Workflow
NovaBay(NBY) - 2024 Q3 - Quarterly Report
NovaBayNovaBay(US:NBY)2024-11-07 21:13

Financial Performance - The company reported a loss of $124 thousand for the nine months ended September 30, 2024, following the divestiture of DERMAdoctor[256]. - The company incurred net losses of $2.2 million and $1.8 million for the three months ended September 30, 2024 and 2023, respectively, and accumulated a deficit of $182.2 million as of September 30, 2024[276]. - The company reported a net loss from continuing operations of $5.9 million for the nine months ended September 30, 2024, compared to a net loss of $4.4 million for the same period in 2023[306]. - The company reported a net loss from continuing operations of $6.0 million for the nine months ended September 30, 2024, compared to a net loss of $5.5 million for the same period in 2023[311][312]. - The company incurred a loss of $0.9 million due to the DERMAdoctor divestiture for the nine months ended September 30, 2024, with no comparable activity in the prior year[301]. Revenue and Expenses - Product revenue, net, decreased by $0.1 million, or 2%, to $2.4 million for the three months ended September 30, 2024, compared to $2.5 million for the same period in 2023[288]. - Product revenue decreased by $0.9 million, or 11%, to $7.4 million for the nine months ended September 30, 2024, compared to $8.3 million for the same period in 2023[295]. - Revenue from eyecare products increased by $0.5 million to $7.2 million for the nine months ended September 30, 2024, from $6.7 million for the same period in 2023[296]. - Revenue from wound care products decreased by $1.3 million to $0.3 million for the nine months ended September 30, 2024, from $1.6 million for the same period in 2023[297]. - Sales and marketing expenses decreased by $0.4 million, or 25%, to $0.9 million for the three months ended September 30, 2024, due to digital marketing efficiencies[290]. - Sales and marketing expenses decreased by $0.7 million, or 18%, to $3.0 million for the nine months ended September 30, 2024, from $3.7 million for the same period in 2023[299]. - General and administrative expenses increased by $0.6 million, or 56%, to $1.7 million for the three months ended September 30, 2024, primarily due to increased legal costs related to strategic initiatives[291]. - General and administrative expenses increased by $1.2 million, or 28%, to $5.6 million for the nine months ended September 30, 2024, from $4.4 million for the same period in 2023[300]. - Cost of goods sold remained consistent at $0.8 million for the three months ended September 30, 2024, and September 30, 2023[289]. - Cost of goods sold decreased by $0.9 million, or 26%, to $2.5 million for the nine months ended September 30, 2024, from $3.4 million for the same period in 2023[298]. Asset Management and Financing - The company raised gross proceeds of $3.9 million from the 2024 Public Offering, which closed on July 29, 2024[266]. - The company entered into a Bridge Loan agreement for up to $1.0 million to support working capital, with a 10% interest rate[264]. - The company had total current assets of $2.3 million and total assets of $3.9 million as of September 30, 2024[276]. - As of September 30, 2024, the company's cash and cash equivalents were $0.8 million, down from $2.9 million as of December 31, 2023[306]. - Net cash provided by financing activities was $1.0 million for the nine months ended September 30, 2024, including net proceeds of $2.9 million from the 2024 Public Offering[314]. Strategic Initiatives - The company plans to pursue an Asset Sale Transaction and Dissolution, both subject to stockholder approval, to maximize stockholder value[277]. - The company has called a special meeting of stockholders on November 22, 2024, to approve the Asset Sale Transaction and potential dissolution[261]. - The company has experienced significant operational challenges, leading to the exploration of liquidation and dissolution options if the Asset Sale Transaction does not proceed[259]. - The company is exploring various strategic options to address liquidity needs, including raising additional capital and potential divestitures[310]. Compliance and Regulatory Matters - The company received notice from the NYSE American that it accepted its compliance plan, with a plan period through October 18, 2025[274]. - If the company does not regain compliance with NYSE American's listing standards by October 18, 2025, delisting procedures may be initiated[274]. Product Information - The company’s leading product, Avenova Spray, is cleared by the FDA and is available through online channels and eyecare professionals[254]. - The company’s wound care products, NeutroPhase and PhaseOne, are sold through distributors and are used in various medical applications[255]. - The company experienced seasonality in sales of Avenova Spray, with the first quarter typically being the lowest revenue quarter due to health insurance deductible changes[320]. Other Financial Information - The company had net operating loss carryforwards of $139.3 million for federal income tax purposes as of December 31, 2023, with $94.9 million set to expire in 2024[316]. - The company had no off-balance sheet arrangements as of September 30, 2024[319]. - The company’s investment policy aims for capital preservation and liquidity assurance, with minimal interest rate risk due to the short-term nature of its investment portfolio[324]. - The company has not had any material exposure to foreign currency rate fluctuations, focusing primarily on the domestic U.S. market[325].