And welcome to the Tomi Environmental Solutions, Inc. second quarter, 2026 Financial Results Conference Call. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star 1 on your phone to enter the question queue at any time. And we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, John Nesbitt. Sir, the floor is yours.

Thank you for joining us today for Tomi Environmental Solutions Investor Update Conference Call. On today's call is Tomi's Chief Executive Officer and Chairman, Dr. Halden Shane, Chief Operating Officer, E.J. Shane, and Interim Chief Financial Officer, Nero Srirathan. A telephone replay of today's call will be available through August 21, 2026, the details of which are included in the company's press release. A webcast replay will also be available at Tomi's website, www.stairandmiss.com. Certain written and oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements should be evaluated in light of important risk factors that could cause actual results to differ materially from our anticipated results. The information provided on this conference call is based upon the facts and circumstances known at this time. Please refer to our filings with the Securities and Exchange Commission for a discussion of these risk factors. The company undertakes no obligation to update these forward-looking statements after the date of this call. I will now turn the call over to Tomi's Chief Executive Officer and Chairman of the Board, Dr. Holden Shane. Please go ahead.

Thank you, John, and thank you all for joining us today. Since signing our definitive agreement with Carbonian Core at the end of June, we have stayed closely engaged with their company. The integration of these two complementary technologies, each delivering exceptional performance in its respective markets, continue to advance as planned. But first, let me start with this. Tomey's Sturry Misty Contamination business has now delivered growth for three consecutive quarters. Our second quarter, 2026, results reflect another healthy quarter for Tomey. With continued positive momentum for the strategic initiatives we have implemented, and as always, we remain committed to keeping shareholders informed as these efforts progress. In the second quarter of this year, we saw growth across four key metrics compared to both the first quarter of this year and the second quarter of last year. Those four areas were bit solution sales, mobile equipment, single applicators, which is where Tomey's patented IHP intellectual property resides, and support services, including qualifications, acceptance testing, and training programs. The increase in applicator sales and support services stemmed directly from initiatives introduced in late 2024 and early 2025, further validating our strategic focus. We continue to pursue new opportunities and additional growth strategies throughout 2026 without interruption. Our second quarter results demonstrated a revenue increase of 118% year-over-year and 36% sequentially from the first quarter of 2026. BitSolution sales exceeded $700,000 for the first half of the year and continue to trend upward, which we believe positions us to finish the year with higher sales than in each of the prior two years, reaffirming our full-year revenue guidance. On the cost and cash front, our disciplined overhead management drove a 10% year-over-year reduction in quarterly operating expenses to $1.63 million, led by significant savings across general and administrative costs. This cost discipline, combined with $1.92 million in net proceeds raised through our equity line of credit, strengthened our balance sheet, expanding our working capital to $1.82 million and increasing cash and cash equivalents to $322,000 at quarter end. Additionally, we continue to make substantial operational progress towards remediating our historic material weakness. During the quarter, we strengthened our finance leadership with dedicated CPA oversight, formalized close and revenue recognition procedures, and instituted rigorous inventory and Treasury controls. These proactive actions reflect a strong commitment to full remediation, operational discipline, and robust financial reporting. The ongoing health of the company continues to be reflected in a growing sales backlog. At the end of last year, Tommy reported a backlog of $1.6 million that grew to $1.7 million by year end of this year's first quarter, then $2.2 million by the end of the second quarter, and currently stands at $2.6 million. This steady expansion in our sales backlog reflects the strength of our automated integrated system and the expanded service offerings we have implemented. The backlog continues to grow even as we fulfill existing orders, demonstrating both sustained demand and strong execution across our sales efforts. We are pleased to report the delivery of Sterimist IHP chambers to a Fortune 500 medical device manufacturer, making it an important milestone. This represents our first fully designed, manufactured, and assembled chamber engineered specifically for integration with our Sterimist standalone system, part of our integrated SIS platform. This is different from the pass-through system announced last year. This chamber is a distinct advancement in our technology platform and enables us to formally advance our 510K submission process with the FDA. Achieving 510K clearance would authorize the marketing of our technology for specific medical device applications in the United States, significantly expanding our addressable market, enhancing regulatory credibility, and opening new commercial opportunities in the healthcare and life science sector. In parallel, we've been actively collaborating with two additional partners to develop a next-generation, all-in-one, fully autonomous IHP chamber. This system is designed for the decontamination of medical devices, electronics recycling, pharmaceutical components, laboratory equipment, biotech materials, food packaging, aerospace components, and other high-value items requiring reliable, enclosed decontamination. This new chamber is more intelligent than our original Sterabox and operates without the need for a separate mobile equipment attachment, offering a streamlined, fully integrated solution. One partnership is focused on serving our international customers, while the other targets the domestic market, allowing us to grow both sectors in tandem. April began on a strong note with a significant win in Interfex, where we secured a new partnership with a top-tier American health company renowned for its innovative, pre-mixed, ready-to-use medication formulations. We have since joined forces with this organization on a range of projects and collaborations, closing the quarter with additional sales. The customer purchased equipment at the show, and they've continued to expand its requirements throughout the implementation of the project as it moved forward. While we are unable to share further details at this time, we anticipate this company will become one of our top customers. In addition, one of their senior technical leaders has joined Tomi in an advisory capacity, lending their expertise on the scientific and engineering front. We look forward to leveraging this individual's expertise across multiple integration projects for similar customers seeking to implement Sturimus IHP technology within their proprietary mechanical systems. Also in April, we completed the installation of a Sturimus hybrid system at a highly respected private research university on the East Coast. The customer has already placed a second order scheduled for next year. In May, one of our newly associated government agencies purchased significant amount of accessories in preparation for the deployment of their environment system. Also during that same month, we onboarded several new food safety customers using the SteriPak. Moving to June, it continued this positive momentum with additional government orders from the Department of Health, expanded IHP adoption among existing food safety customers, and the installation of another fully automated custom system in the United Kingdom, the second pharmaceutical company in the region to implement our CES product line. We expect our UK partner, DCA, to drive further adoption in the near term across markets. Also in June, we expanded our domestic distribution network by adding new partners with established relationships and familiarity with our technology. This includes a distributor specialized in emergency services, contacts on the east coast, and on the west coast our IHP corporate service partner secured a meaningful opportunity in healthcare sector and expanded its arsenal of IHP equipment and BIF solution. In the healthcare sector we have seen growing adoption of IHP technology by special pathogen units throughout the first half of this year with additional opportunities developing for the second half of the year. These special pathogen units manage high consequence infectious diseases and require rapid validated and comprehensive decontamination of rooms equipment and personal protective equipment. They require a solution that delivers broad spectrum efficacy against resilient pathogens and reduces manual intervention while maintaining the highest safety standards, capabilities that align directly with the strengths of our SturryMist IHP platform. We also secured a purchase from a healthcare facility for our first NV Plus all-in-one stainless steel cart, featuring a rotating applicator, integrated lights, and full automation, which is scheduled for delivery by the end of the third quarter. It continues to be an active period on the registration and regulatory front. TOMI's innovative disinfection product is now approved for use in Austria, Italy, the Netherlands, Belgium, Denmark, Germany, Hungary, Spain, Great Britain, Northern Ireland, and Ireland. We have also added Switzerland through an amendment, and we expect additional approvals for France, Poland, Portugal, and Romania. NSF is rewriting the rules on biosafety cabinet decontamination. TOMI played a key role in advancing this decision at the NSF meeting in June. The industry is shifting away from listing legacy known methods and brands, such as paraformaldehyde, and moving towards strict performance-based criteria focused on efficacy, validation, and material compatibility, areas where stereo-missed IHP technology excels. We continue to strengthen our intellectual property portfolio, submitting four new utility patent applications in the second quarter, giving us additional worldwide protection for our technology. This month, the EPA has granted a new unconditional registration for AgriMist, Tomey's fourth EPA label. This expanded label significantly broadens our approved use sites to include a wide range of food safety applications. The registration authorizes direct application of IHP to indoor-grown plants and fruits, such as avocados for the prevention, control, and suppression of common plant pathogens. The label also permits applications up to and including the day of harvest, a key advantage consistently identified by cultivators. I will now turn the call over to our interim chief financial officer, Nero, for a view of Tomi's scurrying this Q2 financial results.

Thank you, Dr. Shane. Our complete financial statements are included in our Form 10Q filed with the SEC and detailed in today's press release. I will now walk through our key financial and operational metrics for the three months ended June 30, 2026, comparing our results to the prior year period. Revenue for the second quarter of 2026 was $2.25 million, representing a 118% increase compared to $1.03 million in Q2 2025, and a 36% sequential increase over Q1 2026 revenue of $1.65 million. Revenue and commercial performance. Our top-line acceleration was driven by growth across both our product and service divisions. Product revenue reached $1.86 million for the quarter, a 42% sequential increase over Q1 2026, and a 185% increase, approximately $1.2 million, compared to Q2 2025. This growth was fuelled by strong demand for capital equipment, custom engineered systems or CES, and expanding adoption of IR Stereomist applicators. Service revenue also saw gains across both comparative periods, reaching $389,000, up 13% sequentially from $344,000 in Q1 2026 and up 3% year over year compared to $378,000 in Q2 2025. Geographically, US revenue expanded 132% year over year to $1.91 million, while international revenue grew 62% to $339,000, bolstered by new customers onboarding in the UK. Gross margin. Gross profit for Q2 2026 more than doubled to $1.39 million, up 105% compared to $677,000 in Q2 2025. Gross margin are strong at 61.7%, representing an increase from 50.3% in Q1 2026, while remaining healthy compared to 65.7% in Q2 2025. The sequential expansion was driven by higher revenue volume and an optimal mix of equipment deployments alongside high-margin bit solution consumables. Applicator sales reached $355,000 for the quarter, up from $13,000 in Q2 2025, validating the momentum of our high-margin recurring razor and blade model. Operating expenses and operating loss. Total operating expenses for Q2 2026 were $1.63 million, A reduction of approximately $180,000, or 10%, compared to Q2 2025. This reduction reflects our continued overhead discipline across general and administrative costs, offset slightly by transaction-related professional and consulting fees associated with our strategic growth initiatives, including our reverse stock split, Schedule 14C filings, and the pending merger. Our loss from operations for Q2 2026 improved by 78% to approximately $244,000, compared to an operating loss of approximately $1.13 million in Q2 2025. This approximate $889,000 year-over-year reduction in operating loss demonstrates meaningful operating leverage and puts us within clear striking distance of operating break-even. G&A savings were further supported by improved collection activity and a credit loss reserve benefit of approximately $144,000 during the quarter.

Net loss and transaction impact.

Net loss for the second quarter of 2026 improved by 69% to approximately $382,000, or $0.05 per basic and diluted share, compared to a net loss of approximately $1.24 million or 19 cents per share in Q2 2025. On a six-month basis, net loss improved 20% to approximately $1.19 million compared to $1.49 million in the prior year period. All share and per share figures retroactively reflected our 1 for 3 reverse stock split effected on July 20, 2026. It is worth noting that Q2 2026 operating expenses included approximately $300,000 in elevated advisory, legal, and diligence costs tied to the signing of the Carbonium Core Agreement and planned of merger. Excluding these transaction-related expenses, our core operating performance underscores the solid trajectory of our underlying steromist business. Cash flow, balance sheet and capital access We ended Q2 2026 with $322,000 in cash and cash equivalents up from $88,000 at December 31st, 2025 Working capital expanded to $1.82 million compared to $1.02 million at year-end 2025 while stockholders' equity increased significantly to $1.43 million up from $589,000. As of June 30, 2026, we maintained approximately $18.1 million in remaining contractual capacity under our ELOP facility. Following majority shareholder approval in June to waive the exchange cap under relevant NASDAQ rules, the ELOP remains an available tool to support ongoing working capital requirements. Additionally, post-quarter on August 12, 2026, we entered into an omnibus amendment with holders of our 2023 convertible notes, lowering the fixed conversion price from $3.75 to $1.50 per share, subject to adjustment in accordance with the terms of the notes and as adjusted for the reverse stock split. As of today, we believe we have met the NASDAQ stakeholders equity requirement. Backlog and forward guidance. Looking ahead, our financial visibility remains robust. Our total sales order backlog stood at $2.2 million at quarter end and has expanded to $2.6 million post-quarter. Booked orders and expected completions before year-end exceed $6.2 million, supporting an active integrated project pipeline of $4.3 million across 13 projects, and a broader commercial sales pipeline of approximately $35 million. Based on this visibility and our second half trajectory, we comfortably reaffirm our full year 2026 revenue guidance of at least $12 million. Furthermore, our agreement and plan of merger executed on June 29, 2026 with Carbonium Core includes a $10 million minimum co-current financing condition prior to closing. which we expect will transform the combined company's balance sheet and growth trajectory. Investors are encouraged to review our quarterly report on Form 10Q in full, including the risk factors and notes to the condensed consolidated financial statements. I will now turn the call over to our Chief Operating Officer, E.J. Shane, for an update on what to expect in the upcoming months and rest of the year.

Thank you, Nero, and good afternoon, everyone.

Tomi's sales pipeline remains robust, with the total identified interest currently standing at approximately $35 million.

Of this amount, Tomi's sales pipeline remains robust, with the total identified interest