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Warren Hirsch

Director at ProPhase Labs
Board

About Warren Hirsch

Independent director since 2019, Warren Hirsch is a CPA with 35+ years in accounting, owner-operator of Hirsch and Hirsch CPA PLLC, and the Board-designated Audit Committee financial expert. He holds a B.S. in Accounting from Hofstra University (1980), is age 66 as of the May 15, 2024 proxy, and has served on PRPH’s Board since 2019 with core credentials in financial reporting, internal controls, and audit oversight .

Past Roles

OrganizationRoleTenureCommittees/Impact
Hirsch and Hirsch CPA PLLCOwner and operatorFull-service accounting, tax, and small-business consulting practice
Royal Alliance (national financial advisory firm)Registered Representative2000–May 2019Capital markets/financial advisory experience

External Roles

CategoryDetails
Current public company boardsNone disclosed in PRPH’s proxy materials
Prior public company boardsNone disclosed in PRPH’s proxy materials
Private/non-profit/academic boardsNone disclosed in PRPH’s proxy materials

Board Governance

  • Committee assignments: Audit (Chair), Compensation (Member), Nominating & Corporate Governance (Member) .
  • Independence: Board has affirmatively determined Mr. Hirsch is independent under Nasdaq standards; he is also designated an “audit committee financial expert” by the Board .
  • Attendance and engagement:
    • Board met 9 times in FY2023; each director attended >75% of Board and committee meetings on which they served .
    • Independent directors held 5 executive sessions in 2023 .
    • The Board combines CEO and Chairman roles and has not named a Lead Independent Director .
Governance Metric2023Notes
Board meetings (number)9
Director attendance>75% for each director at Board/committee meetings
Independent executive sessions5
Lead Independent DirectorNone CEO also serves as Chair

Fixed Compensation

ComponentAmountPeriod/Terms
Cash retainer$35,000 (fees earned or paid in cash) For the 2023 director compensation reported year
Standard director cash program$35,000 annual cash service retainer (paid quarterly) For the period July 1, 2023–June 30, 2024
  • No committee chair/membership cash fees or meeting fees are disclosed; the program specifies an annual retainer plus equity .

Performance Compensation

Equity Award Feature2022 Director Period2023 Director Period
Option grant size40,000 options 40,000 options
Exercise price$12.92 (closing price on grant date) $7.31 (closing price on grant date)
Vesting10,000 quarterly over one year (4 tranches) 10,000 quarterly over one year (4 tranches)
2023 reported grant (valuation)$188,000 grant date fair value; 40,000 options granted June 16, 2023 for the 2022 Director Period Program entitlement noted; grant timing not separately detailed in the proxy
  • 2023 Director Compensation (Hirsch): Option Awards $188,000; Total $223,000 (Cash $35,000 + Options $188,000) .
  • Options are the primary “at-risk” component, aligning value with stock performance via strike price and vesting cadence .

Other Directorships & Interlocks

ItemFinding
Interlocks with competitors/suppliers/customersNone disclosed
Compensation Committee interlocksNot indicated; Compensation Committee members are independent directors
Use of compensation consultantsCompensation Committee has authority to engage consultants (no specific advisor disclosed)

Expertise & Qualifications

  • CPA with extensive experience in accounting and financial reporting; Board-designated audit committee financial expert .
  • Financial literacy and oversight of internal controls; evaluation of financial results and business processes .
  • Education: B.S. in Accounting, Hofstra University (1980) .

Equity Ownership

As-of DateTotal Beneficial Ownership (shares)% of ClassNotes
May 13, 2024180,000 <1% Includes options exercisable or vesting within 60 days
April 29, 2025232,500 <1% (based on 41,879,017 shares) Includes options exercisable or vesting within 60 days
  • Insider trading policy prohibits short-term trading by directors (minimum 6-month holding), purchases on margin, short sales, and trading in puts/calls other than company-granted options .
  • No pledging or hedging by directors is disclosed; no related-party ownership encumbrances disclosed for Mr. Hirsch .

Governance Assessment

  • Strengths

    • Independent director; Audit Chair with “audit committee financial expert” designation—supports strong financial oversight .
    • Attendance above expectations; active committee participation across Audit, Compensation, and Nominating & Governance .
    • Compensation mix includes equity options vesting quarterly, aligning director incentives with shareholder value .
  • Alignment and Ownership

    • Beneficial ownership grew from 180,000 (as of May 13, 2024) to 232,500 (as of April 29, 2025); still under 1% of shares outstanding, primarily via options exercisable within 60 days .
  • Potential Concerns/RED FLAGS

    • Combined CEO/Chair with no Lead Independent Director reduces independent counterbalance at Board level .
    • Capital structure and governance proposals: Special meeting sought authorization for a reverse/forward stock split (1-for-2 to 1-for-10), tokenized issuances up to 4.99% of equity, “Digital Treasury Shares,” and digital-asset charter amendments—introducing complexity, regulatory risk, and potential dilution overhang .
    • Nasdaq minimum bid price non-compliance and reliance on split authorization; risk of delisting outlined by the company .
    • Convertible financing and share reservation covenants (July 2025 senior secured note and warrants) could be dilutive; note has a variable conversion feature and floor-price mechanics that terminate upon delisting, heightening capital structure risk .
  • Related-Party Exposure

    • No related-party transactions involving Mr. Hirsch disclosed; the only related-party disclosure pertains to the CEO’s son employed at a subsidiary, approved by the Audit and Compensation Committees .
  • Attendance and Engagement Signals

    • Board and committees met frequently (9 Board meetings; each director >75% attendance; 5 independent executive sessions), indicating active oversight cadence .

Overall, Hirsch brings strong audit oversight and financial expertise as Audit Chair and independent director; however, Board-level structural and capital-markets risks (split/digital-asset initiatives, Nasdaq compliance, and convertible financing) warrant close monitoring for governance effectiveness and investor confidence .