ProPhase Labs, Inc 8-K, filed Mar 27, 2020
ProPhase Labs, Inc. (PRPH)
About this 8-K
ProPhase Labs, Inc filed this 8-K on March 27, 2020, reporting on events of March 25, 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 25, 2020
PROPHASE LABS, INC.
(Exact name of Company as specified in its charter)
| Delaware | 000-21617 | 23-2577138 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(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 March 25, 2020, ProPhase Labs, Inc. (the “Company”) issued a press release announcing its financial results for the year ended December 31, 2019. 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 March 25, 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: March 27, 2020
Exhibit 99.1
ProPhase Labs Reports Financial Results
for the Year Ended December 31, 2019
DOYLESTOWN, Pennsylvania, March 25, 2020 – ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today announced its net sales were $9.9 million for the year ended December 31, 2019, as compared to net sales of $13.1 million for the year ended December 31, 2018.
The Company incurred a net loss from continuing operations for the year ended December 31, 2019 of $3.1 million, or ($0.27) per share, as compared to a loss of $1.6 million, or ($0.14) per share, for the year ended December 31, 2018. The Company incurred loss from discontinued operations for the year ended December 31, 2019 of $40,000, or ($0.00) per share, as compared to loss of $170,000, or ($0.01) per share, for the year ended December 31, 2018. The Company incurred net loss for the year ended December 31, 2019, of $3.1 million, or ($0.27) per share, as compared to a loss of $1.7 million, or ($0.15) per share, for the year ended December 31, 2018.
The financial results for the year ended December 31, 2019 as compared to the year ended December 31, 2018 principally reflect the net effect of (i) a decrease in net sales of $3.2 million principally due to a decrease in demand of third party customer orders, (ii) a decrease in administration costs of $430,000 due principally to a decrease in professional and legal costs, (iii) a decrease in sales and marketing expenses of $65,000 as a consequence of a reduction in marketing initiatives and (iv) a decrease in research and development expenditures of $66,000.
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.
Forward Looking Statements
Except for the historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to potential acquisition opportunities. Management believes that these forward-looking statements are reasonable as and when made. However, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to: the difficulty of predicting the acceptance and demand for our products, the impact of competitive products and pricing, costs involved in the manufacture and marketing of products, the timely development and launch of new products, and the risk factors listed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any subsequent SEC filings.
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)
| For the Years Ended | ||||||||
| December 31, 2019 | December 31, 2018 | |||||||
| Net sales | $ | 9,876 | $ | 13,126 | ||||
| Cost of sales | 7,261 | 8,345 | ||||||
| Gross profit | 2,615 | 4,781 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 1,042 | 1,107 | ||||||
| Administration | 4,480 | 4,910 | ||||||
| Research and development | 332 | 398 | ||||||
| Total operating expenses | 5,854 | 6,415 | ||||||
| Loss from operations | (3,239 | ) | (1,634 | ) | ||||
| Interest income, net | 133 | 167 | ||||||
| Loss from continuing operations before income taxes | (3,106 | ) | (1,467 | ) | ||||
| Income tax liability from continuing operations | - | (103 | ) | |||||
| Loss from continuing operations | (3,106 | ) | (1,570 | ) | ||||
| Discontinued operations: | ||||||||
| Loss on discontinued operations, net of taxes | (40 | ) | (170 | ) | ||||
| Loss from discontinued operations | (40 | ) | (170 | ) | ||||
| Net loss | $ | (3,146 | ) | $ | (1,740 | ) | ||
| Other comprehensive income (loss): | ||||||||
| Unrealized gain on marketable debt securities | 22 | 54 | ||||||
| Total comprehensive loss | $ | (3,124 | ) | $ | (1,686 | ) | ||
| Basic and diluted loss per share: | ||||||||
| Loss from continuing operations | $ | (0.27 | ) | $ | (0.14 | ) | ||
| Loss from discontinued operations | - | (0.01 | ) | |||||
| Net loss | $ | (0.27 | ) | $ | (0.15 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 11,564 | 11,396 | ||||||
ProPhase Labs, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
| December 31 2019 | December 31 2018 | |||||||
| Cash and cash equivalents | $ | 434 | $ | 1,554 | ||||
| Marketable debt securites, available for sale | $ | 926 | $ | 6,687 | ||||
| Accounts receivable, net | $ | 2,010 | $ | 2,968 | ||||
| Inventory | $ | 1,459 | $ | 1,903 | ||||
| Total current assets | $ | 9,945 | $ | 18,238 | ||||
| Total assets | $ | 12,274 | $ | 20,737 | ||||
| Total current liabilities | $ | 933 | $ | 4,233 | ||||
| Total non-current liabilities | $ | 110 | $ | - | ||||
| Total stockholders’ equity | $ | 11,231 | $ | 16,504 | ||||