NovaBay Pharmaceuticals, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a decrease in cash and cash equivalents, which fell to $776,000 from $2,924,000 at the end of 2023. Total current assets also declined to $2,279,000 from $7,154,000, while total assets decreased to $3,877,000 from $9,034,000. Conversely, total current liabilities were reduced to $1,984,000 from $4,278,000, leading to a decrease in total liabilities to $2,805,000 from $5,720,000. Stockholders’ equity dropped to $1,072,000 from $3,314,000.
In terms of revenue, total sales for the three months ended September 30, 2024, were $2,441,000, a slight decrease from $2,481,000 in the same period of 2023. For the nine months, total sales were $7,472,000, down from $8,354,000. The company reported an operating loss of $(1,061,000) for the third quarter, an increase from $(698,000) in the prior year, and a nine-month operating loss of $(4,550,000), compared to $(3,094,000) in 2023. The net loss for the three months was $(1,212,000), a reduction from $(1,757,000) in 2023, while the nine-month net loss was $(6,011,000), slightly improved from $(5,532,000).
Strategically, NovaBay has undergone significant changes, including the divestiture of its skincare segment, DERMAdoctor, which was sold for $1.1 million on March 25, 2024. The company is currently pursuing an Asset Sale Transaction to sell its Avenova brand assets for $11.5 million, pending stockholder approval. A bridge loan of $1 million has been secured to support this transaction. The company has also faced an unsolicited offer from Refresh Acquisitions BidCo LLC for the Avenova assets, complicating the sale process.
The company’s operational strategy has been challenged, with ongoing losses and a substantial accumulated deficit of $182.2 million as of September 30, 2024. The board has expressed substantial doubt about the company's ability to continue as a going concern for at least the next twelve months, prompting plans for potential liquidation and dissolution if the asset sale is completed. The special meeting for stockholder approval of the asset sale and potential dissolution is scheduled for November 22, 2024.