TOMI Environmental Solutions, Inc.

Good day, ladies and gentlemen, and welcome to the TOME Environmental Solutions First Quarter 2024 Financial Results Conference Call. Our host for today's call is John Nesbitt of IMS Investor Relations. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to your host. Mr. Nesbitt, you may begin.

conference call. On today's call is Tomi's Chief Executive Officer and Chairman of the Board, Dr. Holden Shane, Tomi's Chief Operating Officer, E.J. Shane, and Tomi's Chief Financial Officer, Nick Jennings. Dr. Shane will provide an overview of recent business highlights. E.J. will report on future plans. Nick will provide the financials, and all will be available for Q&A. A telephonic replay of today's call will be available through May 29, 2024, the details of which are included in the company's press release, dated May 15, 2024. A webcast replay will also be available at Tomi's website, www.steramist.com. Please note that information contained within this presentation is relevant only to the day of which it was recorded, May 15, 2024, 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 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, Tomei 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. Reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release date, May 15, 2024. I will now turn the call over to TOMI's Chairman and Chief Executive Officer, Dr. Halden Shane. Please go ahead.

Thank you, John. Good afternoon and thank you for joining the TOMI Environmental Earnings Call. Today we will provide an update on operations and financials for the first quarter of 2024. This call will be relatively short. for those that have joined in the past compared to our previous calls due to the fact that we just had a call 30 days ago, while also providing insight into key current endeavors of the company for the past month and immediate future. During the quarter, due to revenue recognition, we reported only 1.1 million in revenue. This was disappointing. and below where we expect it to be. That said, our revenue remains susceptible to timing of large orders as we scale. So it's important to note that our backlog, which reflects firm orders, was $900,000, much of which was closed during the quarter. So our total sales activity for the quarter, combining sales and backlog, was approximately $2 million, which is about 27 percent increase in sales over the first quarter of 2023. Also, we are encouraged by our sales pipeline across multiple end markets, giving our expanded base of distribution partners. So, the sales in the quarter does not fully capture the growing interest in our technology and the flow in sale inquiries and engagements over the past 30 days. It is our expectation that we will see sequential growth and reduced loss in quarter two and are currently laser focused on driving the business to profitability as soon as third quarter of this year. We received news by a US-based multinational pharmaceutical customer confirming that two of their CES systems that were installed in September of 2022 are qualified and scheduled to begin use in the fourth quarter of 2024. Once these systems are up and running, we expect annual solution revenue of approximately $250,000. As you know, solution sales are the blade in our razor, razor blade model, and this is a perfect example of the long-term evolution of our economic model. I guess patience is a virtue in the life science verticals, in fact, probably in all verticals. In addition to our commercial successes, we disclosed two groundbreaking studies showcasing the efficacy of our solution against foot and mouth disease virus, FMDV, and African swine flu virus, ASFV, reinforcing our pursuit of an additional EPA label. We received notification from the Department of Homeland Security that our Sturimus Technology has been included in their Science and Technology Decorate budget overview for the purchase of 16 Sturimus Environment Systems in the amount of approximately $2 million, where our Sturimus Technology will be used to support the decontamination of Plum Island Animal Disease Center. Moreover, our participation at Interfex 2024 in New York City provided the perfect platform to unveil our latest product development. EJ will go into the specifics of our participation and the innovation showcased during the event. Finally, during the quarter, we were invited to apply for a $3 million grant from the Department of Defense. to be used by the Army, Air Force, and Marines, focusing on mitigating ethylene oxide sterilization. In May of 2024, we submitted our proposal and application under the DoD program, and we will keep shareholders appraised. Now, I'd like to turn the call over to Nick Jennings for his final call to provide our quarter one financials. Nick has resigned due to personal health and family issues. He will be replaced by Joe Recepka. Joe has been our senior vice president of finance and our senior controller for our company for five years. You'll be able to welcome Joe during our next earning call. Nick plans to stay on as part-time basis as a consultant to assist with some of the finer aspects of filing Qs and Ks. Joe comes from a strong background in financial reporting in both public and private companies. including a long stint in an aviation company. We all wish Joe and Nick the best of luck in their new positions at TOMI. Now I'll turn the call over to Nick.