ProPhase Labs(PRPH) - 2025 Q1 - Quarterly Results

Financial Performance - For Q1 2025, net revenue was $1.4 million, down from$2.4 million in Q1 2024, primarily due to a $1.0 million decrease in consumer products revenue[18]. - Revenues for the three months ended March 31, 2025, were$1,431 million, down 39.2% from $2,356 million for the same period in 2024[32]. - The company reported a net income of$3,966 million for the three months ended March 31, 2025, compared to a net loss of $6,265 million in the same period of 2024[32]. - Net loss from continuing operations for Q1 2025 was$4.7 million, or $(0.13) per share, compared to a net loss of$5.5 million, or $(0.32) per share, in Q1 2024[23]. - Adjusted EBITDA from continuing operations improved to a loss of$1,614 million for Q1 2025, compared to a loss of $4,286 million in Q1 2024[40]. Cost Management - General and administration expenses decreased to$4.1 million in Q1 2025 from $7.3 million in Q1 2024, reflecting a reduction of$3.2 million[21]. - Research and development costs were $97,000 in Q1 2025, down from$272,000 in Q1 2024, a decrease of $175,000[22]. - The company has significantly reduced its workforce from 96 employees in December 2024 to 25 full-time employees currently, aiming to streamline operations and reduce overhead costs[4]. Asset and Equity Changes - Total stockholders' equity increased to$15.1 million as of March 31, 2025, up from $7.4 million at December 31, 2024[24]. - Total assets decreased from$63,200 million as of December 31, 2024, to $50,111 million as of March 31, 2025, representing a decline of approximately 20.7$32,134 million as of December 31, 2024, to $24,052 million as of March 31, 2025, a reduction of about 25.3$1,175 million at the end of Q1 2024 to $88 million at the end of Q1 2025, a decline of approximately 92.5$431 million in Q1 2025, which was not present in Q1 2024[32]. - The company reported cash paid for income taxes of $256 million in Q1 2025, compared to$318 million in Q1 2024, indicating a decrease of approximately 19.5%[35]. Future Prospects - The company anticipates a potential recovery of approximately $50 million in insurance payments through Crown Medical Collections, which could provide significant cash flow in the second half of 2025[9][10]. - ProPhase is pursuing the sale of its subsidiary Nebula Genomics, with expectations of receiving letters of intent in the coming weeks and a potential sale within 3-4 months[7]. - The BE-Smart Esophageal Cancer Test is nearing commercialization, with a recent submission for peer review highlighting its potential to improve clinical testing for esophageal disease[11][13]. Profitability Metrics - Gross margin profit for Q1 2025 was$0.5 million, compared to a gross margin loss of $0.1 million in Q1 2024, resulting in an overall gross margin of 36.8$526 million, compared to a gross loss of $60 million in the same quarter of 2024, indicating a significant improvement[32]. - Weighted average common shares outstanding increased from 17,207 million in Q1 2024 to 35,233 million in Q1 2025, reflecting a significant increase in share issuance[32].