🧾 What This Document Is

This is an 8-K filing, which is like a "current events" report a company sends to the SEC. This specific one includes a press release announcing TOMI's full-year financial results for 2025 and their strategy for the future. It’s a mix of looking back at the year and pitching their growth plan to investors.

🏢 What The Company Does

👉 In simple terms, TOMI makes advanced cleaning and disinfection systems. Think of it as "deep cleaning" technology for the most sensitive places like hospitals, pharmaceutical labs, and food processing plants. Their main product is SteraMist®, which uses a special platform (BIT™) to create a germ-killing fog. It’s like a high-tech, residue-free fogging machine for sterile environments.

💰 Financial Highlights

The year 2025 was about managing a temporary slowdown while controlling costs.

• Revenue Dip: Sales were $5.64 million, down from $7.74 million in 2024. The big reason? Customers in pharma and other industries hit pause on big equipment purchases due to economic uncertainty, tariffs, and global tensions.
• Profitability: The company still lost money, but less than before. The net loss was $3.75 million (or $0.19 per share), an improvement from a $4.48 million loss in 2024.
• Margin Strength: Despite lower sales, they kept a healthy ~55% gross profit margin. This shows their technology is still valuable and their core operations are efficient.
• The Backlog: They ended the year with a sales backlog of about $1.8 million, which is like a queue of orders they expect to convert to revenue soon.

🚀 Key Moves & Growth Story

While sales dipped, TOMI was busy planting seeds for future growth.

• Big Customer Wins: They landed deals with a global biopharma leader (a $500,000 order), a leading cell & gene therapy manufacturer, and NASA for biosecurity.
• Building a Pipeline: They now have a pipeline of 10 active projects to integrate their tech into other companies' equipment, worth a combined $3 million. This is a key source of future sales.
• Global Push: They made a big push internationally, which now makes up 29% of revenue, up from 21% the year before. They have new partners in the UK/EU and are entering the Canadian healthcare market.
• New Markets: They’re targeting new areas like food safety (a $28 million market growing to $31 million in 2026), biofuels, and even protecting honeybees.

🔮 What's Next: The 2026 Plan

Management is optimistic and has a clear focus for the coming year.

• Turn Pipeline to Cash: Converting that $16 million integration project pipeline and $20 million SteraMist opportunity book into actual sales is the top priority. They say Q1 2026 is already beating Q1 2025.
• Market Penetration: Double down on the fast-growing sectors they identified: pharmaceutical manufacturing, food safety, and medical device sterilization.
• Flexible Funding: They have financial tools ready to fund this growth, including a $20 million equity line of credit (they already drew $94,130 in Feb 2026) and a shelf registration to potentially raise $50 million.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• A differentiated, high-margin technology platform.
• Validation from major customers (NASA, top pharma companies).
• A strong, growing backlog and pipeline that show underlying demand.
• A clear strategy to enter large, growing market verticals.

⚠️ Risks:

• Liquidity is Tight: They ended 2025 with only $88,000 in cash and a working capital of $1.0 million. They need to convert their pipeline into cash quickly to fund operations.
• Dependent on Project Timing: Their revenue can be lumpy because it relies on big-ticket equipment sales that customers can delay, as seen in 2025.
• Profitability Path: They are still unprofitable and burning cash. The plan depends on sales growth and cost control to reach profitability.

🧠 The Analogy

TOMI is like a specialized gardener with a fantastic new watering system (their SteraMist technology). In 2025, some of their biggest clients (the pharma greenhouses) paused buying new systems because of stormy weather (economic uncertainty). While waiting, the gardener improved their system, found new gardens to tend to in other countries, and lined up a list of new customers who promised to buy once the weather cleared. Now, their entire focus is on installing those promised systems to turn their backlog into a steady stream of income.

📇 Key Contacts & People

• Dr. Halden Shane - Chief Executive Officer (CEO)
• Contact for Investors: [email protected]
• Company Website: https://www.steramist.com
• Conference Call Replay: (877) 481-4010 (International: (919) 882-2331), Replay Code: 53808

🧩 Final Takeaway

TOMI had a tough 2025 financially due to customer delays, but it used the time to build a strong growth pipeline and expand globally. Their success in 2026 hinges entirely on their ability to convert this promising pipeline into actual revenue to fund their operations and prove their strategy works.