John Nelson

John Nelson sought updates on TOMI's efforts in the military and defense markets, the CAR T-cell disinfection business, and the expected rollout pace from new service provider partners in healthcare mold remediation. He also questioned plans to penetrate the data center disinfection market, details on increasing awareness for the FDA's broadened hydrogen peroxide use in food, and progress on SteraMist replacing ethylene oxide in medical instrument sterilization.

Answer

E.J. Shane, COO, confirmed service efforts at a key military site in Q3, with positive results expected to lead to a significant deal in 2026, but no updates on CAR T-cell. He expressed optimism about the rapid adoption by new service providers like SteriClean and TAPT, driven by improved training and support, expecting more facilities and franchises to come on board. Dr. Halden Shane, CEO and Chairman, acknowledged the high potential of the data center market but noted current employee limitations, highlighting capital needs to expand the sales team. E.J. Shane explained that awareness for the FDA ruling began by engaging existing food safety customers who were previously restricted. He also confirmed that replacing ethylene oxide in medical instrument sterilization is a high priority, with partnerships in device manufacturing being built to integrate IHP technology.

Inquired about several topics: the potential opportunity from reshoring pharma manufacturing to the U.S., whether customers who deferred capital expenditure projects have returned, the specific use cases for SteraMist if pending FDA approvals are granted, and any new applications being developed for the product.

Answer

The company sees significant opportunities from reshoring manufacturing in pharma and other industries. Some customers who deferred projects are expected to return, as indicated by increased customer deposits and deferred revenue. Regarding FDA approvals, one path is for medical devices (decon chambers) and another is a Food Contact Notification (FCN) for food safety applications like avocados. They are also internally testing new applications, such as extending the shelf life of flowers.

Inquired about the potential impact of tariffs, the adequacy of the company's cash position, details on a planned capital raise, the reason for three returned orders, the status of an FDA ruling for the 1% solution, and any recent modifications to the SteraPak product.

Answer

The company does not anticipate an impact from tariffs at the moment. They plan to address cash needs with a planned capital raise of approximately $3-3.5 million via a convertible note, which they believe will be sufficient. The returned orders were an unusual event due to customer scope changes and a pulled federal grant. The timeline for the FDA ruling is uncertain due to administrative changes. The SteraPak is being marketed as is, with potential software and hardware upgrades being considered for other surface units.

Asked a broad range of questions about the business, including the lag time between hardware and solution sales, marketing strategies for customer education, specific market applications (food suppliers, hurricane recovery, GLP-1 plants), progress on the ethylene oxide replacement market, and details on new products like the SteraMist Transport and the SIS stand-alone system.

Answer

Executives explained that the hardware-to-solution sales lag can be up to a year. They are focusing marketing on the food industry and using SEO/social media. They confirmed engagement in disaster recovery for hurricane-damaged plants and see potential in GLP-1 facilities. The new SIS stand-alone product was driven by customer demand and is expected to be very popular across multiple industries. They also noted that getting large customers to publicly endorse the product remains a challenge.

John Nelson asked for an update on the development of the automotive sun visor project, for both built-in and aftermarket applications.

Answer

CEO Joseph Harary explained that the licensee for the sun visor project has been somewhat distracted by other automotive industry events, such as tariffs and moving factories to North America, and therefore he had no significant new progress to report.

Asked for updates on sun visor development, contacts with Embraer, entry into the mid-market car segment, and whether the 'Holy Grail patents' relate to the new black particle.

Answer

The executive confirmed progress on sun visors, an existing relationship with Embraer, expectations for mid-market cars in 2025, and affirmed that the black particle technology is indeed the 'Holy Grail' he had previously mentioned.