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TOMI™ Reports Third Quarter 2016 Financial Results

– Grows nine months 2016 net revenue 86% over 2015 –

– To hold third quarter 2016 results conference call today at 4:30 PM ET –

BEVERLY HILLS, Calif., Nov. 14, 2016 (GLOBE NEWSWIRE) -- TOMI™ Environmental Solutions, Inc. (TOMI) (OTCQX:TOMZ), a global bacteria decontamination and infection prevention company, announced its financial results for the three-months ended September 30, 2016.

Conference Call Information
To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10095413. To listen to the webcast or view the press release, please visit the Investor Relations section of the TOMI website at: http://www.tomimist.com/us/investors/. The replay can be accessed for one week starting at 6:30 p.m. ET the day of the call by dialing 1-877-344-7529 or 1-412-317-0088, passcode # 10095413. 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.

Dr. Halden Shane, TOMI’s Chief Executive Officer, stated: “Our third quarter 2016 results reflect an increase in sales and significant opportunity both domestically and internationally, especially in the Asian marketplace. This demonstrates increased interest for our SteraMist™ platform as customers in various regions of the world and market verticals learn of its compelling value proposition. Collectively, we are in several major facilities that use our technology including Dana-Farber Cancer Institute and the United States Food and Drug Association (U.S.F.D.A.) Within the United States hospital and healthcare market, our success in bringing SteraMist to market has been supported by the growing need for disinfection and decontamination solutions to control pathogens such as C. diff+, MRSA and H1N1, which can be difficult and costly to control. The acceptance of our most recent EPA registration amendments by the States of New York and California gives TOMI registration in all 50 U.S. states and further validate our technology and open very lucrative markets for TOMI."

“In addition, the expansion of our TOMI Service Network (TSN™) has provided us with a broad network of skilled professional contractors who act as value-added resellers of our products, providing top-notch treatment and services to facilities around the country. Our SteraMist platform continues to prove itself to be a simple and effective solution for the service Network and their long list of clients in the United States. TSN helps with including the use of SteraMist in many other vertical applications throughout the world. The opportunity for our disinfection and decontamination solution is large and growing, and we are committed to further establishing TOMI as a leader in the industry.”

Financial Results for the Three Months Ended September 30: 2016 Compared to 2015

  • Net revenue grew to $1,092,000, up 7% from $1,017,000.
  • Gross margins were 60%, compared to 61%.
  • Total costs and expenses decreased to $1,596,000, compared to $1,164,000.
  • Loss from operations was $935,000, compared to $546,000.
  • At September 30, 2016, cash and cash equivalents were $1.3 million and working capital was $6.2 million, compared to $5.9 million and $7.9 million, respectively, at December 31, 2015.
  • TOMI has $4,000,000 in paid inventory in order to meet contractual responsibilities of its distribution partners.

Recent Business Highlights

Domestic

  • Received an order for a SteraMist Environmental Unit and a SteraMist Surface Unit from the U.S. Food and Drug Administration in their laboratory research group.
  • Added 32 members to the TSN since January 1st, bringing total membership to fifty-six (56) as of November 14th and expect to add additional new members in the fourth quarter.
  • Developed and installed for the Dana-Farber Cancer Institute – one of the top-ranked cancer center hospitals in the United States - a customized disinfection system and completed two follow-ups disinfection treatments.
  • Won bids to conduct disinfection services at three major global pharmaceutical companies.
  • Received an order for a SteraMist Surface Unit from the Kansas City University of Medicine and Biosciences for use in the university medical laboratories.
  • Began a trial at a major Ivy League Hospital where the SteraMist Surface Unit is being tested in multiple operating rooms with expected study completion in the 3rd week of November.

International

  • Adoption of TOMI’s SteraMistTM BIT technology in the Asian region as the Company’s customers commence use of the product in various facilities throughout Asia.
  • Continued expansion into the South Korean and Taiwan markets with additional repeat orders placed.
  • Continued expansion into the Europe region with an equipment shipment and training performed for a large Pharmaceutical Company in Germany.

Source Materials
+Clostridium difficile spores (C. diff) (ATCC# 43598) test conducted with SteraMist™ Environment System.
** Methicillin Resistant Staphylococcus aureus (MRSA), Pseudomonas and influenza (H1N1) test conducted with SteraMist Surface Unit.
* Pathogens: SteraMist disinfects against Clostridium difficile spores (C. diff) (ATCC# 43598), Methicillin Resistant Staphylococcus aureus (MRSA) (ATCC# 33592), and Influenza A (H1N1) virus (ATCC VR-1469).

About TOMI™ Environmental Solutions, Inc.
TOMI Environmental Solutions, Inc. (OTCQX: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.tomimist.com or contact us at info@tomimist.com.

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 BALANCE SHEET
ASSETS
Current Assets:
September 30, 2016 (Unaudited)December 31, 2015
Cash and Cash Equivalents$1,287,984 $5,916,068
Accounts Receivable - net 1,286,899 1,414,576
Inventories (Note 3) 4,557,946 1,395,175
Deposits on Merchandise (Note 11) 168,729 442,358
Prepaid Expenses 132,150 76,730
Other Assets 36,613 36,613
Total Current Assets 7,470,321 9,281,519
Property and Equipment – net (Note 4) 560,558 250,264
Other Assets:
Intangible Assets – net (Note 5) 2,010,417 2,287,548
Security Deposits 4,700 4,700
Total Other Assets 2,015,117 2,292,248
Total Assets$10,045,996 $11,824,031
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable and Accrued Expenses$ 1,170,930 $ 1,087,978
Common Stock to be Issued (Note 12) 45,237 52,721
Customer Deposits 33,771 35,111
Deferred Rent 10,092 14,745
Advances on Grant (Note 11) - 210,503
Total Current Liabilities 1,260,031 1,401,057
Total Liabilities 1,260,031 1,401,057
Commitments and Contingencies - -
Stockholders’ Equity:
Cumulative Convertible Series A Preferred Stock; par value $0.01, 1,000,000 shares authorized; 510,000 shares issued and outstanding at September 30, 2016 and December 31, 2015 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 September 30, 2016 and December 31, 2015 - -
Common stock; par value $0.01, 200,000,000 shares authorized; 120,825,134 and 120,063,180 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively. 1,208,251 1,200,632
Additional Paid-In Capital 41,295,540 40,391,216
Accumulated Deficit (33,722,926) (31,173,973)
Total Stockholders’ Equity 8,785,966 10,422,974
Total Liabilities and Stockholders’ Equity$ 10,045,996 $ 11,824,031
TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
For The Three Months Ended For The Nine Months Ended
September 30, September 30,
2016 2015 2016 2015
Sales, net$1,092,332 $1,017,130 $4,527,840 $ 2,433,450
Cost of Sales 431,621 399,289 1,886,193 953,733
Gross Profit 660,711 617,841 2,641,648 1,479,717
Operating Expenses:
Professional Fees 101,428 179,059 374,609 330,627
Depreciation and Amortization 148,347 121,857 427,377 371,067
Selling Expenses 283,515 141,974 1,153,178 333,800
Research and Development 92,847 32,832 120,345 74,689
Equity Compensation Expense (Note 8) 85,322 109,060 542,291 1,619,890
Consulting Fees 49,734 42,069 280,795 456,611
General and Administrative 834,872 537,206 2,506,456 1,122,029
Total Operating Expenses 1,596,065 1,164,057 5,405,051 4,308,713
Loss from Operations (935,353) (546,216) (2,763,403) (2,828,996)
Other Income (Expense):
Amortization of Deferred Financing Costs - - - (199,625)
Amortization of Debt Discounts - - - (3,996,033)
Fair Value Adjustment of Derivative Liability - - - (3,810,955)
Induced Conversion Costs - - - (930,383)
Gain on Disposition of Property and Equipment - - 12,000 -
Grant - - 202,451 -
Interest Expense - - - (253,700)
Total Other Income (Expense) - - 214,451 (9,190,696)
Net Loss$(935,353) $(546,216) $(2,548,952) $(12,019,692)
Loss Per Common Share
Basic and Diluted$(0.01) $(0.00) $(0.02) $(0.12)
Basic and Diluted Weighted Average Common Shares Outstanding 120,763,449 119,457,229 120,467,106 97,004,132


INVESTOR/MEDIA RELATIONS CONTACT: Aaron Loveland VP of Marketing and Public Affairs (240) 672-6263 aloveland@tomimist.com

Source:TOMI Environmental Solutions, Inc.