Q2 2026 TOMI Environmental Solutions Inc Earnings Call

August 14, 2026

Operator: Good day, everyone, and welcome to the TOMI Environmental Solutions, Inc. second quarter 2026 financial results conference call. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star one on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, John Nesbitt. Sir, the floor is yours.

Speaker #1: If you have any questions or comments during the presentation, you may press star 1 on your phone to enter the question queue at any time. We will open the floor for your questions and comments after the presentation.

Speaker #1: It is now my pleasure to hand the floor over to your host, John Nesbett. Sir, the floor is yours.

Speaker #2: Thank you for joining us today for the TOMI Environmental Solutions investor update conference call. On today's call are TOMI's Chief Executive Officer and Chairman, Dr. Halden Shane; Chief Operating Officer, EJ Shane; and Interim Chief Financial Officer, Nero Srirathan.

John Nesbett: Thank you for joining us today for TOMI Environmental Solutions investor update conference call. On today's call is TOMI's Chief Executive Officer and Chairman, Dr. Halden Shane, Chief Operating Officer, EJ Shane, and Interim Chief Financial Officer, Niro Srirathan. A telephone replay of today's call will be available through 21 August 2026. The details of which are included in the company's press release. A webcast replay will also be available at TOMI's website, www.steramist.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 actual results to differ materially from our anticipated results. The information provided on this conference call is based upon the facts and circumstances known at this time.

Speaker #2: A telephone replay of today’s call will be available through August 21, 2026. The details of which are included in the company’s press release. A webcast replay will also be available at TOMI’s website, www.steramist.com.

Speaker #2: 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.

Speaker #2: These forward-looking statements should be evaluated in light of important risk factors that could cause actual results to differ materially from our anticipated results. The information provided on this conference call is based upon the facts and circumstances known at this time.

Speaker #2: Please refer to our filings with the Securities and Exchange Commission for a discussion of these risk factors. The company undertakes no obligation to update these forward-looking statements after the date of this call.

John Nesbett: Please refer to our filings with the Securities and Exchange Commission for a discussion of these risk factors. The company undertakes no obligation to update these forward-looking statements after the date of this call. I will now turn the call over to TOMI's Chief Executive Officer and Chairman of the Board, Dr. Halden Shane. Please go ahead.

Speaker #2: I would now turn the call over to TOMI's Chief Executive Officer and Chairman of the Board, Dr. Halden Shane. Please go ahead.

Speaker #3: Thank you, John, and thank you all for joining us today. Since signing our definitive agreement with Carbonian Corp. at the end of June, we have stayed closely engaged with their company.

Halden S. Shane: Thank you, John, and thank you all for joining us today. Since signing our definitive agreement with Carbonion Corp at the end of June, we have stayed closely engaged with their company. The integration of these two complementary technologies, each delivering exceptional performance in its respective markets, continues to advance as planned. First, let me start with this. TOMI SteraMist decontamination business has now delivered growth for three consecutive quarters. Our Q2 2026 results reflect another healthy quarter for TOMI, with continued positive momentum for the strategic initiatives we have implemented. As always, we remain committed to keeping shareholders informed as these efforts progress. In Q2 of this year, we saw growth across four key metrics compared to both Q1 of this year and Q2 of last year.

Halden Shane: Thank you, John, and thank you all for joining us today. Since signing our definitive agreement with Carbonion Corp at the end of June, we have stayed closely engaged with their company. The integration of these two complementary technologies, each delivering exceptional performance in its respective markets, continues to advance as planned. First, let me start with this. TOMI SteraMist decontamination business has now delivered growth for three consecutive quarters. Our Q2 2026 results reflect another healthy quarter for TOMI, with continued positive momentum for the strategic initiatives we have implemented. As always, we remain committed to keeping shareholders informed as these efforts progress. In Q2 of this year, we saw growth across four key metrics compared to both Q1 of this year and Q2 of last year.

Speaker #3: The integration of these two complementary technologies, each delivering exceptional performance in its respective markets, continues to advance as planned. But first, let me start with this.

Speaker #3: TOMI SteraMist Decontamination Business has now delivered growth for three consecutive quarters. Our second quarter 2026 results reflect another healthy quarter for TOMI. With continued positive momentum for the strategic initiatives we have implemented, and as always, we remain committed to keeping shareholders informed as these efforts progress.

Speaker #3: In the second quarter this year, we saw growth across four key metrics compared to both the first quarter of this year and the second quarter of last year.

Speaker #3: Those four areas were bid solution sales; mobile equipment; single applicators, which is where TOMI's patented IHP intellectual property resides; and support services, including qualifications, acceptance testing, and training programs.

Halden S. Shane: Those four areas were BIT solution sales, mobile equipment, single applicators, which is where TOMI's patented iHP intellectual property resides, and support services, including qualifications, acceptance testing, and training programs. The increase in applicator sales and support services stem directly from initiatives introduced in late 2024 and early 2025, further validating our strategic focus. We continue to pursue new opportunities and additional growth strategies throughout 2026 without interruption. Our Q2 results demonstrate a revenue increase of 118% year-over-year and 36% sequentially from Q1 2026. BIT solution sales exceeded $700,000 for the H1 of the year and continue to trend upward, which we believe positions us to finish the year with higher sales than in each of the prior two years, reaffirming our full year revenue guidance.

Halden Shane: Those four areas were BIT solution sales, mobile equipment, single applicators, which is where TOMI's patented iHP intellectual property resides, and support services, including qualifications, acceptance testing, and training programs. The increase in applicator sales and support services stem directly from initiatives introduced in late 2024 and early 2025, further validating our strategic focus. We continue to pursue new opportunities and additional growth strategies throughout 2026 without interruption. Our Q2 results demonstrate a revenue increase of 118% year-over-year and 36% sequentially from Q1 2026. BIT solution sales exceeded $700,000 for the H1 of the year and continue to trend upward, which we believe positions us to finish the year with higher sales than in each of the prior two years, reaffirming our full year revenue guidance.

Speaker #3: The increase in applicator sales and support services stems directly from initiatives introduced in late 2024 and early 2025, further validating our strategic focus. We continue to pursue new opportunities and additional growth strategies throughout 2026 without interruption.

Speaker #3: Our second quarter results demonstrate a revenue increase of 118% year over year and 36% sequentially from the first quarter of 2026. Bid solution sales exceeded $700,000 for the first half of the year and continue to trend upward, which we believe positions us to finish the year with higher sales than in each of the prior two years, reaffirming our full-year revenue guidance.

Speaker #3: On the costs and cash front, our disciplined overhead management drove a 10% year-over-year reduction in quarterly operating expenses to $1.63 million, led by significant savings across general and administrative costs.

Halden S. Shane: On the cost and cash front, our disciplined overhead management drove a 10% year-over-year reduction in quarterly operating expenses to $1.63 million, led by significant savings across general and administrative costs. This cost discipline, combined with $1.92 million in net proceeds raised through our equity line of credit, strengthened our balance sheet, expanding our working capital to $1.82 million and increasing cash and cash equivalents to $322,000 at quarter end. Additionally, we continue to make substantial operational progress towards remediating our historic material weakness. During the quarter, we strengthened our finance leadership with dedicated CPA oversight, formalized close and revenue recognition procedures, and instituted rigorous inventory and treasury controls. These proactive actions reflect our strong commitment to full remediation, operational discipline, and robust financial reporting. The ongoing health of the company continues to be reflected in a growing sales backlog.

Halden Shane: On the cost and cash front, our disciplined overhead management drove a 10% year-over-year reduction in quarterly operating expenses to $1.63 million, led by significant savings across general and administrative costs. This cost discipline, combined with $1.92 million in net proceeds raised through our equity line of credit, strengthened our balance sheet, expanding our working capital to $1.82 million and increasing cash and cash equivalents to $322,000 at quarter end. Additionally, we continue to make substantial operational progress towards remediating our historic material weakness. During the quarter, we strengthened our finance leadership with dedicated CPA oversight, formalized close and revenue recognition procedures, and instituted rigorous inventory and treasury controls. These proactive actions reflect our strong commitment to full remediation, operational discipline, and robust financial reporting. The ongoing health of the company continues to be reflected in a growing sales backlog.

Speaker #3: This cost discipline, combined with $1.92 million in net proceeds raised through our equity line of credit, strengthened our balance sheet—expanding our working capital to $1.82 million and increasing cash and cash equivalents to $322,000 at quarter end.

Speaker #3: Additionally, we continue to make substantial operational progress towards remediating our historic material weakness during the quarter. We strengthened our finance leadership with dedicated CPA oversight, formalized close and revenue recognition procedures, and instituted rigorous inventory and treasury controls.

Speaker #3: These proactive actions reflect our strong commitment to full remediation, operational discipline, and robust financial reporting. The ongoing health of the company continues to be reflected in a growing sales backlog.

Speaker #3: At the end of last year, TOMI reported a backlog of $1.6 million, which grew to $1.7 million by the end of this year's first quarter, then to $2.2 million by the end of the second quarter, and currently stands at $2.6 million.

Halden S. Shane: At the end of last year, TOMI reported a backlog of $1.6 million. That grew to $1.7 million by year end of this year's Q1, then $2.2 million by the end of Q2, and currently stands at $2.6 million. This steady expansion in our sales backlog reflects the strength of our automated integrated system and the expanded service offerings we have implemented. The backlog continues to grow even as we fulfill existing orders, demonstrating both sustained demand and strong execution across our sales efforts. We are pleased to report the delivery of SteraMist iHP chambers to a Fortune 500 medical device manufacturer, marking an important milestone. This represents our first fully designed, manufactured, and assembled chamber engineered specifically for integration with our SteraMist standalone system, part of our integrated SIS platform. This is different from the pass-through system announced last year.

Halden Shane: At the end of last year, TOMI reported a backlog of $1.6 million. That grew to $1.7 million by year end of this year's Q1, then $2.2 million by the end of Q2, and currently stands at $2.6 million. This steady expansion in our sales backlog reflects the strength of our automated integrated system and the expanded service offerings we have implemented. The backlog continues to grow even as we fulfill existing orders, demonstrating both sustained demand and strong execution across our sales efforts. We are pleased to report the delivery of SteraMist iHP chambers to a Fortune 500 medical device manufacturer, marking an important milestone. This represents our first fully designed, manufactured, and assembled chamber engineered specifically for integration with our SteraMist standalone system, part of our integrated SIS platform. This is different from the pass-through system announced last year.

Speaker #3: This steady expansion in our sales backlog reflects the strength of our automated integrated system and the expanded service offerings we have implemented. The backlog continues to grow, even as we fulfill existing orders, demonstrating both sustained demand and strong execution across our sales efforts.

Speaker #3: We are pleased to report the delivery of Steramist IHP chambers to a Fortune 500 medical device manufacturer, marking an important milestone. This represents our first fully designed, manufactured, and assembled chamber—engineered specifically for integration with our Steramist standalone system, part of our integrated SIS platform.

Speaker #3: This is different from the pass-through system announced last year. This chamber is distinct, an advancement in our technology platform, and enables us to formally advance our 510(k) submission process with the FDA.

Halden S. Shane: This chamber is a distinct advancement in our technology platform and enables us to formally advance our 510(k) submission process with the FDA. Achieving 510(k) clearance would authorize the marketing of our technology for specific medical device applications in the United States, significantly expanding our addressable market, enhancing regulatory credibility, and opening new commercial opportunities in the healthcare and life science sector. In parallel, we have been actively collaborating with two additional partners to develop a next generation, all-in-one, fully autonomous iHP chamber. This system is designed for the decontamination of medical devices, electronics recycling, pharmaceutical components, laboratory equipment, biotech materials, food packaging, aerospace components, and other high-value items requiring reliable, enclosed decontamination. This new chamber is more intelligent than our original Steribox and operates without the need for a separate mobile equipment attachment, offering a streamlined, fully integrated solution.

Halden Shane: This chamber is a distinct advancement in our technology platform and enables us to formally advance our 510(k) submission process with the FDA. Achieving 510(k) clearance would authorize the marketing of our technology for specific medical device applications in the United States, significantly expanding our addressable market, enhancing regulatory credibility, and opening new commercial opportunities in the healthcare and life science sector. In parallel, we have been actively collaborating with two additional partners to develop a next generation, all-in-one, fully autonomous iHP chamber. This system is designed for the decontamination of medical devices, electronics recycling, pharmaceutical components, laboratory equipment, biotech materials, food packaging, aerospace components, and other high-value items requiring reliable, enclosed decontamination. This new chamber is more intelligent than our original Steribox and operates without the need for a separate mobile equipment attachment, offering a streamlined, fully integrated solution.

Speaker #3: Achieving 510(k) clearance would authorize the marketing of our technology for specific medical device applications in the United States, significantly expanding our addressable market, enhancing regulatory credibility, and opening new commercial opportunities in the healthcare and life science sector.

Speaker #3: In parallel, we've been actively collaborating with two additional partners to develop a next-generation, all-in-one, fully autonomous IHP chamber. This system is designed for the decontamination of medical devices, electronics recycling, pharmaceutical components, laboratory equipment, biotech materials, food packaging, aerospace components, and other high-value items requiring reliable, enclosed decontamination.

Speaker #3: This new chamber is more intelligent than our original SteraBox and operates without the need for a separate mobile equipment attachment, offering a streamlined, fully integrated solution.

Speaker #3: One partnership is focused on serving our international customers, while the other targets the domestic market, allowing us to grow both sectors in tandem. April began on a strong note with a significant win at Interfex, where we secured a new partnership with a top-tier American health company renowned for its innovative premixed, ready-to-use medication formulations.

Halden S. Shane: One partnership is focused on serving our international customers, while the other targets the domestic market, allowing us to grow both sectors in tandem. April began on a strong note with a significant win at INTERPHEX, where we secured a new partnership with a top-tier American health company renowned for its innovative, pre-mixed, ready-to-use medication formulations. We have since joined forces with this organization on a range of projects and collaborations, closing the quarter with additional sales. The customer purchased equipment at the show, and they have continued to expand its requirements throughout the implementation of the project as it moved forward. While we are unable to share further details at this time, we anticipate this company will become one of our top customers. In addition, one of their senior technical leaders has joined TOMI in an advisory capacity, lending their expertise on the scientific and engineering front.

Halden Shane: One partnership is focused on serving our international customers, while the other targets the domestic market, allowing us to grow both sectors in tandem. April began on a strong note with a significant win at INTERPHEX, where we secured a new partnership with a top-tier American health company renowned for its innovative, pre-mixed, ready-to-use medication formulations. We have since joined forces with this organization on a range of projects and collaborations, closing the quarter with additional sales. The customer purchased equipment at the show, and they have continued to expand its requirements throughout the implementation of the project as it moved forward. While we are unable to share further details at this time, we anticipate this company will become one of our top customers. In addition, one of their senior technical leaders has joined TOMI in an advisory capacity, lending their expertise on the scientific and engineering front.

Speaker #3: We have since joined forces with this organization on a range of projects and collaborations, closing the quarter with additional sales. The customer purchased equipment at the show, and they have continued to expand their requirements throughout the implementation of the project as it moved forward. While we are unable to share further details at this time,

Speaker #3: We anticipate this company will become one of our top customers. In addition, one of their senior technical leaders has joined TOMI in an advisory capacity, lending their expertise on the scientific and engineering front.

Speaker #3: We look forward to leveraging this individual's expertise across multiple integration projects for similar customers seeking to implement SteraMist IHP technology within their proprietary mechanical systems.

Halden S. Shane: We look forward to leveraging this individual's expertise across multiple integration projects for similar customers seeking to implement SteraMist iHP technology within their proprietary mechanical systems. Also in April, we completed the installation of a SteraMist Hybrid system at a highly respected private research university on the East Coast. The customer has already placed a second order scheduled for next year. in May, one of our newly associated government agencies purchased significant amount of accessories in preparation for the deployment of their Environment system. Also during that same month, we onboarded several new food safety customers using the SteraPak. Moving to June, it continued this positive momentum with additional government orders from the Department of Health, expanded iHP adoption among existing food safety customers, and the installation of another fully automated custom system in the United Kingdom, the second pharmaceutical company in the region to implement our CES product line.

Halden Shane: We look forward to leveraging this individual's expertise across multiple integration projects for similar customers seeking to implement SteraMist iHP technology within their proprietary mechanical systems. Also in April, we completed the installation of a SteraMist Hybrid system at a highly respected private research university on the East Coast. The customer has already placed a second order scheduled for next year. in May, one of our newly associated government agencies purchased significant amount of accessories in preparation for the deployment of their Environment system. Also during that same month, we onboarded several new food safety customers using the SteraPak. Moving to June, it continued this positive momentum with additional government orders from the Department of Health, expanded iHP adoption among existing food safety customers, and the installation of another fully automated custom system in the United Kingdom, the second pharmaceutical company in the region to implement our CES product line.

Speaker #3: Also, in April, we completed the installation of a SteraMist hybrid system at a highly respected private research university on the East Coast. The customer has already placed a second order scheduled for next year.

Speaker #3: In May, one of our newly associated government agencies purchased significant amounts of accessories in preparation for the deployment of their environmental system. Also, during that same month, we onboarded several new food safety customers using the SteriPak.

Speaker #3: Moving to June, it continued this positive momentum with additional government orders from the Department of Health, expanded IHP adoption among existing food safety customers, and the installation of another fully automated custom system in the United Kingdom.

Speaker #3: This is the second pharmaceutical company in the region to implement our CES product line. We expect our UK partner, PCA, to drive further adoption in the near term across markets.

Halden S. Shane: We expect our UK partner, Total Clean Air, to drive further adoption in the near term across markets. Also in June, we expanded our domestic distribution network by adding new partners with established relationships and familiarity with our technology. This includes a distributor specialized in emergency services, contacts on the East Coast, and on the West Coast, our iHP Corporate Service partner secured a meaningful opportunity in healthcare sector and expanded its arsenal of iHP equipment and BIT Solution. In the healthcare sector, we have seen growing adoption of iHP technology by special pathogen units throughout the H1 of this year, with additional opportunities developing for the H2 of the year. These special pathogen units manage high-consequence infectious diseases and require rapid, validated, and comprehensive decontamination of rooms, equipment, and personal protective equipment.

Halden Shane: We expect our UK partner, Total Clean Air, to drive further adoption in the near term across markets. Also in June, we expanded our domestic distribution network by adding new partners with established relationships and familiarity with our technology. This includes a distributor specialized in emergency services, contacts on the East Coast, and on the West Coast, our iHP Corporate Service partner secured a meaningful opportunity in healthcare sector and expanded its arsenal of iHP equipment and BIT Solution. In the healthcare sector, we have seen growing adoption of iHP technology by special pathogen units throughout the H1 of this year, with additional opportunities developing for the H2 of the year. These special pathogen units manage high-consequence infectious diseases and require rapid, validated, and comprehensive decontamination of rooms, equipment, and personal protective equipment.

Speaker #3: Also, in June, we expanded our domestic distribution network by adding new partners with established relationships and familiarity with our technology. This includes a distributor specializing in emergency services, contacts on the East Coast, and, on the West Coast, our IHP corporate service partner secured a meaningful opportunity in the healthcare sector and expanded its arsenal of IHP equipment and bid solution.

Speaker #3: In the healthcare sector, we are seeing growing adoption of IHP technology by special pathogen units throughout the first half of this year, with additional opportunities developing for the second half of the year.

Speaker #3: These special pathogen units manage high-consequence infectious diseases and require rapid, validated, comprehensive decontamination of rooms, equipment, and personal protective equipment. They require a solution that delivers broad-spectrum efficacy against resilient pathogens and reduces manual intervention while maintaining the highest safety standards.

Halden S. Shane: They require a solution that delivers broad-spectrum efficacy against resilient pathogens and reduces manual intervention while maintaining the highest safety standards, capabilities that align directly with the strengths of our SteraMist iHP platform. We also secured a purchase from a healthcare facility for our first NV+ all-in-one stainless steel cart, featuring a rotating applicator, integrated lights, and full automation, which is scheduled for delivery by the end of Q3. It continues to be an active period on the registration and regulatory front. TOMI's innovative disinfection product is now approved for use in Austria, Italy, the Netherlands, Belgium, Denmark, Germany, Hungary, Spain, Great Britain, Northern Ireland, and Ireland. We have also added Switzerland through an amendment, and we expect additional approvals for France, Poland, Portugal, and Romania. NSF is rewriting the rules on biosafety cabinet decontamination.

Halden Shane: They require a solution that delivers broad-spectrum efficacy against resilient pathogens and reduces manual intervention while maintaining the highest safety standards, capabilities that align directly with the strengths of our SteraMist iHP platform. We also secured a purchase from a healthcare facility for our first NV+ all-in-one stainless steel cart, featuring a rotating applicator, integrated lights, and full automation, which is scheduled for delivery by the end of Q3. It continues to be an active period on the registration and regulatory front. TOMI's innovative disinfection product is now approved for use in Austria, Italy, the Netherlands, Belgium, Denmark, Germany, Hungary, Spain, Great Britain, Northern Ireland, and Ireland. We have also added Switzerland through an amendment, and we expect additional approvals for France, Poland, Portugal, and Romania. NSF is rewriting the rules on biosafety cabinet decontamination.

Speaker #3: These are capabilities that align directly with the strengths of our SteraMist IHP platform. We also secured a purchase from a healthcare facility for our first NV Plus all-in-one stainless steel cart.

Speaker #3: Featuring a rotating applicator, integrated lights, and full automation, which is scheduled for delivery by the end of the third quarter. It continues to be an active period on the registration and regulatory front.

Speaker #3: TOMI's innovative disinfection product is now approved for use in Austria, Italy, the Netherlands, Belgium, Denmark, Germany, Hungary, Spain, Great Britain, Northern Ireland, and Ireland.

Speaker #3: We have also added Switzerland through an amendment, and we expect additional approvals for France, Poland, Portugal, and Romania. NSF is rewriting the rules on biosafety cabinet decontamination.

Speaker #3: TOMI played a key role in advancing this decision at the NSF meeting in June. The industry is shifting away from listing legacy, known methods and brands, such as paraformaldehyde, and moving towards strict performance-based criteria focused on efficacy, validation, and material compatibility.

Halden S. Shane: TOMI played a key role in advancing this decision at the NSF meeting in June. The industry is shifting away from listing legacy known methods and brands, such as paraformaldehyde, and moving towards strict performance-based criteria focused on efficacy, validation, and material compatibility, areas where SteraMist iHP technology excels. We continue to strengthen our intellectual property portfolio, submitting four new utility patent applications in Q2, giving us additional worldwide protection for our technology. This month, the EPA has granted a new unconditional registration for AgriMist, TOMI's fourth EPA label. This expanded label significantly broadens our approved use sites to include a wide range of food safety applications. The registration authorizes direct application of iHP to indoor-grown plants and fruits, such as avocados, for the prevention, control, and suppression of common plant pathogens.

Halden Shane: TOMI played a key role in advancing this decision at the NSF meeting in June. The industry is shifting away from listing legacy known methods and brands, such as paraformaldehyde, and moving towards strict performance-based criteria focused on efficacy, validation, and material compatibility, areas where SteraMist iHP technology excels. We continue to strengthen our intellectual property portfolio, submitting four new utility patent applications in Q2, giving us additional worldwide protection for our technology. This month, the EPA has granted a new unconditional registration for AgriMist, TOMI's fourth EPA label. This expanded label significantly broadens our approved use sites to include a wide range of food safety applications. The registration authorizes direct application of iHP to indoor-grown plants and fruits, such as avocados, for the prevention, control, and suppression of common plant pathogens.

Speaker #3: Areas where SteraMist IHP technology excels. We continue to strengthen our intellectual property portfolio, submitting four new utility patent applications in the second quarter, giving us additional worldwide protection for our technology.

Speaker #3: This month, the EPA has granted a new unconditional registration for Agrimist—TOMI's fourth EPA label. This expanded label significantly broadens our approved use sites to include a wide range of food safety applications.

Speaker #3: The registration authorizes direct application of iHP to indoor-grown plants and fruits, such as avocados, for the prevention, control, and suppression of common plant pathogens.

Speaker #3: The label also permits applications up to and including the day of harvest, a key advantage consistently identified by cultivators. I will now turn the call over to our Interim Chief Financial Officer, Miro, for a review of TOMI's SteraMist Q2 financial results.

Halden S. Shane: The label also permits applications up to and including the day of harvest, a key advantage consistently identified by cultivators. I will now turn the call over to our Interim Chief Financial Officer, Niro, for a view of TOMI's SteraMist Q2 financial results.

Halden Shane: The label also permits applications up to and including the day of harvest, a key advantage consistently identified by cultivators. I will now turn the call over to our Interim Chief Financial Officer, Niro, for a view of TOMI's SteraMist Q2 financial results.

Speaker #2: Thank you, Dr. Shane. Our complete financial statements are included in our Form 10-Q, filed with the SEC, and detailed in today's press release. I will now walk through our key financial and operational metrics for the three months ended June 30, 2026, comparing our results to the prior year period.

Niro Srirathan: Thank you, Dr. Shane. Our complete financial statements are included in our Form 10-Q filed with the SEC and detailed in today's press release. I will now walk through our key financial and operational metrics for the three months ended 30 June 2026, comparing our results to the prior year period. Revenue for Q2 2026 was $2.25 million, representing a 118% increase compared to $1.03 million in Q2 2025, and a 36% sequential increase over Q1 2026 revenue of $1.65 million. Revenue and commercial performance. Our top-line acceleration was driven by growth across both our product and service divisions. Product revenue reached $1.86 million for the quarter, a 42% sequential increase over Q1 2026, and a 185% increase of approximately $1.2 million compared to Q2 2025.

Speaker #2: Revenue for the second quarter of 2026 was $2.25 million, representing a 118% increase compared to $1.03 million in Q2 2025, and a 36% sequential increase over Q1 2026 revenue of $1.65 million.

Speaker #2: Revenue and commercial performance. Our top-line acceleration was driven by growth across both our product and service divisions. Product revenue reached $1.86 million for the quarter, a 42% sequential increase over Q1 2026, and a 185% increase, or approximately $1.2 million, compared to Q2 2025.

Speaker #2: This growth was fueled by strong demand for capital equipment, custom engineered systems, or CES, and expanding adoption of our SteraMist applicators. Service revenue also saw gains across both comparative periods, reaching $389,000, up 13% sequentially from $344,000 in Q1 2026, and up 3% year over year compared to $378,000 in Q2 2025.

Niro Srirathan: This growth was fueled by strong demand for capital equipment, custom engineered systems or CES, and expanding adoption of our SteraMist applicators. Service revenue also saw gains across both comparative periods, reaching $389,000, up 13% sequentially from $344,000 in Q1 2026, and up 3% year over year compared to $378,000 in Q2 2025. Geographically, US revenue expanded 132% year over year to $1.91 million, while international revenue grew 62% to $339,000, bolstered by new customers onboarding in the UK. Gross profit for Q2 2026 more than doubled to $1.39 million, up 105% compared to $677,000 in Q2 2025. Gross margin was strong at 61.7%, representing an increase from 50.3% in Q1 2026, while remaining healthy compared to 65.7% in Q2 2025. The sequential expansion was driven by higher revenue volume and an optimal mix of equipment deployments alongside high margin BIT Solution consumables.

Speaker #2: Geographically, U.S. revenue expanded 132% year over year to $1.91 million, while international revenue grew 62% to $339,000, bolstered by new customers onboarding in the U.K.

Speaker #2: Gross profit for Q2 2026 more than doubled to $1.39 million, up 105% compared to $677,000 in Q2 2025. Gross margin was strong at 61.7%, representing an increase from 50.3% in Q1 2026, while remaining healthy compared to 65.7% in Q2 2025.

Speaker #2: The sequential expansion was driven by higher revenue volume and an optimal mix of equipment deployments, alongside high-margin bid solution consumables. Applicator sales reached $355,000 for the quarter, up from $13,000 in Q2 2025, validating the momentum of our high-margin recurring Razor and Blade model.

Niro Srirathan: Applicator sales reached $355,000 for the quarter, up from $13,000 in Q2 2025, validating the momentum of our high margin recurring razor and blade model. Total operating expenses for Q2 2026 were $1.63 million, a reduction of approximately $180,000 or 10% compared to Q2 2025. This reduction reflects our continued overhead discipline across general and administrative costs, offset slightly by transaction related professional and consulting fees associated with our strategic growth initiatives, including our reverse stock split, Schedule 14C filings and the pending merger. Our loss from operations for Q2 2026 improved by 78% to approximately $244,000, compared to an operating loss of approximately $1.13 million in Q2 2025. This approximate $889,000 year over year reduction in operating loss demonstrates meaningful operating leverage and puts us within clear striking distance of operating break even.

Speaker #2: Operating expenses and operating loss. Total operating expenses for Q2 2026 were $1.63 million, a reduction of approximately $180,000, or 10%, compared to Q2 2025.

Speaker #2: This reduction reflects our continued overhead discipline across general and administrative costs, offset slightly by transaction-related professional and consulting fees associated with our strategic growth initiatives.

Speaker #2: Including our reverse stock split, Schedule 14C filings, and the pending merger. Our loss from operations for Q2 2026 improved by 78%, to approximately $244,000, compared to an operating loss of approximately $1.13 million in Q2 2025.

Speaker #2: This approximate $889,000 year-over-year reduction in operating loss demonstrates meaningful operating leverage and puts us within clear striking distance of operating break-even. G&A savings were further supported by improved collection activity and a credit loss reserve benefit of approximately $144,000 during the quarter.

Niro Srirathan: G&A savings were further supported by improved collection activity and a credit loss reserve benefit of approximately $144,000 during the quarter. Net loss for the second quarter of 2026 improved by 69% to approximately $382,000, or $0.05 per basic and diluted share, compared to a net loss of approximately $1.24 million or $0.19 per share in Q2 2025. On a six-month basis, net loss improved 20% to approximately $1.19 million, compared to $1.49 million in the prior year period. All share and per share figures retroactively reflected our 1-for-3 reverse stock split, affected on 20 July 2026. It is worth noting that Q2 2026 operating expenses included approximately $300,000 in elevated advisory, legal, and diligence costs tied to the signing of the Carbonion Corp agreement and planned merger.

Speaker #2: Net loss and transaction impact. Net loss for the second quarter of 2026 improved by 69%, to approximately $382,000, or 5 cents per basic and diluted share.

Speaker #2: Compared to a net loss of approximately $1.24 million, or $0.19 per share, in Q2 2025. On a six-month basis, net loss improved 20% to approximately $1.19 million, compared to $1.49 million in the prior year period. All share and per-share figures are retroactively reflected for our 1-for-43 reverse stock split, effected on July 20, 2026.

Speaker #2: It is worth noting that Q2 2026 operating expenses included approximately $300,000 in elevated advisory, legal, and diligence costs tied to the signing of the Carbonium Core Agreement and the planned merger.

Speaker #2: Excluding these transaction-related expenses, our core operating performance underscores the solid trajectory of our underlying SteraMist business. Cash flow, balance sheet, and capital excess. We ended Q2 2026 with $322,000 in cash and cash equivalents, up from $88,000 at December 31, 2025.

Niro Srirathan: Excluding these transaction related expenses, our core operating performance underscores the solid trajectory of our underlying SteraMist business. We ended Q2 2026 with $322,000 in cash and cash equivalents, up from $88,000 at 31 December 2025. Working capital expanded to $1.82 million, compared to $1.02 million at year-end 2025. While stockholders' equity increased significantly to $1.43 million, up from $589,000. As of 30 June 2026, we maintained approximately $18.1 million in remaining contractual capacity under our ELOC facility. Following majority shareholder approval in June to waive the exchange cap on the relevant Nasdaq rules, the ELOC remains an available tool to support ongoing working capital requirements.

Speaker #2: Working capital expanded to $1.82 million compared to $1.02 million at year-end 2025, while stockholders' equity increased significantly to $1.43 million, up from $589,000. As of June 30, 2026, we maintained approximately $18.1 million in remaining contractual capacity under our ELOC facility.

Speaker #2: Following majority shareholder approval in June to waive the exchange cap under relevant Nasdaq rules, the ELOC remains an available tool to support ongoing working capital requirements.

Speaker #2: Additionally, post-quarter, on August 12, 2026, we entered into an omnibus amendment with holders of our 2023 convertible notes, lowering the fixed conversion price from $3.75 to $1.50 per share, subject to adjustment in accordance with the terms of the notes and as adjusted for the reverse stock split.

Niro Srirathan: Additionally, post-quarter on 12 August 2026, we entered into an omnibus amendment with holders of our 2023 convertible notes, lowering the fixed conversion price from $3.75 to $1.50 per share, subject to adjustment in accordance with the terms of the notes and as adjusted for the reverse stock split. As of today, we believe we have met the Nasdaq stakeholders' equity requirement. Backlog and forward guidance. Looking ahead, our financial visibility remains robust. Our total sales order backlog stood at $2.2 million at quarter end and has expanded to $2.6 million post-quarter. Booked orders and expected completions before year end exceed $6.2 million, supporting an active integrated project pipeline of $4.3 million across 13 projects and a broader commercial sales pipeline of approximately $35 million. Based on this visibility and our H2 trajectory, we comfortably reaffirm our full year 2026 revenue guidance of at least $12 million.

Speaker #2: As of today, we believe we have met the Nasdaq stakeholders' equity requirement. Backlog and forward guidance—looking ahead, our financial visibility remains robust. Our total sales order backlog stood at $2.2 million at quarter end, and has expanded to $2.6 million post-quarter.

Speaker #2: Booked orders and expected completions before year-end exceed $6.2 million, supporting an active integrated project pipeline of $4.3 million across 13 projects and a broader commercial sales pipeline of over $1 million.

Speaker #2: Based on this visibility and our second-half trajectory, we comfortably reaffirm our full-year 2026 revenue guidance of at least $12 million. Furthermore, our agreement and plan of merger executed on June 29, 2026, with Carbonium Core includes a $10 million minimum concurrent financing condition prior to closing, which we expect will transform the combined company's balance sheet and growth trajectory.

Niro Srirathan: Furthermore, our agreement and plan of merger executed on 29 June 2026, with Carbonium Corp includes a $10 million minimum co-current financing condition prior to closing, which we expect will transform the combined company's balance sheet and growth trajectory. Investors are encouraged to review our quarterly report on Form 10-Q in full, including the risk factors and notes to the condensed consolidated financial statements. I will now turn the call over to our Chief Operating Officer, EJ Shane, for an update on what to expect in the upcoming months and rest of the year.

Speaker #2: Investors are encouraged to review our quarterly report on Form 10-Q in full, including the risk factors and notes to the condensed consolidated financial statements.

Speaker #2: I will now turn the call over to our Chief Operating Officer, EJ Shane, for an update on what to expect in the upcoming months and the rest of the year.

Speaker #1: Thank you, Nero, and good afternoon, everyone. The sales pipeline remains robust, with total identified interest currently standing at approximately $35 million. Of this amount, $8.6 million is in its advanced stages and is expected to close in 2026, assuming there are no material shifts in customer budgets.

Elissa J. Shane: Thank you, Niro, and good afternoon, everyone. TOMI's sales pipeline remains robust with a total identified interest currently standing at approximately $35 million. Of this amount, $8.6 million is in its advanced stages and are expected to close in 2026, assuming there is no material shift in customer budgets. Several high-quality opportunities within this pipeline show the strength of our competitive positioning. A large-scale custom engineered system, or CES project, that is currently out for bid is valued at approximately $1 million. Originally anticipated to reach a decision in June, the timeline has now shifted to September. This opportunity involves an existing customer, one that prioritizes innovation and quality over lower cost alternatives, and we believe the opportunity is well-positioned for a favorable outcome. This remains the only project included in our previously communicated integration projections.

EJ Shane: Thank you, Niro, and good afternoon, everyone. TOMI's sales pipeline remains robust with a total identified interest currently standing at approximately $35 million. Of this amount, $8.6 million is in its advanced stages and are expected to close in 2026, assuming there is no material shift in customer budgets. Several high-quality opportunities within this pipeline show the strength of our competitive positioning. A large-scale custom engineered system, or CES project, that is currently out for bid is valued at approximately $1 million. Originally anticipated to reach a decision in June, the timeline has now shifted to September. This opportunity involves an existing customer, one that prioritizes innovation and quality over lower cost alternatives, and we believe the opportunity is well-positioned for a favorable outcome. This remains the only project included in our previously communicated integration projections.

Speaker #1: Several high-quality opportunities within this pipeline show the strength of our competitive positioning. A large-scale custom-engineered system (or CES) project that is currently out for bid is valued at approximately $11 million.

Speaker #1: Originally anticipated to reach a decision in June, the timeline has now shifted to September. This opportunity involves an existing customer—one that prioritized innovation and quality over lower-cost alternatives—and we believe the opportunity is well positioned for a favorable outcome.

Speaker #1: This remains the only project included in our previously communicated integration projections. New additions to the pipeline include another $1 million project that was initiated in the second quarter.

Elissa J. Shane: New additions to the pipeline include another $1 million project that was initiated in Q2. This is the one Doc Shane mentioned earlier involving the installation of four applicators per proprietary machine line at a major multinational healthcare manufacturer. Additionally, we have one of our Canadian partners who has secured access to a bid for a potential order of eight Hybrid systems. The Hybrid system has proven to be a highly successful product development initiative. An early semi-Hybrid configuration delivered to a customer in 2020, prior to the full commercialization of our latest hardware and software platform, continues to generate strong reoccurring demand. That customer routinely purchases two full pallets of the solution twice per year and is now planning a purchase of a second system and upgrade their previously purchased Hybrid to the latest configuration.

EJ Shane: New additions to the pipeline include another $1 million project that was initiated in Q2. This is the one Doc Shane mentioned earlier involving the installation of four applicators per proprietary machine line at a major multinational healthcare manufacturer. Additionally, we have one of our Canadian partners who has secured access to a bid for a potential order of eight Hybrid systems. The Hybrid system has proven to be a highly successful product development initiative. An early semi-Hybrid configuration delivered to a customer in 2020, prior to the full commercialization of our latest hardware and software platform, continues to generate strong reoccurring demand. That customer routinely purchases two full pallets of the solution twice per year and is now planning a purchase of a second system and upgrade their previously purchased Hybrid to the latest configuration.

Speaker #1: This is the one Dr. Shane mentioned earlier, involving the installation of four applicators per proprietary machine line at a major multinational healthcare manufacturer. Additionally, we have one of our Canadian partners who has secured access to a bid for a potential order of eight hybrid systems.

Speaker #1: The hybrid system has proven to be a highly successful product development initiative. An early semi-hybrid configuration, delivered to a customer in 2020 prior to the full commercialization of our latest hardware and software platform, continues to generate strong recurring demand.

Speaker #1: That customer routinely purchases two full pallets of BIT Solution twice per year, and is now planning a purchase of a second system and to upgrade their previously purchased hybrid to the latest configuration.

Speaker #1: The core advantage of the hybrid platform lies in its flexibility—not only in the underlying science and technology, but also in the expanded product ordering options we have developed over the past two years, giving our customer base greater adaptability to meet their operational needs.

Elissa J. Shane: The core advantage of the hybrid platform lies in its flexibility, not only in the underlying science and technology, but also in the expanded product ordering options we have developed over the past 2 years, giving our customer base greater adaptability to meet their operational needs. TOMI continues to expand its presence in the defense sector, having recently received approvals from defense contractors in Korea and defense agencies in Canada. While confidentiality agreements limit the disclosure of specific details, these relationships represent multi-year efforts with a significant long-term potential. We have developed a very detailed strategic plan specific to these 2 accounts, which we have been in contact with for years. TOMI has also authorized a local representative to distribute to the Defense Logistics Agency, or DLA, which manages the global defense supply chain for the US military services and ally partners.

EJ Shane: The core advantage of the hybrid platform lies in its flexibility, not only in the underlying science and technology, but also in the expanded product ordering options we have developed over the past 2 years, giving our customer base greater adaptability to meet their operational needs. TOMI continues to expand its presence in the defense sector, having recently received approvals from defense contractors in Korea and defense agencies in Canada. While confidentiality agreements limit the disclosure of specific details, these relationships represent multi-year efforts with a significant long-term potential. We have developed a very detailed strategic plan specific to these 2 accounts, which we have been in contact with for years. TOMI has also authorized a local representative to distribute to the Defense Logistics Agency, or DLA, which manages the global defense supply chain for the US military services and ally partners.

Speaker #1: TOMI continues to expand its presence in the defense sector, having recently received approvals from defense contractors in Korea and defense agencies in Canada. While confidentiality agreements limit the disclosure of specific details, these relationships represent multi-year efforts with significant long-term potential.

Speaker #1: We have developed a very detailed strategic plan specific to these two accounts, which we have been in contact with for years. TOMI has also authorized a local representative to distribute to the Defense Logistics Agency, or DLA, which manages the global defense supply chain for the U.S.

Speaker #1: military services and allied partners. This partnership, established in the second quarter, is expected to streamline and accelerate government procurement of STARMS IHP technology. In one of our largest markets, a life site of a long-standing global pharmaceutical partner ordered approximately $500,000 in STARMS systems, with delivery scheduled for later this year.

Elissa J. Shane: This partnership, established in Q2, is expected to streamline and accelerate government procurement of SteraMist iHP technology. In one of our largest markets, life sciences, we have received approval for one site of a long-standing global pharmaceutical partner for approximately $500,000 in SteraMist systems, with delivery scheduled for later this year. TOMI's iHP Corporate Service is also experiencing an increase in new opportunities. While year-over-year results to date are slightly lower due to a production change at a large customer that no longer requires decontamination services, TOMI has partially offset this impact and is actively expanding service opportunities. We are now developing pathways to deliver direct corporate services internationally to end users, building on our strong domestic relationships. We look forward to sharing additional updates on this initiative in the coming periods.

EJ Shane: This partnership, established in Q2, is expected to streamline and accelerate government procurement of SteraMist iHP technology. In one of our largest markets, life sciences, we have received approval for one site of a long-standing global pharmaceutical partner for approximately $500,000 in SteraMist systems, with delivery scheduled for later this year. TOMI's iHP Corporate Service is also experiencing an increase in new opportunities. While year-over-year results to date are slightly lower due to a production change at a large customer that no longer requires decontamination services, TOMI has partially offset this impact and is actively expanding service opportunities. We are now developing pathways to deliver direct corporate services internationally to end users, building on our strong domestic relationships. We look forward to sharing additional updates on this initiative in the coming periods.

Speaker #1: TOMI’s IHP corporate service is also experiencing an increase in new opportunities. While year-over-year results to date are slightly lower due to a production change at a large customer that no longer requires decontamination services, TOMI has partially offset this impact and is actively expanding service opportunities.

Speaker #1: We are now developing pathways to deliver direct corporate services internationally to end users, building on our strong domestic relationships. We look forward to sharing additional updates on this initiative in the coming periods.

Speaker #1: TOMI's recent expansion of SteraMist registrations across the EU and United Kingdom has significantly strengthened our established European network. In Poland, through our partnership with Medline, we expect to be able to sell SteraMist under the DeconLine brand once mutual recognition is approved.

Elissa J. Shane: TOMI's recent expansion of SteraMist registrations across the EU and United Kingdom has significantly strengthened our established European network. In Poland, through our partnership with Medline, we expect to be able to sell SteraMist under the DeconLine brand once mutual recognition is approved. Additionally, TOMI has deepened its commercial pipelines through dedicated partners in Germany, the United Kingdom, and the Netherlands, many of whom bring well-established commercial, life sciences, healthcare, and military networks. In the Americas, TOMI has added a new strategic partner to capture growth in the life sciences and industrial sectors. Located in Puerto Rico, Integrated Services for Productivity and Validation, or ISPV, is focused on driving adoption within the region's strong life sciences and food manufacturing industries. In Argentina and surrounding markets, TOMI is collaborating with new partners to pursue shared opportunities with major global accounts, including Pfizer, Fresenius Kabi, and Merck.

EJ Shane: TOMI's recent expansion of SteraMist registrations across the EU and United Kingdom has significantly strengthened our established European network. In Poland, through our partnership with Medline, we expect to be able to sell SteraMist under the DeconLine brand once mutual recognition is approved. Additionally, TOMI has deepened its commercial pipelines through dedicated partners in Germany, the United Kingdom, and the Netherlands, many of whom bring well-established commercial, life sciences, healthcare, and military networks. In the Americas, TOMI has added a new strategic partner to capture growth in the life sciences and industrial sectors. Located in Puerto Rico, Integrated Services for Productivity and Validation, or ISPV, is focused on driving adoption within the region's strong life sciences and food manufacturing industries. In Argentina and surrounding markets, TOMI is collaborating with new partners to pursue shared opportunities with major global accounts, including Pfizer, Fresenius Kabi, and Merck.

Speaker #1: Additionally, TOMI has deepened its commercial pipelines through dedicated partners in Germany, the United Kingdom, and the Netherlands, many of whom bring well-established commercial, life sciences, healthcare, and military networks.

Speaker #1: In the Americas, TOMI has added a new strategic partner to capture growth in the life sciences and industrial sectors. Located in Puerto Rico, Integrated Services for Productivity and Validation, or ISPV, is focused on driving adoption within the region's strong life sciences and food manufacturing industries.

Speaker #1: In Argentina and surrounding markets, TOMI is collaborating with a new partner to pursue shared opportunities with major global accounts, including Pfizer, Fresenius Kabi, and Merck.

Speaker #1: This expansion complements our long-standing partnership with BacteriFree in Chile, which is now extending its reach from life sciences into the food safety sector. I would like to reiterate the strong signal that the STARMS applicator purchases send.

Elissa J. Shane: This expansion complements our long-standing partnership with Bacteria Free in Chile, which is now extending its reach from life sciences into the food safety sector. I would like to reiterate the strong signal that the SteraMist applicator purchases send. Year to date, applicator sales alone total nearly $400,000, representing approximately a 1,100% increase year over year, a trend we never needed to capture before. This growth clearly demonstrates that customers are expanding their deployment of our patented cold plasma technology. The applicator is a critical component that enables iHP cold plasma technology to be utilized, whether paired with a mobile delivery system or installed in a permanent or semi-permanent configuration. We only began emphasizing this strategy less than 2 years ago, and it builds on our consumable-driven model. In many ways, the applicator functions as a second razor in a razor and blade framework.

EJ Shane: This expansion complements our long-standing partnership with Bacteria Free in Chile, which is now extending its reach from life sciences into the food safety sector. I would like to reiterate the strong signal that the SteraMist applicator purchases send. Year to date, applicator sales alone total nearly $400,000, representing approximately a 1,100% increase year over year, a trend we never needed to capture before. This growth clearly demonstrates that customers are expanding their deployment of our patented cold plasma technology. The applicator is a critical component that enables iHP cold plasma technology to be utilized, whether paired with a mobile delivery system or installed in a permanent or semi-permanent configuration. We only began emphasizing this strategy less than 2 years ago, and it builds on our consumable-driven model. In many ways, the applicator functions as a second razor in a razor and blade framework.

Speaker #1: Year to date, applicator sales alone total nearly $400,000, representing approximately a 1,100% increase year-over-year—a trend we never needed to capture before. This growth clearly demonstrates that customers are expanding their deployment of our patented cold plasma technology.

Speaker #1: The applicator is a critical component that enables IHP cold plasma technology to be utilized, whether paired with a mobile delivery system or installed in a permanent or semi-permanent configuration.

Speaker #1: We only began emphasizing this strategy less than two years ago, and it builds on our consumable-driven model. In many ways, the applicator functions as a second razor, and a razor-and-blade framework.

Speaker #1: It carries a longer replacement cycle than pure consumables, such as our BidSolution, yet it has a significantly shorter sales cycle than full capital equipment when integrated accordingly.

Elissa J. Shane: It carries a longer replacement cycle than pure consumables, such as our BIT solution, yet it has a significantly shorter sales cycle than full capital equipment when integrated accordingly. This allows TOMI to capture meaningful revenue and margin today while simultaneously locking in long-term reoccurring BIT solution demand. We continue to make progress on the regulatory front through additional approvals we still require to fully unlock the opportunities tied to these requirements. Our food contact notification, FCN efforts with the FDA, both broadly and specifically for baby formula production, remain ongoing. We secured a significant win in June with NSF Standards Department for Biological Safety Cabinets and are targeting a second milestone in October. On the FDA 510(k) medical device pathway, we advanced, as Dr. Shane referenced, and are now focused on compiling the necessary studies. Meanwhile, EU registrations continue to come in.

EJ Shane: It carries a longer replacement cycle than pure consumables, such as our BIT solution, yet it has a significantly shorter sales cycle than full capital equipment when integrated accordingly. This allows TOMI to capture meaningful revenue and margin today while simultaneously locking in long-term reoccurring BIT solution demand. We continue to make progress on the regulatory front through additional approvals we still require to fully unlock the opportunities tied to these requirements. Our food contact notification, FCN efforts with the FDA, both broadly and specifically for baby formula production, remain ongoing. We secured a significant win in June with NSF Standards Department for Biological Safety Cabinets and are targeting a second milestone in October. On the FDA 510(k) medical device pathway, we advanced, as Dr. Shane referenced, and are now focused on compiling the necessary studies. Meanwhile, EU registrations continue to come in.

Speaker #1: This allows TOMI to capture meaningful revenue and margin today, while simultaneously locking in long-term recurring BidSolution demand. We continue to make progress on the regulatory front through additional approvals we still require to fully unlock the opportunities tied to these requirements.

Speaker #1: Our food contact notification (FCN) efforts with the FDA, both broadly and specifically for baby formula production, remain ongoing. We secured a significant win in June with the NSF standards department for biological safety cabinets, and we’re targeting a second milestone in October.

Speaker #1: On the FDA 510(k) medical device pathway, we advanced as Dr. Shane referenced, and are now focused on compiling the necessary studies. Meanwhile, EU registrations continue to come in.

Speaker #1: Collectively, these initiatives hold substantial potential given current market demands. The food safety sector remains promising, and we expect the approval of the DASH 4 EPA label to accelerate sales in this division. Further progress will depend on ongoing regulatory developments.

Elissa J. Shane: Collectively, these initiatives hold substantial potential given current market demands. The food safety sector remains promising, and we expect the approval of the 90150-4 EPA label to accelerate sales in this division. Through further progress, we depend on ongoing regulatory developments. Nestlé's planned expansion, for example, is contingent on securing additional international registrations beyond the EU and on updating EU registration requirements to include an alternate class. These efforts remain actively underway. However, Nestlé has now also added specific South American registrations to their original international request, and our new partners referenced earlier are assisting with them. In summary, we see our strategies are working. We are actively supporting the resources required to advance our integration pipeline across all products, not solely the CES, along with our services offerings and growing momentum we are seeing from partners both domestically and internationally.

EJ Shane: Collectively, these initiatives hold substantial potential given current market demands. The food safety sector remains promising, and we expect the approval of the 90150-4 EPA label to accelerate sales in this division. Through further progress, we depend on ongoing regulatory developments. Nestlé's planned expansion, for example, is contingent on securing additional international registrations beyond the EU and on updating EU registration requirements to include an alternate class. These efforts remain actively underway. However, Nestlé has now also added specific South American registrations to their original international request, and our new partners referenced earlier are assisting with them. In summary, we see our strategies are working. We are actively supporting the resources required to advance our integration pipeline across all products, not solely the CES, along with our services offerings and growing momentum we are seeing from partners both domestically and internationally.

Speaker #1: Nestlé's planned expansion, for example, is contingent on securing additional international registrations beyond the EU and on updating EU registration requirements to include an alternate class.

Speaker #1: These efforts remain actively underway. However, Nestlé has now also added specific South American registrations to their original international request, and our new partners referenced earlier are assisting with them.

Speaker #1: In summary, we see our strategies are working. We are actively supporting the resources required to advance our integration pipeline across all products, not solely the CES, along with our services offerings and the growing momentum we are seeing from partners both domestically and internationally.

Speaker #1: This is in addition to the regulatory advancements already underway. And while I shared only a high-level view earlier, we are currently conducting numerous additional use-site scenario tests that we expect will further unlock value.

Elissa J. Shane: This is in addition to the regulatory advancements already underway. While I shared only a high-level view earlier, we are currently conducting numerous additional use site scenario tests that we expect will further unlock value. I thank you all for your time today. We hope this provides useful insight into the continued direction and opportunity ahead for the SteraMist iHP brand. I will now return the call back to our CEO, Dr. Halden Shane.

EJ Shane: This is in addition to the regulatory advancements already underway. While I shared only a high-level view earlier, we are currently conducting numerous additional use site scenario tests that we expect will further unlock value. I thank you all for your time today. We hope this provides useful insight into the continued direction and opportunity ahead for the SteraMist iHP brand. I will now return the call back to our CEO, Dr. Halden Shane.

Speaker #1: I thank you all for your time today. We hope this provides useful insight into the continued direction and opportunity ahead for the STARMS IHP brand.

Speaker #1: I will now return the call back to our CEO, Dr. Halden Shane.

Speaker #2: Thank you, EJ and Nero. Before we open the call to questions, I want to leave you with a bigger picture. STARMS isn't a story about potential anymore.

Halden S. Shane: Thank you, EJ and Niro. Before we open the call to questions, I want to leave you with a bigger picture. SteraMist isn't a story about potential anymore. It's a story about proof. Three consecutive quarters of growth, a backlog that keeps expanding even as we fulfill it. Our regulatory footprint already spans a wide range of countries, now across Europe, and we're continuing to add to it. An expected pipeline of $35 million and growing faster, and a technology platform that is now trusted in some of the most demanding, highest consequence environments on the planet, from operating rooms and clean rooms to national labs and next-generation energy infrastructure. Every division, every geography, every product line I've walked you through today is moving in the same direction forward. We are investing in people, partners, and product needed to meet the demand.

Halden Shane: Thank you, EJ and Niro. Before we open the call to questions, I want to leave you with a bigger picture. SteraMist isn't a story about potential anymore. It's a story about proof. Three consecutive quarters of growth, a backlog that keeps expanding even as we fulfill it. Our regulatory footprint already spans a wide range of countries, now across Europe, and we're continuing to add to it. An expected pipeline of $35 million and growing faster, and a technology platform that is now trusted in some of the most demanding, highest consequence environments on the planet, from operating rooms and clean rooms to national labs and next-generation energy infrastructure. Every division, every geography, every product line I've walked you through today is moving in the same direction forward. We are investing in people, partners, and product needed to meet the demand.

Speaker #2: It's a story about proof: three consecutive quarters of growth, a backlog that keeps expanding even as we fulfill it. Our regulatory footprint already spans a wide range of countries, now across Europe, and we're continuing to add to it.

Speaker #2: And an expected pipeline of $35 million and growing faster. And a technology platform that is now trusted in some of the most demanding, highest-consequence environments on the planet.

Speaker #2: From operating rooms and clean rooms to national labs and next-generation energy infrastructure, every division, every geography, every product line I’ve walked you through today is moving in the same direction: forward.

Speaker #2: We are investing in the people, partners, and products needed to meet the demand. I am also very happy to announce the improved financial performance this quarter.

Halden S. Shane: I am also very happy to announce the improved financial performance this quarter and the recent agreement with certain noteholders to convert approximately $2.3 million of their outstanding convertible notes into shares. We believe we will be able to retain compliance with stockholder equity requirements under Nasdaq's continuing listing rules, subject to final review and approval by the Nasdaq hearing panel. In reference to Carbonion Corp potential merger on 7 August, President Donald Trump convened a historic roundtable at the State Department with over 200 mining executives and universal officials to announce $3 billion in federal investment aimed at securing US critical mineral supply chains and reducing reliance on China. Trump declared the initiative a step towards reclaiming America's stature as a mineral superpower, quote-unquote, emphasizing that these resources are essential for national defense, advanced weaponry, and economic independence. Carbonium Corp will produce nuclear graphite and lithium.

Halden Shane: I am also very happy to announce the improved financial performance this quarter and the recent agreement with certain noteholders to convert approximately $2.3 million of their outstanding convertible notes into shares. We believe we will be able to retain compliance with stockholder equity requirements under Nasdaq's continuing listing rules, subject to final review and approval by the Nasdaq hearing panel. In reference to Carbonion Corp potential merger on 7 August, President Donald Trump convened a historic roundtable at the State Department with over 200 mining executives and universal officials to announce $3 billion in federal investment aimed at securing US critical mineral supply chains and reducing reliance on China. Trump declared the initiative a step towards reclaiming America's stature as a mineral superpower, quote-unquote, emphasizing that these resources are essential for national defense, advanced weaponry, and economic independence. Carbonium Corp will produce nuclear graphite and lithium.

Speaker #2: And with the recent agreement with certain noteholders to convert approximately $2.3 million of their outstanding convertible notes into shares, we believe we will be able to regain compliance with stockholder equity requirements under Nasdaq's continuing listing rules, subject to final review and approval by the Nasdaq hearing panel.

Speaker #2: In reference to Carbonian Corp's potential merger on August 7th, President Donald Trump convened a historic roundtable at the State Department with over 200 mining executives and universal officials to announce $3 billion in federal investment aimed at securing U.S. critical mineral supply chains and reducing reliance on China.

Speaker #2: Trump declared the initiative a step toward reclaiming America's status as a mineral superpower, emphasizing that these resources are essential for national defense, advanced weaponry, and economic independence. Carbonian Corp will produce nuclear graphite and lithium.

Speaker #2: Based on President Trump's coalition founding principles, and recent U.S. investment announcements under the Trump administration, the scope explicitly includes battery and energy minerals: lithium, cobalt, nickel, graphite, magnesium, and silicon. The combined value, as estimated by independent valuation companies between Carbonian Corp and TOMI, is $180 million.

Halden S. Shane: Based on President Trump's coalition founding principles and recent US investment announcements under the Trump administration, the scope explicitly includes battery and energy minerals, lithium, cobalt, nickel, graphite, magnesium, and silicone. The combined value packed by independent valuations companies between Carbonium Corp and TOMI is $180 million. Carbonium Corp has a valuation of $120 million, and TOMI has a valuation of $60 million, thus the combined value of $180 million. As far as SteraMist, we will be building a better, bigger company, hiring more personnel, expanding our product line to deploy for preventive disinfection using robotics for autonomous vehicles, along with drones for biosecurity. My take on the current worldwide view on preventive preparedness for the future is everyone has a fear of infection. As AI can simply produce a blueprint for biological weapons, the fear is worth being prepared.

Halden Shane: Based on President Trump's coalition founding principles and recent US investment announcements under the Trump administration, the scope explicitly includes battery and energy minerals, lithium, cobalt, nickel, graphite, magnesium, and silicone. The combined value packed by independent valuations companies between Carbonium Corp and TOMI is $180 million. Carbonium Corp has a valuation of $120 million, and TOMI has a valuation of $60 million, thus the combined value of $180 million. As far as SteraMist, we will be building a better, bigger company, hiring more personnel, expanding our product line to deploy for preventive disinfection using robotics for autonomous vehicles, along with drones for biosecurity. My take on the current worldwide view on preventive preparedness for the future is everyone has a fear of infection. As AI can simply produce a blueprint for biological weapons, the fear is worth being prepared.

Speaker #2: Carbonian Corp has a valuation of $120 million, and TOMI has a valuation of $60 million, for a combined value of $180 million. As far as STARMS, we'll be building a better, bigger company—hiring more personnel and expanding our product line to be deployed for preventive disinfection, using robotics for autonomous vehicles, along with drones for biosecurity.

Speaker #2: My take on the current worldwide view on preventive preparedness for the future is that everyone has a fear of infection. As AI can now simply produce a blueprint for biological weapons, the fear is worth being prepared.

Speaker #2: Being prepared for the next release of a biological weapon is going to be key to surviving in the future in the world that we all live in.

Halden S. Shane: To be prepared for the next release of a biological weapon is going to be key to surviving in the future in the world that we all live in. SteraMist is your go-to biodefense weapon for survival. I want to take a moment to thank our investors, both old and new, for their continued support of TOMI. All of you have been amazing. Last but not least, our amazing small team of 20 in Frederick and our partners around the world. We hope this team will grow to 200 in the next three years. However, the 20 has kicked some ass to get us in the direction we are going in. Operator, please open the call.

Halden Shane: To be prepared for the next release of a biological weapon is going to be key to surviving in the future in the world that we all live in. SteraMist is your go-to biodefense weapon for survival. I want to take a moment to thank our investors, both old and new, for their continued support of TOMI. All of you have been amazing. Last but not least, our amazing small team of 20 in Frederick and our partners around the world. We hope this team will grow to 200 in the next three years. However, the 20 has kicked some ass to get us in the direction we are going in. Operator, please open the call.

Speaker #2: STARMS is your go-to biodefense weapon for survival. I want to take a moment to thank our investors, both old and new, for their continued support of TOMZ.

Speaker #2: All of you have been amazing. Last but not least, our amazing small team of 20, and Frederick, and our partners around the world. We hope this team will grow to 200 in the next three years.

Speaker #2: However, the 2020 has kicked some ass to get us in the direction we're going in.

Speaker #3: Operator.

Speaker #2: Please open the call.

Speaker #3: Certainly. At this time, we will be conducting a question-and-answer session. If you have any questions or comments, please press star 1 on your phone at this time.

Operator: Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you are listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone. Please hold while we poll for questions. Thank you. Your first question is coming from Amit Dayal from H.C. Wainwright. Your line is live.

Speaker #3: We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. And once again, if you have any questions or comments, please press star one on your phone.

Speaker #3: Please hold while we poll for questions. Thank you. Your first question is coming from Amit Dial from HC Wainwright. Your line is live.

Speaker #4: Thank you. Good afternoon, everyone, and congrats on all the progress on many different fronts. Question around the AGRIMIST offering: Is any of this part of the pipeline, or will this add to the pipeline when you start commercializing this product?

Amit Dayal: Thank you. Greetings everyone, and congrats on all the progress on many different fronts. Question around the AgriMist offering. Is any of this part of the pipeline, or will this add to the pipeline when you start commercializing this product?

Speaker #1: It's going to add to the pipeline. Everything discussed thus far does not include the AGRIMIST potential.

Elissa J. Shane: It is going to add to the pipeline. Everything discussed thus far does not include the AgriMist potential.

EJ Shane: It is going to add to the pipeline. Everything discussed thus far does not include the AgriMist potential.

Speaker #4: Understood. Thank you, EJ, for that. And then, with respect to the medical device clearance, what are the next milestones on that front?

Amit Dayal: Understood. Thank you, EJ, for that.

Amit Dayal: With respect to the medical device clearance, what are the next milestones on that front?

Speaker #1: So, it's all going to be related around studies with this one customer base. Now that it's delivered and installed, we have to create protocols, then establish and conduct them.

Elissa J. Shane: It's all going to be related around studies with this one customer base. Now that it's delivered and installed, we have to create protocols, establish and then conduct them, and then report them to the FDA. There's still some time ahead of us.

EJ Shane: It's all going to be related around studies with this one customer base. Now that it's delivered and installed, we have to create protocols, establish and then conduct them, and then report them to the FDA. There's still some time ahead of us.

Speaker #1: And then report them to the FT. So there's still some time ahead of us, but...

Speaker #4: Is this like a 12-month, 18-month, or less sort of timeline?

Amit Dayal: Is this like a 12-month, 18 months or less sort of timeline?

Speaker #1: Give me another quarter, and I'll have a better idea for you.

Elissa J. Shane: Give me another quarter, and I'll have a better idea for you.

EJ Shane: Give me another quarter, and I'll have a better idea for you.

Speaker #4: Okay, thank you. And then, with respect to the Carbonium deal, at what stage of diligence are we, and what are the next milestones on that front?

Amit Dayal: Okay, thank you. With respect to the Carbonium deal, I mean, at what state of diligence are we and what are the next milestones on that front?

Speaker #2: So, we really have two levels of completion that need to occur. One is for NASDAQ to go ahead and give us a clean bill of health in relationship to listing.

Halden S. Shane: We really have two levels of completion that need to occur. One is for Nasdaq to go ahead and give us a clean bill of health in relationship to listing. I believe we have been well over $1 for the last 4 weeks, and I believe we are in compliance with that. Just recently, we went ahead and created enough shareholder equity. I believe it is a little over $3.3 million at this moment, provided the notes that have converted or are in the process of converting. I think that is one aspect, and the other aspect is raising $10 million for the joint companies, and we are still in negotiations with doing that.

Halden Shane: We really have two levels of completion that need to occur. One is for Nasdaq to go ahead and give us a clean bill of health in relationship to listing. I believe we have been well over $1 for the last 4 weeks, and I believe we are in compliance with that. Just recently, we went ahead and created enough shareholder equity. I believe it is a little over $3.3 million at this moment, provided the notes that have converted or are in the process of converting. I think that is one aspect, and the other aspect is raising $10 million for the joint companies, and we are still in negotiations with doing that.

Speaker #2: I believe we've been well over a dollar for the last four weeks, and I believe we're in compliance with that. Just recently, we went ahead and created enough shareholder equity—I believe it's a little over $3.3 million at this moment—provided the notes that have converted, or are in the process of converting.

Speaker #2: So I think that's one aspect. And the other aspect is raising $10 million for the joint companies, and we're still in negotiations with doing that.

Speaker #4: And then from the diligence you've done so far, Doc, on Carbonium, are they already sort of positioned to generate revenues in the near term, or is the company still in sort of the product development phase?

Amit Dayal: From the diligence you have done so far, Doc, on Carbonium Corp, are they already sort of positioned to generate revenues in the near term, or is the company still in sort of product development phase?

Speaker #2: So, I think that they are going through their prototype, which is going to be underway shortly. The contract between Oakridge Nuclear and Carbonian Core is in its final stages.

Halden S. Shane: I think that they are going through their prototype, which is going to be underway shortly. The contract between Oak Ridge National Laboratory and Carbonium Corp is in its final stages. Also, I believe there is a contract between the Department of Energy and Carbonium Corp that is in its final stages. Once that occurs, the prototype will produce, I believe, enough graphite to create revenue. I am not sure the exact timing. I think a lot of the specifics would be terrific to have the CEO of Carbonion Corp on a call or a fireside chat with you guys, and we can go over some information.

Halden Shane: I think that they are going through their prototype, which is going to be underway shortly. The contract between Oak Ridge National Laboratory and Carbonium Corp is in its final stages. Also, I believe there is a contract between the Department of Energy and Carbonium Corp that is in its final stages. Once that occurs, the prototype will produce, I believe, enough graphite to create revenue. I am not sure the exact timing. I think a lot of the specifics would be terrific to have the CEO of Carbonion Corp on a call or a fireside chat with you guys, and we can go over some information.

Speaker #2: Also, I believe there's a contract between the Department of Energy and Carbonian Core that's in its final stages. Once that occurs, the prototype will produce, I believe, enough graphite to create revenue. I am not sure of the exact timing.

Speaker #2: I think a lot of the specifics would be terrific to have the CEO of Carbonian Core on a call or a fireside chat with you guys, and we can go over some information.

Speaker #4: Okay. Yeah, we can take that offline. That's all I have for now. I'll take no other questions on our follow-up call. Thank you.

Amit Dayal: Okay. Yeah, we can take that offline. Yeah, that is all I have for now. I will take no other questions in honor of our call. Thank you.

Speaker #2: Thanks, sir. Thanks a lot.

Halden S. Shane: Thanks, Amit Dayal.

Halden Shane: Thanks, Amit Dayal.

Speaker #3: Thank you. And once again, everyone, if you have any questions or comments, please press star then 1 on your phone. Your next question is coming from John Nelson.

Operator: Thank you. Once again, everyone, if you have any questions or comments, please press star then one on your phone. Your next question is coming from John Nelson. Your line is live.

Speaker #3: Your line is live.

Speaker #5: Hi. Congratulations on delivering a terrific quarter to you and your team, Halden.

John Nelson: Hi. Congratulations on delivering a terrific quarter, and to you and your team, Halden.

Speaker #2: Thank you so much, Sean. Thank you.

Halden S. Shane: Thank you so much, John. Thank you.

Halden Shane: Thank you so much, John. Thank you.

Speaker #5: Cheers.

John Nelson: Cheers.

John Nelson: A lot of work.

Speaker #2: A lot of work.

Speaker #5: Yeah, I'll say. I have several questions. You had just kind of wrapped up with some comments on Steramist and the biodefense sector of the government.

John Nelson: Yeah, I will say. I have several questions. You had just kind of wrapped up with some comments on SteraMist and the biodefense sector of the government. How would you envision SteraMist could be used in biodefense?

Speaker #5: How would you envision SteraMist could be used in biodefense?

Speaker #2: Well, for one, a lot of equipment, both military and non-military, is having increased demands put on it for disinfection and decontamination. So that's where the concept of the drone program would come in, where the drones are equipped with our unit.

Halden S. Shane: Well, for one, a lot of equipment, both military and non-military, is having increased demands put on it for disinfection and decontamination. So that is where the concept of the drone program would come in, where the drones are equipped with our unit, kind of similar to the backpack, and they are able to decontaminate large pieces of equipment aerially and up close.

Halden Shane: Well, for one, a lot of equipment, both military and non-military, is having increased demands put on it for disinfection and decontamination. So that is where the concept of the drone program would come in, where the drones are equipped with our unit, kind of similar to the backpack, and they are able to decontaminate large pieces of equipment aerially and up close.

Speaker #2: It's kind of similar to the backpack, and they're able to decontaminate large pieces of equipment, both aerially and up close.

Speaker #5: Okay. And then in the news—at least one area of news where I always think about how useful Steramist would be—is in the FEMA disaster areas, especially with the floods in Indiana, for example.

John Nelson: Okay. In the news, at least one area of news where I always think about how useful SteraMist would be is in the FEMA disaster area, especially with the floods in Indiana, for example, and other parts of the country. Have you been able to make any inroads with FEMA as far as supplying them with SteraMist for treatment of things like mold and other contaminations that come along with the disasters that they have had to deal with?

Speaker #5: And other parts of the country. Have you been able to make any inroads with FEMA as far as supplying them with SteraMist for treatment of things like mold and other contamination that come along with the disasters that they've had to deal with?

Halden S. Shane: I will let EJ answer that. But take Kansas.

Halden Shane: I will let EJ answer that. But take Kansas.

Speaker #2: So now that EJ answered that, but take Kansas. I know in Kansas the state has our equipment. Whether they use it or not in mold, post-disaster, I'm not positive.

Elissa J. Shane: Yeah.

EJ Shane: Yeah.

Halden S. Shane: I know in Kansas, the state has our equipment. Whether they use it or not in mold post-disaster, I am not positive. But maybe EJ has some more information about federal disasters managed by FEMA.

Halden Shane: I know in Kansas, the state has our equipment. Whether they use it or not in mold post-disaster, I am not positive. But maybe EJ has some more information about federal disasters managed by FEMA.

Speaker #2: But maybe EJ has some more information about federal disasters managed by FEMA.

Speaker #1: Yes, of course. I mean, as Doc said, Department of Health uses our equipment for emergency response in their individual counties and states. But yes, FEMA has been a long-term customer of TOMI.

Elissa J. Shane: Yes, of course. As Doc said, Department of Health own our equipment for emergency response to their individual counties and states. But yes, FEMA has been a long-term customer of TOMI. We are just not allowed to share everything that they use our equipment for, but they have quite a few of our foggers.

EJ Shane: Yes, of course. As Doc said, Department of Health own our equipment for emergency response to their individual counties and states. But yes, FEMA has been a long-term customer of TOMI. We are just not allowed to share everything that they use our equipment for, but they have quite a few of our foggers.

Speaker #1: We're just not allowed to share everything that they use our equipment for, but they have quite a few of our foggers.

Halden S. Shane: Mm-hmm. Thanks, John.

Halden Shane: Mm-hmm. Thanks, John.

Speaker #2: Thanks, Sean.

John Nelson: Okay. Thanks.

Speaker #5: Okay, thanks. Question: Have tariffs had any effect on TOMI's income statement or balance sheet? And are you paying tariffs now, or would you expect any refunds from tariffs?

Elissa J. Shane: Yeah.

EJ Shane: Yeah.

John Nelson: Question. Have tariffs had any effect on TOMI's income statement or balance sheet? Are you paying tariffs now or when would you expect any refunds from tariffs?

Halden S. Shane: Neeraj?

Halden Shane: Neeraj?

Speaker #2: Mira?

Niro Srirathan: Yeah. I am not aware of any tariffs at the moment. Yeah, something we need to look into. But yeah, I do not think we are paying any tariffs.

Speaker #6: Yeah, I'm not aware of any tariffs at the moment. Yeah, that's something we need to look into. But, yeah, I don't think we are paying any tariffs.

Speaker #5: Okay. Can you give us, our shareholders, a little more detail on the hybrid system that you've developed and what it can do?

John Nelson: Okay. Can you give us shareholders a little more details on the Hybrid system that you have developed and what it can do?

Speaker #1: Of course. So the hybrid system, John, is a mix of our mobile fogger and permanent applicators. The whole strategy behind the last year and a half or so has been allowing the customer to decide how and when they want to use the equipment.

Elissa J. Shane: Of course. The Hybrid system, John, is a mix of our mobile fogger and permanent applicators. The whole strategy behind the last year and a half or so has been allowing the customer to decide how and when they want to use the equipment. It is just the purchase of applicators and BIT Solution, those are the two musts, and any sort of delivery system of their choice that can mix and match for their budgets. They are allowed to use it throughout their facility. It is to gauge facility-wide use versus just one-off purchasing.

EJ Shane: Of course. The Hybrid system, John, is a mix of our mobile fogger and permanent applicators. The whole strategy behind the last year and a half or so has been allowing the customer to decide how and when they want to use the equipment. It is just the purchase of applicators and BIT Solution, those are the two musts, and any sort of delivery system of their choice that can mix and match for their budgets. They are allowed to use it throughout their facility. It is to gauge facility-wide use versus just one-off purchasing.

Speaker #1: So it's just the purchase of applicators and BIT solution. Those are the two musts in any sort of delivery system of their choice that they can mix and match for their budgets.

Speaker #1: So they're allowed to use it throughout their facility. It's to gauge facility-wide use versus just one-off purchasing.

John Nelson: Okay. Is the cart applicator a part of that Hybrid type system?

Speaker #5: Okay. And is the CART applicator a part of that hybrid-type system?

Speaker #1: No. So, the cart is our NB Plus. That's all-encompassing, so there are no detachments to that individual product. This is a big win for us because we see the strategy behind that cart as really good for healthcare facilities, and it was a healthcare facility that purchased.

Elissa J. Shane: No. The cart is our NV+. That is all-encompassing. There are no detachments to that individual product. This is a big win for us as we see the strategy behind that cart really good for healthcare facilities. It was a healthcare facility that purchased. We are interested to deliver that by the end of September, and hopefully many more after.

EJ Shane: No. The cart is our NV+. That is all-encompassing. There are no detachments to that individual product. This is a big win for us as we see the strategy behind that cart really good for healthcare facilities. It was a healthcare facility that purchased. We are interested to deliver that by the end of September, and hopefully many more after.

Speaker #1: So we're interested in delivering that by the end of September, and hopefully many more after.

Speaker #5: Okay. And who makes your applicator products? Do you—who's your supplier for those?

John Nelson: Okay. Who makes your applicator products? Who is your supplier for those?

Elissa J. Shane: We actually have moved the applicators to in-house assembly.

EJ Shane: We actually have moved the applicators to in-house assembly.

Speaker #1: We have actually moved the applicators to in-house assembly.

Speaker #5: Oh, okay.

John Nelson: Oh, okay.

Speaker #1: Yeah.

Elissa J. Shane: Yeah.

EJ Shane: Yeah.

John Nelson: Let's see. You mentioned the AgriMist product, and the EPA registration for SteraMist, AgriMist across post-harvest agriculture, cannabis, and hemp.

Speaker #5: Let's see. You mentioned the Agrimist products—Agrimist product and the EPA registration for Steramist Agrimist—cross-post harvest agriculture, cannabis, and hemp. And you mentioned the use on things like avocados.

John Nelson: You mentioned the use on things like avocados. Would it take an FDA ruling to get it approved for fresh produce and/or pre-bagged produce products?

Speaker #5: Would it take an FDA ruling to get an approval for fresh produce, and/or pre-bagged produce products?

Speaker #2: I don't think so.

Halden S. Shane: I don't think so.

Halden Shane: I don't think so.

Speaker #1: So, no. The dashboard label with the EPA—what it does is it opens us up to allow the facility to decide. So, we still have FDA clearance, based on a letter a little over a year ago.

Elissa J. Shane: No. The dash 4 label with the EPA, what it does is it opens us up to allow the facility to decide. We still have FDA clearance based on a letter of a little over a year ago,

EJ Shane: No. The dash 4 label with the EPA, what it does is it opens us up to allow the facility to decide. We still have FDA clearance based on a letter of a little over a year ago,

Speaker #1: This allows our type of hydrogen peroxide, our CAS number, to be used directly on food contact surfaces and in food areas. So, when it comes to the facility, they can either choose to follow the FDA ruling based on that or, now with the EPA dashboard label, the instructions and guidance per that agency.

Elissa J. Shane: which allows our type of hydrogen peroxide, our CAS number, to be used direct on food contact surfaces and food areas. When it comes to the facility, they can either choose to follow on the FDA ruling based on that, or now, with the EPA dash 4 label, the instructions and guidance per that agency. Because it does, one of the key conversations you always have with end users is who are they regulated by? And sometimes it's both, and that gets a little tricky. But now we're covered either way.

EJ Shane: which allows our type of hydrogen peroxide, our CAS number, to be used direct on food contact surfaces and food areas. When it comes to the facility, they can either choose to follow on the FDA ruling based on that, or now, with the EPA dash 4 label, the instructions and guidance per that agency. Because it does, one of the key conversations you always have with end users is who are they regulated by? And sometimes it's both, and that gets a little tricky. But now we're covered either way.

Speaker #1: Because one of the key conversations you always have with end users is, who are they regulated by? And sometimes it's both, and that gets a little tricky.

Speaker #1: But now we're covered either way.

John Nelson: Okay. And then, just watching another timely news article item that made me think of TOMI and its potential use by the military is the consternation over the extended period of time for the aircraft carrier USS Abraham Lincoln in the Middle East and the problems that seem to be breaking out there. Have you explored with the Defense Department the potential use of SteraMist as far as the naval involvement?

Speaker #5: Okay. And then just watching another timely news article—an item that made me think of TOMI and its potential use by the military—is the consternation over the extended period of time for the aircraft carrier USS Lincoln in the Middle East.

Speaker #5: And the problems that seem to be breaking out there. Have you explored with the Defense Department the potential use of SteraMist as far as the naval involvement?

Halden S. Shane: We haven't.

Halden Shane: We haven't.

Speaker #2: We haven't.

Speaker #1: Yeah. Go ahead, Doc.

Elissa J. Shane: Yeah, go ahead.

EJ Shane: Yeah, go ahead.

Elissa J. Shane: No. It's a great idea, but we haven't. We've been so busy doing what we're doing now.

EJ Shane: No. It's a great idea, but we haven't. We've been so busy doing what we're doing now.

Speaker #2: No. It's a great idea, but we haven't. We've been so busy—doing what we're doing now. It's something that they should consider. And the question would be how to go ahead and write the protocols quickly enough to get it over there.

Elissa J. Shane: Yeah.

EJ Shane: Yeah.

Elissa J. Shane: It's something that they should consider. The question would be, how to go ahead and write the protocols quick enough to get it over there. I'm not too sure, though. Hopefully, won't be there too much longer.

EJ Shane: It's something that they should consider. The question would be, how to go ahead and write the protocols quick enough to get it over there. I'm not too sure, though. Hopefully, won't be there too much longer.

Speaker #2: I'm not too sure. Hopefully, they won't be there too much longer.

Speaker #5: And it's the same. I know you're limited as far as the resources for developing new markets, but it seems like SteraMist would also be very useful for the U.S. government programs that are funded to help countries in Africa deal with the Ebola outbreak.

John Nelson: And it is the same. I know you are limited in as far as the resources for developing new markets. But it seems like SteraMist would also be very useful for the US government programs that are funded in helping countries in Africa deal with the Ebola outbreak.

Speaker #2: Yes, that's true. We handled the Ebola outbreak in Western Africa when it first occurred years ago, and we're always ready to help and assist with the current one, which seems to be growing.

Halden S. Shane: Yes, that is true. We handled the Ebola outbreak in Western Africa when it first occurred years ago, and we are always ready to help and assist on the current one, which seems to be growing. So, they are well aware of us, and the World Health Organization is well aware of us and has used us in the past.

Halden Shane: Yes, that is true. We handled the Ebola outbreak in Western Africa when it first occurred years ago, and we are always ready to help and assist on the current one, which seems to be growing. So, they are well aware of us, and the World Health Organization is well aware of us and has used us in the past.

Speaker #2: So, they're well aware of us, and the World Health Organization is well aware of us and has used us in the past.

Speaker #5: Okay. And then, a market that was discussed maybe a year or two ago was the ethylene oxide replacement use in medical instruments sterilization. Has there been any progress or changes in that particular type of market?

John Nelson: Okay. Then a market that was discussed maybe a year or 2 ago was the ethylene oxide replacement use in medical instruments sterilization. Has there been any progress or changes in that particular type of market?

Speaker #2: There are a lot of companies looking to get out of using ethylene oxide. The question where the 510(k) comes in to help us is, it shows that we're able to confirm taking that market away from chemicals like that.

Halden S. Shane: There are a lot of companies looking to get out of using ethylene oxide. The question where the 510(k) comes in to help us is it shows that we are able to confirm taking that market away from chemicals like that. So as we come closer, and as Vijay was talking about the 510(k) and this major company, they will be establishing data on our product, and that data will be utilized to progress the 510(k) forward. So once we do get that, I think those markets will open up fairly quickly.

Halden Shane: There are a lot of companies looking to get out of using ethylene oxide. The question where the 510(k) comes in to help us is it shows that we are able to confirm taking that market away from chemicals like that. So as we come closer, and as Vijay was talking about the 510(k) and this major company, they will be establishing data on our product, and that data will be utilized to progress the 510(k) forward. So once we do get that, I think those markets will open up fairly quickly.

Speaker #2: So as we come closer, and as EJ was talking about the 510(k), this major company will be establishing data on our product.

Speaker #2: And that data will be utilized to progress the 510(k) forward. So, once we do get that, I think those markets will open up fairly quickly.

Speaker #5: Okay. And then your CFO mentioned that TOMI was within striking distance of break-even. Do you have any comments to share with us on the timeline or path to profitability for TOMI?

John Nelson: Okay. Your CFO mentioned TOMI was within striking distance of break even. Do you have any comments to share with us on the timeline or path to profitability for TOMI?

Speaker #4: Yes.

Niro Srirathan: Oh, yeah.

Speaker #2: Well, I think—go ahead, Mira. No, take it. Go ahead.

John Nelson: Well, I think-

Niro Srirathan: Well, I think-

John Nelson: Go ahead, Niro. No, take it. Go ahead.

Halden Shane: Go ahead, Niro. No, take it. Go ahead.

Speaker #4: Yeah. So, based on our sales trajectory, we're planning on hitting the $12 million mark this year in revenue. And, yeah, that will definitely cover our operating expenses and help us break even.

Niro Srirathan: Yeah. Based on our sort of sales trajectory, we're planning on hitting the $12 million mark this year

Niro Srirathan: in revenue. Yeah, that will definitely cover our operating expenses and help us break even. So, from the way we are going, looking at cost-cutting as well, and revenue increasing, I think by Q4 we'll be hitting that break-even mark comfortably.

Speaker #4: So yeah, from the way we are going, looking at cost-cutting as well as revenue increasing, I think by Q4 we'll be hitting that break-even mark comfortably.

Speaker #5: Okay. And then, big increase quarter over quarter—or I should say, quarter over prior year—in fees. Do you think that they will continue at the current level, increase, or decrease over the next couple of quarters?

John Nelson: Okay. Then big increase quarter-over-quarter, or I should say quarter-over-prior year in the professional and consulting fees. Do you think that they will continue at the current level, increase, or decrease over the next couple of quarters?

Speaker #2: No. I think that.

Niro Srirathan: We did spend

Speaker #4: Sorry. Go ahead, Dr. Jane. Sorry.

John Nelson: Well, I think that

John Nelson: Sorry, go on, Doc Shane. Sorry.

Niro Srirathan: Sorry, go on, Doc Shane. Sorry.

Speaker #2: No, I think most of it has to do with the Carbonian Core merger. So a good part of them, I think. I think that once that merger is finished, those fees will decrease, right, Mira?

John Nelson: No, I think most of it has to do with the Carbonion Corp merger, so a good part of them.

Halden Shane: No, I think most of it has to do with the Carbonion Corp merger, so a good part of them.

Niro Srirathan: Okay.

Niro Srirathan: I think that once that merger is finished, those fees will decrease. Right, Niro?

Halden Shane: I think that once that merger is finished, those fees will decrease. Right, Niro?

Speaker #4: That's correct. Yeah, we spent close to $300,000 this quarter due to the merger deal. So once that goes through, those professional fees will start dropping.

Niro Srirathan: That is correct. We spent close to $300,000 this quarter due to the merger deal. Once that goes through, that professional fees will start dropping.

Speaker #5: Okay, great. All right. And then, since this is a public forum, I'm the third-largest shareholder, and I have been steadily adding to my position over the last quarter.

John Nelson: Okay, great. All right. Since this is a public forum, I am the third largest shareholder, and I have been steadily adding to my position over the last quarter. I am enthusiastic about TOMI and their future, whether or not the Carbonion Corp merger goes through or not. So, excellent work. Keep it up. Thank you.

Speaker #5: And I'm as enthusiast I'm enthusiastic about TOMI and their future, whether or not the carbonium core merger goes through or not. So excellent work.

Speaker #5: Keep it up. Thank you.

Speaker #2: Thank you, John. Thank you for your help. Thank you.

Halden S. Shane: Thank you, John. Thank you for your help. Thanks.

Halden Shane: Thank you, John. Thank you for your help. Thanks.

Speaker #5: Thank you. That concludes our Q&A session. I'll now hand the conference back to Dr. Halden Shane for closing remarks. Please go ahead.

Operator: Thank you. That concludes our Q&A session. I will now hand the conference back to Dr. Halden Shane for closing remarks. Please go ahead.

Speaker #2: I want to thank everybody again for joining and hope wherever you are in the world, you have a pleasant day and evening. Thank you.

Halden S. Shane: I want to thank everybody again for joining and hope wherever you are in the world, you have a pleasant day and evening. Thank you.

Halden Shane: I want to thank everybody again for joining and hope wherever you are in the world, you have a pleasant day and evening. Thank you.