ProPhase Labs, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>ProPhase Labs, Inc. has filed its annual 10-K report for the fiscal year ended December 31, 2023, detailing its financial performance and business operations.</b>

AI Summary

ProPhase Labs, Inc. (PRPH) filed a Annual Report (10-K) with the SEC on March 29, 2024. ProPhase Labs, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company's principal business address is 711 Stewart Ave, Suite 200, Garden City, New York. ProPhase Labs, Inc. was formerly known as QUIGLEY CORP, with a name change on March 28, 1993. The filing includes financial data for the fiscal years 2023, 2022, and 2021. The company is classified under Pharmaceutical Preparations (SIC code 2834).

Why It Matters

For investors and stakeholders tracking ProPhase Labs, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of ProPhase Labs' financial health and strategic direction for investors and stakeholders. Understanding the company's historical financial data and business segments is crucial for assessing its future growth potential and market position.

Risk Assessment

Risk Level: low — ProPhase Labs, Inc. shows low risk based on this filing. The filing is a standard 10-K annual report, which typically contains routine financial and operational information without immediate red flags.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to assess ProPhase Labs' financial performance and identify potential investment risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-29 — Filing Date (Date of submission)
• 2834 — SIC Code (Pharmaceutical Preparations)

Key Players & Entities

• ProPhase Labs, Inc. (company) — Filer name
• QUIGLEY CORP (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-29 (date) — Filing date
• 2834 (industry_code) — Standard Industrial Classification
• 711 Stewart Ave, Suite 200, Garden City, New York (address) — Business address

FAQ

Industry Context

ProPhase Labs operates within the Pharmaceutical Preparations industry, focusing on the development and commercialization of pharmaceutical products.

Regulatory Implications

The filing adheres to SEC regulations for annual reports (Form 10-K) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements (income statement, balance sheet, cash flow) for the fiscal years 2023, 2022, and 2021.
2. Review the 'Risk Factors' section to understand potential challenges and uncertainties facing the company.
3. Examine any disclosures related to business segments, products, or strategic initiatives.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-29: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing; comparison to prior filings will require additional data.

Key Financial Figures

• $0.0005 — ange on which registered Common Stock, $0.0005 par value per share PRPH Nasdaq Capital
• $300 — cost of sequencing a human genome below $300 and became one of the largest direct-to

Filing Documents

• prph-20231231.htm (10-K) — 1695KB
• prophase-bylaws2024.htm (EX-3.2) — 136KB
• literacompareredline-pro.htm (EX-3.2 1) — 86KB
• prophase-director2022plano.htm (EX-10.3) — 41KB
• prophase-formof2022planinc.htm (EX-10.4) — 44KB
• prophase-formof2022plannqo.htm (EX-10.5) — 43KB
• prophase-exhibit191.htm (EX-19.1) — 269KB
• prophase-exhibit211.htm (EX-21.1) — 1KB
• prph-exhibit231consent.htm (EX-23.1) — 2KB
• prophase-exhibit3111.htm (EX-31.1) — 15KB
• prophase-exhibit3121.htm (EX-31.2) — 15KB
• prophase-exhibit3211.htm (EX-32.1) — 6KB
• prophase-exhibit3221.htm (EX-32.2) — 6KB
• prophase-exhibit971.htm (EX-97.1) — 30KB
• image.jpg (GRAPHIC) — 28KB
• image_0.jpg (GRAPHIC) — 6KB
• image_3.jpg (GRAPHIC) — 0KB
• literacompareredline-pro001.jpg (GRAPHIC) — 1024KB
• literacompareredline-pro002.jpg (GRAPHIC) — 1160KB
• literacompareredline-pro003.jpg (GRAPHIC) — 1205KB
• literacompareredline-pro004.jpg (GRAPHIC) — 1062KB
• literacompareredline-pro005.jpg (GRAPHIC) — 1155KB
• literacompareredline-pro006.jpg (GRAPHIC) — 350KB
• 0000868278-24-000004.txt (&nbsp;) — 18348KB
• prph-20231231.xsd (EX-101.SCH) — 67KB
• prph-20231231_cal.xml (EX-101.CAL) — 125KB
• prph-20231231_def.xml (EX-101.DEF) — 323KB
• prph-20231231_lab.xml (EX-101.LAB) — 802KB
• prph-20231231_pre.xml (EX-101.PRE) — 559KB
• prph-20231231_htm.xml (XML) — 1216KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 21 Item 1B. Unresolved Staff Comments 50

C

Item 1 C . Cybersecurity 50 Item 2.

Properties

Properties 51 Item 3.

Legal Proceedings

Legal Proceedings 51 Item 4. Mine Safety Disclosures 51 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52 Item 6. [Reserved] 52 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 52 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 62 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 98 Item 9A.

Controls and Procedures

Controls and Procedures 98 Item 9B. Other Information 100 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 100 PART III Item 10. Directors, Executive Officers and Corporate Governance 101 Item 11.

Executive Compensation

Executive Compensation 101 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 101 Item 13. Certain Relationships and Related Transactions, and Director Independence 101 Item 14. Principal Accountant Fees and Services 101 PART IV Item 15. Exhibits and Financial Statement Schedules 102 Item 16. Form 10-K Summary 104

Signatures

Signatures 105 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Annual Report") contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical facts, included in this Annual Report, including statements related to future events and our future financial performance are forward-looking statements. Forward-looking statements typically are identified by use of terms such as "anticipate", "believe", "plan", "expect", "intend", "may", "will", "should", "estimate", "predict", "potential", "continue" and similar words although some forward-looking statements are expressed differently. Forward-looking statements include, but are not limited to, statements concerning: our anticipated expenses, ability to obtain funding for our operations and the sufficiency of our cash resources; our strategic plans for our businesses, product candidates and research programs; our anticipated timelines for clinical trials, regulatory filings and regulatory approvals for our product candidates, dietary supplements and diagnostics; the beneficial characteristics, therapeutic effects, and potential advantages of our product candidates, dietary supplements and diagnostics; our efforts to augment internal manufacturing capabilities and operation of our manufacturing facility; anticipated developments related to our competitors and our industry; and estimates regarding the sufficiency of our existing capital resources to fund our future operating expenses and capital expenditure requirements. You are cautioned that forward-looking statements are not guarantees of performance and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of ac

Business

Item 1. Business Overview We are a growth oriented and diversified next generation biotech, genomics and diagnostics company that develops and commercializes novel drugs, dietary supplements, and compounds, and contract manufacturing. We offered a broad array of COVID-19 related clinical diagnostic and testing services including polymerase chain reaction ("PCR") testing for COVID-19 and Influenza A and B and rapid antigen testing for COVID-19 through our wholly-owned subsidiary, ProPhase Diagnostics, Inc. ("ProPhase Diagnostics") up until August 2023. We offer whole genome sequencing and related services through our wholly-owned subsidiary, Nebula Genomics, Inc. ("Nebula"). Our wholly owned subsidiary, PBIO is focused on the licensing, development and commercialization of novel drugs, dietary supplements, and compounds. Our wholly-owned subsidiary, PMI, is a full-service contract manufacturer and private label developer of a broad range of non-GMO, organic and natural-based cough drops and lozenges and over-the-counter ("OTC") drug and dietary supplement products. We also develop and market dietary supplements under the TK Supplements brand. ProPhase Diagnostics Our wholly-owned subsidiary, ProPhase Diagnostics, which was formed in October 2020, offered a broad array of COVID-19 related clinical diagnostic and testing services including PCR testing for COVID-19 and Influenza A and B at its two Clinical Laboratory Improvement Amendments ("CLIA") certified laboratories, located in Old Bridge, New Jersey and Garden City, New York. We also offered rapid antigen testing for COVID-19. In March 2020, the CARES Act was enacted, providing for reimbursement to healthcare providers for COVID-19 tests provided to uninsured individuals, subject to continued available funding. On March 22, 2022, the Health Resources & Services Administrations ("HRSA") uninsured program stopped accepting claims for COVID-19 testing and treatment due to the lack of sufficient fun

View Full Filing

View this 10-K filing on SEC EDGAR