TOMI Environmental Solutions, Inc. Q2 FY2024 earnings call

• TOMI returned to profitability in Q2 2024 with revenue exceeding $3 million, a 170% sequential increase. Mobile equipment sales drove much of this growth, accounting for over 60% of revenue. • Partnered with EMAQ, which purchased over $1 million of equipment for SteraMist iHP service. • Delivered two custom integrations, expanded global footprint with new customers in Canada, Mexico, Philippines, and UAE. • Focused on cost reduction initiatives, optimized budget by redirecting resources from trade shows to effective lead generation. • iHP service revenue grew significantly, with almost $1 million in service revenue YTD. Partnered with EMAQ to expand West Coast iHP services. • Active custom installation orders in manufacturing, production, and validation service lines, with more projects expected. • SteraMist Integration System (SIS) launch, including the SteraBox gaining traction and the Standalone delivery system entering the market. • Launched SteraMist Pro Certified (SPC) program for global customer segments. • Expanding in food safety, healthcare, and commercial divisions, with TOMI Service Network integrated into commercial division. • Collaborations in food industry, including studies with major establishments to explore iHP applications.

Consolidated net revenue for the second quarter of 2024 was $3.013 million, an increase of approximately 9% compared to the prior year period. Mobile equipment sales accounted for over 60% of total revenue. BIT Solutions sales increased by approximately 171% over the first quarter. International sales saw a record-breaking performance in the second quarter. Gross profit was 61.5%, operating profit was $121,000 (an increase from a $89,000 loss in the prior year), and net profit was $30,000.

• YTD sales reached approximately $5.6 million, combining recognized/reported revenue, delivered orders for Q3, and open bookings. • Nearly matched 2023's total mobile equipment sales. • Four active custom installation orders underway, with more projects expected. • Optimistic about strong performance in the second half of 2024 and continued growth into 2025 and 2026.

• Forward-looking statements subject to risk factors that could cause actual results to differ materially from anticipated results. • Political factors affecting grant applications, e.g., not being selected for a DoD grant due to competition with VHP type people. • Potential challenges in fully penetrating certain markets like data centers due to hesitancy and need for testing.

Q: Unidentified Analyst asked about growth in BIT Solutions sales and model play A: Halden Shane mentioned the razor/razor blade model, with more equipment out leading to more utilization of the solution, which is high margin, contributing to better profitability as business scales Q: Unidentified Analyst asked about ethylene oxide market and DoD grant progress A: Halden Shane said they didn't make the DoD grant due to politics, but it's opening up avenues for private company use; E.J. Shane added they're working with Technimount in Canada on ambulance market penetration Q: Unidentified Analyst asked about accounts receivable and food safety recall with Boar's Head A: Joe Rzepka said receivables are mostly net 30 or net 60 and should be collected this quarter; E.J. Shane said they're on top of reaching out to Boar's Head regarding food safety