TOMI Announces Letter to Shareholders from CEO Discussing Preliminary First Quarter Results, Growth Strategy and Share Registration

FREDERICK, Md., April 18, 2022 (GLOBE NEWSWIRE) — TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ: TOMZ), a global company specializing in disinfection and decontamination through the use of its first system Binary Ionization Technology (BIT) through its SteraMist product brand, released a letter from the company’s CEO, Dr. Halden Shane, to shareholders. The letter is included in full below:

LETTER TO SHAREHOLDERS

Dear shareholders,

I wanted to take this opportunity to provide some preliminary results for the first quarter ended March 31, 2022 as well as update you on the progress we are making in executing our longer-term growth strategy. Please note that certain preliminary financial information described herein has not been audited and is subject to adjustments based on the Company’s completion of quarter-end financial close processes.

The company ended the first quarter of 2022 with notable improvements over previous periods of 2021. We recorded positive cash flow from operations for the first time since the second quarter of 2020 and maintained our position of working capital. We expect first quarter sales to increase approximately 11% from what was reported in the first quarter of 2021 and 15% sequentially from the fourth quarter of 2021. During the first quarter of 2022, we have received approximately $3.5 million in orders, of which we expect approximately $3.2 million will be recognized as revenue in our current calendar year. This good start to the year bodes well for 2022.

A key driver of our long-term growth is the strengthening demand for our custom engineered systems (CES) from the life science and hospital sectors. We have secured several new orders for CES which we expect to install and achieve revenue in late 2022 and early 2023.

In order to meet this demand for our CES, we have enhanced our production capabilities with the addition of ARM Enertech Associates who can manufacture our CES at their facility in Pennsylvania. Additionally, our existing manufacturer Planet Innovation has expanded into California, providing easier access to our in-house technology team and reduced domestic shipping costs. These developments will reduce our overall costs and lead times. We continue to look to expand our team as we head into the second quarter and are optimistic that we will make key additions to our East and West Coast sales teams.

As previously reported in our Form 8-K, Nasdaq has notified the Company that it has not met the minimum requirement of $1.00 per share to continue to be listed on the Nasdaq Capital Market pursuant to Nasdaq listing rule 5550(a)(2) (the “Offer Price Requirement”). We do not believe that the current market price of our common shares accurately reflects the value of the Company based on our historical and anticipated financial performance.

The notification received has no immediate effect on the listing of the Company on Nasdaq. In accordance with Nasdaq rules, the Company has been granted an initial period of 6 months or approximately 180 calendar days, or until October 11, 2022 (the “Compliance Date”), to regain compliance with the requirement. offer price. If, at any time prior to the Compliance Date, the Closing Bid Price for the Common Shares is at least $1.00 for at least 10 consecutive Business Days, Staff will provide the Company with written confirmation of compliance. bid price requirement. If the Company fails to comply again with the Bid Price Requirement by the Compliance Date, the Company may be eligible for an additional compliance period of 180 calendar days. To qualify, the Company will be required to meet the continuous listing requirement for publicly held stock market value and all other initial listing standards for Nasdaq Capital Markets, except the offering price requirement, and will be required to provide written notice of its intention to make up the shortfall during the second 180 calendar day compliance period, by reverse stock split, if necessary.

If the Company does not again comply with the Offer Price Requirement on the Compliance Date and is not eligible for an additional compliance period at that time, Staff will notify the Company in writing that the Ordinary Shares will be subject to delisting. At that time, the company can appeal the staff disbarment decision to a Nasdaq Hearing Panel.

The Company intends to monitor the closing bid price of the Common Shares and may, if necessary, consider the options available to restore compliance with the bid price requirement.

A few shareholders have expressed concern about the recent registration of common shares subject to certain warrants. The registered company everything equity warrants on an equitable basis, including investor warrants and executive warrants. The registration of shares with warrants is a normal course transaction and management currently has no intention of selling any shares.

Respectfully yours,

Dr Halden Shane
Chief executive officer

TOMI™ Environmental Solutions, Inc.: Innovating for a Safer World®

TOMI™ Environmental Solutions, Inc. (NASDAQ:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacture, sale and licensing of its premier binary ionization technology® (BIT™). Invented under a Defense Grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BITuses a low percentage of hydrogen peroxide as the only active ingredient to produce an ionized hydrogen peroxide (iHP™) mist. Represented by the SteraMist®brand of products, iHP™ produces a germ-killing aerosol that functions as a non-caustic visual gas.

TOMI products are designed to serve a wide range of commercial structures including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single family homes and multi-unit residences.

TOMIdevelops training programs and application protocols for its customers and is a member in good standing of the American Biological Safety Association, the American Association of Tissue Banks, the Association for Professionals in Infection Control and Epidemiology, the Society for Healthcare Epidemiology of America, the America Seed Trade Association and the Restaurant Industry Association.

For more information, please visithttp://www.tomimist.com/or contact us at[email protected]

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to anticipated financial performance and results of operations, including earnings for the March 2022 quarter; expected growth in sales and market demand; intention to sell shares by management; CES product revenue opportunities and timing of revenue recognition; business growth strategies; planned manufacturing capacity; and the trading price of the common shares. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of the COVID-19 pandemic on our business and our customers; our ability to sustain and manage growth and generate sales; our reliance on one or a few products for the majority of revenue; general commercial and economic conditions; and other risks as described in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 that we have filed with the SEC and other periodic reports that we have filed with the SEC. The information provided in this document is based on the facts and circumstances known at the time. Other unknown or unpredictable factors or underlying assumptions that later prove to be incorrect could cause actual results to differ materially from those set forth in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date unless otherwise noted, and we undertake no obligation to update such information except as required by applicable law.

INVESTOR RELATIONS CONTACT:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

[email protected]


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