TOMI Environmental Solutions, Inc. (TOMZ-OTC: BB)

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April 23, 2010 Issue

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Using Their Ozone And Hydroxyl Radical Products, Commercial Clients Of TOMI Environmental Solutions, Inc. Are Able To Clean The Air And Surface Areas Of Contaminants, Viruses, Bacteria And Mold In Hospitals And Commercial Or Residential Buildings In A Short Time Compared To Other Existing Applications

Company Profile: TOMI Environmental Solutions, Inc together with its alliance and licensee partners engages in the remediation and treatment of all indoor environments. The company’s suite of high tech equipment consists of UV-Generated Ozone, Activated Hydrogen Peroxide and UVGI lamps all of which allows for the one stop shopping of anyone’s indoor environmental needs. Our products contain the latest technology using three dimensional application designed to decontaminate indoor air, surfaces and eliminate infections, including inactivation of viruses, removal of all allergen and asthma triggers, killing of MRSA,C-Diff, mold spores, anthrax and all other bacteria and infectious pathogens. It currently keeps looking for and testing an array of potential new environmental products to add to its current suite of technology. TOMI and its partners potential application base  includes medical facilities, hotel and motel rooms, prisons, airports, cruise ships, and schools, including both single and multi-unit residences along with any other kinds of structures. Its customers are mainly professional remediators, contractors and end users. The company was formerly named The Ozone Man, Inc and changed its name to TOMI Environmental Solutions in 2009. TOMI Environmental Solutions is based in Beverly Hills, California.

 

TOMI Environmental Solutions is a leading provider of environmental services that are using UV ozone, activated hydrogen peroxide and UVGI-Filtration to achieve a safe and healthy indoor environment. TOMI equipment will treat and protect homeland security issues that involve infectious disease control. Compared to other existing methods of air remediation and purification, TOMI systems produces byproduct-free ozone and activated hydrogen peroxide mist with a high degree of safety and industry expertise. Additionally, to help maintain the clean environment after its deep cleaning, The Company offers its non-ozone producing UV germicidal accessories, the "Terminator" that can be permanently installed to maintain clean inside air.

Dr. Halden S. Shane
Chairman and CEO

BIO: Halden (Doc) Shane has been the CEO and Chairman of TOMI Environmental Solutions since the company’s inception. His mission is to bridge Medical Science and Environmental Science so humanity may live, work and play in a healthy indoor environment. He has positioned TOMI Environmental Solutions to be the vehicle that will allow him to accomplish that mission.

Dr. Shane was Past CEO of Tiger Management International: a Large-Cap Management company that deals in business management of private and public equity companies as a business negotiator and facilitator. In 2002, Dr. Shane created Geo-Political hedge fund: an private equity fund specializing in oil, gold and large cap companies that are affected by geo-political issues.

 

Dr. Shane also served as President, Founder, and CEO of Integrated Healthcare Alliance, Inc. (1988) a Medical Management Company, which had operations in many states with hundreds of Physicians and ancillary personal under his direction. Dr. Shane was also Founder and General Partner of Doctors Hospital West Covina, California. Prior to 1988, Dr. Shane practiced Podiatric Surgery specializing in ankle arthroscopy. Dr. Shane has been the author of many published articles in the medical and environmental field.


Green Global
Environmental Technology
(TOMZ-OTC: BB)


TOMI Environmental Solutions, Inc.
9454 Wilshire Boulevard
Penthouse PH/G-1
Beverly Hills, CA 90212
Phone: 310-275-2255

 

Interview conducted by: Lynn Fosse, Senior Editor, CEOCFOinterviews.com, Published - April 23, 2010


CEOCFO: Dr. Shane, what was your vision when you founded the company and where are you now?

Dr. Shane: When I founded the company the vision was to bridge a gap between healthcare and environmental science knowing that there are a tremendous amount of illnesses caused by pollution and particulates. This is especially so over the last thirty years, because of a change in our building codes due to tighter building requirements to reduce energy bills. As a result, of these building codes we now have tighter insulation and less fresh air resulting in a host of Petri dish organisms living with us all. The AMA states that 50 % of all illnesses could be associated with indoor pollution. The U.S. asthma rate has increased by 60 percent in the last 30 years and a major medical journal states that 39 percent of all asthma could be eliminated by reducing indoor air pollution and particulates. The decision was to go ahead and find the technology that would be the answer to these issues and reduce the health related problem from indoor pollution and contaminants.

 

CEOCFO: And what have you found at TOMI?

Dr. Shane: We have found a suite of products that is the latest technology, and uses a three dimensional application that is designed to decontaminate indoor air, as well as surfaces, eliminate infections including inactivation of viruses, and remove all allergens, odors and asthma triggers. It also kills MRSA, C-diff, mold spores, anthrax and any other bacteria and infectious pathogens.

 

CEOCFO: What does the technology do and how does it work?

Dr. Shane: The technology works as follows: one of our products produces ultraviolet ozone, which is the third most powerful oxidizer. Ozone protects us in the stratosphere from cancer and other rays that could potentially kill us. UV ozone also works at the ground level by converting exhaust fumes and other contaminants into ozone. Therefore, if it were not for ozone at ground level we would have a toxic world and probably be the end of the earth as we know it. What we at TOMI are able to do is convert air into UV ozone similar to the way the sun does in the stratosphere. Simple put ultraviolet rays break an oxygen molecule in half; it attaches to another oxygen molecule and becomes clean ozone. This means that we take the air in a structure, convert it to ozone. The ozone then seeks anything living and destroys it. Ozone hates being ozone and just wants to convert to anything other than being ozone. In a way, it is suicidal! Of course, during our treatments there are no people, pets, or plants in that structure, because it kills and inactivates everything. Our second product is the second strongest oxidizer known to man, which is a hydroxyl radical. What we do is take hydrogen peroxide and activate it into a mist. We then literally completely transform an operating suite, patient room, hotel room or classroom into a foggy London night and in 15 minutes all surfaces and its air are decontaminated and pathogens killed to a six log.

 

CEOCFO: Are there competitive technologies on the horizon?

Dr. Shane: Ozone has been available for over a hundred years. Most of the competitors ozone are produced by electricity, and leaves by-products, ours is produced naturally by using Ultra Violet lamps. However, TOMI’s ozone is the purest and does not leave any by-products.


There are other hydrogen peroxide machines available in the United States and Europe, but most of them are larger, take longer than ours take to treat a room, cannot be used with sensitive electronics or are as effective. The other competitive technologies would be typical standard remediation application of biocides, which is almost like treating cancer with a chemo agent and there are always bad side effects.

 

CEOCFO: How has your technology been tested for effectiveness?

Dr. Shane: Our technology has been tested repeatedly by various institutions. Our fogger was presented on a poster board display at a 10 year infectious disease convention in Atlanta, Georgia presented by Lee Memorial hospital in Florida and their study showed a 99.999% kill rate on all the biologicals that they tested.

 

We have also had our UV ozone tested in a large Leeds building in Manhattan, New York this building is 30 stories and over 350,000 square feet, TOMI completely treated the building with the blessings of many industrial hygienists and the NYFD.

 

CEOCFO: What will you actually be putting in a room or a building; what is your product offering?

Dr. Shane: We go ahead and remove people, pets, and plants from the identified building whether we are treating sick building syndrome, fire or smoke smell, mold spores or swine flu and or bacteria infestation. We then fill the room up with ozone, or with a hydroxyl radical mist. If we use UV ozone then we strategically place our assortment of generators. TOMI’s suite of generators have two lamps, four lamps, seven lamps, nine lamps and twelve lamps, which each put out various amounts of ozone. We go ahead, exchange the ambient air with ozone, and treat for a specific time. Ozone half-life is only twenty minutes as soon as the ozone levels are below EPA guidelines we allow the building occupants back in or we bring in our fogger, whom we use in small 18’ by 20’ rooms, the fogger delivers a mist using a proprietary fluids to eliminate all bacteria, viruses and spores.

 

CEOCFO: Sounds simple!

Dr. Shane: It is very simple provided the user is trained, certified and has our equipment!

 

CEOCFO: Where are you today with developing and commercializing the products, and where are you going in the next 6, 12, 18 months?

Dr. Shane: We started in the service end of the business where we felt we would hire and train technicians and we realized that there was a large commercial market with specialists out there that could be certified and licensed in using our equipment. Therefore, we associated ourselves with the RIA (Restoration Industry Association of America). It is about 20,000 strong in professional restoration members and we are licensing our products for them to utilize in their typical remediation process of a building or a home. Therefore, if there has been a fire they are able to eliminate the smoke using our ozone generators. If there is an outbreak in a hospital that is a client of theirs, they are able to utilize our fogger in the hospital and eliminate bacteria and viruses. We are in the process of now licensing both domestically and internationally members of the Restoration Industry Association. We just recently signed an alliance agreement with Rolyn Companies, which is one of the largest Restoration companies in the United States along with a license agreement with Degmor Industries, who is a large New York based environmental remediation company. These companies have been in the Restoration Industry collectively for over fifty years and displayed an interest to be on the cutting edge of the green environmental wave we are currently experiencing globally. TOMI has been contacted, and are presently pursuing individuals in Singapore. Singapore is having a tremendous demand for new investment vehicles and businesses for Chinese immigrants who want to invest in local Singapore companies. They have identified the air remediation industry and treatment of infectious disease control industry along with our products as a potential market for these Chinese immigrants to invest in. We also are looking at Chinese immigrants coming to the United States and meeting the $500,000 .00 investment minimum to enter the country. These concepts will be completed within the next 12 months.

 

CEOCFO: Does the foreign market have the same building issues that we have in the US?

Dr. Shane: They are way ahead of us in relationship to the recognition of indoor pollution and its problems. Maybe because of the amount of VOCs (Volatile Organic Compounds) that is produced by the products that are made in China. There are laws now in China and South Korea that they must have indoor air inspections. Currently in South Korea, not only are they having indoor air inspections, but they are using ozone as a treatment, prior to the occupancy of the new inhabitant of the building, apartment or house.

 

CEOCFO: What is your sales and marketing strategy in the United States?

Dr. Shane: We are marketing to the remediation industry. Our model will enable the remediator to add more revenue to their bottom line while they are waiting for that emergency to take place. We are creating a standard for them where they are able to offer our products to their customers once they are certified and trained. They have a suite of equipment to use and to have available to perform treatments inside of all indoor environments. We know that due to our results and the work we have done thus far in the healthcare, commercial and the residential indoor world that our equipment and application will soon become a standard in all remediation work, so the public will be assured of having clean indoor air to live, play and work in. The elimination of infectious disease is a market that the press sells for us, you cannot pick up a paper today without reading about the concern of the spreading of infectious disease. Every normal person wants the air they breathe to be disease free and we can assure that. The healthcare industry by itself is potentially billions of dollars and we anticipate a tremendous amount of work from the healthcare industry because historically with new technology, healthcare is quite interested once they start to understand the nature and potential of these technologies. Our technology allows them to eliminate the infectious disease epidemic that is currently killing 271 people a day. This equals to be more deaths then people dying from auto accidents, murders and colon cancer combined, along with costing the healthcare industry over $30 billion a year. Therefore, our trained remediatiors and our licensees using TOMI equipment are able to go ahead and reduce the liabilities to the hospitals that infectious disease cost. Healthcare associated infections are a huge problem and we have an answer that will become the standard in the treatment of hospital or healthcare acquired infections.

 

CEOCFO: With a safe, effective, win-win technology are you now on the brink of acceptance?

Dr. Shane: We are now seeing the light at the end of the tunnel; we are being much more accepted than we were. When we started in 2008, our revenue was just $10,000; in 2009 our revenue was $499 thousand, we are just adding a sales force and we anticipate our revenue increasing significantly in the future. The acceptance has been a long road, but we see now that people are accepting us and the industry is accepting us. We are also in negotiations currently with a large major international hotel chains for the use of our equipment. TOMI’s equipment will offer their elite clients a green environmentally treated room free of all of the prior quests DNA and bugs. Therefore, when the new guest checks into their room they will be assured that the couch and or bed that they are laying on or sitting on is germ-free and all the surfaces are completely decontaminated. We are very excited and we think all of this will become a standard in the future in the hospitality, healthcare, commercial and residential living industry.

 

CEOCFO: That is a huge market opportunity for you!

Dr. Shane: It is huge, billions of dollars.

 

CEOCFO: What about schools?

Dr. Shane: Schools are another direction that we have looked into. One of our board members is very politically involved and we have made presentations to some of the school boards. The biggest problem with school boards today is funding. We can eliminate the pollution, allergy triggers and prevent some asthmatic attacks. As a matter of fact it is a saving for a school to go ahead and use our products, because it has been shown by studies that it reduces absentees by 70%, and schools lose revenue by not having their students in class. This is a great method of not only having a healthy learning environment for a student, but also in reducing the cost allocated by the states for absenteeism. Therefore, we know this is a potential that will be very big for our company.

 

CEOCFO: Who manufactures your products?

Dr. Shane: Our products, the ultraviolet generators are manufactured in the United States. We own the intellectual rights to the industrial package of the ozone generators. They are made in the state of Washington, and our fogger is made in Ohio, again, by another US company.

 

CEOCFO: Will this eventually filter down to home use?

Dr. Shane: It will. Again, when we started our company we were focused only on the home use. In fact, we were first called The Ozone Man Incorporated and we were doing deep cleaning treatments at homes. However, when the global economic crisis hit everybody including the homeowner became more worried about keeping his or her home than what was living in the house. Therefore, we took an approach going through the commercial and the remediation industry. Those are the professionals that are now using the product and we are licensing it to them. In the near future we may have another group of individuals that will specifically only treat homes.

 

CEOCFO: With so much opportunity, how does TOMI stay focused?

Dr. Shane: We are focused, We have only a few products and understand the needs and application of those products. We know how to apply our products in a professional way. The direction we have taken is with the remediation industry and having them accept us as a standard versus us going into other industries. Our second will be in expanding it internationally using other types of investors. Healthcare speaks for itself, it is a passion of mine, and I think that when the standard of ours is accepted, hospital infections will be eliminated, in the operating suite as well as infectious disease rooms and general patient rooms along with patient common areas. That is our focus, the hospitality industry and other industries are approaching us.

 

CEOCFO: What is the financial picture like today for TOMI Environmental Solutions?

Dr. Shane: The financial picture is we are currently looking for a capital investment, which most young companies always need. We are very close in achieving our goals of the capital structure. We recently signed a licensing agreement with a large New York based remediation company that brings in recurring revenue to TOMI. We are going forward in expanding our licensing to other remediation companies in the continental US and other companies internationally. The picture is bright; however, we need to bring in that capital raise in order to achieve our goals in all these different by focused directions.

 

CEOCFO: As you approach remediation industry companies now, is your solution a service they have been actively looking for or is it something they are glad when it is offered?

Dr. Shane: I think the remediation industry is happy with our products and training. They wait for emergencies; they are the emergency response units in the country. When there is a hurricane, floods, tornadoes or fire, the remediators are the ones that are the first responders. However, we are offering them a financial vehicle to add to their business plan and their model that will allow them to bring in revenue without having to wait for an emergency. It is based on the recognition and what we are teaching them that are occurring in indoor environments, both in commercial and residential units. In just mold related issues, which is probably the next asbestos in the United States. We are able to offer them an ability to get a mold clearance test passed successfully by utilization of our products. Outside of the revenue, it also helps protect their employees and their staff from some of the issues that being exposed to mold may produce without the use of our ozone or activated hydroxyl radical products they were in danger before.

 

CEOCFO: So everybody wins with your products!

Dr. Shane: They do!

 

CEOCFO: Why should potential investors pay attention to TOMI Environmental Solutions, and what might they miss that should they know?

Dr. Shane: First, what investors should know is that we are a green global environmental technology company that has the solution for indoor air pollution and infectious disease control. Whether it is through our technicians or our licensees, we are able to provide indoor air decontamination remediation and surface disinfection of all commercial and residential structures. Included in this is a huge array of facilities, medical, hotels, prisons, airports, cruise ships, single family, and multi-residential homes. The environmental industry itself has shown a tremendous rise in demand for clean water, clean air and chemical-free treatment processes both globally and domestically and we offer the ability to do that. Our technology is three-dimensional, and it leaves clean air and a chemical-free treatment, so I would think that the investor would be able to understand the potential of taping a multibillion-dollar market place. With the infectious disease market if you just pick up the paper anywhere, any day in any country, you will read about the swine flu breakouts and various other types of infectious diseases and pathogens. TOMI Environmental Solutions has the answer to eliminate and clean up the environment along with reducing the amount of closure time, which is vitally important to businesses. Closing a business creates loss of income and has a negative reaction and financial impact on the global financial marketplace, At TOMI we are able to allow the building to open to the public quicker and prevent greater financial losses, again a win-win for everyone. In addition, the entire world is becoming much more aware of what infectious disease is and what those types of issues are doing to the economy. Therefore, I think investors would be very much interested in a company that has the potential of millions of dollars in revenues along with helping humanity.

 

CEOCFO: Final thoughts, what should people remember most about TOMI Environmental Solutions?

Dr. Shane: We have built a platform of outstanding technology that is very green and that we will be applying it in all types of indoor environments. Our results are phenomenally successful everywhere we have so far utilized our equipment or our suite of equipment. Our goal is to maintain a healthy enduring environment throughout the world utilizing our standards, technology and application as the method of performing the task of cleaning and decontaminating all surfaces and indoor air.

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Our technology allows them to eliminate the infectious disease epidemic that is currently killing 271 people a day. This equals to be more deaths then people dying from auto accidents, murders and colon cancer combined, along with costing the healthcare industry over $30 billion a year. Therefore, our trained remediatiors and our licensees using TOMI equipment are able to go ahead and reduce the liabilities to the hospitals that infectious disease cost. Healthcare associated infections are a huge problem and we have an answer that will become the standard in the treatment of hospital or healthcare acquired infections. - Dr. Halden S. Shane

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