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TOMI Environmental Solutions, Inc. Reports First Quarter 2017 Results

Raised $6.0 million through private placement funding
To hold first quarter 2017 results conference call on Friday, May 19th at 1:00pm ET

BEVERLY HILLS, Calif., May 15, 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”) for use as a Hospital-Healthcare Disinfectant Effective Broad-Spectrum Surface Disinfectant, announced its financial results for the first quarter of 2017.

Dr. Halden Shane, TOMI’s Chief Executive Officer, stated: “It has been a challenging and exciting start to the year. I look forward in 2017 for further acceptance of our technology and products resulting in the saving of many lives throughout the world, as more and more resistant pathogens find their way into all our daily lives, activities and indoor structures.”

Financial Results for the Three Months Ended March 31, 2017 Compared to 2016

  • $5.3 million raised through private placement.
  • Net revenue was $1,099,000, compared to $1,707,000. The decrease in revenue is attributable primarily to the timing of orders placed by a distributor.
  • Gross margins were 62.0%, compared to 56.2%. Gross profit margins increased as a result of the customer mix in sales.
  • Loss from operations was $612,000, compared to $1,038,000. The reduction the loss is primarily attributable is due to lower operating expenses.
  • Net loss was $626,000, or $0.01 on a per share basis compared a net loss or $1,038,000 or $0.01 on per share basis.
  • At March 31, 2017, cash and cash equivalents were $6.0 million and working capital was $10.5 million, compared to $900,000 and $5.7 million, respectively, at December 31, 2016.

Recent and Current Business Highlights

  • Completion of a $6.0 million private placement funding to be used to expand sales force, further research and development, domestic and international product registrations, enhance marketing and public relation initiatives along with amending TOMI’s BIT Solution EPA label.
  • Expanding FDA registration in the Food Safety sector with continued ongoing research by the USDA.
  • Further developed TOMI’s four primary sectors; Hospital-Healthcare, Life Sciences, TSN service network (TOMI Service Network), and TOMI’s Food Safety sector.
  • Added sales experts and consultants for the U.S. Healthcare sector and the Hong Kong marketplace.
  • Continued growth in 2017 with TOMI’s service revenue through the disinfection/decontamination engagements with six (6) global pharmaceutical companies for both reoccurring and new customer service orders.
  • New clients include a Kindred Hospital, Life Technologies, Co., Virginia Commonwealth University, Emergency Health Services – Bucks County, and the Georgia Department of Public Health.
  • Added six (6) additional members to TOMI Service Network (TSN) sector.
  • Continue to support six (6) Hospital trials in the Asian marketplace.
  • Recently completed five (5) successful trials – including three (3) hospitals, a decontamination leader for multiple industries and a global bio-resource center.
  • Soon to start trials with a nationwide pharmaceutical compounding facility, a biotechnology company, and the second location for a United States biological defense program.
  • Currently in a trial with two pharmaceutical company’s including one of the largest pharmaceutical companies in the world.
  • SteraMisttechnology was added to the EPA “List K” proving effectiveness against C. diff spores, making BIT and SteraMist the fastest fogging/misting technology and the only EPA registered solution and technology on the list.
  • Submitted a further amendment to the EPA for the addition of Salmonella and Norovirus to TOMI’s BIT Solution Label.
  • Article published in the International Journal of Food Microbiology has shown Cold plasma activated hydrogen peroxide aerosol -TOMI’s SteraMist product- rendered samples of E. Coli 0157: H7, Salmonella Typhimurium, and Listeria inactive, while also maintaining the quality of the produce tested.
  • Peer reviewed publication titled “Use of Novel Approaches to Reduce Clostridium Difficile in an Inner City Hospital,” which concluded that the use of TOMI’s SteraMist BIT contributed to the substantial reduction in a Wilmington, Delaware hospital’s Clostridium Difficile (C. diff) burden.
  • Continue to file counterpart design applications for the Modular Applicator/Fixed Room Applicator (#504139729), Decontamination Cart (#504121973), and Flexible Chamber (#504139732) in Europe, Taiwan, Singapore, South Korea, and China.
  • New improvement patent filed and accepted in Singapore with expiration date of 2032.
  • TOMI’s BIT Solution BPR Dossier was submitted and accepted to the European Union on January 27, 2017.
  • TOMI remains compliant with the European Union chemical legislation in UK, Ireland, France, Portugal, Germany, Sweden, and Italy, and will continue to submit for mutual recognition in a variety of other European Union countries.
  • Recently filed three (3) separate trade and word marks in Indonesia, Malaysia, Philippines, Taiwan, Hong Kong, and Singapore.
  • Established Scientific Advisory Board comprised of three experts specializing in intellectual property, biosafety and infection prevention.
  • Have three (3) in-house medical equipment decontamination projects in the proof of concept phase for three (3) global medical equipment manufacturers.
  • Added additional employees including an in-house engineer, full-time public relations manager, and a Customer Relationship Management (CRM) Manager.

About TOMI Environmental Solutions, Inc.

TOMI Environmental Solutions, Inc. (OTCQX:TOMZ) is a global decontamination and infection prevention company, providing 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), represented by the TOMI SteraMist brand of products, which produces a germ-killing aerosol that spreads 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, meat and produce processing facilities, military barracks, police and fire departments, 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.
CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
Current Assets:March 31, 2017
(Unaudited)
December 31,
2016
Cash and Cash Equivalents$5,996,031 $948,324
Accounts Receivable - net 1,411,128 1,521,378
Inventories (Note 3) 4,500,454 4,047,310
Deposits on Merchandise (Note 10) 79,119 147,010
Prepaid Expenses 123,399 104,448
Total Current Assets 12,110,131 6,768,469
Property and Equipment – net (Note 4) 549,801 611,807
Other Assets:
Intangible Assets – net (Note 5) 1,825,663 1,918,040
Security Deposits 4,700 4,700
Total Other Assets 1,830,363 1,922,740
Total Assets$14,490,295 $9,303,016
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable$1,276,891 $735,879
Accrued Expenses and Other Current Liabilities (Note 11) 229,390 278,413
Accrued Interest (Note 6) 14,133 -
Customer Deposits 27,424 30,120
Deferred Rent 6,601 8,541
Total Current Liabilities 1,554,439 1,052,953
Convertible Notes Payable, net of discount of $56,969 5,243,031 -
at March 31, 2017 (Note 6)
Total Long-term Liabilities 5,243,031 -
Total Liabilities 6,797,470 1,052,953
Commitments and Contingencies - -
Shareholders’ Equity:
Cumulative Convertible Series A Preferred Stock;
par value $0.01, 1,000,000 shares authorized; 510,000 shares issued
and outstanding at March 31, 2017 and December 31, 2016 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 March 31, 2017 and December 31, 2016 - -
Common stock; par value $0.01, 200,000,000 shares authorized;
120,825,134 shares issued and outstanding
at March 31, 2017 and December 31, 2016. 1,208,251 1,208,251
Additional Paid-In Capital 41,436,604 41,367,946
Accumulated Deficit (34,957,131) (34,331,234)
Total Shareholders’ Equity 7,692,824 8,250,063
Total Liabilities and Shareholders’ Equity$14,490,295 $9,303,016
TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
For The Three Months Ended
March 31,
2017 2016
Sales, net $1,098,883 $1,706,976
Cost of Sales 416,357 747,812
Gross Profit 682,526 959,164
Operating Expenses:
Professional Fees 272,011 177,660
Depreciation and Amortization 159,151 133,267
Selling Expenses 179,384 352,177
Research and Development 30,647 8,781
Equity Compensation Expense (Note 7) 11,553 338,629
Consulting Fees 31,052 129,626
General and Administrative 610,355 857,468
Total Operating Expenses 1,294,153 1,997,608
Loss from Operations (611,627) (1,038,444)
Other Income (Expense):
Amortization of Debt Discount (Note 6) (137) -
Interest Expense (14,133) -
Total Other Income (Expense) (14,270) -
Net Loss $(625,897) $(1,038,444)
Loss Per Common Share
Basic and Diluted$(0.01) $(0.01)
Basic and Diluted Weighted Average Common Shares Outstanding 120,825,134 120,177,335



MEDIA RELATIONS CONTACTS Ailisha Vaughn Public Relations (240) 651-0409 avaughn@tomimist.com Paul Varga Marketing and Communications (301) 628-2831 pvarga@tomimist.com

Source:TOMI Environmental Solutions, Inc.