Tue, Jun 17, 8:02 PM (27 days ago)
**Sonoma Pharmaceuticals, Inc. (SNOA) Annual Report Summary** **Financial Performance:** - **Revenue:** $14,288,000 (2025) vs. $12,735,000 (2024), a 12% increase. - **Net Loss:** $3,457,000 (2025) vs. $4,835,000 (2024). - **Gross Profit Margin:** 38% (2025) consistent with prior year. - **Operating Expenses:** $9,175,000 (2025) vs. $9,446,000 (2024). - **Cash and Cash Equivalents:** $5,374,000 (2025) vs. $3,128,000 (2024). **Strategic Overview:** - Focus on increasing revenues and progressing towards profitability. - Expansion of distribution network and customer base. - Introduction of new products in multiple markets. - Strengthening regulatory reach by seeking new approvals and clearances. - Investment in research and development for core HOCl technology. - Active pipeline of products and seeking new regulatory clearances. **Future Outlook:** - Continued expansion into new geographic markets. - Potential establishment of additional manufacturing facilities. - Focus on dermatology, eye care, wound care, podiatry, animal health care, and surface disinfectants. - Strategic partnerships and collaborations for market penetration. **Risk Factors:** - History of losses and substantial doubt about continuing as a going concern. - Dependence on third-party distributors and strategic partners. - Significant intercompany debt and tax liabilities. - Reliance on key customers for a significant portion of revenues. - Exposure to foreign currency exchange risks. - Competitive market with rapid technological change. - Regulatory approvals and compliance challenges. - Potential product liability claims and recalls. - Dependence on intellectual property protection. **Financial Condition:** - Accumulated deficit: $197,806,000 (2025). - Working capital: $8,552,000 (2025). - Net cash used in operating activities: $88,000 (2025). - Access to additional capital through public or private equity offerings, debt financings, or corporate collaborations. **Market Position Changes:** - Increased market share in Europe and Asia. - Strategic partnerships with leading health and beauty retailers. - Expansion of product lines and distribution agreements. - Successful transition to new EU Medical Device Regulation. - Continued focus on innovation and regulatory compliance. **Note:** Amounts are in thousands ($000s).