Sonoma Pharmaceuticals reports 1Q 2022 results

Sonoma Pharmaceuticals, Inc, a global healthcare leader developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye, oral and, nasal care, disinfectant use and dermatological conditions today announced financial results for its first fiscal quarter ended June 30, 2021.

“This quarter marks the transition from having a dedicated dermatology sales force for our prescription products to a distribution model,” said Amy Trombly, CEO of Sonoma Pharmaceuticals. She continued, “We had some remaining expenses related to the transition in the first quarter, however, we remain confident that this transaction was critical to the Company’s success by transitioning our prescription business to a model where we believe it can contribute profitably to our overall business. As we complete the transition of the sales portion of the prescription business to EMC, we expect to shift our focus to our growing, successful core business.”

Results for the Quarter Ended June 30, 2021
Revenues for the quarter ended June 30, 2021, of $3.7 million decreased by $2.1 million, or 36%, as compared to $5.8 million for the same period last year, largely as the result of decreased sales in Latin America as a result of the termination of the Invekra agreement in October 2020. The contract required Sonoma to manufacture product for Invekra at close to its costs. Since the contract with Invekra ended, Sonoma has continued to receive a lower volume of orders but Sonoma can now charge market rates resulting in stronger margins. Revenues in Europe and Rest of World also decreased by 16% due to large start-up orders made by Brill during the quarter ended June 30, 2020.

During the quarter ended June 30, 2021, Sonoma reported revenues of $3.7 million and cost of revenues of $2.2 million resulting in gross profit of $1.5 million, or 39% of revenue, compared to a gross profit of $2.3 million, or 39% of revenue in the same period last year.

Total operating expenses during the first quarter of fiscal year 2022 were $2.4 million, down $0.5 million, or 19%, as compared to the same period in the prior year. This decrease in operating expenses was primarily due to lower employee costs resulting from a reduction in headcount in sales and marketing partially offset by increased insurance costs and consulting expense.

Net loss from continuing operations for the quarter was $1.1 million, up by $391,000, or 55% when compared to loss from continuing operations of $709,000 for the three months ended June 30, 2020.

Net loss for the quarter was $1.1 million, up by $391,000, or 55% when compared to a net loss from continuing operations of $709,000 for the quarter ended June 30, 2020. Net loss for the quarter was $1.1 million, up by $1.3 million, compared to the same period last year. The increase in net loss was primarily due to the sale of our Micromed business unit last year and the impact on discontinued operations and to a lesser extent losses from operations. EBITDAS loss for the first quarter of fiscal 2021 of $0.8 million, was up by $0.2 million, or 25%, compared to an EBITDAS loss of $0.6 million for the same period last year.

As of June 30, 2021, Sonoma had cash and cash equivalents of $2.8 million. Business Wire