Sonoma Pharmaceuticals, Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
SNOA$1.11+3.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-05.
0001683168-25-000736
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001683168-25-005753
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 84 current paragraphs.
47 unchanged; 30 reworded; 6 added; 34 removed; 8 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
The increase in gross profit of $158,000 for the three months ended June 30, 2025, as compared to the prior period, was primarily due to an increase in revenue and overall product mix.
Current report
Other (Expense) Income, net
Current report
Income Tax Benefit (Expense)
Current report
The following table provides the net loss for each period along with the computation of basic and diluted net loss per share:
Current report
Net cash used in operating activities during the three months ended June 30, 2024 was $912,000, primarily due to a net loss of $1,143,000 offset by stock related compensation expense of $107,000.
Current report
On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act ("OBBBA"), which changes existing U.S. tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We anticipate an insignificant impact to deferred tax assets and liabilities and to income taxes payable in the period of enactment. We continue to evaluate the impact the new legislation will have on our consolidated financial statements.
Removed paragraphs (34)
Previous report
In March 2021, we received approval to market and use our HOCl products as biocides under Article 95 of the European Biocidal Products Regulation in France, Germany and Portugal. The approval applies to our products MucoClyns™ for human hygiene to be marketed and commercialized by us, MicrocynAH® for animal heath marketed and commercialized through our partner, Petagon Limited, and MicroSafe for disinfectant use to be marketed and commercialized through our partner, MicroSafe Group DMCC.
Previous report
In July 2024, we announced an expansion of our distributor base in Europe through a new partnership with Smart Healthcare Company (SHC) s.r.o. for the distribution of Microdacyn60® wound care products into Ukraine.
Previous report
In international markets we rely on distribution partners to sell our eye products. In May 2020, we entered into an expanded license and distribution agreement with our existing partner, Brill International S.L., for our Microdacyn60® Eye Care HOCl-based product. Under the license and distribution agreement, Brill has the right to market and distribute our eye care product under the private label Ocudox in Italy, Germany, Spain, Portugal, France, and the United Kingdom for a period of 10 years, subject to meeting annual minimum sales quantities. In return, Brill paid us a one-time fee, and the agreed upon supply prices. In parts of Asia, Dyamed Biotech markets our eye product under the private label Ocucyn.
Previous report
Oral, Dental and Nasal Care
Previous report
We sell a variety of oral, dental, and nasal products around the world.
Previous report
In international markets, our product Microdacyn60 Oral Care treats mouth and throat infections and thrush. Microdacyn60 assists in reducing inflammation and pain, provides soothing cough relief and does not contain any harmful chemicals. It does not stain teeth, is non-irritating, non-sensitizing, has no contraindications and is ready for use with no mixing or dilution.
Previous report
Our international nasal care product Sinudox™ based on our HOCl technology is an electrolyzed solution intended for nasal irrigation. Sinudox clears and cleans stuffy, runny noses and blocked or inflamed sinuses by ancillary ingredients that may have a local antimicrobial effect. Sinudox is currently sold through Amazon in Europe. In other parts of the world, we partner with distributors to sell Sinudox.
Previous report
Recent Developments
Previous report
As of the date of this filing, the U.S. has announced a 25% tariff on all goods imported from Mexico and Canada, and an additional 10% tariff on goods imported from China. Canada has announced a 25% tariff on certain U.S. goods, and Mexico has also indicated that it intends to impose tariffs on U.S. goods. We do not know when or if such tariffs will take effect or how long any of these tariffs will last, and we do not know if tariffs will apply to all goods at the same rate, or if healthcare products may be subject to a different rate or be exempted. We continue to monitor statements made and actions taken by the U.S. government regarding tariffs on goods imported into the U.S. from Mexico, Canada, and other countries. We continue to also monitor actions by other countries with which we do business. It is possible other countries may impose tariffs on goods imported into their countries from the U.S.
Previous report
We manufacture all of our goods in Mexico. For the nine months ended December 31, 2024, approximately 82% of our revenue was derived from sales outside of the U.S. and 18% of our revenues was derived from the U.S. We ship our goods from Mexico directly to our partners around the world. Thus, if the U.S. imposes tariffs on goods imported into the U.S. from Mexico, the impact on our business will be limited to our business in the U.S. As of the nine months ended December 31, 2024, and in historical periods prior to that, our revenues in Canada have been insignificant. Additionally, we source most of our raw materials in Mexico and do not expect tariffs to materially impact our cost of goods. If a tariff of up to 25% for goods imported to the U.S. from Mexico is imposed on our products, we do not expect the impact on our current business to be material as of the date of this filing. However, if our sales in the U.S. increase in the future, the impact on our business could increase and become material. We have signed contracts with Medline Industries, LP and WellSpring Pharmaceutical Corporation for the sale of our products in the U.S. and expect our U.S. sales to increase in 2025, however we do not yet know the extent of the increase. We assume for purposes of this discussion, but do not know for certain, that tariffs would be based on our cost of goods and not our revenues.
Previous report
The economic impact of the tariffs currently announced or that may be announced in the future, will likely impact the U.S. and potentially the global economy. One impact may be the cost of shipping as companies adjust to new tariffs. Increases to shipping costs may adversely impact our business. Additionally, if the tariffs cause a slowdown in the U.S. or other economies, it may impact overall demand for our products. If tariffs negatively impact the U.S. stock market, our ability to raise funds may be adversely affected.
Previous report
It is also possible that tariffs between the U.S. and other countries, such as China, may benefit certain aspects of our business. If other countries impose tariffs on U.S. goods imported into their country, we would not expect an impact to our business, because we ship our goods to our international partners from Mexico. Such tariffs may provide us with a competitive advantage over our U.S. competitors, because our U.S. competitors might experience higher costs due to tariffs, while our goods would not be impacted because we ship to our distributors from Mexico. If any countries that we ship to impose tariffs on goods imported from Mexico, there may be an adverse impact on our business. The tariff situation continues to evolve and we monitor it closely.
Previous report
The decrease in gross profit of $190,000 for the three months ended December 31, 2024 was due to prior period utilization of manufacturing resources to support new regulatory requirements in Europe which were reported within research and development expense. The current year required less utilization of these resources.
Previous report
Other Income (Expense), net
Previous report
Income Tax (Expense) Benefit
Previous report
Comparison of the Nine Months Ended December 31, 2024 and 2023
Previous report
Revenue
Previous report
The decrease in United States revenue of $284,000 for the nine months ended December 31, 2024 was primarily the result of fluctuations in demand for animal health care products.
Previous report
The increase in Asia revenue of $102,000 for the nine months ended December 31, 2024 was primarily due to timing of customer orders. Revenues from this region tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
Previous report
The increase in Latin America revenue for the nine months ended December 31, 2024 of $1,009,000 was primarily due to an increase in manufacturing orders.
Previous report
The decrease in Rest of World revenue for the nine months ended December 31, 2024 of $44,000 was primarily due to timing of customer orders. Revenues from these regions tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
Previous report
The increase in gross profit of $283,000 for the nine months ended December 31, 2024 was primarily due to an increase in revenue. This was offset by prior period utilization of manufacturing resources to support new regulatory requirements in Europe which were reported within research and development expense. The current year required less utilization of these resources.
Previous report
Research and Development Expense
Previous report
The decrease in research and development expenses for the nine months ended December 31, 2024 of $59,000 was primarily due to increased product development and expanded regulatory efforts in the U.S. and Europe to support new product releases, and increases in regulatory demands in Europe reported in the prior period.
Previous report
Selling, General and Administrative Expense
Previous report
The increase in selling, general and administrative expenses for the nine months ended December 31, 2024 of $104,000 was the result of an increase in corporate expenses.
Previous report
Other Income (Expense), net
Previous report
Other income (expense), net for the nine months ended December 31, 2024 was $675,000 compared to $(380,000) for the nine months ended December 31, 2023. The change in other income (expense), net primarily relates to exchange rate fluctuations.
Previous report
Income Tax (Expense) Benefit
Previous report
Income tax (expense) benefit for the nine months ended December 31, 2024 and 2023 was $(302,000) and $(96,000), respectively. The expense for each period is primarily related to the use of our deferred tax asset in Mexico and, to a lesser extent, our deferred tax asset in Netherlands.
Previous report
Net Loss
Previous report
We believe that we have access to additional capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means; however, we cannot provide any assurance that new financings will be available on commercially acceptable terms, if needed. If the economic climate in the U.S. deteriorates, our ability to raise additional capital could be negatively impacted. If we are unable to secure additional capital, we may be required to take additional measures to reduce costs in order to conserve our cash in amounts sufficient to sustain operations and meet our obligations. These measures could cause significant delays in our continued efforts to commercialize our products, which is critical to the realization of our plan and future operations. This uncertainty along with our history of losses indicates that there is substantial doubt about our ability to continue as a going concern within one year after the date that our financial statements are issued. The accompanying condensed consolidated financial statements do not include any adjustments that may be necessary should we be unable to continue as a going concern.
Previous report
Net cash provided by operating activities during the nine months ended December 31, 2024 was $7,000, primarily due to a net loss of $2,681,000 offset by a decrease in prepaid expenses of $1,547,000, a decrease in accounts receivable of $219,000 and an increase in accounts payable of $864,000.
Previous report
Net cash provided by financing activities was $1,054,000 for the nine months ended December 31, 2023, primarily due to the sale of common stock for net proceeds of $1,446,000 offset by principal payments on short-term debt of $387,000.
Reworded paragraphs (30)
Previous wording
We are a global healthcare leader for developing and producing stabilized hypochlorous acid, or HOCl, products for a wide range of applications, including wound care, eye care, oral care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. Our products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. We sell our products either directly or via partners in 55 countries worldwide.
Current wording
We are a global healthcare leader for developing and producing stabilized hypochlorous acid, or HOCl, products for a wide range of applications, including wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. Our products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. We sell our products either directly or via partners in 55 countries worldwide.
Previous wording
Our core market differentiation is based on being the leading developer and producer of stabilized hypochlorous acid, or HOCl, solutions. We have been in business for over 20 years, and in that time, we have developed significant scientific knowledge of how best to develop and manufacture HOCl products backed by decades of studies and data collection.
Current wording
Our core market differentiation is based on being the leading developer and producer of stabilized hypochlorous acid, or HOCl, solutions. We have been in business for over 20 years, and in that time, we have developed significant scientific knowledge of how best to develop and manufacture HOCl products backed by decades of studies and data collection along with manufacturing experience.
Previous wording
We sell our products into many markets both in the U.S. and internationally. In international markets, we ship a variety of products to 55 countries. Our core strategy is to work with partners both in the United States and around the world to market and distribute our products. In some cases, we market and sell our own products.
Current wording
We sell our products into many markets both in the U.S. and internationally. In international markets, we sell a variety of products into over 55 countries. Our core strategy is to work with partners both in the United States and around the world to market and distribute our products. In some cases, we market and sell our own products.
Previous wording
We have developed unique, differentiated, prescription-strength and safe dermatologic products that support paths to healing among various key dermatologic conditions. Our products are primarily targeted at the treatment of redness and irritation, the management of scars and symptoms of eczema/atopic dermatitis. We are strategically focused on introducing innovative new products that are supported by human clinical data with applications that address specific dermatological procedures currently in demand. In addition, we look for markets where we can provide effective product line extensions and pricing to new product families.
Current wording
We have developed unique, differentiated, and safe dermatologic products that support paths to healing for various dermatologic conditions. Our products are primarily targeted at the treatment of redness and irritation, the management of scars and symptoms of eczema/atopic dermatitis. In Europe and the United Kingdom, we have developed products to treat acne. We are strategically focused on introducing innovative new products that are supported by human clinical data with applications that address specific dermatological procedures currently in demand. In addition, we look for markets where we can provide effective product line extensions and pricing to new product families.
Previous wording
Other over-the-counter dermatology products in the United States include Regenacyn® Advanced Scar Gel, which is clinically proven to improve the overall appearance of scars while reducing pain, itch and redness, Reliefacyn® Advanced Itch-Burn-Rash-Pain Relief Hydrogel for the alleviation of red bumps, rashes, shallow skin fissures, peeling, and symptoms of eczema/atopic dermatitis, and Rejuvacyn® Advanced Skin Repair Cooling Mist for management of minor skin irritations following cosmetic procedures as well as daily skin health and hydration. Rejuvacyn is certified as a Natural Personal Care Product by the Natural Products Association, and Reliefacyn received the National Eczema Association Seal of Acceptance TM in 2023.
Current wording
Other over-the-counter dermatology products in the United States include Regenacyn® Advanced Scar Gel, which is clinically proven to improve the overall appearance of scars while reducing pain, itch and redness, Reliefacyn® Advanced Itch-Burn-Rash-Pain Relief Hydrogel for the alleviation of red bumps, rashes, shallow skin fissures, peeling, and symptoms of eczema/atopic dermatitis, and Rejuvacyn® Advanced Skin Repair Cooling Mist for management of minor skin irritations following cosmetic procedures as well as daily skin health and hydration. Rejuvacyn is certified as a Natural Personal Care Product by the Natural Products Association, and Reliefacyn received the National Eczema Association Seal of Acceptance TM in 2023. In January 2024, we launched Lumacyn TM Clarifying Mist, a direct-to-consumer skin care product in the United States. Lumacyn is an all-natural daily toner to soothe skin, reduce redness and irritation, and manage blemishes by reducing infection.
Previous wording
Our consumer products are available through Amazon.com, our online store and third-party distributors.
Current wording
Our consumer products are available through online retailers, our online store and third-party distributors. On January 29, 2025, we entered into a Master Supply Agreement with WellSpring Pharmaceutical Corporation for the sale of our Microcyn® technology-based products to large retailers in the United States. The agreement is for an initial term of two years, subject to three automatic one-year renewal periods. We amended the agreement on March 21, June 2, and July 23, 2025 to include additional products for distribution.
Previous wording
We sell dermatology products in Europe and Asia through distributors. In these international markets, we have a network of partners, ranging from country specific distributors to large pharmaceutical companies to full-service sales and marketing companies. We work with our international partners to create products they can market in their home country. Some products we develop and manufacture are custom label while others use branding we have already developed. We have created or co-developed a wide range of products for international markets using our core HOCl technology.
Current wording
We sell dermatology products in international markets through distributors. In these markets, we have a network of partners, ranging from country specific distributors to large pharmaceutical companies to full-service sales and marketing companies. We work with our international partners to create products they can market in their home country. Some products we develop and manufacture are custom label while others use branding we have already developed. We have created or co-developed a wide range of products for international markets using our core HOCl technology.
Previous wording
Our prescription product Acuicyn® Eyelid & Eyelash Cleanser is a prescription solution for symptoms of blepharitis and the daily hygiene of eyelids and lashes and helps manage red, itchy, crusty and inflamed eyes. It is strong enough to kill the bacteria that causes discomfort, fast enough to provide near instant relief, and gentle enough to use as often as needed.
Current wording
In the United States, our prescription product Acuicyn® Eyelid & Eyelash Cleanser is an effective solution for symptoms of blepharitis and the daily hygiene of eyelids and lashes, and helps manage red, itchy, crusty and inflamed eyes. It is strong enough to kill the bacteria that causes discomfort, fast enough to provide near instant relief, and gentle enough to use as often as needed.
Previous wording
In the United States, we sell Ocucyn® Eyelid & Eyelash Cleanser directly to consumers on Amazon.com, through our online store, and through third party distributors. Ocucyn is designed for everyday use as a safe, gentle, and effective solution for good eyelid and eyelash hygiene.
Current wording
We sell Ocucyn® Eyelid & Eyelash Cleanser to consumers through our online store, and third party distributors. Ocucyn is designed for everyday use as a safe, gentle, and effective solution for good eyelid and eyelash hygiene. In international markets we rely on distribution partners to sell our eye products.
Previous wording
For our animal health products sold in the U.S. and Canada, we partner with Compana Pet Brands. Compana distributes non-prescription products to national pet-store retail chains and farm animal specialty stores, such as PetSmart, Tractor Supply, Cabela’s, PetExpress, Bass Pro Shops, and Menards. In August 2022, we announced the launch of a MicrocynVS® line of products exclusively for veterinarians for the management of wound, skin, ear and eye afflictions in all animal species.
Current wording
For our animal health products sold in the U.S., we partner with Compana Pet Brands. Compana distributes non-prescription products to national pet-store retail chains and farm animal specialty stores, such as PetSmart, Tractor Supply, and Menards.
Previous wording
For the Asian and European markets, in May 2019 we partnered with Petagon an international importer and distributor of quality pet food and products for an initial term of five years. We supply Petagon with all MicrocynAH products sold by Petagon. In August 2020, Petagon received a license from the People’s Republic of China for the import of veterinary drug products manufactured by us. This is the highest classification Petagon and Sonoma can receive for animal health products in China.
Current wording
For the Asian and European markets, in May 2019 we partnered with Petagon, an international importer and distributor of quality pet food and products, for an initial term of five years. We supply Petagon with all MicrocynAH products sold by Petagon.
Previous wording
Our HOCl technology has been formulated as a disinfectant and sanitizer solution for our partner MicroSafe and is sold in numerous countries. It is designed to be used to spray in aerosol format in areas and environments likely to serve as a breeding ground for the spread of infectious disease, which could result in epidemics or pandemics. The medical-grade surface disinfectant solution is used in hospitals worldwide to protect doctors and patients. In May 2020, Nanocyn® Disinfectant & Sanitizer received approval to be entered into the Australian Register of Therapeutic Goods, or ARTG for use against the coronavirus SARS-CoV-2, or COVID-19, and was also authorized in Canada for use against COVID-19. Nanocyn has also met the stringent environmental health and social/ethical criteria of Good Environmental Choice Australia, or GECA, becoming one of the very few eco-certified, all-natural disinfectant solutions in Australia.
Current wording
Our HOCl technology has been formulated as a disinfectant and sanitizer solution and is sold in numerous countries. It is designed to be used to spray in aerosol format in areas and environments likely to serve as a breeding ground for the spread of infectious disease, which could result in epidemics or pandemics. The medical-grade surface disinfectant solution is used in hospitals worldwide to protect doctors and patients. In May 2020, Nanocyn® Disinfectant & Sanitizer received approval to be entered into the Australian Register of Therapeutic Goods, or ARTG, for use against the coronavirus SARS-CoV-2, or COVID-19, and was also authorized in Canada for use against COVID-19. Nanocyn has also met the stringent environmental health and social/ethical criteria of Good Environmental Choice Australia, or GECA, becoming one of the very few eco-certified, all-natural disinfectant solutions in Australia. In 2024, the Australian Therapeutic Goods Administration approved extended claims for Nanocyn for use against Candida auris (C. auris) and Clostritium Difficile (C. diff.).
Previous wording
The decrease in United States revenue of $254,000 for the three months ended December 31, 2024 was primarily the result of fluctuations in demand for animal health care products.
Current wording
The increase in United States revenue of $363,000 for the three months ended June 30, 2025 was primarily the result of an increase in revenue related to human health care products and over-the-counter animal health care products.
Previous wording
The increase in Europe revenue for the three months ended December 31, 2024 of $40,000 was the result of a general increase in demand for our products.
Current wording
The increase in Europe revenue for the three months ended June 30, 2025 of $180,000 was the result of a general increase in demand for our products.
Previous wording
The increase in Asia revenue of $57,000 for the three months ended December 31, 2024 was primarily due to timing of customer orders. Revenues from this region tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
Current wording
The increase in Asia revenue of $185,000 for the three months ended June 30, 2025 was primarily due to timing of orders. Revenues from our international distributors tend to fluctuate from period to period due to customer placement of larger but less frequent orders to benefit from quantity discounts and reduced shipping costs.
Previous wording
The increase in Latin America revenue for the three months ended December 31, 2024 of $461,000 was primarily due to an increase in manufacturing orders.
Current wording
The decrease in Latin America revenue for the three months ended June 30, 2025 of $316,000 was primarily due to timing of customer orders for overflow manufacturing.
Previous wording
The increase in Rest of World revenue for the three months ended December 31, 2024 of $122,000 was primarily due to timing of customer orders. Revenues from these regions tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
Current wording
The increase in Rest of World revenue for the three months ended June 30, 2025 of $212,000 was primarily due to timing of customer orders.
Previous wording
The decrease in research and development expenses for the three months ended December 31, 2024 of $174,000 was primarily due to the timing of product development and regulatory efforts.
Current wording
Increases in research and development expenses for the three months ended June 30, 2025 of $124,000 were primarily due to increased product development to support new product releases.
Previous wording
The increase in selling, general and administrative expenses for the three months ended December 31, 2024 of $171,000 was the result of fluctuations in timing of corporate spending.
Current wording
The decline in selling, general and administrative expenses for the three months ended June 30, 2025 of $44,000 was the result of ongoing efforts to contain expenses across all parts of the company.
Previous wording
Other income (expense), net for the three months ended December 31, 2024 was $112,000 compared to $(79,000) for the three months ended December 31, 2023. The change in other income (expense), net primarily relates to exchange rate fluctuations.
Current wording
Other (expense) income, net for the three months ended June 30, 2025 was $(147,000) compared to $176,000 for the three months ended June 30, 2024. Other (expense) income, net in the current period primarily relates to exchange rate fluctuations, offset by the recognition of income of approximately $323,000 related to employee retention credits. Other (expense) income, net in the prior period primarily relates to exchange rate fluctuations.
Previous wording
Income tax (expense) benefit for the three months ended December 31, 2024 and 2023 was $(9,000) and $57,000, respectively. The expense for the current year is primarily related to the use of our deferred tax asset in Mexico and, to a lesser extent, our deferred tax asset in Netherlands. The benefit for the prior year was related to our Mexico deferred tax asset.
Current wording
Income tax benefit (expense) for the three months ended June 30, 2025 and 2024 was $1,000 and ($146,000), respectively. The benefit for the current period was related to an increase in our Mexico deferred tax asset. The expense for the prior period is primarily related to the use of our Mexico deferred tax asset.
Previous wording
We reported a net loss of $928,000 and $866,000 for the three months ended December 31, 2024 and 2023, respectively, and $2,681,000 and $3,768,000 for the nine months ended December 31, 2024 and 2023, respectively. At December 31, 2024 and March 31, 2024, our accumulated deficit amounted to $197,030,000 and $194,349,000, respectively. At December 31, 2024 and March 31, 2024, we had cash and cash equivalents of $5,236,000 and $3,128,000, respectively. At December 31, 2024 and March 31, 2024, we had working capital of $8,677,000 and $8,829,000, respectively.
Current wording
We reported a net loss of $1,241,000 and $1,143,000 for the three months ended June 30, 2025 and June 30, 2024, respectively. At June 30, 2025 and March 31, 2025, our accumulated deficit amounted to $199,047,000 and $197,806,000, respectively. At June 30, 2025 and March 31, 2025, we had cash and cash equivalents of $3,605,000 and $5,374,000, respectively. At June 30, 2025 and March 31, 2025, we had working capital of $8,259,000 and $8,552,000, respectively.
Previous wording
The following table presents a summary of our consolidated cash flows for operating, investing and financing activities for the nine months ended December 31, 2024 and 2023 as well as balances of cash and cash equivalents and working capital:
Current wording
The following table presents a summary of our condensed consolidated cash flows for operating, investing and financing activities for the three months ended June 30, 2025 and 2024 as well as balances of cash and cash equivalents and working capital:
Previous wording
Net cash used in operating activities during the nine months ended December 31, 2023 was $2,550,000, primarily due to a net loss of $3,768,000, an increase in accounts receivables of $221,000, and an increase in inventory of $93,000, offset by stock compensation of $447,000 and an increase in prepaid expenses of $546,000.
Current wording
Net cash used in operating activities during the three months ended June 30, 2025 was $2,015,000, primarily due to our net loss of $1,241,000, an increase in accounts receivable of $216,000, an increase in inventory of $652,000, an increase in prepaid expenses of $819,000 offset by stock compensation of $57,000, and an increase in accounts payable of $1,026,000.
Previous wording
Net cash used in investing activities was $33,000 for nine months ended December 31, 2024, primarily related to the purchase of equipment.
Current wording
Net cash used in investing activities was $106,000 for the three months ended June 30, 2025, primarily related to the purchase of equipment.
Previous wording
Net cash used in investing activities was $20,000 for the nine months ended December 31, 2023, primarily related to purchases of equipment.
Current wording
Net cash used in investing activities was $5,000 for the three months ended June 30, 2024, primarily related to the purchase of equipment.
Previous wording
Net cash provided by financing activities was $2,788,000 for the nine months ended December 31, 2024, primarily due to net proceeds from the sale of common stock of $3,079,000 offset by $323,000 of principal payments on a short-term loan related to financing of insurance premiums.
Current wording
Net cash provided by financing activities was $636,000 for the three months ended June 30, 2024, primarily due to the sale of common stock of $748,000 offset by $119,000 of principal payments on a short-term loan related to financing of insurance premiums.
Previous wording
We face a substantial Mexico tax liability, intercompany debt, unpaid technical assistance charges and accrued interest. These amounts are due in 2027. At this time, management believes there are sufficient assets on the balance sheet to more than cover any tax obligation without interrupting our operations or business. We have engaged tax professionals to review all options to limit our exposure to these amounts and to proceed in a manner that is most advantageous to us.
Current wording
We face a substantial Mexico tax liability, intercompany debt, unpaid technical assistance charges and accrued interest. These amounts are due in 2027. At this time, management believes there are sufficient assets on the balance sheet to cover any tax obligation without interrupting our operations or business. We have engaged tax professionals to review all options to limit our exposure to these amounts and to proceed in a manner that is most advantageous to us.
Previous wording
We also closely monitor global economic conditions, including the risk of economic downturn or recession, the prospect of increased tariffs, as well as overall consumer sentiment, any of which may impact our financial results.
Current wording
We also closely monitor global economic conditions, including the risk of economic downturn or recession, the prospect of new or increased tariffs, as well as overall consumer sentiment, any of which may impact our financial results.
Previous wording
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Significant estimates and assumptions include reserves and write-downs related to receivables and inventories, the valuation allowance relating to our deferred tax assets, valuation of equity and the estimated amortization periods of upfront product licensing fees received from customers. Periodically, we evaluate and adjust estimates accordingly.
Current wording
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Significant estimates and assumptions include the valuation allowance relating to our deferred tax assets. Periodically, we evaluate and adjust estimates accordingly.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net cash used in financing activities was $58,000 for the three months ended June 30, 2025, primarily related to exercise of stock options of $23,000 offset by $81,000 of principal payments on a short-term loan related to financing of insurance premiums.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
In January 2024, we launched Lumacyn TM Clarifying Mist, a direct-to-consumer skin care product in the United States. Lumacyn is an all-natural daily toner to soothe skin, reduce redness and irritation, and manage blemishes by reducing infection.
Previous report — wording carried elsewhere
In August 2024, we announced that the Australian TGA approved extended claims for Nanocyn for use against Candida auris (C. auris) and Clostritium Difficile (C. diff.) in ten minutes.
Previous report — wording carried elsewhere
The following table shows our consolidated total revenue and revenue by geographic region for the nine months ended December 31, 2024 and 2023:
Previous report — wording carried elsewhere
The increase in Europe revenue for the nine months ended December 31, 2024 of $455,000 was the result of a general increase in demand for our products.
Previous report — wording carried elsewhere
Cost of Revenue and Gross Profit
Previous report — wording carried elsewhere
The cost of revenue and gross profit metrics for the nine months ended December 31, 2024 and 2023 are as follows:
Previous report — wording carried elsewhere
The research and development expense metrics for the nine months ended December 31, 2024 and 2023 are as follows:
Previous report — wording carried elsewhere
The selling, general and administrative expense metrics for the nine months ended December 31, 2024 and 2023 are as follows: