Financial Results for the Three Months Ended September 30, 2020 compared to September 30, 2019
? Total net revenue was $4,292,000 compared to $1,600,000, representing an increase of $2,692,000, or 168%.
? SteraMist® equipment-based revenues was $2,945,000 and $669,000, respectively, representing an increase of $2,276,000 or 340%
? SteraMist® BIT Solution-based revenues was $732,000 and $259,000, respectively, representing an increase of $473,000 or 183%
? Service-based revenue was $615,000 and $672,000, respectively, representing a decrease of $57,000 or 8%.
? Domestic revenue was $3,446,000 and $1,288,000, respectively, representing an increase of $2,158,000, or 168%.
? International revenue was approximately $846,000 and $312,000, respectively, representing an increase of $534,000 or 171%.
? Gross margins were 66.1% compared to 71.3%. The lower gross profit is attributable to the product mix in sales.
? Income from operations was $1,096,000, compared to a Loss from operations of ($188,000), representing an increase of $1,284,000.
? Net Income was $1,019,000, or $0.06 on a per share basis compared to a Net loss of ($237,000), or ($0.02) on a per share basis, representing an increase of $1,256,000.
? EBIDTA was $1,274,000 compared to an adjusted net loss of ($5,000). A table reconciling EBITDA to the appropriate GAAP measure is included with the Company's financial information below.
? Cash provided from operations for the nine months ended September 30, 2020 and 2019 of $4,945,000, compared to cash used in operations of ($573,000), respectively.
Balance sheet highlights as of September 30, 2020 and December 31, 2019
? Cash and cash equivalents of approximately $5,885,000 and $897,000, representing an increase of $4,988,000.
? Working capital of $11,692,000 and ($1,266,000), representing an increase of $12,958,000.
? Shareholders’ equity of $13,251,000 and $890,000, representing an increase of $12,361,000.
Current Business Highlights To Date
Revenues
? Milestone reached in the third quarter of 2020 with total revenues exceeding $21 million in a calendar year.
? Year over year growth in overall revenue through September 30th of $16,882,000 or 376%.
? Year over year growth SteraMist® equipment revenue through September 30th of $13,165,000 or 456%.
? Year over year growth SteraMist® BIT Solution revenue through September 30th of $2,931,000 or 509%.
? Year over year growth in service revenue through September 30th of $786,000 or 76%.
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.
? Broke ground on installation of permanent fogging system into our Frederick MD Facility.
? Continued development and testing of the “SteraBot” and launch of pilot program at Lithuanian University Hospital.
? Continued development of SteraPack with a tentative launch set for first quarter 2021.
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Launch of Commercial Division in response to increased demand in Federal Government facilities and agencies, the aircraft (both airplane and helicopter), manufacturing companies, automobile, naval, education, retail, housing and recreation, and of course emergency preparedness for counties and cities.
? SteraMist was featured in a United States Department of Agriculture paper “Cold plasma-activated hydrogen peroxide aerosol on populations of Salmonella Typhimurium and Listeria innocua and quality changes of apple, tomato and cantaloupe during storage – A pilot scale study” is authored by Dr. Xuetong Fan, who has previously contributed to two prior studies regarding direct produce application.
