ProPhase Labs, Inc.

Hello and good afternoon, everyone. Welcome to today's presentation. My name is Noella Alexander-Young, Virtual Event Moderator here at Renmark Financial Communications. On behalf of our team, we want to thank everyone for joining us today for ProPhase Labs' third quarter 2025 results. ProPhase is trading on the NASDAQ under the ticker symbol PRPH. Presenting today is Ted Karkis, Chairman and CEO. Following the presentation is a Q&A session for which you can participate using the chat box in the top right-hand corner of your screen. That being said, I will now hand the floor over to Ted.

okay greetings all thank you noella as always uh thank you shareholders and others for joining the call uh this is our q3 pro phase labs uh presentation to review results and uh what we're going to be doing going forward uh first of all i have to thank renmark who does a phenomenal job of hosting these calls we do a call like this about once a month so that i can uh keep investors up to date i also want to acknowledge red chip who we also hired for investor relations. They work in a collaborative effort with Redmark, and I'm really pleased to have Redship on board as well now. Let's just hop to the forward-looking statement very quickly. I'm going to assume that you have all read this. Bottom line, everything I'm going to say today is accurate as of today. It doesn't mean that things can't change in the future. And if they do, there's no guarantee that you'll be updated in the future. All right, but I'll assume that everybody has read the forward-looking statement. And with that, and by the way, this entire presentation is available on our corporate website, so you can review it at any time. As most of you know, these are the verticals of ProPhase Labs. I'm going to go into each one of them. Before I do that, and I'll probably remind everybody at the end, it is critically important, we have a proxy out there, it is critically important that you vote. if you do not vote for our proxy you are putting our company in harm's way it makes no sense if you're an investor and you do not vote your proxy it's really that simple so i can understand why shorts don't want you to vote the proxy but there's a number of reasons for this that i'm going to go into i'm going to go into the various subsidiaries of the company but why don't i just tell you at the outset we are working on some strategic initiatives the strategic initiatives may be impacted if you do not vote the proxy the strategic initiatives could recognize significant underlying value in our company this would be good for all of us as investors so please vote your proxy um we do have a lot of positive voting going on but we do need a quorum and we need everybody to vote all right i'll remind everybody at the end of this call too just because it's so important we can talk about it a little bit about the reverse stock split and all that other stuff the potential reverse stock split why don't i just clarify a couple of things up front we talked about a crypto treasury strategy previously that is not off the table but to be clear i will not do anything that does not significantly recognize the underlying value and assets of our company and and is a creative for shareholders so that we have a stock price potentially or theoretically based on the deal will go up significantly That's the goal. Otherwise, what's the point of doing it? With regards to a reverse crypto treasury strategy or any crypto treasury strategy, we do have a potential massive cash influx coming in over the next year. As that happens... we could certainly develop a crypto treasury strategy around it by the same token at the moment crypto treasury stocks are not in favor crypto is not in favor i believe it's it's somewhat cyclical the long-term trend is clearly up if if you look at the macro trends you know over the next several years but timing on a short-term basis may affect the strategy. So in any event, it's still on the table. It's not my number one objective though. Separate from this, and just recently, we are working on another strategy that will recognize significant underlying value in our company. I don't want to talk more about it today, but again, it's critically important. that you vote your shares if you don't vote your shares and we don't get the votes it could impact a very bullish strategy i hope to update you very soon on the strategy um and um let's just leave it at that i don't want to talk out of line i don't want i don't want to get too far ahead of myself i want to go through the various subsidiaries of the company and we're at we're at right now by the end of this call i think that you will all realize that there is a disconnect between the market cap and the underlying assets in the company. My job is to recognize some of that underlying value and build the company for the long run so that the stock price goes up in the long run. And so we all make money in the long run. That's what I did before. I turned around the company once before when I first took over. We had a $0.65 stock, company potentially going bankrupt. I paid out $2.40 in cash, special dividends to the shareholders, and our stock flew, and we went into all these great businesses. It's like a deja vu because right now I'm working at exactly the same thing. The only difference is back then, all I had was a Coldies brand with declining sales. It looked like I was going out of business. Now we have several assets, each one of which by itself individually has significantly more upside and potential than what Coldies had at the time. So with that, let's get into the various businesses. So the very first asset I want to talk about is our Crown Medical Collections. Now everybody knows I was talking about that earlier in the year. And everyone's like, OK, Ted, are you getting tired of talking about it? We're beginning not to believe. But we went through a critically important process that took longer than anyone would have liked. And it was bankrupting the COVID lab subs that aren't really doing anything now anyway. So it made sense to bankrupt that. It turned out to be a significantly more complicated and cumbersome procedure than I certainly expected. A critical component of that was hiring the right bankruptcy attorney who was independent of Crown Medical to actually be the bankruptcy attorney of record We found the perfect person to do that. He's done a phenomenal job. I can't believe the amount of work he did. And finally, just in like the last week, the judge gave the green light. We bankrupted the lab subs. I reported that. And then critically important, Crown Medical has now been appointed special counsel. The reason that's so important, Crown Medical was already reaching out to the roughly thousand insurance companies that owe us money. We're talking about like $150 million of uncollected COVID testing that at one point in time, the prior government guaranteed we would get reimbursed for. So part of what got us in this mess in the first place, we built up businesses thinking that money was going to continue to flow and all of a sudden it just stopped and all of a sudden we had overhead. which seemed like a rounding error at the time, but became significant when we got cut off from this funding. So in any event, Crown is now going after that. To be clear, a big part of what we're going after are underpaid claims. These are COVID tests where we submitted to the insurance companies, they paid us, but they underpaid us.

Let's suppose legally they were supposed to pay us $125, companies for the balance. We're talking about many tens of millions of dollars, a significant portion of this $150 million. For not paying what they were supposed to pay.