NovaBay Pharmaceuticals (NBY) 8-K/A Financial Statements and Exhibits

Exhibit 99.2

DERMAdoctor, LLC Unaudited Balance Sheets as of September 30, 2021 and 2020

	September 30, 2021		September 30, 2020
Assets
Cash and cash equivalents	$	1,440	$	3,871
Accounts receivable		1,092,614		567,851
Inventory, net		2,672,494		3,311,955
Prepaid expenses		16,431		31,954
Total current assets		3,782,979		3,915,631
Property and equipment, net		56,956		75,324
Intangibles, net		65,546		125,399
Total assets	$	3,905,481	$	4,116,354
Liabilities and Equity
Liabilities
Checks written in advance of deposits	$	-	$	34,627
Related party notes payable		1,645,000		1,690,000
Paycheck Protection Program Loan		-		315,800
Accounts payable		38,138		436,344
Related party accounts payable		45,000		45,000
Accrued expense and other current liabilities		899,340		1,070,066
Total current liabilities		2,627,478		3,591,837
Total liabilities		2,627,478		3,591,837
Equity
Redeemable membership interest		1,270,000		1,270,000
Members' equity (deficiency)		8,003		(745,483	)
Total Equity		1,278,003		524,517
Total liabilities, redeemable membership interest and members' equity (deficiency)	$	3,905,481	$	4,116,354

DERMAdoctor, LLC Unaudited Income Statements for the Nine Months Ended September 30, 2021 and 2020

	For the 9 months ended			For the 9 months ended
	September 30, 2021			September 30, 2020
Net sales	$	4,604,089		$	6,781,592
Cost of sales		1,800,938			3,204,146
Gross Profit		2,803,151			3,577,446
Operating expenses
Selling expenses		1,226,173			1,516,048
General and administrative expenses		1,075,567			1,064,910
Total Expenses		2,301,740			2,580,958
Income from operations		501,411			996,488
Other income (expense), net		602,503			(3,979	)
Interest Expense		(92,483	)		(96,274	)
Net income	$	1,011,431		$	896,235

DERMAdoctor, LLC Unaudited Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020

	For the 9 months ended			For the 9 months ended
	September 30, 2021			September 30, 2020
Cash flows from operating activities:
Net income	$	1,011,431		$	896,235
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property and equipment		13,563			20,026
Amortization of intangibles		34,700			28,862
Other income recognized on forgiveness of payroll protection program loan		(602,500	)		-
Changes in operating assets and liabilities:
Accounts receivable		(877,767	)		171,273
Inventory, net		209,924			(833,832	)
Prepaid expenses		3,548			1,302
Contract assets		-			145,079
Checks written in advance of deposits		(39,377	)		(236,483	)
Accounts payable		(180,747	)		62,788
Accrued expenses and other liabilites		495,661			(42,683	)
Net cash provided by operating activities		68,436			212,567
Cash flows from investing activities:
Purchases of property and equipment		-			(12,231	)
Purchases of intangibles		-			(34,580	)
Net cash used in investing activities		-			(46,811	)
Cash flows from financing activities:
Net proceeds (repayment) on lines of credit		(324,477	)		(482,572	)
Repayments of related party notes payable		(45,000	)		-
Proceeds from payroll protection program loan		286,700			315,800
Net cash used in financing activities		(82,777	)		(166,772	)
Net (decrease) in cash		(14,341	)		(1,016	)
Cash - Beginning of period		15,781			4,887
Cash - End of period	$	1,440		$	3,871
Supplemental disclosure of cash and non-cash investing and financing transactions
Cash paid for interest	$	92,843		$	96,274