— Expanded customer base and increased net revenue 51% from prior year —
— To hold conference call regarding fourth quarter and year end results from 2016 on Tuesday, April 4, 2017 at 4:30pm
EDT —
BEVERLY HILLS, Calif., March 29, 2017 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (“TOMI“) (OTCQX:TOMZ), a global decontamination and infection prevention company that specializes
in disinfection/decontamination sales and services, including the manufacturing, sale and licensing of its SteraMist™, a
hydrogen peroxide-based mist/fog that is registered with the U.S. Environmental Protection Agency (“EPA”), announced its financial
results for the fourth quarter and fiscal year ended December 31, 2016.
Dr. Halden Shane, CEO and Chairman of TOMI, stated: “The state of play for TOMI has never been more dynamic and
TOMI experienced substantial change during 2016. Around the world, healthy living is becoming a priority, which we believe will
result in TOMI seeing greater interest in its products from the healthcare sector, service division and food safety industry.
"Although our net revenue increased by more than 50%, it still fell short of expectations due to an overhaul of
our sales force, administration and the training of new personnel.
"However, we managed uncertainty in the near-term and targeted our investments to accelerate future growth. We
hired energetic and qualified personnel, developed promising technologies, formed important partnerships, and expanded our global
footprint. We also boosted our digital presence, evolved our supply chain, and harnessed sustainable innovation to enhance our
efficiency.”
Financial Results for the Twelve Months Ended December 31, 2016 Compared to 2015
- Net revenue was $6.3 million, a 51% increase from $4.2 million.
- Gross margins were consistent between each quarter averaging approx. 60%.
- Loss from operations was approximately $3.4 million compared to $3.0 million.
- Net loss was $3.2 million, or $0.03 per share, compared to a net loss of $12.2 million, or $0.12 per share.
- At December 31, 2016, working capital was $5.7 million compared to $7.9 million.
Financial Results for the Three Months Ended December 31, 2016 Compared to 2015
- Net revenue was $1,816,000, a 3% increase from $1,758,000.
- Gross margins were 60.1%, compared to 60.7%.
- Loss from operations was $606,000, compared to $157,000.
- Net loss was $608,000, or $0.01 on a per share basis compared a net loss or $157,000 or a break even on a per share
basis.
More detailed financial information and analysis may be found in TOMI’s Annual Report on Form 10-K, which will
be filed with the Securities and Exchange Commission today.
Business Highlights from 2016
- Added 68 new customers domestically and 12 new customers internationally, in various industries
- Expanded our TSN network with the addition of 33 new members
- Continued expansion into international markets with the addition of customers in United Kingdom, Germany, Portugal and
Australia
- Increased service and training revenue to approximately $616,000, as compared to $136,000 in 2015
- Upgraded to OTCQX Best Market
- Expanded EPA label to Hospital-Healthcare disinfectant for use as a misting/fogging agent
- Registered EPA label in all 50 states within the U.S.
Recent Business Highlights
- Completion of $5.3 million private placement funding
- SteraMist™ technology was added to the EPA “List K” of registered antimicrobial products effective against C.
diff Spores
- Established Scientific Advisory Board with experts in intellectual property, biosafety and infection prevention
- Obtained service decontamination engagements with five global pharmaceutical companies
Conference Call
To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10104138. 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
6:30pm EDT the day of the call by dialing 1-877-344-7529 or 1-412-317-0088, passcode #10104138. 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. (OTCQX:TOMZ) is a global decontamination and infection prevention company,
providing eco-friendly environmental solutions for indoor surface disinfection through manufacturing, sales and licensing of its
premier Binary Ionization Technology® (BIT™) platform, which was invented under a defense grant in association with the Defense
Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. BIT™ uses a low percentage Hydrogen Peroxide as its
only active ingredient to produce a hydroxyl radical (OH ion) and is represented by the TOMI™ SteraMist™ brand of products, which
produce a germ-killing aerosol that behaves like a gas.
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
of 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 and The Restoration Industry Association. For additional
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.
| |
| TOMI ENVIRONMENTAL SOLUTIONS,
INC. |
| CONSOLIDATED BALANCE SHEET |
| ASSETS |
|
|
|
| Current Assets: |
|
|
|
| |
|
December 31, 2016 |
|
|
|
December 31, 2015 |
|
| Cash and Cash Equivalents |
$ |
948,324 |
|
|
$ |
5,916,068 |
|
| Accounts Receivable – net |
|
1,521,378 |
|
|
|
1,414,576 |
|
| Inventories (Note 3) |
|
4,047,310 |
|
|
|
1,395,175 |
|
| Deposits on Merchandise (Note 11) |
|
147,010 |
|
|
|
442,358 |
|
| Prepaid Expenses |
|
104,448 |
|
|
|
76,730 |
|
| Other Assets |
|
- |
|
|
|
36,613 |
|
| Total Current Assets |
|
6,768,469 |
|
|
|
9,281,519 |
|
| |
|
|
|
| Property and Equipment – net (Note 4) |
|
611,807 |
|
|
|
250,264 |
|
| |
|
|
|
| Other Assets: |
|
|
|
| Intangible Assets – net (Note 5) |
|
1,918,040 |
|
|
|
2,287,548 |
|
| Security Deposits |
|
4,700 |
|
|
|
4,700 |
|
| Total Other Assets |
|
1,922,740 |
|
|
|
2,292,248 |
|
| Total Assets |
$ |
9,303,016 |
|
|
$ |
11,824,031 |
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Current Liabilities: |
|
|
|
|
|
| Accounts Payable |
$ |
735,879 |
|
|
$ |
1,021,883 |
|
| Accrued Expenses and Other Current Liabilities (Note 13) |
|
278,413 |
|
|
|
118,815 |
|
| Customer Deposits |
|
30,120 |
|
|
|
35,111 |
|
| Deferred Rent |
|
8,541 |
|
|
|
14,745 |
|
| Advances on Grant (Note 11) |
|
- |
|
|
|
210,503 |
|
| Total Current Liabilities |
|
1,052,954 |
|
|
|
1,401,057 |
|
| |
|
|
|
| |
|
|
|
| Total Liabilities |
|
1,052,954 |
|
|
|
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 December 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 December 31, 2016 and December 31, 2015 |
|
- |
|
|
|
- |
|
| Common stock; par value $0.01, 200,000,000 shares authorized; |
|
|
|
|
|
|
|
| 120,825,134 and 120,063,180 shares issued and outstanding |
|
|
|
|
|
|
|
| at December 31, 2016 and December 31, 2015, respectively. |
|
1,208,251 |
|
|
|
1,200,632 |
|
| Additional Paid-In Capital |
|
41,367,946 |
|
|
|
40,391,216 |
|
| Accumulated Deficit |
|
(34,331,234 |
) |
|
|
(31,173,973 |
) |
| Total Stockholders’ Equity |
|
8,250,063 |
|
|
|
10,422,974 |
|
| Total Liabilities and Stockholders’ Equity |
$ |
9,303,016 |
|
|
$ |
11,824,031 |
|
| |
|
|
|
| |
| CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS |
| |
| |
|
|
|
|
|
|
|
| |
For The Three Months Ended |
|
For The Year Ended |
| |
December 31, |
|
December 31, |
| |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
| |
|
|
|
|
|
|
|
| Sales, net |
$ |
1,815,592 |
|
|
$ |
1,758,333 |
|
|
$ |
6,343,432 |
|
|
$ |
4,191,783 |
|
| Cost of Sales |
|
724,307 |
|
|
|
690,306 |
|
|
|
2,610,500 |
|
|
|
1,644,039 |
|
| Gross profit |
|
1,091,285 |
|
|
|
1,068,027 |
|
|
|
3,732,931 |
|
|
|
2,547,744 |
|
| |
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
| Professional Fees |
|
142,317 |
|
|
|
124,999 |
|
|
|
516,926 |
|
|
|
455,626 |
|
| Depreciation and Amortization |
|
159,007 |
|
|
|
128,277 |
|
|
|
586,384 |
|
|
|
499,344 |
|
| Selling Expenses |
|
359,574 |
|
|
|
370,269 |
|
|
|
1,512,752 |
|
|
|
704,069 |
|
| Research and Development |
|
63,914 |
|
|
|
25,632 |
|
|
|
184,259 |
|
|
|
100,321 |
|
| Consulting fees |
|
26,245 |
|
|
|
19,901 |
|
|
|
614,696 |
|
|
|
476,513 |
|
| Equity Compensation Expense (Note 8) |
|
72,405 |
|
|
|
86,503 |
|
|
|
307,040 |
|
|
|
1,706,393 |
|
| General and Administrative |
|
873,569 |
|
|
|
469,073 |
|
|
|
3,380,025 |
|
|
|
1,591,102 |
|
| Total Operating Expenses |
|
1,697,031 |
|
|
|
1,224,654 |
|
|
|
7,102,082 |
|
|
|
5,533,368 |
|
| Loss from Operations |
|
(605,746 |
) |
|
|
(156,628 |
) |
|
|
(3,369,150 |
) |
|
|
(2,985,624 |
) |
| |
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
| Amortization of Deferred Financing Costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(199,625 |
) |
| Amortization of Debt Discounts |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,996,033 |
) |
| Fair Value Adjustment of Derivative Liability |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,810,955 |
) |
| Induced Conversion Loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(930,383 |
) |
| Gain on Disposition of Property and Equipment |
|
- |
|
|
|
- |
|
|
|
12,000 |
|
|
|
(253,700 |
) |
| Grant |
|
- |
|
|
|
- |
|
|
|
199,891 |
|
|
|
- |
|
| Interest Expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(253,700 |
) |
| Total Other Income (Expense) |
|
- |
|
|
|
- |
|
|
|
211,891 |
|
|
|
(9,190,695 |
) |
| |
|
|
|
|
|
|
|
| Net Income (Loss) |
$ |
(605,746 |
) |
|
$ |
(156,628 |
) |
|
$ |
(3,157,259 |
) |
|
$ |
(12,176,319 |
) |
| |
|
|
|
|
|
|
|
| Income (Loss) Per Common Share |
|
|
|
|
|
|
|
| Basic and Diluted |
$ |
(0.01 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.12 |
) |
| |
|
|
|
|
|
|
|
| Basic and Diluted Weighted Average |
|
|
|
|
|
|
| Common Shares Outstanding |
|
120,794,292 |
|
|
|
120,045,746 |
|
|
|
120,557,102 |
|
|
|
102,840,185 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDIA RELATIONS CONTACT Paul Varga Marketing and Public Relations Manager (301) 628-2831 pvarga@tomimist.com
