Good afternoon. Thank you for joining us today for the TOMI Environmental Solutions Investor Update Conference Call. On today’s call is TOMI’s Chief Executive Officer and Chairman of the Board, Dr. Halden Shane; TOMI’s Chief Operating Officer, E.J. Shane; and TOMI’s Chief Financial Officer, Nick Jennings. Dr. Shane will provide an overview of recent business highlights, financials, and future plans, E.J. and Nick will be available for the Q&A. A telephone replay of today’s call will be available through April 15, 2024, the details of which are included in the company’s press release dated April 1, 2024. A webcast replay will also be available at TOMI’s website, www.tomimist.com. Please note that information contained within this presentation is relevant only to the date of which it was recorded, April 1, 2024. And you are therefore advised that time-sensitive information may no longer be accurate at the time of any replay. Certain written and oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements should be evaluated in light of important risk factors that could cause 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. In addition, TOMI will discuss certain non-GAAP financial measures during this call. The company uses its non-GAAP measures because it believes they provide useful information about operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release dated April 1, 2023. I will now turn the call over to TOMI’s Chairman and Chief Executive Officer, Dr. Halden Shane. Please go ahead.

Good afternoon, everyone, and thank you for joining the TOMI Environmental earnings call. I hope everyone had a nice Easter Sunday. Today, we will provide operating and financial results for the full-year 2023 along with an update on a few key current focuses for the company. During our 2023 calendar year, we delivered multiple custom-engineered systems to key customers, diversified our product lines to support our expanding customer base, and the related utilization of our SteraMist technology, and continue to build out our sales infrastructure through the expansion of our distribution network. Our year-over-year revenue declined due to the timing of certain customer orders and the frustrating long approval processes. There was tremendous progress made in 2023 within the company, and we continue to do business with premier companies around the world. Our list of clients keep getting larger, and our latest product mix with the SteraMist Transport, SteraMist Integrated System, NV Plus, and Hybrid puts us in a great position to provide much improved financial results moving forward. As stated throughout last year, we remain focused on expanding our internal and external sales infrastructure and business development initiatives. Last year, we expanded our presence both domestically, and on an international basis with new customers across our division, independent sales representatives, and broader distribution network to the United States. Most recently in November of 2023, we announced the addition of Sterile Grow, a United States based distributor and consultation company in the food and cannabis market. Sterile Grow has demonstrated noteworthy achievements in the cannabis and food markets, specializing in controlled environment agriculture, particularly in integrating systems for large scale indoor cannabis cultivation. In November 2023, we entered into consultant agreement with BEAMS, LLC to strengthen and expand the TOMI SteraMist network, and increase business development in the commercial market.…

Certainly. Everyone, at this time, we will be conducting a question-and-answer session. [Operator Instructions] Thank you. Your first question is coming from [Jack Williams from Warren Capital] (ph). Your line is live.

Hi, thanks for taking the question. So, you guys launched a handful of new products in 2023. Can you provide some color on if these new products expand your addressable market, if they're mostly kind of for existing customers or verticals?

Okay. E.J., you want to take that if you can?

Yes, certainly. Hello, everyone. So, the new product launches are for both current customers and new customers. They're made and designed for a variety of different industries. For example, the transport is primarily designed for emergency services. The NV Plus and the SteraMist Integrated System standalone version are two that will be launched live at Interfax in 15 days, in New York. And we look to seeing a lot of results there, considering they were designed with a lot of the customers will be meeting there as well.

Got it, it's helpful. Thank you.

Thank you. [Operator Instructions] Your next question is coming from John Nelson. Your line is live.

Hi, Halden and team. Thank you for taking my questions. My first question is, do you have the cash resources to get you to profitability?

We believe we do at the moment, and we do have the resources in place, yes.

Okay, good. And can you give us some updates on some of the various opportunities that you've been exploring in past sessions regarding food produce, and hospital cleaning, and semiconductor plants, and service pro-type operations?

Sure. So, I mean, yes, as mentioned on the call, we're revamping the TSN into a professional certified program that we will be issuing various badges as levels of achievement. And we think that bringing that domestic and internationally with the new hires we have, will be extremely beneficial to the company. As far as the ambulances, we have customers or distributors that have customers in both, North America, Canada, and the United States that's interested in our transport, and we're hoping to see movement this year in that area. Food safety is, every time I give a quarterly update seems to be getting busier and busier. There's a tremendous interest out there in the food safety end, and from both transportation, processing and general protective food safety as a country and as a world, because obviously food prices are going up and food's becoming more scarce. So, that I think will be fighting for the lead, among our divisions with life sciences in the very near future. Hospitals, we are still coming out with new marketing this year for the hospital markets, and with some of the advancements in some of our new pathogens, I think that they're going to be looking to replace a lot of the excessive disinfection equipment that they bought during the COVID pandemic, which by now is either not working or they're ready for something new. So, we see a pretty bright horizon in all those areas. I don't know if I missed any, but I know semiconductors you mentioned, but we really haven't done much with -- yes, we haven't done much with that yet, but I think it's going to be definitely another market that should be interested in our product.

Okay. And what about exploring the use of SteraMist in addressing the substitution for ethylene oxide?

Right, I mentioned that on the call too. I think that that's going to be a very interesting new niche for us. Now, the point being this ethylene oxide, the EPA is putting some real restrictions on both from an indoor environmental and outdoor environmental aspect. And it has a lot to do with exhausting out from these large medical sterilization facilities, medical material supplies equipment, and it's going to be an expensive process to change their exhaust system. So, I think some of them will end up probably changing it and stay with ethylene oxide. Many will be looking for alternatives that are more eco-friendly and less cost-generic. So, I think we have a great opportunity here. We still have a little bit of regulatory stuff to go through that we're working on and there should be some interesting updates in future earning calls about that.

Okay. And I know you're exploring the possibilities of use of your solution in addressing the PFAS and PFOA problems. Can you give us any more details about how you would go about using your product to treat that problem?

Well, so I mean, I really can't. I can do it on a personal basis, which I will right now, but as a company where with the amount of employees we have and with the amount of effort and work as you just heard that we're doing, it's not up there. It's on our list to accomplish this year. I think both from water safety and from these areas where these yards are that they keep throwing this, all these forever chemicals. I think we potentially have a shot at breaking them down and eliminating it, whether they're put into certain bins that we treat or the process itself. So, we're still looking at it. I'm more than anyone in the company and I'm hoping that because that would be, if we're able to break into any aspect of that, whether it's the way that these products, these forever chemicals are breaking into our food supply through the soil and through the roots of plants or whether it's into the water supply or literally that they're just toxic in the environment, will be a great win both from a financial aspect of our company and from a humanitarian aspect of what this product can do for the world.

Good. Thank you. And then, you mentioned the delays in the fourth quarter revenues. Would you expect most of that to catch up in Q1 or just over the next three or four quarters?

I think that we'll probably -- it's going to be a little strange I think the second, third quarters, which usually are not our stronger quarters are going to be a really strong quarters for us. I think we'll definitely be showing profitability by then. And I think once we do that, then the future will be there going forward into 2025, 2026. We have a tremendous amount of bids out there and people interested. And even just before I went on the call, I looked at three emails and three different verticals of people that want our product over the competitors. So, we have a really good group, a good plan, and as the call stated, the right initiatives going forward to make it a profitable company.

Okay, good. And just addressing the competition, it's always -- it struck me as TOMI having a far superior product in the markets that you're addressing. Has there anything that's changed on a competitive level in the last three to six months?

I mean, I don't follow it as much as I used to, because when it comes down to it, nothing can compete to us and goes from a time and efficacy standpoint. So, the fact that we're not caustic, that we're the quickest and probably the most effective, it's going to be hard to find anybody competing unless they are violating our patent and then we'll go after them. But at the moment, we need to grow the company and we need to close out these deals going forward and to maintain and become profitable and maintain profitability.

Okay, excellent. Thank you very much.

Thank you very much for your support. And I know it's been a while.

Thank you. That concludes our Q&A session. I'll now hand the conference back to management for closing remarks. Please go ahead.

Once again, I just want to thank everybody for your support and for joining us today. And I hope you have a great rest of the year.