Sonoma Pharmaceuticals, Inc. Segments Disclosure
NOTE 18 – Geographic Information
The Company generates product revenues from products which are sold into the human and animal healthcare markets, and the Company generates service revenues from laboratory testing services which are provided to medical device manufacturers.
The following table shows the Company’s product revenues by geographic region:
| Year Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| United States | $ | 5,419,000 | $ | 7,991,000 | ||||
| Latin America | 5,864,000 | 3,622,000 | ||||||
| Europe and Rest of the World | 7,234,000 | 6,164,000 | ||||||
| Total | $ | 18,517,000 | $ | 17,777,000 | ||||
The Company’s service revenues in Latin America amounted to $112,000 and $151,000 for the years ended March 31, 2021 and 2020, respectively.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.