The first half of 2022 has delivered growth and improvement in our comparable year over year sales, customer sales order and improved financial operating results.

We have experienced some pullback in spending in healthcare and our smaller clients; however, we continue to see increased spending from our life sciences which is our largest vertical.

Our recent products developed and launched are as follows:

Each of these are structured to address the unique disinfection and decontamination needs of our customers worldwide regardless of industry requiring or requesting SteraMist® disinfection decontamination.

A brief overview of the target industries is presented below:

Our SteraPak release is an important factor for this market that we will increase the new member onboarding. Current members are showing interest in purchasing the SteraPak to expand their current SteraMist offerings.

Business Highlights and Recent Events

On May 19, 2022, we announced Dr. Halden Shane was to present at the H.C. Wainwright Investment Conference.

Registrations & Intellectual Property (IP):

Our financial position as of June 30, 2022 and December 31, 2022, respectively, was as follows:

During the six months ended June 30, 2022, our debt and liquidity positions were affected by the following:

Results of Operations for the Three and Six Months Ended June 30, 2022 Compared to the Three and Six Months Ended June 30, 2021

Professional fees are comprised mainly of legal, accounting, and financial consulting fees.

Depreciation and amortization were approximately $83,000 and $72,000 for the three months ended June 30, 2022 and 2021, respectively, representing an increase of $11,000, or 15%.

Selling expenses for the six months ended June 30, 2022 were approximately $907,000, as compared to $810,000 for the period ended June 30, 2021, representing an increase of approximately $97,000 or 12%. The increase in selling expenses is attributable to higher sales commissions and our increased tradeshow presence the current year period.

The research and development expenses is attributable to product development charges we incurred on the prior year period which did not reoccur in the current year period.

The decrease is due to the timing of certain projects that occurred in the prior year that did not occur in the same current year period.

Gain upon debt extinguishment of $415,000 in connection with the forgiveness of a loan payable.

Interest income was approximately $1,000 for the six months ended June 30, 2022 and 2021.

Interest expense was $0 and $1,000 for the six months ended June 30, 2022 and 2021, respectively.

For the six months ended June 30, 2022 and 2021, we incurred a loss from operations of ($1,523,000) and ($2,704,000), respectively. Cash used in operations for the six months ended June 30, 2022 and 2021, was $451,000 and $2,512,000, respectively.

A breakdown of our statement of cash flows for the six months ended June 30, 2022 and 2021 is provided below:

Cash used in investing activities for the six months ended June 30, 2022 and 2021 was $66,000 and 198,000, respectively.

Cash provided by financing activities for six months ended June 30 2022 and 2021 was $0.

· ramp up and expansion of our internal sales force and manufacturers'

Management has taken and will endeavor to continue to take a number of actions in order to improve our results of operations and the related cash flows generated from operations in order to strengthen our financial position, including the following items:

· expanding our label with the EPA to further our product registration

· continued expansion of our internal sales force and manufacturer

· continue research and development and add new products to our "Stera"

Critical Accounting Policies and Estimates

Product revenue includes sales from our standard and customized equipment, solution and accessories sold with our equipment. Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for those products.

Service and training revenue include sales from our high-level decontamination and service engagements, validation of our equipment and technology and customer training. Service revenue is recognized as the agreed upon services are rendered to our customers in an amount that reflects the consideration we expect to receive in exchange for those services.

Costs to Obtain a Contract with a Customer

Arrangements with Multiple Performance Obligations

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 that are observable, either directly or

Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. All these items were determined to be Level 1 fair value measurements.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximated fair value because of the short maturity of these instruments.

We expense costs to maintain certification to cost of goods sold as incurred.

We review inventory on an ongoing basis, considering factors such as deterioration and obsolescence. We record an allowance for estimated losses when the facts and circumstances indicate that particular inventories may not be usable.

Long-Lived Assets Including Acquired Intangible Assets

Recently issued accounting pronouncements not yet adopted

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