TOMI Environmental Solutions Inc (TOMZ) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the TOMI Environmental Solutions, Inc. third quarter 2024 financial results call.

女士們、先生們，大家好，歡迎參加 TOMI Environmental Solutions, Inc. 2024 年第三季財務業績電話會議。

(Operator Instructions)

（操作員指示）

Please note, this conference is being recorded. I will now turn the conference over to your host, Rosalyn Christian from IMS Investor Relations. Ma'am the floor is yours.

請注意，本次會議正在錄製。現在我將會議交給主持人，IMS 投資者關係部門的 Rosalyn Christian。女士，請您發言。

Thank you and thank you for joining us today for the TOMI Environmental Solutions investor update conference call. On today's call is TOMI's CEO and Chairman of the board, Dr. Halden Shane; TOMI's COO, E.J. Shane; and TOMI's CFO, Joe Rzepka.

感謝您，也感謝您今天參加 TOMI 環境解決方案投資者更新電話會議。參加今天電話會議的是 TOMI 的執行長兼董事會主席 Halden Shane 博士；TOMI 的營運長 E.J. 肖恩；以及 TOMI 的財務長 Joe Rzepka。

Dr. Shane will provide an overview of recent business highlights. E.J. will report on future plans. Joe will provide the financials and all will be available for the Q&A. A telephone replay of today's call will be available through November 6, 2024, the details of which are included in the company's press release dated October 24, 2024.

Shane 博士將概述近期的業務亮點。E.J.將報告未來計劃。Joe 將提供財務信息，所有資訊均可用於問答。今天的電話會議重播將持續到 2024 年 11 月 6 日，詳情已包含在本公司 2024 年 10 月 24 日的新聞稿中。

A webcast replay will also be available at TOMI's website, www.steramist.com.

網路直播重播也將在 TOMI 的網站 www.steramist.com 上提供。

Please note that information contained within this presentation is relevant only to the date which recorded October 30, 2024, 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 by the Private Securities Litigation Reform Act of 1,995.

請注意，本簡報中包含的資訊僅與 2024 年 10 月 30 日記錄的日期相關，因此請注意，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和口頭聲明可能構成 1995 年《私人證券訴訟改革法案》所定義的前瞻性聲明。

These forward-looking statements should be evaluated in light of important risk factors that could cause our 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.

這些前瞻性陳述應根據可能導致我們的實際結果與預期結果有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。本公司不承擔本次電話會議召開後更新這些前瞻性聲明的義務。

In addition, to 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 October 30, 2024.

此外，TOMI 將在本次電話會議中討論某些非 GAAP 財務指標。該公司採用非公認會計準則衡量指標，因為該公司認為這些指標提供了有關營運績效的有用信息，投資者應結合公認會計準則衡量指標來考慮這些資訊。這些非 GAAP 指標與可比較 GAAP 指標的對帳包含在 2024 年 10 月 30 日的收益報告中。

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

現在我將電話轉給 TOMI 董事長兼執行長 Halden Shane 博士。

Thank you, Roz, and good afternoon, everyone. Thank you for joining us today to discuss to TOMI Environmental Solutions' third quarter 2024 financial results. With me today is our CFO, Joe Rzepka, who will provide a detailed financial overview, followed by E.J. Shane, our COO, with the company's update on its strategic direction and growth potential.

謝謝你，羅茲，大家下午好。感謝您今天加入我們討論 TOMI Environmental Solutions 2024 年第三季的財務表現。今天與我一起的是我們的財務長 Joe Rzepka，他將提供詳細的財務概述，隨後是 E.J.我們的營運長 Shane 介紹了公司最新的策略方向和成長潛力。

I am pleased to report that TOMI achieved another milestone, making our second consecutive profitable quarter for the 2024 calendar year. This performance reflects higher revenue, improved gross margins and carefully executed reductions in operating expense.

我很高興地報告，TOMI 取得了另一個里程碑，這是我們 2024 日曆年連續第二個季度獲利。這一業績體現了更高的收入、更高的毛利率以及謹慎執行的營運費用削減。

In addition, we achieved positive cash flow this quarter, driven by stronger accounts receivable turnover and tighter control of our outgoing cash through disciplined management of expenditures. Our momentum continues as we broaden our customer base and secure new strategic agreements and partnerships. These achievements are a direct result of the resilience and commitment of our team, the support of our long-term partners and the strength of our business model.

此外，本季我們實現了正現金流，這得益於更強勁的應收帳款週轉率以及透過嚴格的支出管理對現金流出的更嚴格控制。隨著我們擴大客戶群並達成新的策略協議和合作夥伴關係，我們的發展勢頭持續增強。這些成就直接歸功於我們團隊的韌性和承諾、長期合作夥伴的支持以及我們商業模式的實力。

Our revenue for the quarter was approximately $2.5 million, representing a 73% increase compared to the third quarter of the prior year. This growth was primarily driven by strong demand for our mobile equipment, which has increased by 90% in 2024 compared to 2023 and our IHP service revenue, which recognized revenues of approximately $650,000, making a record for the division's quarterly performance surpassing historical averages of approximately $250,000 per quarter.

本季我們的營收約為 250 萬美元，與去年同期第三季相比成長了 73%。這一成長主要得益於對我們行動裝置的強勁需求，2024 年行動裝置需求較 2023 年成長了 90%，以及我們的 IHP 服務收入，該部門的季度業績創下了新高，超過了每季度約 25 萬美元的歷史平均水平。

We continue to see strong international sales for this year. The first 9 months of 2024 shows international sales growth at 82% when compared to 2023. And BIT solution sales have also increased by 13% year-to-date. While our partnership with EMAQ announced in the second quarter continues to grow, effectively leveraging combined strengths and resources to accelerate business development and expand opportunities.

今年我們的國際銷售持續保持強勁。2024 年前 9 個月的國際銷售額與 2023 年相比成長了 82%。今年迄今為止，BIT 解決方案的銷售額也成長了 13%。我們在第二季宣布的與EMAQ的合作關係持續發展，有效利用綜合優勢和資源來加速業務發展並擴大機會。

The third quarter delivered support to key clients such as Pfizer and Thermo Fisher Scientific, while successfully onboarding new customers, including Integra LifeSciences, Curia and multiple smaller engagements within the food safety sector.

第三季為輝瑞和賽默飛世爾科技等主要客戶提供了支持，同時成功吸收了新客戶，包括 Integra LifeSciences、Curia 以及食品安全領域的多個小型項目。

These new relationships are expected to drive sustained growth through both capital equipment sales and recurring service contracts. The addition of these valued clients further reinforces IHP's leadership in advanced decontamination solutions, extending our presence across the life science industry and other markets.

這些新的關係預計將透過資本設備銷售和定期服務合約推動持續成長。這些重要客戶的加入進一步鞏固了 IHP 在先進淨化解決方案領域的領導地位，擴大了我們在生命科學產業和其他市場的影響力。

We remain on track with the times for our ongoing custom integrations. The California-based company contracted in February is nearing acceptance and will soon be operational. Additionally, the system designed for the global leader in advanced laboratory services contracted in June has been accepted and is now in the manufacturing phase.

我們將繼續與時俱進，並持續進行客製化整合。這家總部位於加州的公司於二月簽約，目前已接近驗收階段，並將很快投入營運。此外，6 月為全球領先的先進實驗室服務商設計的系統已獲得驗收，目前正處於製造階段。

TOMI is making significant strides into the consumer health care market through partnerships with industry leaders such as Edgewell Personal Care and Reckitt, Benckiser Group plc. These collaborations highlight the versatility of Stermist's technology across multiple industries, enabling us to unlock new markets while continuing to support our core segments.

TOMI 透過與 Edgewell Personal Care 和 Reckitt, Benckiser Group plc 等行業領導者合作，在消費者保健市場取得了重大進展。這些合作凸顯了 Stermist 技術在多個產業的多功能性，使我們能夠開拓新市場，同時繼續支援我們的核心領域。

Looking ahead, we remain focused on accelerating international growth, launching new products and programs and carefully managing expenses. This disciplined approach has strengthened our performance this quarter, and we remain committed to delivering sustainable organic growth and profitability moving forward. I'll now turn the call over to Joe.

展望未來，我們將繼續致力於加速國際成長、推出新產品和新項目以及謹慎管理開支。這種嚴謹的方法增強了我們本季的業績，我們將繼續致力於實現可持續的有機成長和獲利能力。我現在將電話轉給喬。

Thank you, Dr. Shane, and good afternoon, everyone. I'll provide a brief overview of our financial results for the third quarter of 2024 compared to the same prior year period. Our consolidated net revenue was $2,542 million compared to $1,470 million, Increasing approximately 73%. Consolidated gross profit margin was 61.4% compared to 55% attributable to our product mix and sales and the increased demand for our mobile equipment.

謝謝您，Shane 博士，大家下午好。我將簡要概述我們 2024 年第三季與去年同期相比的財務表現。我們的合併淨收入為 25.42 億美元，去年同期為 14.7 億美元，成長約 73%。綜合毛利率為 61.4%，而先前為 55%，這得益於我們的產品組合和銷售以及對行動裝置的需求增加。

The consolidated operating profit was $149,000 compared to a loss of $901,000, representing an increase of $1,050 million or 117%. The increase in our profit was attributable to higher sales and gross profit in the current year period. Our consolidated net profit was $59,000 or $0 per basic and diluted share compared to a net loss of $901,000 or loss of $0.05 per basic share.

合併營業利潤為 149,000 美元，而去年同期虧損 901,000 美元，增加 10.5 億美元，增幅為 117%。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 59,000 美元，即每股基本淨利潤和稀釋淨利潤為 0 美元，而淨虧損為 901,000 美元，即每股基本虧損 0.05 美元。

Moving on to the balance sheet. As of September 30, 2024, our cash and cash equivalents were approximately $809,000, working capital was $6.9 million, and our shareholders' equity was $7.4 million. TOMI was cash flow positive for Q3, driven by increased revenue and the cost reduction efforts mentioned in the June 6th press release.

繼續討論資產負債表。截至 2024 年 9 月 30 日，我們的現金及現金等價物約為 809,000 美元，營運資金為 690 萬美元，股東權益為 740 萬美元。托米受 6 月 6 日新聞稿中提到的收入增加和成本削減措施的推動，第三季的現金流為正。

Now I turn the call over to E.J. Shane to provide insight on current company activities.

現在我將電話轉給 E.J. Shane 提供有關當前公司活動的見解。

Thank you, Joe, and good afternoon, everyone.

謝謝你，喬，大家下午好。

As part of our budget optimization, we have scaled back on trade show activity and reallocated resources towards more effective lead generation strategies such as referrals and client references.

作為預算優化的一部分，我們縮減了貿易展活動，並將資源重新分配到更有效的潛在客戶生成策略上，例如推薦和客戶推薦。

While trade shows, like the upcoming AALAS events offer valuable networking opportunities, our strong reputation has enabled us to effectively attract new business and expand the customer base. Recently, we launched a targeted outreach campaign focused on domestic manufacturers of clean room construction and general building companies to incorporate our decontamination builds into their project bids for awareness of our custom engineered system and hybrid. This campaign engages both existing partners and new prospects across sectors, including prefabricated clean rooms, construction design firms and mobile healthcare products.

雖然即將舉行的 AALAS 活動等貿易展會提供了寶貴的交流機會，但我們良好的聲譽使我們能夠有效地吸引新業務並擴大客戶群。最近，我們發起了一項有針對性的推廣活動，重點針對國內潔淨室建築製造商和一般建築公司，將我們的淨化建築納入他們的專案投標中，以提高他們對我們客製化工程系統和混合系統的認識。這項活動吸引了各領域的現有合作夥伴和新客戶，包括預製無塵室、建築設計公司和行動醫療產品。

Our current CES and hybrid projects are at various stages of manufacturing and acceptance, we are optimistic about securing additional CES and hybrid contracts before the year- end. These new contracts are currently scheduled for installations beginning in Q2 and extending through Q4 of the year 2025. In parallel, we are collaborating with existing customers such as ITH Pharma in the United Kingdom and Soli Organic, a leading national grower of fresh and organic produce in the states, on expanding with SteraMist iHP on additional automated systems.

我們目前的 CES 和混合動力項目正處於製造和驗收的不同階段，我們對在年底前獲得更多 CES 和混合動力合約持樂觀態度。這些新合約目前計劃於 2025 年第二季開始安裝，並持續到第四季。同時，我們正在與英國的 ITH Pharma 和美國領先的新鮮有機農產品種植商 Soli Organic 等現有客戶合作，利用 SteraMist iHP 擴展其他自動化系統。

While discussions are still in the early stages, these developments highlight the value our iHP technology provides to customers. As our current channel of projects continue to reach maturity, waiting on customer and partner decisions and timelines for the estimated $8 million in active proposals, we remain focused on proactive strategies to build our installation pipeline. Efforts such as the mentioned targeted outreach to contractors and designers and maintaining close relationship with key contacts are instrumental in sustaining our momentum with these product lines.

雖然討論仍處於早期階段，但這些發展凸顯了我們的 iHP 技術為客戶提供的價值。隨著我們目前的專案管道不斷成熟，等待客戶和合作夥伴做出決定以及預計 800 萬美元有效提案的時間表，我們仍然專注於積極主動的策略來建立我們的安裝管道。上述針對承包商和設計師的定向推廣以及與關鍵聯繫人保持密切關係等努力對於維持這些產品線的發展勢頭至關重要。

As Dr. Shane highlighted on today's call, a key achievement this year has been the strong performance of our iHP corporate service and international revenues, both of which we continue to demonstrate solid growth as we close out this year. Our iHP service revenue pipeline currently exceeds $1 million, and these opportunities typically display shorter sales cycle. Further, this amount does not include our contracted relationships, which we have fulfilled for the 2024 year and will restart in 2025 with an initial value of $600,000. While some deployments in the pipeline are scheduled for early Q1, several opportunities remain on track to close by year-end.

正如 Shane 博士在今天的電話會議上所強調的那樣，今年的一項重要成就是我們的 iHP 企業服務和國際收入的強勁表現，在今年年末，這兩項業務都繼續呈現穩健的成長。我們的 iHP 服務收入管道目前超過 100 萬美元，這些機會通常具有更短的銷售週期。此外，該金額不包括我們的合約關係，我們已經履行了 2024 年的合約關係，並將於 2025 年重新開始，初始價值為 60 萬美元。雖然一些正在籌備中的部署計劃在第一季初進行，但仍有幾個機會預計在年底前完成。

As recently announced, SteraMist has successfully entered into India, a key focus of TOMI's growth strategy. We will be exhibiting our technology with our new partner, STS Technocrat from this November and already have a pipeline building via demonstrations and trials with end users in the region.

正如最近宣布的那樣，SteraMist 已成功進入印度市場，這是 TOMI 成長策略的重點。我們將從今年 11 月開始與我們的新合作夥伴 STS Technocrat 一起展示我們的技術，並且已經透過與該地區的最終用戶的演示和試驗建立了管道。

We also reached a major milestone with Fresenius Kabi that expanded in the use of SteraMist iHP to a facility in South Africa. This marks their fourth location adopting our technology, following successful deployments in Chile, Portugal and Brazil, totaling over $1 million in sales to date in SteraMist iHP equipment for Fresniance. And they continue to increase awareness among many other locations. These global implementations reflect the growing trust and SteraMist in our ability to meet the diverse needs of clients across multiple continents.

我們也與費森尤斯卡比 (Fresenius Kabi) 達成了一項重要里程碑，將 SteraMist iHP 的使用範圍擴展到南非的一家工廠。這是繼智利、葡萄牙和巴西成功部署之後，他們在第四家工廠採用我們的技術，迄今為止，Fresniance 的 SteraMist iHP 設備總銷售額已超過 100 萬美元。他們還在繼續提高許多其他地區的知名度。這些全球實施反映了客戶對 SteraMist 日益增長的信任以及對我們滿足各大洲客戶多樣化需求的能力。

We anticipate further international growth by year-end, including a new partnership in South Africa with a company specializing in clean room and controlled environments. In Switzerland, we expect our full room fogging device to be integrated into the operations of an international firm with a presence across the Americas, Asia Pacific and Europe. This organization's core business spans solutions for semiconductors, life sciences and data centers.

我們預計到年底將實現進一步的國際成長，包括與南非專門從事無塵室和受控環境的公司建立新的合作夥伴關係。在瑞士，我們期望我們的全室煙霧設備能夠融入一家業務遍及美洲、亞太地區和歐洲的國際公司的營運中。該組織的核心業務涵蓋半導體、生命科學和資料中心的解決方案。

Additionally, we are in early discussions to onboard a third partner in Australia, a second partner in South Korea focused on emergency services. We are also working on the occupational safety equipment distributor in Hungary and have revised conversations with company leading productivity and validation projects in the United States territory of Puerto Rico and the neighboring Caribbean Islands for the pharmaceutical and food industries.

此外，我們正在進行初步討論，尋找澳洲的第三個合作夥伴，以及韓國的第二個專注於緊急服務的合作夥伴。我們也正在與匈牙利的職業安全設備經銷商合作，並與美國領土波多黎各和鄰近加勒比群島的製藥和食品行業的領先生產力和驗證項目的公司進行了修改後的對話。

As recently announced this quarter, we successfully deployed our new SteraMist integrated system, or SIS, at the National Institute of Forensic Medicine in Malaysia for approximately $133,000. We currently have four pending proposals in the region with key partners and are optimistic about securing the next award by the end of the year for a similar amount.

正如本季最近宣布的那樣，我們成功地在馬來西亞國家法醫研究所部署了新的 SteraMist 整合系統（SIS），耗資約 133,000 美元。目前，我們在該地區與主要合作夥伴有四項待決提案，並且有信心在今年年底前獲得下一筆金額相近的合約。

The SIS product line now available for sale has generated strong interest and the SIS standalone or SISSA, aligns well with our SteraBox, which is also gaining market traction. The standalone may become our highest rated product offering.

現已上市銷售的 SIS 產品線引起了人們的強烈興趣，獨立的 SIS 或 SISSA 與我們的 SteraBox 非常契合，也正在獲得市場關注。獨立產品可能會成為我們評價最高的產品。

The combination of this delivery system is valuable across the life sciences, but other sectors as well, including medical devices, sensors and commercial applications for refurbished items. The SteraBox is customized in material and size to meet specific customer needs and budgets and the capabilities and versatility in the application alone of the standalone sets it up for success.

這種輸送系統的組合不僅對生命科學領域很有價值，而且對其他領域也有價值，包括醫療設備、感測器和翻新產品的商業應用。SteraBox 的材料和尺寸均經過定制，以滿足特定客戶的需求和預算，並且其獨立應用的功能和多功能性為其成功奠定了基礎。

We remain committed to our ongoing collaboration with enclosure manufacturers to support the full SIS product line and anticipate receiving our first order by the end of the year. TOMI's manufacturing team is working closely with an Italian manufacturer to deliver a streamlined iHP isolator to the Virginia Commonwealth University, a long-time user of technology.

我們將繼續致力於與外殼製造商的持續合作，以支援整個 SIS 產品線，並預計在今年年底前收到我們的第一筆訂單。TOMI 的製造團隊正與一家義大利製造商密切合作，向該技術的長期用戶弗吉尼亞聯邦大學提供流線型 iHP 隔離器。

We also want to highlight our awareness of the various challenges currently affecting the food market. In response, we have proactively partnered with industry players and researchers to provide tailored solutions and support, ensuring we meet their evolving needs during critical times and in order to prevent contamination. The SteraMist Pro certified or SPC program is designed to ensure certified NCs are fully equipped to deliver disinfection and decontamination services with a focus on public health, safety and environmental sustainability.

我們也想強調我們對當前影響食品市場的各種挑戰的認識。作為回應，我們積極與行業參與者和研究人員合作，提供量身定制的解決方案和支持，確保我們在關鍵時期滿足他們不斷變化的需求並防止污染。SteraMist Pro 認證或 SPC 計畫旨在確保經過認證的 NC 完全具備提供消毒和淨化服務的能力，並專注於公共衛生、安全和環境永續性。

As part of this strategic shift, we will no longer maintain the TOMI Service Network or TSN in its current structure. Instead, we have launched the SPC, a new and on demand program available to all customers across key sectors, including life sciences, health care, food safety and commercial markets.

作為這項策略轉變的一部分，我們將不再維護目前結構的 TOMI 服務網路或 TSN。相反，我們推出了 SPC，這是一項新的按需計劃，可供生命科學、醫療保健、食品安全和商業市場等關鍵領域的所有客戶使用。

This initiative reflects our proactive approach by harnessing the expertise of our partners and key relationships to enhance TOMI's brand and expand our global footprint together with industry experts. We continue to drive innovation and contamination control and validation practices. With SteraMist iHP, we now offer transformative technology that serves four critical industries, supporting everything from routine cleaning and complex cleanroom, decontamination to patient health care environments, biohazard management and border control operations along with an educational platform. Our network of domestic and international service providers plays a crucial role in advancing this mission and broadening our impact worldwide across a diverse list of markets available for iHP. Our expanded product offerings and scalable solutions position us very well for sustained growth across all four of our divisions.

這項措施體現了我們的積極主動態度，即利用合作夥伴和關鍵關係的專業知識來提升 TOMI 的品牌，並與行業專家一起擴大我們的全球影響力。我們繼續推動創新和污染控制和驗證實踐。借助 SteraMist iHP，我們現在提供服務於四個關鍵行業的變革性技術，支持從常規清潔和複雜潔淨室、淨化到患者醫療保健環境、生物危害管理和邊境管制操作以及教育平台的一切。我們的國內和國際服務提供者網路在推動這項使命以及擴大我們在 iHP 可用的各種市場的全球影響力方面發揮著至關重要的作用。我們擴大的產品供應和可擴展的解決方案使我們四個部門的持續成長處於有利地位。

Thank you, everyone and I will turn the call back over to Dr. Shane for closure.

謝謝大家，我會將電話轉回給 Shane 醫生來結束對話。

Thank you, Elissa and Joe. TOMI's performance continues to reflect the quality and diversity of our products that are all driven by our patented BIT platform. We had good growth driving across all businesses with particular strength internationally, our iHP or in house service and our mobile products. And we see an opportunity to drive considerable operating leverage in the business as we grow.

謝謝你，艾莉莎和喬。 TOMI 的表現持續反映出我們產品的品質和多樣性，而這些都由我們專利的 BIT 平台所驅動。我們所有業務都實現了良好的成長，尤其是在國際業務、iHP 或內部服務和行動產品方面。隨著業務的成長，我們看到了推動巨大經營槓桿的機會。

Looking ahead, we remain well positioned to execute on our next phase of growth going into 2025 and beyond. As TOMI continues to innovate for a safer world, I want to thank you for your continued support and confidence in TOMI Environmental Solutions.

展望未來，我們仍處於有利地位，可以在 2025 年及以後實現下一階段的成長。隨著 TOMI 不斷創新以創造更安全的世界，我要感謝您對 TOMI 環境解決方案的持續支持和信任。

And also don't forget to go out and vote next Tuesday. Good luck to everybody. Operator, you can open the call to questions.

還有別忘了下週二出去投票。祝大家好運。接線員，您可以打開電話詢問。

Thank you, sir.

謝謝您，先生。

(Operator Instructions)

（操作員指示）

Our first question is coming from Sameer Joshi with H.C. Wainwright.

我們的第一個問題來自 H.C. 的 Sameer Joshi。溫賴特。

Great, thanks. Joe congratulations on the positive cash flow and the positive net income order. Good to see the progress here.

太好了，謝謝。喬祝賀您的現金流為正，淨收入為正。很高興看到這裡的進展。

Thanks.

謝謝。

Yes. And thanks for providing a good, very good lay of the land and overview of the business. It was really helpful. Just, yes, just having a little bit on that front. On the iHP recurring revenues, how do you see like, what kind of visibility do you have? I know you mentioned that you have like $600,000 in the pipeline starting from next year. But can you just let us know like how long these contracts are? What is the visibility and repeatability of this?

是的。非常感謝您提供如此出色的情況和業務概述。這確實很有幫助。是的，只是在這方面有一點點。對於 iHP 經常性收入，您如何看待，您有什麼樣的了解？我知道您提到從明年開始您將有 60 萬美元的資金投入。但是您能告訴我們這些合約的期限嗎？它的可見性和可重複性如何？

It certainly the, so the $600,000 that is projected is alone for our custom engineered systems. And now that the latest long-term ones that we've been waiting for that will be using it 8 or so times a day would be the, the two installations at Merck, and that'll be a real game changer in our solution model and that will start fresh next year. And then that as we continue to build on the CES will become much easier to continue projecting in terms of solution use. I say that knowing that some facilities, it will depend upon their production lines. So for instance, the partner in iTH will use their system every time they change production on a new drug. So that varies based on their business model, but that is on the solution.

確實如此，因此預計的 60 萬美元僅用於我們的客製化工程系統。現在，我們一直在等待的最新的長期設備是默克的兩台裝置，每天將使用 8 次左右，這將是我們解決方案模型的真正改變，並將於明年重新開始。然後，隨著我們繼續在 CES 上發展，在解決方案使用方面繼續進行預測將變得更加容易。我說知道一些設施，這將取決於他們的生產線。例如，iTH 的合作夥伴每次改變新藥的生產時都會使用他們的系統。這取決於他們的商業模式，但這就是解決方案。

Okay. So, I think the bottom line is that probably your 650 during this quarter is repeatable and expected to grow over the next few quarters or how should we look at it?

好的。因此，我認為底線是，本季的 650 可能是可重複的，並且預計在接下來的幾個季度中會成長，或者我們應該如何看待它？

On service? Absolutely. That will continue to grow on the contracts that we do reoccurring. Now those are ones that again get contracted for the twice-a-year shutdowns required for them. I was referring to a PR we did on the solution for the 600,000 on CES. So that maintains as well. So you got two answers.

在服役？絕對地。我們簽訂的重複合約的數量將繼續增長。現在，這些公司又再次簽訂了每年兩次停工的合約。我指的是我們針對 CES 上 60 萬人的解決方案所做的公關工作。因此這也得以維持。所以你得到了兩個答案。

Yes. No, this is good because as you increase your installed base, so to speak, you are likely to get higher and higher current contracts, which are more repeatable over the next few quarters. On the food safety, good to see that your efforts are ongoing on that. In terms of revenue potential in during say during 2025, how do you see that industry developing for you?

是的。不，這是件好事，因為隨著您增加安裝基數，您可能會獲得越來越高的當前合同，這些合同在接下來的幾個季度中更具可重複性。關於食品安全，很高興看到你們正在為此做出持續努力。就 2025 年的收入潛力而言，您認為該產業將如何發展？

What was the last part to look to?

最後要注意的部分是什麼？

Just like outlook for maybe a qualitative outlook for the food safety industry in 2025 as far as your products?

就您的產品而言，您是否可以對 2025 年食品安全產業進行定性展望？

Yes, we're really excited about this industry. There's a significant increase in the ready to eat food market and we're continuing with many food safety organizations, including the FDA and the USDA, Purdue University. And we're engaging with industry conferences to network our food industry professionals. And I believe at the end, this is going to be a huge industry for our product as we move forward. So, we've increased it quite a bit since 2021. I think if I remember right, the percentage was like 288%, which is a lot, but it's also not as much as in comparison to our other markets, but it looks very bright for us.

是的，我們對這個行業感到非常興奮。即食食品市場正在顯著成長，我們將繼續與許多食品安全組織合作，包括 FDA、USDA、普渡大學。我們正在參與行業會議，以建立食品行業專業人士的聯繫。我相信，隨著我們不斷前進，最終這將成為我們產品的巨大產業。因此，自 2021 年以來，我們已經將其增加了不少。我想如果我沒記錯的話，這個比例是 288%，這是一個很大的數字，但與我們的其他市場相比也不是那麼多，但對我們來說，這是一個非常光明的前景。

And then just for the near-term sort of we are already in the fourth quarter. Should we expect sequential revenues to increase from these $2.5 million levels, maybe get back to the June quarter level in the fourth quarter?

從近期來看，我們已經進入第四季。我們是否應該預期連續收入將從 250 萬美元的水平上增加，甚至可能在第四季度回到 6 月季度的水平？

It's hard to tell, but I believe we should. We're hoping to do over $10 million for the year.

這很難說，但我相信我們應該這麼做。我們希望今年的營收能超過 1,000 萬美元。

Okay. Okay. Sounds good. And then it was just a few questions on the balance sheet. The accounts receivables, I saw it's nicely, I think around $600,000, $700,000 came in from that working capital. How do you see the or let me rephrase like what are the terms that you are looking at in terms of AR days on hand? And how is the recovery process?

好的。好的。聽起來不錯。然後就只問了幾個關於資產負債表的問題。我看到應收帳款很不錯，我認為大約有 60 萬到 70 萬美元來自該營運資金。您如何看待這個問題，或者讓我重新表達一下，就現有 AR 天數而言，您所關注的術語是什麼？恢復過程怎麼樣？

Joe?

喬？

The majority of our customers are net 30 for regular orders, equipment orders. The custom engineered systems have like four payments as the projects progress.

我們大多數客戶的常規訂單和設備訂單都是在 30 日內完成。隨著專案的進展，客製化工程系統有四次付款。

Okay. Thanks for that answer and last one, the inventory levels. Does this include mostly equipment or our solution? And also, is it work in progress or is it finished goods mostly?

好的。感謝您的回答，最後一個問題是庫存水準。這主要包括設備還是我們的解決方案？而且，它是正在進行的工作還是大部分是成品？

It's mostly equipment and a bit solution in inventory.

庫存中主要是設備和一些解決方案。

And meaning, that it is mostly finished goods, right?

意思是，它大部分都是成品，對嗎？

Yes.

是的。

Okay, good to know. Great. Thanks a lot for taking my questions.

好的，很高興知道。偉大的。非常感謝您回答我的問題。

Thank you so much.

太感謝了。

Thank you.

謝謝。

Our next question is coming from John Nelson, who is a private investor.

我們的下一個問題來自私人投資者約翰·尼爾森。

Hi. And team congrats again on the excellent results and the wonderful progress that you've made over the last couple of quarters.

你好。再次恭喜團隊在過去幾季取得的優異成績和顯著進步。

Thanks, John.

謝謝，約翰。

Questions. The can you give me an idea as to what kind of lag times We're talking about from hardware sales to the bit solution sales?

問題。您能否告訴我我們所談論的從硬體銷售到比特解決方案銷售的延遲時間是什麼樣的？

Oh, it's, I'll ask Joe that question. I think we've had like a 13% increase in our solution sales, which is good for our model going forward as far as the razor-razor blade. Hardware sales, it includes service. I don't know, Joe, you want to give some color on that a little?

哦，是的，我會問喬這個問題。我認為我們的解決方案銷售額成長了 13%，這對於我們未來的刮鬍刀刀片模式來說是件好事。硬體銷售，包含服務。我不知道，喬，你想對此稍微解釋一下嗎？

Yes, good solution sales were up 13% as we reported, and mobile equipment was up 90% year-over-year.

是的，正如我們所報導的，優質解決方案的銷售額成長了 13%，行動裝置的銷售額較去年同期成長了 90%。

Oh, no, they didn't. Right. And so I'm trying to get at is the amount of equipment sales. Is there some percentage correlation I should use as far as my calculations as far as your hardware sales resulting in X percent increase in solution sales?

噢，不，他們沒有。正確的。所以我想了解的是設備銷售量。就我的計算而言，我是否應該使用某種百分比相關性來計算您的硬體銷售額是否會導致解決方案銷售額增加 X%？

No.

不。

Those 2% increases.

這 2% 的成長。

Yeah, it's hard to do that because sometimes we'll sell a piece of hardware, and it will take like a year for them to integrate it into their systems and be functional and operational. So, I mean, it would be great, you know, and soon we'll probably have something like that will give us a KPI, that makes sense. But at the moment, I think next year we should have it in relationships to some of our bigger pharmaceutical companies.

是的，這很難做到，因為有時我們會出售一件硬件，他們需要一年的時間才能將其整合到他們的系統中並發揮功能和運作。所以，我的意思是，這會很棒，你知道，很快我們就會有類似的東西給我們一個 KPI，這是有意義的。但目前，我認為明年我們應該與一些較大的製藥公司建立合作關係。

Okay, great. And you know, the, at least in my opinion, TOMI has the best product on the market servicing various specialty markets. Any more details on how you're increasing the moving to increase the awareness and educate potential customers on the product is products that you have?

好的，太好了。而且你知道，至少在我看來，TOMI 擁有市場上最好的產品，服務於各種專業市場。您能否提供更多詳細信息，說明如何加強提高知名度並讓潛在客戶了解您的產品？

So, I mean, from a marketing standpoint, we're moving forward in many markets, when you just close your eyes and think about the application of this technology, it's so bright in relationship to what is available, and it can be applied almost in any industry or vertical. So we're working with the size of our company, we're working at the lower hanging fruit. I personally believe the food market processing is going to be terrific and it's going to be huge. There's a large need for it. It's, I want to say a $52 million to $70 billion market.

所以，我的意思是，從行銷的角度來看，我們正在許多市場上取得進展，當你閉上眼睛思考這項技術的應用時，它與現有的技術相比是如此光明，並且它幾乎可以應用於任何行業或垂直領域。因此，我們根據公司的規模開展工作，致力於實現最容易實現的目標。我個人相信食品加工市場將會非常出色，規模將會非常巨大。對此有很大的需求。我想說這是一個價值 5,200 萬到 700 億美元的市場。

And we're focusing on that. We're advertising for that. We're doing many studies in relationship for that. So once these studies start coming in and the larger companies start using it, then we'll have some really, really good news on that.

我們正專注於此。我們正在為此做廣告。我們正在對此進行大量研究。因此，一旦這些研究開始出現並且大公司開始使用它，那麼我們就會得到一些非常非常好的消息。

Okay. Would your product be useful for somebody like, the McDonald's suppliers and the TreeHouse Foods and the Boar's Heads then?

好的。那麼，您的產品對麥當勞供應商、TreeHouse Foods 和 Boar's Heads 這樣的人有用嗎？

Yes, it would, I mean, there are lots of recalls going on and, we're work, I'm working on a piece that's going to go out social media soon. Yes, it would be, we've got, we reach out to all these companies and many of them are just shut their plants and it's a long process for them to go through and realize they need to disinfect or buy new equipment and/or wipe it down properly and use the mist to reopen. So, as soon as we hear about this news and we're involved with as many federal organizations getting response, we go out and try to service them and educate them. And it's a process, but we're doing it.

是的，我的意思是，有很多召回事件正在進行，我們正在工作，我正在寫一篇文章，很快就會在社群媒體上發布。是的，我們已經聯繫了所有這些公司，其中許多公司都關閉了工廠，這是一個漫長的過程，他們需要經歷這個過程才能意識到需要消毒或購買新設備和/或正確擦拭並使用噴霧重新開業。因此，我們一聽到這個消息，並與盡可能多的聯邦組織取得聯繫，盡力為他們提供服務和教育。這是一個過程，但我們正在做。

Okay, great. And, just as kind of a real-world example. There's an IV plant in North Carolina that was damaged by the hurricane. How would, or how will or how would SteraMist be used in the decontamination efforts?

好的，太好了。這只是現實世界中的一個例子。北卡羅來納州的一家 IV 工廠遭到颶風的破壞。SteraMist 將如何用於淨化工作？

That is, I guess what areas would it be applied?

是說我猜它會應用在哪些領域呢？

I'm going to let E.J. answer that because I think we have some color on that maybe. E.J.

我要讓 E.J.回答這個問題是因為我認為我們可能對此有所了解。E.J.

We are in touch with two plants actually that were damaged due to the hurricane in North Carolina. They will be using and calling us in for our services. But they have to do some reconstruction on their own first before we can come in. We're kind of the last step to commission to get them back into production.

我們實際上與北卡羅來納州因颶風而受損的兩家工廠取得了聯繫。他們將使用並致電我們尋求服務。但在我們進來之前，他們必須先自己進行一些重建。我們正處於讓它們恢復生產的最後一步。

Okay, great, thanks. And then I know that there's a number of huge GLP-1 plants that are in the production phase. Is that an opportunity that you're working towards for SteraMist?

好的，太好了，謝謝。然後我知道有許多大型 GLP-1 工廠正處於生產階段。這是您正在為 SteraMist 努力爭取的機會嗎？

It could be you know that it's the type of thing that we look into, and all these hormone type plants and production plants, it's a big phase going forward and definitely could use our product and should use our product again. It's another market, it's another vertical in life sciences that makes complete sense to go ahead to use SteraMist.

您可能知道，這是我們研究的東西，所有這些激素類植物和生產工廠，都是未來的重要階段，絕對可以使用我們的產品，也應該再次使用我們的產品。這是另一個市場，這是生命科學領域中的另一個垂直領域，繼續使用 SteraMist 是完全合理的。

Okay. And then on using the social media and things like Google and Perplexity and other AI searches, are you, trying to position to TOMI at the top of the queue for answers on disinfection issues?

好的。然後，在使用社交媒體和 Google、Perplexity 和其他人工智慧搜尋等工具時，您是否試圖將 TOMI 定位在有關消毒問題的答案隊列的頂部？

EJ?

EJ？

Yes, absolutely. We do a lot of work on our Google and SEO and certainly on social media. We routinely blast and even on the urgency of some of the contamination recalls, you've seen to date, we stay on top of it and it is mostly via the social media platforms.

是的，絕對是如此。我們在 Google 和 SEO 以及社群媒體上做了很多工作。我們會定期發布消息，甚至對於一些緊急的污染召回事件，正如您迄今為止所見，我們也會密切關注，並且主要透過社群媒體平台進行報告。

Okay. Good. And let's see. And you any additional color you can provide me with on how the transport is being received. And is it a have you had much in the way of sales of the transport?

好的。好的。讓我們看看。您還可以提供任何有關運輸接收情況的額外資訊嗎？您在運輸銷售方面取得多大的進展嗎？

So the, the transport product line, we did sell our initial production of that unit and we're going into kind of a bit of a redesign or model too on it. It received good feedback, but there's a third option in terms of powering it that we'd like to make sure the second round, incurs. So we're working in tandem still with our Canadian distributors on providing that for their contracts that we see coming up in the near future.

因此，對於運輸產品線，我們確實銷售了該單元的初始產量，並且我們也對其進行了某種重新設計或建模。它收到了良好的回饋，但在為其提供動力方面還有第三種選擇，我們希望確保第二輪能夠實現。因此，我們仍在與加拿大分銷商合作，為他們在不久的將來簽訂的合約提供這些服務。

Okay. I'm guessing that's a longer sales cycle than the other product line items. The environment system, which I decontaminate both air and surface and you have on your website safe and effective for air disinfection. I wondered if there were, have you gotten any orders for that in dealing with some of the airborne diseases like COVID and now the number one killer, which is tuber tuberculosis?

好的。我猜它的銷售週期比其他產品線更長。我使用的環境系統可對空氣和表面進行消毒，並且您的網站上提供的空氣消毒系統是安全有效的。我想知道，您是否接到任何命令來處理一些透過空氣傳播的疾病，例如 COVID，以及現在的頭號殺手結核病？

Yes, we use it all, I mean, you know, our clients use it all the time for that. You know, it's very effective against almost everything and there's some more deadly pathogens that are starting to surface and I don't know if it's just a timing issue because of certain events happening in the U.S. or if it's a real problem, but Malburg and Ebola-type diseases are starting to show in different parts of the United States, one specifically in the Midwest. And I think that if there is any serious problem, a lot of the people that have this for preventiveness will continue to use the product and protect their states.

是的，我們都使用它，我的意思是，你知道，我們的客戶一直在使用它。你知道，它對幾乎所有東西都非常有效，而且一些更致命的病原體開始出現，我不知道這是否僅僅是由於美國發生的某些事件而導致的時間問題，或者這是否是一個真正的問題，但馬爾堡和伊波拉類型的疾病開始在美國不同地區出現，特別是在中西部。我認為，如果出現任何嚴重問題，許多出於預防目的而購買該產品的人將繼續使用該產品並保護他們的國家。

So, yeah, there's no question that they can throw a lot at us and we're very effective against everything.

所以，是的，毫無疑問他們可以向我們發動猛烈攻擊，而我們卻能有效地應對一切。

Great. Okay. And kind of an area that may or may not progress, but I wanted to just check if there's any progress on the ethylene oxide replacement market and certification.

偉大的。好的。這是一個可能會或可能不會取得進展的領域，但我只是想檢查一下環氧乙烷替代市場和認證是否有任何進展。

You know, we're, we know that there are companies that have used ethylene oxide that are reaching out to us, but it would be premature for me to discuss any detail on it.

你知道，我們知道有些使用過環氧乙烷的公司正在與我們聯繫，但現在討論任何細節還為時過早。

Got it. Okay. The website also has your website has also an interesting case study on Soma.

知道了。好的。該網站還包含您的網站，其中還包含有關 Soma 的有趣案例研究。

And it's a mold remediation case study and I wondered if just thinking about that, you had an earlier relationship, possibly a partnership with Serve Pro has that developed into anything significant or does that have the potential to move forward in a manner that's significant to the company?

這是一個黴菌修復案例研究，我想，如果您只是想想的話，您是否曾與 Serve Pro 有過合作關係，可能是合作關係，這種合作關係是否已經發展成為重大的合作，或者這種合作關係是否有可能以對公司有意義的方式向前發展？

Yes, I mean, not naming specific companies, I believe the old TSN, which is being modified into a much larger SteraMist Pro certified program or our SPC program will include people from all of them. I mean, the top five remediators. So, it's a great product. It's the only product they should really have in their toolkit, outside of a hand applied product. But yes, we see tremendous potential going forward, especially with all these hurricanes and the disasters, we know that there will be mold in most of these structures, whether they're commercial or residential and our product is ideal.

是的，我的意思是，不點名具體的公司，我相信舊的 TSN 正在被修改為一個更大的 SteraMist Pro 認證計劃或我們的 SPC 計劃，將包括所有公司的人員。我的意思是，排名前五的補救者。所以，這是一款很棒的產品。除了手工應用的產品之外，這是他們工具箱中唯一應該擁有的產品。但是的，我們看到了未來巨大的潛力，特別是在所有這些颶風和災難中，我們知道大多數這些建築物中都會有黴菌，無論是商業還是住宅，我們的產品是理想的選擇。

Okay. And then I've been able to figure out a number of your customers and partnership members that you're not able to name. I was wondering if it would be useful to give a discount to them in order for them to, and in order to use, you know, let you use their name.

好的。然後我就能找出一些您無法透露姓名的客戶和合作夥伴。我想知道給他們折扣是否有用，以便他們可以使用他們的名字。

You know, we do our best and that's why when I go through the report just now, I don't name people, but they just don't want us to, I mean, we don't want to spend more time trying to get a press release out using their name than we do selling the product, building the product and delivering it. But ultimately they will, when they start seeing it work like we have been doing with the big pharmaceutical companies and some of the food safety companies. So probably it will get better. Again, a lot of them are large, large public companies and they don't want to, endorse a product, this is just their nature.

你知道，我們盡了最大努力，這就是為什麼當我剛才審查報告時，我沒有點名任何人，但他們只是不想讓我們知道，我的意思是，我們不想花更多的時間試圖用他們的名字發布新聞稿，而不是花在銷售產品、製造產品和交付產品上。但最終他們會的，當他們開始看到它發揮作用時，就像我們與大型製藥公司和一些食品安全公司所做的那樣。所以情況可能會變得更好。再說一次，他們中的許多都是大型上市公司，他們不想為產品代言，這只是他們的本性。

Okay. And finally, I am really impressed that you've come out with this SIS stand-alone for the biological safety cabinets. I think that's going to be a, just a fabulous market. How did you come up with that?

好的。最後，你們推出的這款用於生物安全櫃的 SIS 獨立系統令我印象深刻。我認為這將會是一個非常棒的市場。你是怎麼想到這個的？

Well, I'm going to let E.J. answer that. I think it was demand but go ahead.

好吧，我要讓 E.J.回答那個。我認為這是需求，但請繼續。

It is demand. It's, it is a very exciting product that we just launched. And you are absolutely correct that it was ideal for BSCs and other enclosures. But there is a market for that system across all our industries. So it's great with our Stair Box for our medical device initiative with 510(k) and even on the commercial end for, refurbished items. It's one applicator fogger, it does it all. It's going to be as popular if not more than our environment system. So it's been in the making, and it does everything it says it does. We're very excited about it.

這是需求。這是我們剛推出的一款非常令人興奮的產品。您說得完全正確，它對於 BSC 和其他外殼來說非常理想。但該系統在我們所有的行業中都有市場。因此，對於我們的 510(k) 醫療器材計劃，甚至對於商業端的翻新產品，Stair Box 都非常有用。它是一款噴霧器，可完成所有功能。它會和我們的環境系統一樣受歡迎，甚至更受歡迎。因此它一直在製作中，並且能夠實現它所說的一切。我們對此感到非常興奮。

Great work. Thank you.

幹得好。謝謝。

Thank You.

謝謝。

That's all my questions. Good job.

這就是我全部的問題。好工作。

Thanks John. Thanks for everything.

謝謝約翰。謝謝你們所做的一切。

Operator?

操作員？

Apologies, my line was on mute. I do apologize.

抱歉，我的線路處於靜音狀態。我深感抱歉。

No, no problem.

不，沒問題。

Is that it? I think the question answered.

是嗎？我認為這個問題已經得到解答。

Yes, we have no further questions in the line at this time, sir. So I'll hand it back over to you for any closing remarks you may have.

是的，先生，我們目前沒有其他問題。因此我將把時間交還給您，以便您發表任何結束語。

Thank you all. Just once again, I want to thank our team for the great work and our long-term investors for continuing to believe in our company and its beautiful high tech disinfection decontamination products and wherever you are, have a wonderful day and a great evening and we'll be talking shortly. Thank you.

謝謝大家。我再一次感謝我們團隊的出色工作，感謝我們的長期投資者繼續相信我們公司及其出色的高科技消毒去污產品，無論您身在何處，祝您度過美好的一天和美好的夜晚，我們很快就會交談。謝謝。

Thank you so much, ladies and gentlemen. This does conclude today's conference, and you may disconnect your lines at this time, and we thank you for your participation.

非常感謝各位，女士們、先生們。今天的會議到此結束，大家可以斷開線路了，感謝大家的參與。