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TOMI Environmental Solutions, Inc. Reports Second Quarter 2017 Results

BEVERLY HILLS, Calif., Aug. 14, 2017 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (“TOMI™”) (OTCQX:TOMZ), a global decontamination company that specializes in disinfection/decontamination sales and services, including SteraMist™, a hydrogen peroxide-based mist/fog registered with the U.S. Environmental Protection Agency (“EPA”) for use as a hospital-healthcare disinfectant, announces its financial results for the second quarter of 2017.

Dr. Halden Shane, TOMI’s Chief Executive Officer, stated: “While we experienced some growing pains and challenges at the beginning of the year, I am pleased to report that we are back on track and meeting our goals of expanding the technology in our focus sectors and advancing our efforts across the globe.”

Financial Results for the Three Months Ended June 30, 2017 Compared to 2016

  • Completion of $6.0 million in private placement funding.
  • Net revenue was $1,380,000, compared to $1,729,000.
  • Gross margins were 62.0%, compared to 59.1%.
  • Loss from operations was $1,156,000, compared to $789,000.
  • Net loss was $1,213,000, or $0.01 on a per share basis compared to a net loss of $575,000 or $0.00 on a per share basis.
  • At June 30, 2017, cash and cash equivalents were $5,468,000 and working capital was $10,435,000, compared to $948,000 and $5,716,000, respectively, at December 31, 2016.

Recent and Current Business Highlights

  • Settlement of suit TOMI initiated against Astro Pak Corporation to protect its intellectual property rights, resulting in the assignment of the iHP trademark and a favorable cash settlement.
  • Held annual shareholder meeting where our shareholders approved the election of our directors, ratification of our independent registered accounting firm, approval of the 2016 stock plan, amendment to our bylaws to establish a classified board, amendment to our restated articles of incorporation to implement a reverse stock split, executive compensation and frequency of advisory votes on approval of compensation to the named executive officers.
  • Custom built in system that was designed and installed into a vivarium facility was featured in the publication, ALNmag.
  • Expansion of EPA label to include efficacy against Salmonella and Norovirus.
  • Continued our growth into international markets during the second quarter by entering into distributor and sales rep agreements in Chile, Brazil and Portugal.
  • Expansion of TOMI sales force in life science sector with addition of an internal sales manager and five manufacturing representatives.
  • 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.
  • Continued growth of disinfection/decontamination services with eleven (11) global pharmaceutical companies for both reoccurring and new customer service orders, totaling approximately $772,000 in the current year.
  • Continued to support six (6) Hospital trials in the Asian marketplace. Completion of the trials will facilitate entry into the Asian Marketplace.
  • Further growth in operations personnel.

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 works like a visual non-caustic gas.

TOMI’s 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 (when not in operation), 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, please visit http://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:June 30, 2017
(Unaudited)
December 31, 2016
Cash and Cash Equivalents$5,467,521 $948,324
Accounts Receivable – net 1,723,469 1,521,378
Inventories 4,064,120 4,047,310
Deposits on Merchandise 79,119 147,010
Prepaid Expenses 210,895 104,448
Total Current Assets 11,545,123 6,768,469
Property and Equipment – net 494,940 611,807
Other Assets:
Intangible Assets – net 1,733,286 1,918,040
Security Deposits 4,700 4,700
Total Other Assets 1,737,986 1,922,740
Total Assets$13,778,049 $9,303,016
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable$741,203 $735,879
Accrued Expenses and Other Current Liabilities 285,499 278,413
Accrued Interest 71,256 -
Customer Deposits 7,487 30,120
Deferred Rent 4,661 8,541
Total Current Liabilities 1,110,105 1,052,953
Convertible Notes Payable, net of discount of $61,010 at June 30, 2017 5,938,990 -
Total Long-term Liabilities 5,938,990 -
Total Liabilities 7,049,096 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 June 30, 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 June 30, 2017 and December 31, 2016 - -
Common stock; par value $0.01, 200,000,000 shares authorized; 121,043,958 and 120,825,134 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively. 1,210,439 1,208,251
Additional Paid-In Capital 41,683,635 41,367,946
Accumulated Deficit (36,170,220) (34,331,234)
Total Shareholders’ Equity 6,728,954 8,250,063
Total Liabilities and Shareholders’ Equity$13,778,049 $9,303,016


TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
For The Three Months Ended For The Six Months Ended
June 30, June 30,
2017 2016 2017 2016
Sales, net$1,379,769 $1,728,533 $2,478,653 $3,435,508
Cost of Sales 512,494 706,760 928,851 1,454,572
Gross Profit 867,275 1,021,773 1,549,801 1,980,936
Operating Expenses:
Professional Fees 394,710 95,521 666,721 273,181
Depreciation and Amortization 148,923 145,763 308,074 279,030
Selling Expenses 371,095 517,486 550,480 869,662
Research and Development 18,119 18,718 48,765 27,498
Equity Compensation Expense 232,345 118,340 243,897 456,969
Consulting Fees 86,060 101,435 117,112 231,061
General and Administrative 771,869 814,117 1,382,224 1,671,585
Total Operating Expenses 2,023,121 1,811,379 3,317,274 3,808,986
Loss from Operations (1,155,845) (789,606) (1,767,472) (1,828,050)
Other Income (Expense):
Amortization of Debt Discounts (757) - (894) -
Gain on Disposition of Property and Equipment - 12,000 - 12,000
Grant - 202,451 - 202,451
Interest Income 636 - 636 -
Interest Expense (57,123) - (71,256) -
Total Other Income (Expense) (57,244) 214,451 (71,514) 214,451
Net Loss$(1,213,089) $(575,155) $(1,838,986) $(1,613,599)
Loss Per Common Share
Basic and Diluted$(0.01) $(0.00) $(0.02) $(0.01)
Basic and Diluted Weighted Average Common Shares Outstanding 121,032,400 120,457,277 120,929,340 120,317,306


MEDIA RELATIONS CONTACT Juliana deRosa Executive Administrator jderosa@tomimist.com

Source:TOMI Environmental Solutions, Inc.