- Online Avenova® sales increase 14% for the quarter and 19% for
the nine months
- Sales and marketing expenses declined 25% for the quarter and
18% for the nine months reflecting digital marketing
optimization
NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) reports
financial results for the three and nine months ended September 30,
2024.
“Avenova sales through the online channel for the quarter
increased 14% over the prior year, while we reduced our marketing
spend by 25% in the same period as we further optimized our highly
efficient digital marketing programs,” said Justin Hall, CEO of
NovaBay. “We saw continued momentum in Avenova online sales into
the current quarter. Sales through Amazon in October continued to
be strong with a successful Prime Day event.”
Financial results for the three and nine months ended September
30, 2024 and 2023 do not include results from DERMAdoctor, which
was divested on March 25, 2024 and is accounted for in discontinued
operations. Financial information about discontinued operations is
available under “Divestiture and Discontinued Operations” in the
Company’s Quarterly Report on Form 10-Q for the three months ended
September 30, 2024, which will be filed with the Securities and
Exchange Commission (the “SEC”) later today.
Third Quarter Financial Results
Total sales, net for the third quarter of 2024 were $2.4
million. Essentially all net sales for the quarter were derived
from sales of eyecare products. Total sales, net for the third
quarter of 2023 were $2.5 million, which included $2.4 million from
sales of eyecare products and $0.1 million from sales of wound care
products.
Gross margin on net sales for the third quarter of 2024 was 65%,
compared with 67% for the third quarter of 2023, with the change
primarily due to changes in the product mix.
Sales and marketing expenses for the third quarter of 2024 were
$0.9 million, a 25% decrease from $1.3 million for the prior-year
period, reflecting continued efficiencies in digital advertising
and lower consulting costs. General and administrative (G&A)
expenses for the third quarter of 2024 were $1.7 million, compared
with $1.1 million for the third quarter of 2023, with the increase
due to higher legal costs.
Accretion of interest and amortization of discounts on
convertible notes for the third quarter of 2024 was $0.1 million,
compared with $0.7 million for the third quarter of 2023.
Net loss attributable to common stockholders for the third
quarter of 2024 was $2.2 million, or $0.60 per share. This compares
with a net loss attributable to common stockholders for the third
quarter of 2023 of $1.8 million, or $13.11 per share.
Nine Month Financial Results
Total sales, net for the nine months ended September 30, 2024
were $7.5 million, compared with $8.4 million for the nine months
ended September 30, 2023.
Gross margin on net sales for the first nine months of 2024 was
67%, compared with 60% for the first nine months of 2023.
For the nine months ended September 30, 2024, sales and
marketing expenses decreased 18% and G&A expenses increased
28%, both compared with the nine months ended September 30,
2023.
Net loss attributable to common stockholders for the first nine
months of 2024 was $7.4 million, or $3.97 per share, compared with
a net loss attributable to common stockholders for the first nine
months of 2023 of $7.5 million, or $79.58 per share.
NovaBay had cash and cash equivalents of $0.8 million as of
September 30, 2024, compared with $2.9 million as of December 31,
2023. In July 2024, the Company completed an underwritten public
offering raising gross proceeds of $3.9 million.
About NovaBay Pharmaceuticals, Inc.
NovaBay's leading product Avenova® Lid & Lash Cleansing
Spray is often recommended by eyecare professionals for blepharitis
and dry eye disease. Manufactured in the U.S., Avenova spray is
formulated with NovaBay's patented, proprietary, stable and pure
form of hypochlorous acid. All Avenova products are available
directly to consumers through online distribution channels such as
Amazon.com and Avenova.com.
Forward-Looking Statements
This release contains information about management's view of the
Company's future expectations, plans and prospects that constitute
forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by the fact that they
do not relate strictly to historic or current facts. Such
forward-looking statements are based upon management’s current
expectations, assumptions, estimates, projections and beliefs.
These statements include, but are not limited to, statements
regarding our business strategies, including pursuing an asset sale
of our Avenova business and a potential dissolution and liquidation
of the Company, the expected timing of, our ability to complete,
and the financial and business impact and effect of, such asset
sale and/or such dissolution and liquidation, including with
respect to distributions in connection with the dissolution and
liquidation, and the impact and outlook for the Company’s Avenova
products and business, as well as generally the Company’s expected
future financial results. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or achievements to be materially different and
adverse from those expressed in or implied by these forward-looking
statements. Factors that might cause or contribute to such
differences include, but are not limited to, risks and
uncertainties relating to the Company’s ability to, and the time it
may take to, obtain stockholder approval of the asset sale and plan
of dissolution, the Company’s ability to continue as a going
concern while the asset sale and dissolution/liquidation are in
process and other factors not within our control that may make the
completion of the asset sale impossible or more difficult. Other
risks relating to NovaBay’s business, including risks that could
cause results to differ materially from those projected in the
forward-looking statements in this press release, are detailed in
the Company’s latest Form 10-K/Q filings and registration
statements, as may be amended from time to time, and are further
described in the definitive proxy statement that the Company filed
with the SEC on October 16, 2024 (as may be supplemented),
especially under the heading “Risk Factors.” The forward-looking
statements in this release speak only as of this date, and the
Company disclaims any intent or obligation to revise or update
publicly any forward-looking statement except as required by
law.
Socialize and Stay Informed on
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Avenova Purchasing
Information For NovaBay Avenova purchasing information:
Please call 800-890-0329 or email sales@avenova.com Avenova.com
Financial tables follow
NOVABAY PHARMACEUTICALS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value amounts)
September 30,
2024
December 31,
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
776
$
2,924
Accounts receivable, net of allowance for
credit losses ($3 at September 30, 2024 and December 31, 2023)
704
680
Inventory, net of allowance for excess and
obsolete inventory and lower of cost or estimated net realizable
value adjustments ($126 and $264 at September 30, 2024 and December
31, 2023, respectively)
473
564
Prepaid expenses and other current
assets
326
256
Current assets, discontinued
operations
—
2,730
Total current assets
2,279
7,154
Operating lease right-of-use assets
1,042
1,296
Property and equipment, net
61
87
Other assets
495
478
Other assets, discontinued operations
—
19
TOTAL ASSETS
$
3,877
$
9,034
LIABILITIES AND STOCKHOLDERS’
EQUITY
Liabilities:
Current liabilities:
Accounts payable
$
396
$
906
Accrued liabilities
1,147
1,169
Secured Convertible Notes, net of
discounts
—
1,137
Unsecured Convertible Notes, net of
discounts
51
—
Operating lease liabilities
390
368
Current liabilities, discontinued
operations
—
698
Total current liabilities
1,984
4,278
Warrant liabilities
—
334
Operating lease
liabilities-non-current
821
1,108
Total liabilities
2,805
5,720
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value; 5,000
shares authorized;
Series B Preferred Stock; 1 and 6 shares
issued and outstanding at September 30, 2024 and December 31, 2023,
respectively
6
275
Series C Preferred Stock; 0 and 1 shares
issued and outstanding at September 30, 2024 and December 31, 2023,
respectively
—
1,675
Common stock, $0.01 par value; 150,000
shares authorized, 4,885 and 321 shares issued and outstanding at
September 30, 2024 and December 31, 2023, respectively*
49
3
Additional paid-in capital*
183,262
176,210
Accumulated deficit
(182,245
)
(174,849
)
Total stockholders’ equity
1,072
3,314
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
3,877
$
9,034
*
After giving retroactive effect to a
1-for-35 Reverse Stock Split that became effective May 30,
2024.
NOVABAY PHARMACEUTICALS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per
share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Sales:
Product revenue, net
$
2,424
$
2,471
$
7,435
$
8,326
Other revenue, net
17
10
37
28
Total sales, net
2,441
2,481
7,472
8,354
Cost of goods sold
848
819
2,493
3,353
Gross profit
1,593
1,662
4,979
5,001
Operating expenses:
Research and development
4
4
32
36
Sales and marketing
947
1,263
3,021
3,674
General and administrative
1,703
1,093
5,611
4,385
Loss on divestiture of subsidiary
—
—
865
—
Total operating expenses
2,654
2,360
9,529
8,095
Operating loss
(1,061
)
(698
)
(4,550
)
(3,094
)
Non-cash gain on changes in fair value of
warrant liabilities
—
—
114
216
Non-cash (loss) gain on change in fair
value of embedded derivative liability
—
—
(18
)
40
Accretion of interest and amortization of
discounts on convertible notes
(138
)
(655
)
(871
)
(1,156
)
Extinguishment of Secured Convertible
Notes
(13
)
—
(13
)
—
Other expense, net
—
—
(549
)
(432
)
Net loss from continuing operations
(1,212
)
(1,353
)
(5,887
)
(4,426
)
Net loss from discontinued operations
—
(404
)
(124
)
(1,106
)
Net loss
(1,212
)
(1,757
)
(6,011
)
(5,532
)
Less: Increase to accumulated deficit due
to adjustment to common stock warrant exercise price
(1,005
)
—
(1,005
)
—
Less: Increase to accumulated deficit due
to adjustment to Preferred Stock conversion price
—
—
(380
)
(1,996
)
Net loss attributable to common
stockholders
$
(2,217
)
$
(1,757
)
$
(7,396
)
$
(7,528
)
Basic and diluted net loss per share
Net loss per share from continuing
operations*
$
(0.60
)
$
(10.10
)
$
(3.90
)
$
(67.89
)
Net loss per share from discontinued
operations*
—
(3.01
)
(0.07
)
(11.69
)
Net loss per share attributable to common
stockholders (basic and diluted)*
$
(0.60
)
$
(13.11
)
$
(3.97
)
$
(79.58
)
Weighted-average shares of common stock
outstanding used in computing net loss per share of common stock
(basic and diluted)*
3,710
134
1,863
95
*
After giving retroactive effect to a
1-for-35 Reverse Stock Split that became effective May 30,
2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107763026/en/
NovaBay Contact Justin Hall
Chief Executive Officer and General Counsel 510-899-8800
jhall@novabay.com
Investor Contact Alliance
Advisors IR Jody Cain 310-691-7100 jcain@allianceadvisors.com
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