ProPhase Labs, Inc 8-K, filed May 14, 2020
ProPhase Labs, Inc. (PRPH)
About this 8-K
ProPhase Labs, Inc filed this 8-K on May 14, 2020, reporting on events of March 12, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 12, 2020
PROPHASE LABS, INC.
(Exact name of Company as specified in its charter)
Delaware (State or other jurisdiction of incorporation) |
0-21617 (Commission File Number) |
23-2577138 (I.R.S. Employer Identification No.) |
621 N. Shady Retreat Road Doylestown, PA |
18901 | |
| (Address of principal executive offices) | (Zip Code) |
Company’s telephone number, including area code: (215) 345-0919
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions (see General Instruction A.2. below):
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities Registered Pursuant to Section 12(b) of the Exchange Act:
Title of Each Class |
Trading Symbol |
Name of Each Exchange on Which Registered | ||
| Common Stock, par value $0.0005 | PRPH | Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition.
On May 12, 2020, ProPhase Labs, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference in any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| No. | Description | |
| 99.1 | Press Release dated May 12, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ProPhase Labs, Inc. | ||
| By: | /s/ Monica Brady | |
| Monica Brady | ||
| Chief Financial Officer | ||
Date: May 13, 2020
Exhibit 99.1
ProPhase Labs Reports Financial Results
for the Three Months Ended March 31, 2020
DOYLESTOWN, Pennsylvania, May 12, 2020 – ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today announced net sales of $1.9 million for the three months ended March 31, 2020, compared to net sales of $2.3 million for the three months ended March 31, 2019.
The Company incurred a net loss for the three months ended March 31, 2020 of $809,000, or ($0.07) per share, compared to a net loss of $1.0 million or ($0.09) per share, for the three months ended March 31, 2019.
The financial results for the first quarter of 2020 compared to the first quarter of 2019 principally reflect the net effect of a decrease in net sales of $430,000 due to a decrease in demand of third party customer orders, offset by (i) a decrease in administrative costs of $206,000 due principally to a decrease in professional fees, (ii) a decrease in sales and marketing expenses of $96,000 as a consequence of a reduction in marketing initiatives and (iii) a decrease in research and development expenditures of $35,000.
In addition on May 4, 2020, the Company resolved the final pending claim against the Company’s escrow account with Mylan and as a result the remaining funds, totaling $4.8 million, were released from the escrow account to the Company on May 7, 2020.
About the Company
We are a manufacturing and marketing company with deep experience with OTC consumer healthcare products and dietary supplements. We are engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States. This includes the development and marketing of dietary supplements under the TK Supplements® brand.
In addition, the Company also continues to actively pursue acquisition opportunities for other companies, technologies and products inside and outside the consumer products industry. For more information visit us at www.ProPhaseLabs.com.
Investor Contact
Ted Karkus, Chairman and CEO
ProPhase Labs, Inc.
(267) 880-1111
ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| For the Three Months Ended | ||||||||
| March 31, 2020 | March 31, 2019 | |||||||
| Net sales | $ | 1,888 | $ | 2,318 | ||||
| Cost of sales | $ | 1,473 | $ | 1,798 | ||||
| Gross profit | 415 | 520 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 170 | 266 | ||||||
| Administration | 998 | 1,204 | ||||||
| Research and development | 59 | 94 | ||||||
| Total operating expenses | 1,227 | 1,564 | ||||||
| Loss from operations | (812 | ) | (1,044 | ) | ||||
| Interest income, net | 3 | 31 | ||||||
| Net loss | $ | (809 | ) | $ | (1,013 | ) | ||
| Other comprehensive income: | ||||||||
| Unrealized gain on marketable debt securities | 11 | 15 | ||||||
| Total comprehensive loss | $ | (798 | ) | $ | (998 | ) | ||
| Basic and diluted loss per share: | $ | (0.07 | ) | $ | (0.09 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 11,582 | 11,557 | ||||||
ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| March 31, 2020 | December 31, 2019 | |||||||
| (audited) | ||||||||
| Cash and cash equivalents | $ | 697 | $ | 434 | ||||
| Marketable debt securities, available for sale | $ | 840 | $ | 926 | ||||
| Accounts receivable, net | $ | 1,213 | $ | 2,010 | ||||
| Inventory | $ | 1,703 | $ | 1,459 | ||||
| Total current assets | $ | 9,505 | $ | 9,945 | ||||
| Total assets | $ | 11,868 | $ | 12,274 | ||||
| Total current liabilities | $ | 1,125 | $ | 933 | ||||
| Total non-current liabilities | $ | 112 | $ | 110 | ||||
| Total stockholders’ equity | $ | 10,631 | $ | 11,231 | ||||