- 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 4:30 p.m. Eastern
time today
NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) reports
financial results for the three and 12 months ended December 31,
2023 and provides a business update.
“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 Justin Hall, CEO of
NovaBay. “Last year we expanded our loyal customer base for Avenova
with a 64% year-over-year increase in online subscription-based
unit sales on Amazon.com and Avenova.com, our two most important
OTC sales channels. We achieved this while reducing our sales and
marketing spend by 17% for the year, including a 27% reduction for
the quarter, by further leveraging our digital marketing
expertise."
“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 Mr. Hall.
Fourth Quarter Financial Results
Total sales, net for the fourth quarter of 2023 were $3.7
million, an increase of 2% from $3.6 million for the prior-year
period, with the increase due to higher Avenova and wound care
product sales. Net product revenue for the fourth quarter of 2023
included $2.8 million from the eyecare and wound care segment, and
$0.9 million from the skincare segment.
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
$1.4 million, a 27% decrease from $1.9 million for the prior-year
period, reflecting lower digital advertising costs and lower
expenses for outside professional services. General and
administrative (G&A) expenses for the fourth quarter of 2023
were $1.2 million, a 51% decrease from $2.4 million for the
prior-year period, with the decrease due primarily to a decrease in
both headcount and the use of outside professional services.
Research & development (R&D) expenses also decreased for
the fourth quarter of 2023 to $4 thousand, versus $66 thousand for
the prior-year period.
The Company recorded goodwill, intangible and other asset
impairment charges for the fourth quarters of 2023 and 2022 of $2.6
million and $6.7 million, respectively, related to the impairment
of the DERMAdoctor business.
Non-cash gain on changes in fair value of warrant liability for
the fourth quarters of 2023 and 2022 were $56 thousand and $976
thousand, respectively. Non-cash gain on changes in fair value of
contingent liability for the fourth quarter of 2022 was $342
thousand and was related to the operations of DERMAdoctor, which
was recently sold.
Other expense, net for the fourth quarter of 2023 was $766
thousand, consisting primarily of interest expense and the
amortization of discounts on convertible notes issued in May 2023.
This compared with other expense, net for the fourth quarter of
2022 of $98 thousand.
Net loss attributable to common stockholders for the fourth
quarter of 2023 was $9.2 million, or $1.33 per share, which
included a non-cash adjustment of $5.1 million due to the reset of
preferred stock conversion prices. This compared with a net loss
attributable to common stockholders for the fourth quarter of 2022
of $8.2 million, or $4.33 per share.
Full Year Financial Results
Total sales, net for 2023 were $14.7 million, an increase of 2%
from $14.4 million for 2022, and included $11.2 million from the
eyecare and wound care segment, and $3.6 million from the skincare
segment.
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 $68 thousand, versus $174 thousand for the
prior year.
The Company recorded goodwill, intangible and other asset
impairment charges for 2023 and 2022 of $2.6 million and $6.7
million, respectively, related to the impairment of the DERMAdoctor
business. Goodwill, indefinite-lived intangible assets and
long-live assets related to the DERMAdoctor business were fully
impaired through December 31, 2023.
Non-cash loss on modification of common stock warrants for 2023
and 2022 was $0.3 million and $1.9 million, respectively, and
related to private placement and warrant reprice transactions.
Non-cash gain on changes in fair value of warrant liability for
2023 and 2022 were $0.3 million and $5.4 million, respectively.
Non-cash gain on changes in fair value of contingent liability for
2022 was $0.6 million with no comparable item in 2023.
Other expense, net for 2023 was $2.1 million, versus other
expense, net of $0.3 million for 2022, with the increase primarily
due to the amortization of discount and issuance costs related to
the convertible notes issued in May 2023.
Net loss attributable to common stockholders for 2023 was $16.7
million, or $3.96 per share, which included a non-cash increase to
accumulated deficit due to adjustment to preferred stock conversion
prices of $7.1 million. This compared with a net loss attributable
to common stockholders for 2022 of $16.3 million, or $10.10 per
share, which included a non-cash increase to accumulated deficit
due to adjustment to preferred stock conversion prices of $5.7
million.
NovaBay had cash and cash equivalents of $3.1 million as of
December 31, 2023, compared with $5.4 million as of December 31,
2022.
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 U.S.
or 412-317-1862 from outside the U.S., and requesting the NovaBay
Pharmaceuticals call.
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 April 15, 2024 by
dialing 877-344-7529 from within the U.S., 855-669-9658 from Canada
or 412-317-0088 from outside the U.S. and Canada, and entering the
conference identification number 1489846.
About NovaBay Pharmaceuticals, Inc.:
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 the United States.
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 Securities and Exchange Commission, especially
under the heading “Risk Factors.” The forward-looking statements in
this release speak only as of this date, and NovaBay disclaims any
intent or obligation to revise or update publicly any
forward-looking statement except as required by law.
Socialize and Stay Informed on
NovaBay’s Progress Like us on Facebook Follow us on X
Connect with NovaBay on LinkedIn Visit NovaBay’s Website
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)
December 31,
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
3,130
$
5,362
Accounts receivable, net of allowance for
credit losses ($3 and $19 at December 31, 2023 and 2022,
respectively)
759
1,973
Inventory, net of allowance for excess and
obsolete inventory and lower of cost or estimated net realizable
value adjustments ($627 and $499 at December 31, 2023 and 2022,
respectively)
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
87
119
Goodwill
—
348
Other intangible assets, net
—
2,280
Other assets
497
489
TOTAL ASSETS
$
9,034
$
16,399
LIABILITIES AND STOCKHOLDERS’
EQUITY
Liabilities:
Current liabilities:
Accounts payable
$
1,130
$
1,080
Accrued liabilities
1,516
2,724
Convertible Notes, net of discounts
1,137
—
Operating lease liabilities
495
453
Total current liabilities
4,278
4,257
Warrant liability
334
—
Operating lease
liabilities-non-current
1,108
1,588
Total liabilities
5,720
5,845
Commitments and contingencies (Note
10)
Stockholders’ equity:
Preferred stock, $0.01 par value; 5,000
shares authorized;
Series B Preferred Stock; 6 and 12 shares
issued and outstanding at December 31, 2023 and 2022,
respectively
275
570
Series C Preferred Stock; 1 and 2 shares
issued and outstanding at December 31, 2023 and 2022,
respectively
1,675
2,403
Common stock, $0.01 par value; 150,000
shares authorized, 11,230 and 2,035 shares issued and outstanding
at December 31, 2023 and 2022, respectively*
112
20
Additional paid-in capital*
176,101
165,713
Accumulated deficit
(174,849
)
(158,152
)
Total stockholders’ equity
3,314
10,554
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
9,034
$
16,399
*
After giving retroactive effect to a
1-for-35 reverse stock split that became effective November 15,
2022.
NOVABAY PHARMACEUTICALS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per
share data)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Sales: Product revenue, net $
3,716
$
3,631
$
14,687
$
14,374
Other revenue, net
11
12
39
30
Total sales, net
3,727
3,643
14,726
14,404
Product cost of goods sold
1,912
1,888
6,831
6,623
Gross profit
1,815
1,755
7,895
7,781
Operating expenses: Research and development
4
66
68
174
Sales and marketing
1,414
1,938
6,500
7,798
General and administrative
1,195
2,440
6,330
7,489
Goodwill, intangible and other asset impairment
2,593
6,737
2,593
6,737
Total operating expenses
5,206
11,181
15,491
22,198
Operating loss
(3,391
)
(9,426
)
(7,596
)
(14,417
)
Non-cash loss on modification of common stock warrants
(7
)
-
(292
)
(1,922
)
Non-cash gain on changes in fair value of warrant liability
56
976
272
5,446
Non-cash gain on changes in fair value of contingent liability
-
342
-
561
Non-cash gain on changes in fair value of combined derivative
liability
-
-
40
-
Other expense, net
(766
)
(98
)
(2,064
)
(276
)
Net loss $
(4,108
)
$
(8,206
)
$
(9,640
)
$
(10,608
)
Less: Increase to accumulated deficit due to adjustment to
Preferred Stock conversion prices
5,061
-
7,057
5,657
Net loss attributable to common stockholders $
(9,169
)
$
(8,206
)
$
(16,697
)
$
(16,265
)
Net loss per share attributable to common
stockholders (basic and diluted) *
(1.33
)
$
(4.33
)
$
(3.96
)
$
(10.10
)
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
* After giving retroactive effect to a 1-for-35 reverse
stock split that became effective November 15, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240326316206/en/
NovaBay Justin Hall Chief
Executive Officer and General Counsel 510-899-8800
jhall@novabay.com
Investor LHA Investor
Relations Jody Cain 310-691-7100 jcain@lhai.com
NovaBay Pharmaceuticals (AMEX:NBY)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
NovaBay Pharmaceuticals (AMEX:NBY)
Gráfica de Acción Histórica
De May 2023 a May 2024