BEVERLY HILLS, Calif., May 18, 2020 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® (“TOMI”) (OTCQB:TOMZ), is a global company specializing in disinfection and decontamination, utilizing its premier Binary Ionization Technology (BIT™) platform through its SteraMist products - a hydrogen peroxide-based mist and fog composed of ionized Hydrogen Peroxide (iHP™), announced its results for the first quarter of 2020.

TOMI Chief Executive Officer, Dr. Halden Shane stated, “In the beginning of 2020 the world saw a surge globally for disinfectants and an enhanced level of clean to help prevent and mitigate the spread of the SARS CoV-2 coronavirus, which has put TOMI and its SteraMist® line of products front and center in the fight against this global pandemic. 

During this pandemic our customer base has grown significantly. We remain committed to keeping up with the increased demand and ensuring that those fighting against the SARS CoV-2 virus are well-equipped with our technology and solution. We continue innovating for a safer world by fighting coronavirus and other known and emerging pathogens.”

Financial Results for the Three Months Ended March 31, 2020 compared to March 31, 2019

Balance sheet highlights as of March 31, 2020 and December 31, 2019

Current Business Highlights To Date

Revenues

Customers

Business Highlights

TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®

TOMI™ Environmental Solutions, Inc. (OTCQB:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BIT™ solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP™). Represented by the SteraMist® brand of products, iHP™ produces a germ-killing aerosol that works like a visual non-caustic gas.

TOMI 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, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.

TOMI 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, America Seed Trade Association, and The Restoration Industry Association.

For additional information, please visit http://www.tomimist.com/ or contact us at info@tomimist.com.

 
TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
    
ASSETS   
Current Assets:   
March 31, 2020
(Unaudited)		December 31, 2019
Cash and Cash Equivalents$3,755,816  $897,223 
Accounts Receivable - net 3,146,197   1,494,658 
Inventories 635,529   2,315,214 
Vendor Deposits 1,266,560   141,052 
Prepaid Expenses 170,856   187,664 
Total Current Assets 8,974,958   5,035,811 
    
Property and Equipment – net 1,257,831   1,367,864 
    
Other Assets:   
Intangible Assets – net 845,663   939,010 
Operating Lease - Right of Use Asset 664,198   674,471 
Capitalized Software Development Costs - net 83,803   94,278 
Other Assets 122,957   114,033 
Total Other Assets 1,716,621   1,821,792 
Total Assets$11,949,410  $8,225,467 
        
LIABILITIES AND SHAREHOLDERS’ EQUITY       
       
Current Liabilities:   
Accounts Payable$832,177  $713,222 
Accrued Expenses and Other Current Liabilities 655,736   450,112 
Accrued Officers Compensation 30,383   - 
Accrued Interest -   66,667 
Customer Deposits 1,017,533   - 
Current Portion of Long-Term Operating Lease 73,851   71,510 
Convertible Notes Payable, net of discount of $0   
at December 31, 2019 -   5,000,000 
Total Current Liabilities 2,609,680   6,301,511 
    
Long-Term Liabilities:   
Long-Term Operating Lease, Net of Current Portion 1,015,465   1,034,413 
Total Long-Term Liabilities 1,015,465   1,034,413 
Total Liabilities 3,625,145   7,335,924 
    
Commitments and Contingencies -   - 
    
Shareholders’ Equity:   
Cumulative Convertible Series A Preferred Stock;   
par value $0.01 per share, 1,000,000 shares authorized; 510,000 shares issued
and outstanding at March 31, 2020 and December 31, 2019 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, 2020 and December 31, 2019 -   - 
Common stock; par value $0.01 per share, 250,000,000 shares authorized;  
133,517,083 and 124,700,418 shares issued and outstanding  
at March 31, 2020 and December 31, 2019, respectively. 1,335,170   1,247,004 
Additional Paid-In Capital 47,863,977   43,136,683 
Accumulated Deficit (40,879,982)  (43,499,244)
Total Shareholders’ Equity 8,324,265   889,543 
Total Liabilities and Shareholders’ Equity$11,949,410  $8,225,467 
    


TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
 
      
  For The Three Months Ended 
  March 31,  
   2020   2019  
      
Sales, net $7,053,418  $1,252,658  
Cost of Sales  2,565,410   493,310  
Gross Profit  4,488,008   759,348  
      
Operating Expenses:     
Professional Fees  136,125   105,481  
Depreciation and Amortization  171,909   176,845  
Selling Expenses  378,645   441,671  
Research and Development  59,458   92,577  
Equity Compensation Expense  182,772   80,917  
Consulting Fees  81,545   35,006  
General and Administrative  818,145   694,880  
Total Operating Expenses  1,828,599   1,627,377  
Income (loss) from Operations  2,659,409   (868,030) 
      
Other Income (Expense):     
Amortization of Debt Discounts  -   (17,534) 
Interest Income  542   1,030  
Interest Expense  (40,689)  (50,000) 
Total Other Income (Expense)  (40,147)  (66,504) 
      
Income (loss) before income taxes  2,619,261   (934,532) 
Provision for Income Taxes  -   -  
Net income (loss) $2,619,261  $(934,532) 
      
Net income (loss) Per Common Share     
Basic $0.02  $(0.01) 
Diluted $0.02  $(0.01) 
      
Basic Weighted Average Common Shares Outstanding  126,802,819   124,659,307  
Diluted Weighted Average Common Shares Outstanding  144,941,677   124,659,307  
      


TOMI ENVIRONMENTAL SOLUTIONS, INC.
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED ) 
          
   For the Three Months Ended March 31,  
   2020   2019  
Cash Flow From Operating Activities:     
Net Income (Loss) $2,619,261  $(934,532) 
Adjustments to Reconcile Net Income (Loss) to   . 
Net Cash Provided by (Used in) Operating Activities:     
Depreciation and Amortization  171,909   176,845  
Amortization of Lease Liability  39,329   39,644  
Amortization of Debt Discount  -   17,534  
Amortization of Software Costs  10,475   -  
Equity Compensation Expense  182,772   80,917  
Value of Equity Issued for Services  48,000   44,000  
Reserve for Bad Debt  25,000   (105,000) 
Inventory Reserve  (100,000)  -  
Changes in Operating Assets and Liabilities:     
Decrease (Increase) in:     
Accounts Receivable  (1,676,539)  222,922  
Inventory  1,815,942   288,827  
Prepaid Expenses  16,807   6,792  
Vendor Deposits  (1,125,508)  (79,275) 
Other Assets  (8,924)  (64,914) 
Increase (Decrease) in:     
Accounts Payable  118,955   (475,851) 
Accrued Expenses  232,813   225,072  
Accrued Interest  (66,667)  (50,000) 
Accrued Officer Compensation  30,383   (40,208) 
Customer Deposits  1,017,533   (1,486) 
Lease Liability  (35,865)  -  
      
Net Cash Provided By (Used in) Operating Activities  3,315,678   (648,714) 
      
Cash Flow From Investing Activities:     
Capitalized Software Costs  -   (125,704) 
Purchase of Property and Equipment  (14,585)  (34,582) 
Net Cash (Used in) Investing Activities  (14,585)  (160,286) 


   For the Three Months Ended March 31,  
   2020   2019  
Cash Flow From Financing Activities:     
Proceeds from Exercise of Warrants  57,500   -  
Repayment of Principal Balance on Convertible Note  (500,000)  -  
Net Cash Used in Financing Activities  (442,500)  -  
Increase (Decrease) In Cash and Cash Equivalents  2,858,594   (809,000) 
Cash and Cash Equivalents - Beginning  897,223   2,004,938  
Cash and Cash Equivalents – Ending $3,755,816  $1,195,938  
      
Supplemental Cash Flow Information:     
Cash Paid for Interest $107,356  $100,000  
Cash Paid for Income Taxes $-  $800  
Non-Cash Investing and Financing Activities:     
Accrued Equity Compensation $27,189  $59,845  
Conversion of Note Payable into Common Stock $4,500,000  $-  
Equipment, net Transferred to Inventory $36,256  $-  
      


Reconciliation of Net Income to EBITDA (Adjusted Net Loss)  
     
  For The Three Months Ended
  March 31,
   2020   2019 
  (Unaudited) (Unaudited)
Net income (loss) $  2,619,261  $     (934,532)
     
  Interest Income   (542)  (1,030)
  Interest Expense   40,689   50,000 
  Depreciation and Amortization     171,909   194,379 
EBITDA (Adjusted Net Loss) $  2,831,317  $  (691,183)
         

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.

Use of Non-GAAP Measures

The Company has supplemented its reported GAAP (generally accepted accounting principles) financial information with non-GAAP measures. EBITDA and Adjusted Net Loss was derived by taking earnings before interest expense (net), taxes, depreciation and amortization. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. The Company believes this non-GAAP measure is useful to investors as it provides a basis for evaluating the Company's operating results in the ordinary course of its operations. This non-GAAP measure is not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with its results of operations as determined in accordance with U.S. GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with, and not in lieu of, the corresponding GAAP measures. EBITDA are reconciled in the tables above to the most directly comparable measure as reported in accordance with GAAP.

INVESTOR RELATIONS CONTACT

Harold Paul
hpaul@tomimist.com