TOMI™ Environmental Solutions, Inc. Reports Fourth Quarter and Year End 2015 Results
- Increased net revenue 69% in Q4 2015 and 86% in full year 2015 from prior year periods -
- Increased working capital by $9.7 million from December 31, 2014 -
- To hold fourth quarter 2015 results conference call on Thursday, March 31st at 4:30 PM ET -
BEVERLY HILLS, Calif., March 31, 2016 (GLOBE NEWSWIRE) -- TOMI™ Environmental Solutions, Inc. (OTCQB:TOMZ) (TOMI), a global bacteria decontamination and infection prevention company, announced its financial results for the fourth quarter and full year of 2015.
Dr. Halden Shane, TOMI’s Chief Executive Officer, stated: “Our efforts in 2015 led to several significant accomplishments and demonstrate the TOMI™ SteraMist™ platform is beginning to take hold around the world. Key regulatory agencies validated the effectiveness and competitive advantages of our technology and products. We also extended our penetration of the US and international markets by establishing strong manufacturing relationships and distribution channels. In addition, we fortified our operating and corporate infrastructure to support our rapid growth. Overall, our 2015 financial results improved significantly over 2014 and foreshadow our projected large-scale growth.
“In 2016, we have continued building our momentum. In fact, in February the Environmental Protection Agency (EPA) amended our registration for our patented Binary Ionization Technology™ (BIT™) platform to include its effectiveness in disinfecting C. diff spores, MRSA and H1N1. This amendment significantly expands our market opportunity in the US hospital and healthcare channels, particularly as registration with state regulatory agencies progresses. To support our continued growth overseas, we signed a distribution agreement to establish TOMI Asia, which will serve multiple markets in the region by providing distribution, warehousing, sales, training, services and support for our suite of products.
“We are excited about the opportunities before us. Committed to profitable growth, we are focused on the following initiatives:
- Increasing penetration of the US Hospital-Healthcare Disinfectant market, including hospitals, surgical centers, medical, dental and veterinary offices;
- Developing products that leverage our core competencies in decontamination and disinfection of indoor air and surfaces;
- Maintaining a prudent cost structure while positioning the company for growth;
- Enhancing the breadth and depth of the TOMI Service Network; and,
- Furthering our regulatory claims to unlock even more opportunities for market growth.”
Financial Results for the Three Months Ended December 31, 2015 Compared to 2014
- Net revenue was $1.8 million, a 69% increase from $1.0 million reflecting the company’s expansion into new markets and geographies.
- Gross margins were 60.7%, compared to 58.4%.
- Loss from operations was $157,000, compared to $102,000.
- Net loss was $157,000, or breakeven on a per share basis. In the fourth quarter of 2014 net income included a $2.0 million fair value adjustment on a derivative liability and was $1.2 million, $0.01 per diluted share.
- At December 31, 2015, cash and cash equivalents were $5.9 million and working capital was
$7.9 million, an increase of $9.7 million over the $1.8 million working capital deficit reported at December 31, 2014.
Financial Results for the Twelve Months Ended December 31, 2015 Compared to 2014
- Net revenue was $4.2 million, an 86% increase from $2.2 million.
- Gross margins were 60.8%, compared to 61.1%.
- Loss from operations was $3.0 million, including $1.7 million in equity compensation expense. This compares to a loss from operations of $3.8 million in 2014, which included $2.6 million in equity compensation expense
- Net loss was $12.2 million, or $0.12 per diluted share, compared to net income of $268,000, or breakeven on a per share basis. The increase in net loss was primarily attributed to one-time non-cash charges related to the liquidation of our outstanding convertible promissory notes.
Recent Business Highlights
- Received an order valued at over $620,000 for the use of SteraMist products in healthcare facilities throughout Mexico.
- Expanded the TOMI Service Network (TSN™) to 24 members as of December 31, 2015.
- Signed a distribution agreement establishing TOMI Asia to serve multiple markets in the region by providing distribution, warehousing, sales, training, services and support for TOMI’s products.
- Received a $500,000 order for TOMI’s SteraMist Surface Unit from Espire Health for deployment in new healthcare facilities in the Philippines.
- Received a $400,000 order from SG Environmental Solutions, one of TOMI’s international distribution partners in Malaysia.
- Made strategic hires including Robert Wotczak as President and Kenneth Kelliher as Vice President of Sales.
- Added three experienced independent directors to TOMI’s board: Walter Johnsen; Kelly Anderson; and Edward Fred.
Conference Call Information
To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10082191. 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 #10082191. 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.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.
| INVESTOR RELATIONS CONTACT: | MEDIA RELATIONS CONTACT: | |
| Becky Herrick & Kirsten Chapman | Aaron Loveland | |
| LHA (IR Agency) | VP of Marketing and Public Affairs | |
| (415) 433-3777 | (240) 672-6263 | |
| tomi@lhai.com | aaron.loveland@tomiesinc.com | |
[Tables to follow]
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||
| For The Three Months Ended | For The Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Sales, net | $ | 1,758,333 | $ | 1,043,392 | $ | 4,191,783 | $ | 2,248,341 | |||||||
| Cost of Sales | 690,306 | 434,062 | 1,644,039 | 873,990 | |||||||||||
| Gross profit | 1,068,027 | 609,330 | 2,547,744 | 1,374,351 | |||||||||||
| Operating Expenses: | |||||||||||||||
| Professional Fees | 124,999 | 69,380 | 455,626 | 349,546 | |||||||||||
| Depreciation and Amortization | 128,277 | 124,536 | 499,344 | 470,327 | |||||||||||
| Selling Expenses | 370,269 | 95,688 | 704,069 | 380,303 | |||||||||||
| Research and Development | 25,632 | 28,297 | 100,321 | 155,984 | |||||||||||
| Consulting fees | 19,901 | 51,318 | 476,513 | 179,809 | |||||||||||
| Equity Compensation Expense (Note 8) | 86,503 | 116,116 | 1,706,393 | 2,564,707 | |||||||||||
| General and Administrative | 469,073 | 226,314 | 1,591,102 | 1,083,885 | |||||||||||
| Total Operating Expenses | 1,224,654 | 711,649 | 5,533,368 | 5,184,561 | |||||||||||
| Loss from Operations | (156,628 | ) | (102,319 | ) | (2,985,624 | ) | (3,810,210 | ) | |||||||
| Other Income (Expense): | |||||||||||||||
| Amortization of Deferred Financing Costs | - | (86,327 | ) | (199,625 | ) | (342,492 | ) | ||||||||
| Amortization of Debt Discounts | - | (517,742 | ) | (3,996,033 | ) | (1,007,525 | ) | ||||||||
| Fair Value Adjustment of Derivative Liability | - | 2,036,658 | (3,810,955 | ) | 5,936,619 | ||||||||||
| Induced Conversion Loss | - | - | (930,383 | ) | - | ||||||||||
| Interest Expense | - | (126,850 | ) | (253,700 | ) | (507,956 | ) | ||||||||
| Total Other Income (Expense) | - | 1,305,739 | (9,190,695 | ) | 4,078,646 | ||||||||||
| Net Income (Loss) | $ | (156,628 | ) | $ | 1,203,420 | $ | (12,176,319 | ) | $ | 268,436 | |||||
| Income (Loss) Per Common Share | |||||||||||||||
| Basic | $ | - | $ | 0.01 | $ | (0.12 | ) | $ | - | ||||||
| Diluted | $ | - | $ | 0.01 | $ | (0.12 | ) | $ | - | ||||||
| Basic Weighted Average Common Shares Outstanding | 120,045,746 | 83,288,371 | 102,840,185 | 81,281,030 | |||||||||||
| Diluted Weighted Average Common Shares Outstanding | 120,045,746 | 129,406,301 | 102,840,185 | 127,398,990 | |||||||||||
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||
| CONSOLIDATED BALANCE SHEET | |||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| December 31, 2015 | December 31, 2014 | ||||||
| Cash and Cash Equivalents | $ | 5,916,068 | $ | 160,560 | |||
| Cash – Restricted (Note 6) | - | 105,776 | |||||
| Accounts Receivable – net | 1,414,576 | 441,153 | |||||
| Inventories (Note 3) | 1,395,175 | 772,833 | |||||
| Deposits on Merchandise (Note 11) | 442,358 | - | |||||
| Prepaid Expenses | 76,730 | 35,404 | |||||
| Other Assets | 36,613 | 36,644 | |||||
| Deferred Financing Costs – net (Note 6) | - | 199,625 | |||||
| Total Current Assets | 9,281,519 | 1,751,995 | |||||
| Property and Equipment – net (Note 4) | 250,264 | 288,159 | |||||
| Other Assets: | |||||||
| Intangible Assets – net (Note 5) | 2,287,548 | 2,657,056 | |||||
| Security Deposits | 4,700 | 6,552 | |||||
| Total Other Assets | 2,292,248 | 2,663,608 | |||||
| Total Assets | $ | 11,824,031 | $ | 4,703,762 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts Payable and Accrued Expenses | $ | 1,087,978 | $ | 448,063 | |||
| Accrued Interest on Convertible Notes (Note 6) | - | 211,417 | |||||
| Accrued Officers Compensation (Note 9) | - | 41,000 | |||||
| Common Stock to be Issued (Note 13) | 52,721 | 35,925 | |||||
| Customer Deposits | 35,111 | 19,716 | |||||
| Deferred Rent | 14,745 | 15,236 | |||||
| Advances on Grant (Note 11) | 210,503 | - | |||||
| 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 | 1,401,057 | 3,578,207 | |||||
| Total Liabilities | 1,401,057 | 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 December 31, 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 December 31, 2015 and December 31, 2014 | - | - | |||||
| Common stock; par value $0.01, 200,000,000 shares authorized; | |||||||
| 120,063,180 and 83,646,275 shares issued and outstanding | |||||||
| at December 31, 2015 and December 31, 2014, respectively. | 1,200,632 | 836,463 | |||||
| Additional Paid-In Capital | 40,391,216 | 19,281,647 | |||||
| Accumulated Deficit | (31,173,973 | ) | (18,997,655 | ) | |||
| Total Stockholders’ Equity | 10,422,974 | 1,125,555 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 11,824,031 | $ | 4,703,762 | |||
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