TOMI Environmental Solutions, Inc. Reports First Quarter 2024 Financial Results
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.
- Gross margin improved to 60.2% from 59.5%.
- Received a $2 million order from the Department of Homeland Security for 16 SteraMist systems.
- Secured a $600,000 contract with a California-based life sciences company.
- Sales backlog of $900,000 expected to be recognized in the coming quarters.
- Continued demand growth for CES systems and iHP services, with 21% quarter-over-quarter growth in iHP service revenue.
- Qualified two CES systems delivered in 2022, expected to generate $250,000 in annual BIT Solution revenue.
- Company invited to submit a proposal for a $3 million Department of Defense grant.
- Total net revenue decreased to $1.1 million from $1.58 million in Q1 2023.
- Operating loss increased to $1.23 million from $1.19 million.
- Net loss increased to $1.31 million or $0.07 per share, compared to $1.19 million or $0.06 per share.
Insights
Revenue decreased from
However, the company’s cash position is worth noting. With
Additionally, the Department of Homeland Security's inclusion of SteraMist technology and a potential
The company’s involvement with the Department of Homeland Security and the Department of Defense indicates strong government relationships, which could provide a reliable revenue stream. The expected procurement of SteraMist systems to decontaminate the Plum Island Animal Disease Center suggests endorsement and confidence in the technology.
Moreover, CES systems qualification by a multinational pharmaceutical company is a positive indicator of product reliability and market acceptance. Given the increasing demand in pharmaceuticals and healthcare, this could signal a growth trend. The revenue contribution from BIT solution tied to CES systems further suggests a recurring revenue model, beneficial for long-term stability.
Increased sales order activity and new contracts, such as the
The recognition of TOMI’s SteraMist technology by government bodies such as the Department of Homeland Security is significant, underlining its efficacy and potential applications in critical environments. The inclusion in the Science and Technology Directorate Budget and the potential $2 million order underscore the technology’s credibility and adoption.
The qualification of CES systems by a major pharmaceutical company is crucial. These systems are significant consumers of the Binary Ionization Technology solution, creating a steady demand pipeline. It reflects growing confidence in TOMI’s products within the life sciences sector. This qualification can lead to increased usage in regulatory environments, boosting recurring revenue from consumables and services.
The focus on expanding government relationships and proposals for substantial grants like the
FREDERICK, Md., May 15, 2024 (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 first quarter ended March 31, 2024.
TOMI Chief Executive Officer, Dr. Halden Shane, stated, “Although revenue was below expectation in the first quarter, we saw continued growth in our sales pipeline, as well as an increase in demand for our CES systems and iHP corporate service. In addition to the
“One of the notable wins in the first quarter was a notification from the Department of Homeland Security that our SteraMist technology has been included in their Science and Technology Directorate Budget overview. The department expects to purchase 16 SteraMist Environment Systems for the amount of approximately
“In the first quarter we continued to develop our government relationships. This quarter TOMI was invited to submit a proposal and apply to the Department of Defense to participate in a
“We are off to a solid start in 2024 and will continue to focus on executing our strategies to grow revenues, expand business development and deliver improved results and value for our shareholders,” Dr. Shane concluded.
Financial Results for the three months ended March 31, 2024, compared to March 31, 2023
- Total net revenue was
$1,114,000 compared to$1,582,000. - Gross margin was
60.2% compared to59.5% . - Operating loss was (
$1,226,000) , compared to ($1,188,000) . - Net loss was (
$1,310,000) or ($0.07) per basic and diluted share, compared to ($1,187,000) or ($0.06) per basic and diluted share.
Balance sheet highlights as of March 31, 2024
- Cash and cash equivalents were approximately
$1.1 million . - Working capital was
$6.6 million . - Shareholders’ equity was
$7.1 million .
Recent Business Highlights:
- Overall sales volume and sales order activity for the first quarter of 2024 amounted to
$2,000,000 which consisted of approximately$1,100,000 in recognized revenue and an approximate sales backlog of$900,000 at the end of the quarter. - Continued growth in demand for CES with the signing of a new contract for a SteraMist iHP Custom Engineered System (CES) installation with a California-based life sciences company. The contracted iHP Custom Engineered System (CES) is valued at approximately
$600,000. T his system, featuring six applicators, will be integrated into a clinical suite, and is expected to be fully installed by the end of the third quarter in 2024. - Informed by the Department of Homeland Security that 16 SteraMist Environment Systems, totaling approximately
$2,000,000 , have been allocated from their Science and Technology Directorate Budget for decontamination support at the Plum Island Animal Disease Center - Continued increase in demand for our SteraMist iHP service where we saw quarter over quarter growth of
21% . For the three months ended March 31, 2024 and 2023, our iHP service revenue was$371,000 and$306,000 , respectively. - Expansion in its SteraMist iHP Corporate Service contracts with the addition of new partners including the University of Texas and Rising Pharmaceuticals reaffirming its position as a leading provider of decontamination services to corporate clients in the life sciences industry.
- Recently received notification from a U.S. based multinational pharmaceutical company that two CES systems delivered in 2022 have been qualified. As previously announced, the expected annual BIT Solution revenue of the systems could amount to
$250,000 once in use. - Attended and presented our SteraMist brand of products at various tradeshows, most notable were Maryland Tech Council Event: Technology Transformation Conference, National Air Duct Cleaners of America Conference, AORN Surgical Expo, NFMT + Clean Building Expo, Indoor Ag-Con + Grocery and PDA Annual Meeting.
- Received the Gold Safety Award from Highwire in recognition of strong safety practices and performance.
Conference Call Information
TOMI will hold a conference call to discuss first quarter 2024 results at 4:30 p.m. ET today, May 15, 2024.
To participate in the call by phone, dial (844) 369-8770 approximately five minutes prior to the scheduled start time and request the "TOMI Environmental Solutions first quarter earnings call." International callers please dial (862) 298-0840. To access the live webcast or view the press release, please visit the Investor Relations section of the TOMI website or register at the following link: https://www.webcaster4.com/Webcast/Page/2262/50600.
A replay of the teleconference will be available until Wednesday, May 29, 2024, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code: 50600. 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 https://www.steramist.com/ or contact us at info@tomimist.com.
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, ability to accelerate revenue; financial performance and operating results for 2024; upcoming launch of new products; expected growth in sales pipeline and market demand; revenue opportunities of CES products 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, our ability to acquire new customers and expands sales; 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, 2023 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.
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| March 31, 2024 (Unaudited) | December 31, 2023 | ||||||
| Cash and Cash Equivalents | $ | 1,093,219 | $ | 2,339,059 | |||
| Accounts Receivable - net | 2,115,691 | 2,429,929 | |||||
| Other Receivables | 164,150 | 164,150 | |||||
| Inventories | 4,645,885 | 4,627,103 | |||||
| Vendor Deposits | 124,427 | 29,335 | |||||
| Prepaid Expenses | 384,003 | 371,298 | |||||
| Total Current Assets | 8,527,375 | 9,960,874 | |||||
| Property and Equipment – net | 1,060,640 | 1,048,642 | |||||
| Other Assets: | |||||||
| Intangible Assets – net | 1,118,369 | 1,123,246 | |||||
| Operating Lease - Right of Use Asset | 451,514 | 467,935 | |||||
| Long Term Accounts Receivable - net | 206,240 | 206,240 | |||||
| Other Assets | 593,930 | 550,677 | |||||
| Total Other Assets | 2,370,053 | 2,348,098 | |||||
| Total Assets | $ | 11,958,068 | $ | 13,357,614 | |||
| | | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts Payable | $ | 1,351,118 | $ | 1,267,029 | |||
| Accrued Expenses and Other Current Liabilities | 472,525 | 675,491 | |||||
| Deferred Revenue | 13,659 | - | |||||
| Current Portion of Long-Term Operating Lease | 118,911 | 115,658 | |||||
| Total Current Liabilities | $ | 1,956,213 | $ | 2,058,178 | |||
| Long-Term Liabilities: | |||||||
| Long-Term Operating Lease, Net of Current Portion | 612,017 | 642,527 | |||||
| Convertible Notes Payable, net of discount of | 2,313,634 | 2,298,015 | |||||
| Total Long-Term Liabilities | 2,925,651 | 2,940,542 | |||||
| Total Liabilities | $ | 4,881,864 | $ | 4,998,720 | |||
| Commitments and Contingencies | - | - | |||||
| Shareholders’ Equity: | |||||||
| Cumulative Convertible Series A Preferred Stock; par value | 638 | 638 | |||||
| Cumulative Convertible Series B Preferred Stock; | - | - | |||||
| Common stock; par value | 199,553 | 199,240 | |||||
| Additional Paid-In Capital | 58,012,432 | 57,985,245 | |||||
| Accumulated Deficit | (51,136,419 | ) | (49,826,229 | ) | |||
| Total Shareholders’ Equity | 7,076,204 | 8,358,894 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 11,958,068 | $ | 13,357,614 | |||
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| For The Three Months Ended | |||||||||
| March 31, | |||||||||
| 2024 | 2023 | ||||||||
| Sales, net | $ | 1,114,087 | $ | 1,582,172 | |||||
| Cost of Sales | 443,419 | 640,935 | |||||||
| Gross Profit | 670,668 | 941,237 | |||||||
| Operating Expenses: | |||||||||
| Professional Fees | 197,999 | 137,185 | |||||||
| Depreciation and Amortization | 77,921 | 88,776 | |||||||
| Selling Expenses | 289,069 | 376,653 | |||||||
| Research and Development | 67,971 | 70,520 | |||||||
| Consulting Fees | 113,635 | 75,455 | |||||||
| General and Administrative | 1,150,549 | 1,380,794 | |||||||
| Total Operating Expenses | 1,897,144 | 2,129,383 | |||||||
| Income (loss) from Operations | (1,226,476 | ) | (1,188,146 | ) | |||||
| Other Income (Expense): | |||||||||
| Interest Income | 9,906 | 659 | |||||||
| Interest Expense | (93,620 | ) | - | ||||||
| Total Other Income (Expense) | (83,714 | ) | 659 | ||||||
| Income (loss) before income taxes | (1,310,190 | ) | (1,187,487 | ) | |||||
| Provision for Income Taxes | - | - | |||||||
| Net Income (loss) | $ | (1,310,190 | ) | $ | (1,187,487 | ) | |||
| Net income (loss) Per Common Share | |||||||||
| Basic | $ | (0.07 | ) | $ | (0.06 | ) | |||
| Diluted | $ | (0.07 | ) | $ | (0.06 | ) | |||
| Basic Weighted Average Common Shares Outstanding | 19,954,511 | 19,806,622 | |||||||
| Diluted Weighted Average Common Shares Outstanding | 19,954,511 | 19,806,622 | |||||||
INVESTOR RELATIONS CONTACT:
John Nesbett/Roz Christian
IMS Investor Relations
tomi@imsinvestorrelations.com
FAQ
What were TOMI Environmental Solutions' Q1 2024 financial results?
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What is the gross margin reported by TOMI for Q1 2024?
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What grant proposal has TOMI submitted recently?
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