TOMI™ Reports First Quarter 2016 Financial Results

- More than doubled Q1 2016 net revenue from Q1 2015 –
- Accelerating the commercialization of SteraMist™ around the world -
- To hold first quarter 2016 results conference call today at 4:30 PM ET -

BEVERLY HILLS, Calif., May 16, 2016 (GLOBE NEWSWIRE) -- TOMI™ Environmental Solutions, Inc. (TOMI) (OTC Pink:TOMZ), a global bacteria decontamination and infection prevention company, announced its financial results for the first quarter of 2016.

Dr. Halden Shane, TOMI’s Chief Executive Officer, stated: “During the first quarter of 2016, we made great progress in accelerating the commercialization of our SteraMist platform around the world. We reached an important milestone as the Environmental Protection Agency (EPA) amended our registration to include our Binary Ionization Technology’s (BIT™) efficacy against a broad spectrum of pathogens^*, including MRSA^**, H1N1^** and C. diff spores⁺. This achievement significantly increases our market opportunity in the US hospital and healthcare channels and has already resulted in orders from one of the top-ranked hospitals and the leading center for infectious disease in the United States for our SteraMist platform. TOMI provides hospitals and healthcare facilities with a simple, quick and cost effective solution to reducing penalties associated with the Affordable Care Act and Medicare’s non-payment policy. We remain focused on further penetrating the US hospital and healthcare market where we see tremendous growth potential.”

“To support our growth, we strengthened our leadership team with key hires, built out our internal sales infrastructure and expanded the TOMI Service Network (TSN™). We also carefully managed costs to ensure we make the appropriate investments in our future while also maintaining a prudent cost structure. With our well-capitalized balance sheet, we believe we are in a strong financial position to reach sustained profitability and maximize value creation for our shareholders.”

Financial Results for the Three Months Ended March 31, 2016 Compared to 2015

Net revenue was $1.7 million, up more than $1.0 million from the $676,000 in net revenue in the first quarter of 2015.
Gross margins were 56%, compared to 59%.
Total costs and expenses were $2.0 million, compared to $822,000.
Loss from operations was $1.0 million, compared to $424,000.
Net loss was $1.0 million, or $0.01 per share. In the first quarter of 2015, net loss included a $2.7 million fair value adjustment on a derivative liability and was $4.3 million, $0.05 per diluted share.
At March 31, 2016, cash and cash equivalents were $4.6 million and working capital was $7.2 million, compared to $5.9 million and $7.9 million, respectively, at December 31, 2015.

“The growth in net revenue reflects our accelerated commercialization into new markets around the world,” stated Nick Jennings, TOMI’s CFO. “The decline in gross margins in the first quarter 2016 was due to a large volume order from our Mexican distributor that received favorable pricing. Our costs and expenses reflect our investments in building out our sales infrastructure and increased marketing spend to support our future growth.”

Recent Business Highlights
Domestic

Received an amended registration from the EPA for TOMI’s patented BIT™ to include its effectiveness in disinfecting Clostridium difficile spores (C. diff)⁺, Methicillin Resistant Staphylococcus aureus (MRSA)^**and influenza (H1N1)^*^*.
Received an initial purchase order from one of the top-ranked infectious disease hospitals in the United States for its SteraMist™ line of equipment.
Received orders from the leading center for infectious disease in the United States for use of SteraMist products in biological safety labs.
Added 17 new members to the TSN in the first quarter, bringing total membership to 45 as of May 16, 2016.
Enhanced leadership team with the hiring of a new President and Vice President of Sales and by adding three experienced independent directors to TOMI’s board.
Exhibited and presented at the International Pharmaceutical Expo held April 26^th through 28^th in New York City, hosting a presentation, SteraMist™ powered by Binary Ionization Technology: Harnessing the Power of Cold Plasma Science.

International

Received an order valued at over $620,000 for the use of SteraMist products in healthcare facilities throughout Mexico.
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.

Conference Call Information
To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10085041. To listen to the webcast or view the press release, please visit the Investor Relations section of the TOMI website at: www.tomimist.com. 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 #10085041. 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.

Source Materials
⁺Clostridium difficile spores (C. diff) (ATCC# 43598) test conducted with SteraMist™ Environment System.
^** Methicillin Resistant Staphylococcus aureus (MRSA), Pseudomonas and influenza (H1N1) test conducted with SteraMist Surface Unit.
^*Pathogens: SteraMist disinfects against Clostridium difficile spores (C. diff) (ATCC# 43598), Methicillin Resistant Staphylococcus aureus (MRSA) (ATCC# 33592), and Influenza A (H1N1) virus (ATCC VR-1469).

About TOMI™ Environmental Solutions, Inc.
TOMI^™ Environmental Solutions, Inc. (OTC Pink: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:
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@tomimist.com

[Tables to follow]


TOMI Environmental Solutions, Inc.
Condensed Consolidated Balance Sheet

ASSETS

Current Assets:	March 31, 2016			December 31, 2015
	(Unaudited)			December 31, 2015
Cash and Cash Equivalents	$	4,623,543		$	5,916,068
Accounts Receivable - net		1,617,462			1,414,576
Inventories		3,156,521			1,395,175
Deposits on Merchandise		237,345			442,358
Prepaid Expenses		114,292			76,730
Other Assets		36,613			36,613
Total Current Assets		9,785,777			9,281,519

Property and Equipment – net		506,523			250,264

Other Assets:
Intangible Assets – net		2,195,171			2,287,548
Security Deposits		4,700			4,700
Total Other Assets		2,199,871			2,292,248
Total Assets	$	12,492,171		$	11,824,031

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable and Accrued Expenses	$	2,232,152		$	1,087,978
Accrued Officers Compensation		36,542			-
Common Stock and Warrants to be Issued		178,737			52,721
Customer Deposits		33,473			35,111
Deferred Rent		13,194			14,745
Advances on Grant		186,720			210,503
Total Current Liabilities		2,680,819			1,401,057

Total Liabilities		2,680,819			1,401,057

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 March 31, 2016 and December 31, 2015		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, 2016 and December 31, 2015		-			-
Common stock; par value $0.01, 200,000,000 shares authorized;
120,338,596 and 120,063,180 shares issued and outstanding
at March 31, 2016 and December 31, 2015, respectively.		1,203,386			1,200,632
Additional Paid-In Capital		40,815,284			40,391,216
Accumulated Deficit		(32,212,418	)		(31,173,973	)
Total Stockholders’ Equity		9,811,352			10,422,974
Total Liabilities and Stockholders’ Equity	$	12,492,171		$	11,824,031

TOMI Environmental Solutions, Inc.
Condensed Consolidated Statement of Operations
(Unaudited)

	For The Three Months Ended
	March 31,
		2016			2015

Sales, net	$	1,706,976		$	676,386
Cost of Sales		747,812			278,476
Gross profit		959,164			397,910

Operating Expenses:
Professional Fees		177,660			107,032
Depreciation and Amortization		133,267			125,253
Selling Expenses		352,177			94,735
Research and Development		8,781			22,190
Consulting fees		129,626			76,309
Equity Compensation Expense		338,629			125,087
General and Administrative		857,468			271,314
Total Operating Expenses		1,997,608			821,919
Loss from Operations		(1,038,444	)		(424,009	)

Other Income (Expense):
Amortization of Deferred Financing Costs		-			(84,450	)
Amortization of Debt Discounts		-			(963,348	)
Fair Value Adjustment of Derivative Liability		-			(2,673,148	)
Interest Expense		-			(126,850	)
Total Other Income (Expense)		-			(3,847,796	)

Net Loss		(1,038,444	)		(4,271,805	)

Loss Per Common Share
Basic and Diluted		(0.01	)		(0.05	)

Basic and Diluted Weighted Average Common Shares Outstanding		120,177,335			84,043,034

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