TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ:TOMZ), a
global company specializing in disinfection and decontamination
utilizing its premier Binary Ionization Technology (BIT) platform
through its SteraMist brand of products, today announced its
financial results for the first quarter of 2022.
TOMI Chief Executive Officer, Dr. Halden Shane, stated, “In the
first quarter, we delivered improved financial results as
demonstrated by increased sales, enhanced gross profit, lower
operating expenses and positive cash flow as compared to the same
period last year. First quarter sales grew approximately 11% as
compared to first quarter of 2021 and 15% sequentially over the
fourth quarter of 2021, primarily due to increased demand for our
mobile equipment and iHP service. We continue to see strong demand
in the marketplace for our products and received approximately $3.5
million in orders during the quarter largely attributable to higher
demand for our mobile equipment and Custom Engineered Systems (CES)
from both the life science and hospital sectors, where we continue
to win bids and gained significant brand recognition in the
marketplace over the last few years. A portion of the $3.5 million
in new orders was realized in the first quarter with the balance
expected to be realized in late 2022 and 2023. We were cash flow
positive in the first quarter largely due to customer deposits we
received in connection with these orders.”
“As previously announced, during the quarter we improved our
production capacity and capabilities through our partnership with
ARM Enertech Associates, who will manufacture our CES in their
Pennsylvania facility. In addition, our current manufacturer,
Planet Innovation, has expanded their business into California from
Australia, providing easier access to our internal technology team
and a lower cost in domestic shipment charges. We anticipate
both manufacturing partnerships will provide additional logistical
support as we expand our business and reduce our overall costs and
lead times of shipment to our customers.”
“We intend to build on our first quarter results to deliver
continued improved financial results in 2022 and remain focused on
growing our revenue, expanding our customer base, adding key
employees and increasing our brand recognition in the marketplace,”
Dr. Shane concluded.
Financial Results for the Three Months Ended March 31,
2022 compared to March 31, 2021
- Total net revenue was $2,309,000 compared to $2,073,000, an
increase of 11%, and increased 15% sequentially as compared to
fourth quarter 2021.
- Gross margin was 61.5% compared to 59.6%.
- Operating loss improved to ($660,000) compared to ($1,510,000).
The improved operating loss was attributable to higher sales, gross
profit, and lower operating expenses.
- Net loss improved to ($660,000) or ($0.03) per basic and
diluted share, compared to ($1,511,000) or ($0.09) per basic share,
representing an improvement of $851,000 or $0.06 per basic
share.
- EBITDA was a loss of ($578,000) compared to ($1,427,000),
representing an improvement of $849,000. A table reconciling EBITDA
to the appropriate GAAP financial measure is included with the
Company's financial information below.
- Cash provided from operations was $27,000 compared to cash used
in operations of ($1,225,000). The increased cash flow from
operations was primarily due to cash deposits received from
customers in the first quarter.
Balance sheet highlights as of March 31,
2022
- Cash and cash equivalents were approximately $5.3 million.
- Working capital was $10.8 million.
- Shareholders’ equity was $13.3 million.
Recent Business and Financial Highlights:
- 14% and 3% growth in SteraMist product based and iHP service
revenue, respectively when compared to the same prior year
period.
- 4% and 60% increase in domestic and international revenue,
respectively when compared to the same prior year period.
- Received approximately $3.5 million in orders, of which the
Company anticipate approximately $3.2 million will be recognized in
calendar year 2022 and early 2023.
- Of the $3.5 million in orders, $1.7 million of orders was for
our CES products from a Fortune 500 pharmaceuticals company and a
leading research facility focused on immunology and infectious
disease.
- Positive cash flow from operations.
- Onboarded and sold to seven (7) separate ServPro locations all
in Colorado and Arizona.
- Exhibited at FDIC International - The Largest Fire and Rescue
Conference.
- Presented SteraPak at RIA 2022 International Restoration
Convention & Industry Expo.
- Fulfilled an urgent shipment of multiple SteraPak units to a
local distributor in Hong Kong, TOMIMIST Hong Kong, which were
deployed by a well-known real-estate conglomerate in Hong Kong for
use in shopping malls, commercial and residential buildings, and
numerous other business premises to effectively combat the massive
outbreak of COVID-19 Omicron variant infections in the city.
- Provided SteraMist Environmental Systems to assist the
decontamination of the modular cleanroom of On Demand
Pharmaceuticals, an innovative technology company transforming how
medicines are made.
- Partnered with ARM EnerTech Associates, LLC, a U.S.-based
engineering services & custom control panel manufacturer, to
further develop its SteraMist brand of products.
- Received great preliminary biotoxin iHP inactivation data
against Ricin A Chain by a U.S. government agency expanding testing
to Botulinum and SEB toxoids.
- SteraMist iHP was highlighted as the treatment for deactivating
Mycotoxins and rendering them inert the book “Mycotoxin
Deactivation: A Successful Mycotoxin Treatment and Reduction Case
Study” by Bio-Risk Decontamination and Restoration owner David Mark
Quigley.
Conference Call Information
TOMI will hold a conference call to discuss First Quarter 2022
results at 4:30 p.m. ET today, May 5, 2022.
To participate in the call by phone, dial (888) 272-8703
approximately five minutes prior to the scheduled start time.
International callers please dial (713) 481-1320. To access the
live webcast or view the press release, please visit the Investor
Relations section of the TOMI website
at:https://www.webcaster4.com/Webcast/Page/2262/45468
A replay of the teleconference will be available until May 19,
2022 and may be accessed by dialing (877) 481-4010. International
callers may dial (919) 882-2331. Callers should use replay access
code: 45468. 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.
TOMI™ Environmental Solutions, Inc.: Innovating for
a safer world®TOMI™ Environmental Solutions, Inc.
(NASDAQ:TOMZ) is a global decontamination and infection prevention
company, providing environmental solutions for indoor surface
disinfection through the manufacturing, sales and licensing of its
premier Binary Ionization Technology® (BIT™) platform.
Invented under a defense grant in association with the Defense
Advanced Research Projects Agency (DARPA) of the U.S. Department of
Defense, BIT™ solution utilizes a low percentage Hydrogen
Peroxide as its only active ingredient to produce a fog of ionized
Hydrogen Peroxide (iHP™). Represented by the SteraMist® brand
of products, iHP™ produces a germ-killing aerosol that works
like a visual non-caustic gas.TOMI 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, military barracks, police and
fire departments, and athletic facilities. TOMI products
and services have also been used in single-family homes and
multi-unit residences.
TOMI 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,
America Seed Trade Association, and The Restoration Industry
Association.
For additional information, please
visit http://www.tomimist.com/ or contact us
at info@tomimist.com.
Forward-Looking Statements
This press release contain forward-looking statements that are
based on current expectations, estimates, forecasts and projections
of future performance based on management’s judgment, beliefs,
current trends, and anticipated product performance. These
forward-looking statements include, without limitation, statements
relating to anticipated recognition of revenue in the remainder of
2022; financial performance and operating results; upcoming launch
of new products; expected growth in sales and market demand;
revenue opportunities of CES products in 2022; timing and process
relating to research studies and testing; production capacity of
our suppliers; and anticipated cost saving and lead time in the
manufacturing of our products. Forward-looking statements involve
risks and uncertainties that may cause actual results to differ
materially from those contained in the forward-looking statements.
These factors include, but are not limited to, the impact of
COVID-19 pandemic on our business and customers; our ability to
maintain and manage growth and generate sales, our reliance on a
single or a few products for a majority of revenues; the general
business and economic conditions; and other risks as described in
our SEC filings, including our Annual Report on Form 10-K for the
fiscal year ended December 31, 2020 filed by us with the SEC and
other periodic reports we filed with the SEC. The information
provided in this document is based upon the facts and circumstances
known at this time. Other unknown or unpredictable factors or
underlying assumptions subsequently proving to be incorrect could
cause actual results to differ materially from those in the
forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance, or achievements. You should not place undue reliance
on these forward-looking statements. All information provided in
this press release is as of today’s date, unless otherwise stated,
and we undertake no duty to update such information, except as
required under applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
presented on a basis consistent with U.S. GAAP, we disclose certain
non-GAAP financial measures for our historical performance,
including EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. We
define EBITDA as net income (loss), adjusted to exclude: interest,
taxes, depreciation and amortization (EBITDA) is a non-GAAP
financial measure and is intended to serve as a supplement to our
results provided in accordance with GAAP. We define Adjusted EBITDA
as net income (loss), adjusted to exclude: interest, taxes,
depreciation and amortization; stock-based compensation expense. We
define Adjusted EBITDA margin as Adjusted EBITDA divided by net
revenue. We believe that these historical non-GAAP financial
measures provide useful information to both management and
investors by excluding certain items and expenses that are not
indicative of our core operating results or do not reflect our
normal business operations. In addition, our management uses
non-GAAP measures to evaluate our performance internally and to
benchmark our performance externally against competitors. Our use
of non-GAAP financial measures has certain limitations in that such
non-GAAP financial measures may not be directly comparable to those
reported by other companies. Although we believe that the use of
non-GAAP financial measures enhances its investors’ understanding
of its business and performance, our use of non-GAAP financial
measures should not be considered an alternative to GAAP basis
financial measures and should be read in conjunction with the
relevant GAAP financial measures. Other companies may use the same
or similarly named measures, but exclude different items, which may
not provide investors with a comparable view of our performance in
relation to other companies. Because of these limitations, the
non-GAAP financial measure used in this release should not be
considered in isolation or as a substitute for performance measures
calculated in accordance with GAAP. We seek to compensate for the
limitation of our non-GAAP presentation by providing a detailed
reconciliation of the non-GAAP financial measures to the most
directly comparable U.S. GAAP as set forth below. Investors are
encouraged to review the related U.S. GAAP financial measures and
the reconciliation of these non-GAAP financial measures to their
most directly comparable U.S. GAAP financial measures.
|
TOMI ENVIRONMENTAL SOLUTIONS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
ASSETS |
|
|
|
Current
Assets: |
|
|
|
March 31, 2022 (Unaudited) |
December 31, 2021 |
Cash and Cash Equivalents |
$ |
5,330,473 |
|
|
$ |
5,317,443 |
|
Accounts Receivable - net |
|
2,500,408 |
|
|
|
1,964,776 |
|
Other Receivables |
|
164,150 |
|
|
|
235,904 |
|
Inventories |
|
5,100,095 |
|
|
|
4,743,280 |
|
Vendor Deposits |
|
314,836 |
|
|
|
288,586 |
|
Prepaid Expenses |
|
456,058 |
|
|
|
343,573 |
|
Total Current Assets |
|
13,866,020 |
|
|
|
12,893,562 |
|
|
|
|
|
Property and Equipment –
net |
|
1,413,751 |
|
|
|
1,488,319 |
|
|
|
|
|
Other Assets: |
|
|
|
Intangible Assets – net |
|
953,042 |
|
|
|
956,284 |
|
Operating Lease - Right of Use
Asset |
|
570,297 |
|
|
|
583,271 |
|
Capitalized Software
Development Costs - net |
|
- |
|
|
|
10,476 |
|
Other Assets |
|
390,549 |
|
|
|
341,006 |
|
Total Other Assets |
|
1,913,888 |
|
|
|
1,891,037 |
|
Total Assets |
$ |
17,193,659 |
|
|
$ |
16,272,918 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
Current Liabilities: |
|
|
|
Accounts Payable |
$ |
1,814,153 |
|
|
$ |
1,054,040 |
|
Accrued Expenses and Other Current Liabilities |
|
553,126 |
|
|
|
664,608 |
|
Customer Deposits |
|
606,984 |
|
|
|
6,000 |
|
Current Portion of Long-Term Operating Lease |
|
94,539 |
|
|
|
91,775 |
|
Total Current Liabilities |
|
3,068,802 |
|
|
|
1,816,423 |
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
Long-Term Operating Lease, Net of Current Portion |
|
837,158 |
|
|
|
861,415 |
|
Total Long-Term Liabilities |
|
837,158 |
|
|
|
861,415 |
|
Total Liabilities |
|
3,905,959 |
|
|
|
2,677,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity: |
|
|
|
Cumulative Convertible Series A Preferred Stock; |
|
|
|
par value $0.01 per share, 1,000,000 shares authorized; 63,750
shares issued |
|
|
and outstanding at March 31, 2022 and December 31, 2021 |
|
638 |
|
|
|
638 |
|
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, 2022 and December 31, 2021 |
|
- |
|
|
|
- |
|
Common stock; par value $0.01 per share, 250,000,000 shares
authorized; |
|
|
19,732,705 and 16,761,513 shares issued and outstanding |
|
|
at March 31, 2022 and December 31, 2021, respectively. |
|
197,327 |
|
|
|
196,810 |
|
Additional Paid-In Capital |
|
57,292,795 |
|
|
|
56,941,209 |
|
Accumulated Deficit |
|
(44,203,060 |
) |
|
|
(43,543,576 |
) |
Total Shareholders’ Equity |
|
13,287,700 |
|
|
|
13,595,080 |
|
Total Liabilities and
Shareholders’ Equity |
$ |
17,193,659 |
|
|
$ |
16,272,918 |
|
|
TOMI ENVIRONMENTAL SOLUTIONS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
For The Three Months Ended |
|
March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Sales, net |
$ |
2,308,584 |
|
|
$ |
2,073,455 |
|
Cost of Sales |
|
887,889 |
|
|
|
838,297 |
|
Gross Profit |
|
1,420,695 |
|
|
|
1,235,158 |
|
|
|
|
|
Operating Expenses: |
|
|
|
Professional Fees |
|
190,530 |
|
|
|
173,493 |
|
Depreciation and Amortization |
|
82,292 |
|
|
|
83,449 |
|
Selling Expenses |
|
340,789 |
|
|
|
474,389 |
|
Research and Development |
|
37,076 |
|
|
|
195,620 |
|
Consulting Fees |
|
63,210 |
|
|
|
106,174 |
|
General and Administrative |
|
1,366,625 |
|
|
|
1,712,366 |
|
Total Operating Expenses |
|
2,080,522 |
|
|
|
2,745,491 |
|
Income (loss) from
Operations |
|
(659,827 |
) |
|
|
(1,510,333 |
) |
|
|
|
|
Other Income (Expense): |
|
|
|
Interest Income |
|
343 |
|
|
|
427 |
|
Interest Expense |
|
- |
|
|
|
(1,035 |
) |
Total Other Income
(Expense) |
|
343 |
|
|
|
(608 |
) |
|
|
|
|
Income (loss) before income
taxes |
|
(659,484 |
) |
|
|
(1,510,941 |
) |
Provision for Income
Taxes |
|
- |
|
|
|
- |
|
Net Income (loss) |
$ |
(659,484 |
) |
|
$ |
(1,510,941 |
) |
|
|
|
|
Net income (loss) Per Common
Share |
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
(0.09 |
) |
Diluted |
$ |
(0.03 |
) |
|
$ |
(0.09 |
) |
|
|
|
|
Basic Weighted Average Common
Shares Outstanding |
|
19,718,330 |
|
|
|
16,805,402 |
|
Diluted Weighted Average
Common Shares Outstanding |
|
19,718,330 |
|
|
|
16,805,402 |
|
|
|
|
|
|
The following is a reconciliation of net income (loss) to EBITDA
and Adjusted EBITDA (in thousands, except percentages;
unaudited):
|
For The Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
|
(Unaudited) |
|
(Unaudited) |
Net income (loss) |
$ |
(659,484 |
) |
|
$ |
(1,510,941 |
) |
|
|
|
|
Interest Income |
|
(343 |
) |
|
|
(427 |
) |
Interest Expense |
|
- |
|
|
|
1,035 |
|
Depreciation and Amortization |
|
82,292 |
|
|
|
83,449 |
|
Other |
|
- |
|
|
|
- |
|
EBITDA (Loss) |
$ |
(577,535 |
) |
|
$ |
(1,426,884 |
) |
|
|
|
|
Equity Compensation Expense |
|
297,766 |
|
|
|
- |
|
Other |
|
- |
|
|
|
- |
|
Adjusted EBITDA (Loss) |
$ |
(279,769 |
) |
|
$ |
(1,426,884 |
) |
|
|
|
|
Net revenue |
$ |
2,308,584 |
|
|
$ |
2,073,455 |
|
Adjusted EBITDA Margin |
|
-12 |
% |
|
|
-69 |
% |
INVESTOR RELATIONS CONTACT:John Nesbett/Jennifer
BelodeauIMS Investor
Relationstomi@imsinvestorrelations.com
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