TOMI Environmental Solutions, Inc.

Welcome to the TOME Environmental Solutions, Inc. First Quarter 2022 Financial Results. I will now turn it over to Don Nesbitt of IMS Investor Relations. Don, you may begin.

Thank you for joining us today for the TOME Environmental Solutions Investor Update Conference Call. On today's call is TOME's Chief Executive Officer and Chairman of the Board, Dr. Halden Shane, and Nick Jennings, TOME's Chief Financial Officer. Dr. Shane will provide an overview of recent business highlights and Nick will review the financial performance for the most recent quarter before addressing any questions you may have. A telephone replay of today's call will be available through May 19th, details of which are included in the company's press release today. A webcast replay will also be available at Tomi's website, www.tomimiss.com. Please note that information contained within this call is relevant only to the day of which it was recorded, May 5th, 2022, and you are therefore advised that time-sensitive information may no longer be accurate at the time of any replay. Certain written and oral statements made by management of TOME 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 our 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. In addition, 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 the 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 Chairman and Chief Executive Officer, Dr. Halden Shane. Go ahead.

Thank you. Good afternoon, everyone. Thank you for joining the Tomi Environmental Earnings Call. Today, we will discuss Tomi's operating financial results for the first quarter of 2022. I am pleased to report that 2022 is seeing a rebound in our life science business coming out of the pandemic. We have started with some notable large wins and expect this year to end even stronger with increased sales, further expansion of brand recognition via multiple avenues, and new partners. As in every quarter, I'll mention some notable key customer wins and provide an update to studies and publications the company has endured this quarter. In the first quarter of 2022, we saw growth in sales and gross profit with a decrease in operating expenses. Sales grew approximately 11% in comparison to the first quarter of 2021. and 15% sequentially over the fourth quarter of 2021. This increase in sales is primarily driven by the increase in demand for our mobile equipment and IHP corporate service. While our IHP corporate service continues to be profitable, Tomi adapts to the demands of its customers in all industries. Therefore, we are manufacturing a variety of prototypes, and this versatility is leading to improvement in the marketplace with the demand for our custom engineered system, or as we call it, CES. It's increasing ahead of other product lines. Because of this increase in demand for a fully automated, full-room disinfection decontamination solution, TOMI received approximately 3.5 million in orders this quarter, and we expect this trend to set a precedent for future quarters this year and beyond. We project a portion of these orders to be recognized into revenue later this year. These additional orders for our CES come on the heels of our fourth quarter order and installation from Fresenus Copy Portugal's affiliate Labasil SA. Approximately $1.7 million that have been sold this quarter are for additional custom systems, and these purchases have with fixed milestones and installation dates. Two of these wins are from a Fortune 500 company, which is also a current customer, and the other is from a leading research facility focused on Immunology and Infectious Disease. As we announced earlier in the year, our new partnership with Om Intertech Associates, which is a U.S.-based engineering service and custom control panel manufacturer, will further support the manufacturing of our Sturimus product line. The partnership between TOMI and OM has also been positive for the manufacturing of our custom install winds and the pipeline of those opportunities we have outstanding proposals on. A current TOMI outstanding proposal for its CES may range anywhere from $100,000 to $1 million. And we have approximately $6 million in proposals being reviewed between current and new customers. TOMI was cash flow positive in the first quarter, which can be attributed to various customer deposits on such orders that we will convert into revenue later. The relationship with ARM has provided TOMI to be competitive in bidding for its fully automated disinfection decontamination system, Thus, we expect many more of these types of orders to close in the near future. Before our CFO, Nick Jennings, provides his report, here are some key accounts that closed in the quarter one that I feel are worth noting. Tomi assisted the decontamination efforts of On Demand Pharmaceuticals, an innovative technology company transforming how medicines are made by providing its Sturimist environmental systems for use at OnDemand's modular cleanroom. The pairing of the DARPA-funded medicine manufacture initiative with a DARPA-developed disinfection decontamination technology creates a powerful and unique partnership. A biomedical science company located in the heart of New York City purchased three modified environment systems for their hot cells and radioactive shielded nuclear radiation containment chambers. And in the first quarter of 2022, the TOMI team sold and onboarded seven new ServPro locations as TOMI Service Network or TSN providers. As I stated, I'll go into further detail. but now I'm going to turn the call over to our Chief Financial Officer, Nick Jennings, who will provide you some current financial highlights.