2022
Recent Financial Highlights:
Recent Business Highlights:
Conference Call Information
TOMI will hold a conference call to discuss Third Quarter 2022 results at 4:30 p.m. ET today, November 10, 2022.
To participate in the call by phone, dial (800) 225-9448 approximately five minutes prior to the scheduled start time. International callers please dial (203) 518-9708. To access the live webcast or view the press release, please visit the Investor Relations section of the TOMI website at:
https://www.webcaster4.com/Webcast/Page/2262/47087
A replay of the teleconference will be available until November 24, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code: 47087. A replay of the webcast will be available for at least 90 days on the company’s website, starting approximately one hour after the completion of the call.
TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®
TOMI™ Environmental Solutions, Inc. (NASDAQ: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 This email address is being protected from spambots. You need JavaScript enabled to view it..
Forward-Looking Statements
This press release contain forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to anticipated recognition of revenue in the remainder of 2022; expected sales pipeline; financial performance and operating results; upcoming launch of new products; expected growth in sales and market demand; revenue opportunities of CES products in 2022 and brand recognition of our products; Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business and customers; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with U.S. GAAP, we disclose certain non-GAAP financial measures for our historical performance, including EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. We define EBITDA as net income (loss), adjusted to exclude: interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure and is intended to serve as a supplement to our results provided in accordance with GAAP. We define Adjusted EBITDA as net income (loss), adjusted to exclude: interest, taxes, depreciation and amortization; stock-based compensation expense. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We believe that these historical non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to evaluate our performance internally and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. Although we believe that the use of non-GAAP financial measures enhances its investors’ understanding of its business and performance, our use of non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures and should be read in conjunction with the relevant GAAP financial measures. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. Because of these limitations, the non-GAAP financial measure used in this release should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP as set forth below. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable U.S. GAAP financial measures.
TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
ASSETS | |||||||
Current Assets: | |||||||
September 30, 2022 (Unaudited) | December 31, 2021 | ||||||
Cash and Cash Equivalents | $ | 4,335,481 | $ | 5,317,443 | |||
Accounts Receivable - net | 2,337,915 | 1,964,776 | |||||
Other Receivables | 164,150 | 235,904 | |||||
Inventories | 4,712,952 | 4,743,280 | |||||
Vendor Deposits | 481,788 | 288,586 | |||||
Prepaid Expenses | 349,328 | 343,573 | |||||
Total Current Assets | 12,381,614 | 12,893,562 | |||||
Property and Equipment – net | 1,285,471 | 1,488,319 | |||||
Other Assets: | |||||||
Intangible Assets – net | 975,900 | 956,284 | |||||
Operating Lease - Right of Use Asset | 543,173 | 583,271 | |||||
Capitalized Software Development Costs - net | - | 10,476 | |||||
Other Assets | 458,605 | 341,006 | |||||
Total Other Assets | 1,977,678 | 1,891,037 | |||||
Total Assets | $ | 15,644,763 | $ | 16,272,918 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 1,180,805 | $ | 1,054,040 | |||
Accrued Expenses and Other Current Liabilities | 626,510 | 664,608 | |||||
Deferred Revenue | 1,155,025 | 6,000 | |||||
Current Portion of Long-Term Operating Lease | 100,282 | 91,775 | |||||
Total Current Liabilities | 3,062,622 | 1,816,423 | |||||
Long-Term Liabilities: | |||||||
Long-Term Operating Lease, Net of Current Portion | 784,970 | 861,415 | |||||
Total Long-Term Liabilities | 784,970 | 861,415 | |||||
Total Liabilities | 3,847,592 | 2,677,838 | |||||
Shareholders’ Equity: | |||||||
Cumulative Convertible Series A Preferred Stock; | |||||||
par value $0.01 per share, 1,000,000 shares authorized; 63,750 shares issued | |||||||
and outstanding at September 30, 2022 and December 31, 2021 | 638 | 638 | |||||
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, 2022 and December 31, 2021 | - | - | |||||
Common stock; par value $0.01 per share, 250,000,000 shares authorized; | |||||||
19,763,955 and 16,761,513 shares issued and outstanding | |||||||
at September 30, 2022 and December 31, 2021, respectively. | 197,640 | 196,810 | |||||
Additional Paid-In Capital | 57,317,483 | 56,941,209 | |||||
Accumulated Deficit | (45,718,590 | ) | (43,543,576 | ) | |||
Total Shareholders’ Equity | 11,797,171 | 13,595,080 | |||||
Total Liabilities and Shareholders’ Equity | $ | 15,644,763 | $ | 16,272,918 | |||
. |
TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(UNAUDITED) | |||||||||||||||||
For The Three Months Ended | For The Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Sales, net | $ | 1,759,620 | $ | 2,204,569 | $ | 5,526,598 | $ | 5,743,549 | |||||||||
Cost of Sales | 688,633 | 890,273 | 2,113,624 | 2,252,133 | |||||||||||||
Gross Profit | 1,070,987 | 1,314,296 | 3,412,974 | 3,491,415 | |||||||||||||
Operating Expenses: | |||||||||||||||||
Professional Fees | 106,411 | 117,654 | 391,737 | 397,928 | |||||||||||||
Depreciation and Amortization | 82,619 | 69,805 | 247,662 | 225,666 | |||||||||||||
Selling Expenses | 365,054 | 465,304 | 1,271,788 | 1,275,137 | |||||||||||||
Research and Development | 118,182 | 93,274 | 254,608 | 494,645 | |||||||||||||
Consulting Fees | 43,012 | 63,805 | 145,757 | 265,588 | |||||||||||||
General and Administrative | 1,009,229 | 991,090 | 3,277,485 | 4,022,650 | |||||||||||||
Total Operating Expenses | 1,724,507 | 1,800,933 | 5,589,037 | 6,681,614 | |||||||||||||
Income (loss) from Operations | (653,520 | ) | (486,637 | ) | (2,176,063 | ) | (3,190,199 | ) | |||||||||
Other Income (Expense): | |||||||||||||||||
Gain Upon Debt Extinguishment | - | - | - | 414,583 | |||||||||||||
Interest Income | 370 | 79 | 1,048 | 698 | |||||||||||||
Interest Expense | - | - | - | (1,034 | ) | ||||||||||||
Total Other Income (Expense) | 370 | 79 | 1,048 | 414,247 | |||||||||||||
Income (loss) before income taxes | (653,150 | ) | (486,558 | ) | (2,175,015 | ) | (2,775,952 | ) | |||||||||
Provision for Income Taxes | - | - | - | - | |||||||||||||
Net Income (loss) | $ | (653,150 | ) | $ | (486,558 | ) | $ | (2,175,015 | ) | $ | (2,775,952 | ) | |||||
Net income (loss) Per Common Share | |||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.17 | ) | |||||
Diluted | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.17 | ) | |||||
Basic Weighted Average Common Shares Outstanding | 19,758,520 | 16,843,045 | 19,736,666 | 16,805,145 | |||||||||||||
Diluted Weighted Average Common Shares Outstanding | 19,758,520 | 16,843,045 | 19,736,666 | 16,805,145 | |||||||||||||
The following is a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA (in thousands, except percentages; unaudited):
For The Three Months Ended | For The Nine Months | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net income (loss) | $ | (653,150 | ) | $ | (486,558 | ) | $ | (2,175,015 | ) | $ | (2,775,952 | ) | |||||
Interest Income | (370 | ) | (79 | ) | (1,048 | ) | (698 | ) | |||||||||
Interest Expense | - | - | - | 1,034 | |||||||||||||
Depreciation and Amortization | 82,619 | 69,805 | 247,662 | 225,666 | |||||||||||||
Other | - | - | - | - | |||||||||||||
EBITDA (Loss) | $ | (570,902 | ) | $ | (416,832 | ) | $ | (1,928,402 | ) | $ | (2,549,950 | ) | |||||
Equity Compensation Expense | - | - | 297,766 | - | |||||||||||||
Other | - | - | - | - | |||||||||||||
Adjusted EBITDA (Loss) | $ | (570,902 | ) | $ | (416,832 | ) | $ | (1,630,634 | ) | $ | (2,549,950 | ) | |||||
Net revenue | $ | 1,759,620 | $ | 2,204,569 | $ | 5,526,598 | $ | 5,743,549 | |||||||||
Adjusted EBITDA Margin | -32% | -19% | -30% | -44% |
INVESTOR RELATIONS CONTACT:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
This email address is being protected from spambots. You need JavaScript enabled to view it.
Last Trade: | US$0.71 |
Daily Change: | 0.0069 0.98 |
Daily Volume: | 6,878 |
Market Cap: | US$14.270M |
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