Sonoma Pharmaceuticals Reports Fiscal Year and Fourth Quarter 2024 Financial Results
Sonoma Pharmaceuticals (Nasdaq: SNOA) reported a 14% increase in Q4 2024 revenues to $3.4 million, driven by rising product sales across all territories except 'Rest of the World'. Gross profit margin improved by 3% year-over-year to 32%. Despite a 24% rise in operating expenses due to increased R&D, net loss decreased by 18% to $1.1 million. For FY 2024, revenues dropped 4.5% to $12.7 million due to lower service revenue but gross profit margin increased to 37%. Net loss for the year improved by 6% to $4.8 million. CEO Amy Trombly highlighted product innovation and market expansion as key growth drivers.
- Q4 2024 revenue increased by 14% to $3.4 million.
- Gross profit margin for Q4 2024 improved by 3% to 32%.
- Net loss for Q4 2024 improved by 18% to $1.1 million.
- FY 2024 gross profit margin increased to 37%.
- Net loss for FY 2024 improved by 6% to $4.8 million.
- Expanded distribution network and new product launches.
- FY 2024 revenue decreased by 4.5% to $12.7 million.
- Operating expenses for Q4 2024 increased by 24% to $2.5 million.
- FY 2024 operating expenses increased by 4% to $9.4 million.
- EBITDA loss for Q4 2024 increased by 28% to $1.3 million.
- EBITDA loss for FY 2024 increased by 10% to $4.0 million.
Insights
Examining Sonoma Pharmaceuticals' financial performance for Q4 2024 reveals a
For the fiscal year, the total revenues decreased by
These financial results paint a mixed picture. While there are positive indicators such as revenue growth in specific areas and improved gross margins, the increasing EBITDA loss and substantial net loss underscore ongoing challenges. Investors should weigh the potential for future profitability against the current financial strain.
Analyzing the business developments, Sonoma Pharmaceuticals has shown strategic growth through product expansion and new partnerships. The launch of Lumacyn Clarifying Mist, a skincare product targeting the consumer market, represents a significant move to diversify their product portfolio. Additionally, the expansion of the MicrocynAH product line into Menards stores and the development of Negative Pressure Wound Therapy Solutions align with the company's strategy to broaden its market reach.
However, the overall decline in fiscal year revenues suggests a need for stronger market penetration and consistent sales growth across all regions. The focus on new partnerships and expanded distribution networks could potentially drive revenue growth, but it remains to be seen how effectively these initiatives will translate into sustained profitability.
For retail investors, it's important to monitor how these new products and partnerships impact the bottom line over the next few quarters. The company's ability to balance expansion with cost control will be critical for achieving long-term success.
- Revenues increased
14% in Q4 2024 compared to Q4 2023 - Gross profit margin improved
3% in FY 2024 compared to FY 2023 - Net loss improved
18% in Q4 2024 compared to Q4 2023, and6% in FY 2024 compared to FY 2023
BOULDER, CO / ACCESSWIRE / June 17, 2024 / Sonoma Pharmaceuticals, Inc. (Nasdaq:SNOA),a global healthcare leader developing and producing patented Microcyn® technology-based stabilized hypochlorous acid (HOCl) products for a wide range of applications including wound, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, today announced financial results for fiscal year 2024 and the fourth quarter ended March 31, 2024.
"We are pleased to report continued product-related growth and reduced cash burn in both our fourth quarter and fiscal year 2024 results. Fueled by significant worldwide demand for our technology, we've expanded our revenue channels and developed new products over the past year," said Amy Trombly, CEO of Sonoma. "We remain focused on control of expenses and identifying new growth opportunities as we drive the business toward profitability."
Recent Business Highlights
Sonoma continued to grow its distribution network by introducing new products, entering into new partnerships, and working with existing partners to expand our markets:
- On May 9, 2024, we announced expansion of our MicrocynAH® animal health care products in the Menards® chain of home improvement stores in the United States, through our partner Compana Pet Brands.
- On April 9, 2024, we announced expansion of our Microcyn Negative Pressure Wound Therapy Solution products line, now available in 250mL, 450mL and 990mL sizes to meet the diverse needs of healthcare professionals and patients.
- On January 23, 2024, we launched LumacynTM Clarifying Mist, a new direct-to-consumer skincare product, in the United States. Lumacyn is an all-natural daily toner formulated with Microcyn technology to soothe the skin, reduce redness and irritation, and manage blemishes by reducing infection.
- A 2024 publication in the journal Neurourology and Urodynamics highlighted the potential for Microdox®, distributed by our partner, Te Arai BioFarma Ltd, in Australia and New Zealand, in the management of urinary tract infections, or UTIs, in children with neurogenic or non‐neurogenic bladder dysfunction.
Results for the Quarter Ended March 31, 2024
Total revenue of
During the quarter ended March 31, 2024, Sonoma reported cost of revenues of
Total operating expenses during the fourth quarter of fiscal year 2024 were
Net loss for the fourth quarter of fiscal year 2024 was
As of March 31, 2024, Sonoma had cash and cash equivalents of
Results for the Year Ended March 31, 2024
Total revenues for the year ended March 31, 2024 of
For the year ended March 31, 2024, Sonoma reported total revenues of
Total operating expenses during fiscal year 2024 were
Net loss during fiscal year 2024 was
About Sonoma Pharmaceuticals, Inc.
Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, nasal care, oral care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. The company's products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. The company's products are sold either directly or via partners in 55 countries worldwide and the company actively seeks new distribution partners. The company's principal office is in Boulder, Colorado, with manufacturing operations in Guadalajara, Mexico. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com . For partnership opportunities, please contact businessdevelopment@sonomapharma.com .
Forward-Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc. and its subsidiaries (the "company"). These forward-looking statements are identified by the use of words such as "continue," "reduce," "develop," "anticipate," "expect" and "expand," among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the company's products will not be as large as expected, the company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the company's cash needs or fund further development, as well as uncertainties relative to the Covid pandemic and economic development, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law.
Sonoma Pharmaceuticals™, Microcyn®, MicrocynAH ®, LumacynTM and Microdox® are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.
Media and Investor Contact:
Sonoma Pharmaceuticals, Inc.
ir@sonomapharma.com
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share amounts)
March 31, 2024 | March 31, 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,128 | $ | 3,820 | ||||
Accounts receivable, net | 2,898 | 2,572 | ||||||
Inventories, net | 2,719 | 2,858 | ||||||
Prepaid expenses and other current assets | 3,541 | 4,308 | ||||||
Current portion of deferred consideration, net of discount | 262 | 240 | ||||||
Total current assets | 12,548 | 13,798 | ||||||
Property and equipment, net | 365 | 488 | ||||||
Operating lease, right of use assets | 286 | 418 | ||||||
Deferred tax asset | 1,145 | 949 | ||||||
Deferred consideration, net of discount, less current portion | 330 | 505 | ||||||
Other assets | 66 | 73 | ||||||
Total assets | $ | 14,740 | $ | 16,231 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 607 | $ | 841 | ||||
Accrued expenses and other current liabilities | 2,113 | 2,029 | ||||||
Deferred revenue | 478 | 160 | ||||||
Short-term debt | 323 | 431 | ||||||
Operating lease liabilities, current portion | 198 | 256 | ||||||
Total current liabilities | 3,719 | 3,717 | ||||||
Deferred revenue, net of current portion | 87 | 140 | ||||||
Withholding tax payable | 4,710 | 4,235 | ||||||
Operating lease liabilities, less current portion | 87 | 162 | ||||||
Total liabilities | 8,603 | 8,254 | ||||||
Commitments and Contingencies | - | |||||||
Stockholders' Equity: | ||||||||
Convertible preferred stock, | - | - | ||||||
Common stock, | 2 | 5 | ||||||
Additional paid-in capital | 203,207 | 200,904 | ||||||
Accumulated deficit | (194,349 | ) | (189,514 | ) | ||||
Accumulated other comprehensive loss | (2,723 | ) | (3,418 | ) | ||||
Total stockholders' equity | 6,137 | 7,977 | ||||||
Total liabilities and stockholders' equity | $ | 14,740 | $ | 16,231 | ||||
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except per share amounts)
Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
Revenues | $ | 3,439 | $ | 3,014 | $ | 12,735 | $ | 13,272 | ||||||||
Cost of revenues | 2,348 | 2,150 | 7,990 | 8,795 | ||||||||||||
Gross profit | 1,091 | 864 | 4,745 | 4,477 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 409 | 201 | 1,871 | 207 | ||||||||||||
Selling, general and administrative | 2,091 | 1,810 | 7,575 | 8,840 | ||||||||||||
Total operating expenses | 2,500 | 2,011 | 9,446 | 9,047 | ||||||||||||
Loss from operations | (1,409 | ) | (1,147 | ) | (4,701 | ) | (4,570 | ) | ||||||||
Other income (expense), net | 50 | (292 | ) | (330 | ) | (614 | ) | |||||||||
Loss before income taxes | (1,359 | ) | (1,439 | ) | (5,031 | ) | (5,184 | ) | ||||||||
Income tax benefit | 292 | 131 | 196 | 33 | ||||||||||||
Net loss | $ | (1,067 | ) | $ | (1,308 | ) | $ | (4,835 | ) | $ | (5,151 | ) | ||||
Net loss per share: basic and diluted | $ | (0.07 | ) | $ | (0.31 | ) | $ | (0.53 | ) | $ | (1.52 | ) | ||||
Weighted-average number of shares: basic and diluted | 15,375 | 4,257 | 9,090 | 3,394 | ||||||||||||
Other comprehensive loss | ||||||||||||||||
Net loss | $ | (1,067 | ) | $ | (1,308 | ) | $ | (4,835 | ) | $ | (5,151 | ) | ||||
Foreign currency translation adjustments | 100 | 758 | 695 | 894 | ||||||||||||
Comprehensive loss | $ | (967 | ) | $ | (550 | ) | $ | (4,140 | ) | $ | (4,257 | ) | ||||
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands)
(Unaudited)
(1) Loss from operations minus non-cash expenses (EBITDA) is a non-GAAP financial measure. The Company defines operating loss minus non-cash expenses as GAAP reported operating loss minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of modifying the operating loss to reflect direct cash related transactions during the measurement period.
(2) Net loss minus non-cash and one-time expenses is a non-GAAP financial measure. The company defines net loss minus non-cash expenses as GAAP reported net loss minus depreciation and amortization, stock-based compensation, income taxes, and non-cash foreign exchange transaction losses. The company uses this measure for the purpose of modifying the net loss to reflect only those expenses to reflect direct cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.
(3) Operating expenses minus non-cash expenses is a non-GAAP financial measure. The Company defines operating expenses minus non-cash expenses as GAAP reported operating expenses minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of identifying total operating expenses involving cash transactions during the measurement period.
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
REVENUE SCHEDULES
(In thousands)
Three Months Ended March 31, | ||||||||||||||||
| 2024 | 2023 | $ Change | % Change | |||||||||||||
| (Unaudited) | ||||||||||||||||
United States | $ | 769 | $ | 825 | $ | (56 | ) | (7 | %) | |||||||
Europe | 1,293 | 934 | 359 | 38 | % | |||||||||||
Asia | 568 | 499 | 69 | 14 | % | |||||||||||
Latin America | 636 | 556 | 80 | 14 | % | |||||||||||
Rest of the World | 173 | 200 | (27 | ) | (14 | %) | ||||||||||
Total | $ | 3,439 | $ | 3,014 | $ | 425 | 14 | % | ||||||||
TAB;E
| Year Ended March 31, | ||||||||||||||||
| 2024 | 2023 | $ Change | % Change | |||||||||||||
United States | $ | 3,058 | $ | 3,428 | $ | (370 | ) | (11 | %) | |||||||
Europe | 4,781 | 4,051 | 730 | 18 | % | |||||||||||
Asia | 2,298 | 2,451 | (153 | ) | (6 | %) | ||||||||||
Latin America | 1,726 | 2,383 | (657 | ) | (28 | %) | ||||||||||
Rest of the World | 872 | 959 | (87 | ) | (9 | %) | ||||||||||
Total | $ | 12,735 | $ | 13,272 | $ | (537 | ) | (4 | %) | |||||||
SOURCE: Sonoma Pharmaceuticals, Inc.
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