TOMI Environmental Solutions, Inc. (TOMZ): Business Model Canvas [Dec-2025 Updated]

As an analyst who's seen countless pivots over the last two decades, I can tell you TOMI Environmental Solutions, Inc. is at a critical juncture, trying to trade lumpy capital equipment sales for the stability of recurring revenue. Honestly, looking at the numbers through Q3 2025, the strategy is clear: they banked $\$$4.619 million in revenue for the first nine months, but the real story is the 200% year-to-date jump in their consumable BIT Solution sales, even as the company posted a $\$(321,000)$ operating loss in Q3. You need to see how their key partnerships and patented Binary Ionization Technology (BIT™) are being deployed across Life Sciences and Food & Agriculture to see if this shift from selling SteraMist units to selling the solution will finally stick. Dive into the full canvas below to see the precise structure of this transition.

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

You're looking at how TOMI Environmental Solutions, Inc. builds its value by relying on external entities to scale its specialized disinfection technology. This part of the canvas shows the network that gets the ionized Hydrogen Peroxide (iHP) technology into critical environments.

Strategic Life Sciences Partnerships for custom system integration.

TOMI Environmental Solutions, Inc. reports significant momentum in its custom integration pipeline, which is currently valued at approximately $3 million as of November 26, 2025. This pipeline involves ten active projects across the SteraMist Integrated System (SIS) and Custom Engineered System (CES) platforms, primarily serving the life sciences sector where turnkey solutions command premium value. Key to this is the collaboration with major enclosure manufacturers who integrate TOMI Environmental Solutions, Inc.'s iHP technology directly into their hardware.

These strategic manufacturer partnerships include:

• ESCO Micro Pte. Ltd.
• Steelco S.p.A.
• Pharma Biotech System Components (PBSC)
• Nuaire, Inc.
• Getinge AB

This approach positions TOMI Environmental Solutions, Inc. as the essential bridge between its core technology and practical application within regulated environments.

Global distribution channels and regional partners (e.g., PBSC Biotech).

The OEM partnership with Pharma Biotech System Components LLC/Pharma Biotech System Components Ltd (PBSC) is a prime example of leveraging distribution expertise. This agreement has TOMI Environmental Solutions, Inc. offering pass-through hatches and chambers integrated with iHP technology, designed for optimized decontamination cycles in high-containment settings. Beyond PBSC, TOMI Environmental Solutions, Inc. maintains relationships with six other regional partners across markets such as Malaysia, India, and Italy. International revenue for the nine months ended September 30, 2025, reached $1,325,000.

Here's a quick look at the geographic and project scale related to these channels as of late 2025:

Defense Advanced Research Projects Agency (DARPA) for original technology.

The foundational Binary Ionization Technology (BIT) platform used by TOMI Environmental Solutions, Inc. was originally invented under a defense grant. This invention was made in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. The technology utilizes a low percentage hydrogen peroxide to create the ionized Hydrogen Peroxide (iHP™) fog.

Independent sales representatives expanding international reach.

The company continues to build momentum by strengthening its distribution channels and utilizing independent representatives to expand the global footprint of the SteraMist iHP brand. This strategy complements the direct OEM and regional partner sales efforts. The COO noted active marketing and bidding on projects utilizing the SteraMist Integrated System (SIS) products through these expanded channels.

Finance: draft 13-week cash view by Friday.

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

The Key Activities for TOMI Environmental Solutions, Inc. (TOMZ) center on the specialized production, validation, and deployment of their disinfection technology across regulated and commercial sectors.

Manufacturing and assembly of SteraMist iHP equipment is a core function, supported by the company's product revenue stream. For the nine months ended September 30, 2025, SteraMist Product revenue reached $3,255,000. This activity is supported by the overall company gross profit margin which remained healthy at 61% for the three months ended September 30, 2025. The product portfolio includes The SteraPak, The Surface Unit, The Transport, The NV+, The Environment System, and the SteraMist Integrated System.

Activities related to Research and patent defense for Binary Ionization Technology (BIT) are foundational, as BIT is described as patented technology invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. The recurring revenue stream from this technology is significant, with BIT Solution sales contributing to the Q3 2025 revenue increase.

The execution of Custom-Engineered System (CES) projects shows clear momentum in late 2025. TOMI Environmental Solutions announced progress in its custom integration pipeline, currently valued at approximately $3 million, as of November 26, 2025. This pipeline includes ten active projects across the SteraMist Integrated System (SIS) and CES platforms. A specific example of this activity was a contract secured in March 2025 for a CES installation valued at approximately $450,000. The total estimated potential demand for CES, Hybrid Solutions, and SteraMist (SIS) was cited at approximately $15 million, with $7 million designated as high priority, as of the end of October 2025.

Regulatory compliance and securing new market approvals saw a major milestone with the FDA action in the third quarter. On September 18, 2025, TOMI Environmental Solutions announced that the U.S. Food and Drug Administration (FDA) broadened the permitted use of hydrogen peroxide as a secondary direct food additive, outlined in the final rule published on September 3, 2025 (90 FR 42535), which amends 21 CFR §173.356. This directly expands potential application for SteraMist iHP in the food industry. The company's Service and Training revenue for the nine months ended September 30, 2025, totaled $1,364,000, which supports these compliance and application efforts.

Training and certification for SteraMist system application is managed through specific programs to build a scalable network. The SteraMist Pro Certified program continues to be well received, supporting the Company's efforts to build a robust network of certified partners. The company's product use sites span a broad spectrum, including:

• Hospitals and medical facilities.
• Biosafety labs and pharmaceutical facilities.
• Commercial and office buildings.
• Meat and produce processing facilities.

The company's sales order backlog grew to $0.9 million at the end of Q3 2025 and further expanded to $1.3 million as of October 31, 2025, with approximately $3 million in pending contracts expected to close before year-end 2025.

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

You're looking at the core assets that make TOMI Environmental Solutions, Inc. tick. These aren't just line items; they are the proprietary foundation of the business.

Patented Binary Ionization Technology (BIT™) and iHP™ Cold Plasma Science

The fundamental resource is the Binary Ionization Technology (BIT™) platform, which uses patented ionized Hydrogen Peroxide (iHP™) technology in all SteraMist systems for superior disinfection. This technology traces its roots back to a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. The BIT™ solution uses a low percentage hydrogen peroxide as its only active ingredient. To be fair, this core science is recognized in the market; TOMI Environmental Solutions was named Disinfection and Decontamination Products Company of the Year 2025 by MedTech Outlook. The recurring revenue stream tied to this technology shows traction, with BIT Solution sales increasing 159% year-over-year in January 2025 compared to January 2024. The company's gross profit margin remained healthy at 61% as a percentage of sales for the three months ended September 30, 2025.

SteraMist Product Line (Surface Unit, Total Disinfection Cart, SteraPak)

The commercial manifestation of the BIT™ platform is the SteraMist brand product line. This line services a broad spectrum of commercial structures, including hospitals, bio-safety labs, and pharmaceutical manufacturing facilities. The company announced a $3 Million custom integration pipeline with strategic life sciences partnerships as of November 26, 2025. This pipeline suggests a strong near-term demand for customized capital equipment deployment. Anyway, the product portfolio is quite specific:

For the nine months ended September 30, 2025, SteraMist solution sales increased 21% year-over-year. The company also has the capability to service large-scale needs, as evidenced by the iHP Corporate Service Decontamination offering for full room, equipment, and facility disinfection.

EPA-Registered Hospital-Healthcare Disinfectant Status in All 50 US States

Regulatory clearance is a massive resource in this sector. The Binary Ionization Technology (BIT) is an EPA registered combination solution and application technology for use as a hospital-healthcare disinfectant and general use disinfectant. The specific registration number is EPA registration # 90150-2. Crucially, this registration covers all 50 U.S. States, plus Canada and International jurisdictions. Furthermore, the company secured a significant regulatory advantage in the food sector when the FDA expanded the permitted use of hydrogen peroxide as a secondary direct food additive, effective September 3, 2025, which aligns perfectly with SteraMist's formulation.

Specialized Engineering and Technical Personnel for Custom Integration

The ability to deploy complex systems requires specialized human capital. This resource is evidenced by the ongoing development of custom solutions, such as the $3 Million custom integration pipeline announced in late November 2025. The company's structure includes key roles like the Chief Operating Officer, Director of Product Compliance and Manufacturing, Director of Sales, and Chief Revenue Officer, who were noted as leading the company's presence at industry events. The company also maintains membership in good standing with several key industry associations, showing a resource pool dedicated to protocol development:

• The American Biological Safety Association
• Association for Professionals in Infection Control and Epidemiology
• Society for Healthcare Epidemiology of America
• The Restoration Industry Association

Finance: draft 13-week cash view by Friday.

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

You're looking at the core differentiators for TOMI Environmental Solutions, Inc. as of late 2025. These aren't just features; they are validated performance metrics that underpin their pricing power.

Superior, non-corrosive disinfection using ionized Hydrogen Peroxide (iHP™).

The technology platform, Binary Ionization Technology® (BIT™), uses a low percentage of hydrogen peroxide as its only active ingredient. This core chemistry supports the value proposition of material compatibility.

Rapid, residue-free decontamination with environmentally friendly by-products.

The environmental benefit is inherent to the iHP process, which breaks down into water and oxygen. While specific residue-free timeframes aren't quantified here, the market recognizes this benefit, evidenced by the company's 61% gross profit margin reported in Q3 2025.

Validated solutions for highly regulated environments (e.g., FDA-compliant food safety).

Regulatory milestones directly translate to market access and premium pricing. On September 18, 2025, the FDA broadened the permitted use of Hydrogen Peroxide, which is expected to positively impact TOMI Environmental Solutions, Inc.'s positioning in the food safety market by allowing iHP technology use directly on food contact surfaces and food products.

Custom-Engineered Systems (CES) for facility-specific integration.

This capability is translating into tangible pipeline value. As of November 26, 2025, TOMI Environmental Solutions, Inc. announced a Custom Integration Pipeline valued at approximately $3 million, involving ten active projects across its SteraMist Integrated System (SIS) and Custom Engineered System (CES) platforms.

Ability to pass challenging industry benchmarks like Geobacillus stearothermophilus spores.

The technology's efficacy against hard-to-kill biological indicators is a key validation point for high-stakes environments. SteraMist iHP technology demonstrated successful performance against Geobacillus stearothermophilus spores, which is a challenging industry benchmark for manual disinfection.

Here's a quick look at how the business segments and market reach support these value propositions based on Q3 2025 data:

The focus on regulated sectors drives demand for these validated capabilities, which is reflected in the company's operational metrics:

• Gross profit margin remained at 61% for the three months ended September 30, 2025.
• International revenue represented nearly 36% of Q3 2025 revenue.
• The company was named 'Disinfection and Decontamination Products Company of the Year 2025.'
• The technology was invented under a defense grant associated with DARPA.

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

You're looking at how TOMI Environmental Solutions, Inc. manages its customer interactions, which is heavily weighted toward high-value, specialized B2B relationships, especially in regulated sectors. This isn't a simple transaction business; it's consultative selling built around complex, integrated systems.

Dedicated, high-touch consultative sales for large integrated systems.

The focus here is clearly on large, custom deployments, which require deep technical engagement from the start. As of late 2025, TOMI Environmental Solutions is actively pushing its SteraMist Integrated System (SIS) and Custom Engineered System (CES) platforms through this high-touch approach. The company reported a custom integration pipeline valued at approximately $3 million in November 2025. This pipeline represents ten active projects primarily within the life sciences sector, where contamination control is paramount. To give you a sense of the deal flow, management previously outlined plans to close five CES and hybrid deals in 2025, estimated at $1.4 million, and had secured its first CES deal for 2025 valued at $3.7 million across all CES and hybrid projects. These figures show the high-ticket nature of these consultative sales.

Repeat business and expansion with key customers.

The commitment to existing customers drives significant value, especially through the razor/razor-blade model where consumables and services follow the initial system sale. While the specific eye health leader contract value of $385,000 isn't confirmed for this period, the strength of the recurring revenue stream is evident. For the nine months ended September 30, 2025, the Service and Training revenue segment brought in $1,364,000. Furthermore, year-to-date solution revenue (for the same nine-month period) was $760,000, marking a 21% increase year-on-year. This growth in solution sales, which often includes consumables, is a direct indicator of repeat business and expansion within the installed base. Also, international business is accelerating, now accounting for 36% of sales, up from 20% a quarter prior.

TOMI Environmental Solutions, Inc. Customer Relationship Metrics (Nine Months Ended September 30, 2025)

Technical support and ongoing service contracts for installed base.

The service component is critical, as it underpins the recurring revenue model. The preliminary data from January 2025 showed that iHP Corporate Service revenue-which is the service delivery arm-maintained steady growth, with an 89% increase in completed services compared to January 2024. This suggests that once a system is installed, the technical support and service contracts are actively utilized and growing. The company also leverages strategic manufacturer partnerships with firms like ESCO Micro Pte. Ltd., Steelco S.p.A., and Getinge AB to ensure seamless integration and support for their SIS platform.

Investor relations engagement via conferences.

Managing investor perception is a key relationship activity, especially for a growth-focused, pre-profitability company. TOMI Environmental Solutions, Inc. actively engages the investment community through scheduled presentations. For instance, management, including CEO Dr. Halden Shane and CFO David Vanston, was set to present virtually at the Sidoti Year End Investor Conference on December 11, 2025, and be available for one-on-one meetings during the December 10-11 window. The company also held its Third Quarter 2025 Financial Results Conference Call on November 14, 2025.

Key Investor Engagement Events in 2025:

• Sidoti Year End Investor Conference participation on December 11, 2025.
• Availability for one-on-one investor meetings during the Sidoti Conference.
• Q3 2025 Financial Results Conference Call held on November 14, 2025.
• Q1 2025 Financial Results Conference Call held on May 8, 2025.

Finance: draft 13-week cash view by Friday.

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

You're looking at how TOMI Environmental Solutions, Inc. gets its specialized disinfection and decontamination products and services into the hands of critical users. It's a mix of direct engagement and leveraging established partners, especially in regulated sectors.

The focus on high-value, integrated systems is clear from the late 2025 pipeline activity. This suggests a channel strategy leaning heavily on technical sales and deep integration rather than broad, transactional sales.

Direct sales efforts target the highest-value domestic accounts, often involving complex system integrations. For instance, a globally recognized leader in eye health is expected to spend approximately $385,000 in 2025 across equipment, BIT Solution, and support services following repeat orders in Q3 2025 for their Florida facility. This repeat business validates the direct sales channel's effectiveness in securing large, recurring-potential customers.

The global network relies on strategic manufacturer partnerships to extend reach, particularly for the SteraMist Integrated System (SIS) platform. This collaborative approach helps get TOMI Environmental Solutions, Inc.'s iHP technology into existing enclosure systems. These key manufacturer partners include:

• ESCO Micro Pte. Ltd.
• Steelco S.p.A.
• Pharma Biotech System Components (PBSC)
• Nuaire, Inc.
• Getinge AB

The global reach is reflected in the revenue mix; nearly 36% of Q3 2025 revenue came from international markets, a significant jump from 20% in Q2 2025. This growth suggests the international distributor and representative network is gaining traction.

The SteraMist Integrated System (SIS) and Custom Engineered System (CES) platforms are central to the current pipeline strategy. As of late November 2025, TOMI Environmental Solutions, Inc. reported ten active projects across these platforms, forming a custom integration pipeline valued at about $3 million, which the company expects to close by year-end.

Investor relations and the corporate website serve as key informational channels, driving awareness and initial leads. The corporate website is listed as https://www.steramist.com. For direct engagement with potential institutional partners or investors, the contact for one-on-one meetings at the December 2025 Sidoti Year End Investor Conference was tomi@imsinvestorrelations.com.

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

You're looking at where TOMI Environmental Solutions, Inc. places its disinfection and decontamination technology, which is a mix of high-regulation and high-volume environments. The company's revenue streams, as of the nine months ended September 30, 2025, totaled $4.619 million, split between SteraMist Product sales and Service and Training revenue.

Here's a quick look at how the customer base is segmented and where the recent focus areas are:

Life Sciences and Pharmaceutical Manufacturing (clean rooms, biosafety labs)

This segment is clearly a strategic priority right now. TOMI Environmental Solutions, Inc. is positioning itself as a turnkey solution provider in these regulated spaces where contamination control is paramount. They report ten active projects across their SteraMist Integrated System (SIS) and Custom Engineered System (CES) platforms within this vertical. The company announced substantial progress in its custom integration pipeline, valued at approximately $3 million, as of late November 2025.

• Clean rooms and biosafety labs are core targets.
• Partnerships with enclosure manufacturers like ESCO Micro Pte. Ltd. and Getinge AB facilitate integration.
• The first SIS-SA system installation was announced in the pharmaceutical isolator market.

Healthcare (hospitals, operating rooms, ambulances)

The healthcare sector remains a foundational customer group, utilizing the SteraMist iHP technology for critical disinfection needs. A key regulatory event in late 2025 directly impacts this segment's potential. Specifically, the FDA broadened the permitted use of Hydrogen Peroxide on September 18, 2025, which significantly expands the potential application of SteraMist iHP. This should help drive future sales in this area, which includes hospitals and medical facilities.

Food and Agriculture Industry (processing, storage, packaging) following Sep 2025 FDA ruling

Following the September 2025 FDA ruling on Hydrogen Peroxide use, the Food and Agriculture segment, which includes meat and produce processing facilities, is seeing increased underlying demand. While specific revenue attribution isn't broken out, the company noted robust quote activity and pipeline volume growth year-to-date within the Food Safety sector. This market requires validated solutions for processing, storage, and packaging environments.

Government and Military (defense, police, fire departments, barracks)

TOMI Environmental Solutions, Inc.'s technology has roots in government work, having been invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. This history supports continued engagement with government entities. The customer base here includes police and fire departments, as well as military barracks.

Commercial and Institutional (schools, hotels, cruise ships, office buildings)

This segment represents a broad base of commercial structures where general disinfection is required. The company services schools, hotels, office buildings, and cruise ships. Geographically, this segment contributes to the company's international footprint, with nearly 36% of Q3 2025 revenue coming from international sources. The total revenue for that quarter was $2.012 million.

Finance: draft 13-week cash view by Friday.

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

You're looking at the cost side of TOMI Environmental Solutions, Inc. (TOMZ) and seeing a structure heavily influenced by product manufacturing and the necessary overhead to support a global sales footprint. The primary cost drivers are tied directly to getting the SteraMist equipment and the Binary Ionization Technology (BIT) Solution ready for customers.

The cost of revenue, which reflects the High cost of goods sold (COGS) for SteraMist equipment and BIT Solution manufacturing, is significant. For the three months ended September 30, 2025, the implied Cost of Revenue was approximately $\mathbf{\$780,000}$, calculated from the $\$$2.012 million in net sales and the reported Gross Profit of $\$$1.232 million for that quarter. This suggests that the cost to produce the physical goods, especially the equipment, consumes a substantial portion of the sales dollar, even with a healthy gross margin.

The pressure on profitability is clearly visible in the operating results. The company experienced an Increased operating expenses, contributing to a Q3 2025 operating loss of $\$(321,000)$. This loss compares to an operating income of $\$$149,000 in the same period of 2024, showing a significant swing due to cost pressures relative to revenue. For the nine months ended September 30, 2025, the operating loss widened to $\mathbf{\$(2.208 \text{ million})}$.

A major component of these operating costs is the Sales, General, and Administrative (SG&A) expenses for global sales and support. For the third quarter of 2025, the SG&A expense was reported at $\mathbf{\$1.4 \text{ million}}$. This figure supports the global sales force and administrative functions needed to manage international distribution and support the SteraMist platform adoption across various sectors [cite: 9 in previous turn].

The company manages its R&D and consulting costs, though the focus appears to have shifted away from heavy R&D spending in the near term. For Q3 2025, Research & Development (R&D) expense was relatively low at $\mathbf{\$10.69 \text{ K}}$. This is a sharp drop from the $\$$56.34 K reported in Q3 2024, which aligns with the stated goal of cutting R&D by 41% in 2024 (though full-year 2024 data is needed to confirm that specific percentage) [cite: 9 in previous turn]. Consulting Fees for Q1 2024 were $\$$113,635, illustrating another area of professional service expenditure [cite: 8 in previous turn].

To fund operations and growth initiatives, TOMI Environmental Solutions, Inc. has turned to the capital markets, leading to Financing costs related to the $50 million universal shelf registration and equity line. While specific interest or issuance costs aren't detailed, the company announced the filing of the $\$$50 million universal shelf registration statement on November 17, 2025. This filing established an Equity Line of Credit (ELOC) facility with Hudson Global Ventures, LLC, allowing the sale of up to $\mathbf{\$20 \text{ million}}$ of common stock over 24 months. The need for this financing is underscored by the company operating at a negative EBITDA of $\mathbf{\$5.08 \text{ million}}$ over the last twelve months.

Here's a breakdown of key cost and expense components for the third quarter of 2025:

The company is actively managing its spending, noting reduced selling, research, and administrative expenses year-to-date, which demonstrates disciplined cost management despite the operational loss. Finance: draft 13-week cash view by Friday.

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

You're looking at how TOMI Environmental Solutions, Inc. (TOMZ) actually brings in the cash flow, which is always the most critical part of the canvas. Honestly, the revenue mix shows a clear split between upfront capital sales and ongoing service/consumable needs, which is a good structure if they can scale the recurring side.

Here's the quick math on the major components for the nine months ended September 30, 2025, based on their latest 10-Q filing. We see a heavy reliance on equipment sales, but the growth story is supposed to be in the consumables.

The recurring revenue stream, which is what investors really like to see, comes from the BIT Solution (consumable) sales. For the year-to-date 2025 period, this segment reportedly grew by an impressive 200% year-to-date 2025. That kind of growth on a consumable is defintely a positive indicator for customer adoption and repeat usage of the Binary Ionization Technology (BIT™) platform.

Beyond the direct sales and consumables, TOMI Environmental Solutions, Inc. (TOMZ) also pulls revenue from intangible assets. This stream includes:

• Licensing fees for Binary Ionization Technology (BIT™) platform.

It's important to note that when you look at the reported equipment and service revenue, they sum up exactly to the total revenue figure provided. This suggests that the revenue from BIT Solution (consumable) sales and Licensing fees, while strategically important and showing high growth for consumables, was either immaterial or rolled into the other two buckets for the purposes of that specific disclosure breakdown, which is something to watch closely in the next filing.

Finance: draft 13-week cash view by Friday.