TOMI Environmental Solutions, Inc.

Greetings. Welcome to the Tomi Environmental Solutions Incorporated second quarter 2023 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, John Nesbitt of IMS Investor Relations. You may begin.

Good afternoon, and thank you for joining us today for the Tomei Environmental Solutions Investor Update Conference Call. On today's call is Tomei's Chief Executive Officer and Chairman of the Board, Dr. Halden Shane, Tomei's Chief Operating Officer, E.J. Shane, and Tomei's Chief Financial Officer, Nick Jennings. Dr. Shane will provide an overview of recent business highlights, E.J. will report the company's growth and latest trends, and Nick will review the financial performance for the most recent quarter before we will address any questions you may have. The telephone replay of today's call will be available through August 28, 2023, the details of which are included in the company's press release, which was issued today. The webcast replay will also be available on Tomi's website, www.tomimist.com. Please note that information contained within this presentation is relevant only to the date which it was recorded, August 14, 2023, 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 TUME 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 then takes 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 operating performance that should be considered by investors in conjunction with the GAAP measures. Reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release dated August 14, 2023. I will now turn the call over to Tomi's Chairman and Chief Executive Officer, Dr. Halden Shane. Go ahead.

Thank you, John, and good afternoon, everybody. Thank you for joining and spending a portion of your summer with us this afternoon or evening or even morning, depending upon where you're located. The financial results for the second quarter are some of the best we've seen since 2020, as we made a small profit on EBITDA basis and broke even from the EPS perspective on our statement of operations. The improved results were driven by increased sales, strong gross profit, and prudent management of our operating expenses. We grew consolidated net revenue for the quarter of 2023 over the same quarter of 2022 by 90%, which proved a nice boost to our financial results for the second quarter. Our revenue for the six months ended June 30th, 2023, was up 16% over the same prior year period. During the second quarter, our serum as product revenue grew by 100 percent compared to the second quarter of last year, and our IHP service revenue was up 55 percent. On a sequential basis, our consolidated net revenue for the second quarter grew by 75 percent when measured against our reported revenue for the first quarter of 2023. The growth in revenue was largely attributable to strong growth in our product and service revenue, as well as our team's ability to execute and deliver two IHP Sturimus custom engineered systems, better known as CESs, in the second quarter. In the quarter, we realized a slight net loss of $89,000, which represents a 90% quarter-over-quarter improvement. Our loss from operations in the second quarter of 2023 improved by 93% compared to the reported operating loss incurred in the first quarter of 2023. Our earning per share for the second quarter of 2023 was zero per basis and diluted share, which represents a 4% loss per basic share improvement compared to the same prior year period. EBITDA and adjusted EBITDA for the three months ended June 30th, 2023, was approximately 2,000 compared to a loss of 780,000 reported in the same prior year period. Year to date, we have made significant progress expanding our domestic and international distribution partners. While we recognize that it will take time to onboard train, and support these new partners effectively. But we are increasingly selective in the partners we work with and firmly believe that expanding our sales capabilities through these partnerships will enable us to extend our market reach significantly. Thus far in 2023, we have added six new distributors throughout North America, Europe, and Africa. while in tandem adding new domestic independent manufacturing representatives. We recently entered into a distributor agreement with Aventor, a Fortune 500 company, and a leading supplier of mission-critical products and services. We expect a distributor agreement to expand our sales channels into the vital research, development, and production activities in the cleanroom space for biopharm healthcare, government, and advanced technologies, and applied material industries. To expand our presence in Europe, we added International Business Development, IBT, as a distributor in Italy. Our partnership with IBD originated during an Interfex conference earlier this year. During the event, IBT had the opportunity to acquaint themselves with SteriMIST and subsequently evaluated its efficacy at one of Tomi's existing customers in Italy. Currently, Tomi and IBD are in the early stages of collaborating with multiple manufacturers of clean room equipment for the potential of using our SteriMIST integration system, or SIS. During the second quarter, we also entered a contract with Vizient Incorporated. increasing our presence in the U.S. healthcare system. Vizient is the largest group purchasing organization, GPO, in the healthcare industry, supplying around 100 billion in annual member purchasing volume. Vizient serves approximately 97% of the nation's academic medical centers, more than 50% of the nation's acute care health system, and serves more than 20% of the nation's ambulatory market. This contract enables us to supply Sturimus systems to a wide range of healthcare providers, including academic medical centers, pediatric facilities, and community health providers through Vizient's nationwide network. We will be attending our first conference with Vizient later this year. We, of course, remained active in our marketing initiatives and attended and presented our Sturimus brand of products at nine different trade shows during the second quarter. At this point, I'd like to hand over the call to Tomi's COO, Alisa Shain, who will provide you with an overview of the company's upcoming plans and objectives for the rest of the year. Thank you. EJ?