TOMI™ Reports Second Quarter 2016 Financial Results
- Grows Q2 2016 net revenue 134% over Q2 2015 –
- To hold second quarter 2016 results conference call today at 4:30 PM ET -
BEVERLY HILLS, Calif., Aug. 15, 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 three-months ended June 30, 2016.
Dr. Halden Shane, TOMI’s Chief Executive Officer, stated: “Our second quarter 2016 results reflect an exponential increase in sales and significant improvement in our bottom line. This demonstrates the accelerating adoption rates for our SteraMist™ platform as customers in various regions and markets learn of its compelling value proposition. Collectively, we are in five major facilities testing our protocol including Dana-Farber Cancer Institute, New York University and the University of Iowa. Within the United States hospital and healthcare market, our success in bringing SteraMist to market has been supported by the growing need for disinfection and decontamination solutions to control pathogens such as C.diff+, which can be difficult and costly to control. Our recent EPA registration amendments from California and New York further validate our technology and open a very lucrative market for us.
“In addition, the expansion of our TOMI Service Network (TSN™) has provided us with a broad network of skilled professional contractors who act as value-added resellers of our products, providing top-notch treatment and services to facilities around the country. Our SteraMist platform continues to prove itself to be a simple and effective solution for this and many other applications throughout the world. The opportunity for our disinfection and decontamination solution is large and growing, and we are committed to further establishing TOMI as a leader in the industry.”
Financial Results for the Three Months Ended June 30: 2016 Compared to 2015
- Net revenue grew to $1.7 million, up 134% from the $740,000.
- Gross margins were 59%, compared to 63%.
- Total costs and expenses decreased to $1.8 million, compared to $2.3 million.
- Loss from operations was $790,000, compared to $1.9 million.
- Net loss was $575,000, or $0.00 per share. This compared to second quarter of 2015 net loss $7.2 million, $0.08 per share, which included amortization of debt discount of $3 million and a non-cash fair value adjustment on a derivative liability of $1.1 million.
- At June 30, 2016, cash and cash equivalents were $2.4 million and working capital was $6.8 million, compared to $5.9 million and $7.9 million, respectively, at December 31, 2015.
Recent Business Highlights
Domestic
- Received amended EPA registrations from the states of California and, most recently, New York for TOMI’s patented BIT™ validating its effectiveness in disinfecting pathogens* Clostridium difficile spores (C. diff)+, Methicillin Resistant Staphylococcus aureus (MRSA)** and influenza (H1N1)**.
- Added 28 members to the TSN since January 1st, bringing total membership to 52 at August 15th.
- Developed and installed for the Dana-Farber Cancer Institute – one of the top-ranked infectious disease hospitals in the United States - a customized disinfection system and completed two follow-on decontamination treatments.
- Won a highly-competitive bid to conduct decontamination services at New York University’s newly constructed laboratory within its testing facility.
- Received an order for a SteraMist Environment Unit from the University of Iowa for use in the university medical laboratories.
- Began a trial with Christiana Hospital in Delaware where the SteraMist Surface Unit is being tested in its terminal hospital rooms and operating rooms with expected completion at the end of August.
International
- Gained additional exposure to pharmaceutical companies in Japan and South Korea where there is significant interest in bringing SteraMist to regional markets.
- Began evaluating custom installation projects for a Chinese pharmecutical/biosafety room through TOMI’s relationship with TOMI Asia.
- Began pursuing opportunities for SteraMist to be used in daycare centers in the Philippines to fight against the tuberculosis outbreak.
Conference Call Information
To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10091329. To listen to the webcast or view the press release, please visit the Investor Relations section of the TOMI website at: http://www.tomimist.com/us/investors/.
The replay can be accessed for one week starting at 6:30 p.m. ET the day of the call by dialing 1-877-344-7529 or 1-412-317-0088, passcode # 10091329. 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: | 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 | aloveland@tomimist.com | ||||
[Tables to follow]
| TOMI Environmental Solutions, Inc. | ||||||||
| Condensed Consolidated Balance Sheet | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| June 30, 2016 (Unaudited) |
December 31, 2015 |
|||||||
| Cash and Cash Equivalents | $ | 2,427,952 | $ | 5,916,068 | ||||
| Accounts Receivable – net | 2,026,436 | 1,414,576 | ||||||
| Inventories | 4,239,357 | 1,395,175 | ||||||
| Deposits on Merchandise | 211,147 | 442,358 | ||||||
| Prepaid Expenses | 177,329 | 76,730 | ||||||
| Other Assets | 36,613 | 36,613 | ||||||
| Total Current Assets | 9,118,834 | 9,281,519 | ||||||
| Property and Equipment – net | 615,781 | 250,264 | ||||||
| Other Assets: | ||||||||
| Intangible Assets – net | 2,102,794 | 2,287,548 | ||||||
| Security Deposits | 4,700 | 4,700 | ||||||
| Total Other Assets | 2,107,494 | 2,292,248 | ||||||
| Total Assets | $ | 11,842,109 | $ | 11,824,031 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable and Accrued Expenses | $ | 2,152,409 | $ | 1,087,978 | ||||
| Accrued Officers Compensation | 36,542 | - | ||||||
| Common Stock and Warrants to be Issued | 103,882 | 52,721 | ||||||
| Customer Deposits | 49,595 | 35,111 | ||||||
| Deferred Rent | 11,643 | 14,745 | ||||||
| Advances on Grant | - | 210,503 | ||||||
| Total Current Liabilities | 2,354,070 | 1,401,057 | ||||||
| Total Liabilities | 2,354,070 | 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 June 30, 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 June 30, 2016 and December 31, 2015 | - | - | ||||||
| Common stock; par value $0.01, 200,000,000 shares authorized; 120,488,596 and 120,063,180 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively. | 1,204,886 | 1,200,632 | ||||||
| Additional Paid-In Capital | 41,065,625 | 40,391,216 | ||||||
| Accumulated Deficit | (32,787,572 | ) | (31,173,973 | ) | ||||
| Total Stockholders’ Equity | 9,488,038 | 10,422,974 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 11,842,109 | $ | 11,824,031 | ||||
| TOMI Environmental Solutions, Inc. | ||||||||||||||||
| Condensed Consolidated Statement of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Sales, net | $ | 1,728,533 | $ | 739,934 | $ | 3,435,508 | $ | 1,416,320 | ||||||||
| Cost of Sales | 706,760 | 275,968 | 1,454,572 | 554,444 | ||||||||||||
| Gross Profit | 1,021,773 | 463,966 | 1,980,937 | 861,876 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Professional Fees | 95,521 | 87,773 | 273,181 | 194,805 | ||||||||||||
| Depreciation and Amortization | 145,763 | 123,957 | 279,030 | 249,210 | ||||||||||||
| Selling Expenses | 517,486 | 97,091 | 869,662 | 191,826 | ||||||||||||
| Research and Development | 18,718 | 19,667 | 27,498 | 41,857 | ||||||||||||
| Equity Compensation Expense | 118,340 | 1,385,743 | 456,969 | 1,510,830 | ||||||||||||
| Consulting Fees | 101,435 | 338,233 | 231,061 | 414,542 | ||||||||||||
| General and Administrative | 814,117 | 270,272 | 1,671,585 | 541,586 | ||||||||||||
| Total Operating Expenses | 1,811,379 | 2,322,736 | 3,808,986 | 3,144,656 | ||||||||||||
| Loss from Operations | (789,606 | ) | (1,858,770 | ) | (1,828,050 | ) | (2,282,780 | ) | ||||||||
| Other Income (Expense): | ||||||||||||||||
| Amortization of Deferred Financing Costs | - | (115,175 | ) | - | (199,625 | ) | ||||||||||
| Amortization of Debt Discounts | - | (3,032,685 | ) | - | (3,996,033 | ) | ||||||||||
| Fair Value Adjustment of Derivative Liability | - | (1,137,807 | ) | - | (3,810,955 | ) | ||||||||||
| Induced Conversion Costs | - | (930,383 | ) | - | (930,383 | ) | ||||||||||
| Gain on Disposition of Property and Equipment | 12,000 | - | 12,000 | - | ||||||||||||
| Grant | 202,451 | - | 202,451 | - | ||||||||||||
| Interest Expense | - | (126,850 | ) | - | (253,700 | ) | ||||||||||
| Total Other Income (Expense) | 214,451 | (5,342,900 | ) | 214,451 | (9,190,696 | ) | ||||||||||
| Net Loss | $ | (575,154 | ) | $ | (7,201,670 | ) | $ | (1,613,599 | ) | $ | (11,473,476 | ) | ||||
| Loss Per Common Share | ||||||||||||||||
| Basic and Diluted | $ | 0.00 | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.13 | ) | |||||
| Basic and Diluted Weighted Average Common Shares Outstanding | 120,457,277 | 87,767,261 | 120,317,306 | 85,828,777 | ||||||||||||
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