EMERYVILLE, Calif.—NovaBay Pharmaceuticals (NYSE American: NBY) has announced its financial results for the third quarter of 2024, demonstrating a 14 percent increase in online Avenova sales and a 25 percent reduction in sales and marketing expenses. The company reported total net sales for the third quarter of $2.4 million, primarily from eyecare products, compared with total net sales of $2.5 million for the third quarter of 2023. The company also reported a net loss of $2.2 million during the third quarter of 2024 compared with a net loss of $1.8 million in the prior-year period.

“Avenova sales through the online channel for the quarter increased 14 percent over the prior year, while we reduced our marketing spend by 25 percent in the same period as we further optimized our highly efficient digital marketing programs,” said Justin Hall, CEO of NovaBay. “We saw continued momentum in Avenova online sales into the current quarter.”

NovaBay also announced that it has accepted a revised transaction proposal from PRN Physician Recommended Nutriceuticals, LLC (PRN) to increase the base purchase price for its eyecare business from $9.5 million to $11.5 million. The company has entered into an amendment to its previously announced asset purchase agreement, dated September 19, 2024, with PRN. NovaBay’'s transaction with PRN remains subject to certain closing conditions, including receiving stockholder approval, according to the announcement.

NovaBay's leading product, Avenova Lid & Lash Cleansing Spray, is often recommended by eyecare professionals for blepharitis and dry eye disease, the company noted.

“We are pleased to accept PRN’s revised offer for the Avenova brand and continue our efforts to obtain stockholder approval. With the newly added value, we truly believe this deal is in the best interests of our stockholders," said NovaBay’s Hall.

Gross margin on net sales was 65 percent, down from 67 percent  in Q3 2023. Sales and marketing expenses decreased to $0.9 million, while general and administrative expenses increased to $1.7 million due to higher legal costs, the company said.

For the first nine months of 2024, the company reported total net sales of $7.5 million, down from $8.4 million in the same period of 2023. Net loss for the nine months was $7.4 million compared with $7.5 million in the same period of 2023. The company reported $0.8 million in cash and cash equivalents as of September 30, 2024, compared with $2.9 million as of December 31, 2023.