Company: TOMZ
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001654954-25-005288
Chunk: 29

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 29
---
 Securities and Exchange Commission (the “SEC”) on April 14, 2025, as amended (the “Annual Report”) under the heading “Risk Factors.” The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law. 

Unless otherwise stated, all information presented herein is based on the Company’s fiscal calendar, and references to years, quarters, months or periods refer to the Company’s fiscal years ended in December and the associated quarters, months and periods of those fiscal years. Each of the terms the “Company” and “TOMI” as used herein refers collectively to TOMI Environmental Solutions, Inc. unless otherwise stated. 

The following MD&A should be read in conjunction with the Annual Report filed with the SEC and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q. 

Quarterly Highlights 

Business Update 

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.  

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.

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.

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