TOMI Environmental Solutions, Inc. Q4 FY2025 earnings call

• Sterimist Integration System (SIS) had first commercial installation in June 2025, four fully operational enclosures by year end, and a $500,000 signed purchase contract in December. A leading cell and gene therapy manufacturer adopted SteriMIST IHB. Selected by NASA Johnson Space Center for biosecurity operation. Deployed resources for wildfire recovery. Secured bid from a Rhode Island university for CES technology. Eye health customer onboarded in Q1 2025 with growth and a third site set to commence trials in June 2026. OEM partnership strategy gaining momentum with PBSC, ESCO, and Steelco. Expanded into agriculture via partnership with AlgaeFeed. FDA approval of hydrogen peroxide as direct food additive is a watershed. Actively pursuing food contract notification. Pursuing USDA study confirmation of BITS efficacy against deformed wing virus. Achieved compliance recognition across three safety vendor management platforms. Customer service team transitioning to open order policies. Received approvals in UK and Netherlands. Heart monitoring device project nearing completion. Preparing to introduce IHP device to US markets through FDA 510 K process. Technology protected by over 30 patents and deployed in over 40 countries. First quarter 2026 revenue greater than first quarter 2025. Integration project opportunity book at 16 million, STERI-MIST IHP opportunity book at 20 million.

Revenue for the year ended December 31st, 2025, was 5.6 million compared to 7.7 million in 2024. The decline was mainly due to the timing of customer equipment purchases. Service revenue was relatively stable, indicating the durability of the install base. Gross margin improved to approximately 55% from 46% in 2024. Total operating expenses were 6.9 million, down approximately 10% from 2024. Net loss was 3.7 million, or 19 cents per share, an improvement from a net loss of 4.5 million, or 22 cents per share, in 2024. Backlog of orders for TOMI support services increased 16% and BitSolution backlog increased 24% in the first quarter of 2026 compared to the same period last year.

First quarter 2026 revenue is greater than first quarter 2025. Anticipate approximately $3 million in sales among certain customers and trends in support services and bit solution sales for 2026. Estimate revenue for 2026 will be around 12 million bearing any unknowns.

Factors such as tariffs, doge, political uncertainty including war, and uncertainties related to customer equipment purchases and regulatory approvals could impact results. Also, being undercapitalized poses a risk.

Q: Could you provide some more insight into the global opportunities you mentioned in the quarter?

A: First of the EU registrations and submissions came in, expecting many other EU states to follow suit within the next upcoming months with current relationships and distributors in Poland, Germany, Netherlands.

Q: Could you provide a little more color about how we should think about operating expenses in the business just going forward?

A: As Dr. Shane mentioned earlier, as we grow, we will have to invest into our operating expenses but already have leverage in it, not expecting a significant jump in operating expenses and it would slightly decrease as a percentage of revenue growth.

Q: Are you seeing any signs of those customers that were deferring CapEx projects starting to move on them?

A: We are.

Q: Can you provide any details on the comparisons of BIT solution revenues for 2025 versus 2024?

A: There is an increase in the solution between 2024 and 2025 and it's continuing into 2026, coming in tandem with the push on different support services.

Q: Can you provide any more detail as far as how the application would be used to deal with the wing syndrome for honeybees?

A: We have the study and lab type studies, looking and speaking with local universities for live use case.

Q: You had mentioned briefly the use for treating marijuana plants. Is it mites or is it for the powdery mildew?

A: It's for powdery mildew funguses on the plants, have an EPA label we're trying to get, with some live use and customers scaling up.

Q: Have you explored uses of Sterimist in the military?

A: The Navy has some testing center involvement, we're a little too small to go after it immediately but complete requests for information on grant government site.

Q: If you do get a significant amount of new orders, how easy or difficult that would be for you?

A: Probably need to raise some capital to scale up significantly, but the 20 people team do a good job and could handle immediate scale up depending upon the equipment.

Q: Have you totaled them up as far as the number of new customers added net in 2015 versus 2024?

A: Not based on new customers, but will do that and talk about it on the call coming up soon.

Q: Is that still a significant part of efforts going forward to add even more distributors?

A: Absolutely, we're in talks right now with many.