TOMI Environmental Solutions, Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
TOMZ$2.15-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001654954-25-005288
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001654954-25-009631
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 172 previous paragraphs and 123 current paragraphs.
65 unchanged; 33 reworded; 25 added; 71 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 17 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Business and Financial Update
Current report
Recognized revenue for the three months ended June 30, 2025, was $1,031,000, down 66% from $3,013,000 in the three months ended June 30, 2024. This was primarily driven by customers deferring capital expenditure projects due to the uncertain economic environment with the impact of announced and implemented tariffs on their supply chain and long term planning. This was not a factor in the second quarter of 2024, which had higher sales in mobile equipment of approximately $1.0 million and our Custom Engineered Systems or CES of approximately $0.5 million.
Current report
Service-based revenue for the three months ended June 30, 2025 and 2024, was $378,000 and $285,000 respectively, representing an increase of $93,000 or 33%. Service-based revenue for the six months ended June 30, 2025 and 2024, was $955,000 and $656,000 respectively, representing an increase of $299,000 or 46%. The increase in service revenue was due to increased demand from current and new life sciences customers, expansion of services in additional industries being served by our products, and more stringent regulated procedures, resulting in quotes up 35% year over year, leading to expectations of continuing higher growth in the second half of the year.
Current report
As of June 30, 2025, our sales order backlog totaled approximately** **$1.4 million. As of August 7, 2025, the combined total of recognized revenue, deferred revenue, and sales order backlog was approximately $4.6 million, with active projects on schedule for delivery in 2025. In addition, we are negotiating approximately $2 million in new custom and integrated contracts, with bids expected to close prior to year-end.
Current report
Our iHP Corporate Service division, primarily utilized by our Life Science pharma customers, is a seasonal business dependent on customer shutdowns. This year, we are experiencing higher levels of demand for our Service Revenue. Our pipeline and the number of quotes for Service have increased approximately 35% year on year in both the Life Science division and now additionally in the Food Safety divisions have kicked in with increased demands, which will continue to underpin our future revenue growth.
Current report
During the second quarter of 2025, our operating expenses increased by $77,000, or 4%, compared to the second quarter of 2024. The increase was primarily due to higher professional fees offset by reduced selling expenses when compared to the same prior year period.
Current report
We are also witnessing an increase in opportunities from our distributors. Ares Distribution on the East Coast of the United States, Avantor Sciences in the U.S., and agriculture sectors are acquiring new clients that could significantly impact the industry. Additionally, our long-term, well-established international partners in Germany, the Netherlands, and Italy have strong pipelines in place pending our final EU and UK registration approvals.
Current report
On June 12, 2025, we announced that SteraMist was honored with the prestigious 2025 “Disinfection and Decontamination Products Company of the Year” award.
Current report
On June 16, 2025, we announced the advancement of our new product line, the SteraMist Integration System with the Standalone or SIS-SA making its debut as the first system installed with a leading CDMO.
Current report
On June 23, 2025, we announced the demonstration of SteraMist efficacy in combating honeybee colony collapse.
Current report
Total revenue for the three months ended June 30, 2025 and 2024, was $1,031,000 and $3,013,000, respectively, representing a decrease of $1,982,000 or 66% compared to the same prior year period. Revenues for the six months ended June 30, 2025 and 2024, were $2,608,000 and $4,127,000, representing a decrease of $1,519,000 or 37% when compared to the same prior year period. The decrease in sales was attributable to delayed capital investment by customers due to economic uncertainty caused by announced and impending tariffs impacting their supply chain.
Current report
SteraMist Product-based revenues for the three months ended June 30, 2025 and 2024, were $653,000 and $2,728,000, representing a decrease of $2,075,000 or 76% when compared to the same prior year period. For the six months ended June 30, 2025 and 2024, our product-based revenue was $1,653,000 and $3,471,000, respectively, representing a decrease of $1,818,000, or 52% compared to the same prior year period. The lower product revenue was attributable to delayed capital investment by customers, as a result of impending tariffs causing economic uncertainty in their supply chain.
Current report
Our service-based revenue for the three months ended June 30, 2025 and 2024, was $378,000 and $285,000, respectively, representing an increase of $93,000 or 33%. For the six months ended June 30, 2025 and 2024, our service-based revenue was $955,000 and $656,000, representing an increase of $299,000 or 46% when compared to the same prior period in 2024. The increase in service revenue was due to increased demand from customers.
Current report
Our domestic revenue for the three months ended June 30, 2025 and 2024 was $822,000 and $2,621,000, respectively, a decrease of $1,799,000 or 69%, when compared to the same prior year period. For the six months ended June 30, 2025 and 2024, our domestic revenue was $2,014,000 and $3,283,000, representing a decrease of $1,269,000 or 39% when compared to the same prior period in 2024. The lower product revenue was attributable to delayed capital investment by customers, as a result of impending tariffs causing economic uncertainty.
Current report
Internationally, our revenue for the three months ended June 30, 2025 and 2024, was $209,000 and $392,000, respectively, representing a decrease of $183,000 or 47% when compared to the same prior year period. For the six months ended June 30, 2025 and 2024, our international revenue was $594,000 and $844,000, representing a decrease of $250,000 or 30% when compared to the same prior period in 2024. The lower product revenue was attributable to delayed capital investment by customers, as a result of impending tariffs causing economic uncertainty.
Current report
Cost of Sales & Gross Profit
Current report
Cost of sales was $354,000 and $1,159,000 for the three months ended June 30, 2025 and 2024, respectively, a decrease of $805,000 or 69%, compared to the prior year. Our gross profit as a percentage of sales was 66% compared to 62% in the same prior period, respectively.
Current report
Cost of sales was $979,000 and $1,602,000 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $623,000, or 39%, compared to the prior year. Our gross profit as a percentage of sales was 62% compared to 61% in the same prior period, respectively.
Current report
Research and development expenses for the three months ended June 30, 2025 were $84,000, as compared to $62,000 for the three months ended June 30, 2024, representing an increase of approximately $22,000 or 35%. The increase in research and development expenses is due to additional costs incurred to maintain the Company’s patent and trademark portfolio in the current year period.
Current report
Research and development expenses for the six months ended June 30, 2025 were $129,000, as compared to $130,000 for the six months ended June 30, 2024, representing a decrease of approximately $1,000 or 1%.
Current report
Consulting fees were $63,000 and $23,000 for the three months ended June 30, 2025 and 2024, respectively, representing an increase of $40,000, in the current period. Consulting fees were $166,000 and $137,000 for the six months ended June 30, 2025 and 2024, respectively, representing an increase of $29,000, or 21%, in the current period. The increase in consulting fees is due to the hiring of additional consultants in the current year period.
Current report
General and administrative expenses were $1,169,000 and $1,121,000 for the three months ended June 30, 2025 and 2024, respectively, an increase of $48,000 or 4% in the current period. The increase was primarily attributable to an increase in credit loss expense offset by a decrease in various G&A accounts and equity compensation due to cost-cutting initiatives which were implemented during the current year.
Current report
General and administrative expenses were $2,194,000 and $2,271,000 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $77,000, or 3% in the current period. The decrease was primarily attributable to a decrease in salaries, various G&A accounts, and equity compensation offset by an increase in credit loss expense.
Current report
Cash used in operations for the six months ended June 30, 2025 and 2024 was $463,000 and $1,558,000, respectively. The decrease was primarily attributable to management action on working capital with a focus on accounts receivable and inventory.
Current report
We continue to implement measures to improve financial results and cash flows, including optimizing our product mix, expanding recurring solution sales, and managing overhead. Management expects these actions to support our liquidity needs through 2025.
Removed paragraphs (71)
Previous report
Business Update
Previous report
The first quarter 2025 delivered improved financial results as we grew quarter-over-quarter revenue by 42% and continue to see positive trends in the market with demand for our product lines and recurring solution sales. The increase in revenue, consistent gross profit and lower operating expenses all contributed to improved financial results for the first quarter of 2025, when compared to the same prior year period.
Previous report
Revenue for the three months ended March 31, 2025 and 2024 was $1,577,000 and $1,114,000 respectively, an increase of $463,000 or 42% when compared to the first quarter of the prior year. The higher revenue was attributable to increased demand for our SteraMist BIT solution, mobile, handheld point and spray product lines, the SteraMist Integrated System (SIS) product offering, scope adjustments to align with client needs and project dynamics on currently installed Custom Engineered Systems (CES’s) among deliverables to new projects, and diversified iHP service sales.
Previous report
Our first quarter 2025 product-based revenue grew by 35% when compared to the same period primarily due to improved recurring SteraMist BIT solution sales as well as increased demand for our mobile and CES equipment.
Previous report
Service-based revenue for the three months ended March 31, 2025 and 2024, was $577,000 and $371,000 respectively, representing an increase of $206,000 or 56%. The increase in service revenue was due to increased demand for iHP services as well as expanded services offered by the company.
Previous report
Domestic revenue for the first quarter of 2025 was $1,192,000, which represents 80% growth when compared to the same prior year period. The increase in domestic revenue increased due to higher demand for our solution, mobile equipment, CES and iHP service sales.
Previous report
During the first quarter of 2025, our operating expenses declined by $191,000, or 10%, compared to the first quarter of 2024. The decline was primarily due to lower selling and general and administrative expenses, which declined 15% and 11%, respectively, when compared to the same prior year period.
Previous report
It is important to clarify that the revenue recognition and timing of completion do not directly correlate with the progress of our projects. In 2024, we actively worked on and supported (7) different custom projects, many of which have been previously reported on. We are currently designing and manufacturing two (2) additional CES projects for approximately $910,000 in sales. Additionally, we are pleased to announce that we have secured contracts for three (3) more SIS offerings this year, totaling approximately $575,000 in sales. As these customers complete their internal evaluations and activate these iHP automated systems, we expect a boost in our BIT Solution sales, further enhancing our strategic initiatives and business strategies..
Previous report
Overview
Previous report
We are a global leader in bacteria decontamination and infectious disease control, offering environmentally friendly solutions for indoor air and surface disinfection and decontamination. Our flagship product, SteraMist, uses our patented and registered Binary Ionization Technology (“BIT”) to deliver a low-percentage (7.8%) hydrogen peroxide-based fog or mist to affect all indoor environments and surface areas.
Previous report
Developed under a grant from the United States Defense Advanced Research Projects Agency (“DARPA”), SteraMist generates ionized Hydrogen Peroxide (“iHP”) using cold plasma science. BIT transforms a sole active ingredient hydrogen peroxide solution into iHP through a high voltage atmospheric cold plasma arc, producing submicron to 3-micron hydroxyl radical particles that effectively treat surfaces and environments with the same velocity and characteristics of a gas. Our innovative and novel process ensures eradication of pathogens with a 6-log (99.9999%) and greater kill rate, effectively leaving no harmful by-products lingering in the treated area. SteraMist’s innovative methodology, inspired from atmospheric chemistry, not only guarantees effectiveness but also maintains a commitment to environmental sustainability by ensuring the only by-product from the process is oxygen and humidity, a complete package of benefits unmatched in its industry.
Previous report
We attribute our success to the collaborative efforts of Titan Defense and DARPA who uncovered a superior technology that mimics nature’s cleansing mechanism, bringing this natural phenomenon indoors and providing us with a competitive edge in the healthcare disinfection, life sciences decontamination, and food safety sanitization markets.
Previous report
The Science Behind the Technology
Previous report
Introducing a revolutionary approach to disinfection and decontamination, our technology offers a streamlined and effective solution. By harnessing the power of atmospheric chemistry, our process converts 7.8% hydrogen peroxide into a plasma-generated hydroxyl radical, achieving a 6-log and greater kill of pathogens leaving only oxygen and humidity as by-products. It is a simple yet effective solution that sets a new standard for global cleaning disinfection decontamination practices.
Previous report
BIT technology was initially developed in response to weaponized anthrax spore attacks, and detailed testing performed by DARPA demonstrated the success of the technology in neutralizing chemical warfare agents. BIT, a TOMI patented process aerosolizes and activates a low concentration hydrogen peroxide solution, producing a fine aqueous mist (0.3-3 um in diameter) that contains a high concentration of hydroxyl radicals (“.OH”). The .OH damages pathogenic and resistant organisms (such as bacteria, bacteria spores, viruses, mold spores, other fungi, and yeast) via oxidation of proteins, carbohydrates, and lipids and rendering the building blocks of nature’s amino acids, DNA and RNA inactive – leading to complete cellular disruption.
Previous report
The unique alteration of the chemistry occurs only once BIT solution passes through the atmospheric cold plasma arc, which causes the breaking of the double bond of a hydrogen peroxide molecule and results in an .OH hydroxyl radical known as iHP. This patented process allows these hydroxyl radicals to exist in high concentrations without rapidly recombining and losing reactivity, while seeking all surfaces within the proximity of the resulting mist or fog.
Previous report
TOMI has and continues to adapt this innovative technology into an everyday solution for use by multiple industries. Under the Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”), we are mandated to register our disinfectants with the Environmental Protection Agency (“EPA”) and specific state regulatory bodies. SteraMist BIT was EPA-registered (#90150-2) in June 2015 as a hospital-healthcare and broad-spectrum surface disinfectant for misting/fogging applications. We achieved a cutting-edge claim on the EPA label and was coined as the first equipment + solution combination hospital-healthcare disinfectant on the market and maintain the claim as the only EPA Registered Solution + Equipment combination that provides the unique technology of hydrogen peroxide ionization.
Previous report
Today our EPA registered BIT solution is manufactured at an EPA-registered solution blender and our product performance is supported by Good Laboratory Practice (“GLP”) efficacy data which includes mold control and air/surface remediation with claims to combat Staphylococcus, Pseudomonas, MRSA, Salmonella, H1N1, Clostridium difficile spores, and Norovirus. In March 2020, our EPA label was updated to include claims against Emerging Viral Pathogens, meeting criteria for both Enveloped and Large Non-enveloped viruses. In 2021, SteraMist BIT 0.35% hydrogen peroxide received its EPA registration (#90150-3), and on June 2, 2022, SteraMist was added to its seventh EPA’s List, List Q for combating rare or novel viruses like Monkeypox virus and SARS-CoV-2 variants causing COVID-19.
Previous report
TOMI continues to build its portfolio of feasibility studies with renowned and trusted partners. In 2023, the U.S. Department of Defense’s BSAT Biorisk Program Office and the Department of Homeland Security’s Science and Technology Directorate’s Plum Island Animal Disease Center published a report demonstrating that iHP is an effective tool for decontamination of biological toxoids and dangerous pathogens that may disrupt our world. We maintain registrations in all 50 states, Washington D.C., Canada, and approximately 40 other countries. These endorsements signify our commitment to safeguarding our world against any potential threats.
Previous report
Industries & Market Segments
Previous report
SteraMist products are designed to address a wide spectrum of industries using iHP. Our operations consist of four main divisions based on our current target industries: Life Sciences, Hospital-HealthCare, Food Safety, and Commercial. Launched in sequential order as listed to either strategically address the needs and/or ensure compliance with the specific regulations governing each industry segment.
Previous report
Life Sciences
Previous report
SteraMist iHP is designed to be tailored to provide a complete solution to address the regulatory inspections of disinfecting/decontaminating and Installation Qualification (IQ)-Operational Qualification (OQ)–Performance Qualification (PQ) validation processes within the life sciences industry.
Previous report
The life sciences sector demands rigorous decontamination procedures to ensure the integrity and safety of pharmaceutical products, medical devices, and research environments. With the evolving landscape of the pharmaceutical market, there is an increasing demand for fully automated decontamination products that offer quick turnaround times to minimize downtime and expedite production cycles.
Previous report
The life sciences industry was among the first to embrace the Company’s innovative decontamination solutions, recognizing the limitations of traditional methods and effects on progress. Our current portfolio of life science customers, including Fortune 100 companies, has been able to overcome the constraints imposed by outdated practices, paving the way for enhanced efficiency, safety, and productivity in their operations. Their early adoption of our SteraMist iHP lays a solid foundation for our future expansion. By demonstrating the effectiveness and value in a highly regulated and demanding sector, we establish credibility and trust that can facilitate broader adoption across other facilities, companies, and even industries.
Previous report
The insights gained from working closely with life sciences companies also inform our product development and service offerings, enabling us to better meet the evolving needs of markets. In today’s pharmaceutical market, characterized by rapid innovation, stringent regulatory requirements, and global competition-efficiency and speed are paramount. Pharmaceutical companies, including Contract Development and Manufacturing Organizations (“CDMO”), are under pressure to streamline their operations while maintaining high standards of quality and compliance.
Previous report
According to industry statistics, the global pharmaceutical market is projected to grow steadily, with emerging markets playing an increasingly significant role in driving growth. As their operations expand globally, there is a growing need for decontamination solutions that can deliver consistent fast results across the dynamic and ever-changing landscape of manufacturing and production facilities and research laboratories.
Previous report
By offering fully automated products and services tailored to the unique requirements of pharmaceutical manufacturers and CDMOs, TOMI aims to support their efforts in maintaining the highest standards of quality, safety, and efficiency on a global scale.
Previous report
Food Safety
Previous report
Every day there are news articles around the world pertaining to the contamination of food supply. Unsafe food containing harmful bacteria, viruses, parasites, or chemical substances causes more than 200 diseases. It also creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. With the global population explosion, severe worldwide avian flu pandemics resulting in the unnecessary culling of bird flocks, unusually high number of accidents resulting in the destruction of dozens of storages, packing and processing food plants, in the U.S. alone, we anticipate an increase in the demand for a mechanical way to sanitize the food supply. TOMI, in cooperation with the USDA, demonstrated that our technology offers a consistent, quick, and effective solution.
Previous report
Sanitation procedures must be implemented regularly and effectively to maintain cleanliness and prevent cross-contamination throughout the food processing chain. This includes proper cleaning and sanitizing of food preparation areas, storage facilities, transportation vehicles, and equipment used in food production. New challenges to food safety will continue to emerge, largely due to changes in the environment, new and emergent bacteria, toxins, and antimicrobial resistance. Food Safety presents an opportunity for significant growth for TOMI with continued product research and compliance testing.
Previous report
Compliance with food safety regulations is essential for food businesses to protect public health, uphold consumer trust, and meet legal requirements. Regulatory agencies such as the United States Food and Drug Administration (“FDA”) and the European Food Safety Authority, as well as the Canadian Safe Food for Canadians Act and Safe Food, establish and enforce sanitation standards to ensure the safety and quality of the food supply. Failure to comply with sanitation regulations can result in fines, product recalls, legal actions, and damage to the reputation of food businesses. Therefore, adherence to sanitation practices is paramount in the food industry to mitigate risks and maintain food safety standards.
Previous report
We have made significant strides in boosting brand awareness within the food safety industry through targeted promotion and marketing initiatives. Leveraging a similar strategy to what proved successful in the Life Sciences sector, we focused on building a customer base through referrals and feasibility studies, gradually expanding our reach. By fostering relationships with key supporters of our technology and remaining patient in our approach, we have finally laid a foundation and expect to continue to expand and grow our presence in this critical market segment.
Previous report
Commercial*
Previous report
In line with adopting a proactive approach through our service providers, it’s imperative for the entire commercial world to follow suit. Proactive disinfection practices not only ensure the health and safety of employees, customers, and visitors but also safeguard business continuity and reputation. Our Commercial division includes, but is not limited to, use sites such as aviation, airports, police and fire, prisons, manufacturing companies, automobile, gymnasiums, cruise ships, shipping ports, preschool education, primary and secondary schools, colleges including dormitories, all modes of public and private transportation, regulatory consulting agencies, retail, housing and recreation, and of course emergency preparedness for counties and cities use of SteraMist throughout such communities.
Previous report
SteraMist disinfection helps prevent the spread of harmful pathogens, including bacteria and viruses, reducing the risk of illnesses and infections among individuals. This is particularly crucial in shared spaces such as offices, retail stores, and restaurants where people gather regularly. A healthy and safe work environment promotes employee well-being and productivity. By reducing absenteeism due to illness and creating a comfortable workspace, disinfection measures contribute to a more efficient and effective workforce. For businesses in the service industry, such as hotels, restaurants, and retail stores, providing a clean and hygienic environment is essential for delivering a positive customer experience. Cleanliness influences customer perceptions and can impact loyalty and repeat business. Disinfection helps mitigate the risk of liability claims associated with poor health and safety practices. Implementing proactive disinfection measures can minimize the potential for legal and financial repercussions resulting from health-related incidents.
Previous report
TOMI, in conjunction with its partners, collaborators, and industry associations, is proactively educating the community on the importance of preventive disinfection through verbal explanation and visual demonstrations of the impact of maintaining a clean environment. We engage in targeted social media campaigns, offer training programs and workshops on best practices, and share case studies of real-life examples highlighting the long-term benefits in promoting health and safety for a successful business.
Previous report
By further implementing these strategies and our reach, we can effectively convey the importance of proactive disinfection and inspire action among businesses and individuals to prioritize cleanliness and hygiene in commercial settings.
Previous report
The Company is committed to further expanding its marketing, advertising, and educational campaigns aimed at its customer base and driving adoption of our SteraMist iHP product line across all our industries: Life Sciences, Hospital-Healthcare, TOMI Service Network, Food Safety, and Commercial. We will continue to innovate and develop tailored products to meet the specific needs of each, ensuring seamless implementation and optimal performance. Our dedicated team of technicians and representatives will continue to provide comprehensive training, maintenance, and servicing of capital equipment worldwide, supporting customers in maximizing the benefits of our patented technology. Additionally, TOMI will continue to offer protocol development and implementation services for SteraMist iHP, recognizing its critical role in various settings, particularly in pandemic preparedness scenarios.
Previous report
Hospital-Healthcare
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Reworded paragraphs (33)
Previous wording
Our total recognized revenue and backlog for the three months ended March 31, 2025 amounted to $2,802,000, consisting of approximately $1,577,000 in recognized revenue and a sales backlog of approximately $1,225,000 at the end of March 2025.
Current wording
Our total recognized and deferred revenue for the three months ended June 30, 2025 amounted to $1,750,350, consisting of approximately $1,031,000 in recognized revenue in the quarter and deferred revenue of approximately $719,235 at the end of June 2025.
Previous wording
Our gross profit as a percentage of sales for the three months ended March 31, 2025 and 2024, was 60.4% and 60.2%, respectively. The improved gross profit margins were attributable to our product mix in sales and the increased demand for our BIT solution and mobile equipment.
Current wording
Our gross profit as a percentage of sales for the three months ended June 30, 2025 and 2024, was 66% and 62%, respectively. The improved gross profit margins were attributable to our product mix in sales including higher sales of solution and service offerings in the three months ended June 30, 2025 compared to the same period last year.
Previous wording
We also announced in March the deployment of its SteraMist iHP technology at the NASA Johnson Space Center, marking the Company’s expansion into the aerospace sector. The deployment marked a significant advancement for SteraMist iHP technology, showcasing its potential for broader applications within the aerospace sector and beyond. This strategic partnership aligns with the Company’s ongoing SteraMistX campaign, which focuses on aerospace, military, and exploration fields utilizing iHP decontamination to elevate biosecurity biosafety standards.
Current wording
We also announced in March the deployment of our SteraMist iHP technology at the NASA Johnson Space Center, marking the Company’s expansion into the aerospace sector. The deployment marked a significant advancement for SteraMist iHP technology, showcasing its potential for broader applications within the aerospace sector and beyond. This strategic partnership aligns with the Company’s ongoing SteraMistX campaign, which focuses on aerospace, military, and exploration fields utilizing iHP decontamination to elevate biosecurity biosafety standards. We are currently collaborating with the space center on a potential publication for a case study.
Previous wording
In March 2025, we announced an OEM partnership with Pharma Biotech System Components LLC/Pharma Biotech System Components Ltd (PBSC), a premier manufacturer specializing in high containment, material decontamination, and cleanroom solutions. This collaboration enhances TOMI's SteraMist Integrated System (SIS) product launched in the second half of last year. Through this OEM agreement, TOMI will now offer pass-through hatches and chambers integrated with iHP, specifically designed for optimized decontamination cycles.
Current wording
In March 2025, we announced an OEM partnership with Pharma Biotech System Components LLC/Pharma Biotech System Components Ltd (PBSC), a premier manufacturer specializing in high containment, material decontamination, and cleanroom solutions. This collaboration enhances TOMI’s SteraMist Integrated System (SIS) product launched in the second half of last year. Through this OEM agreement, TOMI will now offer pass-through hatches and chambers integrated with iHP, specifically designed for optimized decontamination cycles. Our first chamber collaboration is set to be delivered in the fourth quarter of 2025.
Previous wording
In evaluating sales related performance, management analyzes our revenue recognized for GAAP purposes which is presented in our quarterly and annual statement of operations as well as our sales orders we receive from customers during those same accounting periods. We define a “sales order” as a document we generate for our internal use in processing a customer order. Our sales orders essentially translate the format of the customer purchase orders we receive from our customers into the format used by us. We also evaluate our “customer sales backlog” which is defined as pending sales orders where revenue has not yet been recognized. Management believes analyzing the sales order and backlog metrics are useful in measuring our overall sales and business development performance as it gauges the overall volume of sales and business development activities.
Current wording
In evaluating sales related performance, management analyzes our revenue recognized for GAAP purposes which is presented in our quarterly and annual statement of operations as well as our sales orders we receive from customers during those same accounting periods. We define a “sales order” as a document we generate for our internal use in processing a customer order. Our sales orders essentially translate the format of the customer purchase orders we receive from our customers into the format used by us. We also evaluate our “customer sales backlog” which is defined as pending sales orders where revenue has not yet been recognized. Management believes analyzing the sales order and backlog metrics are useful in measuring our overall sales and business development performance as it gauges the overall volume of sales and business development activities. We also disclosed expected amount of potential sales under contract in current negotiation with customers, and such amount may be subject to risks and uncertainties as negotiation may not result in any order or enforceable contract.
Previous wording
We believe that we possess the best technologies in the world in the disinfection and decontamination space. The COVID-19 pandemic along with the needs of the pharmaceutical and vivarium space has provided us with the opportunity and experience to implement a clear strategy to develop and manufacture additional products to add to our portfolio. In addition, we continue to move our BIT technology as a standard in disinfection and decontamination globally. This should lead to increased market share, profitability, and capability strength.
Current wording
We believe that we possess the best technologies in the world in the disinfection and decontamination space. The COVID-19 pandemic along with the needs of the pharmaceutical and vivarium space has provided us with the opportunity and experience to implement a clear strategy to develop and manufacture additional products to add to our portfolio. In addition, we continue to move our BIT technology as a standard in disinfection and decontamination globally. This should lead to increased market share, profitability, and capability strength, as is now evidenced by increasing demand for our services from the Food industries
Previous wording
Our products are an environmentally friendly solution and our processes address the concerns of sustainability. Customers are requesting and discussing the positive results of our product and the environmentally friendly results compared to the caustic and environmentally unfriendly results of many other disinfectants.
Current wording
Our products are an environmentally friendly solution, and our processes address the concern of sustainability. Customers are requesting and discussing the positive results of our product and the environmentally friendly results compared to the caustic and environmentally damaging results of many other disinfectants.
Previous wording
Many industries within our four key divisions prioritize ease of use and automation, seeking repeatable, validated, and thoroughly tested disinfection and decontamination solutions. TOMI dedicated significant resources to developing a variety of options tailored to meet diverse budgetary requirements in response to this market demand. Among our offerings, the Custom Engineered System (CES) remains a favored choice, bolstered by a strong pipeline. For customers with budget friendly alternatives, our Hybrid solutions and the newly introduced SteraMist Integrated System (SIS) have become preferred alternatives.
Current wording
Many industries within our four key divisions (Life Sciences. Hospital Healthcare, Food Safety and Commercial), prioritize ease of use and automation, seeking repeatable, validated, and thoroughly tested disinfection and decontamination solutions. TOMI dedicated significant resources to developing a variety of options tailored to meet diverse budgetary requirements in response to this market demand. Among our offerings, the Custom Engineered System (CES) remains a favored choice, bolstered by a strong pipeline. For customers with budget-friendly alternatives, our Hybrid solutions and the newly introduced SteraMist Integrated System (SIS) have become preferred alternatives. As of the date of this report, our open opportunities for these three product offerings total approximately $15 million, of which $7 million are designated as high-priority. High-priority opportunities are those with which we are actively engaged through ongoing discussions on specifications, submitted formal proposals, or pursuits via established contractor relationships.
Previous wording
On March 25, 2025, we announced an OEM partnership with PBSC, a premier manufacturer specializing in high containment, material decontamination, and cleanroom solution.
Current wording
On March 25, 2025, we announced an OEM partnership with PBSC, a premier manufacturer specializing in high containment, material decontamination, and cleanroom solutions.
Previous wording
Our portfolio includes more than 25 Utility or Design Patents worldwide which expire at various dates through the year 2038 for both method and system claims on SteraMist® BIT™, as well as design of devices. We continue to pursue further claims to additional capabilities in on-going United States and worldwide patent applications. We have obtained five related United States utility patents, giving us protection of our technology until the year 2038. We have most recently obtained patent protection for our backpack decontamination units and mobile carts in the United States. We have obtained utility patents for our technologies in diverse countries such as Brazil, Japan, Korea, Israel, Australia, Taiwan, Canada, Mexico, Singapore, New Zealand, Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Sweden and in the UK, and continue to pursue protections all over the world, including China and Europe.
Current wording
Our portfolio includes more than 25 Utility or Design Patents worldwide which expire at various dates through the year 2038 for both method and system claims on SteraMist® BIT™, as well as design of devices. We continue to pursue further claims to additional capabilities in on-going United States and worldwide patent applications. We have obtained five related United States utility patents, giving us protection of our technology until the year 2038. We have most recently obtained patent protection for our backpack decontamination units and mobile carts in the United States. We recently filed for further patent protection in the United States for our applicator technology. We have also recently obtained protection for our decontamination technology methods in Singapore, and we will be extending our scope of protection from Singapore into Cambodia and Laos in the near future. We have also recently obtained further protections for our technology using an ionized hydrogen peroxide mist in Korea. We have obtained utility patents for our technologies in diverse countries such as Brazil, Japan, Korea, Israel, Australia, Taiwan, Canada, Mexico, Singapore, New Zealand, Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Sweden and in the UK, and continue to pursue protections all over the world, including China and Europe.
Previous wording
We have submitted utility patent applications in multiple jurisdictions and countries, including Europe, China, Brazil, Korea and Australia for further additional applications of SteraMist BIT, and a related application has already been determined novel and inventive in Taiwan, Japan, Israel, New Zealand, Australia and Singapore. We have recently filed new patent pending applications on novel uses and enhancements of our technology in the United States. We have been awarded a design patent on our surface-mounted applicator device in the United States, China, Japan, Taiwan, and Korea. We have filed and have been granted or have pending acceptance on 32 separate design patents for our: Decontamination Chamber(s), Decontamination Applicator, Decontamination Cart, Applicator, and Surface Mounted Applicator 90-Degree Device. These patents are published around the world, including but not limited to the United States, China, Hong Kong, Europe, United Kingdom, Singapore, Taiwan, Vietnam, Canada, South Korea, and Japan. We are also pursuing IP protection for further applications of our SteraMist BIT in diverse fields in multiple jurisdictions, such as food decontamination in the US and, in installed systems for the application of iHP for the protection of buildings post outbreak or after a biological attack in the US, China, Europe and Japan. With worldwide attention on the etiology of SARs CoV2 coming from a lab leak, attention on the prevention and control of a leak or mishap should be on the mind of all the biological labs managers around the world. The fact that iHP and our BIT platform can be incorporated in new or existing buildings to create an “immune building” should assist in further lab applications of SteraMist in the biosecurity industry in the future. Our current patents with claims to systems already serve to provide protection for our technology in this area and our on-going pending applications will further enhance the scope of our intellectual property. Initial positive search reports for our filed improvement applicator designs in cell biology may be followed by national stage applications in many countries.
Current wording
We have submitted utility patent applications in multiple jurisdictions and countries, including Europe, China, Brazil, Korea and Australia for further additional applications of SteraMist BIT, and a related application has already been determined novel and inventive in Taiwan, Korea, Japan, Israel, New Zealand, Australia, Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Sweden and in the UK and Singapore. We have recently filed new patent pending applications on novel uses and enhancements of our technology in the United States, including enhanced mechanisms for our applications, as well as new forms of deployment for our technology. We have been awarded a design patent on our surface-mounted applicator device in the United States, China, Japan, Taiwan, and Korea. We have filed and have been granted or have pending acceptance on 32 separate design patents for our: Decontamination Chamber(s), Decontamination Applicator, Decontamination Cart, Applicator, and Surface Mounted Applicator 90-Degree Device. These patents are published around the world, including but not limited to the United States, China, Hong Kong, Europe, United Kingdom, Singapore, Taiwan, Vietnam, Canada, South Korea, and Japan. We are also pursuing IP protection for further applications of our SteraMist BIT in diverse fields in multiple jurisdictions, such as food decontamination in the US and, in installed systems for the application of iHP for the protection of buildings post outbreak or after a biological attack in the US, China, Europe and Japan. With worldwide attention on the etiology of SARs CoV2 coming from a lab leak, attention on the prevention and control of a leak or mishap should be on the mind of all the biological labs managers around the world. The fact that iHP and our BIT platform can be incorporated in new or existing buildings to create an “immune building” should assist in further lab applications of SteraMist in the biosecurity industry in the future. Our current patents with claims to systems already serve to provide protection for our technology in this area and our on-going pending applications will further enhance the scope of our intellectual property. Initial positive search reports for our filed improvement applicator designs in cell biology may be followed by national stage applications in many countries, such as Australia, Korea, Europe and China.
Previous wording
During the three months ended March 31, 2025, our debt and liquidity positions were affected by the following:
Current wording
During the six months ended June 30, 2025, our debt and liquidity positions were affected by the following:
Previous wording
Results of Operations for the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024:
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024:
Previous wording
Cost of sales was $625,000 and $443,000 for the three months ended March 31, 2025 and 2024, respectively, an increase of $182,000 or 41%, compared to the prior year. The increase in cost of sales was primarily due to higher sales. Our gross profit as a percentage of sales for the three months ended March 31, 2025 was 60.4% compared to 60.2% in the same prior period, respectively. The higher gross profit is attributable to the product mix in sales and growth in our SteraMist BIT Solution revenues in the current period.
Current wording
The higher gross profit is attributable to the product mix in sales and growth in our SteraMist BIT Solution revenues in the current period.
Previous wording
Professional fees were $219,000 and $198,000 for the three months ended March 31, 2025 and 2024, respectively, an increase of approximately $21,000 or 11%, in the current year period. The increase in professional fees was primarily due to accrued filing fees associated with our employee retention tax refunds incurred in the current year period.
Current wording
Professional fees were $184,000 and $84,000 for the three months ended June 30, 2025 and 2024, respectively, an increase of approximately $100,000 in the current year period. Professional fees were $403,000 and $282,000 for the six months ended June 30, 2025 and 2024, respectively, an increase of approximately $121,000 in the current year period. The increase is due to higher filing fees associated with our employee retention tax refunds, additional audit fees with regard to our annual 10K filing, and legal/recruitment fees incurred for the hiring of our new CFO.
Previous wording
The decrease in depreciation expense is due to a lower amount of fixed assets being depreciated in the current year period when compared to the same prior year periods.
Current wording
Depreciation and amortization were $69,000 and $77,000 for the three months ended June 30, 2025 and 2024, respectively, representing a decrease of $8,000 or 10%. Depreciation and amortization were $138,000 and $154,000 for the six months ended June 30, 2025 and 2024, respectively, representing a decrease of $16,000, or 10%. The decrease in depreciation expense is due to a lower amount of fixed assets being depreciated in the current year period when compared to the same prior year periods.
Previous wording
Selling expenses for the three months ended March 31, 2025 were approximately $246,000, as compared to $289,000 for the quarter ended March 31, 2024, representing a decrease of approximately $43,000 or 15%. The decline in selling expenses is due to lower advertising costs incurred in the current year period.
Current wording
Selling expenses for the three months ended June 30, 2025 were $240,000, as compared to $366,000 for the quarter ended June 30, 2024, representing a decrease of approximately $126,000 or 34%. Selling expenses for the six months ended June 30, 2025 were $487,000, as compared to $655,000 for the six months ended June 30, 2024, representing a decrease of approximately $168,000 or 26%. The decline in selling expenses is due to a reduced marketing spend in the current year period.
Previous wording
Other income was approximately $535,000 and $0 for the three months ended March 31, 2025 and 2024. Other income consisted of employee retention tax credits received and accrued for in the current year period.
Current wording
Other income was approximately $535,000 and $0 for the six months ended June 30, 2025, and 2024. Other income consisted of employee retention tax credits received in the current year period.
Previous wording
Interest income was approximately $83,000 and $10,000 for the three months ended March 31, 2025 and 2024. The increase was due to interest income in connection with the employee retention tax credits received and accrued for in the current year period.
Current wording
Interest income was approximately $1,000 and $2,000 for the three months ended June 30, 2025, and 2024, respectively. Interest income was approximately $84,000 and $12,000 for the six months ended June 30, 2025, and 2024. The increase for the six months was due to interest income in connection with the employee retention tax credits received in the current year period.
Previous wording
Interest expense was $119,000 and $94,000 for the three months ended March 31, 2025 and 2024, respectively. The increase in interest expense was due to issuance of additional convertible notes in the current year period.
Current wording
Interest expense was $106,000 and $93,000 for the three months ended June 30, 2025, and 2024, respectively. Interest expense was $225,000 and $187,000 for the six months ended June 30, 2025, and 2024, respectively. The increase in interest expense was due to the issuance of additional convertible notes in the current year periods.
Previous wording
Provision for income tax was $0 for the three months ended March 31, 2025 and 2024.
Current wording
Provision for income tax was $0 for the three and six months ended June 30, 2025 and 2024.
Previous wording
As of March 31, 2025, we had cash and cash equivalents of approximately $674,000 and working capital of $3,767,000. Our principal capital requirements are to fund operations, invest in research and development and capital equipment, and the continued costs of compliance with public company reporting requirements. We have historically funded our operations through funds generated through operations and debt and equity financings. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and may include operating and financial covenants that would restrict our operations. We cannot be certain that any financing will be available in the amounts we need or on terms acceptable to us, if at all.
Current wording
As of June 30, 2025, we had cash and cash equivalents of approximately $569,000 and working capital of $2,810,000. Our principal capital requirements are to fund operations, invest in research and development and capital equipment, and the continued costs of compliance with public company reporting requirements. We have historically funded our operations through funds generated through operations and debt and equity financing. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and may include operating and financial covenants that would restrict our operations. We cannot be certain that any financing will be available in the amounts we need or on terms acceptable to us, if at all.
Previous wording
For the three months ended March 31, 2025 and 2024, we incurred losses from operations of ($754,000) and ($1,226,000), respectively. Cash used in operations for the three months ended March 31, 2025 and 2024 was ($276,000) and ($1,178,000), respectively.
Current wording
For the six months ended June 30, 2025 and 2024, we incurred losses from operations of ($1,887,000) and ($1,105,000), respectively. Cash used in operations for the six months ended June 30, 2025 and 2024 was ($463,000) and ($1,558,000), respectively.
Previous wording
A breakdown of our statement of cash flows for the three months ended March 31, 2025 and 2024 is provided below:
Current wording
A breakdown of our statement of cash flows for the six months ended June 30, 2025 and 2024 is provided below:
Previous wording
Cash used in investing activities for the three months ended March 31, 2025 and 2024 was $0 and $95,000, respectively. The decrease was attributable due to the timing of property and equipment purchased in the prior year period.
Current wording
Cash used in investing activities for the six months ended June 30, 2025 and 2024 was $67,000 and $99,000, respectively. The decrease was attributable to patent and trademark costs incurred in the current year period compared to property and equipment purchased in the prior year period.
Previous wording
Cash provided by financing activities for three months ended March 31, 2025 and 2024 was $285,000 and $28,000, respectively. The increase is attributable to the proceeds from the issuance of convertible notes in the current year period.
Current wording
Cash provided by financing activities for the six months ended June 30, 2025 and 2024 was $435,000 and $28,000, respectively. The increase is attributable to the proceeds from the issuance of convertible notes in the current year period.
Previous wording
For the three months ended March 31, 2025 and 2024, our net loss was approximately $256,000 and $1,310,000, respectively, and the cash used in operations was approximately $276,000 and $1,178,000, respectively. As of March 31, 2025, we had approximately $674,000 of cash and cash equivalents and an accumulated deficit of $54.6 million. These factors raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements in this Form 10-Q are issued. While we cannot predict our liquidity position beyond the next twelve months, we are expecting our business opportunities and customer base to continue to expand and grow, which may provide us with additional liquidity to fund our operations. We continue to consider and pursue various financing transactions such as equity and debt offerings, and we expect to raise additional capital through the sale of convertible debt securities as described in more detail below. However, there can be no assurance that we will be successful in raising that additional capital or that such capital, if available, will be on terms that are acceptable to the Company, as our ability to raise capital may be affected by various factors, including general market conditions, volatility of our stock price, investor interests and expectations, and our financial performance.
Current wording
For the six months ended June 30, 2025 and 2024, our net loss was approximately $1,493,000 and $1,280,000, respectively, and the cash used in operations was approximately $463,000 and $1,558,000, respectively. As of June 30, 2025, we had approximately $569,000 of cash and cash equivalents and an accumulated deficit of $55.8 million. These factors raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements in this Form 10-Q are issued. While we cannot predict our liquidity position beyond the next twelve months, we are expecting our business opportunities and customer base to continue to expand and grow, which may provide us with additional liquidity to fund our operations. We continue to consider and pursue various financing transactions such as equity and debt offerings, and we expect to raise additional capital through the sale of convertible debt securities as described in more detail below. However, there can be no assurance that we will be successful in raising that additional capital or that such capital, if available, will be on terms that are acceptable to the Company, as our ability to raise capital may be affected by various factors, including general market conditions, volatility of our stock price, investor interests and expectations, and our financial performance.
Previous wording
In March and April of 2025, we entered into securities purchase agreements (the “ 2025 SPA”) with certain accredited investors (collectively, the “Investors”) pursuant to which the Company sold an aggregate of $385,000 of convertible promissory notes to Investors (the “Note”) in private placement transactions. The 2025 SPA allows us to offer and sell in multiple closings up to an aggregate principal amount of $3,000,000 of Notes. The Notes are due on the fifth anniversary of their issuance and bear interest at a rate of 12% per annum, payable in equal monthly installments. The Notes are convertible at any time into shares of the Company’s common stock, at the option of the holder at a conversion price of $1.25 per share, as adjusted, which shall not exceed $1.55 per share. In addition, the Company can require Investors to convert the Notes at the then current conversion price at any time after 90 days from the issue date if the Common Stock has a closing bid price of $1.55 per share or higher on the Nasdaq Capital Market for any twenty (20) days within a thirty (30) day period of consecutive trading days, or if a “fundamental change” occurs (as defined in the SPA). The Notes are unsecured and senior to other indebtedness of the Company subject to certain exceptions. The offer and sale of the Notes pursuant to the 2025 SPA is not registered under the Securities Act of 1933, as amended (the “Securities Act”), as it is exempt from registration pursuant to Section 4(a)(2) thereof and Rule 506(b) promulgated thereunder. We also entered into registration rights agreements with the Investors pursuant to which we agreed to register the resales of shares of common stock issuable upon conversion of the Notes.
Current wording
During the six months ended June 30, 2025, we entered into securities purchase agreements (the “2025 SPA”) (the “2025 SPA”) with certain accredited investors (collectively, the “Investors”) pursuant to which we sold an aggregate of $435,000 of convertible promissory notes to Investors (the “Note”) in private placement transactions. The 2025 SPA allows us to offer and sell in multiple closings up to an aggregate principal amount of $3,000,000 of Notes. The Notes are due on the fifth anniversary of their issuance and bear interest at a rate of 12% per annum, payable in equal monthly installments. The Notes are convertible at any time into shares of the Company’s common stock, at the option of the holder at a conversion price of $1.25 per share, as adjusted, which shall not exceed $1.55 per share. In addition, the Company can require Investors to convert the Notes at the then current conversion price at any time after 90 days from the issue date if the Common Stock has a closing bid price of $1.55 per share or higher on the Nasdaq Capital Market for any twenty (20) days within a thirty (30) day period of consecutive trading days, or if a “fundamental change” occurs (as defined in the SPA). The Notes are unsecured and senior to other indebtedness of the Company subject to certain exceptions. The offer and sale of the Notes pursuant to the 2025 SPA is not registered under the Securities Act of 1933, as amended (the “Securities Act”), as it is exempt from registration pursuant to Section 4(a)(2) thereof and Rule 506(b) promulgated thereunder. We also entered into registration rights agreements with the Investors pursuant to which we agreed to register the resales of shares of common stock issuable upon conversion of the Notes.
Previous wording
Product revenue includes sales from our standard and customized equipment, solution and accessories sold with our equipment. Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for those products.
Current wording
Product revenue includes sales from our standard and customized equipment, solutions and accessories sold with our equipment. Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for those products.
Previous wording
As of March 31, 2025, and December 31, 2024 we had contract balances and unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed in the amounts of $233,727 and $211,724, respectively.
Current wording
As of June 30, 2025, and December 31, 2024 we had contract balances and unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed in the amounts of $719,235 and $211,724, respectively.
Previous wording
Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company generally does not require collateral to support customer receivables. Management assesses the collectability of outstanding customer invoices, and maintains an allowance resulting from the expected non-collection of customer receivables. In estimating this reserve, management considers factors such as historical collection experience, customer creditworthiness, specific customer risk, and current and expected general economic conditions For those customers to whom we extend credit, in accordance with the Current Expected Credit Loss (CECL) model, we make a risk-based evaluation at the point of sale which is further reviewed on both an individual and collective (pool) basis during each reporting period based on ASC 326. We are required to estimate and report expected credit losses over the entire life of a financial asset, considering historical data, current conditions, and future forecasts, even if the risk of loss is remote.
Current wording
Accounts receivables are stated at the amount management expects to collect from outstanding balances. The Company generally does not require collateral to support customer receivables. Management assesses the collectability of outstanding customer invoices and maintains an allowance resulting from the expected non-collection of customer receivables. In estimating this reserve, management considers factors such as historical collection experience, customer creditworthiness, specific customer risk, and current and expected general economic conditions For those customers to whom we extend credit, in accordance with the Current Expected Credit Loss (CECL) model, we make a risk-based evaluation at the point of sale which is further reviewed on both an individual and collective (pool) basis during each reporting period based on ASC 326. We are required to estimate and report expected credit losses over the entire life of a financial asset, considering historical data, current conditions, and future forecasts, even if the risk of loss is remote.
Previous wording
We have implemented a policy of reserving for credit losses based on our best estimate of the amount of potential credit losses in existing accounts receivable. We periodically review our accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be at risk.
Current wording
We have implemented a policy of reserving credit losses based on our best estimate of the amount of potential credit losses in existing accounts receivable. We periodically review our accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be at risk.
Previous wording
We assess long-lived assets for potential impairments at the end of each year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. In evaluating long-lived assets for impairment, we measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If our long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. We base the calculations of the estimated fair value of our long-lived assets on the income approach. For the income approach, we use an internally developed discounted cash flow model that includes, among others, the following assumptions: projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. We had no long-lived asset impairment charges for the three months ended March 31, 2025 and 2024.
Current wording
We assess long-lived assets for potential impairments at the end of each year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. In evaluating long-lived assets for impairment, we measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If our long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. We base the calculations of the estimated fair value of our long-lived assets on the income approach. For the income approach, we use an internally developed discounted cash flow model that includes, among others, the following assumptions: projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. We had no long-lived asset impairment charges for the three and six months ended June 30, 2025 and 2024.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
We believe that we possess the best technologies in the world in the disinfection and decontamination space. The needs of the pharmaceutical and vivarium space, as well as experiences with global pandemics and other heath related emergencies, such as the COVID-19 pandemics, has provided us with the opportunity and expertise to implement a clear strategy to develop and manufacture additional products to enhance and improve our portfolio. In addition, we continue to market and commercialize our BIT technology as an industry standard in disinfection and decontamination globally, which we believe will lead to increased market share, profitability, and capability strength.
Previous report — wording carried elsewhere
Our products are an environmentally friendly solution, and our processes address the concerns of sustainability. Customers are requesting and discussing the positive results of our product and the environmentally friendly results compared to the caustic and environmentally unfriendly results of many other disinfectants.
Previous report — wording carried elsewhere
SteraMist has established a successful track record in fighting pandemics and outbreaks and implementing SteraMist for emergency preparedness is vital. The COVID-19 pandemic took the world by surprise, and history has shown that other pandemics and viruses are likely to follow. Using a proven and trusted disinfectant for emergency outbreaks and daily for preventative maintenance, such as SteraMist, can alleviate the threat of infections from spreading and could stop a possible outbreak.