Good day, everyone. Welcome to the TOMI Environmental Solutions, Inc. first quarter 2026 financial results conference call. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star one on your phone to enter the question queue at any time. We will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, John Nesbett of IMS Investor Relations. Sir, the floor is yours.
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, Dr. Halden Shane, EJ Shane, our Chief Operating Officer, and our Chief Financial Officer, David Vanston. A telephone replay of today's call will be available through May 15th. The details of which are included in the company's press release. A webcast replay will also be available on TOMI's website, steramist.com. 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.
Please refer to our filings with the Securities and Exchange Commission for a discussion of these risk factors. The company undertakes no obligation to update these forward-looking statements after the date of this call. I will now turn the call over to TOMI's Chief Executive Officer and Chairman of the Board, Dr. Halden Shane. Please go ahead.
Thank you, John, and thank you all for joining us today. Q1 2026 marked a healthy start to the year, highlighted by a pivotal strategic development for TOMI. Our first quarter results demonstrated significant momentum across key metrics. Revenue increased by 5% year-over-year and 67% sequentially from Q4 of 2025. Notably, applicator sales in Q1 alone surpassed our total applicator sales for the entire year of 2025, representing a remarkable 139% year-over-year growth. This success underscores the effectiveness of our razor blade consumable model as we expand our installed base. Additionally, BIT solution sales have consistently grown by 21% annually since 2024 and remained above the 2025 levels in Q1 of 2026.
We also achieved a 15% reduction in operating expenses compared to Q1 of 2025 while maintaining our full capacity. The company also generated positive operating cash flow of $296,000, which is a $572,000 improvement over the same period last year. A notable trend this year is strengthening and dynamic nature of our integrated project pipeline, which continues to demonstrate meaningful momentum. This is the pipeline the company has highlighted since November of 2025 and which evolves as we advance or complete contracts. The expansion of this pipeline aligns closely with growth in our backlog, and we are disclosing only opportunities that suppliers have indicated are near signing. These opportunities tend to involve longer sales cycles. While near-term closings are communicated as they firm up, they do not represent our entire potential opportunity.
The trend is reflected in our backlog of orders. At year-end of 2025, TOMI reported $1.6 million in backlog, which grew by $500,000 by the close of Q1 2026 and is currently at $2.2 million. This steady backlog expansion underscores the strength of our automated integrated system and the many service offerings we implemented. Critically, backlog growth continues even as we fulfill existing orders, illustrating demand and execution across sales. At the end of quarter one, TOMI received $440,000 annual purchase orders for recurring decontamination services with a leading global medical technology company. This contract involves quarterly professional iHP decontamination services for critical clean room and laboratory environments, aligning perfectly with our strategy to build a high-margin, repeatable revenue model in addition to increasing the backlog order number.
In Q1, we achieved several other notable milestones. A private East Coast research university purchased and installed a SteraMist Hybrid system for high-level decontamination of reusable medical equipment. We sold a custom-engineered system in the U.K. to an international pharmaceutical manufacturer, which was integrated into Total Clean Air's modular cleanroom platform. We established Total Clean Air as our preferred European partner for SteraMist iHP technology when the U.K. Health and Safety Executive granted regulatory authorization for our BIT solution and SteraMist iHP products. The food safety sector is gaining real traction. We launched an important case study that demonstrated up to 95% reduction in sanitization testing costs for an egg food manufacturer. Our longstanding partner, DisinfectCare, secured a service contract at a major Mexican dairy facility, where rigorous testing highlighted SteraMist iHP's efficacy while preserving product quality.
Further, the end user is looking to expand its use of SteraMist iHP in Mexico to its other facilities. There are other positive food safety tests that the company has received to be discussed at a later date. This is all exciting stuff for us. Regulatory advancements have also played a critical role in our progress. In February, we received official authorization from the Health and Safety Executive for our BIT solution and SteraMist iHP products for use in Great Britain and Northern Ireland. In March, we secured product authorization from the Dutch Regulatory Authority, making our first product approval within an EU member state and facilitating a streamlined recognition pathway across the EU. This past week, we received notification of further approvals in Germany, Belgium, Denmark, and Hungary. We anticipate many other regulatory wins in the near future.
On April 30th, 2026, we executed a non-binding letter of intent to merge with Carbonium Core Incorporated, a U.S.-based producer of nuclear-grade graphite for advanced reactor technologies and AI data center infrastructure. Carbonium Core boasts a vertical integrated production platform and exclusive purification technology developed with Oak Ridge National Laboratory. This merger targets a specialty market currently dominated by foreign supply, coinciding with increasing domestic demand for non-Chinese origin graphite due to new U.S. FEOC regulations and federal support for advanced nuclear energy. To be clear, with this transaction, our country will become the leader in Generation IV nuclear reactors, a class of advanced systems designed to offer significantly improved safety, efficacy, and sustainability compared to current commercial plants.
These reactors are characterized by their ability to operate at a much higher temperature gas-cooled reactor pebble bed module recognized as the world's first operational Generation IV reactor. These systems aim to overcome limitations of current technology by producing more fuel than they consume and ensuring that severe accidents resulting in radioactive release are physically impossible. Under the terms of the LOI, Carbonium Core would become a wholly owned subsidiary of TOMI. Former stockholders would receive TOMI common stock equal to 19.99% of shares outstanding prior to the merger, along with shares of a newly created series of convertible preferred stock, implying an enterprise valuation of $120 million. We aim to finalize definitive agreements by May 30th, 2026, with a 45-day exclusivity period in place. The strategic rationale for this transaction is compelling.
It aims to diversify TOMI's business by merging a domestic platform focused on advanced nuclear-grade graphite, graphene, and lithium materials with our existing SteraMist decontamination business. This integration has the potential to unlock significant long-term value for our shareholders while enhancing and expanding the SteraMist brand. Please note that the LOI is non-binding, and the completion of the transaction is subject to definitive agreement, due diligence, and customary closing conditions, including stockholder approval. I'll now turn the call over to our Chief Financial Officer, David Vanston, for a review of our Q1 financial results.
Thank you, Dr. Shane. Our complete financial statements are in our Form 10-Q filed with the SEC and in today's press release. I will walk you through the key metrics for the three months ended March 31st, 2026, compared to the same period in 2025. Revenue for Q1 2026 was $1.6 million, a 5% increase from $1.5 million in Q2 2025 and a 67% sequential increase over Q4 2025. Product revenue increased $300,000 or 31%, driven by higher equipment and CES related sales. Service revenue decreased by $234,000 or 41%, reflecting the timing of decontamination project completions and service engagements in the period, which management views as temporary.
Gross profit was $832,000 or approximately 50% of revenue, compared to $952,000 or approximately 6% of revenue in Q1 2025. The decrease in profit margins reflects strategic price discounts to drive equipment adoption and an unfavorable product mix shift towards lower margined equipment sales. Management views these factors as temporary as growth in higher recurring margin BIT solution consumables and applicator sales is expected to support margin recovery in future periods. Total operating expenses were $1.48 million, a reduction of $248,000 or 15% compared to $1.7 million in Q1 2025, reflecting lower general and administrative selling professional and consulting costs across the board.
The loss from operations was $626,000, an improvement of $128,000 compared to a loss of $754,000 in Q1 2025. The net loss was $811,000 or $0.04 a share per basic and diluted compared to a net loss of $256,000 or $0.01 per share in Q1 2025. It is important to note that Q1 2025 net loss included a non-recurring Employee Retention Credit of $535,000 and related interest of $83,000. Excluding these one-time items, Q1 2025 adjusted net loss would have been approximately 874%, making Q2 2021 a meaningful year-over-year operating improvement. Cash flows.
Our net cash provided by operating activities was $296,000 for Q1 2026, an improvement of $572,000 from the $276,000 used in Q1 2025, primarily driven by improved working capital management and growth in deferred revenue from customer deposits. Net cash used in investing activities was $5,000. The net cash in financing activities was $98,000, reflecting $192,000 in repayments on the Agile Capital Funding sale of future receipts agreement, partially offset by $94,000 in net ELOC proceeds. We ended the Q1 with cash of $280,000 and working capital of approximately $394,000 compared to a cash of $88,000 and working capital of $1 million at year end 2025.
The $630,000 decline in working capital reflects the net loss incurred during the period. Accounts receivable increased by $73,000 on higher revenue and inventories remained relatively flat. On the liability side, our accounts payable and accrued expenses increased by $993,000, and deferred revenue increased by $177,000, reflecting our deposit policy on customer orders. Our accumulated deficit as of March 31st, 2026 is $58.9 million. During Q1, we raised $149,000 in gross proceeds through the issuance of 336,147 shares of common stock under our $20 million equity line of credit. I encourage investors to review our Form 10-Q in full, including the risk factors and notes financial statements.
I will now turn the call over to our Chief Operating Officer, EJ Shane, for an update on what we expect in the next upcoming months and the rest of the year.
Thank you, David, good afternoon, everyone. As Dr. Shane referenced, applicator sales increased at 139% year-over-year. This is a strong signal that customers are expanding their deployment of our patented cold plasma technology. The applicator is a critical component that enables our iHP to be used more broadly. This growth is a game changer. It shows customers are increasing their utilization of our tech. Customers who already own mobile fogging systems are expanding their use of iHP across additional areas within their facilities by acquiring more applicators, permanent or semi-permanent, driving higher sales of BIT solution, our consumable product. The SteraMist Integrated System platform or SteraMist Hybrid and our original Custom Engineered Systems or CES, are essential to our integration pipeline. Collectively, it is these offerings that are expected to significantly boost BIT solution revenues.
Our current immediate integration sales and pipeline is currently at $4 million across 14 customers and seven separate orders received with the remaining projects awaiting capital approvals. This is an update that reflects changes since our last call. Some customers have been removed due to completed sales in quarter one, while three new customers have been added and two additional contracts have been secured. The seven orders mentioned are all in various stages of manufacturing and delivery, which will impact revenue timelines. The full company sales pipeline opportunities for all our offerings from mobile off-the-shelf capital equipment, automated integrated custom designs, and iHP Corporate Service deployments is projected to be between $22 million and $33 million. This is the complete opportunity list. It includes interested parties who have received quotes or planned implementation and/or installations of iHP technology across all our industries.
Dates are not yet set, these parties have expressed strong interest in SteraMist iHP. Of this list, $9 million is categorized as active, approved, or anticipated for purchase this year based on customer requests or the progression of the sales process. $4 million is allocated to automated integration orders. An additional $5 million is attributed to mobile off-the-shelf capital equipment, support service contracts, and iHP corporate deployment. Based on the latest reports and trends that I just referenced, TOMI generated approximately $1.7 million in revenue in quarter one, currently holds a backlog of $2.2 million. This includes only some of our integration automation pipeline, which stands at a total of $4 million, with a potential $5 million in mobile equipment sales. Conservatively, we anticipate $2 million in consumables and other smaller revenue streams.
Taken together, this yields a credible path for TOMI to achieve its projected 2026 revenue target. Our strong base of high-quality large customer base has been the key driver for these trends. These customers have helped in this potential growth through referrals, relocating projects, and expanding SteraMist iHP adoption at their new facilities, as well as expanding usage after initial purchases. A concrete example is Merck currently has approximately $1.2 million in open estimates across five different locations. While Merck is not included in the near-term numbers I cited earlier due to their longer decision cycles, they remain an active partner and are captured in the full opportunity pipeline. Additionally, one of our first large pharmaceutical clients is approaching a decision on their CES proposal, which could represent the largest such installation to date and an uplift to future revenues for TOMI.
On January 6th, we announced that a private East Coast research university purchased and installed a SteraMist Hybrid system. This past week, we just received notification that we won a second award with them. For my last example, a third site in Berlin, Germany is set to begin trials in June for an eye health customer that we onboarded in quarter one of last year. This customer is also utilizing an open monthly BIT solution order, aligning perfectly with our business model. Furthermore, none of this reflects opportunities tied to additional regulatory requirements. Our efforts regarding the Food Contact Notification with the U.S. Food and Drug Administration, NSF Standards Department for Biological Safety Cabinets, the FDA 510(k) for medical devices, and further European Union registrations, all of which hold substantial potential based on the current market demands.
On May 1st, we officially opened a task group with NSF, cleaning and sterilizing the Biological Safety Cabinet sector. We wanna be added to their informational Annex G so that our partners are deploying SteraMist iHP to outperform legacy decontamination methods, including sporicides, formaldehyde, and VHP. Ultimately, our goal is to enable these service providers worldwide to compete effectively by incorporating iHP into their offerings for BSCs, which allows them to complete more treatments in a single day compared to the older technologies referenced. The food safety sector remains promising, but progress will depend on ongoing regulatory developments. For example, Nestlé's planned expansion is contingent on obtaining additional international registrations beyond the European Union and on updating EU registration requirements to include an alternate class. We are engaging with three large customers who have expressed strong interest in our SCM for baby formula to deploy iHP technology.
In parallel, we are conducting internal testing on dried ingredients for a current customer who already owns our handheld devices and exploring a scaled deployment. This testing phase aims to validate performance and readiness for a broader rollout. Last month, we attended INTERPHEX in New York City, one of the premier trade shows in the pharmaceutical biotechnology and medical device industries. At the show, we finalized the sale with a prominent American healthcare company renowned for its innovative medications and pre-mixed ready-to-use formulations. In summary, we maintain that with a broader and more diverse range of SteraMist delivery systems, this growing integration pipeline, expanded support services designed to accelerate iHP qualification, and ongoing referrals and expansions from our existing customer base, that TOMI is well-positioned to shift revenue mix positively and enhance profitability.
I thank you all for your time and attention, and I hope this provides a clear sense of the progress and initiatives that we are pursuing. I will now turn the call back to our CEO, Dr. Halden Shane.
Thank you, EJ. As a special note, I wanna talk about the United States of America is very hungry for rare earth minerals and materials that are mined and/or synthetically produced in America. The synthetic production of nuclear-grade graphite and the convergence of these technologies, whether it be nuclear-grade graphite, graphene, or lithium, present a transformative opportunity to address critical global challenges. TOMI's future is in an advancement of autonomous systems, AI-powered robotics. Quote, "Our SteraBot, registered of course, and specialized disinfection drone technology manufactured with lightweight, strong graphene shells and plenty of battery power, will enable proactive solutions for ecological stability, logistics efficacy, and public safety." Of a special concern of mine is the honeybee industry. It is in dire straits.
The association is seeing a lot of viral losses now, not just from Deformed Wing Virus or DWV, but real losses in bees because of what the industry refers to as deadout, where the comb gets a virus and kills all the bees. Since 2007, there has been an 80% decline in bee populations. It could be devastating because it is not just concerning the DWV virus and its variants, but additional viruses such as Chronic Bee Paralysis Virus and Israeli Acute Paralysis Virus. The iHP Micromist can reach the entirety of the comb, including the nooks and crannies, without leaving any damage to the wax. Currently, the only available product on the market to alleviate these viruses is very expensive gamma irradiation process. The combs are very expensive, thus beekeepers do not want to dispose of the comb nor use gamma irradiation.
An iHP disinfecting drone would certainly help save the pollinators of the world and ultimately the world. This is what we do, innovating for a safer world. Thank you all, and thank my small team for all the great work that they do. Looking ahead, TOMI enters Q2 of 2026 with strong commercial momentum, an expanding recurring revenue base, and a transformative strategic transaction underway. Our focus strategy for the balance of the second quarter is to advance the Carbonium Core transaction towards definitive agreement and closing, drive recurring revenue growth through increased BIT solution sales, open order policies, and expanded iHP Corporate service contracts, and strengthen balance sheet flexibility through our ELOC and additional financing initiatives. With that, operator, please open the call to any questions.
Certainly. Everyone at this time we'll be conducting a question-and-answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your headset if you're listening on speakerphone to provide optimum sound quality. And once again, if you have any questions or comments, please press star one on your phone. Your first question's coming from Amit Dayal from H.C. Wainwright. Your line is live.
Thank you. Good afternoon, everyone, and great to see all the developments underway at the company. My first question was on the gross margin side. You know, it was a little bit softer, I guess, because of some discounts on offerings. Just wanted to see, you know, how this will bounce back, and would you potentially need to continue providing those discounts, at least for the hardware side of things, you know, to get initial orders with customers going?
No, I know they will bounce back, and we don't plan on providing these types of discounts again.
Okay. Understood. You know, the pipeline looks pretty robust, at least $4 million in sort of, you know, certain orders it looks like. Sequentially, do you think, we should expect revenues to grow from here through 2026 or, should we expect some lumpiness in how revenues are recognized?
No, most definitely we should see growth through 2026 and into 2027 and beyond.
Okay. Any traction from these, you know, recent news flow around hantavirus, et cetera? Has there been any follow-up with companies or customers from those developments for you guys?
Not at the moment, but, you know, as you know, I mean, this hantavirus is it's not close to us as where the ship is located. The interesting part about this is that they've left a lot of people off the ship, and there's usually, like, an eight-week period before you test positive for this. We're prepared and ready to help and assist in any way. At the moment, we haven't heard from anyone and, you know, we can't get our equipment into the area quick enough to help the ship because first of all, I mean, all the passengers, most of them have been disembarked.
Okay. Understood. Just last one from me on this transaction with Carbonium. You know, how is the diligence going so far? You know, do we have the expertise to sort of, you know, properly investigate the technology these folks are offering? Just a follow-up on that one is, you know, will this be sort of a development stage, you know, entity you are, you know, acquiring, and how much more investments do you think it would need if you were to close the deal to progress that company to commercialization?
Well, it's a lot of questions. Yes, it's in its early stages. We are forming a committee in the early part of next week to help with the due diligence. Again, you know, we're aiming towards getting a definitive agreement and doing our due diligence. We're aware of the technology and its ability, you know, with Oak Ridge and some I don't wanna get too ahead of, of Carbonium in releasing certain things, but we're pretty secure that this will go forward. As far as investments, that's something that needs to be determined. We haven't quite yet come out with any numbers like that, and you can understand this is just the very early stages of this potential merger.
Okay, Doc, that's all I have. Thank you so much.
Thank you.
Thank you. Your next question's coming from Todd Feltz from StoneX Wealth Management. Your line is live.
Hey, Doc and EJ. Congratulations on a good quarter and on the Carbonium merger. I know I'm excited to see how that progresses. I did have two questions on it. The first is, after the merger is approved and closed, I know there's a 19.9% shares of common stock that are going to them in addition to the convertible preferred. If all that convertible preferred was converted to common at $1, what would be the total shares outstanding?
It's a good question. Probably somewhere in the neighborhood of $32 million, maybe $31 million. We haven't really done the per exact pro forma on that yet, but I would have to say that would be the amount.
Okay. Second of all, I listened to a television interview that you had done with Sindor, the head of Carbonium, and he was projecting-.
Yeah
revenues in 2028 of $1.4 billion-$1.5 billion. Is that correct?
Right.
Did I hear that wrong?
No. You heard that correct. This is a huge industry, and they have the ability to capture it from the synthetic, you know, nuclear graphite end. Again, I don't wanna get ahead of the curve with him, but, you know, what he said is $1.4 billion, $1.5 billion.
Wow. Okay. Finally, outside of getting shareholder approval, are there any other major obstacles, assuming that your committee checks out on all the due diligence, are there any other major obstacles on getting this to the closing line?
There shouldn't be. Again, it's a deal. It's early, and you never know what obstacles get thrown at you. We're hoping there aren't, and we're able to complete this in a relatively timely manner.
Okay. Thanks for the questions. I appreciate it.
Thank you, Todd. Yeah.
Really excited about it. Thank you.
Thank you so much. Uh-huh.
Thank you. Once again, everyone, if you have any questions or comments, please press star then one on your phone. Please hold while we poll for questions. Your next question is coming from John Nelson. Your line is live.
Hi. Congrats on the quarter and progress being made on the TOMI business and also the potential from the Carbonium merger for the combined company.
Thank you, John.
First, first question is, I saw the slideshow from your 8-K on Carbonium Core , they're projecting profitability, I believe, next year according to the slides. Am I correct on that?
That's what I understand.
Yeah, which would be phenomenal, for them to, you know, get out of the gate this fast and still and be profitable almost immediately. Anyway, thanks for confirming that. The other thing was, in the slides was an independent valuation. Do you know who did that independent evaluation of the Carbonium Core?
It was done by a professional evaluation service. I'd rather not publicly say until they approve it.
Okay.
You know, it was a very large 47 page evaluation.
Okay
It covered everything that we would want to see in it.
Do you think?
Okay. Yeah.
Yeah. Do you think that they can, after, if you complete the merger, do you think they can release that, or you can release that?
I would think so.
To your shareholders?
Yeah. Yeah, I would think we would be able to once this happens. Yeah.
Excellent. Thank you. The other questions relate to the TOMI business.
Mm-hmm. Sure.
On the honeybee industry, you talked extensively about the concerns and how SteraMist can remedy significant amount of problems that the bee industry is facing. How do you plan to go after that market?
Well, currently, I, you know, I think I've mentioned this on prior calls, you know, I have been trying to contact the association. I ended up joining the association, and I follow everything that goes on in it. Recently, our marketing department reached out to an administrator, and they've would like to do a study. Now I'm really excited that we got their attention. Hopefully they'll be able to do this study fairly quickly. you know, I know the industry is in dire straits to eliminate, you know, the effects of the all these viruses, which are, you know, going ahead and causing death to the bees, which, you know, I mean, I don't think we want our kids to grow up in a world that doesn't have pollinators.
Yeah. We definitely need it. I was curious as to how quickly a study might be able to be accomplished. I would think that the beehive.
The comb. Yeah
People would be.
Yeah
Extremely happy to get something that would help preserve their hives.
I mean, I think, you know, the real answer, you know, that they've been going with, you know, in the past is very expensive. I think gamma irradiation, you know, it gives you a new hive, I guess. Most beekeepers don't have that type of money, where our solution would be fairly inexpensive for them to eliminate the mites, the viruses in the, in the comb and to go ahead and protect it going forward. That would be great to have this technology which was innovative from the beginning to be able to protect the honeybee population around the world.
Definitely. Do you have any specific goals as to timing to reach either profitability or positive cash flow over the next-
Well, I think-
quarters or a year?
Yeah. I think within this year we'll be profitable.
Okay, good. And then you mentioned in a previous press release the going after the robotaxi market.
Right.
Do you see that as being addressed by a just the SteraMist handheld units, or do you think that there might be a possibility of actually kind of installing a fixed unit within the cab that could dispense SteraMist, you know, on a regular basis after every ride, for example?
Yeah. Yeah, I think, you know, I think it's too early. What our plan is initially is to mold our backpack, using existing humanoid type robotics. We know we can handle the software adaptation of it.
Yep
go ahead and put our applicator in the left hand, replace the hand and put the applicator in there, or trigger the hand to push the applicator and have the right hand to move objects or to move, you know, doors or open things and things like that. I think that's going to be the fastest to market. There are a lot of companies, you know, not just Tesla and not just Waymo, but here are five or six companies worldwide that are starting to put out robotaxis. As the world evolves, this autonomous vehicle seems like something that's going to be around forever. They do have to clean them, and our technology would be the fastest and quickest way to get that done. As far as an installation, I don't know if the cost is going to be practical for them.
You know, they would need some time between each ride to disinfect or decontaminate the space. I don't know if their model is set up to wait because, you know, I'm in West Hollywood, L.A. area, and I use Waymo a lot, and they're always, you know, running two or three minutes late because they're dropping someone off. It's possible that they could. Maybe if we could get the time down to, let's say, three minutes or five minutes, that they could sterilize them between the routes. Anything's possible today.
Okay. I'm with regards to use of SteraMist in enclosed spaces, it would seem like SteraMist would be perfect for decontamination of airlines and cruise ships and even military vessels, because of the risk of contamination infection. Is it just that that market takes What kind of explanation do you have for the timelines of penetrating those kinds of enormous markets?
I think, you know, we'd have to be a much bigger company and to get grant writers to write grants for those markets, especially now they're building ships, you know, under the current administration. It would be an ideal time to start implementing the technology or putting it into ships. I'm not sure what the stress test would be to see what stays in place, you know, in rough waters, you know, versus smooth waters and things like that. I mean, it's all possible and, you know, I foresee in the future this happening. Same way with aircraft. What I'm really more excited about is unmanned aircraft. As we all know and we see in the military budget, there's $70 billion being put aside for drones.
When the technology started, when I bought it from the defense contractor and the initial DARPA project, it was for the use of an unmanned planes that were returned to earth or returned to ground or returned to ship. That's what it was used for. With the drone market blowing up like it has all over the world, this is the product to be used for the disinfection decontamination of unmanned aircraft around the world.
Are you working with any particular companies, even if you can't name them at this time, regarding?
Not at this time.
The use of SteraMist?
I'm not at this time that I'm aware of. I don't know if we can say EJ, do you have a more unclassified answer to that?
Not at this time, Dr. Shane. No, I don't. Sorry, John.
Okay. Thanks.
Okay. All right.
I'll keep you updated.
Thank you. Appreciate it.
Of course.
Let's see. Is there anything else that has changed as far as the applicators or the equipment used in SteraMist or any new ways to use SteraMist either in the commercial or retail type settings?
I'll let EJ answer it. I just tried it on my dog, and he stopped barking, so that was positive. EJ?
No, there's not been any changes to the applicators itself. We just changed the way in terms of how we sold it with the integration projects and the standalone system. There's multiple different versions of the applicators that we can now offer regardless of the industry you're referring to. That's been helpful. Yeah.
Okay. That's all my questions.
You know I was kidding, John.
Yes.
Yes.
That was a good one. Thank you.
I don't wanna get a letter from PETA. Thank you, John.
Thank you.
Thank you. We've reached our allotted time for Q&A. I'll now hand the conference back to management for closing remarks.
I just wanna thank everybody for joining and for continuing the voyage with us and in this amazing product and this amazing world. Have a great day wherever you might be. Thank you.
Thank you. Everyone, this concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.