TOMI Environmental Solutions, Inc. Reports Third Quarter 2017 Results

TOMI Environmental Solutions, Inc. Reports Third Quarter 2017 Results

BEVERLY HILLS, Calif., Nov. 14, 2017 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (?TOMItm?) (OTCQX:TOMZ), a global decontamination company that specializes in disinfection/decontamination sales and services, including SteraMisttm, a hydrogen peroxide-based mist/fog registered with the U.S. Environmental Protection Agency (?EPA?) for use as a hospital-healthcare disinfectant, announces its financial results for the third quarter of 2017.

Dr. Halden Shane, TOMI's Chief Executive Officer, stated: ?Consistent with our expectations we continue to see improved trends going forward into 2018. This is driven by our focus on both customer satisfaction and client retention. We continue to attract new clients with revamped marketing, new corporate infrastructure, new sales and new service innovation. During the third quarter our revenue was essentially flat over same quarter of 2016. In addition, our efforts to streamline the business and more effectively manage our costs structure resulted in an operating loss improvement of $539,000 from the third quarter of 2016. TOMI is still waiting for all the efforts put into the regulatory approvals in the Asian markets to reach materiality.?

Dr. Shane continued, ?Our strategy remains to take advantage of the positive business momentum and strong sales pipeline emerging in 2018. Our operational results are not reflective of the true momentum of our business.  We anticipate improving our financial results going into next year by focusing on exceeding customer expectations while attracting new clients to our technology by using our marketing, sales and innovative capabilities.? 

Financial Results for the Three Months Ended September 30, 2017 Compared to 2016

• Net revenue was $1,030,000, compared to $1,092,000.
• Gross margins were 62.0%, compared to 60.5%.
• Loss from operations was $396,000, compared to $935,000.
• Net loss was 457,000, or $0.00 on a per share basis compared to a net loss of $935,000 or $0.01 on a per share basis.
• At September 30, 2017, cash and cash equivalents were $5,270,000 and working capital was $4,721,000, compared to $948,000 and $5,716,000, respectively, at December 31, 2016.

Third Quarter: Recent & Current Business Highlights

• Settlement of suit initiated against Astro Pak Corporation to protect intellectual property rights resulted in the assignment of the iHP trademark and a favorable cash settlement on July 26, 2017.
• The custom build-in system that was designed and installed into a vivarium facility was featured in the August 2017 publication of ALNmag.  
• Expansion of EPA label to include efficacy against Salmonella and Norovirus was secured on July 27, 2017.
• Continued expansion of sales force in Life Science Division with addition of an internal sales manager, manufacturing representatives and comprehensive on-boarding and training offered for deeper penetration in this market with current and viable sales leads provided.
• Further support of TOMI Divisions was evidenced by attendance and presence at industry leading conferences, AALAS, APIC Divisions, AHE, ISSA, ABRA, and ABSA which generated hundreds of leads for future sales.
• Recently received registration in Canada which allows back-log of sales leads and requests for service to be fulfilled, and create new opportunities for growth with potential service providers.
• TOMI Service Network(TSN) has been provided significant increase in corporate support and marketing / sales / advertising efforts to encourage recruitment of new providers and develop business leads.
• Significant spike in recent months of requests for proposals for both build-in systems and service opportunities.
• Recently accepted into leading GPO's supplier list (Premier) comprised of thousands of hospitals nationwide. Additional research to submit to more GPOs underway and remains a focus now and into the future.
• Design patent for Taiwan and China was accepted/approved/awarded for decontamination cart and rigid decontamination chamber, and the USPTO accepted applications for the rigid and flexible decontamination chambers, both of which were used for TOMI's USAid Ebola grant.
• Recently hired a consulting firm to further efforts to improve upon GxP requirements in the pharmaceutical and food safety industries which will support another potential revenue stream moving forward.
• Entered into distribution agreement with Protak Scientific Ltd., a United Kingdom-based company that manufacturers enzyme indicators for hydrogen peroxide for a quick (less than 90 second) decontamination performance validation.  Pursuant to the agreement, TOMI  will distribute Protak's enzyme indicators as well as use the product in our service engagements.
• Continued expansion into Europe through execution of a sales and distribution agreement with Westbury Decontamination Ltd., a United Kingdom-based service and distribution company.

About TOMI Environmental Solutions, Inc.
TOMI Environmental Solutions, Inc. (OTCQX:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through manufacturing, sales and licensing of its premier Binary Ionization Technology® (BITtm) 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. BITtm uses a low percentage Hydrogen Peroxide as its only active ingredient to produce a hydroxyl radical (OH ion), represented by the TOMItm SteraMisttm brand of products, which produces a germ-killing aerosol that works like a visual non-caustic gas.

TOMI's products are designed to service a broad spectrum of commercial structures including but not limited to hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities (when not in operation), military barracks, police and fire departments, 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, please visit http://www.tomimist.com/ or contact us at [email protected].

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.

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Juliana deRosa
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