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, who will provide an overview of recent business highlights for the most recent quarter. TOMI’s CFO, Nick Jennings, will follow-up and discuss critical financial benchmarks before addressing any questions you may have. A telephone replay of today’s call will be available through August 20, 2020, the details of which are included in the company’s press release of August 7, 2020. A webcast replay will also be available at TOMI’s website, www.tomimist.com. Please note that information contained within this call is relevant only to the day of which it was recorded, August 13, 2020, and you are therefore, advised that time sensitive information may no longer be accurate at the time of any replay. Certain written or oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by such words and phrases as we expect, expected to, estimates, estimated, current outlook, we look forward to, would equate to, projects, projections, projected to be, anticipates, anticipated, we believe, could be, and other similar phrases. All statements addressing operating performance, events, or developments that the company expects or anticipate will occur in the future, including statements relating to the revenue growth, earnings, earnings per share growth or similar projections, are forward-looking statements within the meaning of the Reform Act. They are forward-looking and they 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. I will now proceed to get the call to TOMI’s CEO and Chairman of the Board, Dr. Halden Shane. Sir, the floor is yours.

Thank you. Hello, everyone. Welcome to TOMI Environmental Solutions second quarter 2020 earnings call. With me today is a Chief Financial Officer, Nick Jennings, who will lead us into our second quarter 2020 financial results. But first, I’ll discuss an overview of recent developments and ongoing efforts of the SteraMist brand as sales and earnings were robust and consistent with our expectations across our current divisions, Hospital-HealthCare, Life Sciences, TOMI Service Network, also known as TSN, and Food Safety. In fact, new channels were opened, as we saw a substantial increase in many commercial verticals, such as automobile, marine, aviation, medical first responders and medical transportation, police, fire, prisons and the education industries purchasing SteraMist directly and implementing SteraMist into their daily cleaning protocols. Thus far in 2020, TOMI has excel at maintaining seamless operations, adapting to this ever changing and new world we all live in. As a leading provider in disinfection decontamination, TOMI is in a strong position to play a leading role battling COVID-19 and continue to be the leading provider wherever we exit the current COVID-19 environment and move into the next normal. We are posed to finish 2020 in a stronger competitive position as we become the industry standard. Our focus remains on maximizing our post-COVID traction to continue to drive growth and profit as a leading provider in disinfection and decontamination. We have substantially increased our customer lists in the first half of the year. Globally, we added 87 new customers and have trained approximately 150 users in the second quarter. This is a 358% increase over the second quarter of 2019. Total revenue for our second quarter was a record quarter for TOMI, with over $10 million, an increase of over $8 million or 512% when compared to the end of the second…

Thank you, Dr. Shane. I’ll provide a brief overview of our financial results for the second quarter of 2020 compared to the prior year period. For the three months ended June 30, 2020, compared to June 30, 2019, total net revenue was $10,028,000, compared to $1,639,000, representing an increase of $8,389,000 or 512%. The increase in revenue was attributable to increased global demand for disinfection and infectious disease controlled products in response to the SARS CoV-2 Coronavirus global pandemic. In the second quarter, we saw a significant demand for our product with our Hospital-Healthcare, TSN and new Commercial sales channels. To further breakdown revenue, SteraMist product based revenues was $9,235,000 and $1,504,000, representing an increase of $7,731,000 or 514%. Service based revenue was approximately $793,000 and $135,000, respectively, representing a year-over-year increase of 487%. Domestic revenue was $8,392,000 and $1,428,000, respectively, an increase of $6,964,000 or 488%. International revenue was approximately $1,636,000 and $211,000, respectively, representing an increase of $1,425,000 or 675%. Gross margins were 55.5%, compared to 59.5%. The lower gross profit was attributable to product mix and sales. Income from operations was $3,657,000, compared to a loss from operations of $535,000, representing an increase of $4,291,000. The increase in net income relates to higher revenue and gross profit, offset by increased operating costs. Net income was $3,657,000 or $0.03 on a per share basis, compared to a net loss of $585,000 or zero cents on a per share basis, representing an increase of $4,242,000. EBITDA was $3,829,000, compared to an adjusted loss of $356,000. For additional income on the calculation of EBITDA and the reconciliation to our GAAP net income, please refer to today’s press release. Cash provided from operations for the six months ended June 30, 2020 was $5,385,000, compared to cash used in operations of $120,000…

Thank you, Nick. So my closing remarks, we are all very encouraged and I look forward to a continued strong growth in the second half of 2020. We’re also encouraged by the substantial progress and promising business development initiative undertaking that targets to secure our new revenue channel, while adding new customers and penetrating our current client base. We plan to achieve such growth by continuing to excel in our marketing collateral and initiative, expanding customer referral, ongoing public relations, provide the best five star customer service and always growing our sales and customer service team. We’re also planning to expand and almost double a new Frederick facility to accommodate growth. Also in the plan is an uplist to NASDAQ market in the coming month, trading under the symbol of TOMZ. Our research and development will continue to be a top priority as we develop new products, protect current and new intellectual property, and further and finalize many ongoing outstanding international product registration. TOMI will continue to work on increasing shareholder value through our revenue growth, customer penetration, IP initiative and effective deployment of capital. As we have advised on previous calls, we reiterate that, TOMI is a long-term growth opportunity and we are striving for SteraMist to become the standard in the industry. TOMI continues to leverage our capabilities to meet the needs of our healthcare providers and first responders that are at the forefront of this pandemic. I’d like to thank once again. Thank the first responders and their families who have risked much in their occupation. And finally, I want to thank all of our TOMI team members, who delivered quality service every day to our customers domestically and across the world. I’d like to thank everyone who’s joined our fall. Listen to our call over the internet. Stay tuned for good things ahead. I’ve answered under fair disclosure many of your email questions and we will always strive to innovate for a safer world. Operator, we have a few minutes, I’ll open the floor to take a few questions either by email. First question?

[Operator Instructions] Okay. Our first question comes from Zack Sklar [ph]. Zack, please state your question.

Hi. I’m wondering if you can give us any indication of future revenues for the upcoming quarter?

We -- Zack, we don’t give forward looking numbers yet, probably, in 2021 we will, but currently we don’t. We look forward to having a great second half. Thank you for the question.

Next on the line we have John Lee [ph]. John Lee, please state your question.

Good afternoon. Can you talk about your capacity and how much your added capacity will add to potential revenues?

We are able to handle our current capacity. But we’re hoping that and we know by expanding capacity wise both from our office and staff wise we’ll be able to handle anything that we have in our pipeline, which is very large pipeline at the moment. Thank you.

Great. And also what…

Operator, thanks for cutting off.

Next on the line we have Barry Mills [ph]. Barry, please state your question. Oh! I see he disconnected. Okay. Next we have Alex Tillman [ph]. Albert -- Alex, please state your question.

Hi, Dr. Shane. I appreciate you taking the question. I was hoping maybe you this year hoping to provide some guidance on the deposit system and some of the guidance that you gave us maybe is on intentionally in Q1 of the robust performance in the first half versus the second half and what exactly happened there, because I think that’s kind of what led to today’s price situation?

So I don’t comment on stock market prices, nothing organic.

Right, sir. What I’m trying -- you heard my question is, how does the deposit system work for you guys and are you currently still seeing a bunch of deposits being put down?

So we started taking deposits, as you know, we had so much equipment and inventory and we had to replenish it, to replenish it we took deposits in parts which probably showed that we had the revenue we had and then we started to fill those. You have to understand that our equipment is technical, it requires training. Our company is so big and by selling hundreds and hundreds, which we have sold, you’ll see that it requires a lot of staff to get this in the operation and out in the public working and that’s the reason. Thank you for the question.

Right.

Okay.

Next on the line we have Marty Gocaston [ph]. Marty, please state your question.

Hi, everyone. I want to congratulate you all on a phenomenal quarter and thank you for being in the front lines of this COVID pandemic. Just had some questions regarding the FDA and you’re working with them? Is there some kind of as far as timeline on things that you guys are looking on getting cleared or approved through the FDA, especially in the food and safety area.

So, as you would assume, working with any government agency, they don’t give you timelines. We know that there are six levels of, let’s say, that you have to go through with the FDA and I think we’ve passed through level five. So I can’t give you a timeline. The same thing with the FDA, with the Food Safety, we go through the EPA for this label and they have a certain criteria, which is a time limit that they allowed until they give you an okay. And we think that we’ll have that label sometime maybe late 2020 or early 2021. I hope this answers your question. Thank you. Operator, we’ve time for one more question.

Our last question comes from George Froley [ph]. George, please go ahead.

Hi, Dr. Shane. How you doing?

Good. How are you?

It was a great quarter.

Yeah.

But there’s just too many shares outstanding, I mean, the stock whatever you did, the market didn’t like it. It’s off 30%, 40% today, you love percentages. I mean, it telling you a message. I think you’ve got a reverse split like 10% or 12% for 1. So something meaningful can be shown on the earnings call.

Okay.

Thank you.

Thanks, George. Have a good day.

Thank you.

With that, we’ll go ahead and close it out. Thank you all for listening.

Okay. Ladies and gentlemen, that does conclude today’s teleconference. You may now disconnect your lines and enjoy the rest of your day.