Investors

C-Suite Memo


Letter from Chairman and CEO

Dear Friends,

The last few months have yielded solid progress in many areas of TOMI, so I wanted to provide you with a firsthand update on some of our recent business developments and market activities.  A cornerstone of our growth has been our ability to partner with our customers to leverage the high-level capabilities of our technology and solutions with the goal of expanding these relationships and securing new contracts. 

An excellent example of the success of this strategy is our ongoing relationship with AV8R Solutions, a SteraMist TOMI Service Network (TSN) provider and manufacturing sales representative focused on the aviation industry. We first began working with AV8R in December 2020, when the group purchased two SteraMist Environment Systems to support work with commercial airports and fixed-base operator (FBOs) in the Northeast that provide premier private aviation services. Following this initial order, AV8R purchased three additional Environment Systems in March 2021 as business expanded to work with insurance companies to provide professional services.  With this cross-sector expansion, AV8R has indicated that they anticipate deploying, at minimum, another three TOMI environmental systems by year end 2021, and we look forward to continuing to support its growth and the expansion of SteraMist use in the aviation industry.

In the first half of 2021, sales opportunities in our Life Sciences division have increased substantially due to new pharmaceutical companies and the resumption of older projects that were paused due to COVID restrictions.  One noteworthy development was Catalent, a longstanding TOMI pharmaceutical partner, that implemented SteraMist technology into four of their facilities, with a planned expansion into a fifth location.  Catalent first purchased an Environment System and Surface Unit in November 2018, and shortly thereafter purchased six additional Environment Systems and another Surface Unit.  This most recent purchase showcases Catalent’s continued trust and confidence in our product and gives us an excellent opportunity to expand our presence geographically.

As we expand our customer base, we have a key focus on developing innovative new products that serve clients in various industries, such as our previously launched SteraBox and the forthcoming launch of the SteraPak.  Using our extensive experience gleaned from the prior development and utilization of several SteraMist units and with our partner Catalent, we are currently developing and designing a new addition to the SteraMist product line: The SteraMist Select Plus, which will provide an all-in-one application of the SteraMist BIT platform technology similar to our Surface Unit, Select Unit and a one applicator fogging system, ideal for a small lab with even easier deployment. As we continue to expand the SteraMist product line, Custom Engineered Systems (CES) remain a high interest for many customers, and we are expecting to secure a bid in the near future.

With the release later this year of SteraPak, we expect to generate robust sales in the Hospital Healthcare division, primarily because it allows us to compete more effectively in the industry providing an inexpensive solution.   This product should fair nicely against the inferior electrostatic sprayers on the market with a comparable price point yet superior technology and performance. Our SteraPak is capable of delivering consistent and effective 6-log kill.  We believe that professional cleaning companies and environmental service providers will want SteraPak in its toolbox for everyday disinfection, and to be prepared for the next variant of SARS CoV-2 virus or the next pandemic.

Finally, in early June 2021, TOMI was notified of its selection for inclusion in the Russell Microcap Index, which became official on Monday, June 28 at the start of trading. The Russell indexes are widely used by investment managers and institutional investors for index funds and as a benchmark for investment strategy. Not only does our addition increase our visibility in the marketplace, but it also represents a recognition of our achievement and success over these past years and is a testament to our ability to build and sustain shareholder value.

Our addition to the Russell Microcap Index is especially exciting because it comes less than twelve months after we up-listed our stock to the Nasdaq in September 2020. This demonstrates a tremendous amount of progress in a year that has been tumultuous to navigate.

As the COVID-19 pandemic subsides and the global economy gradually transition back to “normal,” we believe it presents us with significant opportunities to grow as businesses, customers and partners re-open and increase their activities.  While we recognize the challenges inherent in a dynamic and rapidly evolving markets, I remain confident in TOMI’s abilities to meet these challenges successfully and set the gold standard for providing the best-in-class disinfection and decontamination solutions, and I look forward to continuing to leverage our expertise to capture new customers and projects.  Thank you for your continued support and belief in our company.

Best,

Dr. Halden Shane

Forward-Looking Statements

This communications contain forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to expansion of our relationships with existing and new customers; anticipated orders, bids and purchases from customers; upcoming launch of new products; and our ability to succeed in a dynamic market.  Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business and customers; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this communications is as of today’s date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.

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