BOULDER - 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.
Results for the Quarter Ended March 31, 2024
Total revenue of $3.4 million for the fourth quarter ended March 31, 2024 increased by $0.4 million, or 14%, from $3.0 million for the same period last year. This increase was due to increased sales in all territories, other than a slight decline in Rest of the World.
During the quarter ended March 31, 2024, Sonoma reported cost of revenues of $2.3 million resulting in total gross profit of $1.1 million, or 32% of total revenue, compared to a gross profit of $0.9 million, or 29% of total revenue in the same period last year.
Total operating expenses during the fourth quarter of fiscal year 2024 were $2.5 million, up 0.5 million, or 24%, as compared to the same period in the prior year. The primary reasons for this increase were additional research and development expenses related to product development and expanded regulatory efforts in the U.S. and Europe. Due to the improvement in gross margin of 3% compared to the prior year, the additional research and development expenses did not impact the net increase in total expenses for the quarter ended March 31, 2024.
Net loss for the fourth quarter of fiscal year 2024 was $1.1 million, down by $0.2 million, or 18%, compared to the same period last year. EBITDA loss for the fourth quarter of fiscal year 2024 of $1.3 million was up by $0.3 million, or 28%, compared to an EBITDA loss of $1.0 million for the same period last year.
As of March 31, 2024, Sonoma had cash and cash equivalents of $3.1 million.
Results for the Year Ended March 31, 2024
Total revenues for the year ended March 31, 2024 of $12.7 million decreased by $0.6 million as compared to $13.3 million for the year ended March 31, 2023. The decrease in revenue was driven primarily by a decline of $0.9 million in service revenue due to the sale of machinery to a customer in Latin America during the prior year, which management expects to be a one-time event. Product revenues increased 3% from the prior year primarily as a result of increases in Europe and Latin America offset by declines in the United States, Asia and Rest of the World.
For the year ended March 31, 2024, Sonoma reported total revenues of $12.7 million and total cost of revenues of $8.0 million, resulting in total gross profit of $4.7 million, or 37% of total revenues, compared to a gross profit of $4.5 million, or 34% of total revenues, for the same period in the prior year.
Total operating expenses during fiscal year 2024 were $9.4 million, up $0.4 million, or 4%, as compared to the same period in the prior year. The primary reasons for the increase were additional research and development expenses related to product development and expanded regulatory efforts in the U.S. and Europe. Due to the improvement in gross margin in fiscal year 2024 compared to the prior year, total expenses for the year decreased despite the additional research and development expenses.
Net loss during fiscal year 2024 was $4.8 million, down $0.3 million, or 6%, compared to the same period last year. EBITDA loss for fiscal year 2024 of $4.0 million was up $0.4 million, or 10%, compared to an EBITDA loss of $3.6 million for the same period last year.
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.
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.
Contact:
Email: ir@sonomapharma.com
SONOMA PHARMACEUTICALS, INC. 
