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A miniature **Abbott Laboratories** focused on over-the-counter health products and diagnostic testing.

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• COVID-19 Diagnostic Testing: Provides PCR and rapid antigen testing for the detection of the SARS-CoV-2 virus.
• Clinical Diagnostic Testing (General): Offers a range of clinical laboratory services, including toxicology, pharmacogenomics, and respiratory pathogen testing.
• Dietary Supplements: Develops, manufactures, and markets a variety of dietary supplements targeting general health, immune support, and specific wellness needs.
• Cannabis and Hemp Testing: Provides analytical testing services for cannabis and hemp products, ensuring safety, potency, and compliance.

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ProPhase Labs (PRPH) operates a diversified business model, serving both business clients (B2B) and individual consumers (B2C) across its two primary segments: Diagnostic Services and Consumer Brands.

According to its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, ProPhase Labs derives a significant portion of its consolidated net revenues from a limited number of customers. Specifically, approximately 54.3% and 15.6% of its consolidated net revenues were attributable to its two largest customers, respectively, for the fiscal year 2023. These major customers are typically large organizations or companies. However, ProPhase Labs does not publicly disclose the specific names of these major customers in its SEC filings or other investor communications. Therefore, we cannot list the specific names of its major B2B customers.

Based on the nature of its business segments, ProPhase Labs serves the following categories of customers:

Major Categories of Business Customers (B2B)

While specific names are not disclosed, the major B2B customers for ProPhase Labs likely fall into these categories:

• Governmental Agencies and Public Health Organizations: These entities contract for large-scale diagnostic testing services, such as for public health initiatives, schools, or correctional facilities.
• Educational Institutions and Employers: Universities, school districts, and corporate clients that utilize ProPhase Labs for employee or student health and diagnostic testing programs.
• Retailers and Distributors: For its Consumer Brands segment (e.g., TK Supplements, Legendz XL), ProPhase Labs sells to large retail chains (pharmacies, mass merchandisers, grocery stores) and potentially major e-commerce platforms or distributors that then sell to consumers.
• Healthcare Providers: Clinics, hospitals, and other laboratories that may utilize ProPhase Labs for specialized diagnostic testing services.

Categories of Individual Customers (B2C)

ProPhase Labs also directly serves individuals, particularly through its consumer health brands and direct-to-consumer diagnostic testing services. The categories of individuals it serves include:

• Health-Conscious Consumers: Individuals seeking dietary supplements and over-the-counter health products for general wellness, fitness, or specific health concerns, often purchased via e-commerce or retail.
• Individuals Requiring Diagnostic Testing: People seeking diagnostic tests for respiratory pathogens (e.g., flu, RSV), STIs, UTIs, or other health screenings, often accessed directly through ProPhase Labs' diagnostic centers or partnerships.

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Ted Karkus, CEO and Chairman

Ted Karkus drives ProPhase Labs' diverse businesses with a successful track record in biomedical and health companies. He transformed ID Biomedical's strategy and valuation from $25 million to a $1.4 billion sale to GlaxoSmithKline. As CEO of ProPhase Labs, he restructured the go-to-market strategy for the Cold-EEZE product, significantly grew revenues, and ultimately sold it for $50 million to Mylan in 2017. His career began on Wall Street in investment banking, leading to financial consulting, and he also founded and was President of Forrester Financial. He initiated a proxy contest in 2009 to gain control of ProPhase Labs, becoming its CEO.

Steven Plumb, Chief Financial Officer

Steven M. Plumb is a seasoned senior executive and financial manager with experience in operations, finance, and marketing, including Big 4 CPA experience. He has served as the chief financial officer of numerous public companies as a fractional CFO. His background encompasses IT, gaming, biotech, oil and gas, real estate, medical, and utility companies. From April 2024 to August 2025, Mr. Plumb served as the CFO of Driveitaway Holdings, Inc., and from September 2023 to November 2024, as CFO of A Game Beverages, Inc.

Jason Karkus, President, Nebula Genomics and Executive Vice President / Co-Chief Operating Officer, ProPhase Diagnostics

Jason Karkus drove explosive revenue growth at ProPhase Diagnostics, leading sales, business development, logistics operations, and account management. He oversaw the development of two CLIA-certified labs, generating approximately $200 million in revenues since 2021. He now leads business development for the rapid build-out of ProPhase's Nebula Genomics business, with a background in sales and development at top real estate firms.

Lance Bisesar, Corporate Controller

Lance Bisesar is an accomplished finance leader with over 17 years of experience in all areas of finance and accounting, working with large public and private brands across various industries. Before joining ProPhase Labs, he held finance leadership roles at companies such as Colgate-Palmolive, Casper Sleep, Newmark, and Forest Laboratories, where he was responsible for financial reporting, general accounting, and internal controls. He started his career in public accounting with Marcum LLP.

Sam A. Beeler, Chief Strategy Officer, ProPhase Precision Medicine

Sam A. Beeler is an accomplished healthcare executive. His background is well-suited to expand Nebula Genomics' presence into larger opportunities in personalized medicine, pharmacogenomics, and population health. He plays a pivotal role in developing strategies to secure lower pricing for Whole Genome Sequencing (WGS) and pursues strategic initiatives with companies in his extensive network, including a strong relationship with G42, a genomics and artificial intelligence company.

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The key risks to ProPhase Labs (PRPH) are:

1. Financial Distress and Liquidity Concerns: ProPhase Labs faces significant financial challenges, characterized by negative revenue growth, widening net losses, and a substantial working capital deficit. As of September 30, 2025, the company had only $405,000 in cash and cash equivalents, with a working capital deficit of $47.5 million. Profitability metrics are concerning, with operating and net margins deeply in the negative. The company's Altman Z-Score, a measure of bankruptcy risk, is in the distress zone, indicating a high probability of bankruptcy.
2. NASDAQ Delisting Risk: ProPhase Labs is at risk of being delisted from NASDAQ. Shareholders were required to approve proxy measures by November 23, 2025, to maintain compliance with NASDAQ listing standards. The company has also disclosed non-compliance with NASDAQ's audit committee requirements and is actively seeking a new director to regain compliance. Delisting would severely limit the company's access to capital and strategic flexibility.
3. High-Risk Business Transition and Dependence on New Ventures: The company is undergoing a significant strategic pivot, with its diagnostic services revenue (previously driven by COVID-19 testing) having dropped to zero. ProPhase Labs' future success is highly dependent on the successful commercialization of new initiatives, particularly the BE-Smart™ Esophageal Pre-Cancer Diagnostic Screening Test and the scaling of its Nebula Genomics subsidiary. This transition is inherently high-risk, as the diagnostics industry is intensely competitive and subject to a shifting regulatory landscape, including potential FDA regulations on Laboratory Developed Tests (LDTs). The company has also filed for Chapter 11 bankruptcy for its COVID-19 testing labs to recover substantial debts, further highlighting the challenges of this transition.

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The rapid proliferation and increasing market share of direct-to-consumer (DTC) digital-first supplement and wellness brands. These brands leverage social media, influencer marketing, personalized offerings, and subscription models to bypass traditional retail channels, directly engage consumers, and build strong brand loyalty. This model poses a significant threat to established consumer health brands like Cold-EEZE, which historically rely on conventional retail distribution and traditional marketing, by eroding market share and challenging their existing distribution and marketing strategies.

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ProPhase Labs (PRPH) operates in two main segments: Diagnostic Services and Consumer Products. The company's primary focus for future growth lies in its BE-Smart Esophageal Pre-Cancer diagnostic test and genomics testing technologies, alongside its established dietary supplements business.

• BE-Smart Esophageal Pre-Cancer Diagnostic Test: The addressable market for ProPhase Labs' BE-Smart esophageal cancer test is estimated to be between $7 billion and $14 billion annually in the U.S. This market is based on approximately 7 million upper endoscopies performed each year in the U.S. on patients at higher risk for esophageal conditions such as GERD and Barrett's Esophagus. The company is targeting a price of $1,000 per test.
• Genomics Testing Technologies (Whole Genome Sequencing/Nebula Genomics): ProPhase Labs is involved in whole genome sequencing solutions and personalized health through its Nebula Genomics subsidiary. While specific market sizing for ProPhase's particular genomics offerings is not explicitly stated in the provided search results, the company appears in comprehensive short-read sequencing market analyses alongside major players, indicating its participation in the broader genomics and personalized health markets.
• Dietary Supplements (TK Supplements): ProPhase Labs provides a range of dietary supplements under the TK Supplements brand, including Legendz XL (male sexual enhancement) and Triple Edge XL (energy and stamina booster). The company sells these products in the United States through various retailers. While a specific market size for "male sexual enhancement" or "energy and stamina booster" dietary supplements directly linked to ProPhase Labs is not available in the provided context, the company operates within the broader U.S. consumer healthcare and dietary supplement market.

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ProPhase Labs (NASDAQ: PRPH) is anticipated to drive future revenue growth over the next two to three years through several key initiatives:

1. Commercialization of the BE-Smart™ Esophageal Cancer Test: The company views this diagnostic as having multi-billion-dollar potential and a significant game-changer in early cancer detection. ProPhase Labs has secured a key patent for its BE-Smart™ Esophageal Adenocarcinoma Risk Assessment test and is actively accelerating its commercialization pathway, aiming for market entry by late 2025.
2. Growth in DNA Complete and DNA Expand Personal Genomics Products: ProPhase Labs aggressively launched its DNA Complete and DNA Expand products during the Q4 2024 holiday season, a crucial period for sales. The company emphasizes a subscription model for these products, which is expected to generate significant recurring cash flow from renewals in subsequent years.
3. Launch of Equivir: ProPhase Labs plans to roll out Equivir, a broad-based antiviral and immune support product, in the near future (as of the November 2024 earnings call). Management believes this product holds potential revenue generation multiples greater than that of the company's past Cold-EEZE product.
4. Strategic Partnerships and Cross-selling of Health and Genomic Services: The company is actively engaged in discussions with several early-stage companies to form partnerships. These collaborations are intended to leverage synergies and facilitate the cross-selling of ProPhase Labs' comprehensive suite of health and genomic services.

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Share Repurchases

• ProPhase Labs announced a $6 million stock repurchase program in July 2022.
• A new $6 million stock repurchase program was authorized in March 2023, following the expiration of a previous one, under which 1.2 million shares were retired in the prior six months.
• In September 2025, shareholders approved a proposal for a $15 million share repurchase program.

Share Issuance

• In January 2021, ProPhase Labs raised $5.5 million, followed by an additional $37.5 million through offerings.
• A public offering of 4,795,500 shares of common stock at $0.72 per share closed in November 2024, generating gross proceeds of approximately $3.45 million, intended for working capital, general corporate purposes, capital expenditures, product development, and acquisitions.
• Stockholders approved increasing the authorized shares from 50 million to 1 billion in September 2025, primarily to provide flexibility for the company's crypto treasury strategy and to attract major crypto industry partners.

Inbound Investments

• In December 2024, ProPhase Labs secured flexible, low-interest rate debt financing from a global private equity fund, aiming to eliminate the need for future equity financing in the near term.
• The company secured a $3 million investment in July 2025 through a private placement of senior secured convertible notes and warrants with two investors.
• ProPhase Labs entered into a Strategic Advisory and Private Placement Agreement in September 2025 for a planned private placement of approximately $6 million in company securities.

Outbound Investments

• ProPhase Labs acquired Nebula Genomics, a whole genome sequencing company, for approximately $14.6 million in a combination of common stock and cash in August 2021.
• In January 2023, the company acquired worldwide exclusive rights to the BE-Smart Esophageal Pre-Cancer diagnostic screening test and related intellectual property for approximately $4.6 million, paid with $3.6 million in cash and $1 million in common stock.

Capital Expenditures

• In January 2025, ProPhase Labs sold Pharmaloz Manufacturing, Inc., which included the buyer assuming approximately $3 million in planned near-term capital expenditures.
• The company built a state-of-the-art CLIA laboratory in Garden City, New York, as part of its investments since January 2021.
• ProPhase Labs was investing in Pharmaloz's forthcoming high-tech production line #2, intended to be one of North America's most advanced lozenge production lines with enhanced automation and efficiency.