MeritValue

Sonoma Pharmaceuticals, Inc.

SNOAdata completeness 100%16 fiscal years on file
The thesis, from the filings

Sonoma Pharmaceuticals, Inc. earns about -208% on invested capital, but has diluted owners by 63375% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$12.6M1$13.3M2$12.7M3$14.3M4$19.5M4
Net income−$5.09M5−$5.15M6−$4.84M7−$3.46M8−$3.18M8
Operating cash flow−$4.25M9−$6.15M10−$2.4M11−$88,00012−$3.93M12
Capital expenditure$137,00013$269,00014$2,00015$80,00016$192,00016
Free cash flow (derived)−$4.39M9−$6.42M10−$2.4M11−$168,00012−$4.13M12
Total debt$017$431,00018$323,00019$220,00020$222,00020
Cash & equivalents$7.4M21$3.82M22$3.13M23$5.37M24$2.4M24
Diluted shares2,6533.4M455,0001.2M1.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$18.38
your share of equity
Profit it earned you last year
−$18.85
Free cash flow it threw off
−$24.5
Debt you’d be carrying
$1.32

10 shares is a claim on $18.38 of net worth that earned you −$18.85 and generated −$24.5 of cash last year, against $1.32 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-208% avg · 5y
FY22 -330%FY23 -89%FY24 -119%FY25 —FY26 -294%

It earned an average -208% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+63375% shares · 5y

Share count is up 63375% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0001683168-23-004323 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-03-31 · accession 0001683168-24-004275 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-03-31 · accession 0001683168-25-004546 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2025-03-31 · accession 0001683168-26-004871 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2022-03-31 · accession 0001683168-23-004323 (NetIncomeLoss)
  6. 10-K · period ending 2023-03-31 · accession 0001683168-24-004275 (NetIncomeLoss)
  7. 10-K · period ending 2024-03-31 · accession 0001683168-25-004546 (NetIncomeLoss)
  8. 10-K · period ending 2025-03-31 · accession 0001683168-26-004871 (NetIncomeLoss)
  9. 10-K · period ending 2022-03-31 · accession 0001683168-23-004323 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-03-31 · accession 0001683168-24-004275 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-03-31 · accession 0001683168-25-004546 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-03-31 · accession 0001683168-26-004871 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-03-31 · accession 0001683168-23-004323 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-03-31 · accession 0001683168-24-004275 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-03-31 · accession 0001683168-25-004546 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2025-03-31 · accession 0001683168-26-004871 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2022-03-31 · accession 0001683168-22-004940 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2023-03-31 · accession 0001683168-24-004275 (ShortTermBorrowings)
  19. 10-K · period ending 2024-03-31 · accession 0001683168-25-004546 (ShortTermBorrowings)
  20. 10-K · period ending 2025-03-31 · accession 0001683168-26-004871 (ShortTermBorrowings)
  21. 10-K · period ending 2022-03-31 · accession 0001683168-23-004323 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-03-31 · accession 0001683168-24-004275 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2024-03-31 · accession 0001683168-25-004546 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2025-03-31 · accession 0001683168-26-004871 (CashAndCashEquivalentsAtCarryingValue)