TOMI Environmental Solutions Secures $1.2 Million Contract with Enviro-Mist Inc. Driving SteraMist Growth in the Pharmaceutical Market

Rhea-AI Summary

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.

Positive

• Secured $1.2 million contract for 20 SteraMist Environment Systems
• Gained exclusive partnership for pharmaceutical market in Western US
• Multi-year contract expected to generate $60,000 annual recurring revenue
• Potential for increased market penetration in pharmaceutical sector
• Positioned for large-scale service sales and revenue growth

Negative

• None.

Insights

Financial Analyst

The $1.2 million contract with Enviro-Mist Inc. marks a significant financial milestone for TOMI Environmental Solutions. This partnership not only brings immediate revenue but also promises an estimated $60,000 annually from BIT Solution sales. For investors, the key takeaway here is the immediate impact on quarterly financials and the potential for recurring revenue. The $1.2 million will be recognized in the second quarter, likely boosting the company's reported earnings for that period. This aligns well with TOMI's razor/razorblade business model, where the initial sale can lead to ongoing revenue streams. Moreover, this deal expands TOMI's presence in the pharmaceutical sector, which is known for its stringent decontamination requirements. This can be seen as a validation of their technology, potentially leading to further contracts in the sector.

Market Research Analyst

The strategic partnership with Enviro-Mist Inc. to penetrate the pharmaceutical market in Western United States is a significant step for TOMI. This region has been relatively untapped by the company and this expansion can enhance their market footprint. The pharmaceutical industry's stringent decontamination standards mean that a proven, effective solution like SteraMist could see high adoption rates. Moreover, the recurring revenue from BIT solutions suggests a stable long-term growth opportunity. Given the growing importance of infection control in various industries, TOMI's strategic positioning could make them a key player not just in pharmaceuticals but across multiple verticals that require rigorous decontamination protocols.

Tech Expert

From a technological perspective, TOMI's Binary Ionization Technology (BIT) and its SteraMist product lineup are noteworthy. The use of ionized Hydrogen Peroxide (iHP) for decontamination is both innovative and effective. The technology's ability to create a germ-killing aerosol that acts like a gas makes it suitable for varied environments, from pharmaceutical facilities to more general commercial settings. The partnership with Enviro-Mist signifies confidence in TOMI's technology, as they are expanding their fleet of SteraMist machines. This not only validates the technological efficacy but also sets a precedent for future expansions and partnerships. As more industries recognize the need for advanced decontamination solutions, TOMI’s technology is well-positioned to meet these demands.

FREDERICK, Md., July 24, 2024 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ: TOMZ), a global company specializing in disinfection and decontamination solutions, today announced that Enviro-Mist Inc. a division of EMAQ Group purchased twenty (20) SteraMist Environment Systems, generating approximately $1.2 Million in revenue which will be recognized in the second quarter of 2024.

Enviro-Mist Inc. a division of EMAQ Group, (https://emaqgroup.com/) has joined the iHP Corporate Service team as an exclusive partner for the pharmaceutical market in the Western United States, a territory we do not currently have a large footprint for disinfection services. Enviro-Mist Inc. is coming onboard with a multi-year contract in place for a single location of one of our long-standing and valued customers. We currently estimate this arrangement to generate approximately $60,000 of revenue in BIT Solution sales a year.

This strategic partnership aims to enhance the market penetration of SteraMist iHP decontamination solutions within the pharmaceutical industry and is expected to grant SteraMist iHP technology the significant traction it deserves, delivering decontamination solutions that meet the stringent demands of the pharmaceutical sector. With growing interest in our cutting-edge technology within the evolving decontamination services landscape, we are strategically positioned for large-scale service sales, ongoing revenue growth, and increased presence and visibility in the industry.

"Enviro-Mist Inc. has demonstrated confidence in our technology by expanding its fleet of SteraMist machines through this substantial acquisition," said Elissa J. Shane, TOMI’s Chief Operating Officer. "This partnership emphasizes our shared commitment to advancing and delivering exceptional value to our customers and we anticipate a long and successful collaboration. With this partnership, SteraMist iHP technology is poised to gain substantial traction in the pharmaceutical sector, providing decontamination that meets the stringent demands of this sector while generating recurring BIT solution revenue as part of our razor/razorblade model."

Dave Salas, EMAQ’s President, added, "It has been a pleasure working with TOMI SteraMist over the many years, and we are excited about the opportunities this strategic arrangement will bring. We are confident in the growth potential for both our disinfecting division and TOMI as we continue to grow our client base for iHP decontamination servicing."

Enviro-Mist Inc. a Division of EMAQ Group

Providing powerful and consistent decontamination services for multiple industries.

Enviro-Mist Inc. specializes in the disinfecting of pharmaceutical manufacturing facilities. However, our services include multiple disciplines that allow us to service a great number of vertical markets. Contract services that help industries meet their industry regulatory standards and compliance or those that simply benefit from thorough bio-decontamination as needed.

Enviro-Mist Inc. has become the forerunner of contract sterilizing services nationwide. Delivering consistent and effective results that are verified by independent testing, biological indicators and our satisfied clients.

https://emaqgroup.com/

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, statements relating to expected revenue generated by sales to EMAQ Group and TOMI’s growth potential. 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.

INVESTOR RELATIONS CONTACT:

John Nesbett/Roz Christian

IMS Investor Relations

tomi@imsinvestorrelations.com

FAQ

What is the value of the contract TOMI Environmental Solutions (TOMZ) secured with Enviro-Mist Inc.?

TOMI Environmental Solutions (TOMZ) secured a $1.2 million contract with Enviro-Mist Inc. for the purchase of 20 SteraMist Environment Systems.

When will TOMI Environmental Solutions (TOMZ) recognize the revenue from the Enviro-Mist contract?

TOMI Environmental Solutions (TOMZ) will recognize the $1.2 million revenue from the Enviro-Mist contract in the second quarter of 2024.

What is the estimated annual recurring revenue from the multi-year contract with Enviro-Mist for TOMI Environmental Solutions (TOMZ)?

The multi-year contract with Enviro-Mist is estimated to generate approximately $60,000 in annual recurring revenue from BIT Solution sales for TOMI Environmental Solutions (TOMZ).

Which market segment is TOMI Environmental Solutions (TOMZ) targeting with the Enviro-Mist partnership?

TOMI Environmental Solutions (TOMZ) is targeting the pharmaceutical market in the Western United States through its partnership with Enviro-Mist Inc.