NovaBay Pharmaceuticals, Inc. (NYSE:NBY) Q4 2019 Earnings Conference Call March 26, 2020 4:30 PM ET Company Participants Jody Cain - IR Justin Hall - President and CEO Jason Raleigh - CFO Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann Edward Woo - Ascendiant Capital Operator Welcome to the NovaBay Pharmaceuticals 2019 Fourth Quarter and Full Years' Earnings Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we'll hold a Q&A se ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ 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 jurisd ...

NovaBay Pharmaceuticals, Inc. (NYSE:NBY) Q3 2019 Results Conference Call November 7, 2019 4:30 PM ET Company Participants Jody Cain - Investor Relations Justin Hall - President and Chief Executive Officer Jason Raleigh - Chief Financial Officer Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann Edward Woo - Ascendiant Capital Operator Welcome to the NovaBay Pharmaceuticals Third Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. Following management's prepar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ 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 ot ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ 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 j ...

Financial Data and Key Metrics Changes - For Q2 2019, net sales were $1.8 million, down from $2.8 million in the prior year period, primarily due to lower unit sales and a lower net selling price of Avenova [13] - Avenova sales were $1.6 million for the quarter, with a gross margin on net product revenue of 77%, compared to 83% for the same period last year [14][19] - Operating expenses decreased by 37% to $2.8 million from $4.4 million in the prior year period, reflecting a strategic shift in the U.S. commercial organization [15] Business Line Data and Key Metrics Changes - Avenova sales through the retail pharmacy channel were $1.3 million, accounting for 84% of total Avenova sales, while in-office direct channel sales were $209,000 [13] - Sales through the new Avenova Direct channel on Amazon.com contributed modestly, having launched in mid-June [14][11] - The partner pharmacy program accounted for 52% of all prescription Avenova units sold in Q2, up from 38% in Q1 [9] Market Data and Key Metrics Changes - The company expanded its partner pharmacy program to 16 partners, adding eight new partners since the beginning of the year [7] - The trend towards higher deductible health plans has necessitated increased usage of coupons and rebates to maintain Avenova's affordability [6] Company Strategy and Development Direction - The company is focused on making Avenova accessible and affordable while ensuring appropriate economics for NovaBay [12] - A new commercialization strategy aims to enhance patient experience and increase Avenova's accessibility [5] - The launch of CELLERX, a new topical solution, is planned for late 2019, targeting post-treatment care in aesthetic dermatology [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Avenova's unique product positioning and its acceptance among medical professionals and patients [24] - The company expects to realize benefits from the reduction in force on operating expenses and anticipates a significant reduction in operating expenses from 2018 levels [23] - The outlook for 2019 net sales is projected to be in the range of $6 million to $8 million, with potential revisions as visibility improves [23] Other Important Information - The company reported a net loss of $2.5 million or $0.14 per share for Q2 2019, compared to a net loss of $1.6 million or $0.09 per share in Q2 2018 [19] - Cash and cash equivalents were $3.7 million as of June 30, 2019, with various funding activities completed throughout the year [22] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [32][34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ 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 j ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ☐ 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 jurisd ...

Financial Data and Key Metrics Changes - For Q4 2018, net sales were $3.6 million, down from $6.3 million in the prior year, primarily due to low insurance reimbursement and a reduction in non-Avenova sales by $1.3 million [22][25] - The operating loss for Q4 2018 was $1.6 million, compared to an operating income of $392,000 in Q4 2017 [25] - The net loss for Q4 2018 was $1.3 million or $0.07 per share, compared to a net income of $793,000 or $0.02 per diluted share in Q4 2017 [25] - For the full year 2018, net sales were $12.5 million, down from $18.2 million in 2017, with a net loss of $6.5 million or $0.39 per share, compared to a net loss of $7.4 million or $0.48 per share in 2017 [26][27] Business Line Data and Key Metrics Changes - Avenova sales in the retail pharmacy channel for Q4 2018 were $3.3 million, accounting for 92% of total sales, while in-office direct channel sales were $282,000 [23] - Gross margin on net product revenue for Q4 2018 improved to 88% from 85% in the prior year, mainly due to product mix [24] Market Data and Key Metrics Changes - The company identified 15 profitable territories that generated 95% of Avenova prescriptions over the trailing six-month period, indicating a focused sales strategy [14][15] Company Strategy and Development Direction - The company announced a shift in its US commercial strategy, including changes in executive management and restructuring of the sales organization to support cost management and long-term profitable growth [6][12] - The focus is on maintaining access to Avenova for eye care professionals and patients while reducing reliance on rebates and coupons [19] - The company plans to explore new distribution channels to potentially increase overall unit volume [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to changes in the reimbursement environment, which are expected to negatively impact revenues in 2019 [13] - The company expects revenues for 2019 to be in the range of $6 million to $8 million, with a conservative estimate and potential upside from strategic initiatives [29] - Cost savings related to the reduction in force are expected to be $3.6 million over 2019, with a significant reduction in operating expenses anticipated [30] Other Important Information - The company received $2 million from a promissory note and has a commitment for an additional $3 million from an institutional fund [20] - Cash and cash equivalents were reported at $3.2 million as of December 31, 2018 [27] Q&A Session Summary Question: Could you reiterate your projected operating expenses in 2019? - Management expects operating expenses to be significantly lower than in 2018 [35] Question: What about selling and marketing expenses and G&A expenses? - G&A expenses might drop slightly, but selling and marketing expenses are expected to decrease significantly, with a minimum reduction of 30% [36] Question: At what revenue level do you expect to achieve breakeven? - Management indicated that breakeven is a corporate objective, but due to uncertainties in the reimbursement landscape, they do not have a fixed projection yet [37] Question: Will there be any more operational changes expected near-term? - Management stated that they are done with reductions in the field sales force and are focused on improving operational excellence [40] Question: Is there a timeline for bringing a permanent CEO or CFO? - Management indicated that this question is best answered by the Board, with no immediate plans [41] Question: What would make you comfortable to start the hiring process again for sales reps? - Management stated that hiring would resume once breakeven is reached and costs are stabilized [44]