-
International sales increased by 18% in the six months ended September 30, 2022 compared to the same period prior year
-
Gross profit percentage continues in order to trend upwards with the quarter ended Sept 30, 2022, coming in at 40% compared to 33% same period prior year
-
Operating loss for the quarter ended September 30, 2022 improved 24% or $233, 000 compared to same period prior year
BOULDER, CO / ACCESSWIRE / November 14, 2022 / Sonoma Pharmaceuticals, Inc. (Nasdaq: SNOA), a global healthcare leader developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, nasal care, oral care and dermatological conditions, today announced financial results with regard to its second fiscal quarter and 6 months ended September 30, 2022.
“We are pleased that our second fraction results show continued progress toward profitability and the successful expansion of our business, ” said Amy Trombly, CEO associated with Sonoma. “While our U. S. revenues are still impacted by the particular conversion of our prescription dermatology company to a now profitable distribution model, we are confident that this transition will generate a positive impact on our future results and allow us to focus on higher margin revenue streams. Increased sales inside both Europe and Asia reflect the success of our robust international business, and we continue to launch new products, add distribution partners in the Oughout. S. plus internationally, and grow plus diversify our own existing distributor relationships. ”
Business Highlights
Sonoma continued to expand its company by launching new items, building new partnerships and adding to its global regulatory clearances.
-
On October 27, 2022, Sonoma launched two new dermatological products regarding over-the-counter use in the United States. Reliefacyn® Advanced Itch-Burn-Rash-Pain Relief Hydrogel is the new direct to consumer version associated with a product previously only available by prescription to alleviate symptoms such as red bumps, rashes, shallow skin fissures, peeling, and symptoms of eczema/atopic dermatitis. Rejuvacyn® Advanced Skin Repair Cooling Mist is intended for over-the-counter management of minor pores and skin irritations following cosmetic procedures as well as daily epidermis health and hydration. Both products are available for distribution and can be purchased directly on our webite at https://sonomapharma.com/shop-now/ .
-
We continued in order to expand the U. S. distributor network by granting Loma Lux Laboratories a non-exclusive right to distribute our products intended for pain and itch relief under a private label. Information about Loma Lux Laboratories can be found at lomalux. com . In addition, we expanded our online presence simply by partnering with Beauty Bridge, a curated beauty plus wellness marketplace, which began selling our own Regenacyn® Advanced Scar Gel and Ocucyn® Eyelid & Eyelash Cleanser products upon its website. Additional information regarding Beauty Link can be found at www.beautybridge.com .
-
In September 2022, our partner Te Arai BioFarma received regulatory approval to market and sell the Microdacyn plus Microdacyn Hydrogel products in Taiwan, increasing the regulating portfolio of our Microcyn® Technology.
Results for the Quarter Ended September thirty, 2022
Revenues to get the one fourth ended Sept 30, 2022 of $3. 3 million decreased by $0. 4 million, or even 11%, as compared to $3. 7 million for the same period last year. Increased product sales in Europe reflected an increase in demand for our wound care products as well as the introduction associated with several new releases. Decreased revenues in the particular United States were primarily the result of the conversion of our doctor prescribed dermatology business into the distribution relationship and a decline in sales in our otc animal health care products that were partially offset by a good increase within wound treatment and prescribed animal wellness care product sales. Latin America revenue decreased due to a decline in manufacturing for one of our own customers. Sonoma’s revenues tend to be choppy when viewed on a quarterly basis due to customers placing larger but less frequent orders to benefit from quantity discounts and reduced shipping costs.
For the quarter finished September 30, 2022, Sonoma reported income of $3. 3 mil and cost of revenues associated with $2. 0 million, resulting in gross profit of $1. 3 million, or 40% of revenue, compared in order to a gross profit of $1. 2 million, or 33% associated with revenue, pertaining to the exact same period last year. Gross margins increased by 7% for the particular quarter ended September thirty, 2022 whenever compared to the same exact period this past year as a result of increased production in our Mexico manufacturing facility, partially offset simply by a decrease in margins in the Netherlands because a result of product mix plus shipping costs to European countries.
Total operating expenses during the second quarter of fiscal year 2023 were $2. 1 mil, down $0. 1 million, or 5%, when compared to $2. 2 million throughout the equivalent period in the earlier year. All of us continue in order to tightly manage expenses across all of our operations.
Net reduction before income tax for the quarter was $0. 9 million, in comparison to a net loss associated with $0. 1 million meant for the equal period final year due primarily to the one-time event last 12 months of forgiveness of our own PPP loan of $723, 500. EBITDAS loss for that one fourth ended September 30, 2022 of $0. 6 mil decreased $0. 3 million, when compared with an EBITDAS reduction of $0. 9 mil for the particular same time period last yr.
Outcomes for your Six Months Finished September 30, 2022
Revenue associated with $7. 3 million to the six months ended Sept 30, 2022 decreased by $0. one million, or even 2%, from $7. four million designed for the same period last year. Revenues increased within Latin The united states, Europe and Asia. Decreased sales in the United States were due to the conversion of the prescription dermatology company into a distribution relationship plus a drop in product sales of the over-the-counter animal health care items that were partly offset simply by an increase in wound care and prescription pet healthcare item sales. The decrease in Rest of World revenue has been because of reduced disinfectant sales in the Middle East that was partially offset by increased sales within New Zealand.
For that six months finished September thirty, 2022, Sonoma reported profits of $7. 3 million and price of revenues of $4. 5 million, leading to gross income of $2. 8 mil, or 38% of earnings, compared to a gross profit associated with $2. seven million or 36% or even revenues in the same period a year ago. The increase in gross profit perimeter for any 6 months ended September 30, 2022 was primarily because of the sale of machinery in order to a customer in Latin America, which management expects to be an one-time event.
Total operating expenses during the half a year finished September thirty, 2022 associated with $4. 4 million decreased by $0. 2 million, or 4%, when compared to $4. 6 mil through the exact same period last year.
Net loss before taxes with the six weeks ended September 30, 2022 was $1. 9 thousand, in comparison with the net loss before taxes of $1. 2 million for the similar period in prior year, due primarily to the one time event recently of forgiveness of our PPP loan of $723, 000. EBITDAS loss just for the few months ended Sept 30, 2022 of $1. 2 mil decreased $0. 5 zillion, compared in order to an EBITDAS loss of $1. 7 million for the same time period not too long ago.
About Sonoma Pharmaceuticals, Incorporation.
Sonoma Pharmaceuticals is a global healthcare leader for building and generating stabilized hypochlorous acid (HOCl) products for a wide range of programs, including injury care, animal health care, eye treatment, nasal care, oral care, and dermatological conditions. The particular company’s products reduce infections, itch, pain, scarring plus harmful inflammatory responses in a safe and effective manner. In-vitro plus clinical studies of hypochlorous acid (HOCl) show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. Sonoma’s stabilized HOCl immediately relieves itch and pain, kills pathogens plus breaks down biofilm, does not sting or irritate skin and oxygenates the particular cells in the area treated assisting the body in its natural healing process. The company’s products are sold either directly or via partners inside 55 countries worldwide plus the company actively seeks new distribution partners. The company’s principal office is in Boulder, Colorado, with production operations inside Latin America. European marketing and sales are headquartered in Roermond, Netherlands. More information can end up being found in www.sonomapharma.com . For partnership opportunities, please contact
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 from 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 the subsidiaries (the “company”). These forward-looking statements are identified by the use of words such as “expect, ” “continue, ” “believe” and “expand, ” among others. Forward-looking statements in this press release are subject to certain risks plus uncertainties inherent in the company’s business that could cause actual outcomes to vary, including this kind of 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 carrier’s patents and patent apps may be challenged, invalidated or circumvented simply by its competitors, the available market for the purpose of the industry’s products will not be as large as expected, the company’s products will not be able to penetrate one or even more targeted markets, revenues will not really be sufficient to meet you can actually cash needs, fund further development, as well as uncertainties relative to the particular Covid pandemic and economic development, varying product formulations and a multitude of diverse regulatory plus marketing requirements in different countries and municipalities, plus other risks detailed from time to time in the company’s filings using the Investments and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law. Sonoma Pharmaceuticals™ and Microcyn® are trademarks or registered trademarks associated with Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.
Media and Investor Contact:
Sonoma Pharmaceuticals, Incorporation.
[email protected] com
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, other than share amounts)
|
September 30, 2022 |
March 31, 2022 |
|||||||
|
ASSETS |
(Unaudited) |
|||||||
|
Current assets: |
||||||||
|
Cash and money equivalents |
$ |
3, 351 |
$ |
7, 396 |
||||
|
Accounts receivable, net |
2, 487 |
2, 407 |
||||||
|
Inventories, net |
3, 025 |
2, 663 |
||||||
|
Prepaid costs and other current assets |
3, 315 |
3, 746 |
||||||
|
Current portion of deferred consideration, internet of discount |
215 |
218 |
||||||
|
Total current assets |
12, 393 |
16, 430 |
||||||
|
Property and equipment, net |
305 |
320 |
||||||
|
Operating lease, right of use assets |
530 |
559 |
||||||
|
Deferred tax asset |
957 |
829 |
||||||
|
Deferred consideration, net of discount, less current part |
539 |
630 |
||||||
|
Other property |
238 |
77 |
||||||
|
Total resources |
$ |
14, 962 |
dollar |
18, 845 |
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
1, 074 |
$ |
1, 641 |
||||
|
Accrued expenditures and other present liabilities |
one, 789 |
1, 843 |
||||||
|
Deferred revenue |
100 |
1, 223 |
||||||
|
Deferred income Invekra |
53 |
54 |
||||||
|
Present portion of debt-PPP |
– |
120 |
||||||
|
Short-term debt |
229 |
688 |
||||||
|
Operating lease liabilities |
282 |
250 |
||||||
|
Complete current financial obligations |
3, 527 |
5, 819 |
||||||
|
Long-term deferred revenue Invekra |
138 |
182 |
||||||
|
Long-term financial debt |
15 |
— |
||||||
|
Withholding tax payable |
four, 013 |
3, 838 |
||||||
|
Operating lease liabilities, less current portion |
248 |
309 |
||||||
|
Overall liabilities |
dollar |
7, 941 |
$ |
10, 148 |
||||
|
Commitments and Contingencies |
||||||||
|
Stockholders’ Equity |
||||||||
|
Convertible preferred stock, $0. 0001 par value; 714, 286 shares authorized from September thirty, 2022 plus March 31, 2022, respectively, no stocks issued and outstanding with September 30, 2022 plus March thirty-one, 2022, correspondingly |
– |
: |
||||||
|
Common stock, $0. 0001 par value; 24, 000, 000 gives authorized on September thirty, 2022 and March 31, 2022, respectively, 3, 102, 972 plus 3, one hundred, 937 shares issued and outstanding at September 30, 2022 plus March thirty-one, 2022, correspondingly |
2 |
two |
||||||
|
Additional paid-in capital |
197, 697 |
197, 370 |
||||||
|
Accumulated deficit |
(186, 267 |
) |
(184, 363 |
) |
||||
|
Gathered other comprehensive loss |
(4, 411 |
) |
(4, 312 |
) |
||||
|
Total stockholders’ equity |
7, 021 |
8, 697 |
||||||
|
Total financial obligations and stockholders’ equity |
$ |
14, 962 |
$ |
18, 845 |
||||
SONOMA PHARMACEUTICALS, INCORPORATION. AND SUBSIDIARIES
Compacted Consolidated Claims of Comprehensive Income (Loss)
(In thousands, except per share amounts)
(Unaudited)
|
Three Months Ended September thirty, |
Six Months Finished September 30, |
|||||||||||||||
|
2022 |
2021 |
2022 |
2021 |
|||||||||||||
|
Income |
$ |
3, 331 |
dollar |
3, 744 |
$ |
seven, 314 |
$ |
7, 428 |
||||||||
|
Cost of income |
1, 995 |
2, 503 |
4, 532 |
4, 734 |
||||||||||||
|
Gross revenue |
1, 336 |
1, 241 |
2, 782 |
2, 694 |
||||||||||||
|
Operating expenses |
||||||||||||||||
|
Research and development |
– |
10 |
6 |
95 |
||||||||||||
|
Selling, general and administrative |
2, 067 |
two, 195 |
4, 362 |
four, 468 |
||||||||||||
|
Total operating costs |
2, 067 |
2, 205 |
4, 368 |
4, 563 |
||||||||||||
|
Loss through operations |
(731 |
) |
(964 |
) |
(1, 586 |
) |
(1, 869 |
) |
||||||||
|
Interest income (expense), net |
a few |
(4 |
) |
3 |
(5 |
) |
||||||||||
|
Other income (expense), net |
(189 |
) |
723 |
(256 |
) |
531 |
||||||||||
|
Gain on sale associated with assets |
— |
150 |
: |
150 |
||||||||||||
|
Loss before earnings taxes |
(917 |
) |
(95 |
) |
(1, 839 |
) |
(1, 193 |
) |
||||||||
|
Income tax benefit (expense) |
(100 |
) |
(5 |
) |
(65 |
) |
(5 |
) |
||||||||
|
Net reduction |
$ |
(1, 017 |
) |
$ |
(100 |
) |
dollar |
(1, 904 |
) |
$ |
(1, 198 |
) |
||||
|
Internet loss for each share: basic |
$ |
(0. 33 |
) |
$ |
(0. 04 |
) |
$ |
(0. 61 |
) |
$ |
(0. 54 |
) |
||||
|
Net loss per share: diluted |
dollar |
(0. 33 |
) |
$ |
(0. 04 |
) |
dollar |
(0. 61 |
) |
$ |
(0. 54 |
) |
||||
|
Weighted-average number of shares: fundamental |
3, 101 |
2, 344 |
3, tips |
2, 219 |
||||||||||||
|
Weighted-average number of stocks: diluted |
three or more, 101 |
2, 344 |
a few, 101 |
two, 219 |
||||||||||||
|
Some other comprehensive reduction |
||||||||||||||||
|
Net loss |
$ |
(1, 017 |
) |
$ |
(100 |
) |
dollar |
(1, 904 |
) |
$ |
(1, 198 |
) |
||||
|
Foreign currency translation adjustments |
(34 |
) |
(234 |
) |
(99 |
) |
73 |
|||||||||
|
Extensive loss |
dollar |
(1, 051 |
) |
$ |
(334 |
) |
$ |
(2, 003 |
) |
$ |
(1, 125 |
) |
||||
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands)
(Unaudited)
|
Three Months Ended September 30, |
6 Months Ended September thirty, |
|||||||||||||||
|
2022 |
2021 |
2022 |
2021 |
|||||||||||||
|
(1) Reduction from procedures minus non-cash expenses EBITDAS loss: |
||||||||||||||||
|
GAAP working loss while reported |
dollar |
(731 |
) |
$ |
(964 |
) |
$ |
(1, 586 |
) |
dollar |
(1, 869 |
) |
||||
|
Non-cash adjustments: |
||||||||||||||||
|
Stock-based compensation |
113 |
55 |
327 |
114 |
||||||||||||
|
Depreciation and amortization |
29 |
51 |
59 |
a hundred |
||||||||||||
|
Non-GAAP revenue (loss) from operations minus non-cash expenses EBITDAS income (loss) |
$ |
(589 |
) |
$ |
(858 |
) |
dollar |
(1, 200 |
) |
$ |
(1, 655 |
) |
||||
|
(2) Net loss minus non-cash plus one-time expenditures: |
||||||||||||||||
|
GAAP net earnings (loss) since reported |
dollar |
(1, 017 |
) |
$ |
(100 |
) |
$ |
(1, 904 |
) |
$ |
(1, 198 |
) |
||||
|
Non-cash modifications: |
||||||||||||||||
|
Stock-based compensation |
113 |
55 |
327 |
114 |
||||||||||||
|
Non-cash foreign exchange transaction losses |
189 |
– |
256 |
192 |
||||||||||||
|
Income taxes |
100 |
five |
65 |
5 |
||||||||||||
|
Forgiveness associated with PPP mortgage |
– |
(723 |
) |
– |
(723 |
) |
||||||||||
|
Depreciation and amortization |
29 |
51 |
59 |
100 |
||||||||||||
|
Non-GAAP net revenue (loss) take away non-cash costs |
$ |
(586 |
) |
dollar |
(712 |
) |
$ |
(1, 197 |
) |
$ |
(1, 510 |
) |
||||
|
(3) Operating expenses minus non-cash expenses |
||||||||||||||||
|
GAAP operating expenses like reported |
$ |
2, 067 |
$ |
2, 205 |
dollar |
4, 368 |
$ |
4, 563 |
||||||||
|
Non-cash adjustments: |
||||||||||||||||
|
Stock-based compensation |
(113 |
) |
(55 |
) |
(327 |
) |
(114 |
) |
||||||||
|
Devaluation and amount |
(29 |
) |
(51 |
) |
(59 |
) |
(100 |
) |
||||||||
|
Non-GAAP working expenses without non-cash costs |
$ |
one, 925 |
$ |
2, 099 |
$ |
three or more, 982 |
dollar |
4, 349 |
||||||||
-
Income (loss) from continuing operations minus non-cash expenses (EBITDAS) will be a non-GAAP financial measure. The organization defines operating income (loss) minus non-cash expenses seeing that GAAP reported operating income (loss) less operating depreciation and amortization, and working stock-based payment. The company uses this gauge for the purpose of modifying the operating loss to reflect immediate cash related transactions during the measurement period.
-
Net income (loss) minus non-cash and one time expenses is a non-GAAP monetary measure. The particular company defines net earnings (loss) take away non-cash expenditures as GAAP reported online income (loss) minus devaluation and amount, stock-based settlement, forgiveness of PPP loan and non-cash foreign exchange transaction losses. The organization uses this measure with regards to changing the net reduction to reflect only those expenses in order to reflect direct cash transactions in the dimension period.
-
Working expenses minus non-cash expenses is a non-GAAP financial determine. The business identifies operating expenses minus non-cash expenses as GAAP documented operating costs minus working depreciation plus amortization, and operating stock-based compensation. The company utilizes this calculate for the particular purpose associated with identifying total operating expenditures involving cash transactions throughout the measurement period.
SONOMA PHARMACEUTICALS, INC. PLUS SUBSIDIARIES
PRODUCT RELATED REVENUE SCHEDULES
(In thousands)
(Unaudited)
The following table presents the provider’s disaggregated product revenues by geographic region:
|
3 months Finished September 30, |
||||||||||||||||
|
(In thousands) |
2022 |
2021 |
$ Change |
% Change |
||||||||||||
|
Usa States |
$ |
973 |
dollar |
1, 347 |
$ |
(374 |
) |
(28 |
%) |
|||||||
|
Europe |
1, 170 |
919 |
251 |
27 |
% |
|||||||||||
|
Asia |
330 |
437 |
(107 |
) |
(24 |
%) |
||||||||||
|
Latina America |
394 |
518 |
(124 |
) |
(24 |
%) |
||||||||||
|
Rest of the World |
464 |
523 |
(59 |
) |
(11 |
%) |
||||||||||
|
Total |
$ |
3, 331 |
$ |
3, 744 |
$ |
(413 |
) |
(11 |
%) |
|||||||
|
Six Months Ended September 30, |
||||||||||||||||
|
(In thousands) |
2022 |
2021 |
dollar Change |
% Change |
||||||||||||
|
United States |
$ |
1, 842 |
$ |
2, 939 |
dollar |
(1, 097 |
) |
(37 |
%) |
|||||||
|
Europe |
2, 012 |
1, 688 |
324 |
19 |
% |
|||||||||||
|
Asia |
1, 155 |
638 |
517 |
81 |
percent |
|||||||||||
|
Latin America |
1, 444 |
1, 083 |
361 |
33 |
% |
|||||||||||
|
Rest of the World |
861 |
1, 080 |
(219 |
) |
(20 |
%) |
||||||||||
|
Total |
$ |
7, 314 |
$ |
7, 428 |
dollar |
(114 |
) |
(2 |
%) |
|||||||
SOURCE: Sonoma Pharmaceuticals, Inc.
View source version on accesswire. com:
https://www.accesswire.com/725629/Sonoma-Pharmaceuticals-Reports-Second-Quarter-2023-Financial-Results