TOMI Environmental Solutions, Inc. (NASDAQ:TOMZ) Q3 2023 Earnings Call Transcript

Page 5 of 5

Halden Shane: I am going to let E.J. answer that question, primarily involved with the transport system.

John Nelson: Okay.

E.J. Shane: Of course, so currently, we are still at a soft promotion on the transport. We have a few sold with our partner in Germany, who is working on the next stages with the Red Cross there to install the transports there. We do still are in communication as well with the hospital who is a customer of ours that started the whole transport development, and we are hoping to meet with them before the end of the year. We are also working with the Canadian distributor group, Tecnimont that we released earlier in the year, and they are gaining a lot of traction on the transport with designers of ambulances, in which we are going to work with them on certain mounting devices because that is their specialty. We still have to endure some crash testing that’s required in the region. But once that’s completed, we will be able to establish more of a metric.

John Nelson: Okay. But any preliminary indications as far as a significant cost benefit using the new transport system?

E.J. Shane: Of course, it goes in line with our technology on the growth of – lack of grossness [ph] of use of iHP with comparison of the main competitor in the industry. So, there is certainly interest and the speed in which we can turn over an ambulance. And that was generated in a case study we have released with the German Red Cross on…

John Nelson: Okay. Alright. Thanks. And my last question is related to, again, back to the convertible debt offering. You had a number of I think, it was 28 investors, and that’s a rather large amount for a deal of size. Can you explain why so many investors in the deal?

Halden Shane: Well, I think I have always felt that the more eyeballs we have in our company that understand our technology and that are long-term investors, the better off we will be. Certainly, we raised a small amount of capital, and we could have raised a lot more with 22 investors. But I felt that the company started way back when with a group of investors, and I think now this group fits the criteria of being what we like to have and what we currently have going forward. So, that’s why we did it. It’s obviously a lot more difficult to bring in many one or two just from standpoint, education and paper. But we did it, and with the help of Aegis Capital. They did a terrific job and making sure that all investors, including these new ones, are successful in years ahead going forward.

John Nelson: Okay. It makes sense. That is all the questions I have. I look forward to a profitable fourth quarter. Thank you.

Halden Shane: Thank you. Thank you all.

Operator: We have reached the end of the question-and-answer session, and I will now turn the call over to management for any closing remarks.

Halden Shane: I just want to thank everybody for joining, and I hope everybody has a happy and healthy Christmas.

Operator: This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.

Follow Tomi Environmental Solutions Inc.

Page 5 of 5