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Overview
TOMI Environmental Solutions Inc. (NASDAQ: TOMZ) is a globally recognized decontamination and infection prevention company that provides innovative environmental solutions focused on indoor surface disinfection. Utilizing its proprietary Binary Ionization Technology (BIT), the company manufactures, sells, and licenses its SteraMist platform of products, which harness a uniquely engineered, low concentration hydrogen peroxide solution. This state‐of‐the‐art technology, developed in collaboration with defense research agencies, has been instrumental in addressing chemical and biological threats, establishing TOMI as a trusted partner in environments where precision, safety, and efficiency are paramount.
Technology and Innovation
The cornerstone of TOMI’s offerings is its patented BIT technology. This innovative process activates and ionizes a 7.8% hydrogen peroxide solution to generate a fine mist or fog of ionized Hydrogen Peroxide (iHP). The resulting aerosol acts as a non‐corrosive, efficient decontaminant that eliminates microorganisms including bacteria, viruses, and fungi. Developed under a defense grant in partnership with agencies such as DARPA, this technology was engineered in response to critical contamination threats and remains unique in its ability to disinfect a range of sensitive materials, from delicate electronics to high-traffic facilities.
Products and Services
The SteraMist brand distinguishes TOMI’s comprehensive product portfolio, which includes systems designed for surface and environmental decontamination. Key products encompass:
- SteraMist Surface Unit – a solution for targeted area decontamination.
- SteraMist Environment System – designed for whole-room or facility-wide disinfection.
- SteraMist Total Disinfection Cart – enabling mobile deployment in diverse settings.
- Custom Engineered Systems (CES) – tailored to meet specific industrial and institutional decontamination requirements.
In addition to manufacturing and direct sales, the company leverages a licensing model for its proprietary technology, thereby establishing a recurring revenue stream and broadening its market reach. The integration of service and training programs ensures that customers consistently achieve optimal disinfection results while adhering to stringent safety protocols.
Industries Served
TOMI’s decontamination solutions are engineered for a broad spectrum of applications. Its products and systems are widely used in:
- Healthcare Facilities: Hospitals, medical centers, and biosafety laboratories that require rigorous infection control.
- Life Sciences and Research: Pharmaceutical labs and research institutions where contamination control is critical.
- Commercial and Institutional Buildings: Office complexes, schools, and universities that benefit from non-corrosive, high-efficiency disinfection.
- Transportation and Public Venues: Cruise ships, sports facilities, and public transportation centers needing rapid, effective sanitation.
- Government and Defense: Facilities that require robust decontamination solutions to address both routine and emergency threats.
Business Model and Value Proposition
TOMI Environmental Solutions operates on a multi-faceted business model that includes direct sales, licensing of its patented BIT technology, and customized service offerings. This diversified approach allows the company to generate recurring revenues while maintaining high margins through its innovative decontamination solutions. The razor/razor-blade model is evident in how the company leverages its foundational BIT technology to drive ongoing services and integration, setting a strong standard in the field of infection prevention.
Market Position and Competitive Landscape
In a competitive environment where effective decontamination is critical, TOMI differentiates itself through its advanced technological platform and a rich history in research-backed innovation. The company has carved out a unique niche by developing a non-corrosive, efficient cleaning solution that minimizes downtime and protects sensitive materials. This is particularly vital in sectors such as healthcare and life sciences, where operational continuity and precision decontamination are non-negotiable. TOMI’s adherence to rigorous safety standards and its capacity to create tailored solutions further reinforce its standing within the market.
Commitment to Quality, Safety, and Compliance
TOMI demonstrably maintains high levels of expertise and trustworthiness through ongoing training programs, comprehensive application protocols, and adherence to industry-specific regulatory standards. The company is associated with multiple professional organizations dedicated to biosafety and infection control, which underscores its commitment to quality and continuous improvement. This robust framework of operational excellence instills confidence in both the efficacy and safety of its decontamination solutions.
Operational Excellence and Global Reach
With a global footprint, TOMI Environmental Solutions has established partnerships with a diverse set of clients, ranging from academic institutions and commercial enterprises to government agencies and military installations. Its emphasis on scalable, customizable systems enables it to address varied decontamination needs across different geographic regions. The company’s proficiency in rapidly deploying technology in response to emergent threats underscores its operational flexibility and technical expertise, ensuring that indoor environments remain safe and contamination-free.
Integrated Research and Development
The continuous evolution of TOMI’s product line is supported by a strong R&D infrastructure dedicated to advancing decontamination technology. By integrating feedback from practical applications in high-stakes environments, the company refines its solutions to enhance performance, safety, and ease of use. This iterative process not only fosters innovation but also solidifies the company’s reputation as an expert in the field of environmental decontamination and infection control.
Overall, TOMI Environmental Solutions stands as a comprehensive provider of decontamination and infection prevention solutions. Its innovative BIT technology and versatile SteraMist platform address the growing need for swift, effective, and safe decontamination across multiple industries. This enduring commitment to technological excellence, operational reliability, and customer-focused innovation positions TOMI as a significant entity within its competitive landscape, catering to stakeholders who value precision, efficiency, and state-of-the-art safety protocols.
By offering reliable, scalable, and innovative decontamination systems, TOMI not only meets current market demands but also continually refines its solutions to address evolving challenges in the realm of infection prevention and environmental safety.
TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) has expanded its partnership with a global leader in laboratory testing and diagnostics services. The company received a $715,000 order for SteraMist mobile equipment and a Custom Engineered System (CES) to support the expansion of the client's Wisconsin facility. The order includes two mobile Environment Systems and a seven-applicator iHP CES system for three decontamination rooms.
TOMI's COO, Elissa J. Shane, highlighted the effectiveness of their SteraMist iHP technology in meeting the stringent demands of the life sciences sector. The company anticipates securing contracts with various institutions and expects growth within its custom and integration lines, which will drive recurring BIT-solution revenue.
TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) reported 170% sequential growth in Q2 2024 revenue, reaching $3,013,000 with break-even EPS. The company achieved profitability with a net income of $30,000, compared to a net loss in Q2 2023. Key highlights include:
- Operating income of $122,000
- Gross margin improvement to 61.5%
- 8.6% year-over-year revenue growth
- Strong mobile equipment sales, accounting for over 60% of revenue
- 31% increase in BIT Solution sales compared to Q2 2023
- 130% growth in international revenue
TOMI's CEO, Dr. Halden Shane, attributed the growth to revitalized revenue and cost reduction initiatives. The company's focus on expanding business development and improving shareholder value has led to nearly matching the entire 2023 mobile equipment sales in just the first half of 2024.
TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ), a global disinfection and decontamination solutions company, has announced it will report its second quarter 2024 financial results on August 1, 2024, after market close. The company will hold a conference call at 4:30 p.m. ET the same day to discuss the results.
Investors can participate in the call by dialing (888) 506-0062 (US) or (973) 528-0011 (International). A live webcast will also be available on TOMI's Investor Relations website. A replay of the call will be accessible until August 15, 2024, using the replay access code: 50974.
TOMI specializes in environmental solutions for disinfection, utilizing its patented Binary Ionization Technology® (BIT™) platform, which uses a low percentage hydrogen peroxide as its active ingredient.
TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) announced preliminary unaudited revenue for Q2 2024. Revenue is expected to be approximately $3.0 million, a 10% increase year-over-year and a 170% increase sequentially. BIT Solution sales are projected to rise by about 31% year-over-year and 171% sequentially.
CEO Dr. Halden Shane attributes this growth to successful expansion of sales channels and customer base. The company's Custom Engineered Systems (CES) and SteraMist Hybrid solution are driving long-term growth. TOMI expects continued growth in the second half of 2024, aligning with analyst estimates. Full Q2 results are expected to be announced in early August 2024.
TOMI Environmental Solutions (NASDAQ: TOMZ) has secured a $1.2 million contract with Enviro-Mist Inc., a division of EMAQ Group, for the purchase of 20 SteraMist Environment Systems. This revenue will be recognized in Q2 2024. Enviro-Mist has joined TOMI's iHP Corporate Service team as an exclusive partner for the pharmaceutical market in the Western United States.
The partnership includes a multi-year contract for a single location of a long-standing customer, estimated to generate approximately $60,000 in annual BIT Solution sales. This strategic alliance aims to enhance SteraMist iHP technology's market penetration in the pharmaceutical industry, positioning TOMI for large-scale service sales and increased industry presence.
TOMI Environmental Solutions (NASDAQ: TOMZ) is collaborating with partners to combat the global avian influenza (H5N1) outbreak. Announced on June 13, 2024, the outbreak has affected 48 states and 50 jurisdictions, posing significant risks to poultry, dairy farms, and public health. TOMI's Binary Ionization Technology (BIT) and SteraMist products are being utilized to mitigate the spread of the virus. The company sees this as a strategic opportunity for growth in the food safety and agricultural sectors. CEO Dr. Halden Shane emphasizes the importance of advanced disinfection methods and biosecurity measures to ensure business continuity and animal health.
TOMI Environmental Solutions (NASDAQ: TOMZ) announced two new purchase agreements with leading pharmaceutical companies. The first agreement involves a SteraMist Environment System and validation services for a major private pharmaceutical company in Mexico, marking an expansion of TOMI's global operations. The second agreement includes the sale of a SteraMist Hybrid System to BeSpoke Pharmaceuticals, a 503B product manufacturer in Nevada, valued at over $200,000. These deals highlight TOMI's strategic growth and market reach in the Life Sciences sector, underscoring their innovation and potential for long-term growth.
TOMI Environmental Solutions, a global leader in disinfection technology, has announced cost reduction efforts aimed at achieving long-term profitability. The company plans to reduce executive compensation by 30% and cut external consulting fees, targeting a 30% reduction in operational cash use, approximately $500,000, by the end of 2024. Despite these cuts, TOMI will invest in expanding its sales team and global distribution network.
Key business updates include the successful installation of multiple Custom Engineered Systems (CES) expected to generate around $600,000 starting in 2025. TOMI is also in the final stages of securing a $450,000 CES contract with a prominent U.S. cell and gene therapy facility. The company is optimistic about securing new contracts, anticipating an increase in iHP Corporate Services revenue and ongoing negotiations with four major decontamination manufacturers.
Additionally, TOMI has signed a distribution deal with India's STS Technocrat and made its first sale under a Vizient contract, promoting its SteraMist technology.
TOMI Environmental Solutions (NASDAQ: TOMZ) announced its Q1 2024 financial results, reporting total net revenue of $1.1 million, a decrease from $1.58 million in Q1 2023. The company's gross margin improved to 60.2%, while operating loss increased to $1.23 million. Net loss for the quarter was $1.31 million or $0.07 per share. Significant developments include a $2 million order from the Department of Homeland Security for 16 SteraMist systems and a $600,000 contract with a California life sciences company. Additionally, the company submitted a proposal for a $3 million grant from the Department of Defense. The sales backlog at the end of Q1 2024 was $900,000, expected to be recognized in subsequent quarters.
TOMI Environmental Solutions, Inc. will discuss its first-quarter 2024 financial results on May 15, 2024, after market close. The company specializes in disinfection and decontamination solutions using its patented Binary Ionization Technology platform. TOMI will host a conference call to review the results at 4:30 p.m. ET.