Company: TOMZ
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001654954-25-005288
Chunk: 30

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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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.  

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. 

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.    

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.

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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.

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