Company: TOMZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001654954-25-009631
Chunk: 63

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 63
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, 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.

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.

With the successful completion of each project, our iHP technology is rapidly gaining popularity as the preferred decontamination solution for pharmaceutical and biotech companies. Further, as we continue to install our technology to these projects, the product line evolves into a comprehensive turnkey solution.

In March 2025, we announced a significant contract to install a SteraMist iHP Custom Engineered System (CES) at a leading university in Rhode Island, valued at approximately $450,000. This new client was secured through our distributor, ARES Distribution, and underscores TOMI’s competitive advantage, having successfully outperformed key hydrogen peroxide competitors.

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.

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.

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.,