2024 Q4 - Annual Report

TableofContents UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington,D.C.20549Form10-K (MarkOne) oANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthefiscalyearendedMarch31,2024 ☐TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934Fortransitionperiodfromto CommissionFileNumber:001-33216 SONOMAPHARMACEUTICALS,INC. (Exactnameofregistrantasspecifiedinitscharter) Delaware68-0423298 (Stateorotherjurisdictionofincorporationororganization)(I.R.S.EmployerIdentificationNo.) 5445ConestogaCourt,Suite150 Boulder,Colorado80301 (Addressofprincipalexecutiveoffices)(ZipCode) (800)759-9305 (Registrant’stelephonenumber,includingareacode) SecuritiesregisteredpursuanttoSection12(b)oftheAct: CommonStock,$0.0001parvalue SNOA TheNasdaqStockMarketLLC (TitleofEachClass) (TradingSymbol(s)) (NameofEachExchangeonWhichRegistered) SecuritiesregisteredpursuanttoSection12(g)oftheAct: None. Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes☐No☒ IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.Yes☐No ☒ Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐ IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDatafilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☒No☐ Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct: Largeacceleratedfiler☐Acceleratedfiler☐ Non-acceleratedFiler☒Smallerreportingcompany☒ Emerginggrowthcompany☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐ Indicatebycheckmarkwhethertheregistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.☐ IfsecuritiesareregisteredpursuanttoSection12(b)oftheAct,indicatebycheckmarkwhetherthefinancialstatementsoftheregistrantincludedinthefilingreflectthecorrectionofanerrortopreviouslyissuedfinancialstatements.☐ Indicatebycheckmarkwhetheranyofthoseerrorcorrectionsarerestatementsthatrequiredarecoveryanalysisofincentive-basedcompensationreceivedbyanyoftheregistrant’sexecutiveofficersduringtherelevantrecoveryperiodpursuantto§240.10D-1(b).☐ Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes☐No☒ Theaggregatemarketvalueofthevotingandnon-votingcommonstockheldbynon-affiliatesoftheregistrantonSeptember29,2023,was$3,797,950basedonatotalof4,932,404sharesoftheregistrant’scommonstockheldbynon-affiliatesonSeptember29,2023,attheclosingpriceof$0.77pershare,asreportedontheNasdaqCapitalMarket. Therewere18,773,635sharesoftheregistrant’scommonstockissuedandoutstandingonJune17,2024. DOCUMENTSINCORPORATEDBYREFERENCE Items10(astodirectorsandSection16(a)BeneficialOwnershipReportingCompliance),11,12,13and14ofPartIIIwillincorporatebyreferenceinformationfromtheregistrant’sproxystatementtobefiledwiththeSecuritiesandExchangeCommissioninconnectionwiththesolicitationofproxiesfortheregistrant’s2023annualmeetingofstockholders. TABLEOFCONTENTS Page PARTI ITEM1. Business 1 ITEM1A. RiskFactors 21 ITEM1B. UnresolvedStaffComments 36 ITEM1C. Cybersecurity 36 ITEM2. Properties 36 ITEM3. LegalProceedings 36 ITEM4. MineSafetyDisclosures 36 PARTII ITEM5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities 37 ITEM6. SelectedFinancialData 37 ITEM7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 38 ITEM7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 43 ITEM8. ConsolidatedFinancialStatementsandSupplementaryData 43 ITEM9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 44 ITEM9A. ControlsandProcedures 44 ITEM9B. OtherInformation 45 PARTIII ITEM10. Directors,ExecutiveOfficersandCorporateGovernance 46 ITEM11. ExecutiveCompensation 47 ITEM12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 47 ITEM13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 47 ITEM14. PrincipalAccountingFeesandServices 47 PARTIV ITEM15. Exhibits,FinancialStatementSchedules 48 ITEM16. Form10-KSummary 50 Signatures 51