Prophase Labs (NasdaqCM:PRPH) Q3 2025 Earnings Call November 19, 2025 02:00 PM ET Company ParticipantsNoella Alexander-Young - Media Relations Coordinator and Virtual Event ModeratorTed Karkus - Chairman and CEONoella Alexander-YoungHello and good afternoon, everyone. Welcome to today's presentation. My name is Noella Alexander Young, Virtual Event Moderator here at Renmark Financial Communications. On behalf of our team, we want to thank everyone for joining us today for ProPhase Labs' third quarter 2025 r ...

Financial Data and Key Metrics Changes - The company has a market cap of approximately $12 million, with stock trading around $0.25 to $0.30 per share, reflecting a significant decline from previous levels [32][56]. - The company is estimating to collect at least $50 million net from Crown Medical's initiatives, which is expected to significantly improve the financial structure [17][18]. Business Line Data and Key Metrics Changes - Crown Medical Collections has been appointed as special counsel to pursue approximately $150 million in uncollected COVID testing claims, with expectations of settlements starting soon [10][15]. - The B-Smart esophageal cancer test is positioned as a potentially multi-billion dollar market opportunity, with a target market estimated between $7 billion and $14 billion [21][22]. Market Data and Key Metrics Changes - The company is experiencing a disconnect between its market cap and the underlying asset value, particularly with the anticipated cash inflow from Crown Medical [7][17]. - The company has not utilized its ATM (at-the-market) facility yet, indicating a cautious approach to financing amid current market conditions [18]. Company Strategy and Development Direction - The company is focusing on strategic initiatives that could recognize significant underlying value, including a potential reverse stock split and a crypto treasury strategy [5][37]. - The management is committed to maintaining NASDAQ compliance to facilitate potential strategic deals and enhance shareholder value [37][52]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current challenges but expresses optimism about upcoming cash flows from Crown Medical, which could transform the company's financial position [28][59]. - The management emphasizes the importance of shareholder voting to support strategic initiatives and maintain compliance with NASDAQ [38][52]. Other Important Information - The company has undergone significant restructuring, including the sale of its Farm Labs manufacturing facility and the shutdown of its Nebula Genomics laboratory, to streamline operations and reduce overhead [27]. - Management has deferred salaries to support the company financially, indicating a commitment to the company's success [31]. Q&A Session Summary Question: Clarification on potential major deals - Management is exploring multiple strategic deals, including a reverse crypto strategy and other initiatives that could enhance shareholder value [40]. Question: Impact of reverse stock split on stock price - Management believes that a reverse stock split could potentially lead to an increase in stock price, especially if the company maintains its underlying asset value [42][44]. Question: Plans for employee compensation amid cash constraints - Management reassures that there are multiple funding options available, including debt, to support operations and employee compensation [46]. Question: Strategy for B-Smart esophageal cancer test funding - Management intends to leverage cash flow from Crown Medical to fund the B-Smart initiative, with potential for joint ventures to enhance value [60][62]. Question: Addressing ongoing stock price decline - Management attributes the stock price decline to market conditions and short selling, expressing confidence that cash flow from Crown Medical will drive stock price recovery [58].