NovaBay Pharmaceuticals, Inc. has reported significant changes in its financial performance and strategic direction in its latest 10-K filing. For the fiscal year ending December 31, 2024, the company generated total sales of $9.8 million, a decrease of 6% from $10.5 million in 2023. The decline was primarily attributed to a drop in sales from its NeutroPhase product line, which saw revenues fall from $1.4 million in 2023 to zero in 2024, offset by a slight increase in Avenova product sales. The company reported a net loss from continuing operations of $7.2 million, compared to a loss of $6.1 million in the previous year, reflecting a 17% increase in losses.
In a strategic pivot, NovaBay has divested most of its assets, including the sale of its Avenova brand to PRN Physician Recommended Nutriceuticals for $11.5 million on January 17, 2025, and the sale of its wound care trademarks to Phase One Health for $500,000 on January 8, 2025. These transactions have significantly reduced the company's operational footprint, leading to a decision by the board to pursue voluntary dissolution under Delaware law. A special meeting of stockholders is scheduled for April 16, 2025, to seek approval for this dissolution plan, which aims to maximize shareholder value through potential distributions of remaining assets.
Operationally, the company has seen a drastic reduction in its workforce, from 14 employees at the end of 2024 to just 4 as of April 2025. This reduction aligns with the company's diminished business operations following the asset sales. NovaBay's cash and cash equivalents stood at $430,000 as of December 31, 2024, down from $2.9 million a year earlier, but the company anticipates that the proceeds from its recent asset sales will sustain its operations through at least April 2026.
Looking ahead, NovaBay's future remains uncertain as it navigates the dissolution process and explores other strategic alternatives. The company has engaged Lucid Capital Markets to assist in identifying potential business combinations or other strategic transactions. However, the success of these initiatives is contingent upon stockholder approval of the dissolution plan, which, if not approved, may lead the company to consider bankruptcy or other restructuring options. The board has indicated that it retains the discretion to abandon the dissolution if it deems it no longer in the best interest of the company and its shareholders.
About NovaBay Pharmaceuticals, Inc.
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