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TOMI Environmental Solutions, Inc. Reports Financial Results for Fourth Quarter and Fiscal Year Ended December 31, 2016

— Expanded customer base and increased net revenue 51% from prior year —
— To hold conference call regarding fourth quarter and year end results from 2016 on Tuesday, April 4, 2017 at 4:30pm EDT —

BEVERLY HILLS, Calif., March 29, 2017 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (“TOMI“) (OTCQX:TOMZ), a global decontamination and infection prevention company that specializes in disinfection/decontamination sales and services, including the manufacturing, sale and licensing of its SteraMist, a hydrogen peroxide-based mist/fog that is registered with the U.S. Environmental Protection Agency (“EPA”), announced its financial results for the fourth quarter and fiscal year ended December 31, 2016.

Dr. Halden Shane, CEO and Chairman of TOMI, stated: “The state of play for TOMI has never been more dynamic and TOMI experienced substantial change during 2016. Around the world, healthy living is becoming a priority, which we believe will result in TOMI seeing greater interest in its products from the healthcare sector, service division and food safety industry.

"Although our net revenue increased by more than 50%, it still fell short of expectations due to an overhaul of our sales force, administration and the training of new personnel.

"However, we managed uncertainty in the near-term and targeted our investments to accelerate future growth. We hired energetic and qualified personnel, developed promising technologies, formed important partnerships, and expanded our global footprint. We also boosted our digital presence, evolved our supply chain, and harnessed sustainable innovation to enhance our efficiency.”

Financial Results for the Twelve Months Ended December 31, 2016 Compared to 2015

  • Net revenue was $6.3 million, a 51% increase from $4.2 million.
  • Gross margins were consistent between each quarter averaging approx. 60%.
  • Loss from operations was approximately $3.4 million compared to $3.0 million.
  • Net loss was $3.2 million, or $0.03 per share, compared to a net loss of $12.2 million, or $0.12 per share.
  • At December 31, 2016, working capital was $5.7 million compared to $7.9 million.

Financial Results for the Three Months Ended December 31, 2016 Compared to 2015

  • Net revenue was $1,816,000, a 3% increase from $1,758,000.
  • Gross margins were 60.1%, compared to 60.7%.
  • Loss from operations was $606,000, compared to $157,000.
  • Net loss was $608,000, or $0.01 on a per share basis compared a net loss or $157,000 or a break even on a per share basis.

More detailed financial information and analysis may be found in TOMI’s Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission today.

Business Highlights from 2016

  • Added 68 new customers domestically and 12 new customers internationally, in various industries
  • Expanded our TSN network with the addition of 33 new members
  • Continued expansion into international markets with the addition of customers in United Kingdom, Germany, Portugal and Australia
  • Increased service and training revenue to approximately $616,000, as compared to $136,000 in 2015
  • Upgraded to OTCQX Best Market
  • Expanded EPA label to Hospital-Healthcare disinfectant for use as a misting/fogging agent
  • Registered EPA label in all 50 states within the U.S.

Recent Business Highlights

  • Completion of $5.3 million private placement funding
  • SteraMisttechnology was added to the EPA “List K” of registered antimicrobial products effective against C. diff Spores
  • Established Scientific Advisory Board with experts in intellectual property, biosafety and infection prevention
  • Obtained service decontamination engagements with five global pharmaceutical companies

Conference Call

To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10104138. 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 6:30pm EDT the day of the call by dialing 1-877-344-7529 or 1-412-317-0088, passcode #10104138. 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. (OTCQX:TOMZ) is a global decontamination and infection prevention company, providing eco-friendly environmental solutions for indoor surface disinfection through manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform, which was invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. BIT™ uses a low percentage Hydrogen Peroxide as its only active ingredient to produce a hydroxyl radical (OH ion) and is represented by the TOMI™ SteraMist™ brand of products, which produce a germ-killing aerosol that behaves like a gas.

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 of 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 and The Restoration Industry Association. For additional 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.
CONSOLIDATED BALANCE SHEET
ASSETS
Current Assets:
December 31, 2016 December 31, 2015
Cash and Cash Equivalents$948,324 $5,916,068
Accounts Receivable – net 1,521,378 1,414,576
Inventories (Note 3) 4,047,310 1,395,175
Deposits on Merchandise (Note 11) 147,010 442,358
Prepaid Expenses 104,448 76,730
Other Assets - 36,613
Total Current Assets 6,768,469 9,281,519
Property and Equipment – net (Note 4) 611,807 250,264
Other Assets:
Intangible Assets – net (Note 5) 1,918,040 2,287,548
Security Deposits 4,700 4,700
Total Other Assets 1,922,740 2,292,248
Total Assets$9,303,016 $11,824,031
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable$735,879 $1,021,883
Accrued Expenses and Other Current Liabilities (Note 13) 278,413 118,815
Customer Deposits 30,120 35,111
Deferred Rent 8,541 14,745
Advances on Grant (Note 11) - 210,503
Total Current Liabilities 1,052,954 1,401,057
Total Liabilities 1,052,954 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 December 31, 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 December 31, 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 December 31, 2016 and December 31, 2015, respectively. 1,208,251 1,200,632
Additional Paid-In Capital 41,367,946 40,391,216
Accumulated Deficit (34,331,234) (31,173,973)
Total Stockholders’ Equity 8,250,063 10,422,974
Total Liabilities and Stockholders’ Equity$9,303,016 $11,824,031


CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For The Three Months Ended For The Year Ended
December 31, December 31,
2016 2015 2016 2015
Sales, net$1,815,592 $1,758,333 $6,343,432 $4,191,783
Cost of Sales 724,307 690,306 2,610,500 1,644,039
Gross profit 1,091,285 1,068,027 3,732,931 2,547,744
Operating Expenses:
Professional Fees 142,317 124,999 516,926 455,626
Depreciation and Amortization 159,007 128,277 586,384 499,344
Selling Expenses 359,574 370,269 1,512,752 704,069
Research and Development 63,914 25,632 184,259 100,321
Consulting fees 26,245 19,901 614,696 476,513
Equity Compensation Expense (Note 8) 72,405 86,503 307,040 1,706,393
General and Administrative 873,569 469,073 3,380,025 1,591,102
Total Operating Expenses 1,697,031 1,224,654 7,102,082 5,533,368
Loss from Operations (605,746) (156,628) (3,369,150) (2,985,624)
Other Income (Expense):
Amortization of Deferred Financing Costs - - - (199,625)
Amortization of Debt Discounts - - - (3,996,033)
Fair Value Adjustment of Derivative Liability - - - (3,810,955)
Induced Conversion Loss - - - (930,383)
Gain on Disposition of Property and Equipment - - 12,000 (253,700)
Grant - - 199,891 -
Interest Expense - - - (253,700)
Total Other Income (Expense) - - 211,891 (9,190,695)
Net Income (Loss)$(605,746) $(156,628) $(3,157,259) $(12,176,319)
Income (Loss) Per Common Share
Basic and Diluted$(0.01) $(0.00) $(0.03) $(0.12)
Basic and Diluted Weighted Average
Common Shares Outstanding 120,794,292 120,045,746 120,557,102 102,840,185

MEDIA RELATIONS CONTACT Paul Varga Marketing and Public Relations Manager (301) 628-2831 pvarga@tomimist.com

Source:TOMI Environmental Solutions, Inc.