Tomi Environmental announces cost reduction efforts to sustain LT growth

TOMI Environmental Solutions announced comprehensive cost reduction initiatives to align the company’s cost structure with targeted profitability objectives. The company’s operational cash savings initiatives include: Executives will reduce their compensation by 30% of their current cash compensation for the remainder of 2024, thereby reducing the company’s cash requirements for salaries and ensuring alignment of interests with shareholders. Termination of select external consulting agreements, with remaining consultants agreeing to reduce their consultant fees. This initiative, along with reductions in other costs, fosters a leaner and more efficient operational model. These cost-reduction measures underscore TOMI’s commitment to enhancing financial performance while maintaining investments in critical areas such as product development and sales team expansion. The company anticipates that these initiatives will result in a 30% or approximately $500,000 reduction in cash used in operations by the end of 2024. This proactive action reinforces TOMI’s dedication to delivering long-term value to shareholders and achieving profitability, while sustaining innovation and growth momentum in its core business segments. The Company believes it is nearing the close of another CES contract with a prominent cell and gene therapy facility in the United States. The customer is a current user of TOMI mobile equipment, and is currently in phase two of a bid scheduled for a next month close. This contract includes a SteraMist CES, which has already been allocated in the budget for approximately $450,000. The project is currently scheduled for completion by the end of 2024.