Company Overview

Company Name: NovaBay Pharmaceuticals, Inc.

Incorporation: Originally incorporated in California (2000), re-incorporated in Delaware (June 2010).

Core Business Focus

Historically, NovaBay developed and sold scientifically-created, clinically-proven products in the following categories:

1. Eyecare Products

• Product: Avenova Spray
• Formulation: Proprietary, stable, and pure hypochlorous acid (antimicrobial solution).
• FDA Status: Cleared for sale in the U.S.
• Target Customers:
  • Individuals with minor eye irritation (blepharitis)
  • Dry eye sufferers
• Sales Channels:
  • Over-the-counter (OTC) and prescription
  • Direct to consumers on Amazon.com and Avenova.com
  • Prescription sales in optometrist and ophthalmologist offices
  • Retail pharmacies nationwide via agreements with McKesson, Cardinal Health, and AmerisourceBergen
• Promotion: Strong endorsement from ophthalmologists and optometrists, emphasizing "doctor recommended" reputation.
• Customer Base: Several million Americans suffer from blepharitis and dry eye conditions.

2. Wound Care Products

• Product Line: Proprietary hypochlorous acid formulations sold under NeutroPhase and PhaseOne brands.
• Uses:
  • Surgical pocket lavage
  • Treatment of wounds, burns, ulcers, pressure injuries, diabetic foot ulcers, and post-surgical wounds
  • Moistening dressings
• Market:
  • Distributed in the U.S. (through partners such as Pioneer) and China
  • Competitive advantages: Made without toxic chemicals, gentle, non-irritating, supports healing
• Distribution:
  • U.S. through commercial partners
  • China via Chongqing Pioneer Pharma Holdings Limited

3. Dermatology (via DERMAdoctor)

• Product Line: Over 30 dermatologist-developed skin care products
• Focus Areas: Aging, blemishes, dry skin, perspiration, keratosis pilaris
• Status: Discontinued as of March 25, 2024 (sale of DERMAdoctor assets)

Recent Changes and Strategic Direction

• Asset Sales & Divestitures:

  • Avenova Assets: Sold to PRN Physician Recommended Nutriceuticals, LLC on January 17, 2025 (~$11.5 million purchase price)
  • Wound Care Trademarks & Inventory: Sold to Phase One on January 8, 2025 (~$0.5 million)
  • DERMAdoctor Business: Sold on March 25, 2024

• Current Operational Status:

  • Business operations have been significantly reduced
  • Remaining activities include manufacturing wound care products under contractual obligations in China, with fulfillment expected by mid-2025

• Business Focus Moving Forward:

  • Pursuing dissolution of the company (planned proceedings and meeting scheduled for April 16, 2025, pending stockholder approval)
  • Exploring other strategic alternatives, including potential mergers or business combinations (engaged financial advisor Lucid Capital Markets)

Financial & Operational Data

• Number of Employees:
  • As of December 31, 2024: 14 employees total
  • As of April 2, 2025 (post-asset sale): 4 employees (3 full-time, 1 part-time)
• Revenue (2024): Approximate total of $9.78 million from continuing operations
  • Eyecare product revenue: About $9.7 million (mainly Avenova Spray)
• Net Loss (2024): About $7.2 million from continuing operations
• Stockholders: Approximately 5.8 million shares outstanding as of March 25, 2025
• Market Cap (June 28, 2024): Approximate value of $2.98 million (excluding shares held by affiliates)

Intellectual Property

• Prior trademarks included "Avenova," "PhaseOne," and "NeutroPhase," but most were sold in recent transactions.
• The core product formulations and trade secrets were part of the sold assets.

Regulatory & Other Notes

• Previously regulated heavily by FDA and other authorities, but current reduced operations are subject to substantially less regulation.
• The company’s focus has shifted from product development to winding down operations and liquidating remaining assets.

Summary

NovaBay Pharmaceuticals used to develop and commercialize hypochlorous acid-based products in eye care, wound care, and dermatology. Following recent asset sales, its operations are minimal, primarily fulfilling existing contractual obligations with a strategic focus on dissolving the company and exploring potential strategic mergers or arrangements. The company had around 14 employees at the end of 2024, with revenue of approximately $9.78 million in 2024, and reported a net loss of about $7.2 million from continuing operations in 2024.