TOMI Environmental Solutions Inc (TOMZ) 2024 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to the Tomi Environmental Solutions, Inc. second-quarter 2024 financial results conference call. (Operator Instructions)

大家下午好，歡迎參加 Tomi Environmental Solutions, Inc. 2024 年第二季財務績效電話會議。（操作員說明）

It is now my pleasure to turn the floor over to your host, John Nesbett of IMS. Sir, the floor is yours

現在我很高興將發言權交給主持人、IMS 的約翰·內斯貝特 (John Nesbett)。先生，地板是你的了

Thank you for joining us today for TOMI Environmental Solutions' Investor Update Call.

感謝您今天參加 TOMI Environmental Solutions 的投資者更新電話會議。

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, Joe Rzepka. Dr. Shane will provide an overview of recent business highlights, EJ will report on future plans, Joe will provide the financials, and all will be available for the Q&A.

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； TOMI 財務長 Joe Rzepka。Shane 博士將概述最近的業務亮點，EJ 將報告未來計劃，Joe 將提供財務數據，所有內容都可用於問答。

A telephone replay of today's call will be available through August 15, 2024, the details of which are included in the company's press release dated August 1, 2024. A webcast replay will also be available on TOMI's website, www.steramist.com.

今天通話的電話重播將持續到 2024 年 8 月 15 日，詳細資訊包含在該公司 2024 年 8 月 1 日的新聞稿中。TOMI 的網站 www.steramist.com 上也將提供網路廣播重播。

Please note that information contained within this presentation is relevant only to the date which recorded August 1, 2024, and you are therefore advised that time sensitive information may no longer be accurate at the time of any replay. Certain written or oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

請注意，本簡報中包含的資訊僅與 2024 年 8 月 1 日記錄的日期相關，因此建議您，時間敏感資訊在任何重播時可能不再準確。TOMI 管理階層所做的某些書面或口頭聲明可能構成 1995 年《私人證券訴訟改革法案》中定義的前瞻性聲明。

These forward-looking statements could be evaluated -- I'm sorry, 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.

這些前瞻性陳述可以進行評估——很抱歉，應該根據可能導致實際結果與我們的預期結果產生重大差異的重要風險因素進行評估。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 1, 2024.

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 指標的調整表包含在 2024 年 8 月 1 日發布的收益報告中。

I will now turn the call over to TOMI's Chairman and CEO, Dr. Halden Shane. Please go ahead.

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

Thank you, John, and good afternoon, everyone. And thank you for joining us today to discuss TOMI Environmental Solutions' second-quarter 2024 financial results.

謝謝約翰，大家下午好。感謝您今天加入我們討論 TOMI Environmental Solutions 的 2024 年第二季財務表現。

Today, I am pleased to announce that TOMI has achieved significant milestone by returning to profitability in quarter two of 2024. This achievement is a testament to the resilience and dedication of our team, the support of key long-term partners, as well as the strength of our business model.

今天，我很高興地宣布 TOMI 已實現重要里程碑，於 2024 年第二季恢復獲利。這項成就證明了我們團隊的韌性和奉獻精神、主要長期合作夥伴的支持以及我們業務模式的實力。

Our revenue for the quarter exceeded $3 million, representing a 170% sequential increase compared to the previous quarter. This growth was primarily driven by strong demand for our mobile equipment, which accounted for over 60% of our total revenue, an indicator we have not seen since the 2022 year.

我們本季的營收超過 300 萬美元，比上一季環比成長 170%。這一成長主要是由對我們的行動裝置的強勁需求推動的，行動裝置占我們總收入的 60% 以上，這是我們自 2022 年以來從未見過的指標。

BIT Solutions sales increased by approximately 171% over the first quarter. We also saw strong International sales. The second quarter marks a record breaking performance, surpassing our previous highs since the outlier year of 2020. Building on this momentum, we have secured approximately $5.6 million in sales year to date.

BIT Solutions 銷售額較第一季成長約 171%。我們也看到強勁的國際銷售。第二季的業績創下歷史新高，超過了 2020 年以來的最高點。在此勢頭的基礎上，我們今年迄今已實現約 560 萬美元的銷售額。

This figure combines recognized and reported revenue, delivered orders for Q3, and open bookings for the remainder of the year. We have nearly matched the total number of mobile equipment sales realized through the entire calendar year of 2023. Additionally, we have four active custom installation orders currently underway in our manufacturing, production and validation service lines, with more projects expected to close soon. These trends position us for continued growth and solidify a strong foundation for the balance of the year.

該數字結合了已確認和報告的收入、第三季交付的訂單以及今年剩餘時間的未完成預訂。我們幾乎與 2023 年全年實現的行動裝置銷售總數相當。此外，我們的製造、生產和驗證服務線目前正在進行四個活躍的客製化安裝訂單，預計更多項目將很快結束。這些趨勢為我們的持續成長奠定了基礎，並為今年剩餘的時間奠定了堅實的基礎。

In addition to increased sales of our mobile equipment, our strong financial performance this quarter was driven by several key other factors. First, we partnered with EMAQ, who purchased over $1 million of equipment to be used for SteraMist iHP service. Second, we delivered two custom integrations, a fully installed custom engineered system and a hybrid system to customers this quarter. Third, we continue to expand our global footprint with new customers in Canada, Mexico, Philippines and the UAE. And lastly, our focus on cost reduction initiatives have yielded positive results, improving our profitability and allowing us to invest in growth opportunities.

除了行動裝置銷售的成長之外，我們本季強勁的財務業績還受到其他幾個關鍵因素的推動。首先，我們與 EMAQ 合作，後者購買了超過 100 萬美元的設備用於 SteraMist iHP 服務。其次，我們本季向客戶交付了兩個客製化整合、一個完全安裝的客製化工程系統和一個混合系統。第三，我們繼續擴大我們在加拿大、墨西哥、菲律賓和阿聯酋的新客戶的全球足跡。最後，我們對降低成本措施的關注取得了積極成果，提高了我們的獲利能力，並使我們能夠投資於成長機會。

We maintained an active focus on digital marketing initiatives and business development plans with existing customers. To optimize our budget, we reduced our participation in trade shows and redirected resources towards more effective lead generation strategies such as referrals and references. In addition, TOMI will discuss certain non-GAAP (technical difficulty).

我們持續積極關注現有客戶的數位行銷計劃和業務發展計劃。為了優化我們的預算，我們減少了對貿易展覽的參與，並將資源轉向更有效的潛在客戶開發策略，例如推薦和推薦。此外，TOMI也將討論某些非GAAP（技術難度）。

Thank you, Dr. Shane. Good afternoon, everyone. I will provide a brief overview of our financial results for the second quarter of 2024 compared to the same prior year period that would be for the three months ended June 30, 2024 compared to June 30, 2023. Our consolidated net revenue was $3.013 million compared to $2.775 million, increasing approximately 9%. Consolidated gross profit was 61.5% compared to 61.3%. The increase in our gross profit was due to our product mix and sales.

謝謝你，肖恩醫師。大家下午好。我將簡要概述我們 2024 年第二季的財務表現與去年同期相比，截至 2024 年 6 月 30 日的三個月與 2023 年 6 月 30 日的財務表現。我們的綜合淨收入為 301.3 萬美元，較之前的 277.5 萬美元增長了約 9%。綜合毛利為 61.5%，去年同期為 61.3%。我們的毛利增加歸因於我們的產品組合和銷售。

The consolidated operating profit was $121,000 compared to an $89,000 loss in the prior year, representing an increase of $211,000 or 237%. The increase in our profit was attributable to higher sales and gross profit in the current year period. Our consolidated net profit was $30,000 or $0 per basic and diluted share, compared to a net loss of $89,000 or $0.06 per basic share.

合併營業利潤為 121,000 美元，與上一年的虧損 89,000 美元相比，增加了 211,000 美元，即 237%。我們的利潤增加歸因於本年度銷售額和毛利的增加。我們的合併淨利潤為 30,000 美元，即每股基本股和稀釋股 0 美元，而淨虧損為 89,000 美元，即每股基本股 0.06 美元。

Moving on to the balance sheet, as of June 30, 2024, our cash and cash equivalents were approximately $709,000. Working capital was $6.8 million and shareholders' equity was $7.3 million.

轉到資產負債表，截至 2024 年 6 月 30 日，我們的現金和現金等價物約為 709,000 美元。營運資金為 680 萬美元，股東權益為 730 萬美元。

Now, I'll turn the call over to EJ Shane to provide insight on the current company activities.

現在，我將把電話轉給 EJ Shane，以提供有關當前公司活動的見解。

Thank you, Joe, and good afternoon, everyone. This quarter's results are a direct testament to the strategic initiatives we have been implementing, demonstrating their effectiveness and driving growth and market penetration. These strategic moves are constantly strengthening our sales pipeline and backlog, positioning us for a sustained growth, and we remain optimistic for the second half of the year.

謝謝喬，大家下午好。本季的業績直接證明了我們一直在實施的策略舉措，展示了其有效性並推動了成長和市場滲透。這些策略舉措不斷加強我們的銷售管道和積壓訂單，為我們的持續成長做好準備，我們對下半年保持樂觀。

As a result of our efforts to build relationships and increase awareness of scientific studies which validate our technology and test our latest application methods, we have seen a notable increase in demand for SteraMist iHP, and more importantly, we are beginning to grow our market share with strong momentum. Our efforts to expand our market presence will yield substantial returns in the long term.

由於我們努力建立關係並提高對科學研究的認識，這些研究驗證了我們的技術並測試了我們最新的應用方法，我們發現對SteraMist iHP 的需求顯著增加，更重要的是，我們開始擴大我們的市佔率勢頭強勁。從長遠來看，我們擴大市場份額的努力將帶來可觀的回報。

I would like to touch upon the four key initiatives: our sales pipeline for the Custom Engineered System, or CES; the progress made regarding the launch of SteraMist Integrated Systems, or our SIS; performance of iHP service revenue; and the impact of our worldwide distribution network on mobile equipment sales and the plans ahead.

我想談談四項關鍵舉措：我們的客製化工程系統（CES）銷售管道； SteraMist 整合系統 (SIS) 的推出取得了進展； iHP 服務收入表現；以及我們的全球分銷網絡對行動裝置銷售和未來計劃的影響。

For this call, I will begin with our iHP service revenue initiatives. As stated, there is a significant shift in the decontamination service market as a leading competitor dropped out of the market early this year, presenting us with a substantial amount of opportunities to grow our market share, particularly in the Life Sciences sector. Currently, for year-to-date, we have recorded almost $1 million in service revenue alone.

對於本次電話會議，我將從我們的 iHP 服務收入計劃開始。如上所述，隨著領先競爭對手今年年初退出市場，淨化服務市場發生了重大轉變，這為我們提供了大量擴大市場份額的機會，特別是在生命科學領域。目前，今年迄今為止，我們僅服務收入就達到了近 100 萬美元。

Additionally, as Dr. Shane reported, we formalized the partnership with EMAQ to head our West Coast iHP services. The collaboration with EMAQ into our service offerings will significantly expand our geographic reach and operational efficiency. By handling the volume of West Coast iHP service requests, EMAQ allows us to optimize our resources and focus on higher profit margin opportunities. This strategic partnership not only ensures customer satisfaction, but also drives increased sales of capital equipment by those who receive our services.

此外，正如 Shane 博士所報告的，我們與 EMAQ 正式建立了合作夥伴關係，以領導我們的西海岸 iHP 服務。與 EMAQ 合作提供服務將顯著擴大我們的地理覆蓋範圍和營運效率。透過處理西海岸 iHP 的大量服務請求，EMAQ 使我們能夠優化我們的資源並專注於更高利潤率的機會。這種策略性合作夥伴關係不僅確保了客戶滿意度，而且還推動了接受我們服務的客戶增加資本設備的銷售。

We are also pleased to announce that EMAQ comes with a newly secured three-year contract with a major pharmaceutical company. The agreement between TOMI and EMAQ, not only contributed $1 million for sales for quarter two, but it will generate approximately $60,000 in annual BIT Solution sales for TOMI moving forward. It also expands the utilization of our iHP technology within a globally recognized organization. To-date, we currently have an in-house sales pipeline amounting to approximately $700,000 for our iHP services.

我們也很高興地宣布，EMAQ 與一家大型製藥公司新簽訂了為期三年的合約。TOMI 和 EMAQ 之間的協議不僅為第二季度的銷售額貢獻了 100 萬美元，而且還將為 TOMI 今後的年度 BIT 解決方案銷售額帶來約 60,000 美元的收入。它還擴大了我們的 iHP 技術在全球認可的組織中的使用。迄今為止，我們的 iHP 服務目前擁有價值約 70 萬美元的內部銷售管道。

Moreover, our enhanced validation packages are gaining traction within the life sciences sector. By offering a comprehensive suite of services which includes validation, we are able to accelerate equipment operation and solidify our position as a preferred partner over other third-party consultants for these services. A full comprehensive validation package service starts at $30,000 for a standard full room area fogging. All of these services typically offer clear revenue forecasts.

此外，我們的增強驗證包在生命科學領域越來越受歡迎。透過提供包括驗證在內的全套服務，我們能夠加速設備運行，並鞏固我們作為這些服務的其他第三方顧問的首選合作夥伴的地位。標準全房間區域霧化的全套驗證套餐服務起價為 30,000 美元。所有這些服務通常都會提供明確的收入預測。

As a follow-up to our previous call, I am pleased to report that one of the two anticipated CES contracts is now confirmed and is in the design phase. This brings our total current active CES' to four. We remain optimistic about closing the second contract this year, which is projected for a Q2 2025 installation. Additionally, we anticipate four more CES contracts in the near future with deliverables at different times. While the CES sales cycles are typically lengthy, our persistence is paying off as reflected by the CES contracts closed this year.

作為我們上次電話會議的後續行動，我很高興地報告，兩份預期的 CES 合約之一現已確認，並處於設計階段。這使得我們目前活躍的 CES 總數達到了四次。我們對今年完成第二份合約仍持樂觀態度，預計該合約將於 2025 年第二季安裝。此外，我們預計在不久的將來還會有四份 CES 合同，並在不同時間交付。雖然 CES 銷售週期通常很長，但我們的堅持正在得到回報，正如今年簽署的 CES 合約所反映的那樣。

We are currently negotiating approximately 50 potential deals, many of which we have been cultivating over the past few years. The difference now is many of these deals are maturing and we anticipate a more consistent closing rate.

我們目前正在談判大約 50 項潛在交易，其中許多交易是我們在過去幾年中一直在培養的。現在的不同之處在於，其中許多交易正在成熟，我們預計成交率會更加一致。

Our SteraMist Integration System, or the SIS product line, is demonstrating a strong launch. As a reminder, the SIS is our enclosure-based CES solution, which offers a shorter sales cycle and streamlined purchasing process compared to the traditional CES orders. While still generating the valuable validation service revenue, I just mentioned.

我們的 SteraMist 整合系統（或 SIS 產品線）正在強勢推出。提醒一下，SIS 是我們基於外殼的 CES 解決方案，與傳統的 CES 訂單相比，它提供更短的銷售週期和簡化的採購流程。我剛才提到，雖然仍然產生有價值的驗證服務收入。

Our proprietary SteraBox is gaining significant traction as well, and we are actively collaborating with key enclosure manufacturers to establish long-term partnerships. Of the four manufacturers reported, one is selling and integrating our cold plasma applicators, two remain in the design phase and the fourth is about to undergo cycle testing. While this has been a substantial undertaking, we anticipate returns once these partnerships are fully established.

我們專有的 SteraBox 也獲得了巨大的關注，我們正在積極與主要外殼製造商合作，建立長期合作夥伴關係。在報告的四家製造商中，一家正在銷售和整合我們的冷等離子體施用器，兩家仍處於設計階段，第四家即將進行循環測試。雖然這是一項艱鉅的任務，但一旦這些合作夥伴關係完全建立，我們預計將獲得回報。

A critical component of our SIS launch is our standalone system, which was introduced at Interphex earlier this year and received praise. Finalizing the delivery system, we are now in full production and have a robust pipeline of potential customers. This versatile system offers significant flexibility for decontamination protocol, catering to both enclosures and smaller rooms while maintaining strict adherence to GMP and Annex 1 guidelines. We are confident about the entry of this specific delivery system to our market base.

我們推出的 SIS 的一個關鍵組成部分是我們的獨立系統，該系統於今年稍早在 Interphex 上推出並獲得了好評。交付系統最終確定後，我們現已全面投入生產，並擁有強大的潛在客戶管道。這種多功能係統為淨化協議提供了極大的靈活性，適用於外殼和較小的房間，同時嚴格遵守 GMP 和附件 1 準則。我們對這種特定的輸送系統進入我們的市場基礎充滿信心。

While TOMI's iHP services, CES and SIS offerings, I just mentioned, are primarily focused around our life sciences division, we are also strategically investing in our other divisions, food safety, healthcare, and commercial. Notably, our TOMI Service Network, or TSN, is being integrated into the commercial division moving forward. To drive company growth and expand our market presence, we are excited to announce the launch of the SteraMist Pro Certified, or SPC program, open to all customer segments globally.

我剛才提到，雖然 TOMI 的 iHP 服務、CES 和 SIS 產品主要集中在我們的生命科學部門，但我們也在策略性地投資於我們的其他部門，例如食品安全、醫療保健和商業。值得注意的是，我們的 TOMI 服務網絡（TSN）正在整合到商業部門。為了推動公司發展並擴大我們的市場份額，我們很高興地宣布推出 SteraMist Pro 認證 (SPC) 計劃，向全球所有客戶群開放。

This initiative offers significant opportunities for revenue growth and increased market penetration by enhancing our proactive approach to worldwide disinfection. The SPC program, an educational platform mainly for our service providers and healthcare facility departments, aims to expedite the adoption of our technology and resources. By positioning the SPC program as a key component for our growth strategy, we are confident it will expand our market footprint.

該舉措透過加強我們在全球範圍內積極主動的消毒方法，為收入成長和提高市場滲透率提供了重大機會。SPC 計劃是一個主要面向我們的服務提供者和醫療機構部門的教育平台，旨在加快我們的技術和資源的採用。透過將 SPC 計劃定位為我們成長策略的關鍵組成部分，我們相信它將擴大我們的市場足跡。

TOMI is consistently broadening its SteraMist presence and client base within the food industry, challenging traditional methods and introducing innovative disinfection procedures. TOMI penetrated the coffee industry by bringing on Mayorga Coffee and a few others, and onboarded clients, such as Lakeview Farms and Crank and Boom in the dip, desserts and ice cream industry.

TOMI 不斷擴大其 SteraMist 在食品業的影響力和客戶群，挑戰傳統方法並引入創新的消毒程序。TOMI 透過引進 Mayorga Coffee 和其他幾家咖啡公司，滲透到咖啡產業，並吸引了一些客戶，例如蘸醬、甜點和冰淇淋行業的 Lakeview Farms 和 Crank and Boom。

TOMI has also integrated SteraMist into standard operating procedures in the egg white food manufacturing, pet food production and packaging, meat production and agribusiness sectors of the market. The SteraPak is their preferred product for becoming accustomed with iHP technology.

TOMI 也將 SteraMist 融入了市場上蛋白食品製造、寵物食品生產和包裝、肉類生產和農業綜合企業領域的標準作業程序。SteraPak 是他們習慣 iHP 技術的首選產品。

To further demonstrate the effectiveness of SteraMist in the food industry, TOMI is excited to announce collaborative efforts with several major establishments on new studies that explore the broader applications and benefits that iHP has to offer. We are working with a production company out of Spain directly applying iHP on spices such as pepper, thyme, paprika, and peppercorns to reduce salmonella.

為了進一步證明 SteraMist 在食品業的有效性，TOMI 很高興地宣布與幾個主要機構合作進行新研究，以探索 iHP 提供的更廣泛的應用和優勢。我們正在與西班牙的一家生產公司合作，直接在胡椒、百里香、辣椒粉和花椒等香料上應用 iHP，以減少沙門氏菌。

A multinational corporation in food and beverage processing is operating iHP at two of their international sites and preliminary results show no contamination after treatment with iHP. We are hopeful that continued use will lead to company wide acceptance. These studies have also created further opportunities through introductions to their suppliers.

一家食品和飲料加工跨國公司正在其兩個國際工廠運作 iHP，初步結果顯示 iHP 處理後沒有污染。我們希望繼續使用能夠得到公司的廣泛接受。這些研究也透過介紹供應商創造了更多機會。

A third new initiative is one with a leader in consumer goods production of health, hygiene and nutrition products. TOMI is developing a specialized application of spraying their conveyor belts, simplifying the decontamination of packaged items against salmonella and listeria.

第三項新措施是與健康、衛生和營養產品消費品生產領域的領導者合作的舉措。TOMI 正在開發一種專門的傳送帶噴灑應用，簡化了包裝物品的沙門氏菌和李斯特菌淨化工作。

Our key distributors are actively expanding their market presence and we continue to provide them support. Our distribution network has been instrumental in the successful launch of our SIS product line, contributing significantly to both the integration and standalone system sales pipeline. We are also actively exploring new partnership opportunities in South Africa, Japan, Puerto Rico, and Indonesia to further expand our global reach.

我們的主要經銷商正在積極擴大他們的市場份額，我們將繼續為他們提供支援。我們的分銷網絡對於 SIS 產品線的成功推出發揮了重要作用，為整合和獨立系統銷售管道做出了重大貢獻。我們也在南非、日本、波多黎各和印尼積極探索新的合作機會，以進一步擴大我們的全球影響力。

In conclusion, we are pleased with our progress across all business segments. Our iHP service continues to expand, CES and SIS product lines are gaining the traction they deserve, and the SPC program is poised to drive further growth. The foundation built throughout the past few years with our customer relationships and partnerships is propelling us forward. We are optimistic about a strong 2024 close.

總之，我們對所有業務部門的進展感到滿意。我們的 iHP 服務不斷擴展，CES 和 SIS 產品線正在獲得應有的吸引力，SPC 計劃也將推動進一步成長。過去幾年我們透過客戶關係和合作夥伴關係建立的基礎正在推動我們前進。我們對 2024 年的強勁收盤感到樂觀。

I will now turn the call back to Dr. Shane for closure.

我現在將把電話轉回給謝恩博士以結束。

Splendid. Thank you, EJ and Joe. As we reflect on our accomplishments this quarter, it is clear that TOMI is well positioned for sustained growth and continued market expansion. Our return to profitability in this quarter, strong revenue growth, and strategic initiatives underscore our ability to adapt and thrive in a dynamic market environment.

燦爛。謝謝你們，EJ 和喬。當我們回顧本季的成就時，很明顯 TOMI 已做好持續成長和持續市場擴張的準備。我們在本季恢復獲利、強勁的營收成長和策略性舉措凸顯了我們在動態市場環境中適應和發展的能力。

Given our relatively small size, our historical results have been lumpy. This is not lost on us. We are laser focused on capturing the very real market opportunities in front of us and scaling the business to drive more sustained revenue growth, realize the power of our razor/razor blade model with growing high margin BIT sales and delivering to shareholders consistent and growing profitability.

鑑於我們的規模相對較小，我們的歷史業績一直不穩定。我們並沒有忽視這一點。我們專注於捕捉擺在我們面前的非常真實的市場機會，擴大業務規模，以推動更持續的收入增長，透過不斷增長的高利潤BIT 銷售來實現我們的剃須刀/剃須刀刀片模型的力量，並為股東提供持續不斷增長的獲利能力。

The team has made great progress laying the groundwork for this and we saw some of the fruits of our strategy come through in the quarter. We are on the way to building a much larger and more valuable business for stakeholders. Since the founding of this business, I have never been more excited about the prospects for TOMI.

團隊已經取得了巨大進展，為此奠定了基礎，我們在本季看到了我們策略的一些成果。我們正在為利害關係人建立一個更大、更有價值的業務。自從公司成立以來，我對TOMI的前景從未如此興奮。

Thank you for your continued support and confidence in TOMI Environmental Solutions. Operator, let's open to calls -- questions.

感謝您一直以來對TOMI環境解決方案的支持與信任。接線員，讓我們接受電話提問。

(Operator Instructions) Amit Dayal, H.C. Wainwright.

（操作員說明）Amit Dayal, H.C.溫賴特。

Thank you. Good afternoon, everyone. So with respect to the mobile equipment sales, just wanted to see how you get visibility for this segment? Do you get orders during the quarter that you can fulfill or are these part of your pipeline, and these orders are placed in advance and then you fulfill those orders accordingly?

謝謝。大家下午好。那麼，關於行動裝置銷售，只是想看看您如何獲得該細分市場的知名度？您是否在該季度收到了可以履行的訂單，或者這些訂單是您的管道的一部分，並且這些訂單是提前下達的，然後您相應地履行這些訂單？

EJ, do you want to take that?

EJ，你想接受嗎？

Yes, of course. On the mobile equipment sales, it is more of an immediate delivery for all our handheld and full room area fogging. The order comes in and we're able to deliver those immediately to our customers.

是的當然。在行動裝置銷售方面，我們所有的手持式和全房間區域霧化更多的是立即交付。訂單收到後，我們能夠立即交付給客戶。

Understood. So in that context, I'm just trying to get a sense of how much inventory you need to keep and whether the balance sheet at this point supports all of these initiatives that you have going on to match orders that come in on the spot, and you kind of fulfill those accordingly?

明白了。因此，在這種情況下，我只是想了解您需要保留多少庫存，以及此時的資產負債表是否支持您為匹配現場訂單而採取的所有這些舉措，你相應地履行了這些義務嗎？

I'm sorry? You broke out a little bit on our end.

對不起？你在我們這邊爆發了一點。

No, Amit, I got it. So we have an inventory, a little over $4 million, and it's composed mostly of equipment that would be mobile.

不，阿米特，我明白了。我們的庫存略高於 400 萬美元，主要由行動裝置組成。

Okay. Perfect. Thank you, Shane. And then with respect to the food safety opportunity, you highlighted a whole spectrum of potential customers. Is there any particular segment within sort of that industry, like grocery chains or more closer to the agricultural value chain that you are seeing faster adoption for this?

好的。完美的。謝謝你，謝恩。然後，關於食品安全機會，您強調了一系列潛在客戶。該行業中是否有任何特定的細分市場（例如雜貨連鎖店或更接近農業價值鏈）您認為該行業的採用速度更快？

I don't know if faster. I think they are all in play. I think anything from grocery markets to transportation of groceries to market, to storage of produce and various other foods, along with the use of it in the production line, and it's endless as far as the potential possibilities of what our product can do in the food safety end. And as we all know, because of the high cost of food that we're currently all experiencing, it becomes more in demand each day, especially in the preservation, storage, and transportation of food.

不知道能不能快一點我認為他們都在玩。我認為從雜貨市場到雜貨到市場的運輸，到農產品和各種其他食品的儲存，以及在生產線中的使用，就我們的產品在生產線中的潛在可能性而言，這是無限的。結束。眾所周知，由於我們目前所經歷的食品成本高昂，人們對食品的需求每天都在增加，特別是在食品的保存、儲存和運輸方面。

Understood. That all make sense. And then you highlighted the lumpiness in the past. With all of these initiatives now in play, the sales pipeline sort of now starting to come through, should we expect at least for the remainder of 2024 sequential improvements? I don't know if you have that level of visibility, but just trying to get a sense of how the next two quarters might shape up for you?

明白了。這一切都有道理。然後你強調了過去的混亂。隨著所有這些措施的實施，銷售管道現在開始發揮作用，我們是否應該至少期待 2024 年剩餘時間的連續改進？我不知道您是否有這樣的可見度，但只是想了解接下來的兩個季度對您來說會如何？

Well, we're very encouraged with what we have in our pipeline and what we have on the drawing boards for units, especially custom units. So it's hard. And I don't want to get put in this box again, but, I mean I think we're going to have a really strong second half of this year. And we see it going further into 2025 and 2026.

嗯，我們對我們正在開發的產品以及我們正在設計的單元（尤其是客製化單元）感到非常鼓舞。所以這很難。我不想再次陷入這個困境，但是，我的意思是，我認為我們今年下半年將會非常強勁。我們預計這種情況會持續到 2025 年和 2026 年。

Understood. And just last one for me, with all of the bird flu related headlines over the last quarter, has that helped create a bit more awareness about your products and just more visibility in the industry?

明白了。對我來說，最後一個問題是上個季度所有與禽流感相關的頭條新聞，這是否有助於提高人們對您的產品的認識以及在行業中的知名度？

I think the professionals in the industry are slowly becoming more aware of the product and we're getting a lot of questions. But I'm not too sure the general public yet is over the emotional and stress results of the pandemic. We're hearing different things about the specific bird flu and how it relates to human passage, but it is moving on into other animal kingdoms, including squirrels and raccoons and things that you usually don't hear about. So it's here and it's going to only potentially increase the product usage going forward in the right situations.

我認為行業內的專業人士正在慢慢地更加了解該產品，我們收到了很多問題。但我不太確定大眾是否已經接受了疫情帶來的情緒和壓力後果。關於特定的禽流感以及它與人類傳播的關係，我們聽到了不同的說法，但它正在蔓延到其他動物王國，包括松鼠和浣熊以及你通常聽不到的東西。因此，它就在這裡，並且只會在適當的情況下潛在地增加產品的使用量。

Understood. That’s all I have guys. Thank you so much.

明白了。這就是我所擁有的一切。太感謝了。

Thank you so much.

太感謝了。

Jack Longo, Longo Capital Management.

傑克隆戈，隆戈資本管理公司。

Hi, thanks for taking the question. Could you guys talk a little bit more about the growth in BIT Solutions sales? Obviously, this was a higher margin portion of business, saw a good performance in the quarter. So could you kind of just talk a bit more about how this plays into the model as business scales?

您好，感謝您提出問題。你們能多談談 BIT 解決方案銷售的成長嗎？顯然，這是業務利潤率較高的部分，在本季表現良好。那麼，您能否多談談隨著業務規模的擴大，這如何在模型中發揮作用？

Sure. So, I mean, the concept and the model for the company is razor/razor blade or printer/printer cartridge. And the more razors we get out and the more printers we get out, the more utilization of those cartridges or blades. So I think that we're starting to see some return on some of these large units that we've put in within the last couple of years.

當然。所以，我的意思是，該公司的概念和模型是剃刀/剃須刀片或印表機/印表機墨盒。我們推出的刮鬍刀越多，印表機越多，這些墨水匣或刀片的使用率就越高。因此，我認為我們開始看到我們在過去幾年內投入的一些大型單位的一些回報。

They've spent a long time through the validation process and now they're starting to utilize them on a consistent basis. And I think this will be good for financial projections going forward. And obviously, the more equipment we get out there, the greater usage and -- because they are a high margin to the company, it's going to make much better profitability going forward. So more pieces of equipment, more solution, the greater profit.

他們花了很長時間完成驗證過程，現在開始一致地使用它們。我認為這將有利於未來的財務預測。顯然，我們擁有的設備越多，使用率就越高，而且——因為它們對公司來說利潤率很高，所以未來的獲利能力將會好得多。因此，設備越多，解決方案越多，利潤就越大。

Got it. Sounds good, thank you. That’s all for me.

知道了。聽起來不錯，謝謝。這就是我的全部。

Okay. Thank you for the question.

好的。謝謝你的提問。

(Operator Instructions) John Nelson.

（操作員說明）約翰·納爾遜。

Congrats to you, Halden and the team on reaching profitability. I'm very impressed with the results to-date. Thank you.

祝賀您、哈爾登和團隊實現盈利。迄今為止的結果給我留下了深刻的印象。謝謝。

Thank you for that. We are --

謝謝你。我們是--

I have -- first question is on the ethylene oxide market. I know you've applied for a DoD grant. Is there any progress on that?

我的第一個問題是關於環氧乙烷市場。我知道你已經申請了國防部撥款。這方面有進展嗎？

No. The grant was given to -- we're fighting up against VHP type people and they're on the committee, so we didn't make it on this grant. Not because we're not better and quicker, but it's just the politics. However, it is opening up various avenues of companies that are using it privately, and I think we'll be able to effectively use our project much quicker than this grant.

不。這筆撥款是給我們的——我們正在與 VHP 類型的人作鬥爭，他們是委員會的成員，所以我們沒有利用這筆撥款。並不是因為我們沒有做得更好、更快，而是因為政治原因。然而，它為私人使用它的公司開闢了各種途徑，我認為我們將能夠比這筆贈款更快地有效地使用我們的專案。

Yes, I've seen articles on a growing number of lawsuits from the release of gas during production, storage and transport. So I was kind of curious if you were getting more -- any more inquiries on the substitution for SteraMist for ethylene oxide?

是的，我看到越來越多的文章涉及因生產、儲存和運輸過程中天然氣洩漏而提起的訴訟。所以我有點好奇您是否對 SteraMist 替代環氧乙烷有更多疑問？

Yes, I think everybody is concerned, and especially since the EPA is marketing it as a carcinogenic material, I think that in the future there should be a lot more interest. The problem that I see initially is, and which was part of the grant, was we couldn't give a substitute for ethylene oxide. They wouldn't allow that.

是的，我認為每個人都很關心，特別是因為美國環保署將其作為致癌材料進行行銷，我認為將來應該會有更多的興趣。我最初看到的問題是，我們無法提供環氧乙烷的替代品，這也是撥款的一部分。他們不允許這樣做。

So what they wanted was just somebody to come in after they use the ethylene oxide to mitigate it. But they spend millions of dollars on these sterilizers in buildings in large hundreds of thousands of square feet. And they don't want to throw out their equipment, even though we could retrofit our product into it, which I'm hoping some of these private companies realize that in the future.

所以他們想要的只是在他們使用環氧乙烷來緩解它之後有人進來。但他們花費數百萬美元在數十萬平方英尺的建築物中購買這些消毒器。他們不想丟掉他們的設備，儘管我們可以對我們的產品進行改造，我希望其中一些私人公司將來能夠意識到這一點。

Okay. Understood.

好的。明白了。

And Dr. Shane if I may add.

還有謝恩博士，請容許我補充一下。

Sure.

當然。

So John, also for your knowledge, the company I referenced that we're working with on conducting the studies with spice production, their main goal is to replace EtO. And we're gathering the formal studies to be able to share that with the public and move forward with other facilities in doing so.

約翰，據我所知，我提到的與我們合作進行香料生產研究的公司，他們的主要目標是取代環氧乙烷。我們正在收集正式研究，以便能夠與公眾分享，並與其他機構一起推進這項工作。

Excellent. Thank you. My second question is related to -- I know one of your projects in recent years was the ambulance market. Can you tell me if there's any progress being made on penetrating that?

出色的。謝謝。我的第二個問題與——我知道你們近年來的項目之一是救護車市場。您能告訴我在滲透方面是否取得了任何進展嗎？

There is. We continue to work with our group in Technimount in Canada on BMS. They have quite a few large manufacturers of ambulances where we're trying to be able to become a full turnover package of ambulance and decon system. It's a long-term process, of course. We just had to start at the education process and now we are running the tests and finding ways to work with them in using our transport. So it is in process and still very active.

有。我們繼續與加拿大 Technimount 團隊就 BMS 進行合作。他們有相當多的大型救護車製造商，我們正在努力成為救護車和淨化系​​統的完整週轉包。當然，這是一個長期的過程。我們只需從教育過程開始，現在我們正在運行測試並尋找與他們一起使用我們的交通工具的方法。所以它正在進行中並且仍然非常活躍。

Okay, great. I have a brother who is a doctor who has talked to the ambulance crew at his hospital. And they sounded like they were very enthusiastic about some type of product like that being available. So I hope it comes to fruition for your company.

好的，太好了。我有一個兄弟，他是一名醫生，曾與他醫院的救護人員交談過。他們聽起來似乎對某種類型的產品非常熱衷。因此，我希望貴公司能夠取得成果。

Yes, it will, John. And if you send any information, we'll be more than glad to have our sales team contact them. Thank you.

是的，會的，約翰。如果您發送任何訊息，我們將非常高興讓我們的銷售團隊與他們聯繫。謝謝。

Definitely.

確實。

Okay, great. Third question is, you had a big jump in accounts receivable this quarter. Is the -- are the receivables turnover cycle fast, slow, can you give me some kind of indication on how soon you expect to on average realize the receivables?

好的，太好了。第三個問題是，本季應收帳款大幅成長。應收帳款週轉週期是快還是慢，您能否給我一些指示，說明您預計平均需要多長時間才能實現應收帳款？

I'm going to defer that to Joe. It depends, I think, on the receivable in the market. But Joe, go ahead.

我會把這件事交給喬。我認為這取決於市場上的應收帳款。但是喬，繼續吧。

Yes, I mean, the big spike in revenue was for the large -- in receivables due to the large increase in revenue for the quarter. And some of those customers had upfront payment terms we've already collected, and most of the others are either net 30 or net 60. So we should realize the collection of those receivables this quarter.

是的，我的意思是，由於本季營收大幅成長，應收帳款的收入大幅成長。其中一些客戶擁有我們已經收集到的預付款條件，而其他大多數客戶要么是淨 30 要么是淨 60。所以我們應該在本季實現這些應收帳款的收回。

Good. And let's see the -- there's been a big recall from Boar's Head in the deli meats section of the food industry. So I was wondering if you have any specific -- you mentioned meatpacking as one market, but have you been focusing at all on that or any -- I would think that they would be a good contact for potential business, given this how much it's going to cost them in lawsuits. So just an idea, but can you respond to that?

好的。讓我們看看食品業熟食肉類部門的 Boar's Head 進行了大規模召回。所以我想知道你是否有任何具體的——你提到肉類包裝是一個市場，但你是否一直專注於這個或任何一個——我認為他們將是潛在業務的良好聯繫人，考慮到它的價格會讓他們付出訴訟的代價。這只是一個想法，但你能回應一下嗎？

Well, I mean, we would be good in different areas of that, but the listeria that they're having the recall over is the reason why none of us can find Boar's Head in the deli counter. So I think, I don't know if EJ has any update. Has anybody from Boar's Head reached out to us or have we reached out to them?

好吧，我的意思是，我們會在不同領域做得很好，但他們召回的李斯特菌是我們沒有人在熟食櫃檯找到野豬頭的原因。所以我想，我不知道EJ是否有任何更新。野豬頭的有人聯絡過我們還是我們聯絡過他們？

They have investigated in us. They were certainly on our website, and we've reached out to a few parties in the company hoping to hear back, but we are on top of it. We heard the same news, and we do have current users on our backpack in the meat production to be able to get on the phone with them as referrals. So we are on top of that.

他們對我們進行了調查。他們肯定在我們的網站上，我們已經聯繫了公司的一些相關方希望得到回复，但我們已經掌握了一切。我們聽到了同樣的消息，而且我們確實有肉類生產領域的現有用戶，可以透過電話與他們聯繫作為推薦。所以我們是最重要的。

Just be careful with the Liverwurst.

只是要小心肝香腸。

Good one. My next question is, you mentioned in the prior quarter transcript and called the biofuel industry was also an area to target. And that iHP is known to be the fastest and second strongest oxidizing agent known to mankind. Has there been anything, any new developments in that particular area?

好一個。我的下一個問題是，您在上一季的記錄中提到並稱生物燃料行業也是一個目標領域。iHP 被認為是人類已知的最快、第二強的氧化劑。那個特定領域有什麼新的進展嗎？

Not yet. We are looking at some grant proposals, which I think we could possibly qualify for. But the -- again, being so busy and being a small company, and there's just so much application -- many different applications for this product worldwide, like we're starting to handle and take calls from the ones that I think are going to be immediate utilizers and long-term clients. This is a great opportunity in biofuels, and it's going to take a long time and some really good research. And we do have identified a partner that is willing to do the research. And it's just getting the parties together and having that time which we've been focusing on revenue production.

還沒有。我們正在考慮一些撥款提案，我認為我們可能有資格獲得這些提案。但是，再次強調，作為一家小公司，非常忙碌，並且該產品在全球範圍內有很多不同的應用程序，就像我們開始處理和接聽我認為將要接聽的電話一樣。這是生物燃料領域的絕佳機會，需要很長時間和一些非常好的研究。我們確實已經找到了願意進行這項研究的合作夥伴。這只是讓各方聚集在一起，享受我們一直專注於創造收入的時間。

Okay. Good. And data centers, any update there?

好的。好的。資料中心有什麼更新嗎？

The same thing there with the amount of new data centers being built, they're a little hesitant to use a product like this because they don't truly understand the fact that we are non-caustic and we don't damage. But it's going to require some testing on a smaller scale first to make sure and long-term testing. So it's something that -- in agreement with you, they all should be interested in utilizing it in the data center industry. It's finding the right partner to attempt it and to try it on a test and to go ahead and validate the positive effects of using a product that's iHP and doesn't have the causticness and has phenomenal material compatibility.

同樣的事情是，隨著大量新資料中心的建設，他們對於使用這樣的產品有點猶豫，因為他們並沒有真正理解我們不具有腐蝕性並且不會造成損壞的事實。但首先需要進行一些小規模的測試，以確保長期測試。因此，根據您的同意，他們都應該有興趣在資料中心行業中使用它。它正在尋找合適的合作夥伴進行嘗試並進行測試，並繼續驗證使用 iHP 產品的積極效果，該產品不具有腐蝕性且具有出色的材料相容性。

Okay. Thanks. And then on the SIS products, that's fairly new that at least the market for those kinds of products, especially in biological safety and other decontamination chamber, seems to be enormous. How are you getting the word out on this newer area of your product line?

好的。謝謝。然後就 SIS 產品而言，這是相當新的，至少此類產品的市場，特別是在生物安全和其他淨化室中，似乎是巨大的。您如何宣傳您產品線的這一新領域？

I'm going to let EJ answer that.

我會讓EJ來回答這個問題。

Yes, Dr. Shane. So it's truly a very exciting project. We have established relationships with enclosure manufacturers through the multiple shows and just throughout the years. And it's now moving very fast with a lot of them to kind of turn over this package.

是的，肖恩博士。所以這確實是一個非常令人興奮的項目。多年來，我們透過多次展會與外殼製造商建立了合作關係。現在他們中的許多人正在快速地移交這個包裹。

And more importantly, once we are able to use their customer base as well in selling enclosures with iHP, it provides us an entry into a wide range of facilities who get familiar with it, and then wanting our other systems for other area decons. And that's starting to come to light and more frequently each time. So it's now turning into a turnkey integration and then a quick sale after that. So we have some very familiar, well recognized partners in the industry.

更重要的是，一旦我們能夠利用他們的客戶群以及透過 iHP 銷售機櫃，我們就可以進入各種熟悉它的設施，然後希望我們的其他系統用於其他區域的裝飾。這種情況開始逐漸暴露出來，而且每次都更加頻繁。所以現在它變成了交鑰匙集成，然後是快速銷售。因此，我們在業界擁有一些非常熟悉、公認的合作夥伴。

Okay, very good. That’s all I have. Thanks very much.

好的，非常好。這就是我所擁有的一切。非常感謝。

Thank you. There are no further questions in the queue. I'll now hand the conference back to management for closing remarks. Please go ahead.

謝謝。隊列中沒有其他問題。現在我將把會議交還給管理階層進行閉幕致詞。請繼續。

I just want to thank everybody once again for joining. And I hope you all, wherever you are in the world, have a pleasant day or evening, and tune in for our next conference call coming up at the end of the quarter. Thank you all. Be safe.

我只想再次感謝大家的加入。我希望你們所有人，無論您身在世界何處，都度過愉快的一天或晚上，並收聽我們在本季度末舉行的下一次電話會議。謝謝大家。確保安全。

Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

謝謝大家。今天的活動到此結束。此時您可能會斷開連接，並度過美好的一天。感謝您的參與。