Good day, ladies and gentlemen. Welcome to the TOMI Environmental Solutions first quarter 2023 financial results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Instructions will be provided at that time. I would now like to turn the call over to your host, John Nesbett, with IMS Investor Relations. Mr. Nesbett, you may begin.
Good afternoon, and thank you for joining us today for 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, E.J. will report on the company's growth and latest trends, and Nick will review the financial performance for the most recent quarter before addressing any questions you may have. A telephone replay of today's call will be available through May 29, 2023, the details of which are included in the company's press release dated May 15, 2023. A webcast replay will also be available at TOMI's website, www.tomimist.com.
Please note information contained within this presentation is relevant only the date of which is recorded May 15th, 2023, 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 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 non-GAAP measures because it believes they provide useful information about the 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 May 15, 2023. I will now turn the call over to TOMI's Chairman and Chief Executive Officer, Dr. Halden Shane. Please go ahead.
Thank you, John. Hello. Welcome to TOMI Environmental earnings call. Today, we'll be presenting the company's operating and financial results for the first quarter of 2023, along with positive updates of our current initiatives. Thank you all for joining us this afternoon. Our first quarter revenue was impacted by revenue recognition rules and customer-imposed delivery restrictions for equipment and CES orders. Our recognized revenue and our customer sale backlog for the three months ended March 31st, 2023 together was approximately $3,129,000, which was comprised of the recognized revenue of $1,582,000 and a customer sales box backlog of approximately $1,547,000. We anticipate improved results for the second quarter and the remainder of the year. We are very optimistic about our performance going forward.
With our sales backlog, expanding distribution network, and robust sale pipeline, particularly for our CES products, we're anticipating reporting improved financial results for the remainder of calendar 2023. Our market positioning and model remains very strong. From a market positioning standpoint, there are some industry trends as well as regulations that are opening up some massive market opportunities for the company. One of the largest opportunities that's unfolding is that the EPA has proposed cutting ethylene oxide emissions by 80% at approximately 86 commercial sterilization locations in the United States. This could create a significant market void for the chemical disinfectant used for sterilizing medical devices and equipment. TOMI's solution, utilizing ionized Hydrogen Peroxide, has been identified as a viable alternative that leaves no residue and has decontamination efficacy upwards of 99.9999%.
Compared to ethylene oxide, SteraMist products are non-toxic, non-corrosive, do not cause temperature damage to medical equipment or devices. SteraMist's superior solution offers a perfect alternative, given it is faster, more environmentally sustainable, and has no carcinogenic risk to site workers and those living close by. From a business model standpoint, our business reported a high gross margin of 59.9%, even with lower than anticipated revenue in the quarter. Finally, while still a relatively low portion of overall sales, higher margin solution sales are growing, and with our strong pipelines of CES sales, solution sales should become increasingly more predictable. We are optimistic about achieving better outcomes for the company as we have taken several measures to strengthen our market position. One key initiative is that we have proactively expanded our distribution networks and manufacturing representatives.
In the first quarter of 2023, we welcomed and executed agreements with Janz Corporation, PennCare, New England Scientific Associates, or NESA by Baker, Ares Scientific, Crowe Food Safety, and Technimount Systems. Janz, a U.S.-based medical supplier and distributor, holds government contracts to provide medical and health products to various agencies, presenting an opportunity for us to expand our reach into the already familiar government sector. PennCare, an emergency medical service provider, will help us strengthen our presence in said markets throughout the United States. NESA by Baker is a leading manufacturer of biotechnology and research equipment and will act as a new independent manufacturing representative for TOMI, while Ares Scientific has evolved in its service model and now serves as a new distributor of TOMI products.
Crowe Food Safety will help us expand our global footprint in the food safety and hygiene market with a distribution focus on South Africa, Sub-Saharan Africa, representing our first venture into that part of the region. Technimount System, a highly reputable manufacturer and distributor, will serve us as an exclusive distributor of our SteraMist iHP technology to the emergency medical service industries throughout Canada, further expanding our presence in this key market. Our expansion efforts in Africa extend beyond our recently added distributor in the food and hygiene market. To establish solid engagement in a larger market such as South Africa, Kenya, Uganda, Ghana, Senegal, Egypt, and Nigeria, we have donated four SteraPaks for various government agency-backed labs in Africa, including the Department of Defense, the DoD.
By partnering with local governments and healthcare organizations, we are working to implement effective and sustainable disinfection protocols to help protect vulnerable populations from the spread of diseases such as malaria, Ebola, monkeypox, and tuberculosis. Research universities remain a key stable market for us and have proven to be a faster sales process. We're pleased to have onboarded the University of Hawaiʻi and Oregon State University in the 1st quarter of 2023. As this is a market space where everyone knows each other, positive references and customer satisfaction is key. The Dana-Farber Cancer Institute, the location in which one of our original CES systems was installed, continues to create referrals and sales opportunities for us in the marketplace. One of these said opportunities is Orna Therapeutics, a leading biotechnology company located in Massachusetts, who we recently delivered a one-applicator Custom Engineered System to. That's our CES.
During the first quarter, we also entered into a service agreement with LFB USA, a subsidiary of LFB Group, a European biopharmaceutical company specializing in the development and manufacturing of innovative biotherapies. The agreement commits LFB to engage TOMI for a high-level disinfection of one or more facilities. Ongoing studies remain a focus as we continue to grow internationally and domestically. For example, we received final acceptance after executing an extensive material study in Germany to prove the efficacy of SteraMist against all germs of all categories, spores, gram-positive bacteria, gram-negative bacteria, fungi, found directly on specific materials in clean rooms, laboratories. Thus adhering to the industry's strict regulations and guidelines, all runs showed a significant log reduction and was a pass. The German biotechnology is a substantial opportunity for TOMI in the future, and we will keep you appraised.
In the United States, we're working with the government and TOMI service network members to prove and demonstrate SteraMist efficacy against ricin and fentanyl, which is critically needed in this country. It has been publicly announced that SteraMist has proven successful as a direct spray on cannabis flowers to combat common molds and fungi without affecting the quality of the oil or plant. We are currently in the process of registering SteraMist state by state to ensure that our future customers in this rapidly growing cannabis industry can choose SteraMist as their trusted decontamination solution with confidence. The cannabis opportunities continue to positively evolve for us. Vertical Crop Consultants, a food safety independent sales representative partner to TOMI as of late last year, was onboarded as a formal customer during the first quarter of 2023.
Vertical Crop has generated interest in the industry during their short time with TOMI, and now as a customer, completed this joint study with an American seed company and head breeder for one of the world's most famous cannabis strains. This third-party study found SteraMist to be effective in eliminating Aspergillus and powdery mildew while protecting cannabis growth and without affecting quality. Each phase of the study proves SteraMist iHP can be a consistent solution to prevent spores at every stage of the growing process, a huge savings for the industry. Plum Island Animal Disease Center, owned and operated by the USDA, is a high-security laboratory facility that conducts research in animal diseases that pose a threat to agriculture and public health, and is 1 of the few facilities in the world equipped to study highly infectious diseases that affect animals.
They have chosen to partner with Tomi in a GLP study on hand, foot, and mouth disease, or HFMD, a highly contagious viral infection that commonly affects infants and young children. We anticipate successful results on combating this virus, which can lead to viral meningitis, inflammation of the brain and spinal cord, and even paralysis. Tomi may begin work with the EPA once again to update its label with HFMD, TB, and other recent claimed accomplishments in due time. Finally, we've just launched our new website and domain, steramist.com, S-T-E-R-A-M-I-S-T dot com. The Tomi marketing team has been working diligently to create a fresh, modern, and user-friendly online experience that accurately reflects our company's values and mission, innovating for a safer world. This new website will enhance our customers' and partners' ability to engage with us and find the information they need quickly and efficiently.
The new site was launched this morning, so please visit steramist.com, S-T-E-R-A-M-I-S-T dot com, and share your thoughts with us. At this point, I'd like to hand the call over to TOMI's COO, Elisa Shane, who will provide you with an overview of the company's upcoming plans and objectives for the rest of the year. Thank you. E.J.?
Thank you, Dr. Shane. Good afternoon, everyone. I appreciate the opportunity to share a few updates on TOMI's progress and upcoming developments on today's call. I will begin by discussing TOMI's international developments and the positive impact they will have on our financial performance. As Dr. Shane mentioned earlier, we have a promising opportunity with a German biotechnology company that has the potential to result in significant orders. I can confirm that our distribution partner in Germany, Universal Disinfection, has done an excellent job of fostering this relationship. We anticipate this company to purchase mobile environments and multiple Custom Engineered Systems and expect these orders as the company is building the production sites now for SteraMist use. Universal Disinfection has had other significant progress helping to expand SteraMist into various industries. They continue to undergo the qualifying process as suppliers for decontamination services among leading pharmaceutical companies in Europe.
One of the leading companies in clean room technologies in the DACH region is planning to use SteraMist in material chambers, airlocks, cabinets, and containment isolators. Universal Disinfection has also entered the transportation industry by conducting a practical study of the DRK, or German Red Cross, to decontaminate rescue vehicles. Universal Disinfection is very optimistic that their hard work and patience invested in these endeavors will yield fruitful outcomes with significant financial success for both Universal Disinfection and TOMI in Europe. We are actively seeking to establish more partnerships to accelerate our sales and business development efforts, both domestically and internationally. As mentioned by Dr. Shane earlier, the new partners we have onboarded are excellent additions to our sales team and are expected to generate positive returns. We are confident that these will create further opportunities for business development and should create a substantial increase in revenue.
We are fully equipped to support these partnerships to ensure success, particularly if they demonstrate the same dedication as Universal Disinfection has done in Germany. We are in negotiations with many other companies worldwide and hope to shortly announce additional distribution partnerships, including a United States chemical manufacturer with specialty in biosafety management, a local Maryland energy industry expert with substantial working knowledge of regulated technologies, a medical equipment manufacturer in Italy, and a supplier of clean room products and disinfectants in India. The latter region has been an area in which we have encountered some challenges when considering suppliers and opportunities for the past year, the latest interested party may be suitable.
Receiving global acceptance as a provider of decontamination services and equipment represents a major milestone in working with multinational pharmaceutical and biotechnology corporations, as it promises to allow for easier acceptance in future and additional facilities of the corporation and its subsidiaries. As you may know, we have been providing iHP decontamination services and selling capital equipment to Pfizer facilities for many years, and they are just the first of many to grant us global acceptance. In June, we will be implementing and qualifying mobile environment systems to a global healthcare company that specializes in medicines and technologies for infusion, transfusion, and clinical nutrition at their facility in Brazil, who purchased their order at the end of last year. This company has been using iHP Decon services in their facility in Chile for the past few years, and one of their contract manufacturing sites in Portugal has a custom-engineered system.
I have personally been collaborating with the head of their technology center located in Mexico for the past 18 months. Following the successful implementation and qualification of iHP in Brazil, we are expected to explore opportunities to expand into their South African branch. With facilities in 47 countries across Africa, Europe, Latin America, Asia Pacific, and North America, attaining global acceptance with such a large corporation is crucial. While it is time-consuming process, it is well worth our patience as it will bring significant growth opportunities in the future. Our iHP service sales strategy continues to be a successful approach in penetrating these large corporations. Catalent, a continuous user of our mobile products and iHP service in both their Maryland facilities, are good referrals of our technology.
This quarter, we went and completed an iHP service with another Catalent facility in Kansas City, Missouri, for approximately $130,000. We are expected to win an Emergent iHP service for approximately $150,000 in Baltimore, Maryland. This win would be a nice addition to other Emergent users of iHP in Canton, Massachusetts, and Rockville, Maryland. Emergent has six other manufacturing product development sites worldwide. These are just a few examples of how we are slowly working towards gaining headquarter acceptance of iHP SteraMist. The timing for Custom Engineered Systems, iHP corporate services, and even the purchase of our mobile system products is subject to change due to customer timelines, but we maintain a healthy pipeline.
By the end of this quarter, we will have 14 fully installed Custom Engineered Systems, with all of them expected to be qualified and in use by the end of the first quarter of 2024, and dependent on end users' production facility, resulting in varying revenues of this solution and services moving forward. TOMI SteraMist technology is not limited to full decontamination for the life sciences, but also includes mobile systems that can be customized for packaging, seeding, and filling lines. We continue to work closely with highly respected indoor farming solutions company in their qualification procedures. Once final approval is received, we will announce this company who has committed to expanding the use of SteraMist through all future facilities. This indoor farming company has broken ground on new buildings and has budgeted for SteraMist expansion.
This is a significant opportunity for TOMI to showcase the versatility and effectiveness of iHP in the food safety industry and the potential growth this partnership can bring. Ongoing discussions for Custom Engineered Systems, installs, and upgrades with current and potential new customers has increased from 25 - 36, or 44% since our last call, while we have experienced a loss rate of only 14% when combining the 2021 and 2022 year. This positive trend is highly motivating, and we remain optimistic about our fully automated projects. During our previous call, I shared our vision of a streamlined solution for decontamination chambers, cabinets, cage washers, and module clean rooms. We have identified seven key partners that will help us in achieving this goal. These partners range from process design consultants to actual manufacturers of clean room equipment.
A key priority for us is to collaborate with these partners as swiftly as possible to establish sales and manufacturing of this turnkey solution. SteraMist Engineering has also been diligently working with a cutting-edge California-based cell therapy manufacturer on a revolutionary game-changing prototype for an industry that is expected to grow to $11.6 billion by 2030. The order received late last year for the two prototypes is currently set to be completed by the end of June 2023, and we look forward to sharing more details about this project once formally released. Tomi is making forward progress in fulfilling its promise of the SteraMist transport, as we are currently in the procurement of material. To support the launch, Tomi marketing is actively developing advertising materials.
The company's independent sales representative is working closely with the customer who started it all, who is now part of a four-state integrated network of physician clinics, outpatient facilities, and hospitals. This customer remains to show interest in purchasing more than 50 SteraMist transport units, and the TOMI representative is maintaining the relationship to ensure a successful sale. Our team recently showcased the SteraMist brand of products in several industry trade shows, including CEDA International, RIA International, the Lab Manager Leadership Summit, FBIC International, and the INTERPHEX Conference. April was a demanding month, meeting with both our existing and potential customers, creating new connections and strengthening relationships across various industries, such as life sciences, environmental testing, chemical manufacturing, and emergency services.
We managed to collect around 550 total contacts from these events, bringing our complete collection from trade shows to 770 for the first half of this year. Our sales team is working hard to convert these leads while meeting customer budgetary requirements. I would like to express gratitude to our patient investors who have supported us in this long-term investment journey. I want to reassure you that we are making significant progress in achieving important milestones. We have a lot of positive developments in the pipeline, and we firmly believe that they will translate into revenue growth and profitability. I thank you for your continued support. Now, I will turn the call over to our CFO, Nick Jennings.
Thank you, E.J., and good afternoon, everyone. I'll provide a brief overview of our financial results for the first quarter 2023 compared to the same prior year period. For the three months ended March 31, 2023 compared to March 31, 2022, our consolidated net revenue was $1,582,000 compared to $2,309,000. Consolidated gross profit was 59.5% compared to 61.4%. The consolidated operating loss was $1,188,000 compared to $660,000. Our consolidated net loss was $1,187,000 or $0.06 per basic and diluted share, compared to $659,000 or $0.03 per basic share.
Adjusted EBITDA was a loss of $941,000 compared to $280,000. A table reconciling the adjusted EBITDA to the appropriate GAAP financial measure is included with today's press release. Moving on to the balance sheet. As of March 31, 2023, our cash and cash equivalents were approximately $2.5 million. Deferred revenue was $600,000, working capital was $7.9 million, our shareholders' equity was $10.5 million. I'd like to turn the call back over to Dr. Halden Shane.
Thank you, Nick. I want to thank all of you for joining us today and for your unwavering support as investors and followers of our company. We firmly believe that the work we are currently undertaking and the initiatives reported on this call will deliver favorable financial results for the 2023 year and beyond. Thank you again for your time and your support. Operator, let's open the call for any questions.
Thank you. At this time, we will conduct the question-and-answer session. If you would like to ask a question, please press star, then the number one on your telephone keypad, and you will be placed into queue in the order received. Once again, to ask a question, please press star, then the number one on your telephone keypad. One moment while we compile the Q&A roster. Your first question comes from Todd Felte of Aegis Cap Financial Services. Todd, your line is open.
Thanks for taking my questions. I was first wondering how much in recurring revenue are we getting from the BIT solution, either on a monthly or quarterly basis, and what are the margins on that?
Well, the margins are, I don't know if you want to talk about the margins. They're very high, Todd.
The margins on the reoccurring solution sales is higher than what you typically see on our financial statements, which is around 60% if you translate it. Right now, we're at about 15% of our revenue could be attributed to reoccurring solution sales.
Okay. I know you've signed a lot of contracts recently, so you see that number, going up dramatically or?
Well, I think what we do is when we see these CES systems put into production and use after validation, you know, they're making large financial commitments to buy them. They're gonna be continuing with large financial commitments to use our solution, and that's when we'll see them really go up.
Sure. As a company, are you willing to kind of reaffirm? I know in the past calls, we had said that, you know, the revenue could be lumpy, but really the second half of this year, we are gonna see an uptick and that we thought we would achieve profitability for this year. Are you willing to stay with that forecast that we'll be profitable for the year 2023?
That's where we're working at right now. We feel we will be. It is lumpy, as you know, and, you know, we can't control that part of it. The second half of the year looks extremely good for us, and, we are hoping that we will be profitable soon.
Okay. Thank you again. I appreciate you taking my questions.
Thank you, Todd.
Your next question comes from Alex Stultry of Green Level Capital. Alex, your line is open.
Hi. Thanks for taking my call. You've mentioned, I believe in the past, that growth in the Custom Engineered Systems business over time will drive more predictable solution sales compared to other channels. Could you provide some more color as to why this is the case?
Sure. What it is they tend to buy upfront, the equipment that they need, and then they use solutions more consistently. You know, that's basically the color. Anybody or any company that's investing this type of money upfront for our equipment, is definitely gonna be using it as soon as it's validated, and they have their protocols written going forward for a long period of time. The shift we're seeing is, over the long term, is that it's a good thing for our current model, which is this razor-razor blade model.
Got it. Thank you. yeah, that's it for me. Thanks for taking the question.
Thanks, Alex. Thank you, Alex.
Your next question comes from investor John Nelson. Mr. Nelson, your line is open.
Hi, that's Nelson. I have several questions. The first one was related to a Twitter account was pushing chlorine dioxide from a Swedish company called LifeClean and posturing itself as a competitor to TOMI. They call their product a universal biocide. Are you familiar with it? I've done some extensive reading on it, and I don't think there's any comparison. If you would like to compare it to SteraMist, please go ahead.
Thanks, John. Well, you know, there really is no comparison. I mean, we're like a perfect 10 out of 10 on every including, you know, efficacy and speed and lack of you know, corrosiveness and no residue and being eco-friendly in relationship to having just oxygen and humidity or water in the sun, you know, like humidity as byproducts. chlorine dioxide they've been around forever. It's just, a lot of these companies now with these chemicals, there's, I mean, 450 somewhat EPA registered products. A lot of them are finding themselves in trouble because of the fact that the environment is starting to speak up and say that we want a product that's not gonna be damaging to the environment, not damaging to our equipment, not damaging to labs, et cetera.
I mean , you know, again, Twitter is Twitter, with Elon Musk or without, but, you know, I still don't believe anything I read, you know, unless I, you know, do a lot of research independently. You know, I think
Sure.
Conclusion is absolutely correct.
Okay. Thank you. Any update on the SHIELD study?
Not really. There, it's in the hands of the authors, and they, you know, I think what I say always is the results are phenomenal. When I say that, they push it down the pipe to be finished. I'm trying not to comment on it, but I'm going to meet with them in July and go over something. Hopefully, I'll have by the next quarter have something to say.
Okay. Thank you.
Sure.
Also, I think you were working with Vertical on, and had mentioned in the past, a large seed company, which was, which could be a potential user. Any progress on that?
Yes. We're having good progress on all our food safety, people, in fact, the users and a whole bunch of new people that are doing testing, and they've had some real positive results from prevention of viruses and bacteria in general seeds. As I said on the call, or E.J. said on the call, there's some great work on the seeds cannabis. I think this is a market that we're after, and they can recognize how easy, quick and effective our technology is, especially in a market where, you know, we always need safe and quick food safety verification. We are working towards that.
Okay, thanks. Also, have your staff approached any of the semiconductor companies that will be either with existing plants here in the U.S. or plans to build new operations on potential use of SteraMist in clean rooms or the general plan itself?
Yeah, you know, we've done some research on it. There aren't really that many in the United States. There are some that are gonna be starting in the next year or two. We are looking for an employee that specifically specializes in that industry. It, you know, it's not that big of an industry, you know, in this country, we're hoping that soon it will be.
You know, we're doing our best. You know, we've got a tremendous amount of pipeline opportunities in a multiple of verticals within the company. That's one of them that we plan on approaching heavily very quickly.
Okay. Can you go into a little bit more detail on the revenue recognition item? What was the, a ny particular.
You know, it's hard. I mean, you know, the way that the FCC and I guess accounting recognizes revenue is that it has to ship and be out of your hands before the quarter closes. You know, we do our best, and sometimes the customer says, "No, I wanna wait a couple weeks," or, you know, "I need to wait another month." You know, that's what occurs. That's why I try to, the call earlier from Todd about, you know, the second half of the year is always our strongest.
Probably it's gonna be the same this year. We see this company growing year-over-year. You know, as the amount of employees we have, the percentage of what each of them bring in revenue-wise, it's extremely high 'cause it's not that big of a company yet, but it's growing fast.
Okay. Good. Are you comfortable with your current cash position?
Well, we're comfortable with it, I mean, going out 15 months, but.
Okay.
We're dependent on getting deposits for the CES systems, which should record, you know, more cash in the company going forward.
Excellent. This is just my noodling, but the baby formula industry, of course, had a, you know, significant national problem over the last year. Have you explored any potential use of SteraMist in the baby formula facilities in the U.S.?
You know, that would go into food safety and, you know, into the fact that, you know, it's contaminated or potential contamination risk in relationship t o the manufacturing of it or equipment used. I don't know offhand if any of them have reached out to us, but from my knowledge, they've cleaned the most of that act up very recently.
Okay. Yeah, very good. I look forward to continued progress.
I do too. I thank you for your support, as always.
Thank you.
Your next question comes from Sameer Joshi of H.C. Wainwright. Sameer, your line is open.
Thanks. hey, Doc.
Hey, Sameer.
Thanks for taking my questions.
Sure. How are you?
Hey. Good. Good. I'm having some technical difficulties, maybe some of the questions may be repetitions of whatever has been already asked. One of the curious questions I had was, the PennCare , relationship that you have established, what kind of revenue potential should we expect from that particular relationship?
I think it's really too early to tell.
Okay.
In the relationship.
Okay. Okay. It's, so.
We brought them on and, you know, I mean, all of these new, both manufacturing reps and, you know, partnership agreements are so new that a couple of them have bought already, significant. I did a press release on one and, you know, they're all looking very favorable. To predict, I, you know, just, you know, tr ying to predict what we're doing.
Understood. Got it. Fair. Then a clarification on the on the revenue that would have been recognized, I think the $1.54 million that was not because of timing issue not recognized in the first quarter. Would it have been completely recognized, or is it a part of it would have been recognized in 1Q?
Probably some of it would have been. you know, now that we know when they want it, you know, we didn't push that. You know, it's hard to push these clients to take product because we wanna show revenue. you know.
Right.
We're basically at their mercy to accept it. They, you know, want it. We could have produced it. You know, a lot of that will come in the second quarter and going forward.
Understood. If we say that the potential for what 1 Q would have been, say, potentially the revenue could have been nearly $3 million. If we assume that should we or do you have visibility over the next two, three quarters that revenues will be sequentially higher from that number? How should we think about the cadence of revenues over the next two years?
I think the same way.
I mean, quarters.
We spoke about it i n our last call. I mean, we're still, you know, prepared to beat that number, you know, at least beat that number at the end of this year.
Oh, okay. Got it. Thanks for taking my questions. I will take my other questions offline.
Thank you so much. Thanks, Sameer.
At this time, it appears there are no further questions. I'd like to turn the call back over to Dr. Halden Shane for any closing remarks.
Once again, I just wanna thank everybody for spending part of their afternoon or depending on where they're at, early morning. Thank you for following the company, and I will be talking at the end of the next quarter, next earnings call. Have a great day or evening too. Operator, call's over.
This concludes today's TOMI Environmental Solutions Investor Update. Thank you, everyone for attending.