TOMZHIGH SIGNALRISK10-K

TOMZ experienced a sharp contraction across nearly every financial metric, with revenue declining over 27%, cash falling by roughly 87%, and stockholders' equity eroding by roughly 86% year-over-year.

The near-depletion of cash reserves — from $5.3M to $665K — combined with ongoing negative operating cash flow raises serious questions about the company's near-term liquidity and ability to fund operations without additional financing. The simultaneous decline in accounts receivable and revenue suggests weakening demand for SteraMist products and services, not merely timing differences in collections. Investors should closely monitor whether management pursues equity raises, debt restructuring, or asset sales to bridge the growing funding gap, as the current trajectory is unsustainable without intervention.

Comparing 2026-03-31 vs 2025-04-14View on EDGAR →
FINANCIAL ANALYSIS

Revenue declined meaningfully to $5.6M from $7.7M, while capital expenditures were nearly eliminated — dropping from $108K to just $5K — signaling a company in capital preservation mode rather than growth investment. On the balance sheet, cash fell dramatically to $665K, current assets contracted by roughly 35%, and total assets declined by over 27%, while total debt moderated somewhat from $5.0M to $3.1M, offering limited relief. The overall picture is one of accelerating financial stress: shrinking revenue, a near-exhausted cash cushion, and deeply eroded equity of just $589K collectively point to a business at a critical inflection point that demands close scrutiny from investors.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-95.2%
$108K$5K

Capex reduced 95.2% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Cash & Equivalents
Balance Sheet
-87.5%
$5.3M$665K

Cash declined 87.5% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Stockholders Equity
Balance Sheet
-85.6%
$4.1M$589K

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Accounts Receivable
Balance Sheet
-63.4%
$1.9M$689K

Receivables declined — improved collection efficiency or conservative revenue recognition.

Total Debt
Balance Sheet
-37.3%
$5.0M$3.1M

Debt reduced 37.3% — deleveraging strengthens balance sheet and reduces financial risk.

Current Assets
Balance Sheet
-35.5%
$6.5M$4.2M

Current assets declined 35.5% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-27.4%
$9.7M$7.0M

Total assets contracted 27.4% — asset sales, write-downs, or balance sheet optimization underway.

Revenue
P&L
-27.2%
$7.7M$5.6M

Revenue softened 27.2% — monitor whether this is cyclical or structural.

Inventory
Balance Sheet
-18.2%
$3.6M$2.9M

Inventory reduced 18.2% — lean inventory management or demand outpacing supply.

Operating Cash Flow
Cash Flow
+16.9%
-$1.4M-$1.2M

Operating cash flow grew 16.9% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-04-14
ADDED
7262(b)) by the registered public accounting firm that prepared or issued its audit report.
As of March 20, 2026, the registrant had 20,540,539 shares of common stock outstanding.
Cybersecurity 19 2 Properties 20 3 Legal Proceedings 20 4 Mine Safety Disclosures 20 PART II 5 Market for Registrant s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 21 6 Reserved 21 7 Management s Discussion and Analysis of Financial Condition and Results of Operations 21 7A.
("TOMI," "we," "our," or the "Company") is a global provider of disinfection and decontamination solutions, offering environmentally friendly products and services for indoor air and surface treatment.
Our flagship product line, SteraMist uses our patented Binary Ionization Technology ( BIT ) to deliver a low-concentration (7.8%) hydrogen peroxide-based fog or mist that effectively treats all indoor environments and surface areas.
Developed under a grant from the United States Defense Advanced Research Projects Agency ( DARPA ), SteraMist generates ionized Hydrogen Peroxide ( iHP ) through a high-voltage atmospheric cold plasma arc, converting hydrogen peroxide solution into submicron hydroxyl radical particles.
This process achieves a 6-log (99.9999%) or greater kill rate against a broad spectrum of pathogens, leaving only oxygen and humidity as by-products.
Environmental Protection Agency ( EPA ) registration for our BIT solution, along with applicable regulatory approvals in all 50 states, Washington D.C., Canada, and approximately 40 other countries.
We serve four primary market divisions: Life Sciences, Hospital-Healthcare, Food Safety, and Commercial.
Within such industries, our revenue is derived from equipment sales, BIT Solution consumables, corporate decontamination services, and Installation/Operational/Performance Qualification (IQ/OQ/PQ) services.
REMOVED
As of April 8, 2025, the registrant had 20,015,205 shares of common stock outstanding.
Market for Registrant s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 27 6.
Management s Discussion and Analysis of Financial Condition and Results of Operations 27 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 42 9A.
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 51 13.
( TOMI, we, our, or the Company ) is a global leader in bacteria decontamination and infectious disease control, offering environmentally friendly solutions for indoor air and surface disinfection and decontamination.
Our flagship product, SteraMist, uses our patented and registered Binary Ionization Technology ( BIT ) to deliver a low-percentage (7.8%) hydrogen peroxide-based fog or mist to affect all indoor environments and surface areas.
Developed under a grant from the United States Defense Advanced Research Projects Agency ( DARPA ), SteraMist generates ionized Hydrogen Peroxide ( iHP ) using cold plasma science.
BIT transforms a sole active ingredient hydrogen peroxide solution into iHP through a high voltage atmospheric cold plasma arc, producing submicron to 3-micron hydroxyl radical particles that effectively treat surfaces and environments with the same velocity and characteristics of a gas.
Our innovative and novel process ensures eradication of pathogens with a 6-log (99.9999%) and greater kill rate, effectively leaving no harmful by-products lingering in the treated area.
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