Sonoma Pharmaceuticals, Inc.
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
View on SEC.govAbout this filing
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.
Sep 30, 2026 · Filed Nov 10, 2026
SNOA$1.14+0.9%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001683168-26-006024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001683168-26-008495
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 77 previous paragraphs and 97 current paragraphs.
51 unchanged; 19 reworded; 17 added; 7 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 9 previous and 14 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 (17)
Current report
Europe revenues were flat for the period.
Current report
Latin America revenues increased 57%, primarily due to increasing demand for our products.
Current report
Decrease in research and development expenses for the three months ended September 30, 2026 of 18% was primarily due to a decrease in product development activities.
Current report
Other Income (Expense), net
Current report
Income Tax Benefit (Expense)
Current report
Income tax benefit (expense) for the three months ended September 30, 2026 and 2025 was (448,000) and 197,000, respectively. The expense for the current period was related to the use of our Mexico and Netherlands deferred tax assets and current foreign taxes. The benefit for the prior period was related to an increase in our Mexico deferred tax asset.
Current report
Comparison of the Six Months Ended September 30, 2026 and 2025
Current report
Revenues
Current report
Research and Development Expense
Current report
Research and development expenses for the six months ended September 30, 2026 and 2025 are as follows:
Current report
Decrease in research and development expenses for the six months ended September 30, 2026 of 9% was primarily due to a decrease in product development activities.
Current report
Selling, General and Administrative Expense
Current report
Selling, general and administrative expenses for the six months ended September 30, 2026 and 2025 are as follows:
Current report
Other Income (Expense), net
Current report
Income tax benefit (expense)
Current report
Income tax benefit (expense) for the six months ended September 30, 2026 and 2025 was (448,000) and 198,000, respectively. The expense for the current period was related to the use of our Mexico and Netherlands deferred tax assets and current foreign taxes. The benefit for the prior period was related to an increase in our Mexico deferred tax asset.
Removed paragraphs (7)
Previous report
In June 2023, we announced a new application of our HOCl technology for intraoperative pulse lavage irrigation treatment, which can replace commonly used IV bags in a variety of surgical procedures. The intraoperative pulse lavage container is designed to be used in combination with a pulse lavage irrigation device, or flush gun, for abdominal, laparoscopic, orthopedic, and periprosthetic procedures. It is in trial use by hospitals in Europe and launched in the U.S. in November 2023.
Previous report
In April 2024, we announced expansion of our Microcyn Negative Pressure Wound Therapy Solution products line, now available in 250mL, 450mL and 990mL sizes to meet the diverse needs of healthcare professionals and patients.
Previous report
The research and development expense metrics for the three months ended June 30, 2026 and 2025 are as follows:
Previous report
Increase in research and development expenses for the three months ended June 30, 2026 of 1% was primarily due to increased product development to support new product releases.
Previous report
The selling, general and administrative expense metrics for the three months ended June 30, 2026 and 2025 are as follows:
Previous report
Other Expense, net
Previous report
The following table provides the net loss for each period along with the computation of basic and diluted net loss per share:
Reworded paragraphs (19)
Previous wording
Our HOCl-based wound care products are intended for the treatment of acute and chronic wounds as well as first- and second-degree burns, and as an intraoperative irrigation treatment. They work by first removing foreign material and debris from the skin surface and moistening the skin, thereby improving wound healing. Secondly, our HOCl products assist in the wound healing process by removing microorganisms. HOCl is an important constituent of our innate immune system, formed and released by the macrophages during phagocytosis. Highly organized cell structures such as human tissue can tolerate the action of our wound care solution while single-celled microorganisms cannot, making our products advantageous to other wound-irrigation and antiseptic solutions. Due to its unique chemistry, our wound treatment solution is also much more stable than similar products on the market and therefore maintains much higher levels of hypochlorous acid over its shelf life.
Current wording
Our HOCl-based wound care products are intended for the treatment of acute and chronic wounds as well as first- and second-degree burns. They work by first removing foreign material and debris from the skin surface and moistening the skin, thereby improving wound healing. Secondly, our HOCl products assist in the wound healing process by removing microorganisms. HOCl is an important constituent of our innate immune system. Highly organized cell structures such as human tissue can tolerate the action of our wound care solution while single-celled microorganisms cannot, making our products advantageous to other wound-irrigation and antiseptic solutions. Due to its unique chemistry, our wound treatment solution is also much more stable than similar products on the market and therefore maintains much higher levels of hypochlorous acid over its shelf life.
Previous wording
In the United States, we sell our wound care products directly to hospitals, physicians, nurses, and other healthcare practitioners and indirectly through non-exclusive distribution arrangements. In Europe, the Middle East and Asia, we sell our wound care products through a diverse network of distributors.
Current wording
In the United States, we sell our wound care products directly to hospitals, physicians, nurses, and other healthcare practitioners and indirectly through non-exclusive distribution arrangements. In other parts of the world, we sell our wound care products through a diverse network of distributors.
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.
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. We supply Petagon with all MicrocynAH products sold by Petagon.
Previous wording
Through our partner MicroSafe, we sell hard surface disinfectant products into Europe, the Middle East and Australia.
Current wording
Through our partner MicroSafe, we sell hard surface disinfectant products into the Middle East and Australia.
Previous wording
Revenues in Asia increased 37% and Rest of World revenues increased 52% due to timing of customer orders. Revenues from these regions tend to fluctuate due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
Current wording
Revenues in Asia decreased 24% and Rest of World revenues increased 43% due to timing of customer orders. Revenues from these regions tend to fluctuate due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
Previous wording
Increase in gross profit for the three months ended June 30, 2026 of 76% was primarily due to an increase in revenues. Gross profit % also increased due to improvements made in our manufacturing process and customer mix.
Current wording
Increase in gross profit for the three months ended September 30, 2026 of 32% was primarily due to an increase in revenues. Gross profit as a percentage of revenues also increased due to improvements made in our manufacturing process and customer mix.
Previous wording
The increase in selling, general and administrative expenses for three months ended June 30, 2026 of 3% was primarily due to inflation driven salary increases in Mexico.
Current wording
The increase in selling, general and administrative expenses for the three months ended September 30, 2026 of 9% was primarily due to inflation driven salary increases in Mexico.
Previous wording
Other expense, net for the three months ended June 30, 2026 was $290,000 compared to $147,000 for the three months ended June 30, 2025. Other expense, net in the current period primarily relates to exchange rate fluctuations.
Current wording
Other income (expense), net for the three months ended September 30, 2026 was $92,000 compared to ($394,000) for the three months ended September 30, 2025. Other income (expense), net in the current period primarily relates to exchange rate fluctuations.
Previous wording
Revenues in the U.S. increased 141%, primarily as a result of an increase in sales of over-the-counter products and increased sales by new and existing distributors.
Current wording
Revenues in the U.S. increased 113%, primarily as a result of increased sales by new and existing distributors.
Previous wording
Europe revenues increased 34% as a result of increased demand for our products and favorable exchange rates.
Current wording
Europe revenues increased 14% as a result of increased demand for our products and favorable exchange rates.
Previous wording
Latin America revenues increased 11%, primarily due to timing of customer orders for overflow manufacturing.
Current wording
Latin America revenues increased 33%, primarily due to timing of customer orders.
Previous wording
We reported a net loss of $330,000 and $1,241,000 for the three months ended June 30, 2026 and 2025, respectively. At June 30, 2026 and March 31, 2026, our accumulated deficit amounted to $201,311,000 and $200,981,000, respectively. At June 30, 2026 and March 31, 2026, we had cash and cash equivalents of $5,338,000 and $2,399,000, respectively. At June 30, 2026 and March 31, 2026, we had working capital of $10,821,000 and $7,268,000, respectively. Since our inception, substantially all of our operations have been financed through sales of equity securities. Other sources of financing that we have used to date include our revenues, as well as various loans and the sale of certain assets to customers.
Current wording
We reported a net loss of $66,000 and $534,000 for the three months ended September 30, 2026 and 2025, respectively, and a net loss of $396,000 and $1,775,000 for the six months ended September 30, 2026 and 2025, respectively. At September 30, 2026 and March 31, 2026, our accumulated deficit amounted to $201,377,000 and $200,981,000, respectively. At September 30, 2026 and March 31, 2026, we had cash and cash equivalents of $4,609,000 and $2,399,000, respectively. At September 30, 2026 and March 31, 2026, we had working capital of $10,928,000 and $7,268,000, respectively. Since our inception, substantially all of our operations have been financed through sales of equity securities. Other sources of financing that we have used to date include our revenues, as well as various loans and the sale of certain assets to customers.
Previous wording
The following table presents a summary of our unaudited condensed consolidated cash flows for operating, investing and financing activities for the three months ended June 30, 2026 and 2025 as well as balances of cash and cash equivalents and working capital:
Current wording
The following table presents a summary of our unaudited condensed consolidated cash flows for operating, investing, and financing activities for the six months ended September 30, 2026 and 2025 as well as balances of cash and cash equivalents and working capital:
Previous 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.
Current wording
Net cash used in operating activities during the six months ended September 30, 2026 was $1,385,000, primarily due to our net loss of $396,000, an increase in accounts receivable of $1,072,000, a decrease in accounts payable of $367,000, offset by stock compensation of $153,000 and a decrease in inventory of $119,000.
Previous wording
Net cash used in operating activities during the three months ended June 30, 2026 was $649,000, primarily due to our net loss of $330,000, an increase in accounts receivable of $650,000 an increase in inventory of $81,000, an increase in prepaid expenses of $364,000 offset by stock compensation of $58,000 and an increase in accounts payable of $216,000.
Current wording
Net cash used in operating activities during the six months ended September 30, 2025 was $2,650,000, primarily due to our net loss of $1,775,000, an increase in accounts receivable of $294,000, an increase in inventory of $444,000, an increase in prepaid expenses of $834,000 offset by stock compensation of $96,000 and an increase in accounts payable of $360,000.
Previous wording
Net cash used in investing activities was $2,000 for the three months ended June 30, 2026, primarily related to the purchase of equipment.
Current wording
Net cash used in investing activities was $44,000 for the six months ended September 30, 2026, primarily related to the purchase of equipment.
Previous 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.
Current wording
Net cash used in investing activities was $116,000 for the six months ended September 30, 2025, primarily related to the purchase of equipment.
Previous wording
Net cash provided by financing activities was $3,454,000 for the three months ended June 30, 2026, primarily related to the sale of common stock offset by $82,000 of principal payments on a short-term loan related to financing of insurance premiums.
Current wording
Net cash provided by financing activities was $3,686,000 for the six months ended September 30, 2026, primarily related to the sale of common stock of $3,848,000 offset by $165,000 of principal payments on a short-term loan related to financing of insurance premiums.
Previous wording
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.
Current wording
Net cash used in financing activities was $120,000 for the six months ended September 30, 2025, primarily related to exercise of stock options of $44,000 offset by $164,000 of principal payments on a short-term loan related to financing of insurance premiums.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Revenues in the U.S. increased 93%, primarily as a result of an increase in demand for our products.
Current report — wording carried from elsewhere
Research and development expenses for the three months ended September 30, 2026 and 2025 are as follows:
Current report — wording carried from elsewhere
Selling, general and administrative expenses for the three months ended September 30, 2026 and 2025 are as follows:
Current report — wording carried from elsewhere
The following table shows our consolidated total revenues and revenues by geographic region for the six months ended September 30, 2026 and 2025:
Current report — wording carried from elsewhere
Revenues in Asia were flat for the period and Rest of World revenues increased 47% due to timing of customer orders. Revenues from these regions tend to fluctuate due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.
Current report — wording carried from elsewhere
Cost of Revenues and Gross Profit
Current report — wording carried from elsewhere
The cost of revenues and gross profit metrics for the six months ended September 30, 2026 and 2025 are as follows:
Current report — wording carried from elsewhere
Increase in gross profit for the six months ended September 30, 2026 of 50% was primarily due to an increase in revenues. Gross profit as a percentage of revenues also increased due to improvements made in our manufacturing process and customer mix.
Current report — wording carried from elsewhere
The increase in selling, general and administrative expenses for six months ended September 30, 2026 of 6% was primarily due to inflation driven salary increases in Mexico.
Current report — wording carried from elsewhere
Other expense, net for the six months ended September 30, 2026 was ($198,000) compared to ($541,000) for the six months ended September 30, 2025. Other income (expense), net in the current period primarily relates to exchange rate fluctuations.