Good day and welcome to the iAccess Alpha Virtual Best Ideas Fall Investment Conference 2025. The next presenting company is TOMI Environmental Solutions. If you would like to ask a question during this webcast, you may do so at any point during the presentation by clicking the Ask Question button on the left side of your screen, type your question into the box, and hit Send to submit. I'd now like to turn the floor over to today's host, Dr. Halden Shane, CEO and Chairman of TOMI Environmental Solutions. Over to you.
Thank you, and thank you all for joining our presentation from wherever you are in the world. TOMI has a product called SteraMist. We are a leading disinfection decontamination product. Our slogan is "Innovating for a safer world," and we are certainly doing that. The next slide you see is a forward-looking statement. I'm sure we've seen many of these, and if you want to take a moment and read it, if not, I will go on to slide three. Vision and value proposition, that's what we are. We're faster, we're safer, we're eco-friendly, and we're revolutionizing cleaning and disinfection by providing a disruptive, easier, and safer way to disinfect. Compared to our competitors, we're much faster, we're safer, there's no residue. The only residue is eco-friendly oxygen, humidity, and our efficacy is broad, where we get six logs and greater kill.
Some of our premier clients will demonstrate to you our growing momentum and our sustainable growth. We have an excellent list of clients that are constantly reordering our product and helping with the mission of making SteraMist a standard in the disinfection decontamination space. As you can see, some of them are Pfizer, Merck, Pharmacia, Fresenius Kabi, NIH, USDA, FDA, NASA, etc. This shows you how accepted our product is becoming and how useful it is in many verticals, which I'll go into in a moment. What is SteraMist? How does it work? SteraMist takes a very low percentage hydrogen peroxide, 7.8%. It takes this peroxide and puts it through a cold plasma arc, which was developed by DARPA.
It alters the structure of the hydrogen peroxide into a hydroxyl radical, which makes it faster, doesn't require a wipe or rinse, and it's portable, scalable, and it creates a contact to viruses, bacteria, other organisms, including weaponized types of materials, and causes an oxidative burst, which leads to destruction or death of a bacteria, bacteria spore, and/or neutralization of a virus. Moving right along, DARPA, who has designed this initially for weaponized anthrax, TOMI acquired the patent rights and expanded the registrations worldwide, where currently we have 32 granted patents, over 200 plus trademarks registered in 50 states and over 30 countries. The market opportunity is unbelievable. It's billions of dollars in relationship to the biotechnology market, the food and beverage market, commercial services, and healthcare.
This slide will show you a little bit of breakdown of that market and how many trillions of dollars worldwide over a period of years. You can see that's available to be brought in as potential revenue. Currently, the way the company is set up, we have five divisions. The first is biotechnology or life sciences. These are the pharmaceuticals, the variants, basically laboratories, tissue banks, government, cold and cell and gene therapy, food and beverage, anything from manufacturing to packaging to processing, transportation, grocery stores, meat and poultry, vertical farming, honeybee survival, which I'll talk to you in a little bit, and prepared food. Our commercial services cover everything from hospitality to education to mass transit, aviation. Anywhere you can think of a potential use of this product would be covering any vertical that you can really think of.
Healthcare, whether it's in ICU, if it's in just general operating use, inside office use for medical devices, nursing homes, EMS, transportation, etc. It's utilized in surface decon, area decontamination, mold remediation, mildew remediation, crime scene biohazard, and the list really does go on. If you look at the advantages of our product as it stands out among the leader in the disinfection decontamination space, you'll see that we get six log kill or greater. That's the level of sterilization. A rapid kill in some situations in five seconds. Superior material compatibility compared to our competitors. No wipe, no mixing. There is no residue, which will be really important in relationship to the Food and Drug Administration. Submicron particle, we're able to have a small particle to get around the virus, the bacteria, and to create the oxidative burst that basically kills it or neutralizes it.
Again, as I stated, broad efficacy. It moves like a gas. So if you're treating a room, you open up a drawer, cabinet, it will go everywhere. And just imagine a gas, and that's where it will go and disinfect or decontaminate. It's very cost-effective, and its daily use for preventive measures is outstanding. Business model involves recurring bit solution. It's a razor-blade type model. Equipment sales, we install a base, and we have a recurring base. The consumables, quarter one of 2025 versus quarter one of 2024 showed an increase of 40% with a gross margin of about 60%. We have an integrated platform and OEM partners. These partnerships have been put in place in the last half of last year, 2024. They're helping and building our $21 million integration and build-out pipeline, shortening our sales cycle of our equipment.
These partnerships will create the ability to have our product have SteraMist integrated into things like isolators, sterilizers, hatches, biosafety cabinets, material transfers, RABSs, etc., mostly in the life science and vivarium fields. Why SteraMist? We do it all from start to finish. An endless markets, consumable business model, and demand for preparedness and emergency is and should always be there. Product overview, we have our SteraPak and our surface unit. They are basically the spraying systems that are portable, five seconds per sq ft. We have whole room fogging for advanced fogging for both air and surfaces. These are in the environment system. Our new SteraMist Transport for ambulances, EMS vehicles, and our NV Plus.
Also, our custom integration, which is in extreme demand, is fogging that's enhanced and fully integrated into a room, a building, a system, and it involves our SteraMist Hybrid custom engineered system or our SteraMist Integrated SIS system. We have platform options, whether it be standalone for pharmaceutical manufacturing, for data centers, supercomputing facilities, unbelievable applications for this wonderful DARPA-created product. This slide here will give you an example of all our units, and not to take up much time, you can pretty much see what they look like, and any more details, obviously, we'll be able to answer that later. Razor-razorblade model. We get the equipment out there. That's basically the razor. The razor blade is our proprietary solution. It comes in 32-ounce, one-gallon, five-gallon, 55-gallon drums. It gives us our highest margin.
We've had a 40% growth in the first six months of 2025 compared to that same period of 2024. I previously mentioned that. From concept to commission, designed in-house, deployed services, qualification, and validation, we offer 24/7 service for outbreak response and ongoing contracts. Custom integration. We started out with the concept back in 2021. We started to go ahead and create a few of these. We closed the pitching in 2023. It takes sometimes years to get together with the architects, the engineers, and the building owners to go ahead and create the model to build it. Once it gets in there, as you can see, in 2024, we launched our SIS. Now you can see that in 2024, compared to 2025, we already have as many in as we did in 2024 that are ready to be installed.
Our current pipeline is $15 million of open project proposals with $7 million in active specific designs happening at this moment. The life science market, they're shifting away from ethylene oxide, EtO. This is going to open up a huge market for us. BSL-4s and 3s are expanding. There was a lot of capital restraints early part of this year and last part of last year. We're finding now that these restraints are being lifted and the market itself is interested in our product. And there's a high containment labs, especially in North America, Europe, and Asia, that's showing that these labs post-COVID are ready to go into new equipment, and we're there to fill their needs. We have regulatory synergies with FDA and EMA compliance, USP 797 and 800 guidelines. As a case study is Philips, the medical device market is about $27 billion in 2024.
Our goal, once again, our goal is to go ahead and use the data coming out of Philips for an FDA Class 2 medical device for recycling it, disinfecting it, repacking it, replacing manual wipings, going into automated SteraMist systems, partnering with many people, including Esco and enclosures since the last part of 2024, and the completion of this Philips project and their continued usage and data collection will assist with our FDA 510(k) submission. This is very big. The food safety market is also huge as it's restricting the use of ethylene oxide, going to safer, eco-friendly products similar to SteraMist. A couple of case studies, Nestlé is using this currently, I believe, in four of their facilities in Arizona, Germany, Switzerland, South Africa, and we have many more we're expanding into.
Egglife is another case study that we're using where they've purchased a number of them to date. They have a 456% increase in sales. Healthcare industry can be challenging. COVID really knocked them out. Nobody's that interested in new infectious control products. However, we have quite a few healthcare facilities using our product. And once we're able to handle some capital restraints and hires various people in this industry, we feel we will be back and be a leader in it. But we have some studies where C. diff affects 500,000 people annually, and 30,000 of them will die. And we do have an EPA registration for C. difficile. Moving rapidly along to slide 23, Trinity Health, St. Francis did a case study.
It showed basically that the total facility C. diff cases when we began the study was in the teens, and after they used it, it was a single case. Very impressive. And it shortens the amount of time to do a terminal clean in a facility. And we have other studies to show that. Commercial industry, our PRO Certified. This is a teaching. It's for biohazards, environmental remediation, and other professional remediators. It's ongoing. I recommend anyone out there in the biohazard remediation field or emergency preparedness take our product, make it one of the only tools in its tool chest. And this industry is going to be in the forefront and the lead to helping in preparedness and advancement of outbreaks, whether endemic or pandemic or just a localized outbreak. Revenue growth, as you can see over pre-COVID levels, we're at plus 38%.
David, do you want to spend a couple of minutes on this?
Yeah, absolutely. I think the key to remember is we are a disruptive technology with long lead times, and so we have a lumpy revenue, and we're subscale, but if you look at our just so everyone is aware that the blue boxes, as I call that, is pre-COVID, so exclude the COVID year, and then the orange or the brown orange-brown box is after, and you can see that we went from 5.6 to 7.8, which is 38%, but impressively, we've grown both within the product revenue and the service revenue. Back to you, Doc.
Thank you, so also the fact that some really important are tier one customers of our disruptive technology and long lead times. Currently, our pipeline with our integrated mobile and our service is around $21 million. Service and support expansion. As you can see, we have growth in all those areas, specifically our iHP service. It accounts for 70%-90% of total service revenue. Annually, it's about $1.3 million of $1.7 million in 2024. And to date, we have support services in $203,000 versus only $105,000 in 2024. So overall stability, our services have gone from $897,000 in 2017 to $1.7 million in 2024 and increasing in 2025. Sustainable growth drivers are pipeline year-over-year. Sometimes it's seasonal. We're able now to get past our 18th month focused expanded product lines and services to address new applications of our technology.
Accelerating momentum we're seeing across all areas. And iHP has key traction scaling in key markets. We have a clear roadmap to capitalize on market opportunities. We're executing now with people, increasing our sales team, enhancing our KOL network, technically improving our service, expanding our R&D protocols to existing members and clients. We're training people. We're improving in our regulatory and increasing our social marketing, our public relations, and expansion in press releases, as you can see with the participation in your little seminar here.
Our growth drivers and pipeline. Again, I'll go over it. Pipeline $21 million, active design $7 million for 2026 and 2027 already. Near-term $5 million in 2025. And year to date, we've booked about $5 million. Return on investment, you can see we've about a $12 million break-even. Gross margins are very nice, 62%. Our net income, as you can see, with $12 million is about 2%. Our net income with $18 million is about $3.2 million, 18%. Benefits is this razor-razorblade model. Last slide is increased probability of an outbreak, endemic, or a pandemic.
You can read papers all over the world, journals, and you'll see that there's potential impact of economic loss, disruption of global travel, and regulatory damages. There's a tenfold increase. At least one of these 13 infectious diseases could end up in a pandemic. There's 44 countries right now around the world that are experiencing issues. Some of these are MERS, SARS, Ebola, COVID, influenza, Lassa fever, Middle East respiratory syndrome, TB, measles, and invasive bacterial infections. So again, with extreme alterations in our capital, we can go ahead and start covering many of these countries that are experiencing these issues even today. We are focused also in the future on space travel, on servers, AI. We are the answer. SteraMist is the future of disinfecting and decontaminating space all over the world and in all verticals. With that, I thank you.
We shall look for any questions. One of the questions is service revenue grew over 30% year-over-year. How repeatable is this growth, and what industries are driving the most traction? The most traction in our in-house service revenue would be in the life sciences, in the pharmaceutical space. They will have to have a disinfection decontamination process every six months, depending upon what country they're in. Our revenue should continue to grow year-over-year. I think that's going to be one of the hallmarks of our technology going forward as we keep on signing contracts for service revenue. You noted $15 million in open opportunities, $7 million high priority. What gives you confidence in conversion time and win rates? The majority of these we've already won. We're in the middle of doing quotes.
It takes years sometimes for them to go ahead and accept while we work with their architects and their engineers in designing this technology. So we have a lot of confidence in the conversion of this at this moment. There's another question up here about the efficacy of the system of decontaminating measles, exposed facility, your ability to ramp up production. We are able to use our backpack, and we can ramp up production pretty quick with that. Of course, depending upon the amount would be capital dependent upon how much we have to meet a large, large need. Let's refresh this. So some of the really exciting areas we're working on and current projects, I think, is if you take nothing away from this, think about this. Recently, after we reviewed the U.S.
Food and Drug Administration's final rule that they published September 3rd, which was 90 FR 42535, and I'm reading this, amending 21 CFR to broaden the permitted use of hydrogen peroxide as a secondary direct food additive. This was a stumbling block we had until they did this. So now this is going to be opening up the food market and food production because we don't have any trace residues. And we will be able to start doing more work in the verticals as food safety, packaging, transportation, storage, packaging, pre and post-harvest, indoor vertical growers, including cannabis. Another great opportunity we have. We all know how important honeybees are to the world and that the colony is under attack worldwide from the Varroa mite, which is the most dangerous damaging honeybee pest in the world.
The mite leads to destruction of the colony, destroys the body of the bee, and weakens it. We have some studies. This is going to be a very pronounced economic impact if it's not treated by the beekeeping industry around the world. We can treat the hive and the bees and avoid damage to the hive by destroying the mite with SteraMist. Another thing to think about is the global medical device market. I gave you a case study on Philips. It's $23.78 billion last year in 2024, and it grows at a CAGR of about 10%. We're currently working with Philips, helping them recycle heart monitors. The disinfection with the SteraMist allows repacking them so they can be sent to other patients. It will replace the manual wiping by using an automated SteraMist system.
The completion of their project and the continued usage with data collection will assist with us filing our FDA 510(k) submission, which we are extremely excited about. And it's going to open up many avenues and lots of revenue to our growing company. And with that, I would thank you all for listening.
Thank you very much. That does conclude TOMI Environmental Solutions presentation. You may now disconnect. Please consult the conference agenda for.