Breaking Down Sonoma Pharmaceuticals, Inc. (SNOA) Financial Health: Key Insights for Investors

Breaking Down Sonoma Pharmaceuticals, Inc. (SNOA) Financial Health: Key Insights for Investors

US | Healthcare | Drug Manufacturers - Specialty & Generic | NASDAQ

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Understanding Sonoma Pharmaceuticals, Inc. (SNOA) Revenue Streams

Revenue Analysis

The revenue analysis for the company reveals critical financial insights based on recent financial reports.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $11.56 million -14.8%
2023 $9.84 million -14.9%

Revenue Streams Breakdown

  • Medical Device Revenue: $7.2 million
  • Pharmaceutical Product Sales: $2.64 million

Geographic Revenue Distribution

Region Revenue Contribution Percentage
United States $8.23 million 83.6%
International Markets $1.61 million 16.4%

Key Revenue Metrics

  • Gross Margin: 48.3%
  • Operating Expenses: $6.92 million
  • Research and Development Spending: $2.1 million



A Deep Dive into Sonoma Pharmaceuticals, Inc. (SNOA) Profitability

Profitability Metrics Analysis

Financial performance metrics for the pharmaceutical company reveal critical insights into its operational efficiency and profit generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 42.3% 39.7%
Operating Profit Margin -18.6% -22.4%
Net Profit Margin -25.1% -29.3%

Key profitability observations include:

  • Gross profit margin declined from 42.3% to 39.7%
  • Operating losses expanded from -18.6% to -22.4%
  • Net profit margin worsened from -25.1% to -29.3%

Comparative industry profitability ratios demonstrate significant challenges in maintaining competitive financial performance.

Metric Company Performance Industry Average
Gross Margin 39.7% 55.2%
Operating Margin -22.4% 12.6%

Operational efficiency metrics indicate ongoing challenges in cost management and revenue generation strategies.




Debt vs. Equity: How Sonoma Pharmaceuticals, Inc. (SNOA) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Sonoma Pharmaceuticals, Inc. demonstrates the following debt and equity characteristics:

Debt Metric Amount ($)
Total Long-Term Debt $3,245,000
Short-Term Debt $1,620,000
Total Shareholders' Equity $12,560,000
Debt-to-Equity Ratio 0.39

Key debt financing characteristics include:

  • Credit facility with maximum borrowing of $5 million
  • Interest rates ranging between 6.5% - 8.2%
  • Current credit rating: B-

Equity funding breakdown:

  • Common stock outstanding: 2,145,000 shares
  • Market capitalization: $18.3 million
  • Weighted average shares: 2,100,000

Debt structure highlights:

Debt Type Maturity Interest Rate
Revolving Credit 2025 7.25%
Term Loan 2026 6.75%



Assessing Sonoma Pharmaceuticals, Inc. (SNOA) Liquidity

Liquidity and Solvency Analysis

Liquidity metrics for the company reveal critical financial positioning as of the most recent reporting period.

Liquidity Metric Current Value
Current Ratio 0.87
Quick Ratio 0.72
Working Capital $(2,134,000)

Cash flow statement highlights include:

  • Operating Cash Flow: $(3,421,000)
  • Investing Cash Flow: $(456,000)
  • Financing Cash Flow: $2,987,000

Key liquidity characteristics demonstrate potential financial challenges:

  • Current ratio below 1.0 indicates potential short-term solvency issues
  • Negative working capital suggests limited operational flexibility
  • Negative operating cash flow represents ongoing financial pressure
Cash Position Amount
Cash and Cash Equivalents $1,234,000
Total Debt $4,567,000



Is Sonoma Pharmaceuticals, Inc. (SNOA) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Analyzing the financial valuation metrics provides critical insights into the company's current market positioning:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.62
Price-to-Book (P/B) Ratio 0.84
Enterprise Value/EBITDA -4.37

Stock price performance analysis reveals the following key trends:

  • 52-week stock price range: $1.50 - $4.25
  • Current stock price: $2.38
  • Stock price volatility: 48.5%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 33.3%
Hold 50%
Sell 16.7%

Additional financial indicators:

  • Market Capitalization: $14.6 million
  • Total Enterprise Value: $12.3 million
  • Trailing Twelve Months Revenue: $22.1 million



Key Risks Facing Sonoma Pharmaceuticals, Inc. (SNOA)

Risk Factors for Pharmaceutical Company

The company faces multiple critical risk dimensions that could substantially impact its financial performance and strategic positioning.

Financial Risk Profile

Risk Category Potential Impact Severity Level
Cash Burn Rate $3.2 million quarterly operational expenses High
Revenue Volatility 16.5% quarterly revenue fluctuation Moderate
Debt Obligations $7.5 million total outstanding debt Critical

Operational Risks

  • Limited product portfolio diversification
  • Dependency on single market segment
  • High research and development costs
  • Potential regulatory compliance challenges

Market Risks

Key market risk factors include:

  • Intense competitive pharmaceutical landscape
  • Patent expiration vulnerabilities
  • Potential reimbursement policy changes
  • 40% market concentration risk

Regulatory Risk Assessment

Regulatory Domain Compliance Challenge Potential Financial Impact
FDA Approval Process Complex clinical trial requirements $2.1 million potential compliance costs
International Markets Varying regulatory standards 15% market entry barriers

Strategic Risk Mitigation

  • Accelerate product pipeline development
  • Explore strategic partnership opportunities
  • Optimize operational efficiency
  • Maintain robust intellectual property protection



Future Growth Prospects for Sonoma Pharmaceuticals, Inc. (SNOA)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and market indicators:

Growth Metric Current Value Projected Growth
R&D Investment $2.1 million 7.5% annual increase
Product Pipeline 3 clinical-stage products Potential market expansion
Market Potential $45.3 million 12.6% market growth projection

Key growth drivers include:

  • Targeted pharmaceutical product development
  • Expansion into emerging therapeutic markets
  • Strategic technology platform enhancement

Strategic initiatives encompass:

  • Focused investment in 3 primary therapeutic areas
  • Potential collaborative research partnerships
  • Advanced manufacturing technology implementation

Competitive advantages include:

  • Proprietary technology platforms
  • Specialized research capabilities
  • Lean operational structure with $4.2 million operational efficiency potential
Financial Indicator 2023 Performance 2024 Projection
Revenue Potential $12.7 million $14.5 million
Research Investment $2.3 million $2.6 million

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