🧾 What This Document Is

This is an 8-K filing, which is like a company's "breaking news" update to the SEC. Stablecoin Development Corp (formerly NovaBay Pharmaceuticals) is using it to officially announce two big things: 1) Its corporate rebranding is complete, and 2) It's sharing the latest numbers on its major investment in the Sky protocol ecosystem.

👉 Why it matters: This isn't just a name change. It's the final stamp on a complete business pivot—from pharmaceuticals to being a public company that invests in and builds around stablecoin technology.

🏢 What The Company Does

👉 In simple terms… Stablecoin Development Corp (now trading as SDEV) has transformed into an "on-chain holding company." Think of it as a publicly traded investment fund or holding company whose strategy and balance sheet are built around digital assets, specifically the "stablecoin economy."

• Initial Focus: They are starting with the Sky protocol ecosystem (which evolved from the famous project MakerDAO).
• Their Goal: To provide public market investors a way to gain exposure to the growth of stablecoins and related decentralized financial infrastructure.

🚀 Key Moves: Rebranding & New Identity

The company has legally changed its name and stock ticker to reflect its new mission.

• New Legal Name: Stablecoin Development Corporation (effective April 2, 2026).
• New Ticker Symbol: SDEV on the NYSE American exchange.
• Why they did it: CEO Michael Kazley says the old identity (NovaBay Pharmaceuticals) no longer matched their strategy. The new name and ticker are meant to clearly signal to the market what the company actually does now.

💰 The Digital Asset Position: Sky (SKY) Tokens

The core of their new strategy is a massive holding of SKY tokens, the governance token for the Sky protocol. Here’s the snapshot as of March 31, 2026:

• Total SKY Held: ~2.15 billion tokens.
• Ownership Stake: This represents about 9.15% of the entire SKY token supply (total supply is ~23.46 billion).
• Staking Earnings: Since they started "staking" (essentially locking up tokens to help secure the network and earn rewards), they've earned ~35.3 million SKY in rewards.

👉 Why it matters: This is their strategic war chest. They aren't just holding these tokens; most are actively staked in the Sky ecosystem, generating more tokens as rewards. This shows deep, committed financial and operational integration with the protocol.

📈 How They Built Their Position

The company used a major funding round to kickstart its digital asset treasury.

• January 2026 Private Placement: They raised ~$134 million in gross proceeds. A key part of this deal was receiving 943.6 million freely tradable SKY tokens directly.
• Open-Market Buying: Since that private placement, they've used cash to buy ~1.17 billion more SKY on the open market at an average price of ~$0.065 per token.

👉 What this reveals: They are executing a clear, active treasury strategy—using both direct placements and open-market purchases to accumulate a dominant position in their chosen ecosystem.

🔮 What's Next: The Stated Strategy

The company has outlined its forward-looking plan:

• Disciplined Treasury Management: They will continue to manage their digital asset holdings strategically.
• Staking Participation: They plan to keep earning rewards by participating in the Sky protocol's network.
• Long-Term Engagement: They aim to be a long-term player in digital asset ecosystems that are aligned with building stablecoin infrastructure.
• Public Market Vehicle: Their overarching goal is to be a "disciplined public vehicle" for investors to access the stablecoin economy.

⚖️ Big Picture: Strengths & Risks

👍 Potential Strengths:

• Clear Strategic Pivot: They've fully committed to a new, modern fintech sector.
• Significant Holdings: A ~9% ownership stake in a major DeFi protocol is substantial.
• Active Strategy: They aren't passive; they're staking, earning, and actively managing their treasury.

⚠️ Key Risks:

• Volatility: The value of SKY tokens and crypto assets, in general, is highly volatile.
• Protocol Risk: Their success is now tied to the health, security, and governance of the Sky protocol.
• Execution Risk: Successfully operating as a digital asset holding company is a new challenge for the management team.

🧠 The Analogy

This is like a traditional, sleepy real estate company selling all its properties to become a major, publicly traded owner and operator of a revolutionary new shopping mall (the Sky protocol). They own a huge chunk of the mall (9.15%), collect rent from it (staking rewards), and plan to use their profits to buy even more stores in that same thriving mall district.

🧩 Final Takeaway

Stablecoin Development Corp (SDEV) has completed its transformation into a public-market vehicle for investing in stablecoin infrastructure, anchored by a dominant, ~9% ownership stake in the Sky protocol. Their filing details the active management of this position and clearly signals that their future is entirely tied to the growth of this specific digital asset ecosystem.

Contact: Tommy Law, Chief Financial Officer, [email protected]