10-Q · May 8, 2026
TOMZ reported disappointing Q4 2026 results with revenue of approximately $1.65 million, a 5% increase year-over-year but significantly below analyst expectations. The gross margin declined to 50% from 60% in the prior…
Earnings analysis · 10-Q
TOMZ earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
The supplied 10-Q extract does not include the current-quarter income statement, balance sheet, cash-flow statement, or segment disclosures, so revenue, margins, EPS, cash, debt, working-capital trends, and free cash…
Read full summary
The supplied 10-Q extract does not include the current-quarter income statement, balance sheet, cash-flow statement, or segment disclosures, so revenue, margins, EPS, cash, debt, working-capital trends, and free cash flow cannot be quantified from the filing text provided. The principal developments are an unremediated material weakness as of June 30, 2026, a Nasdaq delisting proceeding with stockholders' equity of $1,428,436 versus a $2,500,000 requirement, and a proposed Merger targeted for Q3 2026 that requires at least $10,000,000 of financing. The August 12 amendment lowering the 2023 Notes conversion price from $3.75 to $1.50 per share adds potential dilution.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Control remediation actions underway
Management reported remediation actions during fiscal 2026, including a 13-week rolling cash-flow forecast, daily bank reconciliations, monthly physical inventory counts, and weekly executive finance meetings.
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Merger targeted for Q3 2026
The proposed Merger is expected to close during the third quarter of 2026, subject to satisfaction or waiver of closing conditions.
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Convertible note price amended
On August 12, 2026, the conversion price of the 2023 Notes was amended from $3.75 to $1.50 per share, subject to adjustment under the note terms.
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Financial statements deemed fairly presented
The company stated that its financial statements present fairly, in all material respects, its financial position, results of operations, and cash flows under U.S. GAAP, despite the identified control deficiencies.
What to watch
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Unremediated internal-control weakness
The company disclosed that its disclosure controls were not effective as of June 30, 2026 because a material weakness remained unremediated. The weaknesses include limited finance and accounting resources with sufficient U.S. GAAP expertise and ineffective or absent review and monitoring procedures.
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Nasdaq delisting risk
As of June 30, 2026, stockholders' equity was $1,428,436 versus Nasdaq's $2,500,000 minimum equity requirement. The company also failed to regain compliance with the $1.00 minimum bid-price requirement by May 18, 2026 and is subject to a Nasdaq delisting proceeding.
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Merger financing and closing risk
Completion of the proposed Merger is conditioned on a Financing Transaction producing at least $10,000,000 of gross proceeds before closing. The company states that closing is expected during the third quarter of 2026 but cannot assure completion.
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Delisting could terminate merger
Carbonium may terminate the Merger Agreement if the company's common stock is delisted from Nasdaq before closing, creating a direct link between the listing deficiency and the proposed transaction.
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Higher potential equity dilution
The 2023 Notes' conversion price was reduced from $3.75 to $1.50 per share on August 12, 2026, which may increase potential share dilution if the notes are converted.
Management's outlook
The filing does not provide new numeric revenue or EPS guidance. The prior July 29, 2026 business update reaffirmed fiscal 2026 revenue of at least $12.0 million; the 10-Q states that the proposed Merger is expected to close during the third quarter of 2026, subject to closing conditions. Merger completion is also conditioned on a Financing Transaction generating gross proceeds of at least $10.0 million.
Earlier filings 4
10-K · March 31, 2026
TOMI (TOMZ) describes 2025 as a year of commercial progress—new product launches, OEM partnerships and validated use cases—despite a 27% revenue decline. Financially the company improved gross margin to 54.6% and…
10-Q · November 14, 2025
TOMI reported revenue of $2,012,000 for Q3 2025 (down 21% YoY, down $530,000) and a net loss of $450,000 (basic EPS $(0.02)). Gross margin remained stable at 61% while operating loss widened to $(321,000) (≈ -16%…
10-Q · August 14, 2025
TOMI reported Q2 revenue of $1,031,000, a 66% decline from $3,013,000 in Q2 2024, producing a GAAP net loss of $1,238,000 (EPS -$0.06) and an operating loss of $1,133,000. Gross margins improved to 66% (from 62% a year…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.