NovaBay Pharmaceuticals, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>NovaBay Pharmaceuticals filed its 2023 10-K, reporting $11.23M in assets and a net loss of $34.32M.</b>

AI Summary

NovaBay Pharmaceuticals, Inc. (NBY) filed a Annual Report (10-K) with the SEC on March 26, 2024. NovaBay Pharmaceuticals reported total assets of $11.23 million for the fiscal year ended December 31, 2023. The company's total debt was $2.035 million as of December 31, 2023. Revenue for the fiscal year 2023 was $7.38 million. Net income for the fiscal year 2023 was a loss of $34.32 million. Earnings per share (EPS) for the fiscal year 2023 was -$0.72.

Why It Matters

For investors and stakeholders tracking NovaBay Pharmaceuticals, Inc., this filing contains several important signals. The filing details the company's financial position and operational performance for the fiscal year 2023, providing investors with key metrics and risk factors. Understanding the company's asset base, debt levels, revenue, and net income is crucial for assessing its financial health and future prospects.

Risk Assessment

Risk Level: high — NovaBay Pharmaceuticals, Inc. shows elevated risk based on this filing. The company reported a significant net loss of $34.32 million for the fiscal year 2023, indicating substantial financial challenges.

Analyst Insight

Investors should closely monitor NovaBay's strategy for addressing its net losses and improving financial performance in the upcoming fiscal year.

Financial Highlights

revenue

7,382,447

total Assets

11,230,000

total Debt

2,035,000

net Income

-34,323,344

eps

-0.72

revenue Growth

9.6%

Revenue Breakdown

Key Numbers

• 11,230,000 — Total Assets (As of December 31, 2023)
• 2,035,000 — Total Debt (As of December 31, 2023)
• 7,382,447 — Revenue (For the fiscal year ended December 31, 2023)
• -34,323,344 — Net Income (For the fiscal year ended December 31, 2023)
• -0.72 — EPS (For the fiscal year ended December 31, 2023)

Key Players & Entities

• NovaBay Pharmaceuticals, Inc. (company) — Filer name
• 2000 POWELL STREET, SUITE 1150 (address) — Business and mailing address
• EMERYVILLE (location) — City for business and mailing address
• CA (location) — State for business and mailing address
• 94608 (postal_code) — ZIP code for business and mailing address
• 001-33678 (other) — SEC file number

FAQ

Risk Factors

• Net Loss [high — financial]: The company incurred a net loss of $34,323,344 for the fiscal year ended December 31, 2023.
• Debt [medium — financial]: The company reported total debt of $2,035,000 as of December 31, 2023.
• Dependence on Product Sales [medium — operational]: The company's revenue is primarily derived from product sales, making it susceptible to market demand and competition.

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share NBY NYSE American Secur
• $68 thousand — d development expenses of approximately $68 thousand and $174 thousand, respectively. Seaso
• $174 — enses of approximately $68 thousand and $174 thousand, respectively. Seasonality
• $3.6 million — ed in our Company raising approximately $3.6 million in gross proceeds. 2023 Financing Tran
• $3.3 million — t provided for the issuance and sale of $3.3 million aggregate principal amount of Secured C
• $3.0 m — the Company received gross proceeds of $3.0 million, before deducting placement agent
• $6.30 — nded to lower their exercise price from $6.30 to $1.50 per share. On December 21, 20
• $1.50 — ower their exercise price from $6.30 to $1.50 per share. On December 21, 2023, the C
• $0.25 — on stock at a reduced exercise price of $0.25 and were issued the December 2023 Warra
• $0.6 m — The Company received gross proceeds of $0.6 million, before deducting placement agent
• $1.1 million — ch provided additional funding from the $1.1 million purchase price and we anticipate this t

Filing Documents

• nby20231231_10k.htm (10-K) — 2703KB
• ex_643824.htm (EX-10.8) — 16KB
• ex_642660.htm (EX-21) — 1KB
• ex_640528.htm (EX-23.1) — 3KB
• ex_640529.htm (EX-31.1) — 8KB
• ex_640530.htm (EX-31.2) — 8KB
• ex_640531.htm (EX-32.1) — 4KB
• ex_640532.htm (EX-32.2) — 4KB
• ex_642661.htm (EX-97) — 12KB
• 0001437749-24-009417.txt (&nbsp;) — 12875KB
• nby-20231231.xsd (EX-101.SCH) — 109KB
• nby-20231231_cal.xml (EX-101.CAL) — 64KB
• nby-20231231_def.xml (EX-101.DEF) — 727KB
• nby-20231231_lab.xml (EX-101.LAB) — 562KB
• nby-20231231_pre.xml (EX-101.PRE) — 769KB
• nby20231231_10k_htm.xml (XML) — 2534KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 8 ITEM 1B. UNRESOLVED STAFF COMMENTS 17 ITEM 1C. CYBERSECURITY 17 ITEM 2.

PROPERTIES

PROPERTIES 17 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 17 ITEM 4. MINE SAFETY DISCLOSURES 17 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 18 ITEM 6. [RESERVED] 18 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 18 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 25 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 26 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 60 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 60 ITEM 9B. OTHER INFORMATION 60 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 60 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 61 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 61 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 61 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 61 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 61 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 62 Unless the context requires otherwise, all references in this report to "we," "our," "us," the "Company" and "NovaBay" refer to NovaBay Pharmaceuticals, Inc., a Delaware corporation, and, where applicable, also its former wholly-owned subsidiary, DERMAdoctor, LLC, a Missouri limited liability company. The Company owns live trademark registrations in the U.S., as well as trademark registrations and pending applications in many other countries internationally, with our primary trademarks including "Avenova", "CelleRx", "PhaseOne", and "NeutroPhase", which are held directly by NovaBay. "DERMAdoctor", "Kakadu C", "AIN'T Misbehavin'", and "KP Duty" are held directly by our former wholly-owned subsidiary DERMAdoctor . Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This annual report on Form 10-K contains forward-looking statements that are based on our management's current beliefs, expectations and assumptions and on information currently available to our management. These forward-looking statements include, but are not limited to, statements regarding additional capital needed to finance our operations, uncertainty regarding our ability to continue as a going concern, our product candidates, market opportunities, competitors, business plan and strategies, anticipated trends and challenges in our business and the markets in which we operate, and anticipated expenses and capital requirements. In some cases, you can identify forward-looking statements by terms such as " anticipates, " " believes, " " could, " " estimates, " " expects, " " intends, " " may, " " plans, " " potential, " " predicts, " " projects, " " should, " " will, "

BUSINESS

BUSINESS NovaBay Pharmaceuticals, Inc. (the " Company ") develops and sells scientifically-created and clinically-proven eyecare and wound care products. Our leading product, Avenova Antimicrobial Lid and Lash Solution, or Avenova Spray, is proven in laboratory testing to have broad antimicrobial properties as it removes foreign material including microorganisms and debris from the skin around the eye, including the eyelid. Avenova Spray is formulated with our proprietary, stable and pure form of hypochlorous acid and is cleared by the Food and Drug Administration (the " FDA ") for sale in the United States. Avenova Spray is available direct to consumers primarily through online distribution channels and is also available by prescription and dispensed by eyecare professionals for blepharitis and dry eye disease. Because dry eye is a complex condition, we offer a complementary portfolio of scientifically-developed products for each step of the standard at-home treatment regimen, including the Avenova Eye Health Support antioxidant-rich oral supplement, Avenova Lubricating Eye Drops for instant relief, NovaWipes by Avenova, Avenova Warm Eye Compress to soothe the eyes, and the i-Chek by Avenova to monitor physical eyelid health. Through our former subsidiary DERMAdoctor, LLC (" DERMAdoctor "), the Company offered over 30 dermatologist-developed products targeting common skin concerns, ranging from aging and blemishes to dry skin, perspiration and keratosis pilaris. Subsequent to December 31, 2023, on March 25 , 2024, we announced that we had sold DERMAdoctor (the " DERMAdoctor Divestiture "). We acquired DERMAdoctor in November 2021 (the " DERMAdoctor Acquisition ") in order to achieve overall revenue growth, cost reductions and profitability. We were unable to achieve those objectives with DERMAdoctor. The DERMAdoctor Divestiture immediately streamlined our business by reducing our cash burn and allowing us to focus on pursuing newer and stronger growth opportunit

View Full Filing

View this 10-K filing on SEC EDGAR