Q1 2025 TOMI Environmental Solutions Inc Earnings Call
Operator: Greetings. Welcome to the TOMI Environmental Solutions, Inc. first quarter 2025 financial results conference.
Greetings and welcome to the told me Environmental Solutions, Inc. First quarter 2025 financial results Conference call.
Operator: At this time, all participants are in a listen-only mode. Question and Answer Session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone. Please note this conference is being recorded.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
Speaker Change: Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Roseland Christian from IMS Investor Relations you may begin.
Roslyn Christian: I will now turn the conference over to your host, Roslyn Christian from IMS Investor Relations.
Operator: You may disconnect at this time.
Roslyn Christian: Thank you, Operator, and thank you for joining us today for the TOMI Environmental Solutions Investor Update Conference Call.
Speaker Change: Thank you operator.
Speaker Change: And thank you for joining us today for the tiny environmental solutions Investor update conference call.
Roslyn Christian: On today's call is TOMI's CEO and Chairman of the Board, Dr. Halden Shane, EJ Shane, TOMI's Chief Operating Officer, and Nick Jennings, Interim CFO.
Speaker Change: Today's call is Chinese <unk> chairman of the board took the Howden Shane.
Speaker Change: E J, Shane Chinese Chief operating officer, and Nick Jennings interim CFO.
Roslyn Christian: A telephone replay of today's call will be available through May 22, 2025, the details of which are included in the company's press release dated May 8, 2025. A webcast replay will also be available at TOMI's website www.steromist.com Certain written and oral statements made by management of TOMI may constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements 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 conference call is based upon the facts and circumstances known at this time.
Speaker Change: A telephone replay of today's call will be available through may 22nd 2025. The details of which are included in the company's press release dated may eight 2025.
Speaker Change: A webcast replay will also be available at <unk> website, Www Dot service Dot com.
Dustin: Dustin written and oral statements made by management of tiny may constitute forward looking statements as defined in the private Securities Litigation Reform Act of 1995.
Dustin: These forward looking statements should be evaluated in light of important risk factors that could cause actual results to differ materially from anticipated results.
Dustin: The information provided in this conference call is based upon the facts and circumstances known at this time the company undertakes no obligation to update these forward looking statements. After the date of this call.
Roslyn Christian: The company undertakes no obligation to update these forward-looking statements after the date of this call.
Halden Shane: I will now turn the call over to TOMI's CEO and Chairman of the Board, Dr. Halden Shane.
Speaker Change: I will now turn the call over to Tony CEO, and chairman of the board dumped Houghton Shane.
Halden Shane: Thank you, Roslyn, and good afternoon, everyone, and thank you for joining the TOMI Environmental Earnings Call. In this update, we will highlight key developments since our recent report. which wasn't very long ago on the 24th of April. Shared less than a month ago, we're excited to share that TOMI is making remarkable progress and is firmly committed to achieving success in 2025, as reflected by the numbers reported for the first quarter. I've also outlined our plans for the remainder of the year. We're moving through the year with considerably stronger product line and distribution strategy. We have new and diverse service offerings we launched in 2024, along with our innovative product line.
Tony Houghton: Thank you Russell and good afternoon, everyone and thank you for joining that told me environmental earnings call.
Tony Houghton: Updates, we will highlight key developments since our recent report.
Tony Houghton: Which if it wasn't very long ago.
Tony Houghton: 200.
Tony Houghton: 44 failures.
Tony Houghton: Shared less than a month ago. We're excited to share that tells me is making remarkable progress that is firmly committed to achieving success in 2025.
Tony Houghton: As reflected by the numbers reported for the first quarter.
Tony Houghton: I will also outline our plans for the remainder of the year, we are moving through the year with considerably stronger product line and distribution strategy.
Tony Houghton: We have new and diverse service offerings, we launched in 2024.
Tony Houghton: Along with our innovative product lines.
Halden Shane: The SIS-SA. Additionally, our recent collaborations with partners like TBSC, announced on March 25th, 2025, enable us to deliver customized IHP enclosures. Chambers and Hatches directly to our customers. In quarter one of 2025, we achieved a 42% increase in total sales compared to quarter one of 2024. With the upswing continuing into quarter two, the month of April has reflected a 21% increase in sales when compared to the same month last year. and year to date, we've experienced a 169% surge in bit solution sales. compared to the same period last year. That is in the back of 197% increase of solution sales for the first quarter of 2025 compared to 2024.
Tony Houghton: The S I S.
Tony Houghton: SA.
Tony Houghton: Additionally, our recent collaborations with partners like TBS City.
Tony Houghton: On March 25, 2025 enable us to deliver a customized IH field closures.
Tony Houghton: <unk> and hatches directly to our customers.
Tony Houghton: In quarter, one of 2025, we achieved a 42% increase in total sales compared to quarter one of 2024.
With the upswing continuing into quarter two.
Tony Houghton: April has reflected a 21% increase in sales when compared to the same month last year.
Tony Houghton: And year to date.
Tony Houghton: We have experienced.
Tony Houghton: A 116, 9% surge in solutions sales compared to the same period last year.
Tony Houghton: Davidson goes back over 197% increase of solution sales for the first quarter of Chi.
Tony Houghton: And 25 compared to 2024.
Halden Shane: We are optimistic about sustaining this momentum. with a dedicated focus on our STEREMIS integrated system, the SIS offerings, along with exciting new initiatives for our custom-engineered system. To further sustain growth in our consumable bit solution sales. We will continue to expand our customer outreach through targeted marketing initiatives and strategic partnerships. Additionally, we are committed to educating the market on crucial importance of protective disinfection through a SteriMIS Pro certified program. In quarter one, we saw a significant increase in the use of our handheld devices.
Tony Houghton: We are optimistic about sustaining this momentum.
Tony Houghton: With a dedicated focus on our staring this integrated system, the SaaS offerings, along with exciting new initiatives for our custom engineered system.
Tony Houghton: Deferred the sustained growth in our consumable bit solution sales.
Tony Houghton: We will continue to expand our customer outreach, you've targeted marketing initiatives and strategic partnerships.
Tony Houghton: Additionally, we are committed to educating the market on crucial importance of protective disinfection.
Tony Houghton: Starting there's pros certified program.
Tony Houghton: In quarter, one we saw a significant increase in the use of our handheld devices.
Halden Shane: We welcome several new customers, including a new division of the U.S. Army. A Children's Hospital in Philadelphia. Additional Research Universities and Quality Service Providers. The use of star anise is expanding within the egg white manufacturing company I referred. and referenced during our last call. This company has also established itself as a vulnerable, referral source to us. in the food industry, and has provided us with essential procedures and protocols enhancing our expertise in this segment. Notably, our partnership with AlgaFeed, which successfully tested slight contamination, has opened a new aquaculture market for Sturry Mist IHP. In quarter one, two of our international distributors also added Sturimus products to their customer base.
Tony Houghton: We welcome several new customers, including a new division of the U S Army.
Tony Houghton: A children's hospital in Philadelphia.
Tony Houghton: Additional research universities and quality service providers.
Tony Houghton: Yes I'll.
Tony Houghton: I'll start and this is the expanded quite.
Tony Houghton: <unk> manufacturing company I referred.
Tony Houghton: And referenced during our last call.
Tony Houghton: This company has also establish itself as a vulnerable.
Tony Houghton: Valuable.
Tony Houghton: Referral source to us.
Tony Houghton: In the food industry and has provided us with essential procedures and protocols enhancing our expertise in this segment.
Tony Houghton: Notably our partnership with Alger feed.
Tony Houghton: Which successfully tested.
Tony Houghton: <unk> contamination, that's opened the new backlog wholesale market for stereo list IHT.
Tony Houghton: In quarter, one two over the National distributors also Ed staring this products to their customer base.
Halden Shane: A major highlight this quarter was the purchase of both surface units and stainless steel carts by an American Canadian eye health company valued at approximately $170,000. We are currently collaborating with them and their qualification procedures as they also acquired our validation service package. which we expect to complete in quarter two. We also expect this health product company to purchase a similar order for a separate location in the short We continue our work with a major corporation focused on decontaminating heart monitoring devices. This order valued at approximately $288,000 was received in quarter one. with further committed orders in the amount of $45,000 through the project since our last call.
Tony Houghton: A major highlight this quarter was the purchase of both surface units and stainless steel cards by an American Canadian I helped the company.
Tony Houghton: Approximately $170000.
Tony Houghton: We are currently collaborating with them in their qualification procedures as they also acquired our validation service package, which we expect to complete in quarter two.
Tony Houghton: We also expect this health private company to purchase a similar order for a separate location in the short term.
Tony Houghton: We continue our work with a major corporation focused on Decontaminating heart monitor team devices.
Tony Houghton: This order valued at approximately 288000 was received in quarter one.
Tony Houghton: With further committed orders in the amount of 45000.
Tony Houghton: Projects since our last call.
Halden Shane: We are currently in the manufacturing phase of the enclosure. Validation service related to this order is expected to be conducted in quarter three of this year. It's important to highlight at the end of 2024, we had an open sales log of approximately 877,000. by the end of quarter one. or March 31st of this year, that figure has risen to 1.2 million and is currently stands at 1.6 million. This increased backlog is not only from are IHP corporate service plans, but it's also a result of our expanded new service offerings that complement capital equipment purchase. This includes our new product.
Tony Houghton: We are currently in the manufacturing phase of the enclosures.
Tony Houghton: Validation service related to disorder.
Tony Houghton: We can bid.
Tony Houghton: In quarter three of this year.
Tony Houghton: It is important to highlight that the end of 2024, we had an open sales log of approximately 877000.
Tony Houghton: By the end of quarter one.
Tony Houghton: For March 31 of this year that figure has risen to one 2 million.
Tony Houghton: And as currently stands at one 6 million.
Tony Houghton: This increased backlog is not only from.
Tony Houghton: Or I H B corporate service suppliers, but it's also a result of our expanded new service offerings that complement capital equipment purchases.
Tony Houghton: This includes our new product.
Halden Shane: Offering collaboration with partners for made to order IHP enclosure equipment. and the wins of long term project bids for a custom engineered system known as the CES.
Tony Houghton: Offering in collaboration with partners for a made to order IHT enclosure equipment.
Tony Houghton: And the wins of long term project bids for a custom engineered system known as the CES.
Halden Shane: I will now provide a brief overview of the financial results for the first quarter of 2025, compared to the same period last year. Revenue increased to $1,577,000 for the first quarter of 2025, which was up from $1,114,000 in the first quarter of 2024, representing a 42% increase in sales driven by heightened demand for a bit solution, mobile systems, SIS, and increased revenue from IHP corporate service. Our product-based revenues totaled $1 million in Q1 of 2025, reflecting a 35% growth compared to Q1 of 2024. Our service revenues generated $577,000, a 56% increase from the same prior year period.
Tony Houghton: I will now provide a brief overview of our financial results for the first quarter of 2025 compared to the same period last year.
Tony Houghton: Bruce do 1.577 million for the first quarter of 2025, which is up from 1 million 140 <unk> in the first floor of 2024, representing a 42% increase in sales driven by heightened demand for a bit.
Tony Houghton: <unk> mobile systems.
Tony Houghton: Increased revenue from HP corporate services.
Tony Houghton: Our project based revenues totaled $1 million.
Tony Houghton: She one of 2025, reflecting a 35% growth compared to Q1 of 2024 hour service revenues generated 577000% to 56% increase from the same prior year period.
Halden Shane: BitSolution sales reached approximately $300,000. Marking nearly a 200% increase from just over 100,000 in the first quarter of last year. Additionally, technical support for existing customers equipment continue to see a notable increase at 42% indicating that our clients are utilizing our equipment more frequently for their regular operations. A gross margin as a percentage of sales for the three months ended, March 31, 2025, was 60.4%, compared to 60.2% in the same prior year period. Operating loss for the quarter was approximately $754,000, an improvement from the operating loss of $1,226,000 in the same quarter last year. Our net loss was approximately $256,000 or 0.01 per basis and diluted share compared to $1,310,000 or 7 cent loss per basic and diluted share in the prior year.
Tony Houghton: <unk> solutions sales reached approximately $300000.
Tony Houghton: Mark gained nearly a 200% increase from just over 100000 in the first quarter of last year.
Tony Houghton: Additionally, technical support for existing customers equipment continued to see a notable increase at 42%, indicating that our clients are utilizing our equipment more frequently or register operations.
Tony Houghton: Our gross margin as a percentage of sales for the three months ended March 31 two.
Tony Houghton: 2001 spot was 64% compared to 62% in the same prior year period operating loss for the quarter was approximately 754000.
Tony Houghton: An improvement from the operating loss of $1 million 226000 in the same quarter last year.
Tony Houghton: Our net loss was approximately $256000 or.
Tony Houghton: 0.01 per basis, and diluted share compared to 1.310 million.
Tony Houghton: Or 7% seven cent loss per basic and diluted share in the prior year.
Halden Shane: As of March 31, 2025, our financial position consists of cash and cash equivalent of approximately $674,000. working capital of 3.8 million and shareholder equity of 3.8 We are very focused on prudently managing our working capital. We have made progress on our accounts payable, particularly subsequent to the close of the quarter. Our accounts payable stands at approximately $700,000. will lower than the 1.7 million reported for quarter one 2025, which puts us in a good position to exit quarter two with similar cash positions to quarter As mentioned, we anticipate a positive trend in sales throughout the year for BITSolution.
Tony Houghton: It's really good as.
Tony Houghton: As of March 31, 2025, our financial position.
Tony Houghton: Cash and cash equivalent of approximately 674000.
Tony Houghton: Working capital of $3 8 million and shareholder equity of $3 8 million.
Tony Houghton: We are very focused on prudently managing our working capital we have made progress on our accounts payable, particularly subsequent to the close of the quarter. Our accounts payables stands at approximately 700000.
Tony Houghton: Lower than the $1 7 million reported for quarter, one 2025, which puts us in a good position to exit.
Tony Houghton: Quarter, two was similar cash positions to quarter one.
Tony Houghton: As mentioned, we anticipate a positive trend in sales throughout the year for that solution.
Halden Shane: Equipment Services, and Custom Design. Quarter 2 has begun on a strong note. Highlighted by other significant wins for our SIS platform, totaling over $180,000 for a university. Further device purchases by our egg white manufacturing customer. and the USDA's increased usage of steroid. Additionally, we have a promising opportunity with the service provider franchise. Quarter One, we welcome one group from Middle Tennessee. Followed by two additional providers from this franchise this current quarter. While still in the early stages of development, we are scheduled to meet with franchise teams next week regarding our SteriPath. We will keep you updated on these developments, but it's encouraging to see that our targeted marketing initiatives and strategic partnerships are beginning to yield results.
Tony Houghton: <unk> services and custom designs.
Tony Houghton: Quarter two was.
Tony Houghton: Strong note.
Tony Houghton: Highlighted by other significant wins for our SaaS platform.
Tony Houghton: Over 180000 for a university.
Tony Houghton: First the device purchases by our egg white manufacturing customer.
Tony Houghton: And the USDA has increased usage of steroid list.
Tony Houghton: Additionally, we have a promising opportunity with the service provider franchise.
Tony Houghton: In quarter, one we welcomed one group from Middle Tennessee.
Tony Houghton: Well by two additional providers from this franchise this current quarter.
Tony Houghton: While still in the early stages of development, we are scheduled to meet with the franchise teams next week regarding our start back.
Tony Houghton: We will keep you updated on these developments, but it's encouraging.
Tony Houghton: To see that our targeted marketing initiatives and strategic partnerships are beginning to yield results.
Halden Shane: with the recent launch of the SIS platform. The arrangement of our custom systems can become a bit complex.
Tony Houghton: With the recent launch of the SaaS platform.
Tony Houghton: The arrangements are assumed.
Tony Houghton: Systems can be kind of like this Tom Plex.
Halden Shane: To ensure everyone is on the same page, I would like to take this opportunity to clarify our status regarding the three offerings that can be classified as custom or made to order. some extent. Custom Engineered System, or CES. The Hybrid and the Sturry Mist Integrated System or SIS. We currently have a Active fully operational custom engineered systems, including the previously announced two systems for Merck. And we anticipate their bid solution orders in the second half of the year. Additionally, we are in negotiations to install the hybrid at another building on the Merck campus. with an estimated value of approximately $300,000.
To ensure everyone is on the same page I would like to take this opportunity to clarify a status regarding the three offerings that can be classified as custom or made to order.
Tony Houghton: Some extent.
Tony Houghton: The custom engineered system or CES.
Tony Houghton: The high bread and the Steri missed integrated system or SaaS.
Tony Houghton: We currently have eight.
Tony Houghton: Active fully operational custom engineered systems, including the previously announced two systems for Merck.
Tony Houghton: And we anticipate their bid solution orders in the second half of the year.
Tony Houghton: Additionally, we are in negotiations to install the hybrid at another building on the Merck campus with an estimated value of approximately $300000.
Halden Shane: Although the timeline for implementation is still being determined. We are at various stages with four purchase bids for CES systems, either already accounted for in revenue or in open bookings. regarding the full pipeline reported during our last call. We are actively negotiating $2 million among five potential orders for our CES. We are routinely discussing specific Specifications with these five. and are highly optimistic about securing these wins. The hybrid currently include two fully installed and operational units. Our initial hybrid previously referred to as a modified environment system has been in use for the past three years.
Tony Houghton: Although the timelines for implementation is still being determined.
Tony Houghton: Yeah.
Tony Houghton: We are at various stages with four purchase bids for CES systems, either already accounted for in revenue or an open bookings.
Tony Houghton: Regarding the full pipeline reported during our last call.
Tony Houghton: We are actively negotiating $2 million among five potential orders for our CES.
Tony Houghton: We are routinely discussing specifics.
Tony Houghton: Applications with these five.
Tony Houghton: And are highly optimistic about curating these wins.
Tony Houghton: A high bred currently include two fully installed and operational units. Our initial highbred previously referred to as a modified environments system.
Tony Houghton: Just the past three years and this customer consistently purchases approximately $50000, whereas the biggest solution annually.
Halden Shane: And this customer consistently purchases approximately $50,000 worth of BITS solution annually. second system is getting started, while the third is in the final stages of customer internal approval. We are actively engaging with seven different opportunities. Each with varying timelines. It's important to note that this product offering is dependent on and frequently changes during the negotiation process. Number One These companies would likely opt for our CEF. such is challenging to provide a precise estimate for the expected outcomes for some of the seven opportunities. Our current bids range from approximately $150,000 to $800,000. The SIS platform can be complex as it may involve a combination of efforts with the new partners we've discussed over the past few quarters.
Tony Houghton: The second.
Tony Houghton: Is it just getting started while this number is in the final stages of customer internal approval.
Tony Houghton: We are actively engaging with seven different opportunities for hybrid.
Tony Houghton: Each with varying timelines, it's important to note that this product offering is dependent on and frequently changes during the negotiation process.
Tony Houghton: Wise.
Tony Houghton: These companies would likely opt for our CES as such it is challenging to provide a precise estimate for the expected outcomes for some of these opportunities.
Tony Houghton: Current business range from approximately $150000 to $800000.
Tony Houghton: The SaaS platform can be complex as the may involve a combination of efforts with the new partners. We've discussed over the past few quarters.
Halden Shane: These could entail providing a fully enclosed system utilizing our technology or simply the purchase of our capital mobile equipment. The SIS-SA along with accompanied services we now provide. Currently, we have two installed in operational SIS systems. One more awaiting the completion of our customers internal process. estimated for completion by the end of the year. Additionally, we have five systems pending, either waiting for enclosures to be manufactured, or for services from TOMI to be scheduled according to customer timeline. The pipeline for SIS and SIS-SA has shown substantial potential since its recent launch. Although still early to find concrete numbers with confidence, the five already accounted for in either sales backlogs, according to approximately $950,000.
Tony Houghton: These could entail providing a fully enclosed system utilizing our technology or simply the purchase of our capital mobile equipment.
Tony Houghton: Yes.
Tony Houghton: Say along with accompanying services, we now provide.
Tony Houghton: Currently we have two installed and operational SaaS systems with one more awaiting the completion of our customers' internal processes.
Tony Houghton: Estimated for completion by the end of the year. Additionally, we have five system spending either waiting for enclosures to be manufactured offer services from told me to be scheduled according to customer timelines.
Tony Houghton: The pipeline for SaaS and S. I S. S. A has shown substantial potential since its recent launch.
Tony Houghton: Although it's still early supply countries numbers with confidence.
Tony Houghton: We've already accounted for in either sale backlogs.
Tony Houghton: To approximately $950000.
Halden Shane: TOMI anticipates this to be a game-changer for our brand, keeping pace with industry advancements. Our ongoing communication with enclosure manufacturing companies worldwide reinforces this optimism.
Tony Houghton: While we anticipate this to be a game changer for our brand keeping pace with industry advancements our ongoing communication with enclosure manufacturing companies worldwide reinforces this optimism.
Halden Shane: We look forward to sharing more formal facts as the year progresses, with even greater developments anticipated in 2026.
Tony Houghton: We look forward to sharing more formal con cracks as the year progresses with even greater developments anticipated in 2026.
Halden Shane: Other brief updates from the past month include the ongoing expansion of Fresnius copies across various locations. which I anticipate will be officially announced shortly. We are diligently working on enhancing our sales infrastructure by establishing new distribution channels, recruiting independent representatives, and most importantly, bringing in qualified business developers to effectively manage our growing customer base and support new sales initiatives. These efforts are expected to positively impact our revenue in 2025 and beyond. Additionally, we are actively seeking strong global partners for 2025 and continuing our discussions with those mentioned during our last call. Our focus remains on rebuilding our brand presence in Panama.
Tony Houghton: A brief updates just from the past months include the ongoing expansion of <unk> copies across various locations.
Tony Houghton: Which I anticipate will be officially announce shortly we are diligently working on enhancing our sales infrastructure by establishing new distribution channels recruiting independent representatives and most importantly, bringing in qualified business developers to effectively manage our growing customer base and.
Tony Houghton: Support new sales initiatives. These efforts are expected to positively impact our revenue.
Tony Houghton: 2025 and beyond.
Tony Houghton: Additionally, we are actively seeking strong global partners for 2025, and continuing our discussions with those messages during our last call.
Tony Houghton: <unk> focus remains on rebuilding our brand presence in Panama.
Halden Shane: Nigeria and Israel with New Partnerships. as well as establishing a new relationship in Australia and Chile and adding distributors in Costa Rica and Brazil. We will continue to capitalize on positive momentum in IHP corporate service deployment, which has generated approximately 633,000 for the year from deployment service jobs alone. The IHP Corporate Service Deployment Pipeline currently stands at $1,000,000 in open proposals. for 2025. We are excited to announce that we hope to finalize a new partnership with a company we recently engaged with for the first time in quarter three of last year. This partnership would involve contracting the TOMI IHP corporate service team for two separate buildings, servicing them twice a year and has the potential to make them our highest service customer.
Tony Houghton: Nigeria, and Israel with new partnerships as well as establishing a new relationship in Australia, and Chile, and adding distributors in Costa Rico and Brazil.
Tony Houghton: We will continue to capitalize on positive momentum in IHT corporate service deployment, which has generated approximately 633000 for the year from deployment service jobs alone.
Tony Houghton: The IHT corporate service deployment pipeline currently stands at $1 million and open proposals.
Tony Houghton: 2025.
Tony Houghton: We are excited to announce that we hope to finalize a new partnership with a company recently engaged with for the first time in what.
Tony Houghton: Quarter three of last year.
This partnership would involve contracting the told me IHG corporate service team.
Tony Houghton: There were two separate buildings servicing them twice a year and has the potential to make them our highest service customer.
Halden Shane: Our first service under this arrangement is expected at the end of May, followed by the second service in July. We anticipate finalizing our arrangement with this customer and commencing services at the end of the current quarter. in summer.
Our first service center. This arrangement is expected at the end of May.
Tony Houghton: By the second service in July we anticipate finalizing our arrangements will discuss smart and commencing services at the end of the current quarter.
Tony Houghton: In summary.
Halden Shane: We are encouraged by significant progress TOMI has made in the first quarter of 2025. with substantial increases in total sales and bit solution sales that showcase the effectiveness of our strategies and product off Our ongoing efforts to enhance our sales infrastructure. expand our distribution channels, and establish strategic partnership positions as well for continued growth throughout the year.
Tony Houghton: We are encouraged by significant progress told me is made in the first quarter of 2025.
Tony Houghton: With substantial increases in total sales and best solution sales that showcase the effectiveness of our strategies and product offering.
Tony Houghton: Our ongoing efforts to enhance our sales infrastructure.
Tony Houghton: Expand our distribution channels and established strategic partnership positions us well for continued growth throughout the year.
Halden Shane: As we look ahead, we remain committed to advancing the innovations of our SIS platform and custom engineered systems and offer to our impressive customer base and new customers, while also strengthening our presence in key and new markets.
Tony Houghton: As we look ahead we.
Tony Houghton: We remain committed to advancing the innovations of our SaaS platform and custom engineered systems and offer to our impressive customer base and new customers. While also strengthening our presence in tea and new markets.
Halden Shane: As always, we thank all of you for your continued support and belief in TOMI. I know it's been a long road, but together and as always, we will embrace the opportunities that lie ahead and we look forward to sharing our successes with you in coming quarters.
Tony Houghton: As always we thank all of you for your continued support and belief in told me.
Tony Houghton: I know, it's been a long road, but together and as always we will embrace the opportunities that lie ahead, and we look forward to sharing our successes with you in coming quarters.
Operator: Operator, let's open the call to questions. Certainly.
Speaker Change: Operator, let's open the call for questions.
Operator: At this time, we will be conducting a question and answer If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question area. You may press star 2 if you would like to remove your question from the call. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment, please, while we poll for questions.
Speaker Change: Certainly at this time, we will be conducting a question and answer session.
Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad a.
Speaker Change: A confirmation tone will indicate your line is in the question queue.
Speaker Change: You May press Star two if you would like to remove your question from the queue for.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please while we poll for questions.
John Nelson: Your first question for today is from John Nelson, a private investor. Hi. Great job on the quarter. Thanks very much as a shareholder. And it sounds like, you know, you're making tremendous progress and the future looks bright.
Speaker Change: Your first question for today is from John Nelson, a private investor.
Speaker Change: Hi.
Speaker Change: Great job on the quarter, thanks, very much and as a shareholder.
Speaker Change: And it sounds like you know where you are.
Speaker Change: We're making tremendous progress and.
Speaker Change: The future looks bright.
John Nelson: So I've got a couple of questions.
Speaker Change: So I've got a couple of questions.
John Nelson: First, first one is, do you have any financial goals for the year 2025 that you can share with us?
Speaker Change: First the first one is.
Speaker Change: Do you have any.
Speaker Change: Our financial goals for the year 2025 that you can share with us.
Unknown Speaker: Unknown Speaker We know that 2025 is going to be a great year, John. trying not to go forward and project but We're pretty confident that we're going to improve on our last year. Okay, good. And anything...
Speaker Change: We know that 2025 is going to be a great year John.
Speaker Change: We're <unk>.
Speaker Change: Trying not to go forward.
Speaker Change: Jack but.
Speaker Change: We're pretty confident that we're going to improve on our last year numbers.
Speaker Change: Okay. Good.
Speaker Change: And anything.
Unknown Speaker: Do you anticipate any effects from the tariffs trade policy? Well, you know, it's It's hard to tell. Basically, it's changing daily. We had one minor problem with South Korea where they had a 15% tariff and our distributor got back to us and, you know, wanted to split that with us. And I'm not sure if we made a decision yet. But, you know, we'll work with them. We're not having any problems with international sales because of the tariffs.
Speaker Change: And do you anticipate any.
Speaker Change: From the tariffs trade policy.
Speaker Change: Well you know it.
Speaker Change: It's hard to tell.
Speaker Change: Basically.
Speaker Change: It's the changing daily.
Speaker Change: We had one later.
Speaker Change: Along with South Korea, where they had a 15% tariff in our distributor got back to US and you know what are the split back with us and.
Speaker Change: Not sure if we made a decision yet but.
Speaker Change: We'll work with them.
Speaker Change: We're not having any problems with international sales.
Speaker Change: Because of the tariffs.
Unknown Speaker: And I certainly hope that, and today was a very encouraging day, that a lot of this tariff stuff will come to an end shortly or within the next 60 days.
Speaker Change: I certainly hope that.
Speaker Change: Today was a very encouraging day.
Speaker Change: That's a lot of this stuff will come to an end shortly or within the next 60 days.
Unknown Speaker: Okay, and then with the government's recent Budget and Staff Cuts at Various Agencies. Do you anticipate that being of any significant problems for TOMI?
Speaker Change: Okay, and then with.
Speaker Change: With the government's recent.
Speaker Change: Budget.
Speaker Change: And staff cuts and various agencies.
Speaker Change: Do you anticipate that being of any significant.
Speaker Change: Problems for Tony.
Unknown Speaker: No, not at all.
Speaker Change: No not at all in fact, I think we're seeing an increase.
Unknown Speaker: In fact, I think we're seeing an increase in in the right aspects of the government that utilize our product. There will be doing a lot more critical Testing and studies on everything.
Speaker Change: In the right aspects of the government that utilize our product.
Speaker Change: There would be doing a lot more critical.
Speaker Change: Testing and.
Speaker Change: Studies.
Unknown Speaker: And I think that it should be, this should be good for us in relationship to the filling the government's needs. And I think that they definitely need our product and all aspects of government for the best disinfection decontamination. But from the lab standpoint, I think that's increasing the Okay.
Speaker Change: Everything and I think that.
Speaker Change: Uh huh.
Speaker Change: It should be this should be good for us.
Speaker Change: <unk> shift to the filling of the government's needs and I think that they definitely need our product in all aspects of government for the best Disinfection decontamination.
Speaker Change: But from the lab standpoint.
Speaker Change: It's been producing this year.
Speaker Change: Okay.
Unknown Speaker: And I ask this question every quarter, just because I know that they could open up significant new markets for TOMI over the long run.
Speaker Change: And I'm I ask these questions every quarter, just because I know that.
Speaker Change: They could open up significant new markets for told me over the long run.
Unknown Speaker: Anything new on food safety? We have, we're getting flooded with interest and requests for You know, quotes, and in all aspects, and our companies, as I mentioned, are very large, and they seem to like our product and are using it. And I truly believe that food safety will surpass life sciences in time. And we're even getting requests from researchers at universities that want to use our product and test it for food safety in various areas, you know, specific, you know, further than what I mentioned on the call. Okay.
Speaker Change: Anything new on food safety.
Speaker Change: We have we're getting flooded with.
Speaker Change: Interest in.
Speaker Change: Requests for.
Speaker Change: Quotes and all aspects in our companies as I mentioned are very large.
Speaker Change: And they seem to like our product and are using it.
Speaker Change: I truly believe that food safety will surpass life sciences in time.
Speaker Change: And we're even getting requests from researchers at universities that want to use our product.
First it for food safety in various areas specific further than what I mentioned on the call.
Speaker Change: Okay has anything.
Unknown Speaker: Has anything materialized as far as either a number of requests or progress on the use of sterilists for prevention of bird flu transmission? Unknown Speaker Nothing that I'm recently aware of. I mean, we do have remediators and professional cleaners that are using our product for that. But, you know, governments you know, there, I believe, treating it, you know, just as a flu and not overcompensating for it, which, you know, is fine. But there's an increase in individuals that want to use it for disinfection, decontamination for the treatment of bird flu and other related viruses. Okay, and then anything...
Speaker Change: Interior alliances firearm as far as either.
Speaker Change: A number of requests or progress on the youth sterile mist for.
Speaker Change: And prevention of bird.
Speaker Change: Bird flu transmission.
Speaker Change:
Speaker Change: Nothing that I am recently aware of I mean, we do have remediated and professional cleaners that are using our product.
Speaker Change: For that.
Speaker Change: But you know governments.
Speaker Change: I believe that treating it just as a flu and not overcompensating for it which you know.
It is fine, but there is an increase in individuals that want to use it for disinfection decontamination for the treatment of bird flu and other viruses.
Speaker Change: Okay, and then anything.
Speaker Change:
Speaker Change: Anything any new developments on.
Unknown Speaker: Ceramist as an ethylene oxide replacement. We have and we are in talks with companies that would replace ethylene oxide with ceramics. and they are, we are negotiating in those spaces.
Speaker Change: Ceramist, eze and ethylene oxide replacement.
Speaker Change: Yeah.
Speaker Change:
Speaker Change: We have and we are.
Speaker Change: And talks with the companies that <unk>.
Speaker Change: Would replace ethylene oxide was sorry missed.
Speaker Change: And they are we are negotiating and those that space.
Unknown Speaker: Was the the order that you got for treating pacemakers by the medical device manufacturer, was that used in replacement of ethylene oxide? or just for another layer.
Speaker Change: What is the the order that you got for treating.
Speaker Change: Treating pacemakers by the medical device manufacturer was that.
Speaker Change: Used in replacement of ethylene oxide.
Speaker Change: Or just hiring another layer.
Unknown Speaker: Hello, EJ, do you know the answer to that?
Speaker Change: Oh I didn't know the answer to that.
EJ Shane: Certainly, so that one company is using us for disinfecting their heart monitoring devices. What was stated is we think it will be a good foot in the door to work on our 510K to get fully registered as a medical device disinfection product. And so encompassing IHP into a full enclosed chamber will lead to an easier way in to replace ethylene oxide. So with time, I absolutely do think so. That one particular one was not in replacement. We actually helped them develop an entire new protocol for their use. Okay. Thank you.
Speaker Change: And it's certainly not without one company is using us for disinfecting their heart monitoring devices. What was stated is we think it'll be a good fit in the door to work on a five 10-K.
Speaker Change: To get fully registered as a medical device disinfection product and so encompassing I H P.
Speaker Change: Fully enclosed chamber will lead to an easier way into replace ethylene oxide.
Speaker Change: So with time I, absolutely do think so that one particular win was not in replacement, we actually help them developed an entire new protocols for their use.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: <unk>.
EJ Shane: And then, and you had mentioned, again, it's critical that TOMI continues to educate the market with information about your superior product. Is there or have you developed any new ways to try to educate the market? or to spread the word. Yes, of course. So we did, we launched, that's what the StairMath Pro-Certified Program is all about, not to have it just be for our service providers, but our entire customer base and our distributors and their representatives as well. So it is held, all our information on a learning management system which has ongoing training, protocol developments, regardless of the segment or industry they find themselves in, and we update it routinely and weekly.
Speaker Change: And then.
Speaker Change: And you had mentioned.
Speaker Change: And again it.
Speaker Change: It's critical that Tony continues to educate the market.
Speaker Change:
Speaker Change: With information about your superior product.
Speaker Change: Is there or have you.
Speaker Change: <unk> developed a any new ways to try to educate the market.
Speaker Change: To spread the word.
Speaker Change: Yeah.
Speaker Change: Yes of course, so we did we launched the that's about the service Pro certified program is all about not too high.
Speaker Change: Just before our service providers, our entire customer base, and our distributors and their representatives as well.
Speaker Change: So it is held all of the information on our learning management system, which has ongoing training.
Speaker Change: Total development, regardless of the segment or industry, they find themselves in a and we update it routinely in weekly so it creates more of a education platform and communication outlet to really get involved in using ceramist and getting out there.
Unknown Speaker: So it creates more of an education platform and communication outlet to really get involved in using StairMath and getting out there. So it is newly developed. We have moved pretty quickly on it. I expect real results coming from it in terms of the amount of users come next year, but it has shown already some results, especially around usage of the technology and different segments. Okay, and is the I didn't wasn't sure if I caught it right, but is the SIS system being used by the heart monitor? a company to treat devices or is that a another form of hybrid or CES?
Speaker Change: So it is newly developed them, we have moved pretty quickly on it.
Speaker Change: I expect the real results coming from it in terms of the amount of users come next year.
Speaker Change: But it has shown.
Speaker Change: Already some some result.
Speaker Change: Actually around usage of the technology and different.
Speaker Change: Segment.
Speaker Change: Okay.
Speaker Change: And is the.
Speaker Change: I didn't, I wasn't sure if I caught it right, but is the SIS system being used by the
Speaker Change: company to treat devices, or is that another form of hybrid or CES?
Unknown Speaker: No, you're you're absolutely right.
Unknown Speaker: It's the the SIS standalone So they did purchase the capital mobile piece of equipment which will integrate within the chamber that we're designing with our partners Okay, and it might be useful to the shareholders and listeners just to describe how the SIS actually works. As far as sterilizing equipment like the heart monitors. I'm assuming it's not just a... Stick it in the container and push the button and that's it. It is, actually. It would be very similar to our environment system. So, you know, the key aspect of the technology is it all runs off the same science.
Speaker Change: No, you're absolutely right, it's the SIS standalone, so they did purchase the capital mobile piece of equipment which will integrate within the chamber that we're designing with our partners.
Okay, and I might be useful to the shareholders and listeners.
just to describe how the SIS actually works.
You know, as far as sterilizing equipment like the heart monitors.
It's not just a... I'm assuming it's not just a...
Speaker Change: Stick it in the container and push the button and that's it.
Speaker Change: It is, actually. It would be very similar to our environment system. So...
Unknown Speaker: So, in essence, it's just the amount of, you know, applicators that they would require. The standalone sells the applicators, which houses the cold plasma arc, you know, the basis of our technology, separately, because they can use it elsewhere within the facility. So, trying to promote more use out of machines, where they can connect it to the enclosure, and then also use it on a handheld spray, should they want. So, it's all encompassing the unit itself, very similar to our building, but only houses one applicator. So, for smaller areas.
Speaker Change: The key aspect of the technology is it all runs off the same science, so in essence it's just the amount of you know applicators that they would require. The standalone sells the applicators which houses the cold plasma arc, you know the basis of our technology.
Speaker Change: separately because they can use it elsewhere within the facility, so trying to promote more use out of machines where they can connect it to the enclosure and then also use it on a handheld spray should they want.
Speaker Change: So, it's all encompassing the unit itself, very similar to our building, but only houses one applicator, so for smaller areas.
Unknown Speaker: Okay, and this is just me speculating, but is there a Use or need for something like this in Hospitals. Yes, I do believe there would be. We sell to our Sparrow Box, which is something we're marketing towards hospitals with the standalone. It's a new initiative, but it's getting put out there. But yes, it would be a good unit for. All right, good.
Use or need for something like this in...
Hospitals
Speaker Change: Yes, I do believe there would be. We sell to our Starbucks, which is something we're marketing towards hospitals with the standalone. It's a new initiative, but it's getting put out there.
John Nelson: Well, that's all of my questions. Thanks very much. Good job. Great job by the whole team. Thank you. Thank you for your support.
But yes, it would be a video in that front.
Speaker Change: All right, good. Well, that's all of my questions. Thanks very much. Good job by the whole team. Thank you. Thank you. Thank you. Thank you for your support.
Jeff Fasselli: Your next question is from Jeff Fasselli, Fasselli Capital. Hey guys, thanks for taking the question. Just a quick one here. Solutions sales, they've been pretty strong as of late. Could you just provide a bit more color there? Kind of background on what's driving that?
Your next question is from Jeff Vaselli, Vaselli Capital.
Jeff Fasselli: Hey guys, thanks for taking the question. Just a quick one here. Solutions sales, they've been pretty strong as of late. Could we just provide a bit more color there? Kind of background on what's driving that?
Unknown Speaker: Sure. So the model itself has always been this razor razor blade model where we get technology out being the razor and we sell a lot of razor blades. And, you know, it's taken a while to get the razors in the hands of the right people that constantly use razor blades. And we have recently. gotten large orders from people that are currently using our product more. And we anticipate this to increase going fully in the year. So, you know, we're very, very thrilled about the usage and about the increase in salutes.
Sure
Jeff Fasselli: So the model itself has always been this razor razor blade model where we get technology out being the razor and we sell a lot of razor blades.
Jeff Fasselli: And, you know, it's taken a while to get the razors in the hands of the right people that constantly use
Razors
and we have recently [inaudible]
Jeff Fasselli: that large orders from people that are currently using our products more. And we anticipate this to increase John Folly in the year.
Jeff Fasselli: So, you know, we're very very thrilled about the usage and about the increase in solitance.
Unknown Speaker: And, you know, we're just constantly working at selling more razors out there, more technology, so they can utilize more of our solution or blades. Got it. Great. Thank you very much. That's all for me. Once again, if you would like to ask a question, please press star 1.
Jeff Fasselli: and we're just constantly working at stelling more razors out there, more technology so they can utilize more of our solution or blades.
Jeff Fasselli: Got it. Great. Thank you very much. That's all from me. Sure. Sure.
Speaker Change: Once again, if you would like to ask a question, please press star one.
Halden Shane: We have reached the end of the question and answer session, and I will now turn the call over to Dr. Shane for closing remarks.
Speaker Change: We have reached the end of the question and answer session and now will now turn a call over to Dr. Shane for closing remarks.
Halden Shane: Well, I want to thank you both for joining us today, wherever you might be in the world, and look forward to presenting our next quarter results. and look forward to a great year at TOMI and I hope everybody has a wonderful day and I want to thank my TOMI team for all the hard work that they've done. Thank you.
Speaker Change: Well, I want to thank you both for joining us today wherever you might be in the world and look forward to presenting our next quarter results.
Speaker Change: and look forward to a great year at TOMI, and I hope everybody has a wonderful day. I don't want to thank my TOMI team for all the hard work that they've done. Thank you.
Operator: Corporation. End Thank you.
Operator: This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.