NovaBay Pharmaceuticals, Inc. (NYSE:NBY) Q1 2022 Earnings Conference Call May 12, 2022 4:30 PM ET Company Participants Jody Cain - LHA Investor Relations Justin Hall - Chief Executive Officer and General Counsel Andy Jones - Chief Financial Officer Conference Call Participants Destiny Hance - Ladenburg Thalmann Edward Woo - Ascendiant Capital Markets Operator Good afternoon and welcome to NovaBay Pharmaceuticals First Quarter 2022 Financial Results Conference Call. All participants will be in listen-only m ...

Financial Performance - The company incurred a net loss of $111 thousand for the three months ended March 31, 2022, compared to a net loss of $1.5 million for the same period in 2021 [171]. - As of March 31, 2022, the company had an accumulated deficit of $142 million and current assets totaling $12.5 million [171]. - Product revenue increased by $0.8 million, or 46%, to $2.6 million for the three months ended March 31, 2022, compared to $1.8 million for the same period in 2021 [207]. - Gross profit increased by 12%, reaching $1.5 million for the three months ended March 31, 2022, compared to $1.4 million for the same period in 2021 [213]. - Non-cash gain on changes in fair value of warrant liability was $2.1 million for the three months ended March 31, 2022, following the reclassification of the warrant liability to equity [218]. - Net cash used in operating activities was $2.1 million for the three months ended March 31, 2022, primarily due to a net loss of $111 thousand [221]. - As of March 31, 2022, cash and cash equivalents were $5.6 million, down from $7.5 million as of December 31, 2021 [220]. Acquisition and Product Development - The company acquired DERMAdoctor, LLC for approximately $12.0 million, with an additional $3.0 million contingent consideration based on achieving specific contribution margin targets [168]. - The acquisition of DERMAdoctor contributed $0.9 million in product revenue for the three months ended March 31, 2022, with no comparable revenue in 2021 [211]. - The company expanded its Avenova product offerings, adding Avenova Moist Heating Eye Compress and i-Chek, and partnered with ImprimisRx to promote Avenova Spray [170]. Sales and Marketing Strategy - The company expects to grow commercial sales of Avenova and DERMAdoctor branded products through domestic and international market expansion, particularly focusing on online channels [172]. - The company anticipates focusing sales and marketing resources on the DERMAdoctor brand moving forward [214]. - Revenue from Avenova Spray decreased by $0.2 million to $1.4 million for the three months ended March 31, 2022, due to increased returns from retail pharmacies [210]. - DERMAdoctor products experience higher sales in summer for sunscreen and antiperspirants, and in fall/winter for moisturizers, with a notable uptick during the fourth quarter holidays, especially in the U.S. and China [232]. Expenses and Inventory Management - General and administrative expenses increased by $1.0 million, or 84%, to $2.2 million for the three months ended March 31, 2022, from $1.2 million for the same period in 2021 [215]. - Cost of goods sold rose by 145%, to $1.1 million for the three months ended March 31, 2022, from $0.5 million for the same period in 2021, primarily due to $0.5 million in costs from DERMAdoctor products [212]. - Advertising expenses were $0.6 million for the three months ended March 31, 2022, down from $0.7 million in the same period in 2021 [197]. - The company recorded an allowance for excess and obsolete inventory adjustments of $522 thousand as of March 31, 2022 [177]. Financial Obligations and Risk Management - As of March 31, 2022, total contractual obligations amounted to $2.68 million, with facility leases accounting for $2.67 million and equipment leases for $9 thousand [233]. - The total commitment for facility leases increased from $0.5 million as of December 31, 2021, to $2.7 million as of March 31, 2022 [234]. - The company has limited exposure to market risk, primarily interest rate risk on cash and cash equivalents, with a 10% change in interest rates having an immaterial effect on the investment portfolio [237]. - The investment policy focuses on high-quality investments, capital preservation, liquidity assurance, and minimizing capital taxation, with no use of derivative financial instruments [237]. - The company maintains cash and cash equivalents in short-term marketable securities to mitigate interest rate risk [237]. - There has been no material exposure to foreign currency rate fluctuations due to the focus on the domestic U.S. market [238].

NovaBay Pharmaceuticals, Inc. (NYSE:NBY) Q4 2021 Earnings Conference Call March 29, 2022 4:30 PM ET Company Participants Jody Cain - Investor Relations Justin Hall - Chief Executive Officer and General Counsel Andy Jones - Chief Financial Officer Conference Call Participants Destiny Hance - Ladenburg Thalmann Ed Woo - Ascendiant Capital Operator Good afternoon and welcome to the NovaBay Pharmaceuticals Fourth Quarter 2021 Financial Results Conference Call. All participants will be in listen-only mode. [Oper ...

Financial Performance - The company incurred net losses of $5.8 million and $11.0 million for the years ended December 31, 2021, and 2020, respectively, with an accumulated deficit of $141.9 million as of December 31, 2021[145]. - Product revenue decreased by $1.5 million, or 15%, to $8.4 million for the year ended December 31, 2021, compared to $9.9 million for the year ended December 31, 2020[177]. - Gross profit decreased by $0.3 million, or 5%, to $5.6 million for the year ended December 31, 2021, from $6.0 million for the year ended December 31, 2020[183]. - The net loss for 2021 was $5,824,000, an improvement from a net loss of $11,039,000 in 2020[246]. - Net loss attributable to common stockholders for 2021 was $6,559,000, compared to $11,039,000 in 2020[246]. - The basic and diluted net loss per share for 2021 was $(0.15), an improvement from $(0.31) in 2020[312]. Revenue and Sales - The company expects to grow commercial sales of Avenova and DERMAdoctor branded products through domestic and international market expansion, particularly focusing on online channels[146]. - Total net sales for 2021 were $8,421,000, a decrease of 15.2% from $9,934,000 in 2020[246]. - Avenova Spray revenue from major distribution partners increased to 59% in 2021 from 50% in 2020, indicating a significant growth in direct sales through Amazon[271]. - Total sales for the quarter were $2,641,000, up from $1,840,000 in the prior quarter, reflecting a growth of 43%[201]. Expenses - Total operating expenses increased to $14,507,000 in 2021, up 17.1% from $12,390,000 in 2020[246]. - Sales and marketing expenses increased by $1.0 million, or 17%, to $7.2 million for the year ended December 31, 2021, from $6.2 million for the year ended December 31, 2020[185]. - General and administrative expenses increased by $1.3 million, or 22%, to $7.2 million for the year ended December 31, 2021, from $5.9 million for the year ended December 31, 2020[186]. - Research and development expenses decreased by $241 thousand, or 85%, to $44 thousand for the year ended December 31, 2021, from $285 thousand for the year ended December 31, 2020[184]. Cash Flow and Liquidity - Net cash used in operating activities was $9.2 million for the year ended December 31, 2021, compared to $4.7 million for the year ended December 31, 2020[194]. - Cash used in investing activities was $12.0 million for the year ended December 31, 2021, primarily due to the DERMAdoctor Acquisition[196]. - Net cash provided by financing activities was $17.0 million for the year ended December 31, 2021, including net proceeds of $14.9 million from the 2021 Private Placement[197]. - Cash and cash equivalents decreased to $7.504 million in 2021 from $11.952 million in 2020, a decline of approximately 37.5%[244]. Acquisition and Integration - The company acquired DERMAdoctor, LLC for approximately $12.0 million, with an additional $3.0 million in contingent consideration based on achieving specific contribution margin targets[141]. - The company recorded a goodwill of $4.528 million and other intangible assets of $5.200 million following the acquisition of DERMAdoctor, LLC on November 5, 2021[224]. - The total net assets acquired from DERMAdoctor amounted to $8.039 million, with goodwill of $4.528 million attributed to assembled workforce and expected synergies[320]. - The Company recognized approximately $1.2 million in transaction costs related to the DERMAdoctor Acquisition, recorded in general and administrative expenses[323]. Inventory and Assets - As of December 31, 2021, total assets increased to $23.978 million from $15.238 million in 2020, representing a growth of approximately 57.5%[244]. - Inventory levels rose to $3.220 million in 2021 from $0.608 million in 2020, an increase of approximately 429.5%[244]. - The company recorded an allowance for excess and obsolete inventory adjustments of $641 thousand and $236 thousand as of December 31, 2021, and 2020, respectively[150]. - Accounts receivable increased to $1.668 million in 2021 from $1.106 million in 2020, reflecting a growth of approximately 51%[244]. Liabilities - Total liabilities rose significantly to $13.807 million in 2021 from $2.920 million in 2020, marking an increase of approximately 373.5%[244]. - The contingent earnout liability associated with the DERMAdoctor acquisition was recorded at $0.561 million as of December 31, 2021[228]. Market and Economic Conditions - The company does not expect inflation to materially impact its business in the near future[203]. - The company relies on seven contract manufacturers for product production, which may lead to supply chain risks, particularly in light of the COVID-19 pandemic[273].

NovaBay Pharmaceuticals, Inc. (NYSE:NBY) Q3 2021 Earnings Conference Call November 11, 2021 4:30 PM ET Company Participants Jody Cain ??? Investor Relations, LHA Justin Hall ??? Chief Executive Officer and General Counsel Andy Jones ??? Chief Financial Officer Audrey Kunin ??? Chief Product Officer Conference Call Participants Jeffrey Cohen ??? Ladenburg Thalmann Edward Woo ??? Ascendiant Capital Operator Good day, and welcome to the NovaBay Pharmaceuticals Third Quarter 2021 Financial Results Conference Ca ...

Product Performance - Avenova, the company's leading product, has shown strong sales performance, becoming the top product by unit sales and net revenue despite a lower average net selling price compared to pharmacy channels [180]. - The launch of over-the-counter Avenova in Q2 2019 significantly expanded the addressable market, allowing consumers to purchase without a prescription, which proved beneficial during the COVID-19 pandemic [178][179]. - Avenova revenue increased by 16% to $5.2 million for the nine months ended September 30, 2021, from $4.5 million for the same period in 2020 [219]. Financial Performance - Product revenue, net, decreased by $0.3 million, or 15%, to $1.8 million for the three months ended September 30, 2021, compared to $2.2 million for the same period in 2020 [206]. - Total sales, net, decreased by $0.3 million, or 15%, to $1.8 million for the three months ended September 30, 2021, from $2.2 million for the same period in 2020 [206]. - Gross profit decreased by $0.3 million, to $1.3 million for the three months ended September 30, 2021, from $1.6 million for the same period in 2020 [210]. - Product revenue, net, decreased by $2.3 million, or 28%, to $5.8 million for the nine months ended September 30, 2021, from $8.0 million for the same period in 2020 [217]. - Operating loss increased by $1.0 million, or 21%, to $5.7 million for the nine months ended September 30, 2021, from $4.7 million for the same period in 2020 [217]. - Net loss and comprehensive loss was $5.7 million for the nine months ended September 30, 2021, compared to $9.3 million for the same period in 2020, a decrease of $3.6 million or 39% [217]. Cost Management - Cost of goods sold decreased by $1.6 million, or 51%, to $1.6 million for the nine months ended September 30, 2021, from $3.2 million for the same period in 2020 [220]. - Research and development expenses decreased by $213 thousand to $36 thousand for the nine months ended September 30, 2021, from $249 thousand for the same period in 2020 [222]. - Sales and marketing expenses increased by $0.6 million, or 14%, to $5.3 million for the nine months ended September 30, 2021, compared to $4.7 million for the same period in 2020 [224]. Cash Flow and Financing - Net cash used in operating activities was $4.9 million for the nine months ended September 30, 2021, consisting primarily of a net loss of $5.7 million [230]. - Cash and cash equivalents decreased to $9.0 million as of September 30, 2021, from $12.0 million as of December 31, 2020 [229]. - Net cash provided by financing activities was $2.0 million for the nine months ended September 30, 2021, primarily from the ATM program [234]. - The Company completed a Private Placement for gross proceeds of $15.0 million on November 2, 2021 [242]. Strategic Focus - The company has shifted focus back to its core eyecare business after experiencing a significant decrease in PPE sales, which were previously significant during Q2 2020 [184]. - The company introduced two complementary products, Warm Eye Compress and i-Chek Illuminated Eye Examination Mirror, to enhance the effectiveness of Avenova and provide a holistic approach to eye care [185]. - The company does not anticipate dedicating future resources toward the sale of KN95 Masks or other PPE, expecting no revenue from these products in 2021 or beyond [218]. Operational Efficiency - The company recorded no reserve for accounts receivable at September 30, 2021, indicating effective management of credit risk [188]. - Inventory adjustments for excess and obsolete inventory were recorded at $0.1 million and $0.2 million as of September 30, 2021, and December 31, 2020, respectively [189]. - Revenue generated through the company's webstores and partner pharmacies is recognized upon fulfillment, ensuring timely revenue recognition [192][195]. Employee Compensation - Stock-based compensation expenses are recognized based on fair values as they are earned, indicating a structured approach to employee incentives [199]. - General and administrative expenses remained consistent for the nine months ended September 30, 2021, and 2020 [225]. Other Financial Information - Other income decreased to $2 thousand for the nine months ended September 30, 2021, from $605 thousand for the same period in 2020 [228]. - The Company had no off-balance sheet arrangements as of September 30, 2021 [237]. - Contractual cash commitments as of September 30, 2021, totaled $202 thousand, primarily for facility and equipment leases [239]. - The acquisition of DERMAdoctor was completed on November 5, 2021, making it a wholly-owned subsidiary [243].

NovaBay Pharmaceuticals, Inc. (NYSE:NBY) DERMAdoctor Acquisition Conference Call September 29, 2021 4:30 PM ET Company Participants Jody Cain - SVP, LHA, IR Justin Hall - CEO Audrey Kunin - DERMAdoctor, Co-Founder and Chief Product Officer Jeffrey Kunin - DERMAdoctor President, CEO and Co-Founder Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann & Co. Inc. Edward Woo - Ascendiant Capital Markets, LLC Operator Welcome to the NovaBay Pharmaceuticals and DERMAdoctor Acquisition Conference Call. A ...

NovaBay Pharmaceuticals DERMAdoctor Transaction Conference Call Speakers: Justin M. Hall NovaBay CEO Dr. Audrey Kunin DERMAdoctor co-founder & Chief Product Officer September 29, 2021 - DERMAdoctor® ltle Official! We're thrilled to announce that DERMAdoctor NYSE American: NBY | Novabay.com | Avenova.com | Cellerx.com | Dermadoctor.com | Forward-Looking Statements This presentation contains forward-looking statements, within the meaning of applicable U.S. securities laws, which statements can, in some cases, ...

NovaBay Pharmaceuticals, Inc. (NYSE:NBY) Q2 2021 Earnings Conference Call August 12, 2021 4:30 PM ET Company Participants Jody Cain - IR-LHA Justin Hall - CEO and General Counsel Andy Jones - CFO Conference Call Participants Operator Good day, and welcome to the NovaBay Pharmaceuticals Second Quarter 2021 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Jody Cain. Please go ahead. Jody Cain This is Jo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33678 NOVABAY PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware 68-0454536 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 2000 Powell Street, Suite 1150, Emery ...