TOMI™ Reports Third Quarter 2016 Financial Results

- Grows nine months 2016 net revenue 86% over 2015 -

- To hold third quarter 2016 results conference call today at 4:30 PM ET -

BEVERLY HILLS, Calif., Nov. 14, 2016 (GLOBE NEWSWIRE) -- TOMI™ Environmental Solutions, Inc. ( TOMI) (OTCQX:TOMZ), a global bacteria decontamination and infection prevention company, announced its financial results for the three-months ended September 30, 2016.

Conference Call Information To listen to the call, please dial 1-888-339-0752 or 1-412-902-4193, passcode #10095413. 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 # 10095413. 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.

Dr. Halden Shane, TOMI's Chief Executive Officer, stated: "Our third quarter 2016 results reflect an increase in sales and significant opportunity both domestically and internationally, especially in the Asian marketplace. This demonstrates increased interest for our SteraMist™ platform as customers in various regions of the world and market verticals learn of its compelling value proposition. Collectively, we are in several major facilities that use our technology including Dana-Farber Cancer Institute and the United States Food and Drug Association (U.S.F.D.A.) 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+, MRSA and H 1N 1, which can be difficult and costly to control. The acceptance of our most recent EPA registration amendments by the States of New York and California gives TOMI registration in all 50 U.S. states and further validate our technology and open very lucrative markets for TOMI."

"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 the service Network and their long list of clients in the United States. TSN helps with including the use of SteraMist in many other vertical 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 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.

Recent Business Highlights Domestic
  • 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.

International
  • 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.

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. (OTCQX: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.
TOMI ENVIRONMENTAL SOLUTIONS, INC.  
CONDENSED CONSOLIDATED BALANCE SHEET  
ASSETS        
                       
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    
Prepaid Expenses   132,150       76,730    
Other Assets   36,613        36,613    
Total Current Assets   7,470,321       9,281,519    
         
Property and Equipment - net (Note 4)   560,558       250,264    
         
Other Assets:        
Intangible Assets - net (Note 5)   2,010,417       2,287,548    
Security Deposits   4,700       4,700    
Total Other Assets   2,015,117       2,292,248    
Total Assets $ 10,045,996     $ 11,824,031    
                               
   LIABILITIES AND STOCKHOLDERS' EQUITY                              
                               
Current Liabilities:        
Accounts Payable and Accrued Expenses $   1,170,930     $   1,087,978    
Common Stock to be Issued (Note 12)   45,237       52,721    
Customer Deposits   33,771       35,111    
Deferred Rent   10,092       14,745    
Advances on Grant (Note 11)         210,503    
Total Current Liabilities   1,260,031       1,401,057    
         
         
Total Liabilities   1,260,031       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 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    
Accumulated Deficit   (33,722,926 )     (31,173,973 )  
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
(UNAUDITED)
                   
    For The Three Months Ended   For The Nine Months Ended  
    September 30,   September 30,  
      2016       2015       2016       2015    
                   
Sales, net $ 1,092,332     $ 1,017,130     $ 4,527,840     $  2,433,450    
Cost of Sales   431,621       399,289       1,886,193       953,733    
Gross Profit   660,711       617,841       2,641,648       1,479,717    
                   
Operating Expenses:                
Professional Fees    101,428       179,059       374,609       330,627    
Depreciation and Amortization   148,347       121,857       427,377       371,067    
Selling Expenses   283,515       141,974       1,153,178       333,800    
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    
Consulting Fees   49,734       42,069       280,795       456,611    
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        -     
Grant    -         -         202,451         -     
Interest Expense    -         -         -        (253,700 )  
Total Other Income (Expense)    -         -        214,451        (9,190,696 )  
                   
Net Loss $ (935,353 )   $ (546,216 )   $ (2,548,952 )   $ (12,019,692 )  
                   
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    
                                 

 
INVESTOR/MEDIA RELATIONS CONTACT:Aaron LovelandVP of Marketing and Public Affairs(240) 672-6263aloveland@tomimist.com 

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