Do not get sidetracked with folks that are frustrated... read the disclosure and make note of the following information in it. Then
try to find an OTC stock that is progressing like TOMI environmental is
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Quote from Filing on 3.30.2020, they paid off their 5 million convertible note in cash and issuing stock (which more than likely has been diluted back in which any of us would do to get our money ).
There has been over 76 million shares traded since Feb 24th and it
is about 5-10 days of turning the estimated float.
It is up drastically in shorted volume in the past month, that will have to cover sooner than later...
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Then find another company that has this much REAL EVENTS in the past year and into the first quarter of 2020.
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TOMI Service Network
TSN is our network comprised of outside professionals who are exclusively licensed and trained to use the SteraMist® products. TSN sells, trains and services professional remediation companies in the use of SteraMist®. These companies specialize in mold abatement, water damage (including damage from CAT 1 though 3 water loss) and fire damage, as well as professional specialists that are certified and practice in the area of forensic restoration. Currently, TSN is comprised of companies throughout the United States and Canada. TSN members use SteraMist® as a standalone service as well as incorporating our products into their existing business models. We derive a continuous revenue stream from our TSN customers through recurring purchases of our BIT™ solution. As of January 1, 2020, we have removed the exclusivity portion of our service partner company agreements which allows us to expand our network and penetrate existing markets.
Our TSN network continues to grow and currently the total number of TSN company providers to date is one-hundred and three (103) expanding our network membership across 35 U.S. States and two (2) Canadian provinces. Our service providers, with approximately 160 SteraMist® with BIT™ technology units in the field, allows for rapid deployment for use in the control of a biological outbreak and border security nationally and internationally upon short notice.
Food Safety
Food Safety is one of our newest and potentially largest targeted markets, as we believe it presents an opportunity for substantial growth. This is in light of the implementation and enforcement of new and existing rules in the United States under the FDA Food Safety Modernization Act and in Canada under the Safe Food for Canadians Act and the Safe Food for Canadians Regulations, the latter two of which became effective in January 2019. This is in part due to the increased focus on concerns within the food safety industry in North America and abroad. Our consultants have submitted to the regulatory bodies a request to expand our current labels from the treatment of food processing machinery, restaurants and food contact areas, to include direct food and crop applications using a 1% acceptable concentration of hydrogen peroxide that is already approved for direct food use by the USDA and EPA.
We intend to target the following segments, with an initial emphasis on the profitable organic market:
? Growing crops
? Seeds
? Packaging facilities
? Food storage (produce, meats, fish)
? Food transportation vehicles
? Food processing plants
? Grocery stores
? Cannabis labs, grow-houses, extraction facilities and retail shops
In each area, our main objective is to prevent and/or minimize food decay without utilizing harsh chemicals that leave toxic residues. This could create an opportunity to supplement, or replace, current pesticides and fungicides currently being used by these industry leaders.
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Business Highlights and Recent Events
Customers:
Globally, we have added fifty-four (54) new customers across all our divisions for the year ended December 31, 2019. This represents a thirteen (13%) percent increase over the calendar year 2018.
Our Hospital-Healthcare division added sixteen (16) new facilities for the year ended December 31, 2019 which represents 167% increase compared to the prior year.
Our Life Sciences customer base showed continued growth with the addition of twenty-six (26) new customers for the year ended December 31, 2019. This represents a 13% increase compared to the prior year.
Our Food Safety division added three (3) new Food Safety customers for the year ended December 31, 2019, an increase of 100% compared to the prior year.
Revenues:
For the year ended December 31, 2019, we had record annual revenue since our inception. Our total revenues for the years ended December 31, 2019 and 2018 was approximately $6,347,000 and $5,585,000, respectively, representing an increase of $762,000, or 14% compared to the prior year.
SteraMist product-based revenues for the years ended December 31, 2019 and 2018, were approximately $4,999,000 and $4,652,000, representing an increase of $347,000 or 7% when compared to the prior year. The growth is attributable to an increase in our mobile equipment orders and higher solution sales in 2019.
Our service-based revenue achieved a record level representing another milestone for the year ended December 31, 2019. Our service-based revenue for the years ended December 31, 2019 and 2018 were $1,348,000 and $933,000, respectively, representing an increase of $415,000 or 44% when compared to the prior year. The increase in our service-based revenue was due to increased service engagements for the year ended December 31, 2019 when compared to the prior year.
In 2019, our domestic revenue for the years ended December 31, 2019 and 2018 was $5,002,000 and $4,197,000, respectively, an increase of $805,000, or 19% when compared to the prior year. The increase was due to increased demand for our equipment, solution and services.
Our Hospital-Healthcare revenues grew by 120% for the year ended December 31, 2019 when compared to the prior year. The growth was attributable to the increase in the number of facilities added during the year. We anticipate continued growth moving into 2020.
Our Life Sciences revenue experienced continued growth 4% for the year ended December 31, 2019 when compared to the prior year. The 4% growth reflects a non-recurring custom built-in unit of approximately $600,000 in the third quarter of 2018. Year over year, we experienced increased solution and mobile equipment orders.
Significant Contracts:
In January 2019, TOMI and Arkema Inc. a global leader in the hydrogen peroxide industry entered into an exclusive global co-marketing and supply agreement. The agreement provides that the parties will develop the market for TOMI’s technology using our SteraMist brand of products for food safety applications, improving the speed and effectiveness of disinfection solutions to the industry.
In April 2019, we entered into an exclusive distribution agreement with an Israeli company, Cleancor Technologies Ltd. (“Cleancor”), an advanced solution company for the industrial cleaning and repair of water and fire damages. Cleancor has already diversified and started a subsidiary named Clean-Bit Environmental Solutions and has begun implementing marketing strategies resulting in a robust pipeline in the health care, food industry, defense, and medical cannabis verticals.
In May 2019, we received a order for mobile equipment of over $400,000 for the Kansas Department of Health in the United States.
In July 2019, we announced the implementation of SteraMist® iHP™ Plasma Decontamination Chamber at the University of Houston and a partnership with Lynx Product Group.
In December 2019, we shipped our seventh (7th) SteraMist® custom engineered system. This is the second permanent room system for installation into our United Kingdom based customer’s facility.
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Service Projects:
In September 2019, we were engaged by Los Angeles County – USC (LAC + USC) Medical Center to remediate Aspergillus mold that had appeared within a critical sterilization area of the facility.
In August 2019, we were awarded a service project with a niche pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals as well as animal and consumer health products with a focus on injectables. The iHP™ Service team treated the 170,000 cubic foot space, including classified and non-classified areas. We were engaged again in the fourth quarter by the same niche pharmaceutical company to perform a similar treatment.
Events:
We exhibited at the annual conference of the Association of Professionals in Infection Control (APIC) with our new booth creating the largest presence we have had at a tradeshow. The SteraMist® Hospital Cart was on display as well as multiple educational presentations to infection preventionists. The show provided many valuable leads and our new exhibit received considerable praise. This presence added two new hospital clients in the third quarter and four in the fourth quarter.
We exhibited at our first veterinary conference, bringing on our first animal hospital customer in the third quarter, demonstrating the versatility and ever-expanding verticals SteraMist® disinfection technology may be implemented in.
We exhibited at the 70th annual American Association for Laboratory Animal Science (AALAS) National Meeting in Denver Colorado.
To increase our presence in the Food Safety industry, we exhibited at the Fruit Attraction 2019, an international trade show that focuses on the fruit and vegetable industry.
In November 2019, we exhibited at International Sanitary Supply Association (ISSA) North America expo in Las Vegas Nevada.
Subsequent Events:
SARS CoV-2 coronavirus. On March 11, 2020 the World Health Organization declared the SARS CoV-2 coronavirus a global pandemic and recommended containment and mitigation measures worldwide. We have been identified as a disinfectant and decontamination vendor by various agencies and countries. The outbreak has increased the demand for TOMI products and services. We have been working relentlessly with organizations to address the concerns and provide solutions for disinfecting and decontamination of the SARS CoV-2 coronavirus. The financial statements included in this Annual Report do not reflect any of the Company’s SARS CoV-2 coronavirus related sales and services revenue that occurred since the pandemic outbreak in 2020 and which will be reported in the ensuing quarterly report.
Following are the significant events during the first quarter 2020:
? January 29, 2020 – TOMI SteraMist® prepared to deploy to fight SARS CoV-2 coronavirus.
? February 4, 2020 - TOMI Receives China CDC Registration Making SteraMist® the Disinfection Industry Standard in China
? February 27, 2020 - SteraMist® Takes the Fight to the SARS CoV-2 coronavirus. Worldwide - China, Hong Kong, Thailand, Singapore, Israel and the United Kingdom
? March 2, 2020 - SteraMist® Declared Official Decontamination Technology of Seoul City Metropolitan Transit Systems
? March 10, 2020 - SteraMist® is Mobilized to Aid in the Control SARS-CoV-2 coronavirus in Daegu-Kyungbuk Province, South Korea
? March 11, 2020 - SteraMist® is Prepared to Fight SARS-CoV-2 coronavirus in Thailand
? March 16, 2020 - SteraMist® Deployed to Fight SARS-CoV-2 coronavirus in United States
? March 18, 2020 – SteraMist® has qualified to meet the EPA Emerging Viral Pathogen Guidance for Antimicrobial Pesticides with the SteraMist® Environment System for room fogging/misting against SARS-CoV-2 coronavirus, the novel coronavirus that causes COVID-19.
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During the first quarter of 2020, we have experienced the following:
? Sold substantially all of our inventory, with a backlog and demand for 91 additional units,
? New equipment orders require a 50% deposit,
? Increased demand on solution re-orders as disinfecting and decontamination procedures have increased exponentially across the world,
? Service revenue exploded as the outbreak spread and demand for disinfecting and decontamination services increased,
? Exclusivity in TSN was revoked as demand surged and new providers requested equipment, solution and training to provide disinfecting and decontamination services,
? New channels were opened as decontamination and disinfecting processes are updated and implemented, including but not limited to, fire departments, morgues, FAA, police departments, county and state health departments, cruise ships, infectious disease research facilities, military and ambulances,
? Convertible notes with a principal balance of $4,500,000 were converted into 8,333,333 shares of our common stock at a conversion price of $0.54 per share, the remaining outstanding balance of $500,000 was repaid.
? Staffing – increased demand has severely taxed our existing team and resources to meet the current demands resulting in hiring and onboarding additional employees.
Certifications:
During 2019, we added compounding pharmacy customers, which are FDA 503B outsourcing facilities that meets all rigorous national standards with quality sterile products. The FDA created this new designation of compounding pharmacy to establish a new level of patient care and safety, and these facilities must comply with strict cGMP (current good manufacturing practices) guidelines, which is the same standards that pharmaceutical manufacturers follow. We have continued to add new pharmacy customers in the third quarter of 2019. With the addition of the two new pharmacy customers in the third quarter of 2019 we now have four compounding pharmacy customers.
During 2019, we were audited by Pfizer Global Supply Manufacturing and Supplier Quality Assessments and were reported to be “Acceptable”, allowing us to continue expanding SteraMist® implementation into Pfizer facilities. Our management has further focused and allocated resources towards expanding quality control procedures and protocols based on recommendations received during the audit. Pfizer approved a press release of how SteraMist is being used in multiple facilities across the United States as a result of passing the Pfizer Global Supply Agreement Audit. In the third quarter, we fulfilled new orders and finalized a new piece of custom commercial research laboratory equipment for Pfizer utilizing our BIT™ technology platform.
Research Studies
We continue to participate in a large multi-year federal funded study, known as the “SHIELD study”, that compares hospital manual cleans to a SteraMist® mechanical clean. Preliminary results collected by the current hospitals in the study is showing a decrease in the transference of pathogens resulting in HAIs and C. difficile infections in the rooms that used SteraMist® for their terminal clean, as compared to the rooms that have been manually cleaned. The University of Michigan, a recognized teaching university hospital, joined the California hospitals in this Shield Study in the fourth quarter, allowing for additional collection of data to validate the value of SteraMist® technology in hospitals.
At the annual meeting of the American Association for Laboratory Animal Science (“AALAS”) this October in Denver, the University of Iowa and Iowa State University presented a study about our technology and the effect of iHP™ on pinworms members of the University of Iowa and Iowa State University were available in the poster section of the conference and answered questions from the many AALAS members about our excellent results. A published paper will be shortly released in a major scientific journal.
The United States Department of Agriculture (USDA) submitted another paper for publication titled “Cold Plasma Enhances the Efficacy of ionized Hydrogen Peroxide in Reducing Populations of Salmonella Typhimurium and Listeria innocua on Grape Tomatoes, Apples, Cantaloupe and Romaine Lettuce” In July 2019, the author presented the paper, and a poster was shown at the International Association of Food Protection (IAFP). This was a successful introduction of SteraMist® to this audience and many are interested in further testing and research of the technology. The poster and presentation focused on the urgent need of a decontamination technology, such as SteraMist® to enhance microbial safety of fresh produce. Greater reductions were documented when ionized hydrogen peroxide was passed through the plasma arc and greater than 5 log reductions of Salmonella were achieved. We are looking forward to the publication of this paper in a recognized international food safety journal.
Product Development
We have added three new products to our growing line of products:
? A single applicator build-in unit for decontamination chambers and cage washers, which was recently successfully validated at the University of Houston.
? A decontamination cart for a Pfizer facility. We will be designing and engineering a second SteraMist® mobile decontamination cart for this same facility by the second quarter of 2020.
? A stainless-steel mobile 90-degree applicator and the answer to the mobile treatment and decontamination of BSC cabinets and isolators. The 90 degree applicator product has led to a partnership with a large design and manufacturing company of washing and contamination control systems, and we plan on installing an all-in-one disinfection solution to Gnotobiotic Housings with our partner.
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During 2019, we continued our focus on improving our SteraMist® Environment System and the development of a proprietary software that will be integrated into the next generation of SteraMist® equipment, both mobile and permanent. The new software will improve communication between our equipment and the end user’s system, provide improved reporting results and simplify the overall usage of the system itself. During the first quarter of 2019, we reached feasibility with the software being developed. We are in the final testing and validation phase of the new Environment System prototype, expecting to begin commercialization in 2020.
We are in the design phase with our partner Arkema and their client (a global food storage and safety company) on an engineered concept for the decontamination of large industrial food warehouse facilities. The concept is a six (6) applicator fully automated fogging system permanently mounted on a hydraulic lift that is capable of coverage in high-volume spaces. We are in early phases of the project and don’t have an expected commercialization date.
Registrations & Intellectual Property (IP):
In January 2019, TOMI received a no objection letter from Canada, amending its BIT™ Solution registration to include Salmonella and Norovirus. Our Canadian label now holds similar efficacy claims with our U.S. EPA label.
In February 2019, we added our Canadian label to the Organic Materials Review Institute (“OMRI”) certifying that our product meets the Canadian organic standards. On May 15, 2019, our BIT™ solution disinfectant was listed and certified with the OMRI in compliance with the USDA National Organic Program. Thus, our product is now listed as an OMRI Listed© product and appears on the OMRI Products List© and the OMRI Canada Products List©.
We have been actively pursuing registration in mainland China. We successfully passed the Chinese Center for Disease Control and Prevention (“Chinese CDC”) requirements for registration. In addition, we have strengthened our intellectual property in the region, submitting trademarks and patent registrations. We successfully passed all eighteen (18) testing measures required, including many microbiological tests. All of the toxicity studies demonstrated that our BIT™ fog was classified as a non-toxic substance. In the second quarter of 2019, we were made aware of the final materials needed for the dossier that is required by the Chinese CDC for registration of our product. The finalization of our dossier was submitted in the third quarter of 2019, which included the successful shipping and custom clearance to the region, and all the necessary custom declaration forms have been certified. The pre-CDC approval has been commented on by the Chinese CDC. After a three (3) year-long submission process, in January 2020, we received confirmation that two (2) separate registrations - SteraMist® equipment registration and BIT™ solution registration - has been officially approved and registered with the China CDC.
Our 90-degree surface mounted applicator device was allowed and published in the Philippines. We have submitted this design patent in multiple countries and expect the others to follow shortly in publication. This additional design patent compliments our design patents portfolio, including our permanent modular applicator, decontamination cart, and our two decontamination chambers.
In August and September 2019, we published and filed two new utility patents. These utility patents were originally filed in 2017 and 2018. The published patents included both the system claims (US15/858,446) and the method claims (US16/127,915) and were published with the USPTO in the third quarter of 2019.
In November 2019, we registered two new design patents entitled “Surface Mounted Applicator Device” in Europe and Japan.
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