Earnings call transcript Q4 2022

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Operator

Good afternoon, and welcome to the TOMI Environmental Fourth Quarter and Year-End 2022 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, John Nesbett from IMS Investor Relations. John, the floor is yours.

John Nesbett

Good afternoon. Thank you for joining us today for the TOMI Environmental Solutions investor update conference call. TOMI's Chairman is Dr. the call today's CEO of and Board, On Shane; E.J. Officer, Chief Halden Operating TOMI's Shane; Chief and TOMI's Financial Officer, Jennings. Nick

report will the review Shane the highlights. and provide overview trends, on any will latest of growth the before Nick financial recent performance Dr. questions and company's you quarter recent have. an most E.J. will business addressing for may

release the in call TOMI's A be available be press XXXX, of the XX, included are today's also will March A details replay website, XXXX. which telephone March of will XX, webcast dated company's through www.tomimist.com. replay at available

Please no which presentation is it longer the time be note that replay. And relevant of March within recorded, advised day XXXX. accurate XX, at the that information any was we're, of contained may only information this therefore, to time-sensitive

Certain of our made written TOMI Litigation important any to could cause forward-looking statements from management Private differ These actual defined evaluated results factors results. may that light XXXX. Reform be forward-looking constitute of Securities and in should in the materially statements as anticipated Act risk by oral of statements

company the provided no these call in this The upon to based facts obligation circumstances date after of information known this this forward-looking time. is statements and update at The the conference undertakes call.

release will comparable XXXX. by earnings in considered GAAP non-GAAP measures they useful be these information provide conjunction is measures TOMI GAAP dated during operating non-GAAP believes it March that A measures included this in discuss could measures. financial addition, certain non-GAAP of with uses about In because call. to XX, The the reconciliation measures company investors performance the the

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

Dr. Halden Shane

on results for good company. for important focuses you update a QX us, earnings the with for few operating was very Thank and financial and call. a TOMI key quarter Today, This everyone. year off a of Environmental year favorable full the we a along current for will provide XXXX, afternoon, TOMI Environmental. capping Good joining

the efficiencies and and our for continue make quarter adjusted achieve a for results. revenue a realized significantly quarter substantial X% only the as year. business XX% of reported and we loss $XXX,XXX, We in small the to GAAP very losses breakeven grew EBITDA our in progress the reduced to fourth in financial

I a provide quarter me is a Let of exciting. key think very why few of takeaways snapshot this

we to growth First, CES. business which orders with more coming in custom also our These larger revenue which improved, our CES refer growth, from our customer as visibility improved has us large are longer-term base. to systems, give

extent, an the to positive And our to plan prior-year accelerate solution as sales new as continue see the they we our to in don't higher-margin custom that Facilities permanent units quarter. fourth system the growth install as XX% solution sales, such generally our required. marketplace, our fourth-quarter to customers unless grew make by mobility investments of compared BIT signs use large

decontamination installed request Second, a today. ago, of as in automated many is initial CES fully our the was our interest system while

really lift off. just are We to starting

hard work, such an for success. and overnight no thing they As there's substitute say, there's no as

where science of some the the companies the in trust at top referral companies bigger are point science us, customers and We us the life our are know XX and life world.

future COO We the the I to call, accepted that and undergoes worked detail to them surrounds asked company's these accounts process and On get have have the growth. hard today's in extremely excitement companies. for these team explain by to win join TOMI's E.J.,

can you strength quarter, fourth of we engine the the see in the are creating. economic Third,

than better we bit, up Why? are are revenue had. long-term Well, given ticking better You we a can cusp begin of to visibility, margins Two, profitability. see how the ever mix. on have have gross we sustained

in increase with even substantially, down came SG&A our Three, hiring.

efficiencies. ensure We expenses have cutting really and focused on

have we than more believe revenue. rather example, our much using grow in-house utilized slower firms. outside SG&A than engineering will We For

our EBITDA to breakeven, sustained to and below profitability. EBITDA take move it and much won't was just adjusted Finally, net income

We stays are cusp, that truly robust. assuming active the pipeline on

line more business product company. sales, sales of management future long a with current is now mobile the not recognized revenue to end-user the and partnership becomes cycle quarters. allows to of and management a has in expanded of backlog of only CES Company's The a but be the unit growth this orders, aspects

are delivery orders in turn demanded customer mobile systems, timelines our equipment, subject revenue the or Our recognition. services the by affect timing CES customers, and contracts which the related for iHP to of

XX, backlog XXXX. The sales $XX.X for Our orders customer and December when of December was of the had of million with revenue best revenue, as years approximately of which represents have date. ended the comprised together, $X,XXX,XXX was one our of XX, year combined recognized XXXX, to backlog $X,XXX,XXX sales recognized our we million, $XX.X

calendar key increased global year, XXXX which growth for orders, XX% orders to CES represents and customers. we and received sectors. sciences, sales in demand to attributable calendar our food largely received were from life our our when equipment XXX During commercial, mobile from Fortune XXXX. million in primarily customer of our some compared is over Increase This $XX sales safety orders

XXXX. $X,XXX,XXX, Our XXXX fourth-quarter to our XX% reported revenue was fourth-quarter compared in up sales

stand-alone volume we quarter fourth the of perspective, what revenue of sales XXXX. from internal the the sequentially was resulting have Our systems systems sales XXXX. tech largely demand we XXXX. XX% to grew to From Increase the and deliver our in a in for over reported execute quarter best in this and fourth that third of increased achieved quarter the XXXX since our CES is ability quarter team's attributable

our in reported. other equipment systems of we our two we sales product mobile growth due to the expanded maintaining installed of revenue also line. and Last timeline a applicator quarter, recognizing saw results CES portion as orders and order, our In XXXX, the

projected delayed outside quarter of reported due control the end The full building a the are of for to be to are the slightly the has now solution of for and reasons referenced. delayed. to been on three TOMI's delayed BIT contractors -- Thus, two systems commissioning their systems year amount previously by

we priority, soon XXX,XXX entire project wins throughout last bookings end CES and automates that the Winning of ongoing they therapy remained finish. the to manufacturing from year bids in Approximately these has at in will additional years. an for were come the cell received start for high announce the process as

cell This automate iHP kill. decontamination the will of X-log all integration of throughout stages a process, full-coverage ensuring therapy

hope schedule this to, method for with systems for We partnership delivery publicly system. this are the soon, multiple sole on as therapy prototype the announce cell and summer decontamination

strict cage for and streamlining disinfection will life in the are to for and superior needed In industry a decontamination by clean rooms, regulations we washers, in modular production is decontamination product industry. chambers, addition, within shortly. adhere science providing be which we laboratories guidelines simplified our solution for to SteraMist

learned As COVID-XX diseases. our infectious have we product pandemic, can from of and spread reduce the eliminate

network continue areas this local in outbreaks well service against and providers monkeypox, latest as combat norovirus, TOMI as their to bird flu, Listeria. coli, Our pandemic, E.

remains that XXXX. a TSN one combating were service alerted to the effect, homes member TSN using services COVID for other system, was in support And its Yet derailment, commercial routine pathogens SteraMist Ohio providers to disinfection provided providing providing contract large them in disinfect buildings. hospital another train of this daily. TOMI residential servicing and today, combating surrounding local

in close in strategies, to the being with As and domestic new divisions. growth we agreements strategy executed are Many look business start future, expanding of advancing announced, process and distributions. the development we across a to multiple are

domestic mobile equipment. partners is with This the into entering distributors TOMI penetrate aligned domestic the agreements SteraMist in and sales. establishing with equipment further, life sciences, SteraMist well-known the market will distribution further distribution science, animal divisions, and commercial strategy

although last routinely progressing NHS Wales us quarter, Health for as they sales market, promote nicely. publicly. long was a company is expanding great in cycle, a International the win and Services National or

novel the their and as a in In have Germany partners our footprint made surrounding addition, as countries. country well Australia in

continue and we Ongoing United against regulations and the are is Germany, efficacy with studies remain we domestically. this further science on which adhere studies needed contractors and in life working that In to internationally ricin undergoing guidelines. to we a strict government to country. States, effective [sentinel] and prove our grow In focus critically are showcase to materials as

flowers plant the effects and proving studies results, reporting these to hope moment, and soon is SteraMist direct finalize combat no successful on we common and this to on spray Other At studies cannabis share include oil itself. and fungi, publicly.

Food when XXXX. safety to comparing grown XXXX XXX% use has over

food storage to safety in changes emerge will challenges continue transportation complexities, imported largely foods. New supply, more because of food to food including production, delays, our

antimicrobial product research Changes emerging toxins, resistance. and Food with TOMI, contamination, new in bacteria, growth continued compliance for an and for testing. safety presents significant opportunity to environment leads food and

food safety cold the Food in in established under implementation is and an North the decontaminant scrutiny of new is guidelines. close and safety with effective aerosolizing America plasma technology industry SteraMist industry. enforcement

assist food by newly Safety Act well set of Canadian and Food Canada. extra protection Act for place FDA, transportation. including Today's global the and can Regulations Canadian has of layer farming Modernization for supply the Food guidelines ranching for concern with of compliance SteraMist the created in the as in as aspects Safe in geopolitical Safe an Food established food our limited

we and with work this industries. to XXXX, validating industry promoting food in made and marketing In division. SteraMist progress enhancing technology continues the food in safety in TOMI awareness companies brand by seed safety premium in and testing

efforts. an safety within the these receiving from are in increase food We directly inquiries division

to around the contamination the day, pertaining of Every food there are articles supply. news world

-- avian worldwide pandemics resulting supply. and to for unusually severe in unnecessary storage in a With over high packing and -- facilities, the population in US in XX that's alone in flocks, flu resulting an bird plants our mechanical demand of global way destruction increase explosion, choline disinfect accidents the food anticipate we processing

technology decade-old market, quick, process. farm our USDA, has, storage consistent to transition disinfection food the and demonstrated supply deliver to in to with consistent, cooperation areas delivery. TOMI of and more from -- will and to offers all a quicker effective the packaging, results traditional alternative our SteraMist that chemical processing in

We all these are pursuing avenues. currently

and X.XX% testing coupled new our BIT hydrogen market demand, pursuing label, these Continued make peroxide successful. will opportunities with

environmentally the solution and of is our only In SteraMist oxygen form humidity. of in addition, are that friendly the in by-product processes and water

and solution OMRI on as labeled We organic. listed have our

leave objects, residue any furniture, any disinfectants on on and equipment, Most SteraMist does surface. chemical leave foods. residues not

is footprint, and global the in humidity. We the issues have perfect current a any, product for very just safety. food low carbon if SteraMist oxygen

screws farming the food, our food, ready defense their are we are. We to in is we much told little needs industry SteraMist too assist from environment. food of up our too produce wherever and the consume

overview now over and installation additional sales to pipeline. TOMI's turning TOMI's the CES COO and call to E.J.? am I give the on process

E.J. Shane

everyone. general answer of projects partially units for and or closing attend Thank on good or personally TOMI's in the been appreciate the both internationally. divisions growth Dr. there and to join these have that we call. and conversations. future all for automated plan today's afternoon, fully shows for domestically won our trends and And transformation opportunity near SteraMist I I inquiries Shane, on report calls mobile in you, some weekly strong future, trade has a installs across

used and comparison to advantages in introduce peroxide Today, technology I our and come SteraMist. our to to science the of products us or ionized already the hydrogen to brand many has competitive iHP many have new old alike. knowing

know and technology our with what begin: TOMI our as now now and these opportunities maintaining easier, so can offer. set technology the it, to behind it offer SteraMist. becomes for interest engineered of I our the experienced line the of systems a custom and budget? units for process. or versatility conversations makes offer we CES, This to is knowledge Therefore, the solutions potential of science what our ease superior is facility on with SteraMist pitch you equipment And the regarding a your know team, the legacy that applications fits a product and Basically, understand

received years. Earlier prior and with and the had already usage company, There been from partnership global established which news of this premier year, a looking globally. expand for we proposals have of to multiple standard disinfection facilities purchase being orders strong throughout another we their acceptance companies significant in SteraMist

these to NDA a a a undergo or exchanged, commissioning mini a as complicated project with of can for delivery documents electricians, to steps. management blueprints, are the To continue or contractors, our and executives, of minimal must of simple This building we as as and entering fully weekly be our safety share install series series and so engineering varies. an Once won, even and meetings of amount CES, meetings as timing engineers, forth. win

the or to these process in system product full and The accelerated schedule the made of month, part revenue be that's this SteraMist one-applicator for TOMI line, quarter. to goals installation, commissioning, I'm successfully recognized fully was team on the by happy SteraMist the budget it design, whether and completed, on will be a report manufacturing, goals. has TOMI first the by XXth that of maintain stayed has To into project process. the And this of custom date, implementation customer, TOMI qualification and met

there said, control we when are That predict specifically times, revenue. our at make that, to forces beyond will difficult it recognize

the completed they for of electrical delayed because be by As information, June a been because been Avid now to installation waiting point the not are approved. utilities building have contractors until permits their has

We opportunities. working with their providing system, be iHP on team referral team yet study their open are will currently the use sales with marketing case TOMI the report Avid's year, another released to which this of

last razor-razorblade which system, These our also are supplying With the we model. our qualification custom steps engineered but critical last BIT we systems, the complete of business the and solution. commissioning the physical steps to to includes system, deliver

during systems, early and delayed revenue until we're our at end two For This year, and year. we'll in year. of two as example, qualification iHP the the CES a process solution reported these the last produce holds of of $XXX,XXX BIT our part systems for are true installed that of next last

reoccurring begin will to full this take place to systems So late these solution than early XXXX revenue BIT attributed year. rather

Our pipeline is very healthy.

But in a solution for ongoing and, year system builds, $X.X XX with end year to install revenue. million are on simple to process continuous out of the is $XXX,XXX in and parties stages in or unfortunately, $X,XXX in anywhere depends the a ranging approximately many facility solution. all of from production We custom the $XXX,XXX A a user's timing involved, to our BIT to use can custom more conversations control. multi-applicator equate it BIT

are custom of the just sciences, easier to by new our we many. not does accepted and global The a builds. companies, In with leadership global by take approved to lightly. to standard statement guidelines. the keeping meeting not decontamination alike, safety TOMI's be This life to a solution interest and lie becomes quality such old Becoming SteraMist guidelines is

believe prior revenue will This distributors I to we to domestically this be for brand. time, internationally. move open system specifically SteraPak in have will the with this are SteraMist bookings to model market years, environment parties our year-end reflected At XXXX, both our become than our fourth-generation and just and released we faster seen pursuing in

grown have employees. incredible to of look like success an I TOMI I to efficient the team. thank part to and together. the take would with time the forward foundation And all we We have be we beyond, really set into will this year the

the Now Jennings. I'll to over our CFO, turn Nick call

Nick Jennings

quarter Thank you, XXXX prior-year the XXXX financial of brief I'll the for results fourth E.J., a and full our good year overview afternoon, provide of to periods. and the compared everyone.

The gross increase revenue in profit XX, was increase For to XXXX, Consolidated was and profit to ended XX.X%, due X.X%. December XXXX, X%. representing the compared year product mix XX, gross of an our net sales. compared compared consolidated representing XX.X% December was $X,XXX,XXX, an to our increase $XXX,XXX $X,XXX,XXX to or of our

loss gross decline. operating attributable to higher loss representing operating consolidated year-over-year sales, and expenses. lower to was The $X,XXX,XXX, profit, $X,XXX,XXX operating compared improved XX% increased The a was

consolidated net $X,XXX,XXX basic share, $X,XXX,XXX or Our per basic per $X.XX was compared share. and or loss diluted $X.XX to

financial GAAP compared the adjusted A EBITDA was of year-over-year the improvement with today's EBITDA to $X,XXX,XXX to included reconciling measure appropriate Adjusted loss XX%. release. a table press $X,XXX,XXX, of a representing is

primarily when well up XXXX, the our was operations used our low of compared in due which deferred as declined representing prior-year improvement $X,XXX,XXX, reportable from The an period, ended $X,XXX,XXX. year loss revenue, XX, cash cash same $XXX,XXX. for increase December flow of year, For XX% the an as to improved to the and which and respectively, $X,XXX,XXX is operations XXXX, was

to X.X%. the XX, was representing product to gross months increase increase our For XX%. to net profit XX.X% our due compared revenue $X,XXX,XXX, to or was compared our an gross in December and three mix ended compared Consolidated profit XX.X%, representing consolidated XX, XXXX, an increase of XXXX, of sales. December $XXX,XXX The was $X,XXX,XXX

was improved loss operating operating decline. increased to a The and $XXX,XXX $X,XXX,XXX, gross profit, year-over-year higher expenses. XX% loss representing was consolidated The due operating lower to compared sales,

loss Our or per press EBITDA [$X,XXX,XXX] loss and of $X,XXX,XXX the improvement diluted $XXX,XXX was or to GAAP $X.XX to was today's compared EBITDA a appropriate the release. consolidated a $X.XX XX%. (sic) year-over-year basic measure to Adjusted per included basic of net compared $X,XXX,XXX, share. with share $XXX,XXX A reconciling table representing adjusted is financial

the on balance Now sheet. to to move

XXXX, our was and and cash shareholders' equivalents million. $XXX,XXX. were Deferred equity XX, approximately of was As capital million, December $X.X was cash million. $X.X Working $XX.X revenue

to to like back the turn over I'd Halden call Dr. Now Shane.

Dr. Halden Shane

a XXXX future company. Thank for growth of and you, was Nick. considerable of establishing preparing year the

internal intellectual agreements entered for We more and applied hires, continued property, into additional new streamlined departments studies. with growing and received and controls, new internal position

finalize a needs the continued redesign provide website enhanced We to undergo and meet divisions. new to to user of experience our products

continue grow office product is space look with negotiations As mentioned XXXX advance more forward. before, and partnerships products our We for hires new company for we and an TOMI under expansion. we development. need currently as new forward to to and

Operator, the call questions. let's open to

Operator

[Operator Joshi, Instructions] Sameer H.C. Wainwright.

Sameer Joshi

certainly, afternoon, Good on the E.J., Doc, you the progress last made Nick, Thanks. quarters that quarter. have everyone. over this several and, congratulations

On growth, personnel that, understand investments But given I expected year-over-year the do for good certain the you're see next OpEx How going your in front, we hires. to reductions. should months? making office look XX OpEx space, at

Dr. Halden Shane

go to you we are revenue. I increase to in an the extent. will grow And as to expenses, hand hand two some think looking see continue operating in

be ramp increase there in expenses. operating could we more, as there up the So an

Sameer Joshi

the And -- Speakers] yes, [Multiple expected Okay. ahead. go

Dr. Halden Shane

expenses. the going from Our revenue is outpace greatly it to

Sameer Joshi

leverage mean, would had I there. be [presumed] I yeah. Yeah, there

bit a that. specific on little Just

sciences new you various mentioned outlined hired that food this during sales outreach of last had the industry for for industry, life a for verticals the in industry? food within a the Are you've and you there hires lot had salesperson any call. expected on I think quarter, and

Dr. Halden Shane

as see which hired all have people the very are excited can a to I our life be safety. in that moved the considered percentages we're move about company. have the is We And food significantly you only food in becomes in tell and up the report. that natural specialist with sciences And product -- of food best allowed the we'll division area that this fighting can in us safety, safety. from

Sameer Joshi

And Understood. sales order consider when just project in be But pipeline of little be would explain to pipeline? E.J., bit you a what for particular course, you in -- is thanks as explaining would the something to considering for the specific -- backlog order, but the a against process. meaning, as in time or backlog in

E.J. Shane

Certainly.

these end we to contracts So it comes with the companies, pipeline the into The and of to build-ins the with installation the sign then the them revenue recognized of beginning design of each start towards end the of commissioning. are the conversations these we scattered of and into to once our win project from throughout bid. equipment

Sameer Joshi

Okay.

that a consider a modular And that the solution question something In Is them? supplying to life Thanks that strategic had commentary, I while sciences think forward? I applications. should this color. then you is something discussing manufacturer specific -- partner for going I Okay. clean with room a mentioned modular you as clean we in Or development. for a this maybe think, room are product Doc,

Dr. Halden Shane

clean it's a the customers comment design the that? to apply and in world. little E.J., design you customer, many rooms further specific but produce can do advancements want a modular to around it's on a that So that

E.J. Shane

Yeah. course. Of

washers, turnkey about build-ins. those decon companies the are iHP deliverables. in with nicely globally to which companies integrate known actually with process which of solution There's sales would creating of chambers, cage we're we're our a and So in well them, that manufacturing module system four in assist these manufacture they really and working of

Sameer Joshi

spill for seeing the Got more other new vertical last from? in industry? that more to from the agriculture a example, it's one you technology. one the It's environment it. In field me. vertical, controlled that rather Is And you're than seeing open food growing, and are than -- interest

Dr. Halden Shane

we're all of aspects Yes, it. --

the little result and what's the today. cost -- frustrated. of people mean, on about think I I are is a in And of all -- it the the a of I the going safety know think I storage of everybody's delivery food and a most food. of the lot

nobody we're such in viable -- seeds extra It money that used to it protecting organic the which getting to farming, put -- in the to today they be became from storage that, world's the ahead we're before any and manufacturers to whether that interest wanted seed from they expensive them industry with but go commodity package the food dealing facilities in seed disinfect a lots of -- and vertical producer packages farming. package largest spend

So natural in and going to relationship place I now. over it our safety, food see world just over are all products and this for the all the

Sameer Joshi

Great. taking Thanks and that color, for my Good questions. for thanks luck.

Dr. Halden Shane

much. Thank Thank you. you. so Thanks

Operator

Nelson. [Operator Instructions] John

Unidentified Analyst

Thank Hi, profitability But close Good for Do question this an on EBITDA Halden. for soon? very goals very exceptional in about you how basis you. profitability see know a coming but future. the I sounds job quarter. do quarter, the opportunity anytime on you adjusted for on are the any - have One you year? -- timing? one the and question

Dr. Halden Shane

quarter coming it the year. the And quarters. could or next likely, be in two in next Definitely, very

Unidentified Analyst

of -- be dedicated significant such clean going could amount of used plants be rooms? I was space facility's construction for in wondered to a they country, applicable clean to use SteraMist I -- have The a be your new great. Would Okay, because rooms. substantial about in product the amount throughout done whether semiconductor and a there's

Dr. Halden Shane

Most definitely.

Pfizers like Mercks on we've something the clean already, done rooms. every in studies the and it's semiconductor and room their that using SteraMist clean them should fact, in industry be do In just

Good John. definitely. most question, So

Unidentified Analyst

dedicating investigate companies opportunities with involved? of Are those or a the salespeople directing to number -- you that

Dr. Halden Shane

definitely Since it. going you we're question, to do asked the

Unidentified Analyst

Great. right. All Okay.

Dr. Halden Shane

that's it the you. that rooms. Speakers] stuff, these but us person makes looking all handles [Multiple Thank we somebody be then]. John, other all the clean with And for sense should [for

Unidentified Analyst

I some know ServPro. if one information franchisees. work give penetration I time, potential on done ServPro us could was Also, wondered had you at And one of there any information with Yes. any -- the you on of

Dr. Halden Shane

on I go and we've TSN magical them. out -- can't pursue been sciences really that and life these members. We're still looking person food But and to focused safety for --

Unidentified Analyst

Okay.

Dr. Halden Shane

of I'll larger that than toolbox. mind. for very lot we our bigger keep a facilities that ServPro are in their other in And their interested do and have using technology application

Unidentified Analyst

Okay. there Good. any I a on this manual question has -- ask administrative and know issues are and publication hospital every And I some there and been bureaucratic is versus know further the study quarter, I timetable? UCLA involved. cleaning But anything

Dr. Halden Shane

Yeah. hard publication. me They're as on this are results timetable, get to but still working It's for them down fantastic. the

but from at of it's there, believe I UCLA LAX now. kind an a When pattern further them. out so landing They've it time it's papers, we'll in hard have use, happen. our and And application right put soon will holding about many push to like announcement is

Unidentified Analyst

say brothers who they be couple as of Okay. a sense hospital I brother doctors, My SteraMist the far makes so are -- of and setting. cleaning the would have That this as utilization in great. much

Dr. Halden Shane

their absolutely It UCLA and currently with ICUs, their in unbelievable results. they in we than ICUs to do clean we've less time does, manually can that proven

that. think But an interest industry getting exhausted recovering getting everybody and we have put it's and are it's UCLA and the now, is getting so infectious I other COVID -- on working to the pandemic yes, protocols -- not industry much them up them it. wake -- in place. from in furthering disease the after Right So but

Unidentified Analyst

was I the Okay. have progress missed on call, might on Understood. on any discussion this there but ambulance project? the And

Dr. Halden Shane

the talk project? about Yes. bit ambulance We mention E.J., on call, there but a do little didn't want it to the is. you

E.J. Shane

Yes.

our hospital final the should the next production transport, we work their And to continue we be made. are touches month or on in within so. the design being So developing and which with team the in

Unidentified Analyst

have marketing Oh, of waiting good. units, product the are you and going you time? you actual for at this are or out And -- production

E.J. Shane

out We of once with deadlines on planned real we'll and process our and customer market production current are is quietly procurement then terms support. mass base, in marketing

Unidentified Analyst

I Excellent. all you for That's have Thank very questions. much.

Dr. Halden Shane

Thanks, John.

Operator

[ph] Wright, Carl Partners. OakTree

Unidentified Analyst

for taking Hi, thank you my question.

few CES like over hardware? have sounds I the just growth. next operating And It gross we your the think the understand, leverage given your happen could how sure on in solution you should about business. margins make it great So particularly a years, versus to your

Dr. Halden Shane

is CES growth company a model our the technology. the and tremendous, is the So we it's for -- -- razor-razorblade natural

solution say, CES but the razorblade. the Let's the is is razor, the

the can $X,XXX Like be $XXX,XXX we a anywhere said year on upon depending from call, that to unit, usage. per

as So natural are and the extremely as getting on because our theoretically high the technology. equipment is industry. much to to there enough the in out solution chemicals margins utilize -- our most are is margin the greater it's And margins as possible, our solution should much grow than

Unidentified Analyst

from it Thanks Okay, you. That's got question. it. taking Thank for me. my

Dr. Halden Shane

Thanks so much. Thanks for your question.

Operator

to I Thank to turn like no you. remarks. closing the And would time. back this for at floor management there are further questions in now queue

Dr. Halden Shane

morning, and thank to or you, everybody the first a Thank our forward coming be day Have wherever want for and on our wonderful months. to I located. to just Thank operator. you, I reporting all. might listening or you year-end, look quarter evening

Operator

call. This you. Thank conclude conference today's does Certainly.

disconnect a participation. phone day. your for wonderful at and time, you have Thank your may this You lines

TOMI Environmental Solutions (TOMZ) 16 Mar 232022 Q4 Earnings call transcript