TOMI Environmental Solutions Q2 Revenue Declines

TL;DR

**TOMI Environmental Solutions Q2 revenue down to $1.96M, net loss widens to $0.75M. Ouch.**

AI Summary

TOMI Environmental Solutions, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported revenue of $1.96 million for the second quarter of 2024, a decrease from $2.00 million in the same period of 2023. For the six months ended June 30, 2024, revenue was $3.77 million, down from $4.00 million for the comparable period in 2023. The company's net loss for the second quarter of 2024 was $0.75 million, compared to a net loss of $0.64 million in Q2 2023.

Why It Matters

The decline in revenue and increase in net loss for TOMI Environmental Solutions in Q2 2024 indicates potential challenges in sales or market demand for their products and services.

Risk Assessment

Risk Level: medium — The company experienced a decline in revenue and an increase in net loss for the reported quarter and year-to-date period, suggesting potential financial headwinds.

Key Numbers

• $1.96M — Q2 2024 Revenue (Down from $2.00M in Q2 2023)
• $3.77M — Year-to-Date 2024 Revenue (Down from $4.00M in YTD 2023)
• $0.75M — Q2 2024 Net Loss (Increased from $0.64M in Q2 2023)

Key Players & Entities

• TOMI Environmental Solutions, Inc. (company) — Filer of the 10-Q
• June 30, 2024 (date) — End of the reporting period
• $1.96 million (dollar_amount) — Q2 2024 revenue
• $2.00 million (dollar_amount) — Q2 2023 revenue
• $3.77 million (dollar_amount) — Year-to-date 2024 revenue
• $4.00 million (dollar_amount) — Year-to-date 2023 revenue
• $0.75 million (dollar_amount) — Q2 2024 net loss
• $0.64 million (dollar_amount) — Q2 2023 net loss

FAQ

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share TOMZ Nasdaq Capital Marke

Filing Documents

• tomz_10q.htm (10-Q) — 1163KB
• tomz_ex311.htm (EX-31.1) — 13KB
• tomz_ex312.htm (EX-31.2) — 13KB
• tomz_ex321.htm (EX-32.1) — 5KB
• tomz_ex322.htm (EX-32.2) — 5KB
• tomz_10qimg2.jpg (GRAPHIC) — 3KB
• 0001654954-24-009807.txt ( ) — 5820KB
• tomz-20240630.xsd (EX-101.SCH) — 50KB
• tomz-20240630_lab.xml (EX-101.LAB) — 316KB
• tomz-20240630_cal.xml (EX-101.CAL) — 49KB
• tomz-20240630_pre.xml (EX-101.PRE) — 271KB
• tomz-20240630_def.xml (EX-101.DEF) — 143KB
• tomz_10q_htm.xml (XML) — 973KB

Financial Statements

Financial Statements. 4 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 31 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 56 Item 4

Controls and Procedures

Controls and Procedures. 56 PART II OTHER INFORMATION Item 1 Legal Proceedings. 57 Item 1A Risk Factors. 57 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds. 57 Item 3 Defaults Upon Senior Securities. 57 Item 4 Mine Safety Disclosures. 57 Item 5 Other Information. 57 Item 6 Exhibits. 57

SIGNATURES

SIGNATURES 58 EXHIBIT INDEX 59 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, or this Form 10-Q, contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and we intend that such forward looking statements be subject to the safe harbors created thereby. For this purpose, any statements contained in this Form 10-Q, except for historical information, may be deemed forward-looking statements. You can generally identify forward-looking statements as statements containing the words "will," "would," "believe," "expect," "estimate," "anticipate," "intend," "assume," "can," "could," "plan," "predict," "should" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to projections of our future financial performance, trends in our businesses, or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The forward-looking statements included herein are based on current expectations of our management based on available information and involve a number of risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond our control. As such, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors, some of which are listed under the section "Risk Factors" in our most recent annual report on Form 10-K previously filed with the Securities and Exchange Commission on April 1, 2024. Readers should carefully review these risks, as well as the additional risks described in oth

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. TOMI ENVIRONMENTAL SOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS Current Assets: June 30, 2024 (Unaudited) December 31, 2023 Cash and Cash Equivalents $ 709,110 $ 2,339,059 Accounts Receivable - net 3,663,862 2,429,929 Other Receivables 164,150 164,150 Inventories (Note 3) 4,281,614 4,627,103 Vendor Deposits (Note 4) 126,185 29,335 Prepaid Expenses 290,195 371,298 Total Current Assets 9,235,116 9,960,874 Property and Equipment – net (Note 5) 983,601 1,048,642 Other Assets: Intangible Assets – net (Note 6) 1,113,491 1,123,246 Operating Lease - Right of Use Asset (Note - 7) 434,607 467,935 Long Term Accounts Receivable - net 206,240 206,240 Other Assets 638,392 550,677 Total Other Assets 2,392,730 2,348,098 Total Assets $ 12,611,447 $ 13,357,614 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 1,714,489 $ 1,267,029 Accrued Expenses and Other Current Liabilities (Note 13) 512,829 675,491 Deferred Revenue 57,192 - Current Portion of Long-Term Operating Lease 122,259 115,658 Total Current Liabilities 2,406,769 2,058,178 Long-Term Liabilities: Long-Term Operating Lease, Net of Current Portion (Note 7) 579,715 642,527 Convertible Notes Payable, net of unamortized debt discount of $ 270,746 and $ 301,985 at June 30, 2024, and December 31, 2023, respectively (NOTE 9) 2,329,254 2,298,015 Total Long-Term Liabilities 2,908,969 2,940,542 Total Liabilities 5,315,738 4,998,720 Commitments and Contingencies (Note 7 and 11) Shareholders' Equity: Cumulative Convertible Series A Preferred Stock; par value $ 0.01 per share, 1,000,000 shares authorized; 63,750 shares issued and outstanding at June 30, 2024, and December 31, 2023, respectively 638 638 Cumulative Convertible Series B Preferred Stock; $ 1,000 stated value; 7.5 % Cumulative dividend; 4,000 shares authorized; none i

View Full Filing

View this 10-Q filing on SEC EDGAR