Event Attendee's questions to Prophase Labs Inc (PRPH) leadership • Q1 2025
Question
An event attendee asked about several key topics, including the commercialization timeline for the BE-Smart esophageal cancer test, the status of the NASDAQ listing, revenue from the Nebula Genomics unit, the timing of COVID-19 receivable collections via Crown Medical, and the company's strategy to regain compliance with NASDAQ's minimum bid price.
Answer
Chairman and CEO Ted Karkus explained that ProPhase Labs anticipates the first commercial use of the BE-Smart test later in 2025, utilizing a partnership-focused rollout to manage costs. He expressed high confidence in receiving a 6-month NASDAQ listing extension, citing that the company's shareholder equity now exceeds requirements. Karkus stated that the Nebula Genomics and DNA Complete businesses generate about $5 million in annual revenue and are being positioned for a sale, which is a key potential liquidity event. He indicated that the first collections from Crown Medical for unpaid COVID-19 testing could arrive within a few months, with significant capital expected in the second half of the year. Karkus confirmed the company is using short-term debt to bridge to these events and is not currently planning a reverse stock split, believing the company's valuation will recover as these events materialize.