Financial Data and Key Metrics Changes - Total net sales for Q2 2024 were $2.4 million, an 8% increase from the prior year, driven by higher sales of eyecare products [10] - Gross margin on net product revenue for Q2 2024 was 66%, up from 49% in Q2 2023, primarily due to increased sales of higher-margin eyecare products [10] - Net loss attributable to common stockholders for Q2 2024 was $1.6 million or $1.37 per share, compared to a net loss of $4 million or $44.43 per share in Q2 2023 [12] - For the first half of 2024, net sales were $5 million, down from $5.9 million in the same period of 2023 [13] Business Line Data and Key Metrics Changes - Sales from eyecare products for the first half of 2024 reached $4.8 million, compared to $4.4 million in the prior year [13] - Subscription sales accounted for approximately 24% of all online Avenova revenue for the first half of 2024 [6] - The number of Avenova Subscribe & Save customers on Amazon increased by 123% since the beginning of 2022 [5] Market Data and Key Metrics Changes - The U.S. dry eye market is expected to exceed $4.8 billion by 2030, driven by factors such as increased screen time and an aging population [7] - A survey indicated that over 80% of optometrists find dry eye diagnosis and treatment important for revenue generation, with dry eye expected to account for 43% of their clinical focus in the coming year [7] Company Strategy and Development Direction - The company is focusing on expanding its Avenova product portfolio to address the multifaceted nature of dry eye [6] - A strategic capital raise was completed to pursue potential transformative transactions [16] - The company aims to maintain efficient growth in the eyecare market while optimizing sales and marketing expenses through digital programs [16] Management's Comments on Operating Environment and Future Outlook - Management expects some orders for wound care products later in the year, but not as large as in 2023 [17] - The company anticipates a stronger Q4 due to seasonal pushes in the physician-dispensed channel and back-to-school promotions [23] - Management emphasized the importance of the physician-dispensed channel for customer acquisition and brand building [25] Other Important Information - The company had cash and cash equivalents of $0.8 million as of June 30, 2024, and raised approximately $3.9 million in a public offering [14] - Nonrecurring strategic initiative costs related to the DERMAdoctor divestiture impacted G&A expenses [13] Q&A Session Summary Question: Any commentary on revenue from wound care products? - Management expects some orders later this year but not as significant as in 2023 [17] Question: Insights on marketing strategy efficiencies? - The company shifted focus to retaining Subscribe & Save customers, reducing customer acquisition costs [18][19] Question: Portion of revenue from Subscribe & Save program? - Approximately 24% of online revenue comes from the Subscribe & Save program, with most customers purchasing monthly [21][22] Question: Expectations for Q3 and Q4 revenue? - Management anticipates incremental increases in Q3 and a stronger Q4 due to seasonal promotions [23] Question: Discussion on physician-dispensed channels? - The physician-dispensed channel is crucial for brand building and customer acquisition, feeding new customers into online sales [25][26] Question: Changes in distribution costs or advertising on Amazon? - Advertising costs have remained consistent, with no significant increases noted [32]

Financial Performance - Net losses for the three months ended June 30, 2024, were $1.6 million, compared to $4.0 million for the same period in 2023; for the six months ended June 30, 2024, net losses were $5.2 million, down from $5.8 million in 2023[201]. - The company incurred a loss of $0.9 million from the divestiture of DERMAdoctor for the six months ended June 30, 2024, with no comparable activity in the prior year[225]. - Net loss from continuing operations was $1.6 million for the three months ended June 30, 2024, compared to a net loss of $1.7 million for the same period in 2023, representing an improvement of $0.1 million or 8%[210]. - The company expects its 2024 expenses to exceed revenues, continuing to incur operating losses and negative cash flows until revenues support ongoing growth[230]. Revenue and Sales - Product revenue decreased by $1.1 million, or 32%, to $2.4 million for the three months ended June 30, 2024, compared to $3.5 million for the same period in 2023[213]. - Total sales decreased by $1.1 million, or 32%, to $2.4 million for the three months ended June 30, 2024, from $3.5 million in the prior year[213]. - Product revenue for the six months ended June 30, 2024, decreased by $0.8 million, or 14%, to $5.0 million from $5.9 million in the same period in 2023[221]. Costs and Expenses - Cost of goods sold decreased by $1.0 million, or 55%, to $0.8 million for the three months ended June 30, 2024, from $1.8 million for the same period in 2023[214]. - Cost of goods sold for the six months ended June 30, 2024, decreased by $0.9 million, or 35%, to $1.6 million from $2.5 million in the prior year[222]. - Sales and marketing expenses decreased by $0.2 million, or 13%, to $1.0 million for the three months ended June 30, 2024, from $1.2 million in the prior year[215]. - General and administrative expenses remained consistent at $1.6 million for the three months ended June 30, 2024, compared to $1.6 million for the same period in 2023[216]. - General and administrative expenses increased by $0.6 million, or 19%, to $3.9 million for the six months ended June 30, 2024, primarily due to increased legal costs[224]. Assets and Liabilities - As of June 30, 2024, the company had an accumulated deficit of $180.0 million, total current assets of $2.3 million, and total assets of $3.9 million[201]. - Cash and cash equivalents decreased to $0.8 million as of June 30, 2024, down from $2.9 million as of December 31, 2023[229]. - The company had net operating loss carryforwards of $139.3 million for federal income tax purposes as of December 31, 2023[237]. Compliance and Regulatory - The company received notifications from NYSE American regarding non-compliance with stockholders' equity requirements, reporting only $160 thousand as of March 31, 2024[198]. - The company has until October 18, 2025, to regain compliance with NYSE American's listing standards, following acceptance of its compliance plan[199]. Strategic Initiatives - The company expects to grow commercial sales of Avenova branded products through expanded domestic market penetration and partnerships with other eyecare product providers[201]. - The company is evaluating plans to address liquidity needs, including raising additional capital and potential strategic transactions[231]. Product Information - Avenova® Antimicrobial Lid and Lash Solution is cleared by the FDA and is available through online channels and eyecare professionals for treating blepharitis and dry eye disease[190]. - The company manufactures and sells hypochlorous acid products for wound care under the NeutroPhase and PhaseOne brands, targeting surgical procedures and various injuries[191]. Cash Flow - Net cash used in operating activities from continuing operations was $2.2 million for the six months ended June 30, 2024, compared to $2.9 million for the same period in 2023[232][233]. - Net cash provided by investing activities was $1.1 million for the six months ended June 30, 2024, primarily from the DERMAdoctor Divestiture[234]. - Net cash used in financing activities was $1.1 million for the six months ended June 30, 2024, including repayment of $1.2 million for the Monthly Redemption on Secured Convertible Notes[236]. Issuance Costs - The company incurred total issuance costs of $130 thousand related to the 2024 Subsidiary Guarantee Termination, with $19 thousand allocated to Unsecured Convertible Notes[196]. Fair Value Changes - Non-cash gain on changes in fair value of warrant liabilities was $114 thousand for the six months ended June 30, 2024, compared to a gain of $216 thousand for the same period in 2023[226]. - Non-cash loss on changes in fair value of embedded derivative liability was $18 thousand for the six months ended June 30, 2024, compared to a gain of $40 thousand for the same period in 2023[227]. - Accretion of interest and amortization of discounts on convertible notes increased to $0.7 million for the six months ended June 30, 2024, from $0.5 million for the same period in 2023[228].

As filed with the Securities and Exchange Commission on July 24, 2024 Registration No. 333-280423 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT NO. 3 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 NOVABAY PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 2834 68-0454536 (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identificat ...

As filed with the Securities and Exchange Commission on July 12, 2024 Registration No. 333-280423 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 NOVABAY PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) 2000 Powell Street, Suite 1150 Emeryville, CA 94608 ( ...

Revenue Expectations - NovaBay Pharmaceuticals, Inc. announced preliminary second quarter 2024 net revenue expectations[15] - The company is expected to report significant growth in revenue compared to the previous quarter[15] Business Strategy - NovaBay is focusing on enhancing customer loyalty and satisfaction as part of its business strategy[9] - The company is actively pursuing new revenue sources and market expansion opportunities[9] - NovaBay is engaged in the development of new products and technologies to drive future growth[9] Financial Transparency - The management has indicated that forward-looking statements are subject to risks and uncertainties[9] - The company plans to provide detailed financial results in its upcoming filings[9] - NovaBay is committed to transparency regarding its financial condition and operational results[9] Stakeholder Communication - The press release is intended to inform stakeholders about the company's performance and outlook[15] - The company is classified as an emerging growth company under the Securities Act[14]

As filed with the Securities and Exchange Commission on July 10, 2024 Registration No. 333-280423 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 NOVABAY PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) 2000 Powell Street, Suite 1150 Emeryville, CA 94608 ( ...

As filed with the Securities and Exchange Commission on June 21, 2024 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 NOVABAY PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) 2000 Powell Street, Suite 1150 Emeryville, CA 94608 (510) 899-8800 (Address, i ...

As filed with the Securities and Exchange Commission on June 20, 2024 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 NOVABAY PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒ ( ...

NovaBay Pharmaceuticals (NYSEMKT:NBY) stock is falling hard on Thursday after the eyecare and wound care company announced results from its annual shareholder meeting. Included among the proposals in the annual shareholder meeting was a reverse stock split. Traders voted in favor of allowing the company's Board of Directors to enact a reverse split of NBY shares. Following that, NovaBay Pharmaceuticals announced that its Board has approved a one-for-35 reverse stock split for NBY. This will combine 35 share ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ...