TOMI Environmental Solutions, Inc.

Good day, ladies and gentlemen, and welcome to the TOME Environmental Solutions, Inc. fourth quarter and year-end 2021 financial earnings. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, John Nesbitt from TOME Environmental Solutions. Sir, the floor is yours.

Thank you for joining us today for the TOME Environmental Solutions Investor Update conference call. On today's call, Tomi's CEO and Chairman of the Board, Dr. Halden Shane, and Nick Jennings, Tomi's Chief Financial Officer. Dr. Shane will provide an overview of recent business highlights and discuss critical financial benchmarks for the most recent quarter before addressing any questions you may have. A telephone replay of today's call will be available through April 12, 2022, the details of which are included in the company's press release. on March 24, 2022. A webcast replay will also be available at Tomi's website, www.tomimist.com. Please note that information contained within this call is relevant only to the day which it was recorded, March 29, 2022, and you are therefore advised that time-sensitive information may no longer be accurate at the time of any replay. Certain written or oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements should be evaluated in light of important risk factors that could cause actual results to differ materially from our anticipated results. The information provided in this conference call is based upon the facts and circumstances known at this time. The company undertakes no obligation to update these forward-looking statements after the date of this call. Tomi will discuss certain non-GAAP financial measures during this call. The company uses non-GAAP measures because it believes they provide useful information about operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release. I will now turn the call over to Tomi's CEO and Chairman of the Board, Dr. Halton Sham. Please go ahead.

Thank you, John. Good afternoon and thank you all for joining the TOME Environmental Earnings Call as we discuss our Q4 and full year 2021 financial and operating results. 2021 was an outstanding year in many ways for the company and in time will show significant growth for our shareholders. As we reflect on the past three years of operating history, we acknowledge that 2020 was an outlier for the company due to the pandemic, resulting in rapid acceleration of revenue as we were able to quickly deploy our inventory to respond to immediate needs. As reported previously, the pandemic created short-term volatility in our year-over-year revenue. However, it also contributed to the expansion of our customer base, overall brand awareness in the disinfection, decontamination industry, but most importantly, it gave us the opportunity to listen to our long-term customers and develop the products that address their needs. At this time, it's difficult for the company to compare our 2021 results to 2020 results. Therefore, I will continue this call by comparing 2021 to 2019 in order to provide an accurate comparison and realistic numbers of growth. Even though COVID had continued to present new challenges, most recently with a significant spike in Omicron variant cases, which impacted our operations starting from December 21 through February 22. Nevertheless, our performance last year increased my confidence in our team's ability to successfully execute on the business. We worked very hard in 2021 to design and produce our sleek, sturdy mist backpack, which uses the same effective, innovative, IHP technology. Thus far, we received outstanding reviews by those that have purchased the device. In 2021, Tomy had approximately $384,000 in SteriPak sales. We experienced slight logistic delays in shipping of SteriPaks from one of our manufacturers in Australia to the U.S. However, the company is off to a great start in 2022. The growth AsteriMist uses has contributed to the growth in the solution revenue, thus continuing to prove our business model of repeat solution sales. In 2021, we added 65 new customers, and when you compare 2021 to 2019, BIT solution revenue grew by 48%. Our customer recurring solution orders increased 63%, and our overall revenue grew by 22%. Thus far, in the first quarter of 2022, as of last week, we received approximately 3 million in purchase orders. And some of these orders are for built-ins, which will be converted to revenue in a couple other quarters. But these orders combined with the growing pipeline and the remaining time we have in the first quarter makes us feel that we're very optimistic about the growth in 2022 and beyond. Ceramus products, particularly automatic disinfection products have created many avenues to revenue, both domestic and abroad. Although a portion of the revenue will not be listed on the next quarterly report due to installations later in the year, the current ongoing projects and sales pipeline suggest TOMI is in an optimal position for growth and expansion throughout the year. These Projects include reoccurring and new IHP corporate service document decontaminations and our purchases for four of our custom engineered systems, each of which are providing TOMI potential future revenue and industry connections. While TOMI strives to increase its market share and expand as a business, it is important to have a plan to ensure the proper people are put in positions for success. As we evaluate our staff to meet our growth goals, we continue to recruit and to evaluate qualified candidates to address our departmental needs. As we have seen, many new disinfection companies have entered the industry in the last two years, and it's important to differentiate ourselves and educate others on why Sterimist is quickly becoming the leading professional disinfection decontamination product throughout all industry verticals. Educating potential clients and current customers about Sterimist technology and its current and future products allows Tomi to stay competitive in an ever-changing global landscape. In relation to education, one thing Tomi has learned in the past year is the ongoing and increasing current desire for automatic mechanical disinfection decontamination. With customers requiring this automatic mechanical disinfection and numerous potential new clients inquiring about the need for mechanical disinfection, it is important for TOMI to take advantage of this new market. Ionized hydrogen peroxide, or IHP, is faster, less caustic, easy to maintain, and allows the end user to perform more tasks in their decontaminated space, resulting in a significant savings of dollars to our customers over our competitors. For the 2022 year and beyond, TOMI expects measurable growth in winning SteriMIST CES bids and the manufacturing and implementation of these fully automated mechanical decontamination systems. As a reminder for those that have been on the call for years, the first CES system was completed in 2016 for Dana-Farber Cancer Institute. As Dana-Farber was designing a new vivarium, they had the opportunity to integrate several new technologies to advance overall efficiency, quality, and design. Such technology was the use of our IHP decontamination. TOMI continues to invest in expanding the technical and R&D team to prepare for future of the business as long that these long-term permanent solutions facilitates our returning to the facilities commencing late in 2021. As it is known, the utilization of Sterimist products by premier companies like Dana-Farber Cancer, Merck & Company, Pfizer, Precious Copy AG, Memorial Sloan Catering Cancer Center, and Thermo Fisher Scientific provide confidence to potential buyers that Sterimist is equipped to meet the varying needs of individual facilities and undergo and pass the stringent validation requirements of each area requiring superior decontamination. As reported in August of last year, 2021, and completed at the end of last year, TOMI received an order from a global pharmaceutical partner in Europe for a six applicator permanent decontamination system. We are currently working with many of the locations from that global pharmaceutical company, including Brazil, Mexico, Germany, and Canada, in the implementation and use of SteriMIST as their standard decontamination solution. In addition, Tomi has since won four additional projects with other companies regarding the CES and anticipates many more in future quarters and years ahead. For 2022, our aggregated CES sales orders are approximately 1.68 million. These wins include an experimental research arm of a large cancer center in the East Coast, a multinational pharmaceutical company who locally has chosen Sturimist in two of their areas requiring superior decontamination and a renowned institute that focuses on immunology and infectious disease. These are all great wins for IHP and demonstrate the increasing acceptance and beneficial understanding of our IHP technology over the multi-billion dollar large global competitors. We are committed to being the driving force in providing enhanced superior disinfection and decontamination to a variety of industries in a variety of applications. This system is an automatic hands-free disinfection system that enables instant ease of use with no manual requirements, partnering with multiple manufacturers and programmers has created an economy of scale developing a profitable solution to the market. TOME, in conjunction with its new manufacturer onboarded in 2021, Arm, began production of the innovative Transport CES and Select Plus units. The Transport CES is primarily designed for emergency service vehicles including paramedics and ambulances, and can provide consistent, elite disinfection without the need to ever remove or reinstall the product from a space. Due to the partnering with experts of Siemens software, Arm can provide insight on producing intelligent SteriMIST systems while maintaining cost-effective fabrication, enabling future success and innovative system design. Although the CES and similar products have seen an increase in interest, SteriMIS's newer product, the SteriPak, has been a popular choice for mobile system solutions. The SteriPak has a battery-operated option, making it the most affordable unit, yet as it is not limited to the constraints of needing a wired connection. SteriPak's increase in disinfection mobility and ability to work without a cord plugged in has been popular with many service providers and commercial clients. Because of this unique ability, many current Tomi Service Network, TSN providers have added the SteriPak to their disinfection toolbox. Tomi recently launched a new TSN logo, a new member website, and a membership portal to better support our partners. The portal or app is available on both the Apple App Store and Google Play and is available to both our service network members and our domestic and international manufacturing sales representatives and distributors. The portal allows access to materials, media, case studies, protocols, alerts, podcasts, and ease of ordering products. Now I am going to turn the call over to our CFO, Nick Jennings, who will provide you some current financial highlights. Nick.