Sonoma Pharmaceuticals, Inc. (Nasdaq: SNOA), a specialty
pharmaceutical company dedicated to identifying, developing and
commercializing unique, differentiated therapies to millions of
patients living with chronic skin conditions, yesterday announced
financial results for the second quarter and six months ended
September 30, 2019.
“During the quarter, we continued to direct our efforts to
building a more sustainable company focused on areas of potential
growth and the bottom line while reducing expenses by 31% and our
net loss by 57%. As we look forward, we will continue to
examine the best ways to build upon the changes we have made to
date, while maintaining our objective on improving overall
profitability of our business segments,” said Amy Trombly, Interim
CEO of Sonoma Pharmaceuticals.
Results for the Quarter Ended September 30,
2019
Total revenue of $4,968,000 for the second quarter ended
September 30, 2019, increased by $29,000, or 1%, from $4,939,000
for the same period last year. Product revenues of $4,712,000
million for the second quarter ended September 30, 2019, were up by
2%, or $77,000, when compared to $4,635,000 in the same period last
year. This increase was primarily the result of growth in product
revenue of $358,000, or 30%, in Europe and Rest of World, offset by
a decrease of $219,000, or 9% in the United States, and a decrease
of product revenue of $62,000, or 6%, in Latin America.
For the quarter ended September 30, 2019, Sonoma reported total
revenues of $4,968,000 and total cost of revenues of $2,674,000,
resulting in total gross profit of $2,294,000 or 46% of total
revenues, compared to a gross profit of $2,427,000 or 49% of total
revenues, for the same period in the prior year. Product revenues
were $4,712,000 and cost of product revenues were $2,551,000,
resulting in product gross profit of $2,161,000, or 46% of product
revenues, compared to product gross profit of $2,322,000, or 50% of
product revenues, for the same period in the prior year. The
decrease in gross profit as a percentage of product revenues was
primarily due to product mix in the current period.
Total operating expenses during the second quarter of fiscal
year 2020 were $3,496,000, down $1,583,000, or 31%, as compared to
the same period in the prior year. The decrease in total operating
expenses was primarily the result of certain cost savings measures
implemented during fiscal year 2019 including a reduction in
headcount.
Net loss for the three months ended September 30, 2019 of
$1,203,000 decreased by $1,617,000, or 57%, when compared to net
loss of $2,820,000 for the three months ended September 30, 2018.
The decrease in net loss is due to a decrease in operating loss of
$1,450,000 as a result a decrease in operating expenses of
$1,583,000 primarily due to certain cost savings measures
implemented during the latter part of fiscal year 2019. EBITDA loss
for the three months ended September 30, 2019 of $1,001,000, was
down $949,000, or 49%, compared to an EBITDA loss of $1,950,000 for
the same period last year.
As of September 30, 2019, Sonoma had cash and
cash equivalents of $3,232,000.
Results for the Six Months Ended September 30,
2019
Total revenues for the six months ended September 30, 2019 of
$9,679,000 increased by $371,000, or 4%, as compared to $9,308,000
for the six months ended September 30, 2018. Product revenues for
the six months ended September 30, 2019 of $9,097,000 increased by
$367,000, or 4%, as compared to $8,730,000 for the six months ended
September 30, 2018. This increase was primarily the result of
growth in product revenue of $557,000, or 25%, in Europe and the
Rest of the World, an increase of product revenue of $297,000, or
7%, in the United States and a decrease of product revenue of
$487,000 or 23% in Latin America.
For the six months ended September 30, 2019, Sonoma reported
total revenues of $9,679,000 and total cost of revenues of
$5,018,000, resulting in total gross profit of $4,661,000 or 48% of
total revenues, compared to a gross profit of $4,158,000 or 45% of
total revenues, for the same period in the prior year.
Net loss for the six months ended September 30, 2019 of $488,000
decreased by $5,790,000, when compared to net loss of $6,278,000
for the six months ended September 30, 2018. The decrease in net
loss is due to a decrease in operating loss of $3,272,000 as a
result of an increase in gross profit of $503,000 and a decrease in
operating expenses of $2,769,000 primarily due to certain cost
savings measures implemented during the latter part of fiscal year
2019. Additionally, for the six months ended September 30, 2019,
Sonoma reported income related to the sale of certain assets to
Petagon in the amount of $2,472,000. EBITDA loss for the six
months ended September 30, 2019 of $2,363,000, was down $2,671,000,
or 53%, compared to an EBITDA loss of $5,034,000 for the same
period last year.
About Sonoma Pharmaceuticals, Inc.
Sonoma Pharmaceuticals is a specialty pharmaceutical company
dedicated to identifying, developing and commercializing unique,
differentiated therapies to millions of patients living with
chronic skin conditions. Sonoma offers early-intervention relief
with virtually no side-effects or contraindications. The company
believes its products, which are sold throughout the United States
and internationally, have improved patient outcomes for more than
six million patients by treating and reducing certain skin diseases
including acne, atopic dermatitis, scarring, infections, itch, pain
and harmful inflammatory responses. Sonoma’s vision is to be a
catalyst for improved care and increased access for all
patients.The company's headquarters are in Petaluma, California,
with manufacturing operations in the United States and Latin
America. European marketing and sales are headquartered in
Roermond, Netherlands. More information can be found at
www.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,” 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, fund further development and
clinical studies, as well as uncertainties relative to 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™ is a trademark or registered trademark
of Sonoma Pharmaceuticals, Inc. All other trademarks and service
marks are the property of their respective owners.
SONOMA PHARMACEUTICALS, INC. AND
SUBSIDIARIESCondensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts) (Unaudited)
|
|
September 30, |
|
|
March 31, |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,232 |
|
|
|
$ |
3,689 |
|
Accounts receivable, net |
|
|
4,735 |
|
|
|
|
3,481 |
|
Inventories |
|
|
3,098 |
|
|
|
|
3,409 |
|
Prepaid expenses and other current assets |
|
|
2,025 |
|
|
|
|
1,694 |
|
Current portion of deferred consideration, net of discount |
|
|
220 |
|
|
|
|
223 |
|
Total current assets |
|
|
13,310 |
|
|
|
|
12,496 |
|
Operating lease right-of-use assets |
|
|
1,178 |
|
|
|
|
– |
|
Property and equipment, net |
|
|
526 |
|
|
|
|
727 |
|
Deferred consideration, net of discount, less current portion |
|
|
1,018 |
|
|
|
|
1,103 |
|
Other assets |
|
|
113 |
|
|
|
|
122 |
|
Total assets |
|
$ |
16,145 |
|
|
|
$ |
14,448 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,292 |
|
|
|
$ |
1,255 |
|
Accrued expenses and other current liabilities |
|
|
1,374 |
|
|
|
|
1,501 |
|
Deferred revenue |
|
|
228 |
|
|
|
|
47 |
|
Deferred revenue Invekra |
|
|
54 |
|
|
|
|
55 |
|
Operating lease liabilities |
|
|
362 |
|
|
|
|
– |
|
Current portion of long-term debt |
|
|
106 |
|
|
|
|
322 |
|
Current portion of capital leases |
|
|
– |
|
|
|
|
141 |
|
Common Stock liability |
|
|
270 |
|
|
|
|
270 |
|
Total current liabilities |
|
|
4,686 |
|
|
|
|
3,591 |
|
Operating lease liabilities
non-current |
|
|
865 |
|
|
|
|
– |
|
Long-term deferred revenue
Invekra |
|
|
323 |
|
|
|
|
356 |
|
Long-term debt, less current
portion |
|
|
– |
|
|
|
|
12 |
|
Total liabilities |
|
|
5,874 |
|
|
|
|
3,959 |
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Convertible preferred stock, $0.0001 par value; 714,286 shares
authorized at September 30, 2019 and March 31, 2019 respectively;
1.55 shares issued and outstanding at September 30, 2019 and March
31, 2019 respectively |
|
|
– |
|
|
|
|
– |
|
Common stock, $0.0001 par value; 24,000,000 shares authorized at
September 30, 2019 and March 31, 2019, respectively, 1,318,004 and
1,316,335 shares issued and outstanding at September 30, 2019 and
March 31, 2019, respectively |
|
|
2 |
|
|
|
|
2 |
|
Additional paid-in capital |
|
|
184,499 |
|
|
|
|
184,074 |
|
Accumulated deficit |
|
|
(169,785 |
) |
|
|
|
(169,238 |
) |
Accumulated other comprehensive loss |
|
|
(4,445 |
) |
|
|
|
(4,349 |
) |
Total stockholders’ equity |
|
|
10,271 |
|
|
|
|
10,489 |
|
Total liabilities and stockholders’ equity |
|
$ |
16,145 |
|
|
|
$ |
14,448 |
|
|
|
SONOMA PHARMACEUTICALS, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of
Comprehensive Loss(In thousands, except per share
amounts)(Unaudited)
|
|
Three Months EndedSeptember
30, |
|
|
Six Months EndedSeptember
30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
4,712 |
|
|
$ |
4,635 |
|
|
$ |
9,097 |
|
|
$ |
8,730 |
|
Service |
|
|
256 |
|
|
|
304 |
|
|
|
582 |
|
|
|
578 |
|
Total revenues |
|
|
4,968 |
|
|
|
4,939 |
|
|
|
9,679 |
|
|
|
9,308 |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
|
2,551 |
|
|
|
2,313 |
|
|
|
4,753 |
|
|
|
4,737 |
|
Service |
|
|
123 |
|
|
|
199 |
|
|
|
265 |
|
|
|
413 |
|
Total cost of revenues |
|
|
2,674 |
|
|
|
2,512 |
|
|
|
5,018 |
|
|
|
5,150 |
|
Gross profit |
|
|
2,294 |
|
|
|
2,427 |
|
|
|
4,661 |
|
|
|
4,158 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
270 |
|
|
|
390 |
|
|
|
608 |
|
|
|
740 |
|
Selling, general and administrative |
|
|
3,226 |
|
|
|
4,689 |
|
|
|
6,985 |
|
|
|
9,622 |
|
Total operating expenses |
|
|
3,496 |
|
|
|
5,079 |
|
|
|
7,593 |
|
|
|
10,362 |
|
Loss from operations |
|
|
(1,202 |
) |
|
|
(2,652 |
) |
|
|
(2,932 |
) |
|
|
(6,204 |
) |
Interest expense |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(12 |
) |
|
|
(19 |
) |
Interest income |
|
|
42 |
|
|
|
47 |
|
|
|
84 |
|
|
|
102 |
|
Other expense |
|
|
(41 |
) |
|
|
(208 |
) |
|
|
(100 |
) |
|
|
(157 |
) |
Gain on sale of assets |
|
|
– |
|
|
|
– |
|
|
|
2,472 |
|
|
|
– |
|
Net loss |
|
|
(1,203 |
) |
|
|
(2,820 |
) |
|
|
(488 |
) |
|
|
(6,278 |
) |
Net loss per share: basic and
diluted |
|
|
(0.91 |
) |
|
$ |
(3.93 |
) |
|
|
(0.37 |
) |
|
$ |
(8.89 |
) |
Weighted-average number of
shares used in per common share calculations: basic and
diluted |
|
|
1,317 |
|
|
|
718 |
|
|
|
1,317 |
|
|
|
706 |
|
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(1,203 |
) |
|
$ |
(2,820 |
) |
|
|
(488 |
) |
|
$ |
(6,278 |
) |
Foreign currency translation
adjustments |
|
|
(163 |
) |
|
|
350 |
|
|
|
(96 |
) |
|
|
(152 |
) |
Comprehensive loss |
|
|
(1,366 |
) |
|
$ |
(2,470 |
) |
|
|
(584 |
) |
|
$ |
(6,430 |
) |
|
|
SONOMA PHARMACEUTICALS, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP MEASURES TO
NON-GAAP MEASURES(In
thousands) (Unaudited)
|
|
Three Months EndedSeptember
30, |
|
|
Six Months EndedSeptember
30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
(1) Loss from
operations minus non-cash expenses EBITDA loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations as
reported |
|
$ |
(1,202 |
) |
|
$ |
(2,652 |
) |
|
|
(2,932 |
) |
|
$ |
(6,204 |
) |
Non-cash adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
133 |
|
|
|
585 |
|
|
|
425 |
|
|
|
932 |
|
Depreciation and
amortization |
|
|
68 |
|
|
|
117 |
|
|
|
144 |
|
|
|
238 |
|
Non-GAAP loss from operations
minus non-cash expenses EBITDA loss |
|
$ |
(1,001 |
) |
|
$ |
(1,950 |
) |
|
|
(2,363 |
) |
|
$ |
(5,034 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net loss minus
non-cash expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income as
reported |
|
$ |
(1,203 |
) |
|
$ |
(2,820 |
) |
|
|
(488 |
) |
|
$ |
(6,278 |
) |
Non-cash adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
133 |
|
|
|
585 |
|
|
|
425 |
|
|
|
932 |
|
Depreciation and
amortization |
|
|
68 |
|
|
|
117 |
|
|
|
144 |
|
|
|
238 |
|
Non-GAAP net (loss) income
minus non-cash expenses |
|
$ |
(1,002 |
) |
|
$ |
(2,118 |
) |
|
|
81 |
|
|
$ |
(5,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Operating expenses
minus non-cash expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses as
reported |
|
$ |
3,496 |
|
|
$ |
5,079 |
|
|
|
7,593 |
|
|
$ |
10,362 |
|
Non-cash adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(116 |
) |
|
|
(555 |
) |
|
|
(391 |
) |
|
|
(867 |
) |
Depreciation and
amortization |
|
|
(11 |
) |
|
|
(56 |
) |
|
|
(33 |
) |
|
|
(112 |
) |
Non-GAAP operating expenses
minus non-cash expenses |
|
$ |
3,369 |
|
|
$ |
4,468 |
|
|
|
7,169 |
|
|
$ |
9,383 |
|
(1) |
Loss from operations minus non-cash expenses (EBITDAS) 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 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, 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. |
(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
SUBSIDIARIESPRODUCT RELATED REVENUE
SCHEDULES(In thousands) (Unaudited)
The following table presents the Company’s
disaggregated product revenues by geographic region:
|
|
Three Months Ended September
30, |
|
|
Six Months Ended September
30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
United States |
|
$ |
2,207,000 |
|
|
$ |
2,426,000 |
|
|
$ |
4,694,000 |
|
|
$ |
4,397,000 |
|
Latin America |
|
|
935,000 |
|
|
|
997,000 |
|
|
|
1,589,000 |
|
|
|
2,076,000 |
|
Europe and Rest of the
World |
|
|
1,570,000 |
|
|
|
1,212,000 |
|
|
|
2,814,000 |
|
|
|
2,257,000 |
|
Total |
|
$ |
4,712,000 |
|
|
$ |
4,635,000 |
|
|
$ |
9,097,000 |
|
|
$ |
8,730,000 |
|
Media and Investor Contact:
Sonoma Pharmaceuticals, Inc.
ir@sonomapharmaceuticals.com
Grafico Azioni Sonoma Pharmaceuticals (NASDAQ:SNOAW)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Sonoma Pharmaceuticals (NASDAQ:SNOAW)
Storico
Da Set 2023 a Set 2024