Stablecoin Development Corp.

Total net sales in Q2 2024 were $2.4 million, versus $3.5 million in Q2 2023. Eyecare sales increased 8% year over year in the quarter and reached $4.8 million for the first half of 2024, compared with $4.4 million a year ago. Gross margin on net product revenue improved to 66% from 49% in the prior-year quarter, and 67% for the first half versus 57% last year. Sales and marketing expense was $1 million, down 13% year over year, while G&A was flat at $1.6 million. Net loss attributable to common stockholders was $1.6 million, or $1.37 per share, compared with $4 million, or $44.43 per share, in Q2 2023. Cash and cash equivalents were $0.8 million at June 30, 2024; after quarter-end, the company raised about $3.9 million in gross proceeds from an underwritten public offering. Management reiterated confidence in approximately $10 million of eyecare revenue for full-year 2024, noted that Q4 is typically stronger, and said Q3 should show incremental growth followed by a stronger Q4.

Justin Hall framed the quarter as continued progress in eyecare, driven by Avenova online and subscription customers. He emphasized a deliberate shift away from expensive top-of-funnel spending toward Repeat/Subscribe & Save economics, saying that once customers subscribe, the company no longer has to spend money to generate that revenue. He also highlighted Prime Day strength, product-bundle expansion, and the strategic importance of physician-dispensed channels as a feeder into the online business.

Tommy Law said the quarter benefited from a cleaner mix, because last year included an unusually large low-margin wound care order that pressured margin. He cited Q2 gross margin of 66%, sales and marketing of $1 million, G&A of $1.6 million, and first-half gross margin of 67%, with higher G&A tied to nonrecurring strategic costs including the DERMAdoctor divestiture and a $0.9 million related expense in the first half. He also noted cash of $0.8 million at June 30 and the subsequent capital raise of about $3.9 million in gross proceeds; the company also said F-1, F-2 and F-3 warrants remain outstanding with a one-time reset feature.

Analysts focused on whether wound care orders would recur, marketing efficiency, subscription penetration, seasonal patterns, physician-dispensed channels, margins, and partnerships. Management said some wound care orders should still arrive later in 2024 and into 2025, but not at the same magnitude as 2023, and explained that roughly a quarter of online revenue now comes from Subscribe & Save with most customers buying monthly. They also said Q4 is normally stronger because of physician-dispensed pushes and back-to-school activity, while international expansion on their own is not planned because they lack the footprint and prefer partnerships; strategic partnerships and possible fundamental transactions remain the main focus.