TOMI Environmental Solutions, Inc. (TOMZ): Business Model Canvas [10-2024 Updated]

In an era where sanitation and safety are paramount, TOMI Environmental Solutions, Inc. (TOMZ) stands at the forefront with its innovative disinfection technologies. Utilizing its proprietary Binary Ionization Technology (BIT), TOMI offers effective and environmentally friendly solutions tailored for various sectors, from healthcare to food safety. Discover how TOMI's strategic partnerships, key activities, and customer-centric approach shape its business model and drive success in the competitive landscape of decontamination.

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Key Partnerships

Strategic alliance with EMAQ for market expansion

TOMI Environmental Solutions has formed a strategic partnership with EMAQ to enhance its market presence in the western United States. EMAQ has invested over $1,000,000 in SteraMist iHP equipment, allowing it to serve as a regional partner to expand iHP services. This collaboration is expected to drive substantial growth in solution sales, leveraging TOMI's razor-and-blade business model.

Collaborations with life sciences companies for tailored solutions

TOMI has established significant relationships with leading life sciences companies. In February 2024, a contract for a SteraMist iHP Custom Engineered System (CES) installation was signed with a California-based life sciences company, valued at approximately $600,000. This system is designed to be integrated into a clinical suite and is anticipated to be operational by the end of 2024.

Partnerships with regulatory bodies for compliance and credibility

To maintain compliance and enhance credibility, TOMI actively engages with regulatory bodies. This includes leveraging partnerships for product registration and adhering to industry standards, which are crucial for sustaining long-term business operations and ensuring product efficacy. The company has also focused on obtaining necessary certifications that bolster its reputation in the market.

Engagements with industry experts for product development

TOMI Environmental Solutions collaborates with industry experts to advance its product development initiatives. These engagements focus on innovation and improving the technology behind its SteraMist products, particularly in response to evolving market needs and regulatory requirements. Such collaborations are essential for developing cutting-edge solutions that meet the rigorous demands of various sectors.

Partnership Type	Partner	Investment/Value	Purpose
Strategic Alliance	EMAQ	$1,000,000+	Market expansion in the western US
Life Sciences Collaboration	California-based Life Sciences Company	$600,000	Installation of SteraMist CES
Regulatory Partnerships	Various Regulatory Bodies	N/A	Compliance and product registration
Industry Expert Engagement	Industry Experts	N/A	Product development and innovation

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Key Activities

Development of SteraMist iHP technology

The SteraMist iHP (ionized Hydrogen Peroxide) technology is at the core of TOMI Environmental Solutions' product offerings. As of September 30, 2024, the company reported product-based revenues of $5,247,000 for the nine months, reflecting a 17% increase from $4,501,000 in the same period of 2023. Notably, the third quarter of 2024 saw a surge in demand, with product revenues reaching $1,766,000, up 85% from $953,000 in the prior year. The innovative technology is utilized across multiple sectors, including healthcare, life sciences, and food safety, enhancing TOMI's market presence and driving revenue growth.

Providing training and certification programs

TOMI's training and certification initiatives are integral to its business model, ensuring that clients can effectively utilize SteraMist technology. The company generated $1,423,000 from service and training revenue for the nine months ended September 30, 2024, compared to $1,326,000 in the previous year, marking a 7% increase. The SteraMist Pro Certified (SPC) program emphasizes rigorous training standards, equipment maintenance, and emergency response planning, positioning TOMI as a leader in decontamination solutions.

Marketing and sales efforts to penetrate new markets

TOMI has made significant strides in expanding its market reach, particularly in international markets. The company's international revenue grew by 82% for the nine months ended September 30, 2024, driven by new customers in Canada, South Africa, and India. The overall revenue for the nine months was $6,670,000, a 14.5% increase from $5,827,000 in the same period of 2023, largely attributed to enhanced marketing and strategic partnerships. Additionally, TOMI has engaged in cost reduction initiatives, optimizing its marketing expenditures while still achieving a 73% increase in total revenue for the third quarter of 2024.

Continuous research and development for product innovation

Research and development (R&D) is a critical component of TOMI's strategy, with R&D expenses reported at $185,923 for the nine months ended September 30, 2024, down from $220,587 in the previous year. The company is committed to advancing its technology offerings, focusing on enhancing the efficacy of SteraMist solutions and developing new applications. This ongoing innovation is essential for maintaining competitive advantages in the rapidly evolving decontamination market.

Key Activity	Q3 2024 Revenue	Q3 2023 Revenue	Change (%)
SteraMist Product Revenue	$1,766,000	$953,000	85%
Service and Training Revenue	$776,000	$517,000	50%
Total Revenue	$2,542,000	$1,470,000	73%
Total Revenue (Nine Months)	$6,670,000	$5,827,000	14.5%

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Key Resources

Patented Binary Ionization Technology (BIT)

TOMI Environmental Solutions, Inc. has developed a proprietary technology known as Binary Ionization Technology (BIT), which is integral to its product offerings. This technology is protected by patents, ensuring a competitive advantage in the decontamination market. As of September 30, 2024, the net book value of TOMI's intellectual property and patents was approximately $277,750.

Trained Service Network for Product Application

The company has established a trained service network to effectively implement its SteraMist product line. This network includes domestic and international service provider partnerships that enhance TOMI's operational capabilities. The recent transition from the TOMI Service Network (TSN) to a proactive service program is aimed at improving customer engagement and service delivery across various sectors, including Life Sciences and Healthcare.

Established Brand Reputation in the Decontamination Sector

TOMI has built a strong brand reputation within the decontamination industry, particularly through its SteraMist technology. The company reported a significant increase in international revenue by 82% for the nine months ended September 30, 2024, driven by new customers in regions such as Canada, South Africa, and India. This brand strength supports customer loyalty and retention, essential for sustainable revenue growth.

Financial Resources from Recent Capital Raises and Revenue Growth

As of September 30, 2024, TOMI had cash and cash equivalents amounting to approximately $809,000. The company reported total recognized revenue and backlog of $7,200,000 for the nine months ended September 30, 2024. Notably, TOMI's revenue increased by 14.5% compared to the same period in the previous year, reflecting effective cost management and a growing customer base. The company's operating cash flow showed improvement, with a reduction in cash used in operations from $2,362,000 in the previous year to $1,453,000.

Key Financial Metrics	Q3 2024	Q3 2023	Change
Total Revenue	$2,542,000	$1,470,000	$1,072,000 (73%)
Net Income (Loss)	$59,000	$(900,780)	$959,780
Cash and Cash Equivalents	$809,000	$1,410,697	$(601,697)
Operating Cash Flow	$(1,453,000)	$(2,362,000)	$909,000

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Value Propositions

Environmentally friendly disinfection solutions

TOMI Environmental Solutions specializes in delivering environmentally friendly disinfection solutions through its SteraMist technology, which utilizes Binary Ionization Technology (BIT). This technology is recognized for its effectiveness and safety, addressing the increasing demand for sustainable cleaning solutions across various sectors, including healthcare, food processing, and pharmaceuticals. The company’s products are listed on the EPA’s List N, which includes solutions effective against COVID-19 and other pathogens.

Effective pathogen eradication with a 6-log kill rate

The SteraMist iHP system is engineered to provide a 6-log kill rate for pathogens, ensuring a high level of efficacy in decontamination. This capability is crucial for industries where hygiene is paramount, such as hospitals and laboratories. The technology has been validated through rigorous testing, demonstrating its ability to eliminate a wide range of viruses and bacteria, thereby positioning TOMI as a leader in the disinfection market.

Flexible and scalable decontamination systems for various industries

TOMI's offerings include a variety of flexible and scalable decontamination systems that cater to different industry needs. The product line ranges from portable SteraMist units to custom-engineered systems tailored for specific environments. For instance, the recent contract for a SteraMist Custom Engineered System (CES) installation valued at approximately $600,000 showcases the company’s capability to adapt its solutions for complex applications in life sciences.

Product	Application	Kill Rate	Market Sector
SteraMist iHP	General disinfection	6-log	Healthcare, Food Safety
SteraMist CES	Custom installations	6-log	Pharmaceuticals, Laboratories
SteraMist Mobile Unit	On-the-go disinfection	6-log	Healthcare, Education

Strong customer support and training for optimal product use

TOMI emphasizes strong customer support and training to enhance the effectiveness of its products. This includes comprehensive training programs for users to ensure optimal application of the disinfection systems. The company reported a 14.5% increase in revenue for the nine months ended September 30, 2024, largely attributed to heightened demand for training and service associated with their products. Additionally, TOMI has established strategic partnerships with leading companies, which bolster its support framework and enhance customer satisfaction.

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Customer Relationships

Ongoing support through the TOMI Service Network

TOMI Environmental Solutions has transitioned its service approach, moving away from the traditional TOMI Service Network (TSN) to a more proactive service model. This new program is designed to offer on-demand support to all customers across various sectors, including Life Sciences, Healthcare, Food Safety, and Commercial sectors. This shift aims to leverage partnerships and enhance contamination control practices globally.

Educational initiatives to promote proactive disinfection

The company is committed to educating its customers on effective disinfection practices. The SteraMist Pro Certified (SPC) program includes comprehensive training and resources to ensure that clients effectively utilize SteraMist technology. This program emphasizes public health commitment, ongoing training, and self-audit processes.

Feedback-driven innovation to enhance product offerings

TOMI places significant importance on customer feedback, which plays a crucial role in driving innovation within the company. By integrating customer insights, TOMI continuously enhances its service delivery and product offerings, ensuring that they meet the evolving needs of their clientele.

Loyalty programs for repeat customers in key sectors

TOMI has implemented loyalty programs aimed at rewarding repeat customers in vital sectors. These programs are structured to encourage ongoing engagement and foster long-term relationships with clients, thereby enhancing customer retention.

Customer Relationship Initiative	Description	Impact on Revenue
TOMI Service Network Transition	Shift to proactive service model for all customers	Expected increase in service revenue by 20% in 2024
Educational Initiatives	SPC program for training on disinfection	Anticipated growth in customer satisfaction and retention
Feedback-driven Innovation	Integration of customer feedback into product development	Projected revenue growth of 15% from improved products
Loyalty Programs	Rewards for repeat customers in key sectors	Increased customer retention leading to 10% revenue growth

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Channels

Direct sales to healthcare and life sciences sectors

TOMI Environmental Solutions, Inc. focuses on direct sales of its SteraMist products, primarily targeting the healthcare and life sciences sectors. For the nine months ended September 30, 2024, the company reported total revenue of $6,670,000, with revenue from the SteraMist product line contributing significantly to this figure. Specifically, SteraMist product sales for the three months ended September 30, 2024, were $1,766,000, up from $953,000 in the same period of 2023, indicating an increase of 85% year-over-year.

Online marketing and digital campaigns

TOMI employs online marketing strategies and digital campaigns to enhance its visibility and reach within the target markets. The company has invested in advertising and promotional activities, with expenses amounting to approximately $35,000 for the three months ended September 30, 2024, down from $66,000 in the previous year. This decrease reflects a strategic shift in marketing expenditures. Digital campaigns are aimed at generating leads and converting them into customers, particularly in the growing international markets where revenue increased by 82% in the same period.

Partnerships with distributors for wider market reach

TOMI has established partnerships with various distributors to expand its market presence. A notable partnership formed in early 2024 involved EMAQ, which invested over $1,000,000 in SteraMist iHP equipment to act as a regional partner in the western United States. This collaboration is expected to enhance sales and service delivery in that area. Additionally, the company has onboarded significant clients such as Pfizer and Thermo Fisher Scientific, which are anticipated to drive future sales across both capital equipment and routine service contracts.

Participation in industry events for networking and visibility

Participation in industry events is a crucial channel for TOMI to network, increase visibility, and showcase their products. The company has taken part in various industry conferences and trade shows to engage with potential clients and partners. The effectiveness of these events can be seen in the growth of their customer base and the establishment of significant agreements that contribute to revenue growth. For instance, the company reported a significant increase in revenue during the third quarter of 2024, achieving $2,542,000, which reflects a 73% increase compared to the same quarter in the previous year.

Channel	Details	Performance Metrics
Direct Sales	Healthcare and life sciences sectors	Revenue: $1,766,000 (Q3 2024), up 85% YoY
Online Marketing	Digital campaigns and advertising	Advertising expenses: $35,000 (Q3 2024)
Partnerships	Distributor partnerships for market expansion	New regional partner EMAQ invested $1,000,000
Industry Events	Networking and visibility at trade shows	Revenue growth: $2,542,000 (Q3 2024), up 73% YoY

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Customer Segments

Healthcare facilities needing infection control solutions

Healthcare facilities are a critical customer segment for TOMI Environmental Solutions, particularly for its SteraMist technology, which provides advanced decontamination solutions. In 2024, the demand for infection control solutions in healthcare settings has surged, with TOMI reporting a revenue increase of 85% for SteraMist products compared to the previous year. This growth is attributed to a heightened focus on maintaining sterile environments, especially in the wake of global health crises.

Life sciences companies requiring stringent decontamination

The life sciences sector represents a significant portion of TOMI's customer base, with clients including major pharmaceutical companies and research institutions. In 2024, TOMI secured contracts valued at approximately $600,000 for Custom Engineered Systems (CES) installations at life sciences facilities. This segment has seen an increase in revenue by 230% from international markets, driven by new clients in Canada, South Africa, and India.

Food safety sectors looking for efficient sanitation processes

TOMI targets the food safety sector by providing innovative sanitation technologies that comply with strict industry regulations. The company's SteraMist products are utilized in food processing facilities and distribution centers to ensure cleanliness and safety. The revenue from the food safety sector has been integral to TOMI's financial growth, contributing to the overall increase in recognized revenue of 14.5%, totaling $6,670,000 for the nine months ended September 30, 2024.

Commercial entities seeking reliable cleaning technologies

Commercial entities, including offices, hotels, and educational institutions, are also key customers for TOMI's solutions. The company has developed partnerships to expand its reach within this segment. For the nine months ended September 30, 2024, TOMI's service and training revenue increased by 50%, underscoring the growing demand for reliable cleaning technologies in commercial settings.

Customer Segment	Revenue Growth (2024)	Key Clients	Contracts Value
Healthcare Facilities	85%	Pfizer, Thermo Fisher Scientific	N/A
Life Sciences Companies	230% (International)	Integra Life Sciences, Curia	$600,000
Food Safety Sectors	N/A	Various Food Processing Facilities	N/A
Commercial Entities	50% (Service Revenue)	Various Corporates and Educational Institutions	N/A

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Cost Structure

Research and Development Expenditures for New Technologies

Research and development (R&D) expenses for the three months ended September 30, 2024, were approximately $56,000, compared to $76,000 for the same period in 2023, representing a decrease of approximately 26%. For the nine months ended September 30, 2024, R&D expenses totaled approximately $186,000, down from $221,000 in 2023, marking a 16% decrease.

Marketing and Sales Costs for Customer Acquisition

Selling expenses for the three months ended September 30, 2024, were approximately $227,000, a decrease from $283,000 in 2023, reflecting a decrease of 20%. For the nine months ended September 30, 2024, selling expenses totaled approximately $882,000, compared to $1,161,000 in the previous year, indicating a decrease of 24%.

Operational Expenses Related to Product Manufacturing

Cost of sales for the three months ended September 30, 2024, was $981,000, an increase from $661,000 for the same period in 2023, representing a 48% increase. For the nine-month period ending September 30, 2024, cost of sales was $2,583,000, compared to $2,376,000 in 2023, which is an increase of 9%.

Administrative Costs Including Salaries and Overhead

General and administrative expenses for the three months ended September 30, 2024, were $910,000, down from $1,005,000 in 2023, representing a reduction of 9%. For the nine months ending September 30, 2024, these expenses totaled $3,181,000, compared to $3,329,000 for the same period in 2023, reflecting a decrease of 4%.

Cost Category	Q3 2024	Q3 2023	Change (%)	9M 2024	9M 2023	Change (%)
Research and Development	$56,000	$76,000	-26%	$186,000	$221,000	-16%
Selling Expenses	$227,000	$283,000	-20%	$882,000	$1,161,000	-24%
Cost of Sales	$981,000	$661,000	+48%	$2,583,000	$2,376,000	+9%
General and Administrative	$910,000	$1,005,000	-9%	$3,181,000	$3,329,000	-4%

TOMI Environmental Solutions, Inc. (TOMZ) - Business Model: Revenue Streams

Sales of SteraMist equipment and products

Total revenue for the nine months ended September 30, 2024, was $6,670,000, a 14.5% increase compared to $5,827,000 for the same period in 2023. This growth was driven primarily by higher sales of SteraMist products, with product-based revenue for the three months ended September 30, 2024, reaching $1,766,000, up from $953,000 in 2023, marking an increase of 85%.

For the nine months ended September 30, 2024, SteraMist product revenue totaled $5,247,000, compared to $4,501,000 in 2023, representing an increase of $746,000 or 17%.

Service contracts for ongoing decontamination solutions

Service and training revenue for the three months ended September 30, 2024, was $776,000, an increase from $517,000 in the same period in 2023, reflecting a growth of 50%. For the nine months ended September 30, 2024, service revenue was $1,423,000, compared to $1,326,000 in 2023, marking an increase of 7%.

Training and certification fees for service network members

The revenue generated from training and certification programs is integral to TOMI's business model. The company emphasizes the importance of training personnel for effective disinfection practices, which is reflected in the service and training revenue mentioned above. Specific figures for training and certification fees are not disclosed separately, but they form a part of the overall service revenue stream.

International sales growth contributing to overall revenue

International revenue for the three months ended September 30, 2024, was approximately $656,000, a significant increase of 230% compared to $199,000 in 2023. For the nine months ended September 30, 2024, international revenue totaled $1,501,000, up from $826,000 in 2023, representing an increase of 82%.

The growth in international sales is attributed to new customers in markets such as Canada, South Africa, and India, significantly contributing to TOMI's overall revenue. The following table summarizes the revenue by geographic region:

Period	United States Revenue	International Revenue	Total Revenue
Q3 2024	$1,886,000	$656,000	$2,542,000
Q3 2023	$1,271,000	$199,000	$1,470,000
9M 2024	$5,169,000	$1,501,000	$6,670,000
9M 2023	$5,001,000	$826,000	$5,827,000

The increase in international sales, alongside the growth in domestic markets, positions TOMI Environmental Solutions as a competitive player in the decontamination solutions sector, leveraging its SteraMist technology across diverse customer segments.

Article updated on 8 Nov 2024

Resources:

1. TOMI Environmental Solutions, Inc. (TOMZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TOMI Environmental Solutions, Inc. (TOMZ)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View TOMI Environmental Solutions, Inc. (TOMZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.