FREDERICK, Md., March 31, 2026 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ), a global provider of disinfection and decontamination essentials through its premier Binary Ionization Technology$(R)$ (BIT(TM)) platform, today announced financial results for the year ended December 31, 2025, and provided an update on strategic initiatives designed to drive long-term growth.
2025 Highlights:
-- Recap of 2025: TOMI made meaningful strides across multiple strategic
priorities. We continued to strengthen our government relationships,
highlighted by our selection by NASA for a biosecurity operation for our
reliability in mission-critical environments. Commercially, we announced
several new customer wins across global CDMOs, leaders in eye health, and
prestigious university research groups. In parallel, regulatory and
industry tailwinds in the food market, particularly recent FDA
developments, have significantly expanded the potential applications for
SteraMist iHP within food safety and processing environments. Our sales
were driven primarily by continued strength in our service division and
recurring BIT$(TM)$ Solution sales.
-- Strong Gross Margins: Gross profit margin remained healthy at
approximately 55%, underscoring the efficiency of operations and the
value of the Company's technology.
-- Global Market Expansion: Continued penetration into global markets,
including Canada, the UK and Europe, with approximately 29% of revenue
generated internationally, compared to 21% in the prior year. We
leveraged late-2025 strategic milestones to successfully launch into the
Canadian healthcare sector in early 2026. This momentum included securing
Total Clean Air as our preferred partner for the UK and EU, alongside
significant infrastructure investments to support 2026 growth across
Europe.
-- Operational Efficiencies: We reduced total operating expenses by
approximately 10% in 2025 and are exploring the use of AI-related
technologies. Going forward into 2026, we continue to actively manage
controllable costs while preserving the technical and commercial capacity
required to execute on our pipeline.
-- Product Innovation: Ongoing investment in R&D to expand applications of
SteraMist(R) across life sciences, healthcare, food safety, and
commercial markets, resulting in a more comprehensive equipment and
service portfolio.
-- Industry Recognition: Our technology continued to gain industry
recognition. SteraMist was named Disinfection and Decontamination
Products Company of the Year 2025 by MedTech Outlook, reflecting market
confidence and the growing adoption of our platform.
-- Strategic Validation: A landmark USDA study confirmed BIT efficacy
against deformed wing virus (DWV) for agricultural biosecurity in
honeybees.
Financial Results for the year ended December 31, 2025, compared to December 31, 2024
-- Sales, net was $5,636,000 compared to $7,739,000 for the years ended
December 31, 2025 and 2024, respectively. This was primarily driven by
customers deferring capital expenditure projects due to the uncertain
economic environment with the impact of tariffs and the Middle East
crisis. This impact is expected to be temporary, and the customers'
operations and related service activity are expected to resume on a
normal schedule.
-- Service revenue remained relatively consistent, reflecting ongoing demand
for the Company's decontamination and service solutions.
-- Operating loss was ($3,854,000) compared to an operating loss of
($4,105,000) for the years ended December 31, 2025 and 2024,
respectively.
-- Net loss was $(3,749,000) or ($0.19) per basic and diluted share,
compared to net loss of $(4,477,000) or ($0.22) per basic and diluted
share for the years ended December 31, 2025, and 2024, respectively.
-- Our sales backlog grew during 2025 to approximately $1.8 million,
reflecting improved visibility into near-term revenue conversion and
continued contribution from our recurring consumables and service revenue
base.
Recent Business Highlights:
-- On October 1, 2025, we announced the purchase of SteraMist iHP equipment
and BIT Solution totaling $175,000 by Trauma and Casualty Team (T.A.C.T.)
franchises, a premier provider of decontamination services operating 18
franchises across the United States. T.A.C.T.'s adoption of SteraMist
technology represents a key milestone in the Company's commercial growth
strategy.
-- On November 10, 2025, we showcased our SIS platform at the AALAS 76th
National Meeting in Long Beach, California, a key lead generation event
for our animal research vertical.
-- On November 26, 2025, we announced a custom integration pipeline valued
at approximately $3 million, with ten active projects across our SIS and
CES platforms. Strategic OEM partnerships with ESCO, Steelco, PBSC,
Nuaire, and Getinge are driving platform growth and broader distribution.
-- On December 18, 2025, we secured a signed purchase order valued at
approximately $500,000 from a global biopharmaceutical leader for the
integration of SteraMist iHP into passthrough fill boxes used in sterile
manufacturing.
-- On December 22, 2025, we announced the adoption of SteraMist iHP by a
leading Cell and Gene Therapy ("CGT") manufacturer for a commercial-scale
pharmaceutical facility, including full IQ/OQ qualification and
whole-facility iHP Corporate Service fogging of manufacturing suites, QC
labs, and support spaces.
-- As of December 31, 2025, we had ten active SIS and CES integration
projects with a combined contract value of approximately $3 million,
including a $500,000 signed purchase order from a global
biopharmaceutical leader received in December 2025.
-- These figures represent potential future revenue and are not committed
orders or guarantees of future performance. Conversion of this pipeline
is a primary driver of our 2026 liquidity plan. Certain CES project
conversions were delayed during 2025 by the tariff-driven slowdown in
U.S. pharmaceutical facility capital decisions, which management views as
a temporary, externally driven timing issue rather than a change in
underlying demand.
Liquidity and Capital Access
-- As of December 31, 2025, we had cash and cash equivalents of $88,000 and
working capital of $1.0 million. For the year ended December 31, 2025, we
incurred a net loss of $3.7 million and used $1.2 million of cash in
operating activities. Our accumulated deficit as of December 31, 2025 is
$58.1 million.
-- During 2025, the Company successfully completed a $535,000 convertible
note financing to provide additional working capital and support growth
initiatives. We are evaluating options to reduce our outstanding
convertible note obligations, including potential conversion into equity
or repayment using proceeds from the Hudson Global equity line, either of
which would reduce total debt and improve stockholders' equity.
-- On November 5, 2025, the Company entered into an equity line of credit
("ELOC") pursuant to which the Company has the option to sell, from time
to time, up to $20,000,000 shares of its common stock over a 24-month
period. The ELOC provides the Company with flexible access to capital on
an as-needed basis, subject to applicable Nasdaq listing requirements. We
may, at our sole discretion, draw down between $25,000 and $2,000,000 per
draw, subject to applicable exchange caps. In February 2026, we made our
first draw, generating gross proceeds of $94,130.
-- Our effective Form S-3 shelf registration statement provides a registered
platform to raise up to $50 million of securities from time to time. We
have engaged Bancroft Capital as an investment banking advisor to explore
additional financing opportunities, including equity and equity-linked
transactions with existing and new investors.
Executive Commentary
Dr. Halden Shane, CEO of TOMI Environmental Solutions commented, "As we enter 2026, our focus remains on growth and profitability. We plan to continue expanding our presence in the global pharmaceutical manufacturing sector by deepening OEM relationships and supporting customers with integrated, validated decontamination solutions, while partnering with new global contract development and manufacturing organizations whose market size is expanding from $136 billion in 2024 to approximately $191 billion by 2029.
"In addition, we see continued opportunities to penetrate the food safety market that has a value of $28 million in 2025 and is projected to grow to $31 million in 2026, which is being driven by the rise of foodborne illness prevention initiatives, stricter regulatory compliance, and increasing consumer demand for high-quality, contamination-free food.
"The global $5.29 billion medical device sterilization market is at our fingertips. Additionally, two very exciting new markets for our future is the biofuel market, which seems to be very favorable for renewables as we focus on domestic energy security, as there are new renewable fuel standards finalized just recently by the EPA, and protecting the world's pollinators, the honeybees, by leveraging both regulatory developments and growing customer interest in non-toxic, residue-free disinfection technologies. Across all markets, we remain focused on building on our leadership position, improving operational efficiency, and advancing TOMI in a manner that supports long-term value creation."
Looking Ahead
-- The Company enters the first quarter of 2026 with strong operational
momentum, expanding recurring sales, and a growing customer base across
regulated and emerging markets. We are just in the process of closing the
first quarter of 2026, beating first quarter 2025 revenue. The pipeline
that we have is the strongest we've ever had. Our entire opportunity book
for integration projects remains at $16 million and the entire SteraMist
iHP opportunity book is currently at $20 million.
The company is strategically positioned to capitalize on global trends in clean manufacturing, AI-enabled automation, and biosecurity, with a focus on delivering sustainable long-term growth and shareholder value.
The Company is executing a focused strategy to:
-- Expand recurring service contracts with key customers and explore new
product lines and/or service offerings to generate a steady income stream
-- Drive year on year recurring revenue growth by increasing SteraMist
solution sales
-- Continue to grow our presence internationally utilizing targeted
marketing campaigns and referral business
-- Pursue additional government and institutional partnerships
-- Strengthen balance sheet flexibility through disciplined financial
management
-- Strengthen corporate team to support growth
Conference Call Information
TOMI will hold a conference call to discuss Full Year 2025 results at 4:30 p.m. ET today, March 31, 2026.
To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time and provide participant access code 903042, or request the "TOMI Environmental Solutions Full Year earnings call." International callers please dial (973) 528-0011. To access the live webcast or view the press release, please visit the Investor Relations section of the TOMI website or register at the following link:
https://www.webcaster5.com/Webcast/Page/2262/53808.
A replay of the teleconference will be available until Tuesday, April 7, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code: 53808. A replay of the webcast will be available for at least 90 days on the company's website, starting approximately one hour after the completion of the call.
TOMI(TM) Environmental Solutions, Inc.: Innovating for a safer world(R)
TOMI(TM) Environmental Solutions, Inc. (NASDAQ: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(R) (BIT(TM)) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BIT(TM) solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP(TM)). Represented by the SteraMist(R) brand of products, iHP(TM) produces a germ-killing aerosol that works like a visual non-caustic gas.
TOMI products 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. TOMI products and services have also been used in single-family homes and multi-unit residences.
TOMI develops 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 https://www.steramist.com or contact us at info@tomimist.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, our strategies to grow revenue and expand business development, our expectation with respect to the remainder of 2026, including schedule of delivery, realization of revenue from backlog and potential demands; our ability to generate lead and referral for sales, the expectation to capture new markets, our ability to improve financial performance and the statements under the section entitled "Looking Ahead". Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our ability to acquire new customers and expands sales; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.
The following represents our consolidated balance sheets and statement of operations from our recently filed Form 10-K:
TOMI ENVIRONMENTAL SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
As of December 31,
Current assets: 2025 2024
----------- -----------
Cash and cash equivalents $ 87,775 $ 664,879
Accounts receivable, net 689,153 1,881,138
Inventories, net 2,926,427 3,578,202
Vendor deposits 161,597 35,895
Prepaid expenses 322,114 332,999
Total current assets 4,187,066 6,493,113
----------- -----------
Property and equipment, net 614,311 875,449
Other assets:
Intangible assets, net 1,351,164 1,250,574
Operating lease -- right of use asset 322,089 399,254
Other assets 559,671 675,348
Total other assets 2,232,924 2,325,176
-----------
Total assets $ 7,034,301 $ 9,693,738
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,480,189 1,924,379
Accrued expenses and other current
liabilities 860,703 455,675
Deferred revenue 424,032 211,724
Sale of future receipts, net of
discount of $113,191 254,234 -
Current portion of long-term
operating lease 143,672 129,132
Total current liabilities 3,162,830 2,720,910
----------- -----------
Long-term liabilities:
Long-term operating lease, net of
current portion 370,591 513,395
Convertible notes payable, net of
discount of $222,624 and $239,506 at
December 31, 2025 and December 31,
2024, respectively 2,912,376 2,360,494
Total long-term liabilities 3,282,967 2,873,889
----------- -----------
Total liabilities 6,445,797 5,594,799
----------- -----------
Commitments and contingencies - -
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 December 31, 2025 and December 31,
2024, respectively 638 638
Cumulative convertible Series B
preferred stock; $1,000 stated value;
7.5% cumulative dividend; 4,000 shares
authorized; none issued and
outstanding at December 31, 2025 and
December 31, 2024, respectively - -
Common stock; par value $0.01 per
share, 250,000,000 shares authorized;
20,277,205 and 20,015,205 shares
issued and outstanding at December
31, 2025 and December 31, 2024,
respectively 202,772 200,152
Additional paid-in capital 58,437,080 58,201,140
Accumulated deficit (58,051,986) (54,302,991)
Total shareholders' equity 588,504 4,098,939
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