Florida
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000-09908
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59-1947988
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(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.01 par value per share |
TOMZ |
The Nasdaq Capital Market |
Exhibit No.
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Description
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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TOMI ENVIRONMENTAL SOLUTIONS, INC.
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Date: August 1, 2024
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By:
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/s/ Halden S. Shane
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Name: Halden S. Shane
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Title: Chief Executive Officer
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• |
Total net revenue was $3,013,000 compared to $2,775,000.
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• |
Gross margin was 61.5% compared to 61.3%.
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• |
Operating profit was $122,000, compared to an operating loss of ($89,000).
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• |
Net income was $30,000 or $0.00 per basic and diluted share, compared to a net loss ($89,000) or ($0.00) per basic and diluted share.
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• |
Adjusted EBITDA was $343,000 compared to $2,000 in the same prior year period. A table reconciling EBITDA to the appropriate GAAP financial measure is
included with the Company’s financial information below
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• |
Total net revenue was $4,127,000 compared to $4,357,000.
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• |
Gross margin was 61.2% compared to 60.6%.
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• |
Operating loss was ($1,105,000), compared to ($1,277,000).
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• |
Net loss was ($1,280,000) or ($0.06) per basic and diluted share, compared to a net loss ($1,276,000) or ($0.06) per basic and diluted share.
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• |
Adjusted EBITDA was ($806,000) compared to ($939,000) in the same prior year period. A table reconciling EBITDA to the appropriate GAAP financial
measure is included with Company’s financial information below
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• |
Cash and cash equivalents were approximately $709,000
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• |
Working capital was $6.8 million.
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• |
Shareholders’ equity was $7.3 million.
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170% sequential quarterly revenue growth for the three months ended June 30, 2024, compared to the three months ended March 31, 2024
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• |
With increased revenue and lower operating expenses, we reported a profit of approximately $30,000. This marks a significant milestone for the company
and a major improvement compared to both the first quarter of this year and the second quarter of 2023.
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• |
Overall sales volume and sales order activity for the first and second quarters of 2024 amounted to $5,100,000 which consisted of approximately
$4,100,000 in recognized revenue and an approximate sales backlog of $1,000,000 at the end of the quarter.
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• |
Second quarter BIT Solution sales increased by approximately 31% compared to the second quarter of 2023 and by 171% sequentially over the first quarter
of 2024.
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• |
Our second quarter international revenue grew by 130%, driven by new customers in Canada, Mexico, the Philippines, and the United Arab Emirates,
compared to the same period in 2023.
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• |
As of June 30, 2024, we have nearly matched the total number of mobile equipment sales achieved during the entire calendar year of 2023.
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• |
During the second quarter, management implemented cost reduction initiatives that lowered our operating expenses by 3% compared to the same period last
year. Additionally, our operating expenses in the second quarter of 2024 decreased by 9% compared to the first quarter of 2024
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• |
To expand our reach and increase our presence in the western United States via our iHP Service offerings, we have partnered with EMAQ. EMAQ has invested
over a million dollars in SteraMist iHP equipment and will serve as our partner to expand iHP services in this region.
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• |
In Q2 2024, we received an order for our CES system from a global leader in advanced laboratory services. This customer added two more Environment
Systems to their existing set of two, along with a seven-applicator iHP Custom Engineered System (CES), which is scheduled for installation by the end of the year.
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We maintained an active focus on digital marketing initiatives and business development plans with existing customers. To optimize our budget, we reduced our
participation in tradeshows and redirected resources towards more effective lead generation strategies such as referrals and references.
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We are steadily increasing our presence in the food safety marketplace and are currently conducting numerous feasibility studies with both small and
large companies.
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On April 3, 2024, we announced the company has received the Gold Safety Award from Highwire. The award is presented to TOMI in recognition of the Company achieving a
score of between 85-94 on the Highwire Safety Assessment. Highwire’s Safety Assessment reviews a company’s historic and current safety performance. The program provides a thorough, objective, and consistent evaluation of company performance
so clients and contractors can identify, monitor, and mitigate risks more effectively. The results provide a strong indicator of how a contractor values safety and serve as a reliable predictor of future performance.
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TOMI ENVIRONMENTAL SOLUTIONS, INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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ASSETS
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Current Assets:
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||||||||
June 30, 2024 (Unaudited)
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December 31, 2023
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|||||||
Cash and Cash Equivalents
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$
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709,110
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$
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2,339,059
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Accounts Receivable - net
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3,663,862
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2,429,929
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Other Receivables
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164,150
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164,150
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Inventories
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4,281,614
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4,627,103
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Vendor Deposits
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126,185
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29,335
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Prepaid Expenses
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290,195
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371,298
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Total Current Assets
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9,235,116
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9,960,874
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Property and Equipment – net
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983,601
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1,048,642
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Other Assets:
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Intangible Assets – net
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1,113,491
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1,123,246
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Operating Lease - Right of Use Asset
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434,607
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467,935
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Long Term Accounts Receivable - net
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206,240
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206,240
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Other Assets
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638,392
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550,677
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Total Other Assets
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2,392,730
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2,348,098
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Total Assets
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$
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12,611,447
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$
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13,357,614
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current Liabilities:
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Accounts Payable
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$
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1,714,489
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$
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1,267,029
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Accrued Expenses and Other Current Liabilities
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512,829
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675,491
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Deferred Revenue
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57,192
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-
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Current Portion of Long-Term Operating Lease
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122,259
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115,658
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Total Current Liabilities
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2,406,769
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2,058,178
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Long-Term Liabilities:
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Long-Term Operating Lease, Net of Current Portion
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579,715
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642,527
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Convertible Notes Payable, net of unamortized debt discount of $270,746 and $301,985 at June 30, 2024 and December 31, 2023, respectively
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2,329,254
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2,298,015
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Total Long-Term Liabilities
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2,908,969
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2,940,542
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Total Liabilities
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5,315,738
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4,998,720
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Commitments and Contingencies
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Shareholders’ Equity:
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||||||||
Cumulative Convertible Series A Preferred Stock;
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||||||||
par value $0.01 per share, 1,000,000 shares authorized; 63,750 shares issued
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and outstanding at June 30, 2024 and December 31, 2023, respectively
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638
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638
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Cumulative Convertible Series B Preferred Stock; $1,000 stated value;
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7.5% Cumulative dividend; 4,000 shares authorized; none issued
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and outstanding at June 30, 2024 and December 31, 2023, respectively
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-
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-
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Common stock; par value $0.01 per share, 250,000,000 shares authorized;
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20,015,205 and 19,823,955 shares issued and outstanding
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at June 30, 2024 and December 31, 2023, respectively
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200,152
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199,240
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Additional Paid-In Capital
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58,201,140
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57,985,245
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Accumulated Deficit
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(51,106,221
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)
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(49,826,229
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)
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Total Shareholders’ Equity
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7,295,709
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8,358,894
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Total Liabilities and Shareholders’ Equity
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$
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12,611,447
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$
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13,357,614
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TOMI ENVIRONMENTAL SOLUTIONS, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||||||
For The Three Months Ended
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For The Six Months Ended
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|||||||||||||||
June 30,
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June 30,
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2024
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2023
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2024
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2023
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Sales, net
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$
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3,013,392
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$
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2,774,699
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$
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4,127,479
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$
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4,356,871
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Cost of Sales
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1,158,876
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1,074,420
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1,602,295
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1,715,355
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Gross Profit
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1,854,516
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1,700,279
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2,525,184
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2,641,516
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Operating Expenses:
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Professional Fees
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84,327
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111,660
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282,326
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248,845
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Depreciation and Amortization
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76,554
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90,560
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154,475
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179,336
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Selling Expenses
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366,265
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501,045
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655,334
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877,698
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Research and Development
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61,614
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73,728
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129,585
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144,248
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Consulting Fees
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23,095
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68,912
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136,730
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144,367
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General and Administrative
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1,120,849
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943,314
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2,271,398
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2,324,108
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Total Operating Expenses
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1,732,704
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1,789,219
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3,629,848
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3,918,602
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Income (loss) from Operations
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121,812
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(88,940
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)
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(1,104,664
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)
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(1,277,086
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)
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Other Income (Expense):
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Interest Income
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1,845
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349
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11,751
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1,008
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Interest Expense
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(93,459
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)
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-
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(187,079
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)
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-
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Total Other Income (Expense)
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(91,614
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)
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349
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(175,328
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)
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1,008
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Income (loss) before income taxes
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30,198
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(88,591
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)
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(1,279,992
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)
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(1,276,078
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)
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Provision for Income Taxes (Note 16)
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-
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-
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-
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-
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||||||||||||
Net Income (loss)
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$
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30,198
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$
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(88,591
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)
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$
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(1,279,992
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)
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$
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(1,276,078
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)
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Net income (loss) Per Common Share
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Basic
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$
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0.00
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$
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(0.00
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)
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$
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(0.06
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)
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$
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(0.06
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)
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Diluted
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$
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0.00
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$
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(0.00
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)
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$
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(0.06
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)
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$
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(0.06
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)
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Basic Weighted Average Common Shares Outstanding
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19,985,205
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19,823,955
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19,946,164
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19,815,336
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Diluted Weighted Average Common Shares Outstanding
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22,133,562
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19,823,955
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19,946,164
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19,815,336
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For The Three Months Ended
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For The Six Months Ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2024
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2023
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2024
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2023
|
|||||||||||||
(Unaudited)
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(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Net income (loss)
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$
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30,198
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$
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(88,591
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)
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$
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(1,279,992
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)
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$
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(1,276,078
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)
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Depreciation and Amortization
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76,554
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90,560
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154,475
|
179,336
|
||||||||||||
Interest Expense
|
93,459
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-
|
187,079
|
-
|
||||||||||||
Interest Income
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(1,845
|
)
|
(349
|
)
|
(11,751
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)
|
(1,008
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)
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Other
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-
|
-
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-
|
-
|
||||||||||||
EBITDA Profit/(Loss)
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$
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198,366
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$
|
1,620
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$
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(950,189
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)
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$
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(1,097,750
|
)
|
||||||
Equity Compensation Expense
|
144,308
|
-
|
144,307
|
158,833
|
||||||||||||
Other
|
-
|
-
|
-
|
-
|
||||||||||||
Adjusted EBITDA Profit/ (Loss)
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$
|
342,674
|
$
|
1,620
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$
|
(805,882
|
)
|
$
|
(938,917
|
)
|
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Net revenue
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$
|
3,013,392
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$
|
2,774,699
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$
|
4,127,479
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$
|
4,356,871
|
||||||||
Adjusted EBITDA Margin
|
11
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%
|
0
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%
|
-20
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%
|
-22
|
%
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