Sonoma Pharmaceuticals, Inc. · NASDAQ:SNOA

Sonoma Pharmaceuticals — Investor Presentation (January 2021)

27 slides from Sonoma Pharmaceuticals's investor presentation, Jan 11, 2021

  1. Slide 1: Sonoma Pharmaceuticals, Inc. January 2021

    Sonoma Pharmaceuticals, Inc. NASDAQ: SNOA January 2021

  2. Slide 2: Legal Disclaimers

    Legal Disclaimers INVESTOR PRESENTATION This communication is for informational purposes only. The information contained herein does not purport to be all - inclusive. T he data contained herein is derived from various internal and external sources. No representation is made as to the reasonableness

  3. Slide 3: Legal Disclaimers: Non-GAAP, Trademarks

    Legal Disclaimers NON - GAAP FINANCIAL MEASURES Non - GAAP income (loss) from operations minus non - cash expenses (EBITDAS) is a non - GAAP financial measure. The Company defines operating income (loss) minus non - cash expenses as GAAP reported operating income (loss) minus operating depreciation

  4. Slide 4: About Sonoma

    About Sonoma Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid ( HOCl ) products for a wide range of applications, including wound care, animal health care, eye care, nasal care, oral care and dermatological conditions. The company’s produ

  5. Slide 5: Investor Highlights

    Investor Highlights Diverse global healthcare leader • Focused on billion - dollar Rx and OTC wound care, dermatology, eye, oral and nasal care, disinfectant use and animal health markets • Over 20 years of experience • Robust international partner network; • Focused on expanding U.S. partner networ

  6. Slide 6: Business Developments 2020

    Business Developments 2020 • Executed asset purchase agreement with MicroSafe Group, Dubai in February 2020 to extend partnership to the Middle East, Australia and Europe in wound care and surface disinfectants and animal health care • Received new CE marking for Microdacyn 60 ® Eye Care in April 20

  7. Slide 7: Current Research and Development

    Current Research and Development • Dermodacyn ® Disinfecting solution study on viability of SARS - CoV - 2, see https://www.sciencedirect.com/science/article/pii/S019567012030339X • Endocyn ® study on cellular toxicity, see https://www.sciencedirect.com/science/article/abs/pii/S0099239917310439 • HO

  8. Slide 8: Key Opportunities

    Key Opportunities • Fully commercialize existing products via distribution partners or directly • 21 U.S. FDA clearances as medical devices for Section 510(k) • CEs for over 39 products • Expand OTC reach in U.S. in the dermatology, eye, oral and nasal care, disinfectants and wound care markets • Ex

  9. Slide 9: Sonoma's Microcyn Technology

    Sonoma’s Microcyn Technology • Stable triple - action topical technology • A powerful anti - microbial - reduces microbial load, including destruction of biofilms • Anti - inflammatory agent – reduces itch and pain • Anti - pruritic activity • Tissue healing (increased blood/oxygen flow to wound) •

  10. Slide 10: What is Hypochlorous Acid?

    What is Hypochlorous Acid? During the activation of neutrophils, respiratory bursts generate hydrogen peroxide (H 2 O 2 ) and the activated granule enzyme myeloperoxidase converts H 2 O 2 to hypochlorous acid (HOCl) • Hypochlorous acid (HOCl) is produced by neutrophils in the body as part of its def

  11. Slide 11: Microcyn Technology microbial load reduction & infection control

    Microcyn Technology microbial load reduction & infection control 30 seconds “ in vitro kill time (%) reduction” • MRSA - Staphylococcus aureus 99.999 VRE - Enterococcus faecalis 99.999 • Staphylococcus aureus 99.999 Escherichia coli 99.997 • Acinetobacter baumannii 99.999 Bacteroides fragilis 99.999

  12. Slide 12: U.S. Summary

    U.S. Summary • FDA - cleared products targeting: • atopic dermatitis, dermal lesions • scar management, • pain and itch relief and other dermatological conditions • eye - lash hygiene • acute and chronic wound care • oral care (dental surgery) • both OTC and Rx • Ability to partner for OTC, Rx, and

  13. Slide 13: Attractive U.S. Product Offerings

    Attractive U.S. Product Offerings

  14. Slide 14: Robust International Distribution Network

    Robust International Distribution Network • Steadily growing existing partner base with broad indications • ISO/FDA registered/CE/EN/MOH/TGA registrations for state - of - the - art Mexico manufacturing facility • Ship to 54 countries globally • 40+ partners in dermatology, eye, wound, animal care a

  15. Slide 15: Europe

    Europe

  16. Slide 16: Latin America

    Latin America

  17. Slide 17: Asia

    Asia

  18. Slide 18: Middle East

    Middle East

  19. Slide 19: Animal Health Care

    19 NASDAQ: SNOA Animal Health Care • MicrocynAH ® is a family of advanced animal healthcare products that are safe to use on all animals, no matter the species or age • Perfect for hot spots, scratches, skin rashes and ulcers, cuts, burns, post - surgical sites, irritated skin and lacerations. • We

  20. Slide 20: Sonoma Partnership Principles

    Sonoma Partnership Principles • Sonoma seeks long - term strategic partnerships, based on win/win business plans; 50/50 mentality with focus on what’s most important to each side. • Regular in - person and phone meetings to strengthen relationships. • “Do what you say and say what you do” mentality

  21. Slide 21: Accomplishments in 2020

    Accomplishments in 2020 Improved Stock Performance • Market cap of $17.0 @ 12/14/2020 versus $7.6m @ 9/30/2019; stock price doubled year over year Eliminated over $2m of operating expenses per quarter and achieved break - even • Operating expenses of approx. $4m per quarter in 2019 leading to a larg

  22. Slide 22: Key Financial Metrics

    Key Financial Metrics Quarter Ended Quarter Ended Six Months Ended Six Months Ended Sept 30 , 2020* (unaudited) Sept 30, 2019* (unaudited) Sept 30, 2020* (unaudited) Sept 30, 2019* (unaudited) Total Revenues $5,769 $4,727 $11,536 $9,221 Gross Profit $2,502 $2,175 $4,757 $4,468 Operating Expenses $2,

  23. Slide 23: Balance Sheet Highlights

    Balance Sheet Highlights (in thousands) September 30, 2020 (unaudited) March 31, 2020 Assets Cash and cash equivalents 4,320$ 3,691$ Accounts receivable, net 5,279 4,062 Inventories 3,704 2,192 Other current assets 2,964 2,438 Total Current Assets 16,267 12,383 Other assets 1,878 2,178 TOTAL ASSETS

  24. Slide 24: Income Statement, Sept. 30, 2020

    Income Statement, Sept. 30, 2020 (unaudited, in thousands, except per share amounts) 2020 2019 2020 2019 Revenues 5,769$ 4,727$ 11,536$ 9,221$ Cost of revenue 3,267 2,552 6,779 4,753 Gross profit 2,502 2,175 4,757 4,468 Operating expenses Research and development (85) 270 391 608 Selling, general an

  25. Slide 25: Statement of Cash Flows, Sept. 30, 2020

    Statement of Cash Flows, Sept. 30, 2020 (unaudited, in thousands) 2020 2019 Net cash (used in) provided by operating activities (2,648)$ (160)$ Net cash (used in) provided by investing activities 475 (69) Net cash (used in) provided by financing activities 2,797 (241) Effect of exchange rates on cas

  26. Slide 26: Revenue Metrics

    Revenue Metrics (unaudited, in thousands) 2020 2019 Change % Change Revenue by revenue sources: Human 4,776$ 3,801$ 975$ 25.65% Animal 951 912 39 4.28% Other 42 14 28 N/A 5,769$ 4,727$ 1,042$ 22.04% Revenue by geographic area: United States 1,984$ 2,209$ (225)$ -10.19% Latin America 2,024 948 1,076

  27. Slide 27: Thank You.

    Thank You.

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