Stablecoin Development Corporation, formerly known as NovaBay Pharmaceuticals, Inc., reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2026. The company generated $2.5 million in staking revenue, a notable increase from zero in the same period last year, reflecting its strategic pivot towards digital assets, particularly within the Sky Protocol ecosystem. The company also recognized an unrealized gain of $22.7 million on its digital assets, bringing the total fair value of its holdings to approximately $160.1 million, a substantial increase from no digital assets held as of December 31, 2025.
The financial performance marks a dramatic turnaround compared to the previous fiscal period. The company reported a net income of $552.4 million for the three months ended March 31, 2026, compared to a net loss of $3.3 million in the same quarter of 2025. This shift was largely driven by non-cash accounting adjustments related to warrant liabilities, including a non-cash loss of $5.3 billion on the fair value of warrant liabilities in excess of proceeds at issuance and a non-cash gain of $5.8 billion on changes in fair value of warrant liabilities. The reclassification of the January 2026 Pre-Funded Warrants to stockholders' equity following stockholder approval on March 12, 2026, contributed to this financial outcome.
Operationally, the company has made significant strides in its digital asset strategy. As of March 31, 2026, Stablecoin Development Corporation held 2.15 billion SKY tokens, representing approximately 9% of the total supply. The company has actively engaged in staking activities, earning over 35 million SKY tokens as rewards during the quarter. The company’s cash and cash equivalents increased to $18.4 million from $8.0 million at the end of the previous fiscal year, bolstered by proceeds from a private placement and an at-the-market (ATM) offering.
In terms of strategic developments, the company completed a private placement on January 16, 2026, raising approximately $134 million, which included cash and digital assets. This capital is intended to support the company's long-term digital asset treasury strategy. The company also underwent a corporate name change and began trading under the new ticker symbol "SDEV" on the NYSE American, reflecting its focus on digital assets. The company’s operational focus is now centered on accumulating and deploying digital assets while maintaining governance and risk management.
Looking ahead, Stablecoin Development Corporation anticipates that its financial performance will continue to be influenced by the market price of SKY tokens and the economics of staking rewards. The company believes its existing cash and cash equivalents will be sufficient to meet planned operating expenses for at least the next year, although future growth and obligations will depend on market conditions and access to capital. The company remains committed to its digital asset strategy while navigating the evolving regulatory landscape surrounding digital assets.
About NovaBay Pharmaceuticals, Inc.
NovaBay Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing proprietary antimicrobial products, primarily hypochlorous acid-based solutions for eye care, wound care, and dermatology. Its core offerings included Avenova eye spray and wound care products. The company operates in healthcare markets targeting consumers and medical professionals, emphasizing non-toxic, scientifically proven solutions. Currently, it is winding down operations, pursuing liquidation, or exploring strategic alternatives.
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