TOMI Environmental Solutions, Inc.

Greetings. Welcome to the TOMI Environmental Solutions Incorporated third 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 this conference, please press star zero on your telephone keypad. Please note that 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. 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 of before addressing any questions you may have. The telephone replay of today's call will be available through November 28th, 2023, the details of which are included in the company's press release dated November 14th. A webcast replay will also be available at Tomi's website, www.tomimist.com. Please note that information contained within this presentation is relevant only to the date of which it was recorded, November 14th, 2023, 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 and could cause actual results to differ materially from our anticipated results. The information provided in this conference call based upon the facts and circumstances known at this time. The company undertakes an 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 dated November 14th, 2023. I will now turn the call over to Tony's Chairman and Chief Executive Officer, Dr. Halvin Shen. Please go ahead.

Thank you, John, and good afternoon from the West Coast of the United States. Thank you all for joining to discuss some key achievements of our third quarter 2023 performance. During the third quarter of 2023, Our strategic focus on expanding our sales channels and business development persisted worldwide, along with collaborative efforts from key current and new customers. Simultaneously, we diversified our product line to accommodate to the evolving needs of our market segments, leveraging the advanced capabilities of our SteriMIST technology. Finally, our launch of our SteriMIST transport system and the SteriMIST integration system known as the SIS seems to be the answer to the automation requests that many industries are looking for to replace their old VHP decontamination technology. We are now sure SteriMIST is in the right place at the right time and EJ will discuss this in some detail shortly. Revenue declined during the quarter due to the timing of customer orders and the related revenue recognition. That said, our revenue is up 5 percent for the nine-month period, and we are optimistic about our high-margin business model and its ability to drive future sustained profitability as we scale the business. Subsequent to the close of the third quarter of 2023, we agreed to sell and issue convertible notes in a private placement in one or more closings up to an aggregate principal amount of $5 million. As of November 7th, 2023, we sold and issued an aggregate of $2,600,000 to a group of institutional and accredited investors. most of whom are new investors in the company's securities. The note contains no restrictive covenants or restrictions that may impose burdens or limitations on our operations. We intend to use the net proceeds from this offering for working capital, expansion of our existing Frederick facility, and other general corporate purposes, including expanding our sales channel through the addition of distributors, outside sales representatives, internal sales staff, and external consultants. Throughout this year, our strategic emphasis has been significantly geared towards the expansion of additional sales channels. Distinguishing itself from previous years, our approach has evolved to encompass not only domestic but also international partnerships with larger groups. This strategic shift in focus involves collaboration with prominent entities to enhance our distribution network and simplify our market presence. As we continue recruitment of additional independent sales representatives, we have also added consultants possessing key expertise in our targeted market segments. Thus far, in 2023, we have brought on eight distributors, expanding our presence worldwide. Our team has grown to include 11 independent manufacturing representatives, and we were recently onboarded by a GPO, group purchasing organization, Vizient, last week. This collaboration marks a significant milestone in our efforts to broaden our reach and strengthen our position in the healthcare market. Some of the notable additions in Q3 are as follows. We partnered with Colcom Incorporated to offer Sturimist IHP products as part of Colcom's life science and healthcare portfolio of products. With a combined 50 years of technical sales expertise, Colcom Incorporated joined forces with us under the leadership of Bridget Collins. Colcon Incorporated is a trusted supplier of high-quality clinical and laboratory equipment. Given its established customer base and extensive expertise in the decontamination industry, this partnership will be mutually advantageous. In August, we entered into a business development consulting agreement with DAR Incorporated, a company specializing in food safety and food processing spaces. We anticipate the agreement will better position us in providing education to the food safety markets through the education of the advantages of the Sturimus platform of products and expand our sales channels as well as our customer bases on the food safety markets. In September, we entered into a sales representative agreement with Universal Disinfection. to better facilitate growth in the European region in the commercial, aviation, and life science markets. The two partners of universal disinfection are the most knowledgeable about our technology in all of Central, Western Europe, and the Baltic states. Most recently, in November, we entered into an agreement with Patty Olinger, the founder of BEAMS, LLC, who specializes in public health preparedness. Patty is also a director of Frontline Foundation, dedicated to protecting American citizens from bioterror threats. In the past, she was Assistant Vice President of the Office of Research Administration and Executive Director of Environmental Health and Safety Office of Emory University Hospital System, and most recently, the Executive Director of Global Bio Risk Advisory Council, a division of ISSA. Patty will assist, strengthen, and expand the Tomi Sturimus Network and increase business development in the commercial markets. She brings over 20 years' experience establishing executive strategic vision and direction of large institutions and companies spanning multiple industries, including higher education, non-for-profit, healthcare, consultancy, hospitality, and pharmaceutical sectors. We continue to remain active in our marketing initiatives and attended and presented our Sterimus brand of products at six different trade shows during the second quarter alone. The expansion of our sales infrastructure in 2023 has been substantial and we will maintain a strong sense of optimism as we approach the conclusion of 2023. Looking ahead to 2024, we anticipate a significant acceleration in the momentum of our sales network. We continue to see positive signs with our SturyMist IHB service team, as we saw quarter-over-quarter revenue growth of 59% and year-over-year growth of 16% through September. As we announced in August, Pfizer-Rockymount engaged our IHP service to conduct emergency decontamination within their facility, which suffered substantial damage to the tornado. Pfizer-Rockymount has been a long-term, loyal client of Tomi, having commenced their utilization of SteriMIST IHP corporate service in 2014. Since then, Tomi has been performing decontamination services twice a year. during their facilities, routines, scheduled shutdowns, and called on as necessary throughout the years. During the third quarter, we expanded our portfolio of CES systems with the delivery of a three applicator CES system to Ragon Institute of MGH, MIT, and Harvard for implementation in their research and clinical lab located in Cambridge, Massachusetts. I would now like to turn the call over to Tomi's Chief Operating Officer, E.J. Shane, who will provide a comprehensive overview of the company's forthcoming initiatives with both new and exciting partners, insights into our product development endeavors, and the strategies in place to drive revenue growth. E.J.? E.J.