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Sonoma Pharmaceuticals, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $3,579,000 from $2,731,000 in the same quarter the previous year. This increase is attributed to higher sales in Europe, Asia, and Latin America.
Cost of revenues for the quarter was $2,218,000, representing 62% of sales, compared to 64% in the same quarter of the previous year. This decrease in cost ratio is due to a change in product mix and increased sales volume.
The company reported a gross profit of $1,361,000 for the quarter, compared to $990,000 in the previous year, with the increase attributed to higher revenue.
Research and development expenses decreased to $506,000 from $536,000, primarily due to the timing of product development efforts.
Selling, general, and administrative expenses increased slightly to $1,705,000 from $1,662,000, reflecting fluctuations in corporate spending.
Net loss for the quarter was $610,000, compared to $1,484,000 in the previous year. The decrease in net loss is primarily due to increased revenue and gross profit.
Cash used in operating activities was $558,000, while cash provided by financing activities was $2,080,000, primarily from the sale of common stock.
Sonoma had a working capital of $8,912,000 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a distribution agreement with Medline Industries, LP, for the marketing and distribution of wound care products.
Sonoma does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting and is actively engaged in remediation efforts.
Sonoma continues to focus on expanding its product offerings and partnerships in international markets, particularly in Europe and Asia.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sonoma Pharmaceuticals Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.