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ProPhase Labs(PRPH) - 2024 Q4 - Annual Results
PRPHProPhase Labs(PRPH)2025-03-31 12:00

Financial Performance - For the year ended December 31, 2024, net revenue decreased by 28.2million,or80.628.2 million, or 80.6%, to 6.8 million compared to 35.0millionfortheyearendedDecember31,2023,primarilyduetoa35.0 million for the year ended December 31, 2023, primarily due to a 24.8 million decrease in diagnostic services[16] - The company reported a gross loss of 0.2millionfortheyearendedDecember31,2024,comparedtoagrossprofitof0.2 million for the year ended December 31, 2024, compared to a gross profit of 15.6 million for the year ended December 31, 2023, resulting in an overall gross margin of (2.2)%[18] - The company reported a net loss of 53,364millionfor2024,comparedtoanetlossof53,364 million for 2024, compared to a net loss of 16,782 million in 2023, indicating a significant increase in losses[34] - Adjusted EBITDA from continuing operations was (17,897)millionin2024,worseningfrom(17,897) million in 2024, worsening from (11,416) million in 2023[40] - The company reported a significant credit loss expense of 11,018millionin2024,comparedtoonly11,018 million in 2024, compared to only 91 million in 2023[34] Cash and Assets - The company’s cash and cash equivalents as of December 31, 2024, were 0.7million,downfrom0.7 million, down from 1.6 million at December 31, 2023, with working capital decreasing to (1.5)million[23]−Cashandcashequivalentsdecreasedfrom(1.5) million[23] - Cash and cash equivalents decreased from 1,609 million at the end of 2023 to 678millionattheendof2024,adropofapproximately58678 million at the end of 2024, a drop of approximately 58%[34] - Total assets decreased from 91,927 million in 2023 to 63,200millionin2024,adeclineofapproximately3163,200 million in 2024, a decline of approximately 31%[29] - Current assets fell from 47,585 million in 2023 to 30,637millionin2024,representingadecreaseofabout3630,637 million in 2024, representing a decrease of about 36%[29] - Accounts receivable decreased from 35,814 million in 2023 to 20,058millionin2024,adeclineofapproximately4420,058 million in 2024, a decline of approximately 44%[29] - Inventory decreased from 2,291 million in 2023 to 1,143millionin2024,areductionofabout501,143 million in 2024, a reduction of about 50%[29] Expenses - General and administration expenses increased by 4.4 million to 37.9millionfortheyearendedDecember31,2024,comparedto37.9 million for the year ended December 31, 2024, compared to 33.4 million for the year ended December 31, 2023[20] - Research and development costs decreased to 0.6millionfortheyearendedDecember31,2024,downfrom0.6 million for the year ended December 31, 2024, down from 1.4 million in 2023[21] Strategic Initiatives - ProPhase sold its manufacturing division for approximately 23millioninJanuary2025,enhancingfinancialflexibilityandsignificantlyreducingdebt[5]−ThecompanyisexploringapotentialsaleofitssubsidiaryNebulaGenomicswhileevaluatingstrategicoptions[12]−ProPhasehasenteredintoanewrevenueinitiativewithCrownMedicalCollections,estimatingtherecoveryofapproximately23 million in January 2025, enhancing financial flexibility and significantly reducing debt[5] - The company is exploring a potential sale of its subsidiary Nebula Genomics while evaluating strategic options[12] - ProPhase has entered into a new revenue initiative with Crown Medical Collections, estimating the recovery of approximately 50 million in insurance payments[14] - The company aims to launch an integrated telehealth initiative to leverage partnerships across its health and genomic services[15] Market Potential - The BE-Smart diagnostic platform is expected to target a market of approximately 7 million endoscopies annually in the U.S., equating to a potential annual market size of 7−7 - 14 billion[10] Liabilities - Total liabilities increased from 42,544millionin2023to42,544 million in 2023 to 55,847 million in 2024, an increase of about 31%[31]