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 reported a market cap of approximately $12 million, with stock trading around $0.25 to $0.30 per share [30][53] - The company anticipates collecting at least $50 million net from Crown Medical's initiatives, which could significantly impact its financial structure [15][46] Business Line Data and Key Metrics Changes - Crown Medical Collections is actively pursuing approximately $150 million in uncollected COVID testing reimbursements from insurance companies, with a focus on underpaid claims [9][10] - The B-Smart esophageal cancer test is positioned as a highly valuable diagnostic tool, with a potential market size of $7 billion to $14 billion if reimbursement rates are between $1,000 and $2,000 per test [20][21] - Nebula Genomics has transitioned to a direct-to-consumer model, with a high profit margin on subscription renewals, indicating a shift towards profitability [24][25] Market Data and Key Metrics Changes - The company is experiencing pressure from short sellers, which is affecting stock performance, but management believes that cash flow from Crown Medical will change this dynamic [27][54] - The overall market for crypto treasury stocks is currently unfavorable, but management sees potential for long-term growth in this area [6][37] Company Strategy and Development Direction - The company is focused on strategic initiatives that recognize underlying value, including potential partnerships and M&A opportunities [4][35] - Management emphasizes the importance of NASDAQ compliance and shareholder voting to support strategic initiatives [35][50] - The company aims to maintain a lean operational structure while focusing on core businesses, particularly Crown Medical and the B-Smart test [26][59] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in the past year but expresses optimism about upcoming cash flow from Crown Medical and the potential for significant growth [27][55] - The company is exploring various funding options to support operations until cash flow stabilizes [43][44] 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 [26] - Management has deferred salaries to support the company financially, indicating a commitment to the company's success [29][30] 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 [37] Question: Impact of reverse stock split on stock price - Management believes that a reverse stock split could lead to an increase in stock price, especially if the company maintains its NASDAQ compliance [39][41] Question: Plans for employee compensation with limited cash - Management reassured that they have multiple funding options available and are confident in the company's underlying asset value [43][44] Question: Timeline for Crown Medical collections - Management expects to see significant cash flow from Crown Medical in the coming months, which will positively impact the company's financial situation [55] Question: Strategy for B-Smart development - Management plans to adopt a grassroots approach for the B-Smart test, seeking partnerships and leveraging existing relationships to minimize costs [56][59]

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].