BEVERLY HILLS, Calif., Aug. 11, 2015 (GLOBE NEWSWIRE) -- TOMI™ Environmental Solutions, Inc. (OTCQB:TOMZ) (TOMI), a global bacteria decontamination and infection prevention company, reported its financial results for the three months ended June 30, 2015.
Dr. Halden Shane, TOMI's Chief Executive Officer, stated: "TOMI continues to build momentum for our products and execute our plan to address the large-scale opportunities in the infection control market, and the second quarter represented an important juncture in our evolution. We received registration from the Environmental Protection Agency (EPA) for our SteraMist™ Binary Ionization Technology® (BIT™) product, which is now an approved hospital product. With this registration in hand, we have begun ramping-up our efforts to escalate SteraMist adoption domestically and globally. In addition, we raised $8 million via a strategic investment which we used to retire our debt, increase working capital and significantly strengthen our foundation on which to grow."
"As we look ahead, we are very encouraged by our opportunities. Our SteraMist adoption strategy is supported by several initiatives:
- First, we are expanding TOMI Service Network (TSN™), which provides our SteraMist products and training for large-event mobilization response. TSN rapid response infection prevention specialists will license and sell our SteraMist platform regionally, nationally and internationally.
- Second, we continue to develop products that leverage our BIT to provide innovative solutions for the decontamination and disinfection of indoor air and surfaces.
- Third, we are also maintaining prudent cost controls while also investing in our future, including improving manufacturing, hiring key personnel and expanding the TSN.
- Lastly, we continue to invest in furthering our EPA, USDA and FDA claims to unlock even more opportunities for market growth."
Financial Results for the Three Months Ended June 30, 2015 Compared to 2014
- Net revenue was $740,000, compared to $416,000.
- Gross margins were 62.7%, compared to 66.8%. Loss from operations was $1.9 million, compared to $724,000.
- During the three-month period ended June 30, 2015, the Company recorded several non-cash charges related to the retirement of its convertible notes:
- Amortization of debt discounts of $3.0 million;
- Fair value adjustment of derivative liability of $1.1 million;
- Induced conversion loss of $930,000;
- Interest expense of $127,000; and
- Amortization of deferred financing costs of $115,000.
- Net loss, including the aforementioned non-cash charges, was $7.2 million, or $0.08 per share, compared to net income of $416,000, or $0.00 per diluted share.
- At June 30, 2015, cash and cash equivalents were $3.7 million and working capital was $4.5 million, an increase of $6.3 million over the $1.8 million working capital deficit reported at December 31, 2014.
Recent Business Highlights
- Received EPA registration of TOMI's SteraMist™ with BIT™ as an approved hospital product on June 24th.
- Raised $8 million via a strategic investment as announced on June 29th.
- Expanded the TSN™ with 16 new members.
- Launched www.TOMIServiceNetwork.com providing significant educational and informational resources to the TSN members.
Conference Call Information
To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10070901. To listen to the webcast or view the press release, please visit the Investor Relations section of the TOMI website at:http://www.tomiesinc.com/us/investors/.
The replay can be accessed for up to 24 hours starting at 8:00 p.m. ET the day of the call by dialing 1-877-344-7529 or 1-412-317-0088, passcode # 10070901. 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.
About TOMI™ Environmental Solutions, Inc.
TOMI™ Environmental Solutions, Inc. (OTCQB:TOMZ) is a global bacteria decontamination and infectious disease control company, providing eco-friendly environmental solutions for indoor surface decontamination through manufacturing, sales and licensing of our premier platform of Hydrogen Peroxide based products that uses Binary Ionization Technology® (BIT™) , a state of the art technology for the production of its six-log mist represented by the TOMI™ SteraMist™ brand.
TOMI's products are designed to service a broad spectrum of commercial structures including hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, for non-food safety in meat and produce processing facilities, military barracks, 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 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, The Restoration Industry Association, Indoor Air Quality Association, and The International Ozone Association. For additional product information, visit www.tomiesinc.com or contact us at firstname.lastname@example.org.
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 STATEMENT OF OPERATIONS|
|For The Three Months Ended||For The Six Months Ended|
|June 30,||June 30,|
|Cost of Sales||275,968||138,140||554,444||251,986|
|Depreciation and Amortization||123,957||112,388||249,210||224,294|
|Research and Development||19,667||65,851||41,857||97,142|
|Equity Compensation Expense||1,385,743||263,173||1,510,830||1,405,522|
|General and Administrative||270,272||342,697||541,586||544,342|
|Total Operating Expenses||2,322,737||1,002,561||3,144,657||2,723,433|
|Loss from Operations||(1,858,770)||(724,246)||(2,282,780)||(2,285,935)|
|Other Income (Expense):|
|Amortization of Deferred Financing Costs||(115,175)||(85,388)||(199,625)||(169,838)|
|Amortization of Debt Discounts||(3,032,685)||(142,487)||(3,996,033)||(217,455)|
|Fair Value Adjustment of Derivative Liability||(1,137,807)||1,494,832||(3,810,955)||3,246,137|
|Induced Conversion Costs||(930,383)||--||(930,383)||--|
|Total Other Income (Expense)||(5,342,899)||1,140,107||(9,190,695)||2,604,588|
|Net Income (Loss)||($7,201,669)||$415,861||($11,473,475)||$318,653|
|Net Income (Loss) Per Common Share|
|Basic Weighted Average Common Shares Outstanding||87,767,261||80,225,890||85,828,777||80,186,585|
|Diluted Weighted Average Common Shares Outstanding||87,767,261||126,938,242||85,828,777||124,740,705|
|TOMI ENVIRONMENTAL SOLUTIONS, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEET|
|Cash and Cash Equivalents||$3,680,381||$160,560|
|Cash – Restricted (Note 6)||--||105,776|
|Accounts Receivable - net||823,309||441,153|
|Inventories (Note 3)||956,119||772,833|
|Deferred Financing Costs – net (Note 6)||--||199,625|
|Total Current Assets||5,587,835||1,751,995|
|Property and Equipment – net (Note 4)||243,390||288,159|
|Intangible Assets – net (Note 5)||2,472,302||2,657,056|
|Total Other Assets||2,477,002||2,663,608|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts Payable and Accrued Expenses||$673,647||$448,063|
|Accrued Interest on Convertible Notes (Note 6)||--||211,417|
|Accrued Officers Compensation (Note 9)||54,000||41,000|
|Common Stock to be Issued (Note 12)||330,726||35,925|
|Derivative Liability (Note 7)||--||1,728,883|
|Convertible Notes Payable, net of discount at December 31, 2014 of $3,996,033 (Note 6)||--||1,077,967|
|Total Current Liabilities||1,095,082||3,578,207|
|Commitments and Contingencies||--||--|
|Cumulative Convertible Series A Preferred Stock; par value $0.01, 1,000,000 shares authorized; 510,000 shares issued and outstanding at June 30, 2015 and December 31, 2014||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, 2015 and December 31, 2014||--||--|
|Common stock; par value $0.01, 200,000,000 shares authorized; 112,299,592 and 83,646,275 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively.||1,122,996||836,463|
|Additional Paid-In Capital||36,556,179||19,281,647|
|Total Stockholders' Equity||7,213,145||1,125,555|
|Total Liabilities and Stockholders' Equity||$8,308,227||$4,703,762|
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Source:TOMI Environmental Solutions, Inc.