Sonoma Pharmaceuticals, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $3,579,000 for the three months ended September 30, 2024, marking a 31% increase from $2,731,000 in the same period of 2023. For the six months ended September 30, 2024, total revenues reached $6,970,000, up 13% from $6,158,000 in the prior year. This growth was driven by increased sales across various regions, particularly in Asia, where revenue surged by 124% to $776,000, and in Latin America, which saw a 79% increase to $465,000.

The company's gross profit for the three months ended September 30, 2024, was $1,361,000, a 37% increase from $990,000 in the previous year. For the six-month period, gross profit rose to $2,667,000, up 22% from $2,194,000. Despite these gains, Sonoma reported a net loss of $610,000 for the three months ended September 30, 2024, an improvement from a net loss of $1,484,000 in the same quarter of 2023. The net loss for the six months was $1,753,000, down from $2,902,000 in the prior year.

The company’s cash and cash equivalents increased to $4,078,000 as of September 30, 2024, compared to $3,128,000 at the end of March 2024. Working capital also improved slightly to $8,912,000 from $8,829,000 during the same period. Notably, Sonoma raised $2,289,000 from the issuance of common stock during the six months ended September 30, 2024, contributing to its cash position.

Strategically, Sonoma executed a reverse stock split on August 29, 2024, reducing its shares outstanding from 21,174,693 to 1,058,447. The company has also been active in expanding its product offerings, launching several new products in recent years, including the Lumacyn™ Clarifying Mist in January 2024 and the Podiacyn™ Advanced Everyday Foot Care in April 2023.

Despite these positive developments, the company reported material weaknesses in its internal controls over financial reporting as of September 30, 2024. Management is currently engaged in remediation efforts, including enhanced training and the separation of financial report preparation from review processes.

Overall, Sonoma Pharmaceuticals continues to focus on its core business of developing stabilized hypochlorous acid products for various healthcare applications, while navigating challenges related to internal controls and operational efficiency.