NovaBay Pharmaceuticals Reports First Quarter 2024 Financial Results
- Net product sales increased 13% over the prior year driven by higher sales of Avenova®-branded products through OTC channels and branded wound care products
- Sales and marketing expenses declined 15% reflecting continued digital marketing optimization
- Ordered product sales for Avenova-branded products on Amazon.com reached new all-time records in March and April
Conference call begins at
“Net product sales growth of 13% versus the prior year was driven by higher sales of Avenova-branded products through online channels and by sales of branded wound care products,” said
“NovaBay is operating under a streamlined business model primarily focused on the large and growing eyecare market, with creative marketing programs that are resonating well with online customers,” he added. “We are working to build upon this growth by introducing new and enhanced digital media programs to cost-efficiently support our loyal customer base and reach new prospective customers.”
First Quarter Financial Results
Financial results for the first quarters of 2024 and 2023 do not include results from DERMAdoctor, which was divested on
Product sales, net for the first quarter of 2024 were
Gross margin on net product revenue for the first quarters of 2024 and 2023 remained consistent at 68%.
Sales and marketing expenses for the first quarter of 2024 were
For the first quarter of 2024, non-cash items included a gain on changes in fair value of warrant liabilities of
Other expense, net for the first quarter of 2024 was
Net loss attributable to common stockholders for the first quarter of 2024 was
NovaBay had cash and cash equivalents of
Conference Call
NovaBay management will host an investment community conference call today beginning at
Stockholders and other interested parties may also participate in the conference call by dialing 888-500-3691 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 three hours after the call ends through
About
NovaBay’s leading product Avenova® Antimicrobial Lid & Lash Solution is often prescribed by eyecare professionals for blepharitis and dry-eye disease and is available directly to consumers through online distribution channels such as Amazon.com. It is clinically proven to kill a broad spectrum of bacteria to help relieve the symptoms of bacterial dry eye, yet is non-irritating and completely safe for regular use. NovaBay offers a full portfolio of scientifically developed products for each step of the standard dry eye treatment regimen, including the Avenova Eye Health Support antioxidant-rich oral supplement, Avenova Lubricating Eye Drops for instant relief, Avenova Warm Eye Compress to soothe the eyes and the i-Chek by Avenova to monitor physical eyelid health. The Avenova Allograft, an amniotic tissue prescription-only product, is available through eyecare professionals in
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 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 NovaBay’s latest Form 10-K/Q filings with the
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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
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands, except par value amounts) |
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2024 |
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 |
|
$ |
1,823 |
|
|
$ |
2,924 |
|
Accounts receivable, net of allowance for credit losses ( |
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|
734 |
|
|
|
680 |
|
Inventory, net of allowance for excess and obsolete inventory and lower of cost or estimated net realizable value adjustments ( |
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663 |
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|
564 |
|
Prepaid expenses and other current assets |
|
|
371 |
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|
|
256 |
|
Current assets, discontinued operations |
|
|
— |
|
|
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2,730 |
|
Total current assets |
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3,591 |
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|
7,154 |
|
Operating lease right-of-use assets |
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|
1,212 |
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|
|
1,296 |
|
Property and equipment, net |
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|
77 |
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|
87 |
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Other assets |
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|
477 |
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|
|
478 |
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Other assets, discontinued operations |
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— |
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|
|
19 |
|
TOTAL ASSETS |
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$ |
5,357 |
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|
$ |
9,034 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Liabilities: |
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Current liabilities: |
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Accounts payable |
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$ |
1,117 |
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$ |
906 |
|
Accrued liabilities |
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|
1,266 |
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|
|
1,169 |
|
Secured Convertible Notes, net of discounts |
|
|
973 |
|
|
|
1,137 |
|
Unsecured Convertible Notes, net of discounts |
|
|
34 |
|
|
|
— |
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Embedded derivative liability |
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159 |
|
|
|
— |
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Operating lease liabilities |
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375 |
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|
368 |
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Current liabilities, discontinued operations |
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— |
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|
|
698 |
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Total current liabilities |
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3,924 |
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|
4,278 |
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Warrant liabilities |
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|
232 |
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|
334 |
|
Operating lease liabilities-non-current |
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1,041 |
|
|
|
1,108 |
|
Total liabilities |
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|
5,197 |
|
|
|
5,720 |
|
Commitments & contingencies |
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Stockholders’ equity: |
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Preferred stock, |
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Series B Preferred Stock; 1 and 6 shares issued and outstanding at |
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44 |
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|
275 |
|
Series C Preferred Stock; 1 shares issued and outstanding at |
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1,441 |
|
|
|
1,675 |
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Common stock, |
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|
320 |
|
|
|
112 |
|
Additional paid-in capital |
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|
176,798 |
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|
176,101 |
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Accumulated deficit |
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(178,443 |
) |
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(174,849 |
) |
Total stockholders’ equity |
|
|
160 |
|
|
|
3,314 |
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TOTAL LIABILITIESAND STOCKHOLDERS’ EQUITY |
|
$ |
5,357 |
|
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$ |
9,034 |
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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(in thousands, except per share data) |
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Three Months Ended |
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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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$ |
2,624 |
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$ |
2,332 |
|
Other revenue, net |
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|
7 |
|
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|
7 |
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Total sales, net |
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2,631 |
|
|
|
2,339 |
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Cost of goods sold |
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|
837 |
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|
|
739 |
|
Gross profit |
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|
1,794 |
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|
1,600 |
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Operating expenses |
|
|
|
|
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|
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Research and development |
|
|
19 |
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|
|
10 |
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Sales and marketing |
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1,055 |
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|
1,236 |
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General and administrative |
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2,291 |
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|
1,699 |
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Loss on divestiture of subsidiary |
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|
865 |
|
|
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— |
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Total operating expenses |
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4,230 |
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|
|
2,945 |
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Operating loss |
|
|
(2,436 |
) |
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|
(1,345 |
) |
|
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|
|
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Non-cash gain on changes in fair value of warrant liabilities |
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|
194 |
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— |
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Non-cash gain on change in fair value of embedded derivative liability |
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|
65 |
|
|
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— |
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Accretion of interest and amortization of discounts on convertible notes |
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|
(433 |
) |
|
|
— |
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Other expense, net |
|
|
(480 |
) |
|
|
— |
|
Net loss from continuing operations |
|
|
(3,090 |
) |
|
|
(1,345 |
) |
|
|
|
|
|
|
|
|
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Loss from discontinued operations |
|
|
(124 |
) |
|
|
(394 |
) |
Net loss |
|
|
(3,214 |
) |
|
|
(1,739 |
) |
Less: Increase to accumulated deficit due to adjustment to Preferred Stock conversion price |
|
|
380 |
|
|
|
— |
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Net loss attributable to common stockholders |
|
$ |
(3,594 |
) |
|
$ |
(1,739 |
) |
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|
|
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Basic and diluted net loss per share |
|
|
|
|
|
|
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Loss from continuing operations |
|
$ |
(0.14 |
) |
|
$ |
(0.66 |
) |
Loss from discontinued operations |
|
|
(0.01 |
) |
|
|
(0.19 |
) |
Net loss per share attributable to common stockholders (basic and diluted) |
|
$ |
(0.15 |
) |
|
$ |
(0.85 |
) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock (basic and diluted) |
|
|
24,672 |
|
|
|
2,035 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509593442/en/
NovaBay Contact
Chief Executive Officer and General Counsel
510-899-8800
jhall@novabay.com
Investor Contact
LHA Investor Relations
310-691-7100
jcain@lhai.com
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