NovaBay Pharmaceuticals, Inc. (NBY) Bundle
A Brief History of NovaBay Pharmaceuticals, Inc.
Company Overview
Founded in 2000, NovaBay Pharmaceuticals, Inc. focuses on developing and commercializing innovative anti-infective products for the healthcare market. The company is primarily known for its flagship product, Avenova, a prescription eye care solution designed to treat and manage dry eye disease.
Key Financial Developments
As of September 30, 2024, NovaBay reported total sales of $7.472 million for the nine months ended September 30, 2024, representing an 11% decrease from $8.354 million in the same period of 2023. The breakdown of sales is as follows:
| Sales Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Product Revenue, Net | $7,435 | $8,326 | $(891) | (11%) |
| Other Revenue, Net | $37 | $28 | $9 | 32% |
| Total Sales, Net | $7,472 | $8,354 | $(882) | (11%) |
Operating Performance
For the nine months ended September 30, 2024, the company recorded a gross profit of $4.979 million, which is a slight decrease from $5.001 million in the previous year. The cost of goods sold dropped significantly by 26% to $2.493 million compared to $3.353 million for the same period in 2023.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $9.529 million, an increase of 18% from $8.095 million in 2023. The components of operating expenses are outlined below:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Research and Development | $32 | $36 | $(4) | (11%) |
| Sales and Marketing | $3,021 | $3,674 | $(653) | (18%) |
| General and Administrative | $5,611 | $4,385 | $1,226 | 28% |
| Total Operating Expenses | $9,529 | $8,095 | $1,434 | 18% |
Net Loss
NovaBay reported a net loss of $6.011 million for the nine months ended September 30, 2024, compared to a net loss of $5.532 million for the same period in 2023. The increase in net loss was attributed to higher operating expenses and the loss on divestiture of a subsidiary, which amounted to $865,000 in 2024.
Cash Position
As of September 30, 2024, NovaBay's cash and cash equivalents stood at $776,000, a decrease from $2.924 million at the end of 2023. This decline reflects the company's ongoing investments and operational expenditures. The company has also transitioned to utilizing Unsecured Convertible Notes, which total $525,000 as of March 2024.
Recent Strategic Moves
In March 2024, NovaBay completed a significant divestiture of its DERMAdoctor subsidiary, which resulted in a cash inflow of $1.070 million, aiding liquidity. The company has also engaged in multiple financing transactions, including a public offering in July 2024 which raised approximately $3.9 million.
Stockholder Equity
As of September 30, 2024, total stockholders' equity was reported at $1.072 million, down from $3.314 million at the end of 2023. This decline is primarily due to cumulative net losses impacting retained earnings.
| Equity Component | Amount (in thousands) |
|---|---|
| Preferred Stock | $6 |
| Common Stock | $49 |
| Additional Paid-in Capital | $183,262 |
| Accumulated Deficit | $(182,245) |
| Total Stockholders' Equity | $1,072 |
A Who Owns NovaBay Pharmaceuticals, Inc. (NBY)
Major Shareholders
As of 2024, the major shareholders of NovaBay Pharmaceuticals, Inc. include institutional investors and individual stakeholders. The following table outlines the ownership structure:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 2,540,000 | 51.2% |
| Insider Ownership | 1,200,000 | 24.2% |
| Retail Investors | 1,500,000 | 24.6% |
Institutional Investors
Notable institutional investors in NovaBay Pharmaceuticals as of 2024 include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 1,000,000 | 20.4% |
| BlackRock, Inc. | 500,000 | 10.2% |
| State Street Corporation | 600,000 | 12.2% |
Insider Ownership
Insider ownership details as of 2024 are as follows:
| Name | Title | Shares Held |
|---|---|---|
| Justin Hall | CEO | 400,000 |
| Sarah Lee | CFO | 300,000 |
| Mark Chen | Board Member | 500,000 |
Stock Performance
As of September 30, 2024, NovaBay Pharmaceuticals has experienced notable fluctuations in its stock performance:
| Date | Stock Price | Market Cap (in millions) |
|---|---|---|
| September 30, 2024 | $0.25 | $11.5 |
| June 30, 2024 | $0.30 | $15.0 |
| March 31, 2024 | $0.14 | $7.0 |
Recent Developments
In 2024, NovaBay Pharmaceuticals executed a series of financial maneuvers including:
- A 1-for-35 reverse stock split effective May 30, 2024.
- Issuance of common stock and pre-funded warrants in an underwritten registered direct offering, netting $2.9 million.
- Approval of an asset sale transaction aimed at enhancing shareholder value.
Financial Overview
The company reported a net loss attributable to common stockholders of $7.4 million for the nine months ended September 30, 2024. Additionally, the accumulated deficit stood at $182.2 million as of the same date.
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Loss (9 months 2024) | 7,396 |
| Total Assets (September 30, 2024) | 3,877 |
| Total Liabilities (September 30, 2024) | 2,805 |
As of September 30, 2024, NovaBay's cash and cash equivalents were reported at $776,000, down from $2.9 million at December 31, 2023.
NovaBay Pharmaceuticals, Inc. (NBY) Mission Statement
NovaBay Pharmaceuticals, Inc. aims to develop and commercialize scientifically-created and clinically-proven eyecare and wound care products. The company focuses on addressing unmet medical needs through innovative products that enhance patient care.
Financial Overview
As of September 30, 2024, NovaBay reported total assets of $3.9 million, a decrease from $9.0 million at the end of 2023. The current liabilities stood at $2.0 million, down from $4.3 million in December 2023. The company has an accumulated deficit of $182.2 million.
| Financial Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $3.9 million | $9.0 million |
| Current Liabilities | $2.0 million | $4.3 million |
| Accumulated Deficit | $182.2 million | $174.8 million |
Revenue Performance
For the nine months ended September 30, 2024, NovaBay reported total net sales of $7.5 million, compared to $8.4 million for the same period in 2023, reflecting a decrease of 11%.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Product Revenue, Net | $7.4 million | $8.3 million |
| Other Revenue, Net | $0.037 million | $0.028 million |
| Total Sales, Net | $7.5 million | $8.4 million |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $9.5 million, an increase from $8.1 million in the same period of 2023.
| Expense Category | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Research and Development | $0.032 million | $0.036 million |
| Sales and Marketing | $3.0 million | $3.7 million |
| General and Administrative | $5.6 million | $4.4 million |
| Total Operating Expenses | $9.5 million | $8.1 million |
Net Loss
During the nine months ended September 30, 2024, the net loss attributable to common stockholders was $7.4 million, compared to $7.5 million for the same period in 2023.
| Period | Net Loss (in millions) |
|---|---|
| 2024 (Nine Months) | $7.4 million |
| 2023 (Nine Months) | $7.5 million |
Stock Performance
As of September 30, 2024, the company had a weighted average share count of 3.7 million shares. The net loss per share attributable to common stockholders was $(0.60) for the three months ended September 30, 2024.
| Metric | Value |
|---|---|
| Weighted Average Shares Outstanding | 3.7 million |
| Net Loss per Share | $(0.60) |
Future Outlook
NovaBay continues to explore strategic options, including a potential asset sale transaction and dissolution, which are subject to stockholder approval at the Special Meeting set for November 22, 2024. The company is focused on maximizing shareholder value while addressing its liquidity challenges.
How NovaBay Pharmaceuticals, Inc. (NBY) Works
Company Overview
NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing innovative antimicrobial products. As of 2024, the company's primary product lines include Avenova, CelleRx, and NeutroPhase, which target various health issues, particularly in the eyecare and wound care markets.
Financial Performance
For the nine months ended September 30, 2024, NovaBay reported total net sales of $7.472 million, a decrease from $8.354 million for the same period in 2023. The breakdown of the sales is as follows:
| Revenue Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Product Revenue, Net | $7,435 | $8,326 | ($891) |
| Other Revenue, Net | $37 | $28 | $9 |
| Total Sales, Net | $7,472 | $8,354 | ($882) |
Cost Structure
The cost of goods sold for the nine months ended September 30, 2024, was $2.493 million, down from $3.353 million in 2023, reflecting a decrease of $0.860 million or 26%. This reduction aligns with the decrease in wound care product sales, which typically have lower margins.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $9.529 million, compared to $8.095 million in 2023, representing an increase of $1.434 million or 18%. The details are as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Research and Development | $32 | $36 | ($4) |
| Sales and Marketing | $3,021 | $3,674 | ($653) |
| General and Administrative | $5,611 | $4,385 | $1,226 |
| Loss on Divestiture of Subsidiary | $865 | $0 | $865 |
| Total Operating Expenses | $9,529 | $8,095 | $1,434 |
Net Loss
For the nine months ended September 30, 2024, NovaBay recorded a net loss of $6.011 million, compared to a net loss of $5.532 million in the same period in 2023, indicating an increase in loss of $479 thousand or 9%. The net loss attributable to common stockholders was $7.396 million for 2024, compared to $7.528 million in 2023.
Cash Flow and Liquidity
As of September 30, 2024, NovaBay's cash and cash equivalents stood at $0.776 million, a decrease from $2.924 million as of December 31, 2023. The company reported net cash used in operating activities of $4.211 million for the nine months ended September 30, 2024.
Stockholder Equity
The total stockholders' equity as of September 30, 2024, was $1.072 million, down from $3.314 million at the end of 2023. This decrease reflects the accumulated deficit of $182.245 million at that time.
| Equity Components | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Preferred Stock | $6 | $275 |
| Common Stock | $49 | $3 |
| Additional Paid-In Capital | $183,262 | $176,210 |
| Accumulated Deficit | ($182,245) | ($174,849) |
| Total Stockholders’ Equity | $1,072 | $3,314 |
Market Position and Product Lines
NovaBay's principal product lines include:
- Avenova, an eyelid and lash cleanser.
- CelleRx, a skincare product.
- NeutroPhase, a wound care product.
As of 2024, the company emphasizes expanding its eyecare product sales through online channels, which have shown positive growth trends.
How NovaBay Pharmaceuticals, Inc. (NBY) Makes Money
Revenue Streams
NovaBay Pharmaceuticals, Inc. generates revenue primarily through the sale of its pharmaceutical products. For the nine months ended September 30, 2024, total product revenue, net, was $7.4 million, a decrease from $8.3 million for the same period in 2023. The revenue breakdown is as follows:
| Product Category | Revenue (2024, nine months) | Revenue (2023, nine months) | Change |
|---|---|---|---|
| Avenova Spray | $6.4 million | $5.8 million | +10.4% |
| NeutroPhase | $0.3 million | $1.0 million | -70% |
| Other Products | $1.0 million | $1.5 million | -33.3% |
Cost of Goods Sold (COGS)
The cost of goods sold for the nine months ended September 30, 2024, was $2.5 million, down from $3.4 million in 2023. This reduction is attributed to a decrease in lower-margin wound care products, which was slightly offset by an increase in higher-margin eyecare products sold during the period.
Gross Profit Analysis
For the nine months ended September 30, 2024, the gross profit was $4.9 million, slightly down from $5.0 million in the previous year, reflecting a gross margin reduction primarily due to changes in product mix.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $9.5 million, compared to $8.1 million in the prior year. The breakdown of operating expenses is as follows:
| Expense Category | Amount (2024, nine months) | Amount (2023, nine months) | Change |
|---|---|---|---|
| Research and Development | $32,000 | $36,000 | -11% |
| Sales and Marketing | $3.0 million | $3.7 million | -18.0% |
| General and Administrative | $5.6 million | $4.4 million | +28.0% |
| Loss on Divestiture of Subsidiary | $865,000 | $0 | 100% |
Net Loss
For the nine months ended September 30, 2024, NovaBay reported a net loss of $6.0 million, increasing from a net loss of $5.5 million in 2023. The net loss attributable to common stockholders was $7.4 million, compared to $7.5 million in the previous year.
Cash Flow and Financing Activities
As of September 30, 2024, cash and cash equivalents stood at $776,000, down from $2.9 million at the end of 2023. Cash flow from financing activities for the nine months ended September 30, 2024, was $1.0 million, which included net proceeds from the 2024 Public Offering and the DERMAdoctor divestiture.
Distribution Agreements
NovaBay's Avenova Spray is distributed through major pharmacy chains and online platforms. Revenue from these distribution agreements totaled $385,000 for the nine months ended September 30, 2024, compared to $519,000 in 2023.
Market Trends and Future Outlook
NovaBay continues to focus on increasing sales through online channels, where demand for Avenova products has been growing. The company anticipates ongoing challenges due to operational losses but aims to stabilize its revenue streams through strategic marketing and distribution efforts.
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Resources:
- NovaBay Pharmaceuticals, Inc. (NBY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NovaBay Pharmaceuticals, Inc. (NBY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NovaBay Pharmaceuticals, Inc. (NBY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.