www.NovaBay.comwww.Avenova.comwww.CelleRx.com

Investor PresentationJanuary 2020

Justin M. HallCEO and General Counsel

NYSE America: NBY

Forward-Looking Statements

This presentation contains forward-looking statements, within the meaning of applicable U.S. securitieslaws, which statements can, in some cases, be identified with terms such as “project,” “believe,” “may,”“plan,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “target,” “potential” and othersimilar expressions. These forward-looking statements reflect NovaBay’s current expectation andassumptions, such as expected market potential and market acceptance of our products and are subjectto a number of risks and uncertainties that could cause actual results to differ materially from thoseanticipated. These risks and uncertainties include, but are not limited to, changing market conditions,the successful and timely completion of clinical studies, the establishment of corporate alliances, theimpact of competitive products and pricing, new product development, uncertainties related to theregulatory approval process and other risks detailed in the Company's filings with the SEC, which filingscan be found at www.sec.gov. Given these risks and uncertainties, you are cautioned not to place unduereliance on such forward-looking statements. The Company undertakes no obligation to publicly updateor revise any forward-looking statements either as a result of new information, future events orotherwise, except as required by applicable U.S. securities laws.

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Investment Highlights

• New direct-to-consumer channel for prescription-strength Avenova on Amazon.com improves product accessibility• Aligns with strategy for cost-efficient growth and builds on Avenova‘s postion as #1 prescribed lid and

lash spray• Accounts for 36% of unit sales in Q3, first full quarter following launch

• Launches of NovaSight and NovaWipes on Amazon.com capitalize on Avenova companion product sales

• Introduction of direct-to-consumer, prescription-strength CelleRx for acute skin care supports growth and capitalizes on proprietary Neutrox technology

• Strategic shift in U.S. commercial strategy results in reduced operating expenses; Q3 operating expenses down 37% over prior year

• New digital marketing programs aimed at online sales growth and expanded customer base

• Seeking opportunities to further leverage the domestic commercial organization and established relationships with eye care professionals

• Strengthened balance sheet to support broader business initiatives

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Natural Molecule

Hypochlorous Acid (HOCl)

• Kills bacteria but is non-resistant unlike antibiotics

• Highly effective against microbial invaders

• Penetrates biofilms quickly

• Non-toxic to mammalian cells

• Non-toxic formulation with no bleach particles

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Mimics molecule produced by white blood cells

Neutrox is Pure Hypochlorous Acid

Neutrox is the active ingredient in Avenova, CellerRx and NeutroPhase I FDA-cleared as 510(k) medical device

H

O

Cl

Advantages

Avenova Advantages

Effectively treats MGD and blepharitis, representing 86% of all chronic dry eye disease

Overcomes limitations of competing therapies

Addresses the underlying cause, not merely the symptoms

Safe for continuous daily use

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Buy-and-Sell (20 mL)

Rx SalesPrescription

(40 mL)Ophthalmologists

Optometrists

Patients

Direct-to-Consumer

(20 mL)

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Defined Strategy Across 3 Distribution Channels

645 prescribers

1,200 prescriptions

7,425 prescribers

66,000 prescriptions

8,297 prescribers

Converted contract sales force into regular, full‐time employees

95,000 prescriptions

Selling strategy re-focused on prescription sales (vs. buy-and-sell)

12,000 prescribers

100,000+ prescriptions

Sales reps in 48 areascovering all large U.S. Metro markets

1 pioneering ophthalmologist prescribing Avenova

Invented the use of pure HOCl in the treatment of blepharitis and bacterial dry eye

15,000 nationwide prescribers

Aligning cost-structure with evolving reimbursement environment

Launched Avenova Direct, CelleRx, NovaSight and NovaWipes

15 sales reps covering 26high-producing U.S. Metro markets

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Journey of Avenova

The Growth of a Product, along with the Rise and Fall of Insurance Reimbursement

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2019 Shift in U.S. Avenova Commercialization Strategy

Q1Q2

Q3Q4

• Increased the number of prescription channel partner pharmacies from 8 to 16 in 2019

• Launched NovaSight and NovaWipes on Amazon.com; Avenova companion products to drive cost-effective growth and leverage our distribution infrastructure

• Introduced direct-to-consumer prescription-strength CelleRx on CelleRx.com

• Higher deductible health plans and loss of coverage by large national pharmacy chains impact per-unit revenue

• Reduced field salesforce from 50 to 15 with remaining reps deployed in high-performing territories with favorable health plan coverage

• Introduced direct-to-consumer prescription-strength Avenova Direct on Amazon.com

Proactive response to evolving reimbursement environment to support sales growth and maintain cost effectiveness

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Prescription-strength Avenova available for the first time without a prescription

Avenova Direct on Amazon.com

• Improves patient access through Amazon.com’s rapid and efficient product distribution launched on June 1, 2019

• Capitalizes on trend of marketing pharmaceuticals directly to consumers, allowing them to forego time-consuming doctor visits and trips to the pharmacy

• Offsets costs in high-deductible healthcare environment with stable gross-to-net pricing

• Sales through Amazon.com expected to produce greatest future growth for Avenova

• Formulated by well-known, board-certified ophthalmologist

• Formulated with 23 active ingredients, more than 2 times the leading eye brand and more than 3 times other popular eye brands

• Contains high level of lutein, known to improve or prevent age-related macular degeneration and identified as lowering cataract risk

• Contains safe levels of zinc and no copper in accordance with ARED2 study results

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Avenova Companion Products

• Specially designed for use when applying Avenova

• Features multi-layers for maximum absorption

• Woven construction and larger size provide advantages over ordinary cotton rounds and cotton balls

• Featured as “frequently bought together” product on Amazon.com

NovaSightProprietary daily vitamin and mineral supplement launched on Amazon.com

NovaWipesDry, soft, hypoallergenic and absorbable wipe for use in applying Avenova

CelleRx Direct-to-Consumer Launch

Initial cost-effective launch strategy to create brand awareness and seed the channel

CelleRx is a topical solution specially designed for post-procedure use to gently cleanse skin

• Non-antibiotic, non-alcohol formulation

• Topical anti-inflammatory properties

• Soothing to the skin

• Ready to use, non-drying and doesn’t stain

• Post-procedure applications for a variety of both ablative and non-ablative cosmetic laser surgeries

• Laser resurfacing, rejuvenation peels, dermabrasions, augmentations, lifts, tattoo removal, surface wounds, as well as other invasive and non-invasive cosmetic procedures

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Q3 Financial Highlights

• Avenova sales of $1.6 million, units sales up 16% from Q2 despite significant reduction in field sales force

• Avenova Direct contributes 36% of unit sales, with this channel expected to be the highest growth opportunity going forward

• Operating expenses decrease 37% from prior year

• Strengthened balance sheet with $6.7 million raised in Q3

• Affirms 2019 annual revenue guidance of $6-8 million

Early success of shift in U.S. commercialization strategy to support Avenova sales growth while maintaining cost effectiveness

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Summary

• New direct-to-consumer channel for Avenova on Amazon.com improves product accessibility

• Launches of NovaSight and NovaWipes on Amazon.com capitalize on Avenova companion product sales

• Introduction of direct-to-consumer, prescription-strength CelleRx for acute skin care supports additional growth

• Strategic shift in U.S. commercial strategy results in operating expense reductions

• New digital marketing programs aimed at online sales growth and expanded customer base

• Seeking opportunities to further leverage the domestic commercial organization and established relationships with eye care professionals

• Strenthened balance sheet supports broader business initiatives

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