NovaBay Pharmaceuticals reported results for the fourth quarter and full year ended December 31, 2015.
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NovaBay reported total net sales of $1.6 million for the fourth quarter of 2015, up $1.1 million from $491,000 for the fourth quarter of 2014. The increase was due to growing sales of Avenova, which was commercially launched in August 2014, partially offset by a decrease in collaboration revenue.
Product revenue for the fourth quarter of 2015 reached $1.6 million, up from $385,000 for the fourth quarter of 2014. Other revenue for the fourth quarter of 2015 was $48,000, compared with $106,000 for the prior-year period.
Gross profit as a percentage of total net sales was 64% for the fourth quarter of 2015, up from 40% for the prior-year period.
The net loss for the fourth quarter of 2015 was $4.2 million, or $1.26 per share, compared with a net loss for the fourth quarter of 2014 of $4.5 million, or $2.17 per share.
The per-share net loss reflects the effect of a 1-for-25 reverse stock split effected in December 2015.
The lower net loss in the fourth quarter of 2015 was a result of increased product revenue and reduced spending on research and development, offset by higher spending on sales and marketing and the impact of a higher non-cash gain in fair value of warrants.
Research and development expenses were $1.2 million and sales, general and administrative expenses were $6.0 million for the fourth quarter of 2015, compared with $2.4 million and $2.7 million, respectively, for the prior-year period.
Non-cash gain in the fair value of warrants was $2.0 million for the fourth quarter of 2015, compared with $451,000 for the fourth quarter of 2014.
Full year 2015
Total net sales for 2015 increased by $3.3 million to $4.4 million from $1.1 million for 2014. Product revenue for 2015 reached $4.1 million, compared with $684,000 for 2014. Other revenue for 2015 was $235,000, compared with $370,000 for the prior year. Gross profit as a percentage of total net sales increased to 71% from 54% for 2014.
The net loss for 2015 was $19.0 million, or $6.82 per share, compared with a net loss for 2014 of $15.2 million, or $7.65 per share.
The higher net loss for 2015 reflected increased spending on sales and marketing activities for Avenova, partially offset by lower spending on research and development.
Research and development expenses were $6.0 million and sales, general and administrative expenses were $18.1 million for 2015, compared with $9.5 million and $7.9 million, respectively, for 2014.
NovaBay reported a non-cash gain in fair value of warrants of $2.1 million for 2015 versus $1.7 million for 2014.
Cash, cash equivalents and short-term investments were $2.4 million as of December 31, 2015, compared with $5.4 million as of December 31, 2014.
The company used approximately $4.5 million in cash to fund operations during the fourth quarter of 2015. In January 2016, NovaBay secured a $1.4 million loan and in February 2016, NovaBay Pharmaceuticals completed a private placement raising proceeds of $2.83 million.
Although NovaBay Pharmaceuticals recently completed these financings, it will require additional capital to fund its operations in 2016. To achieve this, NovaBay intends to continue its historical financing strategy to raise additional capital to fund its operations and meet ongoing obligations, with the goal of positive cash flow from operations by December 2016. ■