NovaBay Pharmaceuticals Inc (NBY) 2024 Q2 法說會逐字稿

Good day, and welcome to the NovaBay Pharmaceuticals second-quarter 2024 financial results conference call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加 NovaBay Pharmaceuticals 2024 年第二季財務業績電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Jody Cain, please go ahead.

現在我想將會議交給 Jody Cain，請繼續。

This is Jody Cain with LHA. Thank you for participating in today's call. Joining me from NovaBay Pharmaceuticals are Justin Hall, Executive Officer and General Counsel; and Tommy Law, Interim Chief Financial Officer.

我是 LHA 的 Jody Cain。感謝您參加今天的電話會議。與我一起出席的還有 NovaBay Pharmaceuticals 的執行長兼總法律顧問 Justin Hall 和臨時財務長 Tommy Law。

I'd 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 NovaBay's operations, financial results and outlook is the best estimate based upon information available for today's discussion.

我想提醒聽眾，管理階層在本次電話會議上發表的評論將包括聯邦證券法所定義的前瞻性陳述。這些前瞻性陳述涉及風險和不確定性，可能導致實際結果與預期結果有重大差異。尤其是，超出公司控制範圍且影響整體經濟的情況存在不確定性。這意味著結果可能隨時發生變化，而這種情況對 NovaBay 的營運、財務表現和前景的預期影響是根據今天討論可用的信息做出的最佳估計。

For a list and description of risks and uncertainties, please review NovaBay'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, August 13, 2024. NovaBay undertakes no obligation to revise or update statements to reflect events or circumstances, except as required by law.

有關風險和不確定因素的清單及描述，請參閱 NovaBay 提交給美國證券交易委員會的文件，該文件可在 sec.gov 上查閱。此外，本次電話會議內容僅包含截至直播日期（2024 年 8 月 13 日）的資訊。除非法律要求，否則 NovaBay 不承擔修改或更新聲明以反映事件或情況的義務。

And now I'd like to turn the call over to Justin Hall. Justin?

現在我想把電話轉給賈斯汀·霍爾。賈斯汀？

Thank you, Jody. Good afternoon, everyone, and thank you for joining us. We are reporting another quarter of growth in our eyecare business, driven by sales of Avenova branded products through our OTC online channels. For the first half of 2024, sales from eyecare products reached $4.8 million, giving us confidence in reaching our goal of approximately $10 million for the year. This revenue growth is efficient growth with sales and marketing spend for the quarter down 13% over the prior year. Our ability to continue growing our eyecare product sales while lowering marketing expenses is a testament to our digital marketing expertise into the high quality of our products which has given rise to an extremely loyal base of customers who generate reoccurring revenue.

謝謝你，喬迪。大家下午好，感謝大家的參與。我們報告稱，我們的眼保健業務又實現了一個季度的成長，這得益於 Avenova 品牌產品透過我們的 OTC 線上管道的銷售。2024 年上半年，眼部護理產品的銷售額達到 480 萬美元，這使我們有信心實現全年約 1,000 萬美元的目標。這一收入成長是有效的成長，本季的銷售和行銷支出比上年下降了 13%。我們能夠在降低行銷費用的同時繼續增加眼部護理產品的銷量，這證明了我們的數位行銷專業知識對我們產品的高品質的認可，這為我們帶來了一群極其忠誠的客戶，為他們帶來了經常性收入。

Over the past several years, our base of repeat customers has grown steadily and consistently. In fact, the number of Avenova Subscribe & Save customers on Amazon, our largest sales channel, increased by a formidable 123% since the beginning of 2022 and is up 64% since the beginning of 2023 and is up 16% for the first six months of 2024. It's no surprise that given these increases that satisfaction with our products is exceedingly high with the Avenova Lid & Lash Solution online rating for more than 14,000 customers averaging an impressive 4.5 stars.

在過去的幾年中，我們的回頭客群穩步成長。事實上，我們最大的銷售通路亞馬遜上的 Avenova Subscribe & Save 客戶數量自 2022 年初以來增長了 123%，自 2023 年初以來增長了 64%，2024 年前六個月增長了 16%。鑑於這些成長，對我們產品的滿意度極高也就不足為奇了，超過 14,000 名客戶對 Avenova Lid & Lash Solution 的線上評分平均達到了令人印象深刻的 4.5 顆星。

The importance of our loyal customer base cannot be overstated. In fact, subscription sales accounted for approximately 24% of all online Avenova revenue for the first half of this year. Importantly, reoccurring sales from these customers provides us with predictable revenue upon which to build future sales, which in turn allows us to efficiently manage our sales and marketing spend. We also attribute growth in our eyecare business to the expansion of our Avenova branded product portfolio in recognition that dry eye can be a multifaceted stubborn and complex condition that may require more than one approach to manage.

我們忠實的客戶群的重要性怎麼強調也不為過。事實上，訂閱銷售額約佔今年上半年 Avenova 所有線上收入的 24%。重要的是，這些客戶的重複銷售為我們提供了可預測的收入，以此為基礎建立未來的銷售，進而使我們能夠有效地管理銷售和行銷支出。我們也將眼保健業務的成長歸功於 Avenova 品牌產品組合的擴展，因為認識到乾眼症可能是一種多方面的頑固而複雜的疾病，可能需要多種方法來治療。

We now have products that address each step of the standard at-home dry eye treatment regimen. Our scientifically developed best-in-class portfolio includes our flagship Avenova Lid & Lash Solution as well as lubricating eyedrops for instant relief, a warm eye compress to sooth irritated eyes and the i-Chek to monitor physical eyelid health. The US dry eye market is rapidly growing and is expected to exceed $4.8 billion by 2030.

我們現在擁有針對標準家庭乾眼症治療方案的每個步驟的產品。我們以科學的方式開發的一流產品組合包括旗艦產品 Avenova Lid & Lash Solution 以及可立即緩解疼痛的潤滑眼藥水、可舒緩受刺激眼睛的溫暖眼敷和用於監測眼瞼健康的 i-Chek。美國乾眼症市場正在快速成長，預計到 2030 年將超過 48 億美元。

Among the factors impacting the prevalence of dry eye, our increased computer time and smart screen usage, the aging population heighten awareness of this condition and improve diagnostic capabilities. The fact that dry eye can be a complex condition was corroborated by a recent survey of 337 optometrists across the US that was published in the Eyes on Eyecare 2024 Dry Eye Report. According to the survey, more than 80% of respondents found dry eye diagnosis in treatment moderately to extremely important in generating revenue for their practices and respondents estimated that more than two-thirds of their patients have some form of dry eye disease.

在影響乾眼症盛行率的因素中，我們使用電腦和智慧螢幕的時間增加，人口老化提高了人們對這種疾病的認識並提高了診斷能力。近期對全美 337 名驗光師進行的一項調查證實，乾眼症可能是一種複雜的疾病，該調查結果發表在《Eyes on Eyecare 2024 乾眼症報告》中。根據調查，超過 80% 的受訪者認為，乾眼症診斷在治療中對於他們的診所創造收入具有中等到極其重要的意義，受訪者估計，超過三分之二的患者患有某種形式的乾眼症。

Dry eye was ranked as the second leading area of specialization exceeded only by primary eye care and it's expected to account for 43% of their clinical focus over the coming 12 months. This is up from only 17% in 2023. Importantly, the report recommended that a personalized treatment approach may be essential in the successful management of dry eye.

乾眼症被列為僅次於初級眼保健的第二大專業領域，預計在未來 12 個月內將佔其臨床重點的 43%。這一比例較 2023 年的 17% 上升。重要的是，該報告建議個人化的治療方法對於成功治療乾眼症至關重要。

In a further effort to help manage the multifactorial nature of dry eye, we expanded our Avenova product bundles to provide personalized collections. Our new Avenova Total Eye Health, Dry Eye Essentials, and the Clean & Relieve bundles provide individuals with personalized product options at a discounted price. The Eyes on Eye Care survey specifically identified daily lid and lash hygiene as one of the top three approaches for patients with dry eye disease and hypochlorous acid as a top approach for lid and lash hygiene. The cornerstone of each of our new personalized product bundles is the Avenova Lid & Lash Solution which is formulated with our proprietary pure hypochlorous acid, differentiating it from other hypochlorous acid sprays in the market.

為了進一步幫助控制乾眼症的多因子特性，我們擴展了 Avenova 產品包以提供個人化系列。我們全新的 Avenova Total Eye Health、Dry Eye Essentials 和 Clean & Relieve 套裝以折扣價為個人提供個人化的產品選擇。《眼睛上的眼部護理》調查特別指出，日常眼瞼和睫毛清潔是治療乾眼症患者的三大方法之一，而次氯酸是治療眼瞼和睫毛清潔的首要方法。我們每個新個人化產品包的基石都是 Avenova Lid & Lash Solution，它採用我們專有的純次氯酸配製而成，與市場上其他次氯酸噴霧劑有所區別。

You may have seen our recent announcement regarding record Amazon Prime Day sales of our Avenova products. During the two-day event, which was held on July 16 and 17, we offered a 20% discount to reward loyal customers with great pricing on their products that they rely on while attracting new customers and providing us with the opportunity to convert them into subscribers. Over this year's two-day event, Avenova sales were 17% higher than Prime Day 2023 and 40% higher than Prime Day 2022.

您可能已經看到我們最近發布的有關我們的 Avenova 產品在亞馬遜 Prime Day 上創下銷售記錄的公告。在 7 月 16 日至 17 日舉行的為期兩天的活動期間，我們提供了 20% 的折扣，以優惠的價格獎勵忠實客戶購買他們所依賴的產品，同時吸引新客戶並為我們提供了將他們轉化為訂閱者的機會。在今年為期兩天的活動中，Avenova 的銷售額比 2023 年 Prime Day 高出 17%，比 2022 年 Prime Day 高出 40%。

Now I'd like to turn the call over to Tommy to review our financial results. Tommy?

現在我想把電話轉給湯米來回顧我們的財務結果。湯米？

Thank you, Justin, and good afternoon, everybody. I'll review Q2 and the six months results, followed by our cash position. But before we start, I'd like to mention that the financial results for all the periods I'll be discussing today do not include any results from DERMAdoctor. Financial information related to DERMAdoctor can be found in the Form 10-Q that we are filing today under the heading Divestiture and Discontinued Operations.

謝謝你，賈斯汀，大家下午好。我將回顧第二季和六個月的業績，然後回顧我們的現金狀況。但在開始之前，我想提一下，我今天要討論的所有時期的財務結果都不包括來自 DERMAdoctor 的任何結果。與 DERMAdoctor 相關的財務資訊可以在我們今天提交的 10-Q 表格中找到，該表格標題為「剝離和終止經營」。

Now turning to our quarterly results. Total sales net for the second quarter of 2024 were $2.4 million. Essentially, all revenue for the quarter was derived from sales of eyecare products, which increased 8% over the prior year and were driven by higher Avenova branded products sold through our OTC online channels. Total sales net for the second quarter of 2023 were $3.5 million. Those sales were comprised of $2.2 million from eyecare products and $1.3 million from wound care products, which included an unusually large order of the NeutroPhase branded wound care product.

現在來談談我們的季度業績。2024 年第二季的總銷售淨額為 240 萬美元。基本上，本季的所有收入均來自眼部護理產品的銷售，該收入比上年增長了 8%，這得益於透過我們的 OTC 線上管道銷售的 Avenova 品牌產品銷量增加。2023 年第二季的總銷售淨額為 350 萬美元。這些銷售額包括 220 萬美元的眼部護理產品和 130 萬美元的傷口護理產品，其中包括一筆異常大的 NeutroPhase 品牌傷口護理產品訂單。

Gross margin on net product revenue for the second quarter of 2024 was 66% compared with 49% for the second quarter of 2023. The improvement was primarily due to the increase in sales of higher-margin eyecare products and a decrease in sales of lower-margin wound care products. Sales and marketing expenses for the second quarter of 2024 of $1 million declined 13% from the prior year as we continue to benefit from efficiencies from our digital advertising expertise. G&A expenses for the second quarters of 2024 and 2023 remain consistent at $1.6 million.

2024 年第二季淨產品收入的毛利率為 66%，而 2023 年第二季為 49%。這一改善主要歸因於利潤率較高的眼部護理產品銷售額的成長以及利潤率較低的傷口護理產品銷售額的下降。2024 年第二季的銷售和行銷費用為 100 萬美元，較前一年下降 13%，因為我們繼續受益於數位廣告專業知識帶來的效率。2024 年和 2023 年第二季的 G&A 費用保持不變，為 160 萬美元。

Noncash items for the second quarter of 2024 included a loss on the change in fair value of warrant liabilities of $80,000 and a loss on the change in fair value of embedded derivative liability of $83,000. Noncash items for the second quarter of 2023 included a gain on changes in fair value of warrant liabilities of $216,000 and a gain on change in fair value of embedded derivative liability of $40,000. Accretion of interest and amortization of discounts on convertible notes for the second quarter of 2024 was $0.3 million compared with $0.5 million for the second quarter of 2023.

2024 年第二季的非現金項目包括認股權證負債公允價值變動損失 80,000 美元及內嵌衍生性商品負債公允價值變動損失 83,000 美元。2023 年第二季的非現金項目包括認股權證負債公允價值變動收益 216,000 美元及內嵌衍生性商品負債公允價值變動收益 40,000 美元。2024 年第二季可轉換票據利息增加及折扣攤銷為 30 萬美元，而 2023 年第二季為 50 萬美元。

Other expense net for the second quarter of 2024 was $69,000 compared with $0.4 million for the second quarter of 2023, with the decrease due primarily to higher finance costs in the prior year period. Net loss attributable to common stockholders for the second quarter of 2024 was $1.6 million or $1.37 per share. This compares with a net loss attributable to common stockholders for the second quarter of 2023 of $4 million or $44.43 per share, which included a $2 million noncash increase to accumulated deficit due to adjustment to preferred stock conversion price.

2024 年第二季的其他費用淨額為 69,000 美元，而 2023 年第二季為 40 萬美元，下降的主要原因是去年同期的財務成本較高。2024 年第二季歸屬於普通股股東的淨虧損為 160 萬美元，即每股 1.37 美元。相較之下，2023 年第二季歸屬於普通股股東的淨虧損為 400 萬美元，即每股 44.43 美元，其中包括因調整優先股轉換價格而導致的累計赤字非現金增加 200 萬美元。

Turning to the six months results. Net sales for the six months ended June 30, 2024, were $5 million. This compares with $5.9 million for the six months ended June 30, 2023, which included the large wound care product order as mentioned earlier. Sales of eyecare products for the first half of 2024 of $4.8 million compared with $4.4 million from the prior year period. Gross margin on net product sales for the first half of 2024 increased to 67% from 57% for the first half of 2023.

回顧六個月的結果。截至 2024 年 6 月 30 日的六個月的淨銷售額為 500 萬美元。相較之下，截至 2023 年 6 月 30 日的六個月內，其收入為 590 萬美元，其中包括前面提到的大量傷口護理產品訂單。2024 年上半年眼部護理產品銷售額為 480 萬美元，去年同期為 440 萬美元。2024 年上半年淨產品銷售毛利率從 2023 年上半年的 57% 上升至 67%。

For the six months ended June 30, 2024, sales and marketing expenses decreased 14% and G&A expenses increased 18%, both compared with the six months ended June 30, 2023. The increase in G&A expense were primarily due to higher nonreoccurring strategic initiative costs, including the DERMAdoctor divestiture. We also incurred a $0.9 million expense in the first half of 2024 related to the DERMAdoctor divestiture with no comparable item in the first half of 2023.

截至 2024 年 6 月 30 日的六個月，與截至 2023 年 6 月 30 日的六個月相比，銷售和行銷費用下降了 14%，一般及行政費用增加了 18%。一般及行政費用的增加主要是由於非經常性策略計劃成本增加，包括 DERMAdoctor 資產剝離。我們也在 2024 年上半年發生了與 DERMAdoctor 剝離相關的 90 萬美元費用，而 2023 年上半年沒有可比較項目。

Net loss attributable to common stockholders for the first half of 2024 was $5.2 million or $5.57 per share. This compared with a net loss attributable to common stockholders for the first half of 2023 of $5.8 million or $77.42 per share.

2024 年上半年歸屬於普通股股東的淨虧損為 520 萬美元，即每股 5.57 美元。相較之下，2023 年上半年歸屬於普通股股東的淨虧損為 580 萬美元，即每股 77.42 美元。

Turning to our balance sheet. We had cash and cash equivalents of $0.8 million as of June 30, 2024. We completed an underwritten public offering late last month, raising gross proceeds of approximately $3.9 million, which included a partial underwriter's over-allotment. Investors have since exercised all the prefund awards from the public offering with an outstanding share count now at approximately 4.9 million shares. The F-1, F-2, and F-3 warrants remain outstanding each with a onetime reset of the exercise price to the lesser of the current exercise price or 90% of the volume weighted average prices for the 5 trading days immediately preceding the 60th calendar day after issuance.

轉向我們的資產負債表。截至 2024 年 6 月 30 日，我們的現金和現金等價物為 80 萬美元。我們上個月底完成了承銷公開發行，籌集了約 390 萬美元的總收益，其中包括部分承銷商的超額配售。此後，投資者已行使了所有公開發行的預付資金獎勵，目前流通股數約為 490 萬股。F-1、F-2 和 F-3 認股權證仍然未償還，其行使價格一次性重置為當前行使價格或發行後第 60 個日曆日之前 5 個交易日的成交量加權平均價格的 90% 中的較低者。

And now I'll turn the call back to Justin.

現在我會把電話轉回給賈斯汀。

Thanks, Tommy. As Tommy just mentioned, we completed a capital raise last month that will allow us to pursue some strategic and fundamental transactions from a position of strength. Among these options is a possible transaction that would fundamentally change our business, and we look forward to providing more details at the appropriate time.

謝謝，湯米。正如湯米剛才提到的，我們上個月完成了融資，這將使我們能夠從優勢地位進行一些策略性和基礎性交易。這些選擇中包括一項可能從根本上改變我們業務的交易，我們期待在適當的時候提供更多細節。

In the meantime, we continue to focus on our established position in the large US dry eye market and to continue efficiently growing our sales of our best-in-class Avenova products. We're managing our sales and marketing expenses through optimized digital programs, which allow us to build on the predictable reoccurring sales from our loyal customer base. So with that overview of our business and our recent financial performance, I thank you for your attention.

同時，我們將繼續專注於我們在美國龐大的乾眼症市場中的既定地位，並繼續有效地增加我們一流的 Avenova 產品的銷售。我們透過優化的數位程式來管理我們的銷售和行銷費用，這使我們能夠從忠實的客戶群中建立可預測的重複銷售。因此，透過以上對我們的業務和近期財務表現的概述，我感謝您的關注。

Operator, we're now ready to take questions.

接線員，我們現在可以回答問題了。

(Operator Instructions) Jeffrey Cohen, Ladenburg Thalmann.

（操作員指示）傑弗裡·科恩，拉登堡·塔爾曼。

Justin and Tommy, this is actually Destiny on for Jeff. I wanted to start. I know in the comparable period, you did have some revenue based on the wound care product. I'm just wondering if you have anything to call out there or should we expect any other kind of stocking orders? I know it's really lumpy and hard to kind of predict, but I'm just curious if you have any commentary around that?

賈斯汀和湯米，這實際上是傑夫的命運。我想開始。我知道在同期，你們確實從傷口護理產品中獲得了一些收入。我只是想知道您是否有什麼要說的，或者我們是否應該期待任何其他類型的庫存訂單？我知道這確實很複雜並且很難預測，但我只是好奇您對此有何評論？

Yes. So we should see some orders in the remainder of the year. But they're not going to be, I think, as material or as large as they were in 2023. But we'll continue to see some orders later this year and then, of course, into 2025.

是的。因此我們應該會在今年剩餘時間內看到一些訂單。但我認為，它們不會像 2023 年那麼重要或那麼大。但今年晚些時候，我們將繼續看到一些訂單，當然，到 2025 年也是如此。

Okay. Got it. So largely unchanged, got it. And then can you give us some more idea or not idea, more color on the changes in these efficiencies for your marketing strategy? Is it an increased ROAS or return on ad spend? Is there another metric that you're using to kind of determine what's working and what's not? Can you give us a little more color there?

好的。知道了。所以基本上沒有變化，明白了。然後，您能否提供我們更多關於您的行銷策略效率變化的詳細資訊？這是否提高了 ROAS 或廣告支出回報率？您是否使用其他指標來判斷什麼有效、什麼無效？您能給我們更多詳細資訊嗎？

Sure. Absolutely. It's a good question because it's a main focus of our business. We are trying to become just really better at what we're doing. So we really shifted the strategy about a year ago where we moved away from spending a lot of money in the top of the funnel and spending a lot of money in customer acquisition cost and turned our approach on its head, where we're really focusing on our Subscribe & Save customers right now. So after being in the market for 8 or 9 years, almost 10 years now, with Avenova, a lot of people have tried the product and they just need reminders to buy the product again. So the best case scenario for us is those customers because it's a personal consumable product.

當然。絕對地。這是個好問題，因為這是我們業務的重點。我們正在努力使我們所做的事情變得更好。因此，我們在大約一年前真正改變了策略，不再在漏斗頂部投入大量資金，也不再在客戶獲取成本上投入大量資金，而是徹底改變了我們的方法，現在我們真正關注的是我們的「訂閱和保存」客戶。因此，在 Avenova 進入市場 8 或 9 年後，現在已經快 10 年了，很多人都嘗試過該產品，他們只需要提醒就會再次購買該產品。因此，對我們來說最好的情況就是那些客戶，因為它是一種個人消費品。

Best case scenario is for those customers to become a Subscribe & Save customer. But we realize that not everybody is. So I think have done a really good job of getting people into subscriptions on our website and also on Amazon. So when we get somebody into the subscribe and save program, that means that we don't need to spend any money to make that money. And that is incredibly efficient for us. So that frees up a little bit more money to go after new customer acquisition or just reminding those customers who want to repeat purchase that they need to go on and do a onetime repeat purchase.

最好的情況是這些客戶成為「訂閱和保存」客戶。但我們意識到並不是每個人都是這樣的。所以我認為我們在吸引人們訂閱我們的網站和亞馬遜方面做得非常好。因此，當我們讓某人加入訂閱和保存計劃時，這意味著我們不需要花任何錢來賺錢。這對我們來說非常有效率。這樣就可以釋放出更多的資金來吸引新客戶，或者只是提醒那些想要重複購買的客戶，他們需要繼續進行一次性重複購買。

So over the past 12 years, we've really changed the strategy from filling the top end of the funnel, which is inefficient to really focusing and growing that community of users and getting them into the Subscribe & Save program, where we don't have to spend any money to make that money.

因此，在過去的 12 年裡，我們確實改變了策略，從填補漏斗頂端（效率低下）轉向真正關注和發展用戶社區，並讓他們加入「訂閱和保存」計劃，這樣我們不需要花任何錢就能賺錢。

Okay. That makes sense. Got it. And then what portion of your revenue is now generated from those Subscribe & Save program? And then I'm also curious, how often are your customers receiving product? Is it monthly? Is it every two months, three months? Can you give more color there?

好的。這很有道理。知道了。那麼，現在您的收入有多少部分來自「訂閱和保存」計畫？然後我還很好奇，您的客戶多久收到一次產品？是按月支付嗎？是每兩個月一次，還是每三個月一次？你能提供更多顏色嗎？

Sure. Yes. Absolutely. So one of the metrics that is easy to remember and that we like to share is that about one-fourth of all of our online revenue comes from Subscribe & Save. So that's really substantial. So just having one-fourth of our revenue, we know that it's going to come in every single month, and we know exactly what it's going to be.

當然。是的。絕對地。因此，一個很容易記住並且我們願意分享的指標是，我們所有線上收入的大約四分之一來自「訂閱和保存」。這確實很重要。因此，我們只需要四分之一的收入，我們就知道它每個月都會進賬，而且我們確切地知道它會是多少。

And then as I mentioned earlier, we don't need to spend any money to make that money. So it's a significant chunk about one-fourth. So we really like that. And customers tend to buy about every month. There are some people who like to be a little bit more thrifty with their use of the spray and they may stretch it out so they get 1 bottle every 45 days. On the outside end, it's 1 every 60 days. But looking at our data, it's the majority of our Subscribe & Save customers buy one bottle per month.

正如我之前提到的，我們不需要花任何錢來賺這些錢。所以這是相當大的一部分，約佔四分之一。所以我們真的很喜歡這個。而且顧客通常每個月都會購買一次。有些人喜歡更節省地使用噴霧，他們可能會延長使用時間，每 45 天使用 1 瓶。從外部來看，每 60 天為 1 次。但從我們的數據來看，大多數「訂閱並儲存」客戶每月都會購買一瓶。

Okay. Got it. And then with the with Prime Day being in the third quarter, when you're looking at Q3 would we see a bit of a bump up compared to Q2 and Q4? Or do you think it's going to be pretty aligned with the growth throughout the remainder of the year. I guess what I'm asking is, even with the Prime Day, is there still the potential that Q4 could grow sequentially, in terms of volume?

好的。知道了。然後，由於 Prime Day 是在第三季度，當您查看第三季度時，我們是否會看到與第二季度和第四季度相比有所增長？或者您認為它將與今年剩餘時間的成長保持相當一致。我想問的是，即使有 Prime Day，第四季的銷量是否仍有可能持續成長？

Destiny, I know you're looking for numbers to plug into the model. I understand what you're asking, and it's a fair question. We normally have a stronger Q4. We do a push in our physician-dispensed channel towards the end of the year. We also do a back-to-school push. So we tend to have a stronger Q4. So what we're looking at is incremental increases in Q3 with a pretty strong Q4.

命運，我知道你正在尋找可以插入模型的數字。我明白你的要求，這是一個合理的問題。我們的第四季通常表現更強勁。我們將在年底前對醫師配藥管道進行大力推廣。我們也進行了返校宣傳活動。因此我們傾向於擁有更強勁的第四季。因此，我們看到第三季的增量成長和第四季的強勁成長。

Okay. Okay. Got it. That's enough for my model. I appreciate that. And when you touched on the physician-dispensed channels, can we talk a little bit more about that? I didn't hear too much commentary in your prepared remarks.

好的。好的。知道了。對於我的模型來說這就足夠了。我很感激。當您談到醫師配藥管道時，我們可以進一步討論一下嗎？我沒有在你準備好的發言中聽到太多評論。

Yes. So the physician-dispensed channel plays an outsized role sort of strategically in building the brand. So our lowest customer acquisition cost, which is one of the metrics that we look at for efficiency and success in the online sales channel. Our lowest customer acquisition cost and our stickiest customer is when a patient learns about Avenova through their doctor. So we really try and push the physician-dispensed channel, not only for the revenue that it creates on its own and independently as its own sales channel, but the way that it introduces new customers to the online sales channel.

是的。因此，醫師配藥管道在品牌建立中發揮巨大的策略性作用。因此，我們的最低客戶獲取成本是我們衡量線上銷售管道效率和成功的指標之一。當患者透過醫生了解 Avenova 時，我們的客戶獲取成本最低，客戶黏性也最高。因此，我們確實嘗試推動醫生配藥管道，不僅因為它作為自己的銷售管道可以獨立創造收入，還因為它可以將新客戶引入線上銷售管道。

So the physician-dispensed channel for us is incredibly important to the brand. And it's incredibly important to the online sales channel because that's really how we're feeding new customers into that efficient sales channel. So we continue to push that, and we have our loyal doctors who are Avenova believers and they buy from us every month. And then we always have a push where we do continuing education events and just continuous outreach to bring new doctors into the fold as well. But from a revenue perspective, the online sales channels really dwarf that wholesale physician-dispensed channel.

因此，對我們來說，醫師配藥管道對於品牌來說極為重要。這對於線上銷售管道來說非常重要，因為這是我們真正將新客戶引入高效銷售管道的方式。因此，我們繼續推動這項舉措，我們擁有忠實的醫生，他們是 Avenova 的忠實信徒，他們每個月都會從我們這裡購買產品。然後，我們始終致力於開展繼續教育活動，並不斷吸引新的醫生加入。但從收入角度來看，線上銷售管道確實比批發醫生配藥管道收入高得多。

Okay. Got it. And then maybe, Tommy, this one is for you. The margins continue to look pretty solid. They look good. So can you tell me a bit more about any changes in your supply chain? And at what revenue level do you think you're really at the optimal level or that optimal economy of scale?

好的。知道了。那麼也許，湯米，這個是給你的。利潤率看起來仍然相當穩固。它們看起來不錯。那麼，您能否告訴我更多有關您們供應鏈的變化的信息？您認為在什麼樣的收入水平上您才真正處於最佳水平或最佳規模經濟？

No, there isn't really a whole lot of changes in our supply chain.

不，我們的供應鏈實際上並沒有太多變化。

Yes. So Destiny, our margins improved over last year just because this year, we didn't have a very large low-margin wound care order. So yes. So you take a little bit off of the top line because we didn't have that $1 million order of NeutroPhase, which we had last year. So a little bit of a blessing and a curse last year. We had a larger top line, but it's a low-margin product. So it dragged down our gross margin quite a bit. So what you see this year is consistent margins around the eyecare unit. And those are all around 65%. They have remained steady. Is that right, Tommy, 65%?

是的。因此，Destiny，我們的利潤率比去年有所提高，只是因為今年我們沒有接到非常大的低利潤傷口護理訂單。是的。因此，我們的營業額會稍微減少一些，因為我們沒有像去年那樣獲得 NeutroPhase 的 100 萬美元訂單。所以說，去年有福也有禍。我們的營業額較大，但產品利潤卻較低。因此，這大大降低了我們的毛利率。因此，您今年看到的是眼保健部門的利潤率保持穩定。這些都在 65% 左右。他們一直保持穩定。對嗎，湯米，65%？

Yes.

是的。

Yes. So that has remained steady over the past year, and we also expect that to remain constant going forward.

是的。因此，這一數字在過去一年中一直保持穩定，我們也預計未來這一數字將保持不變。

Okay. And then one more, if I may. I'm curious about some of the partnerships or co-promotion agreements you have going on. Can you talk a bit about the agreement with Eyenovia and how that's going? And then I know you are collaborating with another company for some international markets. Are there any international markets you're looking to go in direct on your own?

好的。如果可以的話，我再說一個。我對你們正在進行的一些合作或聯合推廣協議很好奇。您能談談與 Eyenovia 的協議以及進展嗎？然後我知道您正在與另一家公司合作開拓一些國際市場。您是否希望直接進入某些國際市場？

Yes. So that last question is the easiest question to answer. We don't anticipate doing any expansion all on our own because it's just we don't have the existing footprint. We don't have existing relationships. And it would be too heavy of an investment for us to go on our own. So we are working on partnerships and partnerships of all sorts and sizes.

是的。所以最後一個問題是最容易回答的問題。我們不打算獨自進行任何擴張，因為我們沒有現有的足跡。我們不存在現有的關係。如果我們自己去的話，投資會太沉重。因此，我們正在致力於建立各種類型和規模的合作夥伴關係。

So while our base business continues to be solid, our eyecare business is efficient. It's growing incrementally, and we think that will continue really, the main focus for the remainder of the year is all partnerships for us. And then at this time, all I can really tell you, Destiny, is that these strategic partnerships and possible fundamental transactions are our main focus for the remainder of the year.

因此，在我們基礎業務持續穩固的同時，我們的眼保健業務也十分有效率。它正在逐步增長，我們認為這種情況將會持續下去，今年剩餘時間的主要重點是所有合作關係。然後此時，我真正能告訴你的是，Destiny，這些策略夥伴關係和可能的基本交易是我們今年剩餘時間的主要關注點。

Edward Woo, Ascendiant Capital.

愛德華吳（Edward Woo），Ascendiant Capital。

Has there been any change in distribution costs or advertising on Amazon?

亞馬遜的分銷成本或廣告有變化嗎？

Yes. Ed, nice to hear from you. And good question because I think industry-wide, prices are -- advertising costs are increasing. Fortunately, for us, we haven't really seen that. And so our costs tend to be pretty consistent. We haven't really seen much of an increase there. We keep an eye, a close eye on the Google and Meta ads and really try to pull back spend when those become inefficient. But those are a much smaller portion of our spend. And most of our customer acquisition, as I mentioned, comes from the physician-dispensed channel and also advertising within the Amazon environment.

是的。艾德，很高興收到你的來信。這是個好問題，因為我認為整個產業的價格——廣告成本都在上漲。幸運的是，我們還沒有真正看到這種情況。因此我們的成本趨於穩定。我們確實沒有看到那裡有太大的成長。我們密切關注 Google 和 Meta 廣告，當這些廣告變得效率低下時，我們會盡力減少支出。但這些只占我們支出的一小部分。正如我所提到的，我們的大部分客戶獲取都來自醫生配藥管道以及亞馬遜環境中的廣告。

This concludes our question-and-answer session. I would like to turn the conference back over to Justin Hall for any closing remarks.

我們的問答環節到此結束。我想將會議交還給賈斯汀·霍爾 (Justin Hall) 來做結束語。

Thank you for joining us today and your interest in NovaBay. We're excited about our strategic focus on the large and growing eyecare market within our established eyecare business. We look forward to providing an update on our next quarterly call in November. Thanks again, and have a nice day.

感謝您今天加入我們並對 NovaBay 感興趣。我們很高興能夠將策略重點放在我們現有的眼保健業務中龐大且不斷成長的眼保健市場。我們期待在 11 月的下一次季度電話會議上提供最新資訊。再次感謝，祝您有愉快的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。