TOMI Environmental Solutions Inc (TOMZ) 2023 Q2 法說會逐字稿

Greetings. Welcome to the TOMI Environmental Solutions Incorporated second-quarter 2023 financial results conference call (Operator Instructions) Please note this conference is being recorded.

問候。歡迎參加 TOMI Environmental Solutions Incorporated 2023 年第二季財務業績電話會議（操作員說明） 請注意，本次會議正在錄音。

I will now turn the conference over to your host, John Nesbett of IMS Investor Relations. You may begin.

現在我將把會議交給主持人、IMS 投資者關係部門的約翰·內斯貝特 (John Nesbett)。你可以開始了。

Good afternoon, and thank you for joining us today for the TOMI Environmental Solutions investor update conference call. On today's call is TOMI's Chief Executive Officer and Chairman of the Board, Dr. Halden Shane; TOMI's Chief Operating Officer, EJ Shane; and TOMI's Chief Financial Officer, Nick Jennings.

下午好，感謝您今天參加我們的 TOMI Environmental Solutions 投資者更新電話會議。出席今天電話會議的是 TOMI 執行長兼董事會主席 Halden Shane 博士； TOMI 營運長 EJ Shane；以及 TOMI 的財務長 Nick Jennings。

Dr. Shane will provide an overview of recent business highlights, EJ will report the company's growth and latest trends, and Nick will review the financial performance for the most recent quarter before they will address any questions you may have. A telephone replay of today's call will be available through August 28, 2023, the details of which are included in the company's press release which was issued today. A webcast replay will also be available at TOMI's website, www.tomimist.com.

Shane 博士將概述最近的業務亮點，EJ 將報告該公司的成長和最新趨勢，Nick 將回顧最近一個季度的財務業績，然後再回答您可能提出的任何問題。今天的電話會議的電話重播將持續到 2023 年 8 月 28 日，詳細資訊包含在今天發布的公司新聞稿中。 TOMI 網站 www.tomimist.com 也將提供網路廣播重播。

Please note that information contained within this presentation is relevant only to the date of which it was recorded, August 14, 2023, and you are therefore advised that time-sensitive information may no longer be accurate at the time of any replay. Certain written and oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements should be evaluated in light of important risk factors that could cause actual results to differ materially from our anticipated results. The information provided in this conference call is based upon the facts and circumstances known at this time. The company undertakes no obligation to update these forward-looking statements after the date of this call.

請注意，本簡報中包含的資訊僅與錄製日期（2023 年 8 月 14 日）相關，因此建議您，時間敏感的資訊在任何重播時可能不再準確。 TOMI 管理層所做的某些書面和口頭聲明可能構成 1995 年《私人證券訴訟改革法案》中定義的前瞻性聲明。這些前瞻性聲明應根據可能導致實際結果產生重大差異的重要風險因素進行評估從我們的預期結果來看。本次電話會議中提供的資訊是基於目前已知的事實和情況。該公司不承擔在本次電話會議日期後更新這些前瞻性陳述的義務。

In addition, TOMI will discuss certain non-GAAP financial measures during this call. The company uses non-GAAP measures because it believes they provide useful information about operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release dated August 14, 2023.

此外，TOMI 也將在本次電話會議上討論某些非 GAAP 財務指標。該公司使用非公認會計準則衡量標準是因為它認為它們提供了有關經營業績的有用信息，投資者應將這些信息與公認會計準則衡量標準結合起來考慮。這些非 GAAP 指標與可比較 GAAP 指標的調整結果包含在 2023 年 8 月 14 日發布的收益報告中。

I will now turn the call over to TOMI's Chairman and Chief Executive Officer, Dr. Halden Shane. Go ahead.

我現在將把電話轉給 TOMI 董事長兼執行長 Halden Shane 博士。前進。

Thank you, John, and good afternoon, everybody. Thank you for joining and spending a portion of your summer with us this afternoon or evening, or even morning depending upon where you're located. The financial results for the second quarter are some of the best we've seen since 2020 as we made a small profit on an EBITDA basis and broke even from the EPS perspective on our statement of operations. The improved results were driven by increased sales, strong gross profit, and prudent management of our operating expenses. We grew consolidated net revenue for the quarter of 2023 over the same quarter of 2022 by 90%, which proved a nice boost to our financial results for the second quarter.

謝謝約翰，大家下午好。感謝您今天下午或晚上，甚至早上加入我們並與我們一起度過夏季的一部分，具體取決於您所在的位置。第二季的財務表現是我們自 2020 年以來最好的，因為我們在 EBITDA 基礎上實現了小額利潤，並且從我們的營運報表的每股盈餘角度來看實現了收支平衡。業績的改善得益於銷售額的增加、強勁的毛利以及對營運費用的審慎管理。我們 2023 年季度的綜合淨收入比 2022 年同期成長了 90%，這對我們第二季的財務表現起到了很好的推動作用。

Our revenue for the six months ended June 30, 2023, was up 16% over the same prior year period. During the second quarter, our SteraMist product revenue grew by 100% compared to the second quarter of last year, and our iHP Service revenue was up 55%. On a sequential basis, our consolidated net revenue for the second quarter grew by 75% when measured against our reported revenue for the first quarter of 2023. The growth in revenue was largely attributable to strong growth in our product and service revenue, as well as our team's ability to execute and deliver two iHP SteraMist Custom Engineered Systems, better known as CESes, in the second quarter.

截至 2023 年 6 月 30 日的六個月，我們的營收比去年同期成長了 16%。第二季度，我們的SteraMist產品營收比去年第二季成長了100%，我們的iHP服務收入成長了55%。與我們報告的 2023 年第一季收入相比，我們第二季度的綜合淨收入環比增長了 75%。收入的增長主要歸功於我們的產品和服務收入的強勁增長，以及我們的團隊有能力在第二季執行和交付兩個iHP SteraMist 客製化工程系統（更廣為人知的名稱為CES）。

In the quarter, we realized a slight net loss of $89,000, which represents a 90% quarter-over-quarter improvement. Our loss from operations in the second quarter of 2023 improved by 93%, compared to the reported operating loss incurred in the first quarter of 2023. Our earnings per share for the second quarter of 2023 was zero per basic and diluted share, which represents a $0.04 loss per basic share improvement compared to the same prior year period. EBITDA and adjusted EBITDA for the three months ended June 30, 2023, was approximately $2,000 compared to a loss of $780,000 reported in the same prior year period.

本季度，我們實現了 89,000 美元的輕微淨虧損，比上一季改善了 90%。與 2023 年第一季報告的營運虧損相比，我們 2023 年第二季的營運虧損改善了 93%。我們 2023 年第二季的基本每股盈餘和稀釋每股盈餘為零，這代表著與去年同期相比，每基本股改善損失0.04 美元。截至 2023 年 6 月 30 日止三個月的 EBITDA 和調整後 EBITDA 約為 2,000 美元，而去年同期報告的虧損為 78 萬美元。

Year to date, we have made significant progress expanding our domestic and international distribution partners. While we recognize that it will take time to onboard, train, and support these new partners effectively, but we are increasingly selective in the partners we work with and firmly believe that expanding our sales capabilities through these partnerships will enable us to extend our market reach significantly.

今年迄今為止，我們在擴大國內和國際分銷合作夥伴方面取得了重大進展。雖然我們認識到有效地入職、培訓和支持這些新合作夥伴需要時間，但我們對合作夥伴的選擇越來越嚴格，並堅信透過這些合作夥伴關係擴大我們的銷售能力將使我們能夠擴大我們的市場覆蓋範圍顯著地。

Thus far in 2023, we have added six new distributors throughout North America, Europe, and Africa, while, in tandem, adding new domestic independent manufacturing representatives. We recently ended into a distributor agreement with Avantor, a Fortune 500 company and a leading supplier of mission-critical products and services. We expect the distributor agreement to expand our sales channels into the vital research, development, and production activities in the clean room space for biopharma, healthcare, government, and advanced technologies and applied material industries.

截至 2023 年，我們已在北美、歐洲和非洲增加了 6 家新經銷商，同時也增加了新的國內獨立製造代表。我們最近與財富 500 強公司、關鍵任務產品和服務的領先供應商 Avantor 簽訂了經銷商協議。我們預計經銷商協議將把我們的銷售管道擴展到生物製藥、醫療保健、政府以及先進技術和應用材料行業無塵室空間的重要研究、開發和生產活動。

To expand our presence in Europe, we added International Business Development, IBD, as a distributor in Italy. Our partnership with IBD originated during an INTERPHEX conference earlier this year. During the event, IBD had the opportunity to acquaint themselves with SteraMist and subsequently evaluated its efficacy at one of TOMI's existing customers in Italy. Currently, TOMI and IBD are in the early stages of collaborating with multiple manufacturers of clean room equipment for the potential of using our SteraMist Integration System, or SIS.

為了擴大我們在歐洲的業務，我們增加了國際業務發展部 IBD 作為義大利的經銷商。我們與 IBD 的合作源自於今年稍早的 INTERPHEX 會議。活動期間，IBD 有機會熟悉了 SteraMist，並隨後對 TOMI 在義大利的現有客戶之一評估了其功效。目前，TOMI 和 IBD 正處於與多家無塵室設備製造商合作的早期階段，以探索使用我們的 SteraMist 整合系統 (SIS) 的潛力。

During the second quarter, we also entered a contract with Vizient Incorporated, increasing our presence in the US healthcare system. Vizient is the largest group purchasing organization, GPO, in the healthcare industry, supplying around $100 billion in annual member purchasing volume. Vizient serves approximately 97% of the nation's academic medical centers, more than 50% of the nation's acute care health system, and serves more than 20% of the nation's ambulatory market. This contract enables us to splice SteraMist systems to a wide range of healthcare providers, including academic medical centers, pediatric facilities, and community health providers, through Vizient's nationwide network. We will be intending our first conference with Vizient later this year. We, of course, remained active in our marketing initiatives and attended and presented our SteraMist brand of products at nine different trade shows during the second quarter.

在第二季度，我們還與 Vizient Incorporated 簽訂了合同，增加了我們在美國醫療保健系統中的影響力。 Vizient 是醫療保健行業最大的團體採購組織 GPO，每年提供約 1000 億美元的會員採購量。 Vizient 為全國約 97% 的學術醫療中心、全國 50% 以上的急診醫療系統提供服務，並為全國 20% 以上的門診市場提供服務。該合約使我們能夠透過 Vizient 的全國網路將 SteraMist 系統連接到廣泛的醫療保健提供者，包括學術醫療中心、兒科設施和社區保健提供者。我們計劃在今年稍後與 Vizient 舉行第一次會議。當然，我們仍然積極開展行銷活動，並在第二季的九個不同貿易展會上參加並展示了我們的 SteraMist 品牌產品。

At this point, I'd like to hand over the call to TOMI's COO, Elisa Shane, who will provide you with an overview of the company's upcoming plans and objectives for the rest of the year. Thank you. EJ?

現在，我想將電話轉交給 TOMI 的營運長 Elisa Shane，她將為您概述公司今年剩餘時間的計劃和目標。謝謝。埃傑？

Thank you, Dr. Shane, and good afternoon, everyone. I appreciate the opportunity to share TOMI's progress, growth trends, and upcoming developments on today's call. I will begin by providing updates on some matters discussed during our previous call. The collaboration with the German biotechnology company, which is set to lead to several orders for our CES, continues to be very active. Our long-term partner, Universal Disinfection, continues to foster this partnership directly with TOMI, in addition to their continued brand expansion of iHP SteraMist across areas in Europe. We anticipate the closure of some large orders within this calendar year for a few of these opportunities.

謝謝謝恩博士，大家下午好。我很高興有機會在今天的電話會議上分享 TOMI 的進展、成長趨勢和未來的發展。首先，我將提供我們上次電話會議中討論的一些事項的最新情況。與德國生物技術公司的合作將繼續非常活躍，這將為我們的 CES 帶來多個訂單。我們的長期合作夥伴 Universal Disinfection 除了在歐洲地區持續擴展 iHP SteraMist 品牌外，還繼續直接與 TOMI 建立合作關係。我們預計今年內將完成一些大訂單，以獲得其中一些機會。

Consistent with our previous communications, it is once again worth noting that the scheduling for our larger orders, especially the custom units, remains flexible and in response to customer timelines. However, it's crucial to emphasize that our pipeline remains robust and very promising.

與我們先前的溝通一致，再次值得注意的是，我們的大訂單（尤其是客製化單位）的安排仍然靈活，並回應客戶的時間表。然而，必須強調的是，我們的產品線仍然強勁且前景廣闊。

As anticipated during our last call, we concluded the second quarter by successfully installing additional systems, bringing our count to 14 installed SteraMist Custom Engineered Systems. Our recently installed projects remain to undergo qualification and are set to be operational by the close of the first quarter of 2024. Naturally, this timeline is contingent upon the operational readiness of the end user's production facilities, leading to variable revenues from BIT solutions and associated services moving forward.

正如我們在上次電話會議中所預期的那樣，我們在第二季結束時成功安裝了更多系統，使已安裝的 SteraMist 客製化工程系統數量達到 14 個。我們最近安裝的專案仍在接受資格認證，並將於2024 年第一季末投入營運。當然，這一時間表取決於最終用戶生產設施的營運準備情況，從而導致BIT 解決方案和相關產品的收入存在波動。服務不斷前進。

Our collaboration with a prominent indoor farming solutions enterprise continues, as we actively engage in their comprehensive qualification procedures, which now includes partnering up with the USDA. Upon securing final approval, we intend to publicly reveal this partner, an organization dedicated to extending SteraMist utilization across all upcoming facilities. Notably, this indoor farming entity has initiated construction on new structures and allocated resources for the expansion of SteraMist applications. This development stands as a pivotal occasion for TOMI to demonstrate the versatility and efficacy of iHP within the realm of food safety. The potential for growth through this partnership remains substantial.

我們與一家著名的室內農業解決方案企業的合作仍在繼續，我們積極參與他們的全面資格認證程序，其中現在包括與美國農業部的合作。在獲得最終批准後，我們打算公開透露該合作夥伴，該組織致力於在所有即將建造的設施中擴展 SteraMist 的利用率。值得注意的是，該室內農業實體已開始建造新結構並分配資源以擴展 SteraMist 應用。這項發展是 TOMI 展示 iHP 在食品安全領域的多功能性和有效性的關鍵時刻。透過這種夥伴關係實現的成長潛力仍然巨大。

Since our last earnings call, our ongoing dialogues with potential clients interested in custom-engineered systems has expanded by 36 to 42. Our confidence in the prospects of our fully automated iHP system continues to grow, strengthened by this positive trend of interest. Our ongoing conversations and proposals for the CES product line collectively equates to approximately $10 million. Some of these engagements are near term and some are projected to be installed over the next few years. This attests to the significant potential and demand for our game-changing technology in replacing conventional practices.

自上次財報電話會議以來，我們與對客製化設計系統感興趣的潛在客戶的持續對話已從36 個擴大到42 個。我們對全自動iHP 系統前景的信心持續增長，這種積極的興趣趨勢增強了我們的信心。我們針對 CES 產品線正在進行的對話和提案總共相當於約 1000 萬美元。其中一些項目是近期的，一些項目預計將在未來幾年內安裝。這證明了我們改變遊戲規則的技術在取代傳統做法方面具有巨大的潛力和需求。

Our new, automated turnkey solution, known as the SteraMist Integration System, or SIS, is gaining considerable traction. This is an integrated iHP solution for decontamination chambers, cabinets, cage washers, and modular clean rooms. Notably, our roster of key partners for this product has expanded from 7 to an impressive 15, from design consultants to manufacturers of equipment, all expressing keen interest in collaborating with TOMI and adopting or assisting on the implementation of [iHPB] contamination. Six of these manufacturing partners have been introduced through our new European distributor, which Dr. Shane mentioned earlier.

我們的新型自動化交鑰匙解決方案稱為 SteraMist 整合系統 (SIS)，正在獲得相當大的關注。這是一款適用於淨化室、淨化櫃、籠式清洗機和模組化無塵室的整合式 iHP 解決方案。值得注意的是，我們該產品的主要合作夥伴名單已從7 個擴大到令人印象深刻的15 個，從設計顧問到設備製造商，所有人都表達了與TOMI 合作並採用或協助實施[iHPB ] 污染的濃厚興趣。其中六個製造合作夥伴是透過我們新的歐洲經銷商引入的，Shane 博士之前提到。

The Cellares relationship that we announced earlier this quarter is particularly exciting. Cell therapy manufacturing is a multi-billion-dollar industry growing very quickly. Our technology will be integrated into their cell therapy manufacturing system. Maintaining a sterile environment is critical for Cellares, and our product offered advantages over other commercially available decontamination methods. And we'll continue to keep you updated as this relationship progresses.

我們本季早些時候宣布的與 Cellares 的合作關係尤其令人興奮。細胞療法製造是一個價值數十億美元的行業，成長非常迅速。我們的技術將整合到他們的細胞療法製造系統中。維持無菌環境對 Cellares 至關重要，我們的產品比其他市售淨化方法更有優勢。隨著這種關係的進展，我們將繼續向您通報最新情況。

Ensuring worldwide recognition remains a pivotal aspect of our strategy. In addition to our collaboration with Pfizer, we remain deeply engaged with other prominent global enterprises that specialize in our market segments. For example, Fresenius Kabi facility in Brazil has procured SteraMist equipment and are undergoing the qualifying process. In tandem, we are working closely with many key figures in the company, evaluating the product viability in other facility locations around the globe, which spans across 47 countries.

確保全球認可仍然是我們策略的關鍵面向。除了與輝瑞的合作外，我們還與其他專注於我們細分市場的全球知名企業保持深入合作。例如，巴西費森尤斯卡比工廠已採購 SteraMist 設備並正在進行資格認證程序。同時，我們正在與該公司的許多關鍵人物密切合作，評估全球其他工廠（橫跨 47 個國家）的產品可行性。

Finally, we continue to put considerable focus on the organization on effective onboarding, education, and customer support. Our customer service continues to improve, reflected by the growing number of repeat orders from our broadening existing customer base.

最後，我們持續高度重視組織的有效入職、教育和客戶支援。我們的客戶服務不斷改善，這反映在我們不斷擴大的現有客戶群中重複訂單的數量不斷增加。

Thank you, and I will now turn the call over to our CFO, Nick Jennings.

謝謝，我現在將把電話轉給我們的財務長尼克詹寧斯 (Nick Jennings)。

Thank you, EJ, and hello, everyone. I'll provide a brief overview of our financial results for the second-quarter 2023, compared to the same prior year period. For the three months ended June 30, 2023, compared to June 30, 2022, our consolidated net revenue was $2,775,000 compared to $1,458,000, representing an increase of $1,317,000 or 90%. Consolidated gross profit was 61% compared to 63%. The decline in our gross profit was due to our product mix and sales.

謝謝你，EJ，大家好。我將簡要概述 2023 年第二季與去年同期的財務表現。截至 2023 年 6 月 30 日的三個月，與 2022 年 6 月 30 日相比，我們的合併淨收入為 2,775,000 美元，較 1,458,000 美元增加了 1,317,000 美元或 90%。綜合毛利為 61%，去年同期為 63%。我們的毛利下降是由於我們的產品組合和銷售。

The consolidating operating loss was $89,000, compared to $863,000, representing a decrease of $774,000 or 90%. The decline in our loss from operations was attributable to higher sales and gross profit in the current year period. Our consolidated net loss was $89,000 or $0.00 per basic and diluted share compared to $862,000 or $0.04 per basic share. Adjusted EBITDA was approximately $2,000, compared to a loss of $780,000. A table reconciling adjusted EBITDA to the appropriate GAAP financial measure is included with today's press release.

合併營運虧損為 89,000 美元，較之前的 863,000 美元減少了 774,000 美元，即 90%。我們的經營虧損下降是由於本年度銷售額和毛利增加。我們的合併淨虧損為 89,000 美元，即每股基本股和稀釋股 0.00 美元，而同期淨虧損為 862,000 美元，即每股基本股 0.04 美元。調整後 EBITDA 約為 2,000 美元，而虧損為 780,000 美元。今天的新聞稿中包含了一張將調整後的 EBITDA 與適當的 GAAP 財務指標進行調整的表格。

Moving on to the balance sheet. As of June 30, 2023, our cash and cash equivalents were approximately $1.6 million, working capital was $7.8 million, and shareholder's equity was $10.4 million.

繼續看資產負債表。截至 2023 年 6 月 30 日，我們的現金及現金等價物約為 160 萬美元，營運資金為 780 萬美元，股東權益為 1,040 萬美元。

Now, I'd like to turn the call back over to Dr. Halden Shane.

現在，我想將電話轉回哈爾登·謝恩博士。

Thank you, Nick. Thank you all for joining us today and for your unwavering support as investors and followers of our company. We believe our second-quarter results have us back on track and have given us a lot of momentum heading into the second half of 2023. At this point in time, we believe that we may obtain profitability in the fourth quarter and beyond. Thank you for your time and your support. And don't forget to review our new website at www.steramist.com.

謝謝你，尼克。感謝大家今天加入我們，並感謝你們作為我們公司的投資者和追隨者的堅定支持。我們相信第二季的業績讓我們重回正軌，並為我們進入 2023 年下半年提供了很大的動力。目前，我們相信我們可能會在第四季度及以後實現盈利。感謝您的時間和支持。並且不要忘記查看我們的新網站 www.steramist.com。

Operator, open to questions, please.

接線員，歡迎提問。

(Operator Instructions) [Tim Peole, Day Street Partners].

（操作員說明）[Tim Peole，Day Street Partners]。

Thanks for taking my question. So obviously, the gross margin in your business are very attractive. I was just wondering how should we think about gross margins going forward as you scale the business.

感謝您提出我的問題。顯然，你們業務的毛利率非常有吸引力。我只是想知道，當你擴大業務規模時，我們應該如何考慮未來的毛利率。

So as we scale, we should really see our gross margins potentially improve, particularly as we drive more solution sales into the installed base of equipment, which is basically our model, which is a razor-razorblade type model. So that's how I think it is. Again, and we have a relatively high gross margin, and it contributes to our relatively low breakeven point. Thanks for the question.

因此，隨著我們規模的擴大，我們確實應該看到我們的毛利率可能會提高，特別是當我們將更多的解決方案銷售推向設備安裝基礎時，這基本上就是我們的模型，這是一種剃須刀刀片類型的模型。我就是這麼認為的。同樣，我們的毛利率相對較高，這導致我們的損益平衡點相對較低。謝謝你的提問。

Todd Felte, AGES Financial Services.

Todd Felte，AGES 金融服務公司。

Congratulations on the return to breakeven, and I look forward to the future quarters of profitability. I had one question on the ethylene oxide. You had a press release on April 26th, dealing with the ethylene oxide exposure, and was just curious if there's been any progress made. I know that the SteraMist was a viable solution for that.

恭喜您恢復損益平衡，我對未來幾季的獲利充滿期待。我有一個關於環氧乙烷的問題。你們在 4 月 26 日發布了一份關於環氧乙烷暴露問題的新聞稿，只是想知道是否取得了任何進展。我知道 SteraMist 是一個可行的解決方案。

It is, and we're doing work to prove that, from a standpoint of medical equipment and medical supplies, that we will be a very valuable alternative to ethylene oxide in sterilization. And again, going through -- we have to go through the regulatory processes for that, and currently, we've had some great results with it. So we look forward to being able to produce sterilization equipment and to market it as such in the very near future.

確實如此，我們正在努力證明，從醫療設備和醫療用品的角度來看，我們將成為滅菌領域環氧乙烷的非常有價值的替代品。再說一次，我們必須為此通過監管流程，目前，我們已經取得了一些很好的成果。因此，我們期待在不久的將來能夠生產滅菌設備並將其推向市場。

Okay, that's great to hear. And one other quick question. I know that you had the US Army validate the SteraMist technology and you've been getting some test runs with HHS and other government entities. I think you're even going to be used in one of the infectious labs in Africa. Is there any update on either the Army or HHS or any other government contracts moving forward?

好的，很高興聽到這個消息。還有另一個簡單的問題。我知道美國陸軍已經驗證了 SteraMist 技術，並且已經與 HHS 和其他政府實體進行了一些測試。我認為你甚至會被用於非洲的傳染病實驗室。陸軍或衛生與公眾服務部或任何其他政府合約是否有任何進展？

Not at the moment. They don't do things quick enough for me, but they are moving forward. We are working on getting validation for fentanyl in real life. So I feel that we'll be able to neutralize it. We're just waiting to get the laboratory verification of that, which should, again, open up a lot of potential doors for us to use SteraMist [in] unfortunately those fentanyl areas.

現在不行。他們做事的速度對我來說不夠快，但他們正在前進。我們正在努力在現實生活中驗證芬太尼。所以我覺得我們能夠消除它。我們只是在等待實驗室驗證，這應該再次為我們在芬太尼領域使用 SteraMist 打開許多潛在的大門。

(Operator Instructions) John Nelson, a private investor.

（操作員說明）John Nelson，私人投資者。

Hi, Halden, congratulations on the quarter, and look forward to future profitability of the company. I have several questions. The first one was regarding the prior questionnaire Todd had on US military government contracts. You mentioned fentanyl neutralization. Could you explain a little bit more about SteraMist's role in that?

你好，哈爾登，祝賀這個季度，並期待公司未來的盈利能力。我有幾個問題。第一個是關於托德之前就美國軍政府合約進行的調查問卷。你提到芬太尼中和。您能否詳細解釋一下 SteraMist 在其中的角色？

I believe that when the laboratory studies come in, that we should be able to neutralize fentanyl in all-enclosed space, which would open up a lot of avenues for the product, especially when you hear on the news what's occurring with police when they come up to a backpack or they open it and they get exposed to some of the toxic fumes of fentanyl. That same problem's occurring in classrooms and lockers in high schools, and even, unfortunately, in junior high schools around the country. So this would be a product once we're able to prove that that could be utilized on scene of any suspicious locker or area where fentanyl might be located.

我相信，當實驗室研究到來時，我們應該能夠在全封閉的空間中和芬太尼，這將為該產品開闢很多途徑，特別是當你在新聞中聽到警察來時發生的事情時他們打開背包，或是打開背包，就會碰到一些芬太尼的有毒煙霧。同樣的問題也發生在高中的教室和儲物櫃中，不幸的是，甚至在全國各地的初中也存在。因此，一旦我們能夠證明該產品可以在任何可疑儲物櫃或可能存在芬太尼的區域的現場使用，這將是一種產品。

Okay, good. That sounds very promising. Also, in the prior press release, mentioned Technimount System in Canada for EMS. Could you describe any progress with business there?

好的。這聽起來很有希望。此外，在先前的新聞稿中，提到了加拿大的 EMS 的 Technimount 系統。您能描述一下那裡的業務進度嗎？

I'll let EJ talk about that because she seems to be handling the account. EJ?

我會讓 EJ 談談這個，因為她似乎正在處理該帳戶。埃傑？

Certainly, Dr. Shane. So Technimount came on earlier this year, and they are a warehousing equipment and moving to [therapacks] and surface units and emergency services. They are fully onboarded and trained and attending trade shows and getting the word out of SteraMist in their area. They do seem to be very active, just in the correspondence between us on a weekly basis. So I'm excited to see them progress throughout the year.

當然，謝恩博士。因此，Technimount 在今年稍早問世，它們是一種倉儲設備，並正在轉向 [therapacks] 以及地面裝置和緊急服務。他們已完全入職並接受過培訓，並參加貿易展並在其所在地區宣傳 SteraMist。他們看起來確實很活躍，只是我們每週都會有信件往來。因此，我很高興看到他們全年取得進步。

Have they made any sales so far, or are they still in the process of just kind of rolling it out and marketing it?

到目前為止，他們是否已經完成任何銷售，或者他們是否仍在推出和行銷它？

They've sold a few. They're in the process of mainly rolling it out and marketing it. It's how we're bringing on our partners, with a little more full of an onboarding and getting them educated into the marketplace. But they have attended shows, and they come with a very unique customer list already, so they're definitely gaining interest in their current customers.

他們已經賣了一些了。他們主要正在推出和行銷它。這就是我們吸引合作夥伴的方式，透過更全面的入職培訓並讓他們接受市場教育。但他們參加了展會，並且已經擁有了非常獨特的客戶名單，因此他們肯定對當前客戶產生了興趣。

Okay, thank you. Next question is, any progress with the FDA on -- I believe it was the 1% solution for produce treatment?

好的謝謝。下一個問題是，FDA 在——我相信是針對農產品處理的 1% 解決方案——方面有任何進展嗎？

Nothing further than from my last discussion about it, to my knowledge, John.

據我所知，約翰，這只是我上次對此的討論。

Okay. And then another -- I think it was last call, there was -- [is there] have been any progress on penetrating the marijuana markets for treating powdery mildew?

好的。然後另一個 - 我認為這是最後一次電話，有 - [是否]在進入大麻市場治療白粉病方面取得了任何進展？

Yes, I believe that we are doing that. EJ, do you have any color to add to that?

是的，我相信我們正在這樣做。 EJ，有什麼可以補充的嗎？

Yes. We're actually also putting a move forward on getting our brand familiar with the industry, attending podcasts, and through some of our TSN members who are coming up with really good results. Again, it's a new technology to the industry, so it's gaining awareness and traction, but we should see some of these results by the end of the year.

是的。實際上，我們也透過參加播客以及一些取得了非常好的成果的 TSN 成員，在讓我們的品牌熟悉產業方面取得了進展。同樣，這對行業來說是一項新技術，因此它正在獲得人們的關注和關注，但我們應該在今年年底之前看到其中的一些結果。

Okay. And just kind of a sidebar. The wine industry has problems with treating their vines for the same fungus, powdery mildew. Has there been any exploration of seeing whether SteraMist might be valuable for any of the large wineries?

好的。只是一種側邊欄。葡萄酒產業在處理葡萄藤上同樣的真菌—白粉病時遇到了問題。是否有任何探索，看看 SteraMist 是否對任何大型酒莊都有價值？

I don't believe we have. From a standpoint of feasibility, it's definitely a feasible industry to go after, specifically since they store a lot of this stuff, even once it's fermented in areas that have a lot of mold and stuff. But from a direct application to the vine, prior to planting, it might be interesting to see how we would do. I know we're continuing to work with the seed companies on eradicating different pathogens from seeds prior to packaging them to sell to retail purchases.

我不相信我們有。從可行性的角度來看，這絕對是一個可行的行業，特別是因為他們儲存了很多這種東西，即使它是在有大量黴菌和東西的地方發酵的。但在種植之前，將其直接應用於葡萄樹，看看我們會如何做可能會很有趣。我知道我們正在繼續與種子公司合作，在種子包裝出售給零售之前消除種子中的不同病原體。

Again, I mean, the applications are endless, as you know, for the product. So we keep up on as much as we can, depending upon, obviously, [what] the size of the company is. As we grow, we'll be able to go into more verticals and do more research in these areas. So that's a good question, John. Thank you.

再說一次，我的意思是，正如您所知，該產品的應用程式是無窮無盡的。因此，我們會盡可能地跟上，這顯然取決於公司的規模。隨著我們的成長，我們將能夠進入更多的垂直領域並在這些領域進行更多的研究。所以這是一個好問題，約翰。謝謝。

Okay, thanks. And also, any further updates on the [Forever] SHIELD Study?

好的謝謝。另外，[永遠]神盾局研究有任何進一步的更新嗎？

I knew you're going to ask that. So I try not to mention it on my earnings calls anymore, because I think they're reading it and it's delaying their desire to edit and publish this. So there's nothing further that I have, but I will be meeting with them in the early part of September.

我就知道你會問這個。所以我盡量不在我的財報電話會議上提及它，因為我認為他們正在閱讀它，這推遲了他們編輯和發布這篇文章的願望。所以我沒有更多的信息，但我將在九月初與他們會面。

Okay, good. And that's it for questioning, but congrats on the Avantor and Vizient partnerships, in particular, because, at least in my opinion, TOMI needs to get more exposure on SteraMist, and those are two big players that will, if they're motivated, will certainly get the word out.

好的。質疑就到此為止，但特別要祝賀 Avantor 和 Vizient 的合作夥伴關係，因為，至少在我看來，TOMI 需要在 SteraMist 上獲得更多曝光，而這兩個大玩家如果有動力的話，將會，一定會傳出去的。

Thank you, John, and thank you for your support.

謝謝你，約翰，也謝謝你的支持。

Okay. As we have reached the end of our question-and-answer session, I would like to turn the floor back over to management for any closing remarks.

好的。當我們的問答環節結束時，我想將發言權交還給管理階層，讓他們發表結束語。

Just once again, I thank everybody for joining, and hope you have the remaining enjoyable August that one can get. Thank you again.

我再次感謝大家的加入，並希望你們有個愉快的八月。再次感謝你。

This does conclude today's conference call, and you may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束，此時您可以斷開線路。感謝您的參與。