Attached files
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
Amendment No. 1
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Commission file number 000-09908
TOMI ENVIRONMENTAL SOLUTIONS, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-1947988
------------------------ ------------------------------------
(State of incorporation) (I.R.S. Employer Identification No.)
9454 Wilshire Blvd., Penthouse, Beverly Hills, CA 90212
------------------------------------------------- ----------
(Address of principal executive offices) (Zip code)
Issuer's telephone number, including area code:
(800) 525-1698
--------------
Securities registered under Section 12(b) of the Exchange Act: None
Securities registered under Section 12(g) of the Exchange Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer,
as defined in Rule 405 of the Securities Act. [ ]
Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. [ ]
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K (229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by reference in
Part III of this Form 10-K or any amendment to this Form 10-K. [X]
Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See definitions of "large accelerated filer," "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Small reporting company [X]
Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
The aggregate market value of the common stock held by non-affiliates of the
registrant as of the last business day of the Registrant's most recently
completed second fiscal quarter was approximately $73,738,500 based upon the
closing price of registrant's common stock on that date.
As of April 1, 2010 the registrant had 35,277,480 shares of common stock
outstanding.
Documents incorporated by reference: None.
EXPLANATORY NOTE
TOMI Environmental Solutions, Inc. (referred to in this report as "we" or the
"Company") is filing this Amendment No. 1 to its Annual Report on Form 10-K/A
for the fiscal year ended December 31, 2009 (this "Amendment No. 1") to correct
an inadvertent clerical error made during the edgarizing and submission process.
Certain revisions to the amounts in the audited financial statements and
management's discussion and analysis were not included in the final filing as
edgarized. Those revisions primarily reflect a decrease in assets of
approximately $500,000 and accordingly, identical decreases to stockholders'
equity and net income. Net income per share also decreased by $.01. The
financial statements are not restated as a result hereof. There are no other
changes to the Company's annual report.
TABLE OF CONTENTS
PART II
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Item 8. Financial Statements and Supplementary Data
PART III
Item 15. Exhibits
Signatures
In this registration statement references to "TOMI," "we," "us," and "our" refer
to TOMI Environmental Solutions, Inc.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
The Securities and Exchange Commission ("SEC") encourages companies
to disclose forward-looking information so that investors can better
understand future prospects and make informed investment decisions.
This report contains these types of statements. Words such as "may,"
"will," "expect," "believe," "anticipate," "estimate," "project," or
"continue" or comparable terminology used in connection with any
discussion of future operating results or financial performance identify
forward-looking statements. You are cautioned not to place undue
reliance on the forward-looking statements, which speak only as of the
date of this report. All forward-looking statements reflect our present
expectation of future events and are subject to a number of important
factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
PART II
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations for the Year Ended December 31, 2009 Compared to the Year
-------------------------------------------------------------------------------
Ended December 31, 2008:
------------------------
We began our planned principal operations during the second quarter of 2009.
Revenue for the year ended December 31, 2009 and 2008 totaled $499,172 and
$10,335, respectively. Revenue and operating results for the two periods are
not comparable because the Company began its planned principal operations during
the second quarter of 2009 and was in its development stage during the prior
year.
Net (loss) income for the year ended December 31, 2009 totaled $13,659,889. The
net income for the year ended December 31, 2009 is primarily attributed to a
non-cash compensatory credit element from equity issuances of $18,312,558. On
March 31, 2009, the Company and Tiger Management, LLC amended the management
service agreement to establish the vesting period for the Series A Preferred
Stock issued. The vesting period was established to be the period June 2007
through December 31, 2010 and until the Company had reached at least one million
in annual gross revenue. Our Board of Directors' amended the Company's articles
of incorporation to reduce the conversion rate to common stock for its Series A
Preferred Stock from five shares to one share and to reduce the par value per
Series A Preferred Stock to $0.01 from $25. As a result, the Company recorded
$18,312,558 in compensation credit for equity issuance during the first quarter
of 2009. The Company had previously recorded $20,400,000 in non-cash other
general and administrative expenses during the year ended December 31, 2008.
The fair value was determined using the price of the stock on the date the board
approved the amendment to the agreement. Professional and consulting fees
include legal, accounting and consulting expenses. General and administrative
expenses primarily include payroll and payroll related expenses, rent and
depreciation.
Item 8. Financial Statements and Supplementary Data
TOMI Environmental Solutions, Inc.
----------------------------------
CONSOLIDATED BALANCE SHEET
--------------------------
ASSETS December 31, December 31,
------ 2009 2008
------------ ------------
Current Assets:
---------------
Cash and Cash Equivalents $ 13,126 $ 367,697
Investment - Restricted 3,563,062 -
Accounts Receivable 11,660 4,590
Notes Receivable 75,000 -
Deferred Cost 122,576 -
Prepaid Assets 2,751 18,710
------------ ------------
Total Current Assets 3,788,175 390,997
------------ ------------
Property and Equipment - net 306,633 372,990
------------ ------------
Other Assets:
-------------
Intangible Assets, net 102,767 111,100
Security Deposits 5,416 6,620
------------ ------------
Total Other Assets 108,183 117,720
------------ ------------
TOTAL ASSETS $ 4,202,991 $ 881,707
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
Current Liabilities:
--------------------
Accounts Payable and Accrued Expenses $ 118,124 $ 175,327
Accrued Officers Compensation 827,868 546,536
Notes Payable - Current Portion 45,896 43,976
Deferred Revenue 199,022 -
Obligations to be settled through issuance
of common stock 268,500 -
Dividends Payable on Preferred Convertible Stock 205,685 90,667
------------ ------------
Total Current Liabilities 1,665,095 856,506
Long-term Liabilities:
----------------------
Non-Current Portion of Notes Payable - Other 20,468 66,365
------------ ------------
Total Liabilities 1,685,563 922,871
------------ ------------
COMMITMENTS AND CONTINGENCIES - -
Stockholders' Equity (Deficit):
-------------------------------
Cumulative Convertible Series A Preferred Stock,
$0.01 par value, 1,000,000 shares authorized,
510,000 shares issued and outstanding at
December 31, 2009 and December 31, 2008. 5,100 5,100
Cumulative Convertible Series B Preferred Stock,
$1,000 stated value, 7.5% cumulative dividend,
4,000 shares authorized, 3,250 shares issued and
outstanding at December 31, 2009 and none at
December 31, 2008. 3,250,000 -
Common Stock, $.01 par value, 75,000,000 shares
authorized; 35,277,480 and 34,474,515 shares
issued and outstanding at December 31, 2009 and
December 31, 2008, respectively. 352,774 344,744
Additional Paid-in Capital 9,683,721 22,758,193
Accumulated Deficit (9,489,312) (23,149,201)
Deferred compensation (1,284,855) -
------------ ------------
Total Stockholders' Equity (Deficit) 2,517,428 (41,164)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 4,202,991 $ 881,707
============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
TOMI Environmental Solutions, Inc.
----------------------------------
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
For the Year Ended For the Year Ended
December 31, 2009 December 31, 2008
------------------ ------------------
Net Revenues $ 499,172 $ 10,335
Cost of Sales 200,619 -
------------------ ------------------
Gross Profit 298,553 10,335
------------------ ------------------
Costs and Expenses:
-------------------
Professional Fees 577,869 1,090,021
Other General and Administrative Expenses 1,370,871 1,248,225
Impairment on Investment, Research and Development 902,500 -
Management and Consulting Fees (17,458,605) 20,400,000
------------------ ------------------
Total Costs and Expenses (14,607,365) 22,738,246
------------------ ------------------
Income (Loss) from Operations 14,905,918 (22,727,911)
------------------ ------------------
Other Income (Expenses):
------------------------
Financing Costs - (14,444)
Loss of investment- restricted (1,238,656) -
Interest Income 2,109 -
Interest Expense (9,482) (3,224)
------------------ ------------------
Total Other Expense (1,246,029) (17,668)
------------------ ------------------
Net Income (Loss) $ 13,659,889 $ (22,745,579)
================== ==================
Income (Loss) attributable to common stockholders
Net Income (Loss) $ 13,659,889 $ (22,745,579)
Preferred stock dividend 205,685 90,667
------------------ ------------------
Income (Loss) attributable to common stockholders $ 13,454,204 $ (22,836,246)
================== ==================
Net Income (Loss) per Common Share - Basic $ 0.39 $ (0.66)
================== ==================
Net Income (Loss) per Common Share - Diluted $ 0.37 $ (0.66)
================== ==================
Weighted Average Common Shares Outstanding - Basic 34,864,011 34,391,534
================== ==================
Weighted Average Common Shares Outstanding - Diluted 36,024,011 34,391,534
================== ==================
The accompanying notes are an integral part of these consolidated financial
statements.
TOMI Environmental Solutions, Inc.
----------------------------------
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
--------------------------------------------------------
For the YearS Ended December 31, 2009 and December 31, 2008
-----------------------------------------------------------
SERIES A SERIES B
PREFERRED STOCK PREFERRED STOCK COMMON STOCK ADDITIONAL DEFERRED
--------------------- ----------------- --------------------- PAID-IN ACCUMULATED STOCK
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT CAPITAL DEFICIT COMPENSATION TOTAL
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Balance -
12/31/2007 - $ - - $ - 34,940,437 $349,404 $ 29,900 $ (403,622) $ - $ (24,318)
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Return of
Common Stock in
Connection with
Reverse
Acquisition - - - - (42,475) (425) 425 - - -
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
Pursuant to a
Private
Placement @
$.20 per share - - - - 3,060,000 30,600 581,400 - - 612,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
Pursuant to a
Private
Placement @
$.50 per share - - - - 100,000 1,000 49,000 - - 50,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
Pursuant to a
Private
Placement @
$.90 per share - - - - 971,553 9,715 864,685 - - 874,400
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
Pursuant to a
Private
Placement @
$1.00 per share - - - - 25,000 250 24,750 - - 25,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
for services @
$2.00 per share - - - - 420,000 4,200 835,800 - - 840,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
upon Conversion
of Convertible
Debt @ $.0125
per share - - - - 2,000,000 20,000 5,000 - - 25,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Convertible
Preferred Stock
to Related Party
for Services
Rendered @ $.01
per share 510,000 12,750,000 - - - - 7,650,000 - - 20,400,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Repurchase and
Retirement of
Common Stock @
$.001 per share - - - - (7,000,000) (70,000) 63,000 - - (7,000)
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Dividends on
Cumulative
Convertible
Preferred Stock
as of 12/31/08 - - - - - - (90,667) - - (90,667)
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Net Loss for
the Period
January 1, 2008
to December
31, 2008 - - - - - - - (22,745,579) - (22,745,579)
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Balance -
12/31/2008 510,000 $ 12,750,000 - - 34,474,515 $344,744 $10,103,293 $(23,149,201) $ - $ (41,164)
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock in
Lieu of Cash
Compensation - - - - 162,965 1,630 418,196 - - 419,826
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
Pursuant to
a Private
Placement @
$5.00 per share,
net of
offering cost - - - - 350,000 3,500 1,546,500 - - 1,550,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Common Stock
Pursuant to
a Private
Placement @
$2.00 per share - - - - 100,000 1,000 199,000 - - 200,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Issuance of
Convertible
Series B
Preferred Stock
@ $1,000
per share - - 3,250 3,250,000 - - - - - 3,250,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Dividends on
Cumulative
Convertible
Series B
Preferred Stock - - - - - - (205,685) - - (205,685)
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Reversal of
dividends - - - - - - 90,667 - - 90,667
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Deferred
Compensation - - - - - - 2,138,808 - (2,138,808) -
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Amortization of
Deferred
Compensation - - - - - - - - 853,953 853,953
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Forgiveness of
Compensation - - - - - - 150,000 - - 150,000
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Common Stock
Issued to
Acquire LLC
Interest - - - - 190,000 1,900 900,600 - - 902,500
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Change of Par
Value for
Series A
Preferred stock
from $25 per
share to $.01
per share - (12,744,900) - - - - (5,567,658) - - (18,312,558)
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Net Income - - - - - - - 13,659,889 - 13,659,889
---------------- ------- ------------- ------ ---------- ----------- --------- ------------ ------------- ------------ -------------
Balance -
12/31/2009 510,000 $ 5,100 3,250 $3,250,000 35,277,480 $352,774 $ 9,683,721 $ (9,489,312) $(1,284,855) $ 2,517,428
================ ======= ============= ====== ========== =========== ========= ============ ============= ============ =============
The accompanying notes are an integral part of these consolidated financial
statements.
PART III
Item 15. Exhibits
No. Description
--- -----------
31.1 CEO's Certification Pursuant to Rule 13a-14 and 15d-14 Under
The Securities Exchange Act of 1934, As Amended
31.2 CFO's Certification Pursuant to Rule 13a-14 and 15d-14 Under
The Securities Exchange Act of 1934, As Amended
32.1 Certification Pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned who is duly
authorized.
TOMI ENVIRONMENTAL SOLUTIONS, INC.
Date: May 28, 2010
By: /s/ Halden Shane
---------------------------
Halden Shane
Principal Executive Officer
In accordance with the Exchange Act, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on
the dates indicated.
Date: May 28, 2010
By: /s/ Halden Shane
---------------------------
Halden Shane
Principal Executive Officer
Principal Financial and Accounting Officer
Date: May 28, 2010
By: /s/Richard Johnson
---------------------------
Richard Johnson
Secretary and Director
Date: May 28, 2010
By: /s/Willie Brown, Jr.
---------------------------
Willie Brown, Jr.
Director
Date: May 28, 2010
By: /s/Harold W. Paul
---------------------------
Harold W. Paul
Director
