Investors

C-Suite Memo


The Desk of the CEO

Dear Friends,

As 2021 comes to a close, I want to take a moment to provide an update on the solid progress we have continued to achieve.

The pandemic appears to be transitioning to an endemic, and the “new normal" as it applies to the collective global COVID experience, has fundamentally changed the way the world views disinfection and decontamination.  I believe those changes are here to stay. The global disinfectant market is currently valued at approximately $19 billion and is expected to reach approximately $28 billion by 2026. This projection presents significant growth opportunities for our industry and we at TOMI have been working hard to make sure we are in a position to take full advantage of this expanding market. 

With that in mind, we recently partnered with Orca Pacific, a leading full-service Amazon agency, to build and optimize our new Amazon store for select SteraMist products, including the SteraPak.  We believe the Amazon store provides easier access to our leading, “gold standard” hospital-healthcare and broad-spectrum disinfectant products.  Adding an optimized digital storefront on the leading e-commerce platform is expected to significantly enhance the brand awareness and sales distribution of SteraPak, a new product we’re very proud of.

Traditionally, our SteraMist solution has been delivered through stationary equipment.  While this can be effective, we recognized that we could improve on this model, and that portability would add an entirely new dimension to our product line. The all-in-one SteraPak is a portable backpack, which takes our innovative SteraMist iHP technology and creates the most mobile SteraMist unit available on the market. Its sleek design makes it easy to maneuver in the smallest of spaces, allowing users to apply our SteraMist solution in places it has never reached previously. Additionally, it offers a superior and cost-competitive option to electrostatic sprayers in the current market that have been subject to a number of safety recalls. This market presents a significant opportunity with 400,000 units of sprayers sold to date in the United States in 2021, and we believe we can capitalize on this opportunity by offering a safer, more reliable and cost effective option.

We continue to see interest for our Custom Engineered Systems (CES) and have received purchase orders from some of the top names in the healthcare and pharmaceutical industry around the globe. By virtue of its “custom” installation, the CES requires significant capital investment by the customer and typically has a longer sales cycle, yet we often receive follow on orders for additional customer locations, demonstrating that our CES product is one of the most effective disinfectant and decontamination solutions available in the market today.

As we focus on further penetrating the market verticals in which our products serve, during the third quarter of 2021 we increased our working capital through a registered direct offering to institutional investors.  The proceeds from the offering enable us to expand our internal sales team and broaden our marketing and advertising campaigns to raise brand awareness and develop new and competitive products to meet customer demands and develop additional business opportunities.

We are energized about the progress in our business and our prospects through the end of 2021 and into 2022 and beyond.  I wish you all a safe, healthy and happy Thanksgiving and Merry Christmas!

Thank you for your continued support in TOMI Environmental Solutions.

Best,

Dr. Halden Shane

Chairman and Chief Executive Officer

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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