Financial Results for the Three Months Ended September 30: 2016 Compared to 2015
- Net revenue grew to $1,092,000, up 7% from $1,017,000.
- Gross margins were 60%, compared to 61%.
- Total costs and expenses decreased to $1,596,000, compared to $1,164,000.
- Loss from operations was $935,000, compared to $546,000.
- At September 30, 2016, cash and cash equivalents were $1.3 million and working capital was $6.2 million, compared to $5.9 million and $7.9 million, respectively, at December 31, 2015.
- TOMI has $4,000,000 in paid inventory in order to meet contractual responsibilities of its distribution partners.
- Received an order for a SteraMist Environmental Unit and a SteraMist Surface Unit from the U.S. Food and Drug Administration in their laboratory research group.
- Added 32 members to the TSN since January 1 st, bringing total membership to fifty-six (56) as of November 14 th and expect to add additional new members in the fourth quarter.
- Developed and installed for the Dana-Farber Cancer Institute - one of the top-ranked cancer center hospitals in the United States - a customized disinfection system and completed two follow-ups disinfection treatments.
- Won bids to conduct disinfection services at three major global pharmaceutical companies.
- Received an order for a SteraMist Surface Unit from the Kansas City University of Medicine and Biosciences for use in the university medical laboratories.
- Began a trial at a major Ivy League Hospital where the SteraMist Surface Unit is being tested in multiple operating rooms with expected study completion in the 3 rd week of November.
- Adoption of TOMI's SteraMist TM BIT technology in the Asian region as the Company's customers commence use of the product in various facilities throughout Asia.
- Continued expansion into the South Korean and Taiwan markets with additional repeat orders placed.
- Continued expansion into the Europe region with an equipment shipment and training performed for a large Pharmaceutical Company in Germany.
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 email@example.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.|
|CONDENSED CONSOLIDATED BALANCE SHEET|
|Current Assets:||September 30, 2016 (Unaudited)||December 31, 2015|
|Cash and Cash Equivalents||$||1,287,984||$||5,916,068|
|Accounts Receivable - net||1,286,899||1,414,576|
|Inventories (Note 3)||4,557,946||1,395,175|
|Deposits on Merchandise (Note 11)||168,729||442,358|
|Total Current Assets||7,470,321||9,281,519|
|Property and Equipment - net (Note 4)||560,558||250,264|
|Intangible Assets - net (Note 5)||2,010,417||2,287,548|
|Total Other Assets||2,015,117||2,292,248|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts Payable and Accrued Expenses||$||1,170,930||$||1,087,978|
|Common Stock to be Issued (Note 12)||45,237||52,721|
|Advances on Grant (Note 11)||-||210,503|
|Total Current Liabilities||1,260,031||1,401,057|
|Commitments and Contingencies||-||-|
|Cumulative Convertible Series A Preferred Stock; par value $0.01, 1,000,000 shares authorized; 510,000 shares issued and outstanding at September 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 September 30, 2016 and December 31, 2015||-||-|
|Common stock; par value $0.01, 200,000,000 shares authorized; 120,825,134 and 120,063,180 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively.||1,208,251||1,200,632|
|Additional Paid-In Capital||41,295,540||40,391,216|
|Total Stockholders' Equity||8,785,966||10,422,974|
|Total Liabilities and Stockholders' Equity||$||10,045,996||$||11,824,031|
|TOMI ENVIRONMENTAL SOLUTIONS, INC.|
|CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS|
|For The Three Months Ended||For The Nine Months Ended|
|September 30,||September 30,|
|Cost of Sales||431,621||399,289||1,886,193||953,733|
|Depreciation and Amortization||148,347||121,857||427,377||371,067|
|Research and Development||92,847||32,832||120,345||74,689|
|Equity Compensation Expense (Note 8)||85,322||109,060||542,291||1,619,890|
|General and Administrative||834,872||537,206||2,506,456||1,122,029|
|Total Operating Expenses||1,596,065||1,164,057||5,405,051||4,308,713|
|Loss from Operations||(935,353||)||(546,216||)||(2,763,403||)||(2,828,996||)|
|Other Income (Expense):|
|Amortization of Deferred Financing Costs||-||-||-||(199,625||)|
|Amortization of Debt Discounts||-||-||-||(3,996,033||)|
|Fair Value Adjustment of Derivative Liability||-||-||-||(3,810,955||)|
|Induced Conversion Costs||-||-||-||(930,383||)|
|Gain on Disposition of Property and Equipment||-||-||12,000||-|
|Total Other Income (Expense)||-||-||214,451||(9,190,696||)|
|Loss Per Common Share|
|Basic and Diluted||$||(0.01||)||$||(0.00||)||$||(0.02||)||$||(0.12||)|
|Basic and Diluted Weighted Average Common Shares Outstanding||120,763,449||119,457,229||120,467,106||97,004,132|
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