TOMI(TM) Environmental Solutions, Inc. Reports Third Quarter 2015 Financial Results
- Doubled third quarter 2015 net revenue to $1.0 million from $515,000 in the prior year period -
- Increased working capital $10.8 million over the $3.0 million working capital deficit reported at December 31, 2014 -
- Increased acceptance of SteraMist™ with Binary Ionization Technology® (BIT™) around the globe -
- To hold third quarter 2015 financial results conference call Tuesday, November 17th at 4:30 PM ET -
BEVERLY HILLS, Calif., Nov. 13, 2015 (GLOBE NEWSWIRE) -- TOMI™ Environmental Solutions, Inc. (OTCQB:TOMZ) (TOMI), a global bacteria decontamination and infection prevention company, reported its financial results for the three months ended September 30, 2015.
Dr. Halden Shane, TOMI's Chief Executive Officer, stated: "During the quarter, we expanded adoption of our SteraMist™ platform around the globe. SteraMist was the equipment of choice in a variety of decontamination applications including in South Korea, West Africa, Malaysia and Singapore. Globally, we have and will continue to expand our distribution channels while also broadening awareness with academic presentations, product demonstrations, trade show exhibitions and industry conferences. While these efforts delivered financial improvements in the third quarter, this is merely the beginning. We are continuing to innovate within our SteraMist platform and will be filing patents to protect these new product features and form factors. The opportunities for our SteraMist product and Binary Ionization Technology® (BIT™) are abundant, and I look forward to keeping you apprised of our progress as we reach additional milestones."
Recent Business Highlights
International
- Completed testing of TOMI's new SteraMist Mobile Decontamination Chambers in Africa, as part of a grant from the United States Agency for International Development (USAID), the Center for Disease Control (CDC), and the Office of the President. TOMI's team decontaminated an entire Ebola treatment center in Monrovia, Liberia, trained approximately 50 healthcare workers and successfully demonstrated decontamination via hundreds of biological indicators.
- Expanded international distribution via an exclusive distribution agreement that introduces SteraMist™ to numerous applications within the Singapore market, including healthcare, retirement and senior care, childcare and educational facilities, dental and oral surgery offices and emergency transport.
- Received orders of SteraMist surface units from its South Korean partner Fine CNS Co., Ltd. for use at Seoul National University Hospital after the technology was successfully tested on a CT scanner used on a MERS positive patient.
- Made first shipments to Australia to the company's first potential international TSN member.
United States
- Established a relationship with Tactical Rehabilitation Inc. and Coast to Coast to expand TOMI's presence nationally.
- Received registration of BIT as a hospital disinfectant from the California Department of Pesticide Regulation (CDPR), in addition to registration in 35 additional states.
Events
- Presented at an Activated Ionized Hydrogen Peroxide (AIHP™) symposium in Milan and Rome where TOMI and many large pharmaceutical companies in Europe discussed TOMI's BIT platform and its many applications in manufacturing labs throughout the region.
- Attended the American Association for Laboratory Animal Science (AALAS) national trade show held in Phoenix, AZ November 1st through 5th.
- Participated in the Current Trends in Infection Control Conference sponsored by Putra, an association of hospitals, in Malacca, Malaysia on November 3rd.
- Presented to biosafety leaders International Veterinary Biosafety Workgroup in Geelong, Australia on November 3rd.
- Exhibited at and acted as a gold sponsor of the American Biological Safety Association (ABSA) from October 9th through 14th at the Rhode Island Convention Center in Providence.
- Participated in and acted as gold sponsor of the 2015 Healthcare Supply Chain Association (HSCA) Expo October 5th through 7th in Washington DC.
- Exhibited at the National Institutes of Health (NIH) Research Festival in Bethesda, MD September 17th and 18th.
- Attended the 2015 American Association of Tissue Banks (AATB) Annual Meeting September 15th through 19th in Scottsdale, AZ.
Financial Results for the Three Months Ended September 30, 2015 Compared to 2014
- Net revenue doubled to $1.0 million from $515,000 due primarily to the expansion of the company's TSN as well as the initial impact of the company's new partner in Singapore.
- Gross margins were 60.8%, compared to 63.5%. The shift reflects the cost of additional product features including software, RFID tags and security fail-safe programs.
- Loss from operations was $546,000 and included $109,000 in equity compensation expense. This compares to a loss from operations of $1.4 million in the third quarter of 2014, which included $1.0 million in equity compensation expense.
- Net loss was $546,000, or breakeven on a per share basis, compared to net loss of $1.3 million, or $0.02 per diluted share.
- At September 30, 2015, cash and cash equivalents were $5.8 million and working capital was $7.8 million, an increase of $10.8 million over the $3.0 million working capital deficit reported at December 31, 2014.
Conference Call Information
To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10075789. To listen to the webcast or view the press release, please visit the Investor Relations section of the TOMI website at: http://www.tomiesinc.com/us/investors/. The replay can be accessed for up to 24 hours starting at 8:00 p.m. ET the day of the call by dialing 1-877-344-7529 or 1-412-317-0088, passcode # 10075789. 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. (OTCQB: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.tomiesinc.com or contact us at info@tomiesinc.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 STATEMENT OF OPERATIONS | ||||
| (Unaudited) | ||||
| For The Three Months Ended | For The Nine Months Ended | |||
| September 30, | September 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Sales, net | $1,017,130 | $515,465 | $2,433,450 | $1,204,949 |
| Cost of Sales | 399,289 | 187,943 | 953,733 | 439,929 |
| Gross profit | 617,841 | 327,522 | 1,479,717 | 765,020 |
| Operating Expenses: | ||||
| Professional Fees | 179,059 | 89,341 | 330,627 | 280,166 |
| Depreciation and Amortization | 121,857 | 121,496 | 371,067 | 345,790 |
| Selling Expenses | 141,974 | 107,460 | 333,800 | 284,615 |
| Research and Development | 32,832 | 30,544 | 74,689 | 127,686 |
| Equity Compensation Expense (Note 8) | 109,060 | 1,043,069 | 1,619,890 | 2,448,591 |
| Consulting fees | 42,069 | 44,338 | 456,611 | 128,491 |
| General and Administrative | 537,206 | 313,229 | 1,122,029 | 857,571 |
| Total Operating Expenses | 1,164,057 | 1,749,477 | 4,308,713 | 4,472,910 |
| Loss from Operations | (546,216) | (1,421,955) | (2,828,996) | (3,707,890) |
| Other Income (Expense): | ||||
| Amortization of Deferred Financing Costs | -- | (86,327) | (199,625) | (256,165) |
| Amortization of Debt Discounts | -- | (272,329) | (3,996,033) | (489,783) |
| Fair Value Adjustment of Derivative Liability | -- | 653,824 | (3,810,955) | 3,899,961 |
| Induced Conversion Costs | -- | -- | (930,383) | -- |
| Interest Expense | -- | (126,850) | (253,700) | (381,106) |
| Total Other Income (Expense) | -- | 168,318 | (9,190,695) | 2,772,907 |
| Net Loss | $ (546,216) | $ (1,253,637) | $ (12,019,691) | $ (934,983) |
| Loss Per Common Share | ||||
| Basic and Diluted | ($0.00) | ($0.02) | ($0.12) | ($0.01) |
| Basic and Diluted Weighted Average Common Shares Outstanding | 119,457,229 | 81,428,050 | 97,004,132 | 80,601,165 |
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||
| (Unaudited) | ||
| ASSETS | ||
| Current Assets: | ||
| September 30, 2015 (Unaudited) | December 31, 2014 | |
| Cash and Cash Equivalents | $5,793,721 | $160,560 |
| Cash – Restricted (Note 6) | -- | 105,776 |
| Accounts Receivable - net | 1,115,182 | 441,153 |
| Inventories (Note 3) | 1,101,226 | 772,833 |
| Deposits on Merchandise | 529,142 | -- |
| Prepaid Expenses | 96,529 | 35,404 |
| Other Assets | 36,613 | 36,644 |
| Deferred Financing Costs – net (Note 6) | -- | 199,625 |
| Total Current Assets | 8,672,413 | 1,751,995 |
| Property and Equipment – net (Note 4) | 240,224 | 288,159 |
| Other Assets: | ||
| Intangible Assets – net (Note 5) | 2,379,925 | 2,657,056 |
| Security Deposits | 4,700 | 6,552 |
| Total Other Assets | 2,384,625 | 2,663,608 |
| Total Assets | $11,297,261 | $4,703,762 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts Payable and Accrued Expenses | $624,350 | $448,063 |
| Accrued Interest on Convertible Notes (Note 6) | -- | 211,417 |
| Accrued Officers Compensation (Note 9) | -- | 41,000 |
| Common Stock to be Issued (Note 12) | 52,315 | 35,925 |
| Customer Deposits | 19,342 | 19,716 |
| Deferred Rent | 15,917 | 15,236 |
| Advances on Grant (Note 11) | 127,374 | -- |
| Derivative Liability (Note 7) | -- | 1,728,883 |
| Convertible Notes Payable, net of discount at December 31, 2014 of $3,996,033 (Note 6) | -- | 1,077,967 |
| Total Current Liabilities | 839,298 | 3,578,207 |
| Total Liabilities | 839,298 | 3,578,207 |
| 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, 2015 and December 31, 2014 | 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, 2015 and December 31, 2014 | -- | -- |
| Common stock; par value $0.01, 200,000,000 shares authorized; 120,031,431 and 83,646,275 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively. | 1,200,314 | 836,463 |
| Additional Paid-In Capital | 40,269,895 | 19,281,647 |
| Accumulated Deficit | (31,017,346) | (18,997,655) |
| Total Stockholders' Equity | 10,457,963 | 1,125,555 |
| Total Liabilities and Stockholders' Equity | $11,297,261 | $4,703,762 |
CONTACT: INVESTOR RELATIONS CONTACT:
Becky Herrick & Kirsten Chapman
LHA (IR Agency)
(415) 433-3777
tomi@lhai.com
MEDIA RELATIONS CONTACT:
Aaron Loveland
VP of Marketing and Public Affairs
(240) 672-6263
aaron.loveland@tomiesinc.com
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