GlobeNewswire Inc | Aug 13, 2020 09:30AM EDT

August 13, 2020

BEVERLY HILLS, Calif., Aug. 13, 2020 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (TOMI) (OTCQB:TOMZ), is a global company specializing in disinfection and decontamination utilizing its premier Binary Ionization Technology (BIT) platform through its SteraMist brand of products - a hydrogen peroxide-based mist and fog comprised of ionized Hydrogen Peroxide (iHP), announced its results for the second quarter of 2020.

TOMI Chief Executive Officer, Dr. Halden Shane stated, We experienced sustained growth in the second quarter and hit a major milestone with revenues exceeding $10 million as a result of strong global demand for innovative technologies in disinfection and infectious disease control. With the increase in sales to date and the foreseeable future, a second manufacturer was added to expand our production capacity. Meanwhile, TOMIs customer base continues to growwhile additional channels are showing interest in SteraMist and the versatility of the product. TOMI has been hiring additional employees to improve our quality control standards and upgrade our internal controls. As always, TOMI is introducing new products and enhancements as we strive to innovate for a safer world.

Financial Results for the Three Months Ended June 30, 2020 compared to June 30, 2019

-- Total net revenue was $10,028,000 compared to $1,639,000, representing an increase of $8,389,000, or 512%.-SteraMist product-based revenues was $9,235,000 and $1,504,000, respectively, representing an increase of $7,731,000 or 514%.-Service-based revenue was $793,000 and $135,000, respectively, representing an increase of $658,000 or 487%.-Domestic revenue was $8,392,000 and $1,428,000, respectively, representing an increase of $6,964,000, or 488%.-International revenue was approximately $1,636,000 and $211,000, respectively, representing an increase of $1,425,000 or 675%. -- Gross margins were 55.5% compared to 59.5%. The lower gross profit is attributable to the product mix in sales. -- Income from operations was $3,657,000, compared to a Loss from operations of ($535,000), representing an increase of $4,192,000. -- Net Income was $3,657,000, or $0.03 on a per share basis compared to a Net loss of ($585,000), or ($0.00) on a per share basis, representing an increase of $4,242,000. -- EBITDA was $3,829,000 compared to an adjusted net loss of ($356,000). A table reconciling EBITDA to the appropriate GAAP measure is included with the Company's financial information below. -- Cash provided from operations for the six months ended June 30, 2020 and 2019 of $5,385,000, compared to cash used in operations of ($120,000), respectively.

Balance sheet highlights as of June 30, 2020 and December 31, 2019

-- Cash and cash equivalents of approximately $6,268,000 and $897,000, representing an increase of $5,371,000. -- Working capital of $10,583,000 and ($1,266,000), representing an increase of $11,849,000. -- Shareholders equity of $12,159,000 and $890,000, representing an increase of $11,269,000.

Current Business Highlights To Date Revenues

-- Second quarter revenue of $10,028,000 is the highest gross amount of quarterly sales reported in TOMIs history. -- Year over year growth in overall revenue through June 30th of $14,191,000 or 491%. -- Year over year growth in equipment and solution revenue through June 30th of $13,347,000 or 527%. -- Year over year growth in service revenue through June 30th of $844,000 or 236%. -- Sold 514 machines to date in 2020, representing an 852% increase over the same prior year period.

Customers

-- Added two hundred (200) customers to date in 2020, representing a 471% increase over the same prior year period. -- Added forty-nine (49) new facilities in the hospital-healthcare division to date in 2020, representing a 600% increase over the same prior year period. -- Added seventy-four (74) new TSN providers to date in 2020, representing a 1,380% increase over the same prior year period, creating a total of 175 providers throughout 40 U.S. States and Canada. -- Added twenty-nine (29) new customers to our Life Sciences customer base, representing an increase of 93%. -- Added four (4) new Food Safety customer who purchased and implemented our SteraMist technology into their facilities. -- Added twenty-seven (27) customers in a variety of new commercial channels, both in domestic and international territories. These customers include but are not limited to use sites such as aviation, prisons, police and fire departments, automobile, marine, education, regulatory consulting agencies, hospitality and, of course, emergency preparedness for counties and cities.

Business Highlights

-- Increased demand on solution re-orders as disinfecting and decontamination procedures have increased exponentially across the world. -- Saw an increase in Hospital-Healthcare customers purchasing multiple SteraMist units in order to deploy throughout multiple locations and/or areas within a facility. -- Saw an increase in servicing national accounts across multiple facilities both via iHP Corporate Service and our TSN. -- Entered into a new manufacturing agreement with Planet Innovation Products, Pty Ltd. -- Increased demand of product and services has led to the hiring and onboarding of additional employees to assist in a wide variety of company operations, including but not limited to accounting, procurement, customer satisfaction, and quality control. -- Published Study Determining the Effectiveness of Decontamination with Ionized Hydrogen Peroxide, Lead Author, Miguel A. Grimaldo, Applied Biosafety Journal. -- Announced Completion and Testing Trial of Its First Disinfection Robot.TOMI enters into multiple separate AMR (Autonomous Mobile Robots) manufacturing agreements globally for SteraBot, TOMIs disinfectingautonomous robot.

TOMIEnvironmental Solutions, Inc.: Innovating for a safer worldTOMIEnvironmental Solutions, Inc. (OTCQB:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology(BIT) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BITsolution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP). Represented by the SteraMistbrand of products, iHPproduces a germ-killing aerosol that works like a visual non-caustic gas. TOMIproducts are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities.TOMIproducts and services have also been used in single-family homes and multi-unit residences.

TOMIdevelops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, America Seed Trade Association, and The Restoration Industry Association.

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

TOMI ENVIRONMENTAL SOLUTIONS, INC.CONDENSED CONSOLIDATED BALANCE SHEET ASSETS Current Assets: June 30, 2020 December 31, (Unaudited) 2019Cash and Cash Equivalents $ 6,268,061 $ 897,223 Accounts Receivable - net 4,591,061 1,494,658 Inventories 2,759,299 2,315,214 Vendor Deposits 568,599 141,052 Prepaid Expenses 257,981 187,664 Total Current Assets 14,445,001 5,035,811 Property and Equipment ? net 1,200,510 1,367,864 Other Assets: Intangible Assets ? net 752,316 939,010 Operating Lease - Right of Use Asset 653,626 674,471 Capitalized Software Development Costs - net 73,327 94,278 Other Assets 302,429 114,033 Total Other Assets 1,781,698 1,821,792 Total Assets $ 17,427,209 $ 8,225,467 LIABILITIES AND SHAREHOLDERS? EQUITY Current Liabilities: Accounts Payable $ 3,012,832 $ 713,222 Accrued Expenses and Other Current 710,270 450,112 LiabilitiesAccrued Officers Compensation 31,058 - Accrued Interest - 66,667 Customer Deposits 32,040 - Current Portion of Long-Term Operating Lease 76,266 71,510 Convertible Notes Payable, net of discount of - 5,000,000 $0 at December 31, 2019Total Current Liabilities 3,862,466 6,301,511 Long-Term Liabilities: Loan Payable 410,700 - Long-Term Operating Lease, Net of Current 995,068 1,034,413 PortionTotal Long-Term Liabilities 1,405,768 1,034,413 Total Liabilities 5,268,235 7,335,924 Commitments and Contingencies - - Shareholders? Equity: Cumulative Convertible Series A PreferredStock; par value $0.01 per share, 1,000,000shares authorized; 510,000 shares issued and 5,100 5,100 outstanding at June 30, 2020 and December 31,2019Cumulative Convertible Series B PreferredStock; $1,000 stated value; 7.5% Cumulativedividend; 4,000 shares authorized; none - - issued and outstanding at June 30, 2020 andDecember 31, 2019Common stock; par value $0.01 per share,250,000,000 shares authorized; 133,752,600and 124,700,418 shares issued and 1,337,525 1,247,004 outstanding at June 30, 2020 and December 31,2019, respectively.Additional Paid-In Capital 48,039,415 43,136,683 Accumulated Deficit (37,223,066 ) (43,499,244 )Total Shareholders? Equity 12,158,974 889,543 Total Liabilities and Shareholders? Equity $ 17,427,209 $ 8,225,467

TOMI ENVIRONMENTAL SOLUTIONS, INC.CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(UNAUDITED) For The Three Months Ended For The Six Months Ended June 30, June 30, 2020 2019 2020 2019 Sales, net $ 10,028,497 $ 1,638,674 $ 17,081,915 $ 2,891,332 Cost of Sales 4,463,602 663,362 7,029,012 1,156,672 Gross Profit 5,564,895 975,312 10,052,903 1,734,660 Operating Expenses:Professional 54,831 108,923 190,956 214,404 FeesDepreciationand 172,298 179,535 344,207 356,380 AmortizationSelling 388,827 518,546 767,472 960,216 ExpensesResearch and 141,123 68,659 200,581 161,236 DevelopmentEquityCompensation 114,293 6,116 297,065 87,033 ExpenseConsulting Fees 69,705 20,261 151,250 55,267 General and 967,158 608,605 1,785,303 1,303,485 AdministrativeTotal Operating 1,908,235 1,510,645 3,736,834 3,138,021 ExpensesIncome (loss) 3,656,660 (535,333 ) 6,316,069 (1,403,361 )from Operations Other Income (Expense):Amortization of - - - (17,534 )Debt DiscountsInterest Income 1,043 629 1,585 1,659 Interest (787 ) (50,000 ) (41,476 ) (100,000 )ExpenseTotal OtherIncome 256 (49,371 ) (39,891 ) (115,875 )(Expense) Income (loss)before income 3,656,916 (584,704 ) 6,276,178 (1,519,236 )taxesProvision for - - - - Income TaxesNet Income $ 3,656,916 $ (584,704 ) $ 6,276,178 $ (1,519,236 )(loss) Net income(loss) Per Common ShareBasic $ 0.03 $ (0.00 ) $ 0.05 $ (0.01 )Diluted $ 0.02 $ (0.00 ) $ 0.04 $ (0.01 ) Basic WeightedAverage Common 133,541,403 124,699,539 130,172,111 124,679,534 SharesOutstandingDilutedWeightedAverage Common 148,558,078 124,699,539 145,188,786 124,679,534 SharesOutstanding

Reconciliation of Net Income to EBITDA For The Three Months Ended For The Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income $ 3,656,916 $ (584,704 ) $ 6,276,178 $ (1,519,236 )(loss) Interest (1,043 ) (629 ) (1,585 ) (1,659 )IncomeInterest 787 50,000 41,476 100,000 ExpenseDepreciationand 172,298 179,535 344,207 356,380 AmortizationOther - - - 17,534 EBITDA(Adjusted $ 3,828,958 $ (355,798 ) $ 6,660,276 $ (1,046,981 )Loss) EBITDA 38 % (22 %) 39 % (36 %)Margin

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995Certain written and oral statements made by us may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 (the Reform Act). Forward-looking statements are identified by such words and phrases as we expect, expected to, estimates, estimated, current outlook, we look forward to, would equate to, projects, projections, projected to be, anticipates, anticipated, we believe, could be, and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. They are forward-looking, and they should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements after the date of this release.

INVESTOR RELATIONSCONTACT

Harold Paulhpaul@tomimist.com