NovaBay Pharmaceuticals Reports 2023 Fourth Quarter and Full Year Financial Results
- Q4 net sales from the eyecare and wound care segment grew 10% over the prior year with higher sales from the Avenova® physician dispensed and OTC channels, and from branded wound care products
- Sales and marketing expenses for the quarter declined 27% reflecting digital marketing optimization
- Divestiture of skincare segment expected to bolster cash position and reduce operating expenses
- Continued execution on eyecare growth strategy including recent co-marketing partnership
Conference call begins at
“Quarterly revenue from our eyecare and wound care segment increased 10% versus the prior year, driven by higher Avenova sales through our physician dispensed and OTC channels, and by higher sales of our branded wound care products,” said
“Further, the declining sales from skincare products prompted the recent divestiture of DERMAdoctor®, which reduces our operating expenses and better positions us to pursue strategic initiatives that have a greater potential for growth,” he added.
“We recently announced a co-promotion agreement with Eyenovia that capitalizes on our established relationships with eyecare professionals and are seeking additional strategic growth opportunities in the eyecare market,” said
Fourth Quarter Financial Results
Total sales, net for the fourth quarter of 2023 were
Gross margin on net product revenue for the fourth quarter of 2023 was 49%, compared with 48% for the fourth quarter of 2022.
Sales and marketing expenses for the fourth quarter of 2023 were
The Company recorded goodwill, intangible and other asset impairment charges for the fourth quarters of 2023 and 2022 of
Non-cash gain on changes in fair value of warrant liability for the fourth quarters of 2023 and 2022 were
Other expense, net for the fourth quarter of 2023 was
Net loss attributable to common stockholders for the fourth quarter of 2023 was
Full Year Financial Results
Total sales, net for 2023 were
Gross margin on net product revenue remained relatively unchanged for 2023 and 2022 at 54%.
For 2023, sales and marketing expenses decreased by 17% and G&A expenses decreased by 15%, both compared with 2022. R&D expenses for 2023 were
The Company recorded goodwill, intangible and other asset impairment charges for 2023 and 2022 of
Non-cash loss on modification of common stock warrants for 2023 and 2022 was
Other expense, net for 2023 was
Net loss attributable to common stockholders for 2023 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 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
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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2023 |
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2022 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
|
$ |
3,130 |
|
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$ |
5,362 |
|
Accounts receivable, net of allowance for credit losses ( |
|
|
759 |
|
|
|
1,973 |
|
Inventory, net of allowance for excess and obsolete inventory and lower of cost or estimated net realizable value adjustments ( |
|
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2,877 |
|
|
|
3,437 |
|
Prepaid expenses and other current assets |
|
|
388 |
|
|
|
560 |
|
Total current assets |
|
|
7,154 |
|
|
|
11,332 |
|
Operating lease right-of-use assets |
|
|
1,296 |
|
|
|
1,831 |
|
Property and equipment, net |
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|
87 |
|
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|
119 |
|
|
|
|
— |
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|
348 |
|
Other intangible assets, net |
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— |
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|
2,280 |
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Other assets |
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|
497 |
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|
|
489 |
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TOTAL ASSETS |
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$ |
9,034 |
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$ |
16,399 |
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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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$ |
1,130 |
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$ |
1,080 |
|
Accrued liabilities |
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1,516 |
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|
|
2,724 |
|
Convertible Notes, net of discounts |
|
|
1,137 |
|
|
|
— |
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Operating lease liabilities |
|
|
495 |
|
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|
453 |
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Total current liabilities |
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4,278 |
|
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|
4,257 |
|
Warrant liability |
|
|
334 |
|
|
|
— |
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Operating lease liabilities-non-current |
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1,108 |
|
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|
1,588 |
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Total liabilities |
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5,720 |
|
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|
5,845 |
|
Commitments and contingencies (Note 10) |
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Stockholders’ equity: |
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Preferred stock, |
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Series B Preferred Stock; 6 and 12 shares issued and outstanding at |
|
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275 |
|
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|
570 |
|
Series C Preferred Stock; 1 and 2 shares issued and outstanding at |
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1,675 |
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|
2,403 |
|
Common stock, |
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112 |
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20 |
|
Additional paid-in capital* |
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176,101 |
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165,713 |
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Accumulated deficit |
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(174,849 |
) |
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(158,152 |
) |
Total stockholders’ equity |
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|
3,314 |
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|
10,554 |
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TOTAL LIABILITIESAND STOCKHOLDERS’ EQUITY |
|
$ |
9,034 |
|
|
$ |
16,399 |
|
|
* |
After giving retroactive effect to a 1-for-35 reverse stock split that became effective
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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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Year Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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Sales: | ||||||||||||||||
Product revenue, net | $ |
3,716 |
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$ |
3,631 |
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$ |
14,687 |
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$ |
14,374 |
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Other revenue, net |
11 |
|
12 |
|
39 |
|
30 |
|
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Total sales, net |
3,727 |
|
3,643 |
|
14,726 |
|
14,404 |
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Product cost of goods sold |
1,912 |
|
1,888 |
|
6,831 |
|
6,623 |
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Gross profit |
1,815 |
|
1,755 |
|
7,895 |
|
7,781 |
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Operating expenses: | ||||||||||||||||
Research and development |
4 |
|
66 |
|
68 |
|
174 |
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Sales and marketing |
1,414 |
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1,938 |
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6,500 |
|
7,798 |
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General and administrative |
1,195 |
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2,440 |
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6,330 |
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7,489 |
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|
2,593 |
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6,737 |
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2,593 |
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6,737 |
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Total operating expenses |
5,206 |
|
11,181 |
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15,491 |
|
22,198 |
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Operating loss |
(3,391 |
) |
(9,426 |
) |
(7,596 |
) |
(14,417 |
) |
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Non-cash loss on modification of common stock warrants |
(7 |
) |
- |
|
(292 |
) |
(1,922 |
) |
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Non-cash gain on changes in fair value of warrant liability |
56 |
|
976 |
|
272 |
|
5,446 |
|
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Non-cash gain on changes in fair value of contingent liability |
- |
|
342 |
|
- |
|
561 |
|
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Non-cash gain on changes in fair value of combined derivative liability |
- |
|
- |
|
40 |
|
- |
|
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Other expense, net |
(766 |
) |
(98 |
) |
(2,064 |
) |
(276 |
) |
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Net loss | $ |
(4,108 |
) |
$ |
(8,206 |
) |
$ |
(9,640 |
) |
$ |
(10,608 |
) |
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Less: Increase to accumulated deficit due to adjustment | ||||||||||||||||
to Preferred Stock conversion prices |
5,061 |
|
- |
|
7,057 |
|
5,657 |
|
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Net loss attributable to common stockholders | $ |
(9,169 |
) |
$ |
(8,206 |
) |
$ |
(16,697 |
) |
$ |
(16,265 |
) |
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Net loss per share attributable to common stockholders (basic and diluted) * |
(1.33 |
) |
$ |
(4.33 |
) |
$ |
(3.96 |
) |
$ |
(10.10 |
) |
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Weighted-average shares of common stock used in computing net loss per share attributable to common stockholders (basic and diluted) * |
6,897 |
|
1,893 |
|
4,215 |
|
1,610 |
|
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* After giving retroactive effect to a 1-for-35 reverse stock split that became effective |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240326316206/en/
NovaBay
Chief Executive Officer and General Counsel
510-899-8800
jhall@novabay.com
Investor
LHA Investor Relations
310-691-7100
jcain@lhai.com
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