Core Viewpoint - ProPhase Labs Inc. will present its second quarter 2025 financial results on August 13, 2025, at 2:00 pm EDT through a virtual conference call [1][2]. Group 1: Company Overview - ProPhase Labs Inc. is a next-generation biotech, genomics, and consumer products company focused on building a healthier world through innovation and actionable insights [4]. - The company is known for its Whole Genome Sequencing solutions and diagnostic developments, including a test for early detection of esophageal cancer [4]. - ProPhase Labs aims to develop, manufacture, and commercialize health and wellness solutions, emphasizing executional excellence and smart diversification [4]. Group 2: Event Details - A press release detailing the financial results will be issued prior to the virtual conference call [2]. - Stakeholders, investors, and individual followers are invited to register for the live event, with a replay available on the company's investor website afterward [2][3].

Core Viewpoint - ProPhase Labs is seeking to increase its authorized shares to 1 billion to attract high-value structured transactions and industry-leading participants in the crypto treasury space, which will enable the company to optimize its digital asset treasury strategy [1][4]. Group 1: Company Strategy - The company will hold a Special Meeting of Shareholders on August 29, 2025, to vote on proposals recommended by the Board of Directors [1]. - The increase in authorized shares is aimed at positioning the company to attract market makers, asset managers, and innovators in the crypto treasury sector [1]. - The CEO emphasized that these proposals are essential for equipping the company with the necessary flexibility and resources to pursue growth opportunities in a rapidly changing industry [4]. Group 2: Financial Goals - The company aims to collect approximately $50 million from Covid accounts receivables, which aligns with its potential crypto treasury strategy [4]. - ProPhase Labs is also focused on developing its BE-Smart esophageal cancer test, which has significant potential, and exploring strategic alternatives for Nebula Genomics, including a potential sale [4]. Group 3: Company Overview - ProPhase Labs Inc. is a next-generation biotech, genomics, and consumer products company dedicated to building a healthier world through innovation and actionable insights [5]. - The company is involved in Whole Genome Sequencing solutions and diagnostic development, including a test for early detection of esophageal cancer [5].

Financing Overview - ProPhase Labs, Inc. announced the closing of a private placement financing for $3 million in senior secured convertible notes with accompanying warrants [1][2] - The notes were issued with a 20% original issue discount and are secured by the Company and subsidiary assets, with the option for prepayment without penalty [2] - Up to an additional $3 million in notes may be purchased by the investors as outlined in the Securities Purchase Agreement [2] Use of Proceeds - The proceeds from the financing will be utilized for working capital, general corporate purposes, and to repay certain existing debt [3] - The financing is expected to support several potential liquidity events, including the collection of up to $50 million in Covid accounts receivable and the potential sale of Nebula Genomics [4] Strategic Initiatives - The funds will also support a recently announced initiative exploring a potential reverse merger crypto treasury strategy and other crypto strategies leveraging Nebula Genomics' blockchain expertise [4] - ProPhase Labs is focused on building a healthier world through innovation in biotech, genomics, and consumer products, with a commitment to executional excellence and smart diversification [6]

Core Insights - ProPhase Labs, Inc. is exploring a potential reverse merger with a digital asset-focused operating company to enhance its business operations and market positioning [1][3] - The Board has approved a strategic treasury initiative to acquire and hold select digital assets, including Bitcoin, aiming to diversify the company's treasury strategy and enhance long-term shareholder value [2][3] - CEO Ted Karkus emphasized the importance of assessing opportunities at the intersection of life sciences and financial innovation, indicating that the merger could create scalable value while preserving existing shareholder value [4] Company Overview - ProPhase Labs is a next-generation biotech, genomics, and consumer products company focused on revolutionizing healthcare through innovative solutions, including Whole Genome Sequencing and diagnostic development [5] - The company is committed to executional excellence, smart diversification, and a synergistic approach to maximize long-term value [5]

Core Viewpoint - ProPhase Labs Inc. has received a 180-day extension from Nasdaq to regain compliance with the minimum bid price requirement of $1.00 per share, following an initial compliance period that expired on June 24, 2025 [1][2][3] Group 1: Compliance Status - The company was notified by Nasdaq on December 26, 2024, that its common shares had been below the $1.00 bid price for 30 consecutive business days, leading to a compliance period of 180 days [2] - As of the current date, ProPhase has not regained compliance and now has until December 22, 2025, to meet the bid price requirement [3] - To regain compliance, the company's Class A ordinary shares must close at or above $1.00 for at least 10 consecutive business days [3] Group 2: Company Operations - The company plans to monitor its share price and is considering options to regain compliance, asserting that the extension does not impact its business operations or reporting obligations [4] - ProPhase Labs is focused on innovative healthcare solutions, including Whole Genome Sequencing and diagnostic tests, aiming to enhance health and wellness [5]

Core Insights - ProPhase Labs Inc. has successfully completed a validation study for its BE-Smart molecular diagnostic test, achieving a technical success rate of over 95% in detecting biomarkers related to esophageal diseases [2][3] - The BE-Smart test is designed to work with both brush and forceps biopsies, positioning it uniquely in the market and targeting a potential market size of approximately $10 billion [4] - The increasing adoption of brush biopsies in clinical practice is driven by their improved diagnostic yield and safety profile, addressing limitations of traditional forceps biopsies [5][6] Company Overview - ProPhase Labs Inc. is a next-generation biotech and genomics company focused on innovative healthcare solutions, including diagnostic tests for early detection of esophageal cancer [8] - The company aims to revolutionize healthcare through bold innovation and actionable insights, with a commitment to executional excellence and smart diversification [9] Industry Context - Esophageal adenocarcinoma (EAC) has seen a dramatic increase in incidence, with a 750% rise since the 1970s and a 5-year mortality rate exceeding 79%, highlighting the urgent need for effective diagnostic tools [3] - The shift towards brush biopsies is gaining traction in both the U.S. and internationally, with expanded payer coverage now reaching over 73 million lives, indicating a growing recognition of their benefits [6][7]

Core Insights - ProPhase Labs Inc. has established a Clinical Science Advisory Board to facilitate the clinical adoption and commercialization of its BE-Smart molecular test for esophageal disease, aiming to set a new standard in early detection and management of esophageal cancer risk [1][10] - The BE-Smart test is positioned to capture a target market of approximately $7 - $14 billion, based on the 7 million endoscopies performed annually in the U.S. for patients at risk of esophageal cancer, with a reimbursement goal of $1,000 - $2,000 per test [3] Company Overview - ProPhase Labs Inc. is a next-generation biotech, genomics, and consumer products company focused on innovative healthcare solutions, including Whole Genome Sequencing and diagnostic developments [11] - The company aims to revolutionize healthcare through actionable insights and is committed to executional excellence and smart diversification [11] Advisory Board Composition - The advisory board includes Dr. Joe Abdo, the inventor of the BE-Smart test, and Mr. James McCullough, founder and CEO of Renalytix, both of whom bring extensive experience in molecular oncology and diagnostic technologies [2][9] - Additional experts will be added to the advisory board to support the initial commercial launch of BE-Smart [2] Product Features and Advantages - BE-Smart offers a unique approach by measuring real-time protein activity, which captures dynamic biological signals of disease progression, requiring only a single 10 µm FFPE biopsy section [3][4] - The test integrates into existing endoscopy and pathology workflows, providing results in under 7 days without added complexity for healthcare providers [3] Clinical Utility - BE-Smart can stratify risk for patients with GERD and Barrett's Esophagus, addressing limitations of current diagnostic tools [4] - The test's design is scalable and cost-efficient, making it an attractive option for clinicians and healthcare systems [4] Competitive Landscape - Other technologies like TissueCypher and EsoGuard have established momentum in esophageal diagnostics, paving the way for broader adoption of molecular tools [5] - BE-Smart builds on this progress by offering a next-generation approach that combines real-time biological precision with streamlined clinical integration [5] Intellectual Property - ProPhase Labs has secured exclusive patents covering proprietary methods for detecting and analyzing eight key proteins critical for esophageal adenocarcinoma progression, providing a competitive advantage in the molecular diagnostics market [6] Clinical Validation - The latest clinical validation manuscript for BE-Smart is under review at the Journal of Clinical Gastroenterology and Hepatology, with a preprint expected soon [7][8]

Financial Performance - For the three months ended March 31, 2025, net revenue was $1.4 million, a decrease of 41.7% from $2.4 million for the same period in 2024[184]. - Gross margin profit for the three months ended March 31, 2025 was $0.5 million, compared to a gross margin loss of $0.1 million for the same period in 2024, resulting in an overall gross margin of 36.8%[186]. - Net loss from continuing operations for the three months ended March 31, 2025 was $4.7 million, or $(0.13) per share, compared to a net loss of $5.5 million, or $(0.32) per share, for the same period in 2024[190]. - Adjusted EBITDA from continuing operations for the three months ended March 31, 2025, was $(1,614,000), an improvement from $(4,286,000) in the prior year[196]. Revenue Generation - The company did not generate any revenues from diagnostic services for the three months ended March 31, 2025 and 2024, respectively[184]. - The company has not provided any diagnostic services since 2024 due to a significant decrease in demand and reimbursement rates[180]. - The company has not generated any diagnostic services revenue from the HRSA funding program for the three months ended March 31, 2025[213]. Expenses and Costs - General and administration expenses decreased by $3.2 million to $4.1 million for the three months ended March 31, 2025, compared to $7.3 million for the same period in 2024[187]. - Research and development costs decreased to $97,000 for the three months ended March 31, 2025, down from $272,000 for the same period in 2024, reflecting reduced activities related to product research[188]. - Interest expense increased to $539,000 for the three months ended March 31, 2025, compared to $441,000 for the same period in 2024, due to a higher balance of outstanding debt[189]. - The company incurred $4,000,000 in cash used in operating activities during the three months ended March 31, 2025[197]. - The Company anticipates that increased costs for retail operations due to inflation will be passed on to customers, while costs related to diagnostic services will be absorbed by the Company[219]. Cash and Capital - As of March 31, 2025, the company's cash and cash equivalents totaled $88,000, a significant decrease from $678,000 at December 31, 2024[197]. - The company anticipates continuing to incur losses and will require additional capital to fund operations, which may be raised through public or private equity or debt financings[202]. - The company sold 1,033,500 shares of common stock in April 2024, generating cash proceeds of $4,600,000 after offering costs[217]. - The Company closed a public offering selling 4,795,000 shares at $0.72 per share, raising gross proceeds of $3.5 million and net cash proceeds of $3.0 million after offering costs[218]. Obligations and Agreements - The company has a royalty obligation of 5.5% on sales of Equivir products following the first commercial sale[203]. - Under the Linebacker License Agreement, the company is required to pay $900,000 upon achieving a first Phase 3 study and an additional $1,000,000 upon receiving regulatory approval for the first product[204]. - The company has a term note agreement with an implicit interest rate of 15% for cash proceeds of $500,000, requiring monthly interest payments[212]. Market Conditions and Risks - Current economic conditions may lead to a decline in business and consumer spending, adversely affecting the Company's financial performance[225]. - The Company does not expect material losses in its investment portfolio or excessive exposure to market risks associated with interest rates[224]. - The Company has not experienced material changes in market risk exposures since December 31, 2024[226]. - There were no material changes in critical accounting estimates or accounting policies from December 31, 2024[221]. Strategic Initiatives - The company continues to actively pursue acquisition opportunities for other companies, technologies, and products within and outside the consumer products industry[182]. - The company acquired exclusive rights to the BE-Smart Esophageal Pre-Cancer Diagnostic Screening Test and related intellectual property assets in January 2023[175].

Financial Data and Key Metrics Changes - The company reported a significant reduction in overhead costs, with a decrease in employee count from 96 to 25, leading to a more streamlined operation [20][21] - Shareholders' equity increased from approximately $7 million to over $15 million following the sale of a manufacturing facility, effectively doubling net assets [18][33] - The company anticipates substantial liquidity events in the second half of the year, potentially bringing in $50 million to $70 million [24][100] Business Line Data and Key Metrics Changes - Prophase Labs is focusing on three main business lines: B Smart esophageal cancer test, Nebula Genomics, and dietary supplements [7][12] - The B Smart esophageal cancer test is projected to have a market potential of $7 billion to $14 billion, with reimbursement expected to be between $1,000 to $2,000 per test [44][37] - DNA Complete is generating approximately $5 million in annual revenues, with potential to reach $10 million with increased marketing efforts [93] Market Data and Key Metrics Changes - The company is exploring strategic alternatives for Nebula Genomics, which has a significant genomic database of 16 petabytes, positioning it as a valuable asset in the market [56][58] - The esophageal cancer test is expected to be commercialized later this year, targeting a market of approximately 7 million endoscopies annually in the U.S. [38][80] Company Strategy and Development Direction - The company is focused on restructuring and cleaning up its balance sheet, with plans to avoid diversifying into new businesses and instead concentrate on existing operations [104] - Management is prioritizing debt financing over equity issuance to minimize shareholder dilution, aiming for a strong cash position once liquidity events occur [23][100] - The company is not pursuing vaccine development but is concentrating on its existing product lines and potential acquisitions [87][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming liquidity events and the potential for significant cash inflow, which is expected to improve the company's financial standing [100][102] - The CEO emphasized the importance of maintaining a lean operation and avoiding excessive spending on sales force development, opting for partnerships with existing sales networks instead [84][82] - Management is optimistic about the company's future, citing a strong alignment with shareholder interests and a commitment to improving operational efficiency [29][21] Other Important Information - The company is currently under NASDAQ compliance scrutiny but is confident in receiving a six-month extension based on meeting all other qualifications [30][91] - The CEO has deferred a significant portion of his salary until liquidity events occur, demonstrating commitment to the company's recovery [26] Q&A Session Summary Question: What is the realistic timeline for B Smart commercialization? - The CEO anticipates the first patient testing on a commercial basis later this year, but full commercialization will be a multi-year process [80] Question: What vaccines or illnesses are being worked on? - The company is not working on any vaccines and is focusing on the Acrovir product and dietary supplements [87] Question: What steps are being taken to meet NASDAQ compliance? - The CEO confirmed that an extension has been filed and expressed confidence in receiving it due to meeting all other criteria [90] Question: Has the DNA Complete division started generating revenues? - Yes, DNA Complete is generating around $5 million annually, with potential for growth through increased marketing [93] Question: Are we still looking at June/July for COVID testing payments? - The CEO indicated that payments could start coming in as early as June, depending on the progress with Crown Medical [96]

Financial Data and Key Metrics Changes - The company reported a significant increase in shareholders' equity, which roughly doubled from approximately $7 million to over $15 million following the sale of a manufacturing facility [16][34][92] - The company is currently operating at breakeven for its Nebula Genomics division, which is expected to generate substantial cash flow in the future [60][89] Business Line Data and Key Metrics Changes - The b smart esophageal cancer test is anticipated to have a market potential of $7 to $14 billion, with the company expecting to receive reimbursement of $1,000 to $2,000 per test [46][47] - DNA Complete is generating around $5 million in annual revenues, with potential to reach $10 million with increased marketing efforts [93] Market Data and Key Metrics Changes - The company is exploring strategic alternatives for Nebula Genomics and DNA Complete, aiming to clean up its capital structure and reduce pressure on the stock price [54] - The company has a large genomic dataset of 16 petabytes, which is one of the largest in the world, enhancing its market position [58] Company Strategy and Development Direction - The company plans to focus on debt financing rather than issuing shares, aiming to maintain shareholder value while preparing for upcoming liquidity events [22][102] - The management is committed to a methodical approach to commercialization of the b smart esophageal cancer test, leveraging existing sales networks rather than building a new sales force [84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in collecting approximately $20 million in uncollected accounts receivable, with expectations that actual collections could exceed this amount [106] - The company anticipates significant cash inflows in the second half of the year, driven by collections and the potential sale of Nebula Genomics [99][104] Other Important Information - The company has deferred a significant portion of executive compensation until liquidity events occur, demonstrating alignment with shareholder interests [25] - The company is actively working on legal matters with Crown Medical to recover underpaid reimbursements from insurance companies, which could lead to additional cash inflows [70][73] Q&A Session Summary Question: What is a realistic timeline for the commercialization of BSmart? - The first patient testing is expected to occur later this year, but commercialization will likely be a multiyear process [81] Question: What vaccines or illnesses are being worked on? - The company is not currently working on any vaccines and is focusing on the b smart esophageal cancer test and dietary supplements [88] Question: What steps are being taken to meet Nasdaq compliance? - The company has filed for an extension and is confident it will receive it, as it meets all other qualifications [90][91] Question: Has the DNA Complete division started generating revenues? - DNA Complete is generating around $5 million annually, with potential for growth through increased marketing [93] Question: Are we still looking at June/July for COVID testing payments? - The company is optimistic about receiving payments in June, with significant capital expected to flow in the second half of the year [96][99] Question: Have you accessed the line of credit from the global private equity group? - A small amount of capital has been taken in, and the company is exploring additional debt financing options [102] Question: What milestone items should shareholders be aware of for the balance of 2025? - Key milestones include the development of the esophageal cancer test and the rollout of Equivira, with a focus on maintaining cash reserves [104]