NovaBay Pharmaceuticals Reports Second Quarter 2024 Financial Results
-
Eyecare product revenue increased
8% driven by higher sales of Avenova®-branded products through online channels -
Sales and marketing expenses declined
13% reflecting efficient growth through digital marketing optimization -
Balance sheet strengthened with
$3.9 million
Conference call begins at 4:30 p.m. Eastern time today
“Revenue growth was driven by higher Avenova sales through online channels including an expanded subscription customer base,” said Justin Hall, CEO of NovaBay. “The number of Subscribe & Save customers on Amazon.com increased
“Following the close of the quarter we completed a capital raise that strengthened our balance sheet, allowing us to pursue strategic and fundamental transactions from a position of strength,” he added.
Second Quarter Financial Results
Financial results for the three and six months ended June 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 quarter ended June 30, 2024, which will be filed with the Securities and Exchange Commission (the “SEC”) later today.
Total sales, net for the second quarter of 2024 were
Gross margin on net sales for the second quarter of 2024 was
Sales and marketing expenses for the second quarter of 2024 were
Non-cash items for the second quarter of 2024 included a loss on the change in fair value of warrant liabilities of
Other expense, net for the second quarter of 2024 was
Net loss attributable to common stockholders for the second quarter of 2024 was
Six Month Financial Results
Total sales, net for the six months ended June 30, 2024 was
Gross margin on net sales for the first half of 2024 increased to
For the six months ended June 30, 2024, sales and marketing expenses decreased
Net loss attributable to common stockholders for the first half of 2024 was
NovaBay had cash and cash equivalents of
Conference Call
NovaBay management will host an investment community conference call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss the Company’s financial and operational results and answer questions. Participants can pre-register for the conference call here. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
Stockholders and other interested parties may also participate in the conference call by dialing 833-816-1121 from within the
A live webcast of the call will be available here and will be archived for 90 days. A replay of the call will be available beginning two hours after the call ends through September 3, 2024 by dialing 877-344-7529 from within the
About NovaBay Pharmaceuticals, Inc.
NovaBay's leading product Avenova® Antimicrobial Lid & Lash Solution is often recommended by eyecare professionals for blepharitis and dry eye disease. Manufactured in the
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, commercial progress, current and potential future product offerings, expanded access to our products through new and existing sales channels, and any future revenue, and the timing of such revenue, that may result from selling these products, 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 size of the potential market for our products, the Company’s products not being able to penetrate one or more targeted markets and the Company’s ability to continue as a going concern and revenues (or the execution on capital raise opportunities) not being sufficient to meet the Company’s cash needs. 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, with the SEC, 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.
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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) |
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June 30, 2024 |
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December 31, 2023 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
|
$ |
751 |
|
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$ |
2,924 |
|
Accounts receivable, net of allowance for credit losses ( |
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|
547 |
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|
680 |
|
Inventory, net of allowance for excess and obsolete inventory and lower of cost or estimated net realizable value adjustments ( |
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700 |
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|
564 |
|
Prepaid expenses and other current assets |
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255 |
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|
256 |
|
Current assets, discontinued operations |
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|
— |
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2,730 |
|
Total current assets |
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|
2,253 |
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|
7,154 |
|
Operating lease right-of-use assets |
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|
1,128 |
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|
1,296 |
|
Property and equipment, net |
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|
68 |
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|
87 |
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Other assets |
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|
476 |
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|
|
478 |
|
Other assets, discontinued operations |
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|
— |
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|
19 |
|
TOTAL ASSETS |
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$ |
3,925 |
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$ |
9,034 |
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|
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LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
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Liabilities: |
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Current liabilities: |
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Accounts payable |
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$ |
1,235 |
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$ |
906 |
|
Accrued liabilities |
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|
1,297 |
|
|
|
1,169 |
|
Secured Convertible Notes, net of discounts |
|
|
655 |
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|
|
1,137 |
|
Unsecured Convertible Notes, net of discounts |
|
|
41 |
|
|
|
— |
|
Operating lease liabilities |
|
|
382 |
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|
|
368 |
|
Current liabilities, discontinued operations |
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|
— |
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|
698 |
|
Total current liabilities |
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|
3,610 |
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|
|
4,278 |
|
Warrant liabilities |
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|
— |
|
|
|
334 |
|
Operating lease liabilities-non-current |
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|
932 |
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|
|
1,108 |
|
Total liabilities |
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4,542 |
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|
5,720 |
|
Commitments and contingencies |
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Stockholders’ (deficit) equity: |
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Preferred stock, |
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Series B Preferred Stock; 1 and 6 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively |
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6 |
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|
|
275 |
|
Series C Preferred Stock; 0 and 1 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively |
|
|
— |
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|
|
1,675 |
|
Common stock, |
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|
13 |
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|
3 |
|
Additional paid-in capital* |
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179,392 |
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|
176,210 |
|
Accumulated deficit |
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|
(180,028 |
) |
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|
(174,849 |
) |
Total stockholders’ (deficit) equity |
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|
(617 |
) |
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|
3,314 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
|
$ |
3,925 |
|
|
$ |
9,034 |
|
NOVABAY PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) |
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Three Months Ended
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Sales: |
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Product revenue, net |
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$ |
2,387 |
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$ |
3,523 |
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$ |
5,011 |
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$ |
5,855 |
|
Other revenue, net |
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13 |
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|
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11 |
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|
20 |
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|
|
18 |
|
Total sales, net |
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2,400 |
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|
3,534 |
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|
5,031 |
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|
5,873 |
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Cost of goods sold |
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808 |
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|
1,795 |
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|
|
1,645 |
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|
2,534 |
|
Gross profit |
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1,592 |
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|
1,739 |
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|
3,386 |
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|
3,339 |
|
Operating expenses: |
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Research and development |
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9 |
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22 |
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28 |
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|
32 |
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Sales and marketing |
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1,019 |
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|
1,175 |
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|
|
2,074 |
|
|
|
2,411 |
|
General and administrative |
|
|
1,617 |
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|
|
1,593 |
|
|
|
3,908 |
|
|
|
3,292 |
|
Loss on divestiture of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
865 |
|
|
|
— |
|
Total operating expenses |
|
|
2,645 |
|
|
|
2,790 |
|
|
|
6,875 |
|
|
|
5,735 |
|
Operating loss |
|
|
(1,053 |
) |
|
|
(1,051 |
) |
|
|
(3,489 |
) |
|
|
(2,396 |
) |
Non-cash (loss) gain on changes in fair value of warrant liabilities |
|
|
(80 |
) |
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|
216 |
|
|
|
114 |
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|
216 |
|
Non-cash (loss) gain on change in fair value of embedded derivative liability |
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(83 |
) |
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|
40 |
|
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|
(18 |
) |
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|
40 |
|
Accretion of interest and amortization of discounts on convertible notes |
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|
(300 |
) |
|
|
(501 |
) |
|
|
(733 |
) |
|
|
(501 |
) |
Other expense, net |
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|
(69 |
) |
|
|
(432 |
) |
|
|
(549 |
) |
|
|
(432 |
) |
Net loss from continuing operations |
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|
(1,585 |
) |
|
|
(1,728 |
) |
|
|
(4,675 |
) |
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|
(3,073 |
) |
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Net loss from discontinued operations |
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— |
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|
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(308 |
) |
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|
(124 |
) |
|
|
(702 |
) |
Net loss |
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|
(1,585 |
) |
|
|
(2,036 |
) |
|
|
(4,799 |
) |
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|
(3,775 |
) |
Less: Increase to accumulated deficit due to adjustment to Preferred Stock conversion price |
|
|
— |
|
|
|
(1,996 |
) |
|
|
(380 |
) |
|
|
(1,996 |
) |
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Net loss attributable to common stockholders |
|
$ |
(1,585 |
) |
|
$ |
(4,032 |
) |
|
$ |
(5,179 |
) |
|
$ |
(5,771 |
) |
|
|
|
|
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Basic and diluted net loss per share |
|
|
|
|
|
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|
|
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Net loss per share from continuing operations* |
|
$ |
(1.37 |
) |
|
$ |
(41.04 |
) |
|
$ |
(5.44 |
) |
|
$ |
(68.00 |
) |
Net loss per share from discontinued operations* |
|
|
— |
|
|
|
(3.39 |
) |
|
|
(0.13 |
) |
|
|
(9.42 |
) |
Net loss per share attributable to common stockholders (basic and diluted)* |
|
$ |
(1.37 |
) |
|
$ |
(44.43 |
) |
|
$ |
(5.57 |
) |
|
$ |
(77.42 |
) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock (basic and diluted)* |
|
|
1,155 |
|
|
|
91 |
|
|
|
930 |
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|
|
75 |
|
* 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/20240813722587/en/
NovaBay Contact
Justin Hall
Chief Executive Officer and General Counsel
510-899-8800
jhall@novabay.com
Investor Contact
LHA Investor Relations
Jody Cain
310-691-7100
jcain@lhai.com
Source: NovaBay Pharmaceuticals, Inc.
