- Reports first quarter 2015 and full-year 2014 financial results
- Expands sales of TOMI's patented BIT™ technology domestically and internationally
BEVERLY HILLS, Calif., May 15, 2015 (GLOBE NEWSWIRE) --TOMI™ Environmental Solutions, Inc. (OTCQB:TOMZ) ("TOMI" or the "Company"), a global bacteria disinfection/decontamination and infection prevention company, reported its financial results for the three months ended March 31, 2015 and also provided a summary of the Company's full-year 2014 financial and business highlights.
"TOMI has made tremendous progress in its strategy to address the large-scale opportunities in the infection control market with SteraMist™. Leveraging our Binary Ionization Technology® ("BIT™"), SteraMist™ is quickly building a reputation among decision-makers in a variety of applicable markets for its advantages in speed and efficacy over competing household and industrial cleaners," stated Dr. Halden Shane, TOMI's Chief Executive Officer. "Our near-term outlook is quite positive as we have a significant opportunity that will bring our leading, cutting-edge technology to market in rapid fashion."
2015 and 2014 Business Highlights
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Expanded sales of TOMI's patented BIT™ technology internationally:
- Established presence in South Korea via agreements with South Korean-based KMS I & T Co., Ltd. and Fine C&S Co. to sell SteraMist™ to their extensive customer bases.
- Signed sales agency agreement with Espire Health Philippines, Inc. to support and deliver TOMI's SteraMist™ suite of products to three Cancer Treatment Specialist Centers in the Philippines.
- Signed distribution and licensing agreement with Plascencia Universal, S. de C.V. in Mexico.
- Launched the TOMI Service Network ("TSN™") to provide regional, national and international large-event mobilization response utilizing TOMI's platform of SteraMist™ products and training.
- Increased domestic customer base in both healthcare and restoration industries.
- Recognized as one of 15 finalists out of 1,500 applications to win a grant from USAID, CDC, DOD, and the Office of the President for the development of a portable disinfection/decontamination unit to be used in the fight against Ebola. Developed three new disinfection/decontamination chamber products for the fight against global pandemics.
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Presented at several prestigious events in 2015 showcasing SteraMist™ and BIT™ Solution.
- Presented at the Global Business Roundtable 5th World Congress 2015 in Johannesburg, South Africa on March 11, 2015.
- Invited by the World Health Organization ("WHO") to present "SteraMist™ Mobile Decontamination Chambers" at the Consultation on Personal Protective Equipment ("PPE") in Geneva, Switzerland on March 25, 2015.
- Accepted invitation from The White House Office of Science and Technology Policy and the U.S. Agency for International Development ("USAID") to present at the "Innovation on the Edge: Accelerating Solutions in the Fight Against Ebola" discussion in Washington, DC, on April 2, 2015.
- Paul Allen Foundation sponsored a representative of the Company to participate and exhibit the SteraMist™ BIT™ platform of technologies at the Ebola Innovation Summit in San Francisco, California on April 16, 2015.
- Sold SteraMist™ BIT™ equipment to one of United States' most secure BSL-4 labs after presenting to the lab personnel, including a group of the world's leading virologists.
- Signed a distribution agreement with ProEx Services to represent TOMI's technology and products in the lab sector.
- Named in manufacturer RG Group's nomination for the Governor's Entrepreneur ImPAct Award as a result of collaboration in the design and manufacture of the SteraMist™ BIT™ product line.
Financial Results for the Three Months Ended March 31, 2015 as Compared to 2014
Net revenue for the three months ended March 31, 2015 was $676,000, as compared to $273,000 during the three months ended March 31, 2014. Gross margins were 58.9%, as compared to 58.8%. Loss from operations was $424,000, as compared to $1.6 million. Fair value adjustments of derivative liability were a non-cash charge of $2.7 million, which compares to a benefit of $1.8 million. Net loss, including the aforementioned fair value adjustments, was $4.3 million, or $0.05 per share, as compared to $97,000, or $0.00 per share.
Financial Results for the Year Ended December 31, 2014 as Compared to 2013
Net revenue for the year ended December 31, 2014 was $2.2 million, as compared to net revenue of $1.2 million for the year ended December 31, 2013. Gross margins were 61.1%, as compared to 58.8%. Loss from operations was $3.8 million, as compared to $1.4 million. Fair value adjustments of derivative liability were a non-cash benefit of $5.9 million, which compares to a charge of $349,000. Net income, including the aforementioned fair value adjustments, was $268,000, or $0.00 per share, as compared to a loss of $5.7 million, or $0.03 per share.
About TOMI™ Environmental Solutions, Inc.
TOMI™ Environmental Solutions, Inc. (OTCQB:TOMZ) is a global bacteria disinfection/decontamination and infectious disease control company, providing eco-friendly environmental solutions for indoor surface disinfection/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 disinfection/decontamination 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, the Association for Professionals in Infection Control and Epidemiology, the Society for Healthcare Epidemiology of America, The Restoration Industry Association, the 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.
– Tables Follow –
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | ||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||
| (UNAUDITED) | ||
| For The Three Months Ended | ||
| March 31, | ||
| 2015 | 2014 | |
| Sales, net | $676,386 | $273,029 |
| Cost of Sales | 278,476 | 113,845 |
| Gross profit | 397,910 | 159,184 |
| Costs and Expenses: | ||
| Professional Fees | 107,032 | 113,830 |
| Depreciation and Amortization | 125,253 | 111,906 |
| Selling Expenses | 94,735 | 61,448 |
| Research and Development | 22,190 | 31,292 |
| Consulting fees | 76,309 | 58,403 |
| Equity Compensation Expense (Note 8) | 125,087 | 1,142,349 |
| General and Administrative | 271,314 | 201,645 |
| Total Costs and Expenses | 821,919 | 1,720,873 |
| Loss from Operations | -424,009 | -1,561,689 |
| Other Income (Expense): | ||
| Amortization of Deferred Financing Costs | -84,450 | -84,450 |
| Amortization of Debt Discounts | -963,348 | -74,968 |
| Fair Value Adjustment of Derivative Liability | -2,673,148 | 1,751,305 |
| Interest Expense | -126,850 | -127,406 |
| Total Other Income (Expense) | -3,847,796 | 1,464,481 |
| Net Loss | ($4,271,805) | ($97,208) |
| Loss Per Common Share | ||
| Basic and Diluted | ($0.05) | $0.00 |
| Basic and Diluted Weighted Average Common Shares Outstanding | 84,043,034 | 80,147,114 |
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||
| ASSETS | ||
| Current Assets: | March 31, | December 31, |
| 2015 | 2014 | |
| (Unaudited) | ||
| Cash and Cash Equivalents | $173,996 | $160,560 |
| Cash – Restricted (Note 6) | 716 | 105,776 |
| Accounts Receivable, net | 611,837 | 441,153 |
| Inventories (Note 3) | 911,905 | 772,833 |
| Prepaid Expenses | 41,054 | 35,404 |
| Other Assets | 36,613 | 36,644 |
| Deferred Financing Costs – net (Note 6) | 115,175 | 199,625 |
| Total Current Assets | 1,891,296 | 1,751,995 |
| Property and Equipment – net (Note 4) | 265,076 | 288,159 |
| Other Assets: | ||
| Intangible Assets – net (Note 5) | 2,564,679 | 2,657,056 |
| Security Deposits | 4,700 | 6,552 |
| Total Other Assets | 2,569,379 | 2,663,608 |
| Total Assets | $4,725,751 | $4,703,762 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) | ||
| Current Liabilities: | ||
| Accounts Payable and Accrued Expenses | $605,615 | $448,063 |
| Accrued Interest on Convertible Notes (Note 6) | 84,567 | 211,417 |
| Accrued Officers Compensation (Note 9) | 50,000 | 41,000 |
| Common Stock to be Issued (Note 12) | 78,388 | 35,925 |
| Customer Deposits | 19,619 | 19,716 |
| Deferred Rent | 18,263 | 15,236 |
| Derivative Liability (Note 7) | 4,402,031 | 1,728,883 |
| Convertible Notes Payable, net of discount at March 31, 2015 and December 31, 2014 of $3,032,685 and $3,996,033, respectively (Note 6) | 2,041,315 | 1,077,967 |
| Total Current Liabilities | 7,299,798 | 3,578,207 |
| Total Liabilities | 7,299,798 | 3,578,207 |
| Commitments and Contingencies | -- | -- |
| Stockholders' Equity (Deficiency): | ||
| Cumulative Convertible Series A Preferred Stock; par value $0.01, 1,000,000 shares authorized; 510,000 shares issued and outstanding at March 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 March 31, 2015 and December 31, 2014 | ||
| Common stock; par value $0.01, 200,000,000 shares authorized; 85,526,522 and 83,646,275 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively. | 855,265 | 836,463 |
| Additional Paid-In Capital | 19,835,048 | 19,281,647 |
| Accumulated Deficit | -23,269,460 | -18,997,655 |
| Total Stockholders' Equity (Deficiency) | -2,574,047 | 1,125,555 |
| Total Liabilities and Stockholders' Equity (Deficiency) | $4,725,751 | $4,703,762 |