- Fourth consecutive quarter of record Avenova® OTC unit sales
with record OTC revenue of $1.3 million
- Avenova availability expands to more than half of all CVS
stores across the U.S.
- ImprimisRx begins promoting prescription Avenova to eyecare
professionals nationwide
Conference call begins at 4:30 p.m. Eastern
time today
NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) reports
financial results for the three and six months ended June 30, 2021
and provides a business update.
“Unit sales reached a new quarterly record as more people than
ever before are using and benefitting from Avenova,” said Justin
Hall, President and CEO of NovaBay Pharmaceuticals. “We also are
reporting record revenue from the over-the-counter channel that
increased sequentially from the first quarter of this year and more
than doubled from the prior-year quarter. We anticipate continued
growth through the direct-to-consumer channel driven by the recent
launch of our new digital advertising campaigns. Additionally,
customers are finding it easier than ever to purchase Avenova with
our product now on the shelves of more than 5,000 CVS stores across
the U.S.
“Avenova has growth potential among the 30 million Americans who
suffer from the symptoms of dry eye and we are exploiting this
opportunity with increasingly sophisticated direct-to-consumer
marketing,” he added. “We also see significant opportunity for our
prescription product. We have new resources focused on the
prescription channel through our recently announced partnership
with ImprimisRx, which is promoting Avenova to their nationwide
customer base of thousands of eyecare specialists. This is a
cost-effective means to expand our reach with a partner that has
proven success with other prescription ophthalmic products.
“I would like to underscore the strength of our balance sheet
and our ability to execute on our growth initiatives with financial
resources we believe are sufficient to fund current operations
beyond 2022,” Mr. Hall said. “A key growth priority is expanding
our product portfolio. To this end, we are negotiating with several
opportunities to acquire or license products that allow us to
leverage our competencies in the ophthalmic and skincare
markets.”
Second Quarter Financial Results
Net product revenue for the second quarter of 2021 was $2.1
million, compared with $4.0 million for the second quarter of 2020,
which included $2.8 million in sales of KN95 masks. There were no
sales of KN95 masks in the 2021 quarter. Avenova revenue for the
second quarter of 2021 was $1.9 million, up 65% from $1.1 million
for the second quarter of 2020. The increase reflects a higher
number of OTC units sold, partially offset by a decrease in the
number of net units sold through pharmacy channels as our customers
continue the general trend toward online purchasing.
Gross margin on total net sales for the second quarter of 2021
was 71%, compared with 49% for the second quarter of 2020. The
improvement reflects higher Avenova revenue in the 2021 quarter and
the fact that we are no longer selling low-margin KN95 masks.
Operating expenses for the second quarter of 2021 were $3.4
million, compared with $3.0 million for the second quarter of 2020.
Sales and marketing expenses for the second quarter of 2021 were
$1.8 million, compared with $1.4 million for the second quarter of
2020, with the increase due to higher digital advertising costs
partially offset by lower sales personnel headcount. General and
administrative (G&A) expenses for the second quarter of 2021
were generally unchanged at $1.6 million, compared with $1.5
million for the second quarter of 2020. Research and development
(R&D) expenses for the second quarter of 2021 declined to
$21,000 from $115,000 for the prior-year period.
Non-cash loss on the change of fair value of warrant liability
for the second quarter of 2020 was $3.8 million. The warrants
underlying this result were eliminated, and we recorded no
comparable expense for the second quarter of 2021.
Net loss for the second quarter of 2021 was $1.9 million, or
$0.04 per share, an improvement from the loss for the second
quarter of 2020 of $4.5 million, or $0.15 per share.
Six Month Financial Results
Net product revenue for the six months ended June 30, 2021 was
$3.9 million, compared with $5.9 million for the six months ended
June 30, 2020.
Gross margin on net product revenue for the first half of 2021
was 73%, compared with 55% for the first half of 2020.
For the six months ended June 30, 2021, sales and marketing
expenses increased by 16%, G&A expenses were relatively
unchanged and R&D expenses decreased modestly, all compared
with the six months ended June 30, 2020.
Non-cash loss on the change of fair value of warrant liability
for the first six months of 2020 was $3.6 million. There was no
comparable result for the first six months of 2021.
The net loss for the six months ended June 30, 2021 was $3.4
million, or $0.08 per share, compared with a net loss for the six
months ended June 30, 2020 of $6.1 million, or $0.21 per share.
NovaBay reported cash and cash equivalents of $10.3 million as
of June 30, 2021, compared with $12.0 million as of December 31,
2020. During the six months ended June 30, 2021, the Company raised
net proceeds of $1.8 million from the sale of common stock through
an ATM agreement.
Conference Call
NovaBay management will host an investment community conference
call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific
time) to discuss the Company’s financial and operational results
and to answer questions. Shareholders and other interested parties
may participate in the conference call by dialing 866-777-2509 from
within the U.S. or 412-317-5413 from outside the U.S., and
requesting the NovaBay Pharmaceuticals call.
A live webcast of the call will be available at
http://novabay.com/investors/events and will be archived for 90
days. A replay of the call will be available beginning two hours
after the call ends through September 2, 2021 by dialing
877-344-7529 from within the U.S., 855-669-9658 from Canada or
412-317-0088 from outside the U.S., and entering the conference
identification number 10157994.
About NovaBay Pharmaceuticals, Inc.: Going Beyond
Antibiotics®
NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company
focusing on high-quality, differentiated, anti-infective consumer
products: Avenova®, the premier antimicrobial lid and lash spray,
CelleRx® Clinical Reset™, a breakthrough product in the beauty
category, and NeutroPhase® Skin and Wound Cleanser for wound
healing. NovaBay’s products are formulated with its patented, pure,
stable, pharmaceutical-grade hypochlorous acid that replicates the
antimicrobial chemicals used by white blood cells to fight
infection. NovaBay’s hypochlorous acid products do not cause
stinging or irritation, are non-toxic and non-sensitizing, making
them completely safe for regular use. Avenova is the only
commercial hypochlorous acid lid and lash spray product clinically
proven to reduce bacterial load on ocular skin surfaces, thus
effectively addressing the underlying cause of bacterial dry
eye.
Forward-Looking Statements
Except for historical information herein, matters set forth in
this press release are forward-looking within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995, including statements about the commercial
progress, potential opportunities for revenue accretion and future
financial performance of NovaBay Pharmaceuticals, Inc. This release
contains forward-looking statements that are based upon
management’s current expectations, assumptions, estimates,
projections and beliefs. These statements include, but are not
limited to, statements regarding our business strategies and
current product offerings, potential future product offerings
including through strategic acquisitions or licensing
opportunities, expanded access to our products, and any future
revenue that may result from selling these products, as well as
generally the Company’s expected future financial results. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or achievements to be
materially different and adverse from those expressed in or implied
by the forward-looking statements. Factors that might cause or
contribute to such differences include, but are not limited to,
risks and uncertainties relating to the size of the potential
market for our products, the possibility that the available market
for the Company’s products will not be as large as expected, the
Company’s products will not be able to penetrate one or more
targeted markets, and revenues will not be sufficient to meet the
Company’s cash needs. Other risks relating to NovaBay’s business,
including risks that could cause results to differ materially from
those projected in the forward-looking statements in this press
release, are detailed in NovaBay’s latest Form 10-Q/K filings with
the Securities and Exchange Commission, especially under the
heading “Risk Factors.” The forward-looking statements in this
release speak only as of this date, and NovaBay disclaims any
intent or obligation to revise or update publicly any
forward-looking statement except as required by law.
Socialize and Stay Informed on
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Website
Avenova Purchasing
Information For NovaBay Avenova purchasing information:
Please call 800-890-0329 or email sales@avenova.com.
Avenova.com
CelleRx Clinical Reset Purchasing
Information For NovaBay CelleRx Clinical Reset
purchasing information Please call 877-CELLERX www.CelleRx.com
NOVABAY PHARMACEUTICALS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands except par value
amounts)
June 30,
December 31,
2021
2020
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
10,294
$
11,952
Accounts receivable, net of allowance for
doubtful accounts ($0 at June 30, 2021 and December 31, 2020)
1,232
1,106
Inventory, net of allowance for excess and
obsolete inventory ($185 and $236 at June 30, 2021 and December 31,
2020, respectively)
682
608
Prepaid expenses and other current
assets
564
576
Total current assets
12,772
14,242
Operating lease right-of-use assets
262
436
Property and equipment, net
94
84
Other assets
475
476
TOTAL ASSETS
$
13,603
$
15,238
LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities:
Current liabilities:
Accounts payable
$
208
$
302
Accrued liabilities
1,883
2,115
Operating lease liabilities
298
416
Total current liabilities
2,389
2,833
Operating lease
liabilities-non-current
5
87
Total liabilities
2,394
2,920
Stockholders' equity:
Preferred stock: 5,000 shares authorized;
none issued and outstanding at June 30, 2021 and December 31,
2020
—
—
Common stock, $0.01 par value; 100,000 and
75,000 shares authorized at June 30, 2021 and December 31, 2020,
respectively; 44,615 and 41,782 shares issued and outstanding at
June 30, 2021 and December 31, 2020, respectively
447
418
Additional paid-in capital
150,202
147,963
Accumulated deficit
(139,440
)
(136,063
)
Total stockholders' equity
11,209
12,318
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
13,603
$
15,238
NOVABAY PHARMACEUTICALS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands except per share
data)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Sales:
Product revenue, net
$
2,126
$
3,979
$
3,927
$
5,871
Other revenue, net
7
5
13
5
Total sales, net
2,133
3,984
3,940
5,876
Product cost of goods sold
614
2,040
1,069
2,621
Gross profit
1,519
1,944
2,871
3,255
Operating expenses:
Research and development
21
115
26
124
Sales and marketing
1,788
1,423
3,468
2,983
General and administrative
1,569
1,477
2,756
2,754
Total operating expenses
3,378
3,015
6,250
5,861
Operating loss
(1,859
)
(1,071
)
(3,379
)
(2,606
)
Non-cash loss on changes in fair value of
warrant liability
—
(3,772
)
—
(3,635
)
Non-cash gain on changes in fair value of
embedded derivative liability
—
—
—
2
Other income, net
—
362
2
176
Loss before provision for income taxes
(1,859
)
(4,481
)
(3,377
)
(6,063
)
Provision for income taxes
—
(1
)
—
(1
)
Net loss and comprehensive loss
$
(1,859
)
$
(4,482
)
$
(3,377
)
$
(6,064
)
Net loss per share (basic and diluted)
$
(0.04
)
$
(0.15
)
$
(0.08
)
(0.21
)
Weighted-average shares of common stock
used in computing net loss per share (basic and diluted)
42,561
30,384
42,174
$
29,012
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210812005105/en/
NovaBay Contact Justin Hall
Chief Executive Officer and General Counsel 510-899-8800
jhall@novabay.com
Investor Contact LHA
Investor Relations Jody Cain 310-691-7100 jcain@lhai.com
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