NovaBay Pharmaceuticals, Inc.

Ladies and gentlemen, welcome to the Nova Bay Pharmaceuticals Financial Results Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will hold a question and answer session. To ask a question at that time, please press the star key followed by the number one on your touchtone phone. If anyone has difficulty hearing the conference, please press star zero for operator assistance. As a reminder, this conference is being recorded, and I would now like to turn the conference over to Bruce Voss. Please go ahead.

Thank you. This is Bruce Voss with LHA. Thank you all for participating in today's call. Joining me from Nova Bay Pharmaceuticals are Justin Hall, Chief Executive Officer and General Counsel, and Tommy Law, Interim Chief Financial Officer. I would like to remind listeners that comments made during this call by management will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. In particular, there is uncertainty about circumstances beyond the company's control that impact the broader economy. This means that results could change at any time, and the contemplated impact of such circumstances on Nova Bay's operations, financial results, and outlook is a best estimate based upon information available for today's discussion. For a list and description of risks and uncertainties, please review Nova Bay's filings with the Securities and Exchange Commission, which are available at sec.gov. Furthermore, the content of this conference call contains information that is accurate only as of the date of the live broadcast, May 9th, 2024. NovaBay undertakes no obligation to revise or update statements to reflect events or circumstances except as required by law. And now I'd like to turn the call over to Justin Hall. Justin?

Thank you, Bruce. Good afternoon, everybody, and thank you for joining us. I'm pleased to report that we hit an all-time record high ordered sales of Avanova products in the past two months on Amazon.com, our largest sales channel. We set a new record in March and then beat it in April. In fact, our April 2024 sales were ordered product sales were more than 20% higher than April 2023. These records are even more impressive, given that ordered sales in March and April eclipsed months that even included record-breaking Amazon Prime days. So it's not surprising that our first quarter sales increased 13% over the prior year, with that increase largely attributed to Abanova product sales through online channels. We saw an 8% increase in sales over the prior quarter through our online sales channels, with sales from this channel surpassing $2 million for the very first time. This growth is largely due to sales driven by our social media channel, which increased more than 160% year over year, and from our email program, which has been on a sustained upward trajectory since mid 2023, being up more than 360% over the prior year. Even with these higher sales, we were able to reduce marketing spend in Q1 by 15% through our cost-efficient ad placement programs. We're excited and encouraged by these new records following the streamlining of our business to focus solely on eye care. This is a testament to our marketing expertise and the high quality of our products and extremely loyal customer base. We also attribute these records to our recognition several years ago that dry eye can be a multifaceted, stubborn, and complex condition that may require more than one approach to manage. This prompted us to expand the Avanova branded portfolio to offer scientifically developed best-in-class products for each step of the dry eye treatment regimen. We build our dry eye franchise on a solid foundation of the Avanova spray, which is the number one doctor-recommended hypochlorous acid lid and lash solution. Our Avanova product line now includes lubricating eye drops for instant relief, a warm eye compress to soothe irritated eyes, an antioxidant-rich dietary supplement with omega-3 oils, and the eye check to monitor physical eyelid health. Earlier this year, we took a major step to position NovaBay to pursue high-growth opportunities by focusing on the eye care market, with most of our products under the Avanova brand addressing dry eye. This is a large and growing market that offers us plenty of room to grow. Dry eye syndrome is one of the most commonly observed clinical diseases in the US, afflicting approximately 16 million Americans. In fact, the US market for the treatment of dry eye and other ocular surface diseases is projected to grow from $3 billion in 2023 to $4.7 billion by 2030. Among the factors driving this growth are the escalating prevalence of dry eye due to increased computer time and smartphone screen usage, the aging population, and a heightened awareness of this condition and improved diagnostic capabilities. In the past, we've discussed marketing programs to better engage eye care specialists in our physician dispense channel, noting the halo effect this channel has in transitioning their patients into our OTC customers. Throughout this period, we did not lose sight of our digital marketing programs aimed directly at our OTC customers. We're expanding our digital marketing to include text messages and targeted emails to build on the incredible success with our social media marketing to further enhance the Avanova brand, engage customers, and drive online sales of Avanova products. These programs meet our cost management measures to efficiently enhance customer loyalty and reach new prospective customers. Our text messaging programs provide an additional and immediate touch point with our customers and are producing encouraging strong initial results. We plan to use text messaging to share exclusive discounts, news, and value-added content such as tips for enhancing eye health and other tips that will engage and encourage our audience to interact with the brand. We also recently refreshed our email campaign to include new creative and added automation. Both programs target our existing and highly loyal customer base to enhance retention while expanding reach to new audiences. Turning now to update everybody on our co-marketing agreement with Inovia that we announced in March. You may recall that Inovia received FDA approval for prescription-only Clobetasol, a unique and differentiated steroid that's prescribed by cataract surgeons. Clobetasol provides ophthalmologists and ocular surgery patients with a compelling, rapid, and sustained and more convenient solution for the treatment of post-operative inflammation and pain. This is the first new ophthalmic steroid to enter the US market in more than 15 years. We are expecting it to launch in the third quarter. Inovia will market this program through their sales reps, while NovaBay will market it alongside Avanova in our physician dispense channel. Under the agreement, Inovia sales reps will also market our Avanova products. I'm pleased to report that we completed training of the Inovia sales team earlier this month. So now I'd like to turn the call over to Tommy to review our financial results. Tommy?