ProPhase Labs, Inc. Stock

Thank you, everyone, for waiting. We had a few technical difficulties. They are now straightened out. We now have Ted Karkus on the line. Ted, could we do a video and audio check. There you are. I see you. I hope you hear me.

Waiting for your sign.

We are ready to start this webinar, let me do this. Hello, everyone. This is Craig with RedChip Companies. Thank you for joining today's event with ProPhase Labs, which trades under the ticker PRPH. With us today, we have Ted Karkus, Chairman and CEO of ProPhase Labs. We will begin with Ted's brief presentation in a moment, and then we will answer your questions. Users may submit a question at any time click the Q&A button at the bottom of your Zoom window.

Before we begin, please allow me to read the safe harbor statement. This call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to future financial and/or operating results, along with other statements about the future expectations, beliefs, goals, plans or prospects expressed by management constitute forward-looking statements. Any statements that are not historical facts should also be considered forward-looking statements. Of course, forward-looking statements involve risks and uncertainties.

Ted, if you're ready, please go ahead.

Sure. Craig, first of all, people cannot see my screen, so they cannot see the investor presentation. Correct? Do you want to set that up? How would you like to do it?

That is correct. Right now, they're not seeing it. So could you go to the bottom of your Zoom window and find share.

Let me see we have more. It's here. There we go. It's there. Okay. Probably everyone is able to see it?

Yes. Seeing it. Seeing it. Excellent. And in the bottom right -- yes, right there, your cursor -- no, that's my cursor. Bottom right hand corner, you're very close. Going down to presentation mode, you're close.

Okay. So do you want me to click on something?

Yes. In the bottom right-hand corner of your window, you will see the presentation mode. It's over there.

Okay. Tell me where do you want me to click on. One of these?

Yes. The next one to the right.

Right there.

You got it.

Okay. That's already in presentation mode, I think, here we go. Okay. Can I adjust because we're in the wrong one.

Yes, we would rather not see you though.

As long as we have to go to settings.

Correct. Yes.

Okay. How is that?

Perfect. That's right.

We're ready to kick this off?

Please go ahead. Thank you.

Thank you all for joining today. Craig already read the forward-looking statement, so I can skip that, but I will assume that you've all read it anyway. This presentation, by the way, is available on our website at prophaselabs.com. I'm sure most of you have this information already. But in case you don't, and let's see. Craig, this at the top here, is that blocking the tie? There you go much better.

Thank you. Okay. So look, we have several assets here with incredible underlying value. We have the Crown Medical Collections, where we have suggested that we're going to net $50 million in accounts receivable. We have our ProPhase Biopharma, which is basically our BE-Smart esophageal cancer test that I'm going to talk about. We have DNA Completed Nebula Genomics, which is a business that's thriving with almost no marketing dollars, and we have ProPhase Supplements, which we are not particularly focused on at the moment, but it's got enormous potential when we have the working capital to focus on it. So those are our principal assets of the company. I'm not going to go through the history.

Look, I've had success for 40 years. Last year has been ugly. Really, it's been the worst year of my life in terms of execution and also emotionally and psychologically. But we are towards the tail end of restructuring. I restructured other companies before. This has basically become a restructuring. Again, I will go through everything. I will just highlight this one slide here in the beginning of 2025. We sold the manufacturing facility for $23 million, knocked down a lot of debt. We shut down the genomics laboratory, knocking down a lot of overhead.

These things, quite frankly, that laboratory cost us an enormous amount of money. It loaded up an enormous amount of debt. It was with the expectation that the genomics business was going to grow the way the COVID business didn't. It didn't grow in lockstep. And at the same time, the COVID testing revenues that were supposed to be coming in from our testing did not come in to fund the lab. So we had to shut down the lab. We significantly reduced headcount. We've restructured the company now. So we're a leaner company. The biggest issue is we still have debt that we have to service. But beyond that, we're really a clean company. If we have a liquidity event, we clean up the debt, we're going to look like a dramatically different company in the coming year than we did in the past year.

Okay. So here we go. Yes, we still have the slide up here. I believe that there are some questions. I'm not going to go into a lot of detail on the LOI for the proposed reverse merger. Yes, it is still a possibility even as OTC. We may still do this. It's an option for us. We do not have to do this. It's a nonbinding LOI. But in my mind, we have to clean up our company, finish the restructuring, see what our capital structure looks like, see what happens to our COVID Crown Medical receivables, what those collections look like, see what the capital structure looks like before we make a decision on this.

All right. Crown Medical, let's just get into it. So what I want to say about Crown, there are a number of things, and I just came out with an update recently about Crown. The most important things, and I've done a lot of work, and I did a lot of work very recently on this. What's different about Crown, and I've talked to financing companies, the financing companies that are actually interested in financing our Crown Medical Collections. And that forced me to do an even deeper dive myself as they ask their due diligence questions.

So first of all, what's critically different about Crown versus some of the other initiatives with insurance companies and other types of litigation. First of all, we're going after approximately 1,000 insurance companies. So it's not like we're looking and by the way, Crown has actually estimated, we've been conservative in our published information. Crown is actually looking for more money than what's in our published numbers. So I have to be careful in terms of what I say. But let's suppose, hypothetically, Crown is looking to net $70 million or $80 million to Crown. They take out their contingency fees. They're 100% on contingency. They don't get a penny if they don't collect. They have dozens of attorneys working for them on this.

In our case, in particular, just on our lab, they have like 7 attorneys working around the clock. They've reached out to hundreds and hundreds of insurance companies already. So what makes us different, first of all, is more than 60% of what we are going after is on underpaid claims. Why that's critically important is the insurance company can't state it's a bad claim because they already reimbursed it. But what they did is they under reimbursed. When you under reimburse a claim, what you also have to understand is there were legal precedents set by the government that said, you have to reimburse. And there are guidelines on what you had to reimburse. And so there -- because of the law at that time and because of the dynamics at that time, insurance companies just didn't get to say, "Oh, we're not going to reimburse you. We don't like the doctor or whatever."

Somebody wanted to get tested, they were allowed to get tested. And so we have underpaid claims that represent more than 60% of what we're going after. So all we collected on was the underpaid claims, what Crown is finding is they -- and I was just talking to them the other day, they haven't come across a single insurance company that isn't discussing settlement with them on underpaid claims. So talking to potential funders who might fund us with what's called debtor and possession financing or other types of financing that's linked strictly to the Crown collections. And they were concerned, well, don't insurance companies dig in their heels. They don't dig in their heels in general when it comes to underpaid claims. So the numbers on that alone, first of all, we're talking about well over $50 million that Crown thinks that we -- ProPhase Labs is going to net after their contingency fees and more than 60% of that is just on underpaid claims.

So we're talking about tens of millions of dollars to our company over the next 12 to 18 months. And notably, I see this is the only slide I have in this. Notably, they were already appointed special counsel. And again, the way this worked, and I'll say this very quickly, we're going to run out of time very quickly. Basically, we bankrupted or the lab subsidiaries were bankrupt in bankruptcy court, right? Not the parent company, not ProPhase Labs, owing to the subsidiaries. In bankruptcy court, you have expedited trials. The idea, the goal is to get the laboratories or the subsidiaries out of bankruptcy quickly. That's why in bankruptcy court, you don't spend a lot of time in pleadings and pretrial.

And so basically, Crown went to the insurance companies, you do meet and confers. If they don't want to sell it, you go straight to litigation. Crown has this fine-tune to a science in terms of their AI programs, and they'll drop 200 pages of discovery and the CEO of the largest insurance companies. They don't want to litigate. So I am very optimistic that we're going to have collections coming. It's going to be significant. It's going to significantly change our company. And to bridge the gap until we have the liquidity event of those settlements coming into our company, we may finance. If I bring in a significant finance here, that will completely change the outlook of our company. It will take the overhang over potential dilution and all these things that shareholders are worried about.

So let's move on. I can go on to more about Crown in our Q&A. All right. And I want to make sure I'm going to have to move quickly here. Our BE-Smart initiative, we came out with a press release saying we're looking to sell a strategic partner. The bottom line is this is, we believe, one of the best, if not the best, esophageal cancer diagnostic to come out on the market going forward. It basically -- it complements the endoscopy. If you're at risk of esophageal cancer and you get an endoscopy, this will make the diagnosis more accurate, particularly with people not at risk. If you're not at risk, and we report with almost 100% accuracy that you're not at risk, you don't have to get regular endoscopies.

Right now, insurance companies are reimbursing billions and billions of dollars on unnecessary endoscopies. At the same time, you have patients walking around worried, am I going to get esophageal cancer? Am I going to die? At the same time, if you test positive, you know you're definitely positive. If you test positive with our test, go get what's called an ablation that destroys the precancer cells and saves your life. So in all the people that test positive, it will save their lives, saving billions of dollars in insurance costs as a person, which is obviously an awful situation.

But either way, you test negative, you test positive, you save billions of dollars and you save lives and you get patients who are not at risk, peace of mind. It's really a great test. We believe it's ready to be commercialized. We think the best way -- smartest way for a company to do this is to partner, either joint venture it and leverage somebody else's distribution or potentially sell it and get a royalty, get a big block of money upfront in royalty. It's a potentially very large liquidity event that could occur for us in the coming months, okay? That's our BE-Smart esophageal cancer. These are numbers you can go through all of this on the website.

And finally, I mean, we have so much information on this. It's not funny. It's really a great test. Our Nebula Genomics business, I'm not going to go into too much detail, except that it was completely restructured. We shut down the lab with almost no marketing dollars at all. It's generating really nice revenues. And quite frankly, on a stand-alone basis, it's probably profitable. Certainly on a pro forma basis, it is because we also have a new subscription that people are renewing and it's a 1 year instead of a lifetime. And so we get subscription renewals going forward, which is going to add profitability to the business. It's a very attractive business. We think we can grow this significantly if we have the working capital to do so.

So those are the 3 businesses. I could go into a lot more detail on each. That's our management team, investment highlights. And again, we sold the manufacturing facility. We shut down the Nebula Genomics laboratory, significantly reduced overhead this past year, where all systems go. And let me just address a couple of things that are not on this slide, which is we went through a $3.8 million convertible debt that was converted. Most of it was converted literally the day before we did the reverse stock split. It was a really unfortunate situation. The bottom line is more than 20 million shares of stock, I believe, were converted in 1 day in just a couple of hours. It was really an atrocious situation for us. And so when we did the reverse stock split, then people got worried that we were going to be delisted from NASDAQ.

So people started selling, pushing out the overhang of all the stock that was primarily sold into algorithms. So it created a very ugly situation. And basically, we have a stock where our company has roughly $3.8 million less debt. So if you think about it, our capital structure actually improved, our shareholders' equity actually improved by $3.8 million that day, all other things being equal, and yet our stock is down 90% or whatever it is. So it's really an unfortunate short-term supply-demand situation as opposed to an underlying fundamental situation. Once we have a liquidity event, all of this changes.

So I'm sure I'm running over time here, Craig. I thank you all very much. Why don't we go to the Q&A. And in the Q&A, I'm sure we're going to address all the things that I've gone through very quickly here.

Absolutely, Ted. Press the Q&A button and type in your question. The Q&A button is at the bottom of your Zoom window. We can only take your written questions today. So please do not use the raise hand button. But by all means, use the Q&A button. We already have several questions, Ted. How many settlement dollars -- yes, how many settlement dollars have been collected in total since the Crown initiative started?

Sure. And let me just say the reason we're just doing written questions is we have so many written questions coming in. There's no way to get to all of those plus the other questions. I can't believe the number we're inundated with questions. We will do the best we can to answer as many of these questions as possible. So in terms of Crown's settlement, understand this has been a long-term process this past year in working with Crown. But the critical component of it was when we decided that the lab, the subsidiaries were going to be bankrupted, we had a whole procedure for several months in bankruptcy court for them to be accepted into bankruptcy. Once they were accepted into bankruptcy, then Crown Medical had to be appointed special counsel. That just happened roughly 6 to 8 weeks ago.

So once that happened, Crown Medical then reached out -- started reaching out to some of the insurance companies. That number has grown and grown and grown. They have approximately 1,000 insurance companies to actually go after. So several hundred were approached quite some time ago, and that number keeps increasing. The number of settlements are companies that are in settlement negotiations is increasing. We last reported it was over 50. That number is growing. Once we have substantial settlements, it will be reported to the shareholders. It's a sort of premature to expect a lot right now, but I would expect or I would anticipate or I should say Crown anticipates significant settlements starting to come in, in roughly 6 to 8 to 10 weeks.

So the exact timing is hard to say. But in talking to Crown literally just earlier today, they said there's virtually not a single insurance company in which they're discussing the underpaid in which they are not open to discussing settlement. And the reason is they don't want to be labeled as having fraudulent behavior. And the reason that might come about is because Crown is representing dozens of laboratories. So when they go to the insurance company, there might be 3 or 4 other laboratories in 3 or 4 other states that they're representing at the same time. And they're basically going to Mr. Insurance company and they're saying, "Hey, you have 5 labs in 5 different states, you underpaid all 5. That's a systematic pattern of fraudulent behavior.

Insurance companies don't want any part of being labeled that way, not to mention, you can end up with trouble damages. So they're all looking to settle. That's all in the process right now. I wish it would go faster, but I believe we're now at the late stages where settlements are going to start happening soon. And that's why now I'm getting significant interest from financiers who actually want to finance in a significant way. If we get in a large block of money directly tied only to Crown Medical settlements, that would be nondilutive to our company. That would be huge. We clean up a lot of debt. We could grow Nebula Genomics. There are so many things we could do. We'd be a completely different company.

And of course, we're talking about numbers that are multiples potentially -- we're talking about numbers and settlement that could be 10x the entire market cap of the company. Thank you for the question. What's the next one, Craig?

Does the increased visibility shared in today's press release adjust downward the $50 million number in expected collections?

No. Actually, just the opposite. What I'm talking to Crown Medical about is the internal numbers at Crown are actually greater than what I have reported. I just don't want to get so aggressive. Does it really matter when we have -- I don't know when we have a $2 million or $3 million market cap. Does it really matter whether we collect -- ultimately collect $40 million or $50 million or $60 million? We're talking about a stock price that will probably go up 10x, 20x from where it is right now, just on that alone.

So I don't need to get that specific. But what I can tell you is just on the dollar amount that we anticipate collecting on the underpaid, it's many tens of millions of dollars. It's over $30 million. So -- and that, to me, is very high probability of collection just on that alone. And they also expect to collect on the rest, but they believe that some of that will take longer. Not that they won't collect on it, but it will take longer because insurance companies on some of these will drag their feet a little bit more. Next question, please.

If BE-Smart had to be sold immediately in a distressed or fire sale scenario, what valuation range might it command?

That's a great question. I wish I knew the answer. And I don't want to put numbers out there because we are now approaching and we've lined up roughly 70 targets, actually more than 70 targets that we are going to reach out to. And I don't want to put numbers out there, but I can tell you that transactions for similar types of diagnostic tests has been in the tens of millions of dollars. I think we have something really unique here. I don't want to put numbers out there. But whatever it is, if we were to sell this and collect a royalty, we're talking about any valuation could be 10x or 20x the current value of the company.

So I'm putting it out there also because, look, everybody knows we're tight on capital. We've been tight on capital for the last year. It's one of the reasons I entered the convertible debt in the first place. It's just unfortunate that it was convertible so quickly and at such poor timing. But in any event, if we have a liquidity event, then instead of taking on debt, we can clean up debt, instead of potentially taking on dilutive equity, we can actually buy back stock and reduce the number of shares outstanding.

There's a lot you can do once we have a liquidity event. And I certainly know how to do that. I have a history of having liquidity events in the past. For instance, when I sold the Cold-EEZE brand, for instance, when we first ramped up the COVID testing, in both instances, I was buying back stock. I was paying out cash dividends to shareholders. I would love the opportunity to be in such a position again.

This person has a follow-up. Under the same scenario, Ted, what valuation range might Nebula Genomics command?

Sure. So that's a good question. I really like this business. I am just going to highlight to you that the people running it right now who I won't name, but they have done a phenomenal job in restructuring the business and making it into a profitable business that can grow and have legs. And I think it has a very bright future. So when we sell it, yes, if the right buyer comes along, it's possible. We actually have a banker who's dying to work on selling it and is sort of informally exploring that. But at the same time, I also think it's a great business. If we have a liquidity event and we clean up the company and we clean up the cap structure, then actually, that's a business I'd like to keep and grow into something that could be very large and very successful.

Hello. Thank you for hosting this update as a significant long-term shareholder. I appreciate the transparency regarding the company's recent restructuring. I have a few specific questions regarding the protection of shareholder value on cash distributions regarding that $50 million in insurance claims through Crown Medical. If the company recovers a significant portion, such as $10 million to $25 million, will you commit to the special cash dividend for current shareholders as previously discussed?

Clearly, that's a question from somebody who has enjoyed cash distributions in the past. Look, I'm not in a -- clearly, the company is not in a situation. I mean, this is such a hypothetical situation. I'd rather not talk about it. Let the money come in. Let's see how much debt we have. Let's see what our overhead is. Let's see what our expenses are. Let's see how we're going to grow the Nebula business, et cetera, before we start talking about cash dividends. But as I alluded to, I am shareholder-friendly. I always have been. It's unfortunate. We went through this dramatic dilution phase. It's really disappointing to me.

And I understand I believe I was the largest shareholder in the company, and it literally destroyed my equity. So for all of those of you that are hurting out there, just remember, I heard more than all of you. And what's interesting is most of the shareholders have actually I'm shocked, have been very kind to me. I have one long-term shareholder who turned on me, which is really disappointing. I won't get into it. And the reasons they gave, I've never understood. There's no reality to it. But when the stock price goes down and people lose money, they drum up excuses.

What's interesting is I've invested in other companies where when the stock price grabs, I got really upset with management and jumped to all sorts of conclusions. And unfortunately, when people do that towards me, I'm the largest shareholder of the company. All I wanted was what was best for the shareholders. It's really disappointing how this has turned out. But I have a history of restructuring and turnaround companies. I believe I'm going to turn around this company. We're at the tail end of turning it around. I have to get through a little more financing here. And then I anticipate significant liquidity events in the coming months, if not, potentially even in the coming weeks.

A recent press release stated that around 50 of the 250 engaged insurers by Crown Medical Collections were in "advanced settlement posture." Does this mean they have essentially agreed to pay ProPhase Labs with only the final dollar amount remaining under negotiation?

That's a great question and it's so fine-tuning it. First of all, the number is now greater than 50. That number was reported to me a couple of weeks ago, then we put it in the press. That number is growing every day. But I understand it's a very dynamic situation. And so when you say the only thing left is the dollar amount, basically, for the underpaid claims, Crown believes virtually all of them are going to settle. And all of them are going to settle at a high percentage. Interestingly, somebody asked me, and I understand I have financiers that are studying this all very, very closely. And they were asking, well, isn't it possible a lot of insurance companies dig their heels in, and the answer is absolutely, but not the ones on the underpaid claims because the claim was already paid. It means it's a legitimate claim. They can't now say it's not a legitimate claim and should be paid.

And then you have the government with laws out there saying you have to pay and you have to pay the full amount. So they have nowhere to turn. So it's really an interesting situation. They're not digging their heels in at all from what I understand in terms of what's being reported. In terms of when you're at the point, they're in late-stage settlement negotiations to say, well, did they just not settle on the amount? These things all take time, and that's the frustrating part. But by time, we're not talking about weeks by weeks, it could be a month or 2, but we're not talking about 6 months before there's settlements. We're talking about 6 weeks, 3 weeks before they start.

So we'll see. I don't know the exact time frame. I really don't, but I'm excited. But by the same token, that's why I'm working with financiers, potentially get a large block of money now against that. I don't care if they get a return from the Crown Medical Collections. It means nondilutive equity to our company, and it will be a very, very different company if that happens. That could happen in weeks. Will it? I don't know, but that's what I'm working on, among other things.

Following the uplist to the OTC ID tier, OTC Markets updated shares outstanding to approximately 9.5 million. Since the January 5, 2026 update, there has been significant selling pressure. Do you have insight into the source of this pressure? And what is the current shares outstanding figure?

Okay. So the number is going to be a little larger. So a couple of things. First of all, when the $3.8 million is converted, didn't all convert once, and it was less than that, maybe it was $3.4 million and then more converted after that. Each time there was conversion, that's more shares coming on the market. Number two, because most of those shares were sold into algorithms, those algorithms that have to then resell. That's just a computer buying and selling stock. So then the computerized program on behalf of whoever owns the computerized program, whoever they're managing money for, has to turn around and sell that stock at some point. They can't all sell it once there are no buyers for it. So that feeds out over time. That's what was creating the pressure. That's number one.

Number two, the convertible debt didn't all convert. They were still a little left. That's what I reported. I think I reported last month, there was still, I don't know, $400,000 or $500,000 left. As of maybe a couple of weeks ago, there was only $100,000 left. And now I'm not positive. It may be down to virtually nothing. But that's been the selling pressure. Now on top of that, I came out with very positive news about a week ago about Crown. But then at the same time, I think we filed on registering an ELOC, that's an Equity Line of Credit we're Generating Alpha.

To be clear, however, we don't have access to that. So first of all, we don't have an ATM anymore because we went to OTC. And we don't have an ELOC right now. So we're not selling any stock on the ELOC. And we would have to do an S-1 registration, which could take quite some time before we use the ELOC if we use the ELOC. And to be clear, it's not clear that we're ever going to use ELOC. But I think it's important every company should have an ATM or an ELOC. Preferably an ATM, but because we're on OTC, we can't have an ATM.

Legally, you can do it if the brokerage firm will take responsibility for it, but most brokerage firms were. So at a minimum, I did want to set up the ELOC with the ELOC, there were commitment shares involved, although they are restricted, so I don't believe that they are on the market. So -- but you just have -- you also had pressure from investors who can't hold OTC stocks. There are certain brokerage firms that can't hold OTC stock. So all that's been filtered into the marketplace. That's all getting cleaned up now. I hope that answers your question. I'll have more to say about this in the coming weeks. But I think that gave everybody a pretty good indication.

But to be clear, this is all a disconnect between stock price listing OTC versus NASDAQ versus underlying value of the company. The underlying value of the company didn't change, except -- and that -- and so if you think about it, the market cap should not have changed. So if you have twice as many shares outstanding, then the stock price should have dropped in half or 3x as many shares, as they dropped by 2/3. But the market cap should have remained roughly the same. In fact, potentially, it should have increased by $3.8 million since we have $3.8 million less debt. Of course, it didn't happen really I have a background in all of this. I understand exactly what happened. It's really disappointing, but now it's time to work out.

Ted, follow-up here about the exercisable warrants. How many of them remain outstanding? And what is the average exercise price?

I think we're talking about -- we're not talking about warrants. There are no warrants that are in the money. You're talking about the convertible debt. I think the convertible debt is virtually all done. There may be -- and I'm just -- I don't want to guess, but maybe there's $50,000 or something like that, right, which may or may not have been converted. I don't need to get that specific. It's -- really, it's a rounding error. So the problem is $50,000 with where our stock is trading. You could be talking about a few hundred thousand shares of stock.

So all of a sudden, somebody -- you look and you see 50,000 shares of stock for sale. And people say, "Oh, but you got a share we're not talking about a large dollar amount at all." Any sponsorship that comes into our stock, all of this gets cleaned up, the stock could go up 5x and still be significantly undervalued. I know I'm talking about stock price probably more than I should as a CEO, but that's just my perspective. Having said that, we are tight on capital. It's a very frustrating situation to have an undervalued stock price on OTC with a small market cap and needing capital. It's a messy position to be in.

But I also anticipate that's going to dramatically change literally potentially within weeks, whether -- I mean, we have so many potential different liquidity events. So we just have to see. Nothing is guaranteed, nothing is 100%, but we have multiple liquidity events, any one of which will dramatically change the value of our company and in all likelihood, the stock price as well.

With most of the convertible debt now issued, is some of the stock decline attributable to the potential 76% dilution in the merger with ABL how certain is the 76% dilution figure and the $10 million special dividend, can those figures change in the final agreement?

Sure. So nothing related to the ABL deal has anything to do with shares outstanding or dilution or any such numbers. That's simply a nonbinding LOI. It's a deal we may or may not even do, but we have not been issuing shares for it. So there is nothing going on with a potential ABL merger that I think has anything to do with the current stock price or with dilution or shares outstanding. Craig, what's the next question?

How much of the money -- how much of this money will ultimately be reserved for shareholders versus being allocated toward operating expenses? Will the $10 million credit line from Generating Alpha be used for operations instead?

Sure. So again, Generating Alpha, think of that as an ELOC, an Equity Line of Credit. What that basically is it's in our control. If we ever use it, we may never use it. If we use it, we simply write an e-mail or a call Generating Alpha and I say, "Hey, we need $50,000 today. So here's $50,000 worth of stock, send us $50,000 and they will." That's how an ELOC works. And it works based on you can sell up to whatever the calculated formula is. It's based on the last several days of trading, the volume-weighted average price and how much you can sell. So that's if we use it.

But again, we can't even use that until we do an S-1 registration, which we have not done. So what's interesting is I filed an 8-K on the ELOC, the stock price dropped dramatically, but we're not even using it. So it was all psychological and it's unfortunate. And I'm even questioning maybe I shouldn't have even filed or entered the agreement from the point of view that it just scared shareholders and it's probably cut the stock price in half, which is unfortunate. So -- but having said that, we are not currently using the ELOC. We cannot use ELOC even if we wanted to. We will not be able to until we file an S-1. We will likely file an S-1 at some point in the coming weeks. But even when we do, it doesn't mean we're going to use it. I think it's important that every company, every public company should either have an ATM or an ELOC for no other reason, just to use opportunistically.

If our stock goes up 10x on big volume, and I can pick up a quick million dollars, maybe I will, if we need the money if it helps us. But having said that, we're not using it now. There's no dilution from it now other than we did issue commitment shares, but even the commitment shares are restricted stock. And so really, it was a knee-jerk reaction to a filing as opposed to anybody actually selling stock because we were using the ELOC.

Rather long one here, Ted.

Try to make it shorter or go on to the next one because I think we're going to be out of time soon.

If you're willing, Ted, we could go to 5:05 p.m. Eastern, can give us 10 more minutes.

I would love to get through as many questions as I can. I'll answer the questions because I really want to help out to shareholders, if I can.

Okay. I'll read this fast. You've mentioned before that you could either sell the Nebula Genomics business or scale it yourselves. I agree that the database is valuable and it's worth can be debated. But I have a question on the scalability. To be blunt, there was a Reddit thread dedicated to Nebula Genomics customers, and a lot of them seem to have issues with getting their DNA kits results and getting refunds. Is this accurate? And could you provide some clarity as to why this might be?

This is always true with all companies in the business. It has to do with lab sequencing. It has to do with issues with the specimen itself. What happens is these are kits that are sent to people's homes. They then have to collect the specimen themselves. They then have to send it in. A lot of times, it's not a great specimen. It then takes time. We have to send it to a lab. The lab has to sequence it. Sometimes the lab says, it's a faulty specimen. Sometimes it says, let us sequence it again, that can add more weeks to it.

Then after the second time says, this just isn't a good enough specimen, we'll have to get a new one. All that can take a long period of time. We're selling thousands and thousands of tests. So there's always going to be people complaining that they haven't gotten their results or what's going on here. Those are the ones you hear about. You don't hear about the people that said, "Oh my God, what a great service, what a great product, the results, not -- the database that we then use to build the 325 health reports and growing." I mean we have a phenomenal reporting service. Does it from time to time take time to get your results? Absolutely.

But once you get your results, we have this phenomenal health reporting system where you learn all about diseases that you're predisposed to based on your genetic makeup. This is incredibly popular. In the old days, people just wanted an ancestry test. We provide that as well. But now we provide the most in-depth health-related information. We believe we will have one of the best, if not the best platforms in the world for providing the health reports. So that's always going to be an issue, but it's one you have to live with.

Follow-up. Are the entities currently in bankruptcy proceedings, the same entities providing these testing services?

No. They have nothing to do with each other whatsoever. Our genomics business, we built a laboratory for it. And then we shut down that lab and we now send out our sequencing to some very sophisticated labs that we're just doing great with. Our COVID testing business was a completely separate lab. At one time, it was in the same location, meaning it was the same physical address, one of them was anyway. We had 2 COVID testing labs. One was in Garden City, New York, where our genomic testing was being conducted. Currently, our genomic testing is being conducted by another lab. And our COVID testing, we're not currently doing COVID testing anyway, but the COVID lab subsidiaries were called ProPhase Dx New York, ProPhase Dx New Jersey had nothing to do with Nebula Genomics and DNA Complete.

And a final follow-up, is there a laboratory backlog contributing to these reported...

There's always going to be some backlog from time to time. And that's just the nature of the business. I think I already answered that question. Thank you.

Has ProPhase Labs moved out of 711 Stewart Avenue?

Yes, that was done many months ago. It saves us an enormous amount of money. And when we restructured the business and when we shut down the genomics lab, there was no reason to have 30,000 square feet of space. I would think the shareholders would be incredibly happy that we restructured and cut that overhead out of the company.

What are the names of the genomics labs you're currently using?

That's proprietary information. I would never provide that.

Have you made any progress with appealing to the NASDAQ for relisting? What is a reasonable time frame you would be relisted?

Sure. So our approach would be, first, we need to have a liquidity event, which will improve our market cap, which will improve our balance sheet and financial structure. And then we have to decide maybe we go to NYSE first or we just have to see. So this will be in steps. I'm looking forward to that, but it's not anything that's happening in the next couple of months because with our stock price trading where it is, NASDAQ is not going to.

Given that the BE-Smart esophageal cancer test demonstrated a 100% sensitivity, but only a 39% specificity, what do you think is the likelihood?

Did I lose you? I was still answering the last question.

I'm sorry. Sorry, please go ahead.

Yes. I don't understand what happened. Unless I had an Internet connection. You really confused me just now, Craig. What was the last question that was in the middle of answering?

Last question was appealing the NASDAQ relisting, what's the reasonable time frame?

Yes. Yes. No. So I think I pretty much answered that. Very simply, the only reason we were delisted was stock price. We performed on every other category or compliance issue related to NASDAQ. That's what makes all of this so frustrating as it was just stock price, all right? And it was the combination of the timing of the reverse stock split with the exercise and conversion of the convertible debt. It was just very complicated, all right? All right. Now we can go to the next question about our esophageal cancer test.

Sure.

Actually, would you mind skipping that one and go to the next question after that one?

Absolutely.

Only because it's a complicated scientific question, and it's not for this call.

Yes. Can the company authorize the transfer agent to provide updated shares outstanding figures directly to shareholders?

I follow whatever compliance suggests, whatever rules you file with compliance. We've had some issues because we have one reporting service that's getting their data from some really old numbers. It's still providing numbers prior to when the convertible debt was converted. You should assume -- and as I said, we issued commitment shares on the ELOC even though they're restricted. So you should -- and please don't quote me on this number, but I will give you a higher number than what you've heard before. Use a number around 11 million shares outstanding. It might be a little bit more. I don't know what the exact number is. That's an approximate -- please don't quote me on that number.

The only reason I'm saying that number is when somebody tells me they're reading 5 million or 6 million shares outstanding, that's before all the convertible debt converted and other things. And it's just not an accurate number. And I don't want anybody to be misled. That's not to say that 11 million is the exact number.

Ted, I know you covered this earlier, but a lot of people are independently writing in about it. They want to know about the number of shares out and how many you own.

Yes. So I owned -- I don't know what the number was before. It was a -- off the top of my head. It was in the high 3 million. It's close to 4 million shares of stock. At one time, that stock was worth $20 million or more. Now it's worth a few hundred thousand dollars. So just imagine sitting in my chair having gone through that. So you could say, why am I even doing this right now, all the pressure. I'm under pressure for 24/7 working on the company. But this is what I do.

What's interesting is when I took over control of the company through a proxy contest in 2009, 2010, I had to go through the same thing. I had almost no money. It was all locked up in the company. I went through a proxy contest. I suffered through 2 federal lawsuits, a couple of million dollars of potential legal fees, which I wouldn't have been able to pay. And I said to myself, why am I doing this? I'm doing this because it's the right thing to do. Well, that's what I'm doing right now. I'm 100% focused on the company to turn it around. It is a very, very difficult position on that. It's unfortunate that one of my largest long-term shareholders turned on me. It's disgraceful.

But even without the support of long-term shareholders, I'm turning around the company because it's the right thing to do. If you're a shareholder now and you're a shareholder before, you can add to your position right now, you can buy 10x as much stock for the same price. And if I'm even modestly successful this time around, you can still make a lot of money and you can be thanking me a year from now.

Having said that, there are no guarantees in life. There never have been, but I've been successful in turning around restructuring companies for 40 years. And I know this company incredibly well. We have significant underlying assets in the company. We might have $50 million or $100 million in underlying assets in the company. The problem is when you have a $2 million or $3 million market cap, your OTC and you have debt, it's very difficult to raise debt. And in order to raise equity, it's very difficult to raise equity because you don't have a market cap to raise equity and you don't have liquidity. So I'm caught sort of between a rock and a hard place.

On the other hand, we have potential very large liquidity events they're right around the corner. So I'm going to do everything I can to bridge where I am now to where we're going to be when we have a liquidity event. And those liquidity events could be sued. If a financing comes in and says here's $5 million or $10 million against your Crown Medical, it's not debt really to us. It's only paid back by Crown Medical Collections. And it's not dilutive equity, we're home free. So it could happen from a financier coming in. It could come in from actual collections, although that's a couple of months away, so it's not going to help me shorter term.

So we have those 2. There's the sale of the BE-Smart esophageal cancer test or I could do a new convertible debt deal. But this time around, if I do a convertible debt deal, understand it's not convertible for 6 months, and we have liquidity events in -- whether it's in 1 month or 2 months or 3 months, it will be around there. We'll just pay off the convertible debt. So that's also a path. As I said, we filed on an ELOC, but we can't use that until we file an S-1, and that's not our game plan anyway.

So we're still looking at other opportunities. We could file a prospectus against our S-3, which we might to pick up some money here and there. So I'm looking at all avenues. I'm working around the clock. I will be successful. And I hope that for those of you that have been with me long term, you might want to consider buying stock, average down your position. And when we turn the company around, I think you'll be very happy. Thank you, Craig. I think we're probably over time now, but I appreciate you letting me stay over. I answered as many questions as I could.

Go ahead, Craig. I hand it back over to you.

Well, that is just a fabulous place to end. And yes, we've gone over time for our many participants today, and we thank them all. For more information on ProPhase Labs, reach us at 1-800 RedChip or e-mail us at [email protected]. Please visit the information page created by RedChip for ProPhase Labs. It's prphinfo.com. There, you can view and download today's investor presentation and fact sheet and sign up for news alerts on ProPhase.

Watch Small Stocks Big Money, RedChip's program featuring exciting small-cap companies, including occasionally ProPhase Labs every Saturday night at 7:00 p.m. Eastern on Bloomberg USA. And finally, tomorrow at 9:30 a.m U.S. Eastern don't miss RedChip's special webinar, Fintech and digital asset treasuries from modern payments to strategic digital asset management. Again, that webinar will take place tomorrow from 9:30 a.m. to 4:00 p.m. register for that event and for all RedChip webinars at redchip.com/events. Thanks again to our many participants today, and thanks, as always, Ted.

Thank you, Craig. Thanks for hosting. RedChip, you're doing a great job. I really appreciate this opportunity. Thank you, all shareholders. I appreciate your support.

Welcome, everyone. This is the ProPhase Labs Webinar. We'll be getting started in 3 minutes at a quarter after the hour. This is the ProPhase Labs Webinar with RedChip. We'll be started.

Ted Karkus here, CEO of ProPhase Labs. How is that?

Thank you very much. Let us get started.

Hi. This is Craig with RedChip Companies. Thank you for joining today's event with ProPhase Labs, which trades on the NASDAQ under the ticker PRPH. With us today, we have Ted Karkus, the Chairman and CEO of ProPhase. We will begin with a brief presentation in a moment, and then we will answer your questions. [Operator Instructions] Before we begin, please allow me to read the safe harbor statement. This call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to future financial and/or operating results along with other statements about the future expectations, beliefs, goals, plans or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact should also be considered forward-looking statements. Of course, forward-looking statements involve risks and uncertainties. I now turn this webinar over to Ted. Please go ahead.

Great. Thank you, Craig, and thank you all for joining. I am going to assume that most of you are new to the story of ProPhase Labs and to me, that's the approach I'm going. I do other presentations throughout the year usually monthly, where it's mostly for shareholders that know the company well. But the approach I'm going to take today is going to be a fast presentation. Craig told me I only have about 15 minutes for the presentation, then we get into the Q&A. This presentation, obviously, I don't have time to go into detail on it, but you can go to prophaselabs.com, and you can go through the presentation yourself. It's obviously on our website.

Craig read the forward-looking statement. Just very quickly, just a quick little overview here. The key focus of the company, number one, is our Crown Medical Collections. That's the first thing I'm going to go into where we're going up to $50 million. I mean we have a market cap of around $10 million, and we anticipate collecting over $50 million in COVID accounts receivable. I'm going to go into that. ProPhase Biopharma, that has our BE-Smart esophageal cancer test. It's unlike any other esophageal cancer test in the world. It's desperately needed, has multibillion-dollar potential. It's ready to be commercialized. And then finally, DNA-completed Nebula Genomics. That's our genomics business that does whole genome sequencing.

Think ancestry test on steroids. That's what a whole genome sequencing test is. And it's a neat business. We cleaned it up, and it's growing now and has tremendous potential. Finally, historically, we've had ProPhase supplements. That's a business we could build out if we have the capital, but I don't want to dilute our efforts right now. So that's a business that we can build based on our capital availability, et cetera. So this gives you a brief overview. I'm going to go into each of these subsidiaries. Just very quick background on me, graduated top of my class from Tufts University, graduated at the top of my class from Columbia University Business School, where I got an MBA, worked on Wall Street, have been an activist shareholder, have consulted to and helped microcap companies basically for 40 years between Wall Street, working with these companies, becoming an investor, my friends investing with me, turning around companies, et cetera, et cetera. I've had friends get involved in companies with me for literally 20, 30 years. I've never asked anybody for penny.

It sounds hokey. I like helping people. One of the ways I help people is to try and help them make money. Historically, I have done that. Even in our company, I've done that. This past year has not been fun. I will get into that. But before I do, just a quick background. I was a shareholder in our company. And then the prior management did some things that weren't too friendly for shareholders. I launched a proxy contest, won control of the company. When I won control, I found that most of the businesses in it were worthless. There was a chance the whole company was going to go bankrupt. In 2012, the stock price bottomed at $0.65. I turned the company around. And it's like a Deja vu. I only discussed this because we have a penny stock again.

But now the underlying value in our company is so many multiples more than when I turned it around last time in 2012. So I went on to turn around and build the COLD-EEZE Cold Remedy brand, solder for $50 million. In the ensuing years, I paid out to our shareholders $2.40 in cash in special dividends. I'm a shareholder-friendly CEO. I like to do what's best for shareholders. I am a large shareholder myself, and I've owned these shares for many, many years. And now I'm looking to build the company again. So on a $0.65 stock, we paid out $2.40 in special dividends. We went on, we expanded into doing COVID testing. This is myself and my son, Jason.

We built a business from scratch that hundreds of millions of dollars. We then acquired Nebula Genomics. We then acquired our BE-Smart esophageal cancer test. And then the issue was we built out our genomics business with a world-class lab, took the same approach we did with COVID testing where we built out a world-class lab. The only difference is we did it with debt because I thought that the COVID testing receivables was still going to come into the company. All of a sudden, the government runs out of money. So we have debt and the company is not getting any money from the government. We're not getting reimbursed for testing and we went in a downward spiral for the past year.

It has not been fun. In million years, I never anticipated anything like this nor obviously planned for it, but now we're coming out the other end, and it's a perfect time for you all to be looking at our company. So with that, let's talk Crown Medical first. Alright, so, again, the approach I want to take and present it all this to you is we have this ridiculously small market cap that doesn't make any sense to me. And at the same time, we have 3 assets basically, each one of which are worth multiples more that the whole market cap of the company. The first one is our Crown Medical Collections everybody is focused on it. The bottom line is we did several hundred million dollars worth of COVID testing.

We did not collect on approximately $150 million. So, Crown Medical Collection is just a group of attorneys. This is all they do and they were completely on contingency. We have not paid them a penny. They're representing 40 labs in a similar situation to us that did not collect on the testing that they should have collected on. They said that our data set was amongst the best of all 40 labs. I don't want to say that they said it was the best, but I believe actually it was the best. We have very strong data. They then took our $150 million of data. They whittled it down to the collections that they thought they were most highly likely to collect on. And this is with insurance companies. What I didn't realize at the time when we were doing the testing, not only did the government have a program called HRSA, which was funding the laboratories, HRSA was also funding the insurance companies. So HRSA ran out of money to fund us and to fund the insurance companies at the same time.

At the same time, insurance companies were reimbursing us. But if we hypothetically were supposed to be reimbursed, let's say, $125, they might pay us $85 or $75, even though legally, they were required to pay the higher amount. I'm only -- those aren't the exact numbers. I'm only using these as examples. The point being they would pay for the claim, but they would underpay what they were legally supposed to pay. These are the prime initial targets of Crown Medical because these are insurance companies that don't have a defense because they already reimbursed the claim. So they already acknowledge that it's a legitimate claim, a legitimate patient, a legitimate doctor's requisition order, but they just underpaid it.

Now let's suppose hypothetically, they did this with 4 or 5 different labs in 4 or 5 different states. So here we have a case where Crown is representing 40 labs, they may bring a lawsuit or threat any lawsuit against an insurance company and say, hey, we're going to bring 5 lawsuits against you in 5 states or you can just settle with us now, we will give you a discount to settle. So they calculated as $150 million, those claims that they think they are going to collect that quickly and easily. They took what they estimated will be the discount that they have to provide to the insurance companies, and they subtracted out their contingency fees. And when you subtract that all out net to ProPhase Labs, they believe they're going to collect over $50 million for us.

Now timing is important. All the shareholders want to know when is this money going to start to flow in. I would have liked to have started to flowing already, a gating issue was we bankrupted the lab subsidiaries. These were lab subsidiaries that doing much now anyway. We bankrupt them in court -- in bankruptcy court. We just accomplished a few weeks ago. And then the next critical step was the bankruptcy court, the bankruptcy judge and the trustee appointed Crown Medical to be special counsel, which then gives them the right to go approach aggressively the insurance companies would litigate. Now the last piece of this, and then I'll move on because we don't have a lot of time. In bankruptcy court, it is considered expedited litigation. What's meant by that there aren't [indiscernible] because the theory is if you're a bankrupt company, you want to come out of bankruptcy and be operating again, you want to get out of litigation as quickly as possible.

So in that scenario, the bankruptcy court does away with pleadings and all these months of other things going on and goes straight to what's called meet and confers, so the -- so Crown Medical is meeting with hundreds of insurance companies on these meet and confers where they're already talking about settlements. So we're already at that stage. Either they settle or Crown is going to bring documents this thick of discovery that they can serve on everybody at each of the insurance companies all the way up to the CEO. The insurance companies don't want to deal with this. They also don't want to deal with if the publicity, the negative publicity if they underpay 5 labs in 5 states.

So this is the point in time that is critically important where now we believe Crown believes in the next 8 to 12 weeks, settlements, a lot of settlements are going to start to happen. Once that happens, I can't tell you the exact timing on you go from settlement to writing up the settlement documents to actually sending the checks in, they go into the bankruptcy court and then they get released to us. So all that's happening. But several months from now, an enormous amount of money we believe is going to start flowing into the company, ultimately significantly more, multiples more than the entire market cap of the company. That's the future of the financing of our company. All right. ProPhase Biopharma, and I just want to look on. All right.

Okay. BE-Smart esophageal cancer diagnostic test. We are ready for commercialization. This is a test that does not require FDA approval. It's called a laboratory developed test, or LDT. What makes this unique is that roughly 80% of people diagnosed with esophageal cancer will die of esophageal cancer. It's an awful one of the deadliest diseases right up there with pancreatic cancer. The reason so many people die is because they are diagnosed too late. The reason they're diagnosed too late is there's no great diagnosis test out there, diagnostic test. Right now, the standard of care is to get an endoscopy from your GI. Our test makes the endoscopy significantly more accurate, that's [indiscernible] we know we are -- our scientist discovered the 8 proteins that can express when your developing esophageal cancer, so what happens is in endoscopy, they remove 7 or 8 tissue specimens from your esophagus, and pathologist studies under microscope and then gives you the diagnosis.

The problem as I said is two pathologists can look at the same specimen in same microscope, one will tell you have esophageal cancer, one will tell you, you don't. Where we come and just take one of those specimens, send it to our lab, there our lab -- our partner lab, it runs through a [indiscernible] machine with all the AI and the bells and whistles, it looks for the proteins [indiscernible] to be expressed and then based on that, we can give you a diagnosis, not only whether or not you have esophageal cancer, but whether you're at high risk or low risk. The reason why that's so important is if you're at high risk, you can go get a procedure called an ablation and saves your life. If you're low risk, you don't have to get endoscopies every year, every other year. Right now, there's 67 million endoscopies in the United States alone, and this is a global problem, by the way.

Just for people at high risk of esophageal cancer, there's 7 million endoscopies per year. They're being reimbursed $3,000 to $4,000 in endoscopy. That's up to that's $21 billion to $28 billion in reimbursed endoscopies. With our test, we will save lives and we will save money. If you're at low risk, you don't have to get endoscopies as often, it will save billions of dollars. Obviously, if we save lives, that also saves billions of dollars to the insurance companies. So our test, we believe every single one of these 7 million endoscopies should include our test to make it a more accurate test.

If we get reimbursed $1,000 to $2,000, that's a $7 billion to $14 billion addressable market that we're going after where we believe we have virtually no competition. By the way, there is a test out there. If you test positive, they then tell you to go get an endoscopy, which actually will build their business. So we're not even competition with them. So this is a phenomenal test. We're ready to commercialize it. I'm looking forward to when the Crown Medical Collections start to come in, which will fund the developed commercialization of this test.

The other thing I'll tell you, I'm not interested in spending a lot of money on anything. I mean I want to be very careful about this. This is such an incredible tests with so much upside potential that there should be a very large cancer testing company that want to partner with us. Now I can probably partner on this test today, but the question is why I want to partner it today and get a block of money and a small royalty or do I want to partner it in 9 to 12 months and get 10x the block of money upfront and double the royalty that I'll get today. So this -- these are the types of decisions that we're making everyday. The test has phenomenal upside potential. It has no value in our market cap today, and we're ready to commercialize it.

And we have some world-class key opinion leaders that are working with us on it. We got Mayo Clinic right by our side. They work -- they did a lot of the clinical testing and work with us. They supplied the specimens. One of the scientists there is really excited to work on this with us. We also got published in a major journal, which gives us the authority, the credibility that the GIs, the physicians are looking for so that now we can work on commercialization, all right? And then finally, I don't have time to go into this more.

And then finally, I'll just tell you Nebula Genomics, founded by George Church, world renowned in the field of genomics over the last 20 years, Professor up at Harvard. The bottom line, whole genome sequencing. It's like a steroid -- I apologize, it's like an ancestry test on steroids. And what I mean by that is an ancestry test studies a very little bit of your DNA, less than 1%. Whole genome studies your entire DNA. So if you want ancestry information, go get ancestry test. It's relatively cheap. But for a couple of hundred bucks more, if you get a whole genome sequencing test that studies your whole DNA, you're going to get dramatically more information about your health.

Everybody is basically based on their genetic makeup is predisposed to various diseases. Everybody has genetic mutations. And so if you learn about those genetic mutations, it tells you -- we can tell you which disease you're potentially at high risk and low risk. This is primarily a direct-to-consumer business. It's got phenomenal potential. We built it. We acquired it 3 or 4 years ago. It was being built for 3 or 4 years before that. The SEO search engine optimization on this is incredible with us doing no advertising at all. We're doing several million dollars a year business. With a little marketing dollars, we can grow this business dramatically. Also, Jason Karkus took over, cleaned up the business. We shut down the expense of lab and all the overhead.

So going forward, it's actually a breakeven business that's profitable on a pro forma basis. And with a few marketing dollars, we can grow this business dramatically. It will be very valuable. We were thinking about selling it a few months ago, but we decided if we just grow this for 6 or 9 or 12 months, we believe we can sell it for a lot more than the entire market cap of the company. So those are the key assets of the company to pay attention to. I don't have more time to go into this now. I think we're about to go into questions. We have our management team, investment highlights. Again, you can look at that on the website. Last thing I'll tell you, a lot of people were asking about the ATM. We do not have an ATM. We have set up for one at investment bank. It is not currently active, and we have not used an ATM in the entire year. So just be aware of that. I know there were a lot of questions about that. And with that, why don't I turn it over to questions? I've been feeling some of the things that I haven't covered yet, I will cover in the Q&A. Craig, over to you, please.

Thank you very much, Ted. Yes, we are going to be taking only your written in questions today. [Operator Instructions].

And Craig? While you're waiting to read -- those questions are coming in, I would just like to cover one thing in our investment highlights the top paragraph. We have completely transformed the company from a year ago. We downsized significantly. We sold our Pharmaloz Manufacturing facility, which cleaned up a lot of debt in the company. We shut down our Nebula Genomics laboratory, which had tremendous overhead. I would have loved to have kept it.

Unfortunately, the overhead was too great and the Crown Medical Collections did not come in, et cetera. It just made a lot of business sense. And so everything I'm doing right now, we dramatically reduced the overhead in the company, the headcount, the IT. And so we are a much cleaner company now. The operating overhead is significantly less even right now today from even just a few months ago. So I just thought I'd share that with you. So we're set as this Crown Medical collection comes in, we're going to be a dramatically different company in 3 and 6 months from now. All right, Craig, over to you. I'm assuming some good questions are coming in.

Yes, they sure are. Thank you. What is a reasonable time frame to expect the initial collection of cash from Crown Medical? He follows up with the company appears to be increasingly reliant on short-term debt and borrowings until Crown Medical cash arrives. When is a reasonable time frame for cash to actually come into the company given we are now near the end of 2025, and it's been nearly a year. Okay.

Great. That was a long but very good question. All right. So the answer is we anticipate -- and don't quote me on this, but given that Crown has now been appointed as special counsel. See, the bank -- going into bankruptcy court was the most important thing. That was the gaining part that took so much longer than anybody anticipated. But the key is that once you're in bankruptcy court, we can approach 1,000 insurance companies from the same court, the same one judge, the same expedited discovery, et cetera. So we're now in a place where they can efficiently -- we're talking about dozens of attorneys. They've already reached out to hundreds of insurance companies.

So we anticipate in the next 8 to 12 weeks, settlements. Then you have to deal with the timing of the actual cash coming into our bank account. That might be another 4 weeks to 8 weeks after that. It could be sooner. But once those settlements start to happen, it will be very easy to finance the settlements anyway. If you know, all of a sudden, we have $10 million in settlements on the horizon that are coming in 4 to 8 weeks, anybody will lend me the money for the 4 to 8 weeks if we need it. Having said that, there are institutional investors out there, where this is all they do.

We are talking to a very large respected institutional investor that may finance our Crown Medical Collections. If they do that, we're home free with financings for the company forever. I think our stock price will -- well, I don't want to talk about our stock price, but things will be very different if that happens. That could happen soon. I can't guarantee it, but it's one approach I am taking amongst others to figure out the best way to finance the company. I'm doing everything I can to avoid equity -- to do debt over equity. At the same time, one tricky part about this is we take on debt, you pay back the debt. Whey you pay back the debt, you end up with more debt because you paid it back and paid interest on it. So you [indiscernible] original debt plus interest on it. It's not a fun way to operate your business.

So I'm juggling between debt, equity, financing Crown Medical Collections, partnering et cetera. There is one other thing I didn't even go into on this call [indiscernible] miss for now, doing that and I apologize because it's not in our presentation. We talked about a crypto treasury strategy. Since that time, obviously, the crypto is crashed. You know, over the last couple of months, it's still a possibility, but we have something much higher, and by the way a proxy test everything, we have something much higher on the list. Then, our crypto strategy, it's an M&A strategy that would value our company at dramatically more than the current market cap. Stay tuned. I don't want to talk more about it now, but I anticipate updating shareholders in the near future. I believe I said that on the quarterly conference call. So I don't think that that's anything new than I'm saying that right now. But I'm really looking forward to updating shareholders who could be in for a very positive surprise in the near future, right? So I will leave it at that for now. Great question. Next one, please, Craig.

Again, Ted, tell us, what do you think the disconnect is between how you value the business and the market cap of the company?

Honestly, it's very simple. Any company that didn't go through our financial issues of this past year that has the assets that we have would have a market cap of 10 or 15 or 20x our market cap right now. Our esophageal cancer test alone should have a market cap by itself. If it was in a clean company with no debt and had a little capital, it could have a market cap of $50 million today right now. Once it develops 3 years, would have -- it could have a market cap of $150 million. 2 or 3 years, it could have a market cap of $300 million to $500 million. It ultimately has multibillion-dollar potential.

We have a test that's dramatically better than tests that are out there in these small companies that have market caps of $150 million to $450 million, and our test is significantly better than their test. And I can go into it on a separate call or with our scientists or whatever. The point is there's 0 value. There's nothing but upside in our BE-Smart esophageal cancer test. And then I already went through our Crown Medical speaks for itself. They said that our data was amongst the best data of any lab that they are working with. They're working with 40 labs. And we're in bankruptcy court, and they're already approaching the insurance companies. And there's no question there. I want to quote them.

I can tell you that Crown Medical has written paragraphs for our press releases where they specifically said they are confident they're going to collect more than $50 million in -- from the COVID accounts receivable. So if we potentially have $50 million, that might be over 12 months. But if we even have $25 million of cash coming over the 12 months, forget about $50 million. If we have $25 million of net cash coming in, we got a $10 million market cap and a potential multibillion-dollar esophageal cancer test and a world-class genomics business that we can grow into something that could be very valuable. By the way, our genomics business has data that we've collected over 8 years, 130 countries of whole genome sequencing data.

A whole genome sequencing test has a 1000 to 5000 times more data than an ancestry test. So the database that we have, the genomics database we have, which is so valuable [indiscernible] is the equivalent of like 150 million ancestry tests. It's just incredible database. We could not [indiscernible] by itself for a political and legal reasons, but somebody potentially could acquire all of Nebula Genomics and we get that database included in it. So we have so much underlying value of the company and that's why there is a disconnected to only because we tied on cash and people are scared because we are tied on cash and that's not always going to be the case and as I said, we may do a financing against our COVID -- Crown receivables. If we do that [ we're home free ]. So I'm working with different financing opportunities right now and we'll what comes from it. Thank you for that question.

Tons of great questions just flowing in. Thank you, everyone, for your great interest. We're going to try to get as many answered as possible. How is the company going to overcome the risk of delisting?

Well, thankfully, the -- first of all, I was hoping that we didn't even need to do a reverse stock split. It looks like we probably will have to do a reverse stock split. Thankfully, the shareholders voted for it overwhelmingly in favor of it. And I've used -- I've said this before, a large investor who is involved in another company actually pointed it out to me. I don't know if I should be quoting other stock symbols. I think it was OESX, but he said he was working on that company, they did a reverse stock split. The stock went up afterwards. So what's interesting here is we filed the proxy, everyone gets scared, the stock sells off the combination of end of year tax selling and the prospects of a reverse stock split, everybody is scared, they run for the hills.

The stock sells off. I mean I'd like to think it's more than fully discounted in the price of the stock. We have like a $10 million market cap. So we do a reverse stock split, understand your shares on a ratio basis, we will still have the same market cap. Your shares will still represent the same percentage of the company. So in round terms, if we did a 1 for 10, so you have 1/10 the number of shares, we'll also have 1/10 the number of shares outstanding in the company. So nothing's changed. But now the threat or fear of a reverse stock split has gone, the threat or fear of being delisted is gone. And then we go into either I do a financing against Crown Medical and/or at some point, Crown Medical Collections actually starts to come in. And then we're home free. And then all of a sudden, we get a market cap 5 or 10x what it is today. I hope that answers the question.

Thanks, Ted. Yes, it surely does. Are you going to wait for Bitcoin to recover before announcing that strategy? What are the main considerations to decide to do the crypto strategy?

Sure. So look, it's very simple. At the end of the day, I want to do what's best for shareholders. I want to do the best deal for shareholders. So we have opportunities here. We may have an M&A strategy that values just a portion of our company, not even the whole thing, just a portion of our company. And I don't want to go too much into this at multiples of the current market cap. That's something I'm working on right now. That is not related to the crypto strategy. Is it possible? Yes, we could do a crypto strategy, but I'm not going to do that unless it adds -- it's accretive and adds value to the company today. At the same time, what's interesting is the Crown Medical when those collections start to come in, we may have so much cash coming in, and we don't know what to do with it.

At that point, we might be able to do a crypto treasury strategy without diluting shareholders by doing a capital raise. A lot of these companies do reverse crypto treasury strategies, and then they go out and raise tons of money diluting the shareholders to buy the crypto. So imagine we have the cash that comes into the company to buy the crypto. And then we have these world-class crypto asset managers who could manage it and actually generate a return. So you hold the Bitcoin. Bitcoin is going to go up over the next 1, 2, 3, 5 years, 10 years. And forget about 1 year. Over the next 2, 5, 10 years, it has to go up. I strongly believe that. All the -- there are so many governments around the world that are now looking into that. And I mean, including the United States, there's no question there is a place for Bitcoin. And -- but we'll see. That is something. It could happen. I'm not in a rush to do it. We'll see how this all plays out.

We have opportunities. So for the Bitcoin strategy, we'll see. That's not front and center right now. What is this M&A strategy that would bring enormous value, enormous capital to the company, enormous value to the company. The shareholders would love that deal and the Crown Medical Collections kicking in. Those are enormous opportunities, either one of which our shareholders will make a lot of money and be very happy. And then the other thing I'm working on, as I said, is potentially an upfront financing of a portion of the Crown Medical Collections. So we have all these things going in our favor.

Going to conflate various writers having similar ideas here. Would the company be open to strategic M&A opportunities for a complementary genomic test once the Crown Cash comes in? Are there partnerships on the horizon for the DNA testing? It seems like a great product, but also a product that will only take off through marketing or falling into a niche.

Sure. So we have tremendous SEO for our Nebula Genomics business. We've cleaned it up. So that's basically the way we built it, and I have to give Jason Karkus all the credit for this. He's built it now so that we took what used to be a lifetime subscription, and we found if we sell a 1-year subscription, we're getting the same conversion rates. It costs with the same amount of advertising and selling at the same price. We can sell just as much product with one year instead of life time. So with the one year, most of the consumers watch renew of the following year. They pay a subscription price to renew. That's almost all profit. So it's incredible business. This has been transformed into a business that could be highly profitable, that could have lights and really go places.

Everybody more and more wants to know about their health and how their genetic makeup plays a role in your health. So for example, if you're at high risk of breast cancer, it might motivate you to get more checkups more often or if you're risk of esophageal cancer test, you know, esophageal cancer, it might motivate you to get more endoscopies or more checkups or colonoscopies. If you're high risk of colon cancer, you know, the insurance companies tell you get your first colonoscopy at age 50. But if you're at high risk, why would you wait until 50 and listen to the insurance company. You probably want to get one at 40 or 35. So there are all these different ways. If you know that you're at high risk of a very deadly disease or cancer knowing that there are healthy options that you pass that you can take to help avoid those very deadly diseases and cancers. So this -- you get a wealth of information. We have literally one of the best tests, one of the best reporting systems in the world as well as one of the largest databases. So it's really a valuable business.

So yes, with a few dollars, we could ramp this business up in a big way, and we're looking forward to do that once the Crown Medical Collection starts to come in or even if I get this deal done for financing the Crown Medical Collections or if we do an M&A strategy for the whole company. But so to sell Nebula Genomics now, could we -- yes, we could probably sell it now. In fact, I just met with a banker who thinks he could bring a buyer in very quickly. I'm just not excited to sell it for a little bit of money if in 9 or 12 months, we can sell it for 5x as much. So it's all a matter of what's best for the shareholders over the next 12, 24 months, not what's best over the next 3 or 4 weeks.

Ted, what other strategic initiatives are you pursuing apart from a reverse stock split to reassure shareholders that this is not the only option being considered to meet compliance by December 2025?

Yes. So look, we're in December right now. We're running out of time. I could do an M&A strategy, which I discussed. The reverse stocks split, the one thing I have to tell you, though, sincerely, where is the market cap going after the reverse? Is there -- based on everything I described today, is the market -- because we do reverse, we're really going to go down. That would be silly. If Crown Medical comes in, the $15 million of the $50 million comes in from Crown Medical, and we have a $10 million mark cap. I'm like, "I'd want to buy back every single share in the company." Literally, buyback 80% of the shares in the company. It's silly if the stock was there. It doesn't make logical sense.

So you have to put that in some kind of perspective. It's one thing if we had a 150 million market cap, because we have billions of shares outstanding right now. Then, could you say, "Oh, maybe the stock is going to go down after the reverse." But we have a $10 million market cap, $50 million or more in accounts receivable that we expect to collect, a multibillion-dollar potential esophageal cancer test and a world-class genomics business. Like I don't know what other company out there has a smaller market cap as we do and that much potential. Thank you. Next question, please, Craig.

Love this turnaround story here he writes. So if no ATM, would you consider a share rollback in the near future?

That's interesting. I worked on Wall Street starting 40 years ago, I don't even know what you mean by a share rollback. When, not now, look, right now, we have to raise capital. You only have 2 choices: debt, equity, combination of debt and equity, okay? I'm looking at all ATM, working with a couple of different financiers, one who really wants to partner with us has deep pockets, who might -- who wants to do a deal with us and then somebody else who wants to finance our Crown Medical Collections. So I have all these different opportunities that we have to weigh and we have to figure it out. And the same -- so having said that if you mean by share rollback, if you mean buy back stock, I don't believe I allowed to state until we actually do, whether or not going to buy back stock. But I can tell you historically, when we sold the COLD-EEZE Cold Remedy brand for $50 million, and we had an undervalued stock.

I bought back stock. I did two, what are called Dutch auctions where we bought back stock from everybody that wanted to sell. I'm a big believer if we have an undervalued stock, buyback stock, okay? So let's see what happens. That's not a question for today, but let's see what happens when the Crown Medical Collection starts to come in. And in the meantime, again, there are players out there that are recognizing how much underlying value in our company. They're not waiting for Crown Medical Collections to come in. So -- and like I said, I have an M&A opportunity in hand right now that we're negotiating right now. So I can't make any promises what's going to happen. But as I said, I expect to update shareholders at least to let them know where we are in the process in a few more details, which could be quite interesting in the not-too-distant future.

Keeping with that theme, assuming the company is as deeply undervalued as you say, why have we not seen any insider buying over the last 12 months?

Well, look, honestly, I'm really the only insider. And to be honest with you, I am very tight on cash at the same time that the company is. And having said that, a part of me is saying, I want to go buy stock anyway. I actually, for most of this year, I deferred 2/3 of my salary for most of this year. I didn't even get a benefit for doing that. I did that to help the shareholders. And my son, Jason did the same thing. He's sort of second in command. He's running Nebula Genomics. And the bottom line is we want to do what was best for the shareholders. So I'm deferring taking in money.

The other part of this is really complicated. [indiscernible] says, I really want to buy a block of stock. Just to tell everybody, this is silly. The only problem is I can't buy stock. There are only windows I can buy stock like right after we report earnings, but not if I'm in the middle of an M&A transaction. If I announce an M&A transaction, the stock doubles or triples, I can't buy stock just before, then I'll get sued. So there's so many issues involved with me buying stock right now, but I'm doing everything I can to be supportive of the company. I made a loan to the company and then separate from making a loan to the company. And by the way, I borrowed money to make a loan to the company just to help out the company.

I did that -- that's kind of complicated. I'm not going to go into that, but we have secured debt out there that is senior to my loan to the company. I did that to help the company. I deferred my salary to help the company, all right? So -- and frankly, my hands are tied. I can't buy stock even if I want to right now. It's not even a possibility. With all the things that I just described, it's not even a possibility. It may be in the future, if there's a window that opens up and the stock is trading around these prices, then absolutely, I could be interested in it. Not even a question.

Why should long-term shareholders believe this management team can successfully pivot the company during one of the most complex periods ProPhase has ever faced.

That's a great question because I've done it for 40 years, and I just did it with this very same company a dozen years ago. It was in virtually the exact same shape a dozen years ago. We are going to work out of this over the next few months. The second, you see that we are working out of our current situation, which is what, stock price is magically going to go up. Well, I'm not -- I don't think I'm supposed to talk stock price. But like we're close to the finish line and turning around the company. We already cut out all the overhead.

That you can go back and look at one of the very first slides, and you'll see, we already cut out all the overhead. In fact, you can also see here at the top of this slide, sold the manufacturing facility, shut down the genomics laboratory, reduced the headcount. All these things we did over the course of this year. We're now a much cleaner company. The biggest issue we have is that we have some debt on the books. So we just have to get through the next few months to Crown Medical comes in. Two key ways of doing that, do a financing against the Crown Medical, do a separate financing in the company, do an M&A strategic deal. Any of those things and we're home free. And I think you'll see the stock trading quite differently than it does today.

How many employees does the company have?

I don't know that number off the top of my head, but we went from hundreds to -- and it also depends in the main company. I don't want to speak out of turn. It's not a lot of employees. We've really, really whittled down, like less than 2 dozen, maybe a lot less. I honestly don't recall off the top of my head the exact number, but it's not a lot. In fact, actually, it might -- I don't want to be misquoted and I don't have the number off the top of my head. So I apologize. I can certainly get back to you with that number. But off the top of my head, key employees is maybe it's a dozen -- less and that includes the whole finance department.

Thanks, Ted. Good time to tell everyone, write us at [email protected]. We will forward your e-mail to Ted, you'll get your answer. Ted, a personal question for you. What is the most valuable lesson you have learned during this process? And he doesn't say what process, but...

It's a great question. I have been severely humbled over the last year. Frankly, I didn't have an ego before. It doesn't make it any easier. I'm shocked that the company got into the position it got into. It's funny. I watched how other companies went through and there were these hot stocks 5 years ago and they crashed and they go to 0. There are companies that want to do deals with us, and I just watched and their stocks went to 0 and the companies went out of business. And they just took the money for granted. They took what they were doing for granted. I never took anything for granted.

Back when we built out the genomics lab, we acquired Nebula Genomics, built out the lab. All of that combined was tens of millions of dollars. In a million years, I wouldn't have done that. If I didn't think more than tens of millions of dollars was going to continue to flow into the company. All of a sudden, it got cut out. All of a sudden, the government just ran out of money even though they guaranteed the testing. We had this debt, we had this overhead. It put me in an incredibly difficult position, but I never took anything for granted. And that's the disappointing part is I ended up in the same position with our company as other CEOs who manage their companies poorly do.

So I did the opposite. I've now completely restructured the company, cleaned it up. I've turned it around before. I turned around other companies. There's a company called ID Biomedical, biotech company up in Vancouver, Canada, ended up flying up there a couple of times, forced out the CEO, fought with the Board to promote the 2 guys underneath, did 2 financings for them. I primarily did that because I was a large shareholder and my friends were large shareholders.

And I forced a restructuring of a company that was head in the same direction for bankruptcy and they turned around. Ultimately, they were sold to GlaxoSmithKline for $1.4 billion. I don't take credit for the sale. I was long gone a couple of years before that. But instead of my friends and I losing our investment, we probably made a triple or quadruple. So then take our company, which originally was called the Quigley Corporation, stock was $0.65. Again, -- by the time I took control of the company, we had to write off most of the assets company looked like it was going out of business. It had one asset, COLD-EEZE Cold Remedy, that had declining sales for 4 or 5 years.

All the retailers wanted to kick it off the shelves. So it looked like we had a business literally was going out of business. So I immediately cut from 27 people in the headquarters to 4. We built it up ultimately went about 7 people in the headquarters, turned around the brand sold for $50 million, turned around the company, bought back stock, went into COVID testing, built out a whole new business. So I've done this multiple times before. So to be honest with you, if I wasn't the CEO, the first thing I would tell you is hire me as the CEO to turn around this company. And that's what we're doing.

Will the reverse split limit how many shares we can sell within the stock when this is going on?

I don't think there's any issue. There's a certain date. People are so focused on the reverse stock split. That's -- I'm just being honest with you because a lot of people ask me that question in recent months. You have to understand the market value compared to the underlying value doesn't change. The ratio, however many shares you own, you own the same percentage of the company before after reverse stock split. So if you own 10 shares of stock at $0.20 or 1 share of stock at $2, you own the same amount of value in the company, all right? The difference is no one will be scared of a reverse stock split anymore. Also, there are companies that don't like to finance and/or can't buy penny stocks.

So if we do a reverse stock split, there are new institutional investors who actually really like our company, really like our story, they're not allowed to buy it in their portfolios. So believe it or not, this could be a good thing. The stock could actually go up and not down after we do the reverse. Don't quote me on this, but there's no reason for the market cap to go any lower. There's no reason for the market cap to be here. I feel like it's already fully discounted in the price of the stock. Plus we already just went through tax loss selling for the year. So to be honest with you, this is the time to be looking for low-priced stocks that have sold off for value investors.

Here, you get a situation where we have tremendous potential growth, tremendous value and growth. And we've just gone through the tax law selling. So the reverse stock split itself by itself is not something to be scared of. 5% or 10%, I don't know the exact number, don't quote me, of companies who do reverse stock splits, the stocks actually go up afterwards. Ours should be perfectly positioned just based on all the good things going on with our company. And again, stay tuned. I don't want to hype anybody, but I told you that I'm going to be following up with you on an important initiative. I am going to be following up with you on an important initiative. I can't say more than that sitting here today, and it's up to you whether you want to listen to what I'm saying right now. But I wish you the best of luck.

Thanks, Ted. We are over time, but -- if it's all right with you, Ted, we can go a few more minutes and...

You have a really good question. Otherwise, we are way over time, but go ahead. I leave it to your discretion.

Yes. I can easily forward you all of today's questions. But I think there are some good ones. The question of the stock split is on everyone's minds if today's questions are any indication. Can I give you a few more on that? Okay. When would you have to perform the reverse stock split in order to maintain NASDAQ compliance? And what if the stock goes below $1 after the split?

It goes -- it doesn't make any fundamental sense for it to go below $1 after the split. But once you do the split, as long as it stays above $1, look, if we do a 1 for 10 reverse stock split right now, our stock is going to be trading around $2 okay? So -- and it will be around $10 million. What's it going to do? It's going to go to $5 million market cap. I mean this is silly. One wealthy guy could buy up the whole market cap of the company. This is silly, right? So people that are asking these questions don't quite understand. So if we do the reverse, we would do it relatively soon in order to stay NASDAQ compliant. Once it's above $1 for 10 days, it doesn't matter. We're set. Even if it goes below $1, it doesn't matter, you have another year before it's an issued.

And in the meantime, we have all these things that are happening in the next few months, not in the next year. The Crown Medical is happening soon. And God forbid, if we didn't do the reverse and we got delisted from NASDAQ, we'd just be over the counter. Once some of this $50 million comes in from Crown Medical, we will go right back above anyway, right? So I don't think that would be an issue at all. I'll buy back stock to get us back over, and we'll go right back on NASDAQ again. So even if we went off NASDAQ, we could go right back on it again. That, to me, is not a big deal. But to be honest, I hate having a penny stock anyway. And so -- and we want to make sure we stay on NASDAQ, and we don't want it to be at risk. So the reverse stock split is something we would do relatively soon. But again, I think the fear is already in the stock. It's already discounted. We do reverse stock might actually go up on it. Plus, as I said, we may have some other very important updates, which would dramatically outweigh any concerns for a reverse stock split.

And final question, Ted. Are you at all concerned about facing a scalability issue regarding BE-Smart if you do not receive the ground collections, how will ProPhase support and scale BE-Smart in a way that would be beneficial to the shareholder?

Right. So first of all, I don't see a scenario where we don't collect anything on the Crown Medical. It doesn't even make sense to me. We have dozens of attorneys that have worked on our company for literally 6 to 9 months to get to this point right now. We have insurance companies that reimbursed for our patients that came to us for testing and underpaid that are legally liable for that payment. We have Crown Medical, whose whole focus is on collecting that we're not paying a penny. They're doing it completely on contingency. We expect an enormous amount of money, not just some, an enormous amount of money to come in.

We have somebody who short term may finance and give us a big block of money. If we do that, we're home free. I'm working on that literally today right now. Having said all that, with the BE-Smart esophageal cancer, I will go out and partner it sooner rather than later. What's interesting is when we got published recently, that was about 2 weeks ago, in a major journal, we now have other companies reaching out to us saying, "Hey, this is really interesting. They also see our market cap." They're like, "Hey, maybe we should do a deal with you right now." The other thing I'll tell you is I have no interest in doing a grassroots, build out from scratch, build out 20 or 30 salesmen. That would be very expensive. It would take a lot of time.

What we really want to do is we want to get a consortium of hospitals, of physician groups. And you got to understand our scientists and our advisers, they all have relationships with these groups, get them to sign on and just start using our test as a cash-based test, not to make money, but just to gather momentum. We do that and then we partner, we might get 5 or 10x the offer that we would get today. So couldn't we partner today? Yes. My personal choice is, as long as we have money coming in and we get financed is to wait a year, not spend a lot of money, get the momentum going and they get a big company who already has the reach to all the physician companies, all the physicians and all the hospital networks around the country. And it would be a no-brainer to do some sort of a partnership.

They give us a big block of money upfront plus they give us a royalty. The royalty could be more than we can generate ourselves owning 100% of the test. So we have tremendous potential with the test. I'm not bankrupting the company over the test. I don't want to spend any money on this test other than enough to get the momentum going. Like our initial budget on it for the next 12 months is like $2 million. So we think we have $50 million coming in. I want to spend $2 million of it to develop esophageal cancer. Maybe it would go to $4 million. I want to pay off all the debt in the company, all right? I'd want to spend $1 million on marketing for our Nebula Genomics business.

What am I going to do with the other $10 million, $20 million, $30 million of cash? Well, if our stock price is anywhere near these prices, guess what I'm likely to do. All I have to do is look at my history of what I've done in the past between paying out cash dividends, buying back stock, things of that nature. Those are fun things to do. But we'll see. That's in the future. First, the money has to come in, but there are several ways it can come in, including a financing short term. And separately, we also have some M&A activity that I'd like to share with shareholders in the not-too-distant future as well. So a lot going on with our company.

Absolutely, Ted. Thank you very much for going over time, Ted, and thanks to everyone for your many, many questions. I have already forwarded to Ted the ones that we have not been able to use today. For more information on ProPhase, reach us at 1-800-REDCHIP or e-mail us at [email protected]. Please visit the information page created by RedChip for ProPhase Labs. It's prphinfo.com. There, you can view and download the investor presentation and fact sheet and sign up for news alerts on ProPhase. Watch Small Stocks Big Money, RedChip's program featuring exciting small-cap companies every Saturday night at 7:00 p.m. Eastern on Bloomberg U.S.A. And finally, please join RedChip's next webinar with Jackpot Digital on Wednesday, December 3, at 4:15 p.m. U.S. Eastern register for all RedChip webinars at redchip.com/events. Thanks again to our many participants today, and thank you, Ted.

You're quite welcome, Craig, and thanks, everybody, for joining. I actually really enjoyed the presentation. The Q&A was first class, and it just shows that there really wasn't a lot of interest. So I thank RedChip. You did a great job of generating that interest today. I'm very impressed. I'm looking forward to doing more presentations in the future. And I wish you all good luck. Investing in microcaps is not an easy business. All I can tell you is we have an enormous amount of underlying value, an incredibly microcap valuation and short term, a lot of potential positives ahead of us. So I appreciate all your interest, and I look forward to the questions that you've been asking. If you become large shareholders in the company, I'm happy, I'm shareholder-friendly. I'm happy to begin a conversation with you in the future. And Craig, thank you. I'm looking forward to the next presentation.

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 Karkus, Chairman and CEO. [Operator Instructions] That being said, I will now hand the floor over to Ted.

Okay. Greetings all.

Thank you, Noella. As always, thank you, shareholders and others for joining the call. This is our Q3 ProPhase Labs presentation to review results and what we're going to be doing going forward. 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 I can keep investors up to date. I also want to acknowledge RedChip, who we also hired for Investor Relations. They work in a collaborative effort with Renmark, and I'm really pleased to have RedChip 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. 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. 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 or the potential reverse stock split. Why don't I just clarify a couple of things upfront. 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 is accretive for our 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 somewhat cyclical.

The long-term trend is clearly up if you look at the macro trends 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 #1 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. And let's just leave it at that. I don't want to talk out of line, and 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 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 of 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 Déjà vu because right now, I'm working on exactly the same thing. The only difference is back then, all I had was a Cold-EEZE brand with declining sales looked like it 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 Cold-EEZE 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 the Crown Medical collections. Now everybody knows I was talking about that earlier in the year. And everyone is like, okay, 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 them. 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 is 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 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 1,000 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 message in the first place, we built out 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, there was pay us $125 insurance companies for the balance.

We're talking about many tens of millions of dollars, a significant portion of this $150 million. And for not paying what they were supposed to pay. They already reimbursed the claim. They already acknowledge that the patient was a real patient of theirs. They acknowledge that the doctor's requisition order was proper that we turned around the COVID test properly, et cetera, et cetera. So now if they have no defense and in some cases, Crown Medical may be representing 4 or 5 laboratories in 4 or 5 states going after the same insurance company. And if this insurance company happened to underpay all 5 of these labs in 5 different states, it shows a pattern of fraudulent behavior. No insurance company wants to defend a lawsuit that or more even $1 million just defending a lawsuit they're going to lose. So now Crown comes to them and says, "Hey, we'll give you and I don't know what the exact percentage discount is. We'll give you a 25% discount to settle right now. So they have a choice of taking a 25% discount and paying now or they can spend money on a lawsuit that they're going to lose, spend an enormous amount of money on litigation and then lose the full amount and potentially trouble damages if we can prove fraudulent behavior. So we're in a situation where certainly out of the 1,000 labs -- 1,000 insurance companies, half of them, let's call them the low-hanging fruit. We think that they're going to settle quickly. So the key point of all this was appointing Crown Medical as special counsel, that just happened. So while Crown has been preparing to go after these 1,000 insurance companies and in fact, scrubbed our data clean, they said we had one of the best, if not the best data set of any lab that they're representing. And they said that we had world-class IT that collected our data the right way. So we are pristine and Crown Medical means business. So the bottom line is Crown was approaching the insurance companies before, but their attitude is when you actually get court approval and you're ready to serve litigation, that's when we'll talk. So now the last part of this in bankruptcy court, what's interesting, because in theory, the idea is to get the bankrupt company out of bankruptcy and operating again, they have what's called expedited litigation.

You skip over months of pleadings. You go right to meet and confirm meetings. And if they're not successful, you go right to delivering discovery. So Crown Medical has, I don't know, a stack this thick of discovery items to serve the insurance companies. And we believe the insurance companies are going to start settling right away now that Crown has been appointed special counsel. So that's where we're at today. Yes, has it been frustrating. Did I think it could have happened months ago? Absolutely. This was the hurdle we had to get over, and now things should move quickly. And in fact, we have one small settlement. I'm not going to go into details. It doesn't matter it's a small amount of money, but the point is now that Crown has been appointed special counsel, we believe settlements are going to start happening. It's going to change our financial structure pretty quickly. Now I'm talking about it in a few months. I'm not talking about it in a few days. So we're still going to have to get through the next few months. But after that, once that money starts coming in, if our market cap is anywhere near where it is right now, you can -- and I don't know if I'm allowed to say this or not. So I'll just say, I have a history when we have significant cash and undervalued stock of buying back stock. That's what I did the last time around, the last cycle around. I bought back a ton of stock. I did 2 Dutch auctions where we took out everybody that wanted to sell, and we paid dividends. We could be in a very similar Déjà vu type situation again once the Crown Medical cash flow starts to flow in. We'll pay off debt first, then maybe we'll buy back stock hypothetically, and then we'll be in a very sweet position.

So now we have to put that all into perspective of the fact that I don't know what we have, a $12 million market cap, we're estimating -- Crown is estimating and they're actually telling me they're somewhat conservative. They absolutely believe we're going to collect at least $50 million net. That's net of the $150 million we're going after, giving discounts. They're not going to go after all the claims. Some of them probably aren't clean or whatever. They're going to give big discounts to the insurance companies. They're taking their contingency fees. The last piece of this, Crown is not getting paid a penny. They have dozens of attorneys, dozens of attorneys working on this. None of them get to paid a $0.01, except out of the collections. So they've been working on this all year for free for us. They wouldn't be doing it if we weren't going to collect a lot of money. So that's Crown. So when you look at it from the perspective of -- I'm trying to figure out strategically what to do with our company, I see all this cash coming in. So I am funding the company principally with debt right now. doesn't mean we won't issue some shares. But the goal right now, we have an ATM. I've never used -- I haven't used the ATM. We have a new ATM. We canceled the ELOC months ago, which we announced. And then we signed up for an ATM. We have not used the ATM yet. I can't guarantee I'm not going to, but it's based on stock price based on our cash needs, it's based on debt availability, et cetera. But we have several companies willing to fund us as needed, especially because the ones that do their due diligence into Crown are very confident that cash will be flowing into the company. The other aspect of this is we have 2 or 3 other subsidiaries that are very valuable. So let's get into that a little bit. I think we're going to jump to our BE-Smart esophageal cancer test. That's in our ProPhase Biopharma subsidiary. I'm going to go just straight to this page.

I'm not going to do a long detailed presentation of this. I'm sure most of you have heard this before. The bottom line is esophageal cancer is one of the deadliest cancers. We have what we believe is the best diagnostic test in the world for one of the deadliest cancers. It's that simple. The reason it's one of the deadliest cancers is because it's not diagnosed accurately. We take an inaccurate diagnosis and make it accurate. It's that simple. That's the beauty of it. We are basically enhancing the endoscopy. The standard of care when you're at risk of cancer of esophageal cancer is an endoscopy and endoscopy is where they stick a tube down your throat and remove tissue specimens and study them under a microscope. Two pathologists study the same specimen in the same microscope. One will tell you have esophageal cancer, one will tell you don't. All we're doing is we're taking that specimen, ran into our mass spec machine with the associated AI, et cetera, we have patented the key proteins that are virtually always expressed when you're developing esophageal cancer. So it's a no-brainer. Take one of those specimens. So the interesting, this is such a convenient test and it's critically important to physicians and broad-scale commercialization is the convenience of it. There's nothing more convenient than our test because this is for patients already getting the endoscopy. So the are roughly 67 million endoscopies just in the United States alone, and this is a global problem. This is a growing problem around the world. And so there's 7 million of those endoscopies are just for people at high risk of esophageal cancer. We believe every one of those 7 million endoscopies should add our test on to it. If they did, they will get a significantly more accurate diagnosis. It would make no sense not to. If we get reimbursed hypothetically $1,000 to $2,000, that would make our test a $7 billion to $14 billion target market test. It's that simple. And the last piece of this is we're partnered, ventured with Mayo Clinic.

We own the test. We have Dr. Chris Hartley, and he indicated he wants to get more involved. He's at Mayo Clinic. We have Dr. Joe Abdo, one of the scientists who invented the test. We have James McAuley. He's the CEO of another biotech company with significant experience with commercialization. These are all people working with us now. We have others. And as the cash flow comes in from our Crown Medical initiative, we'll be able to fund this no problem. And we're not talking about a big budget. I'm looking at a small budget. just to develop the test for the next year, get it to a point where a multibillion-dollar cancer testing company wants to take us over or joint venture partner with us. Why build out a huge sales force if someone else already has one and just sort of a plug-and-play plugs in our test. And all of a sudden, it's doing hundreds of millions of dollars a year, and we got a 7% royalty. We get -- I don't know, we got a block of money upfront. We can get a block of money upfront 12 months from now that's 5x the current market cap of our company. So that gives you a little bit about our BE-Smart esophageal cancer test. The key point is we just highlighted a press release in the last week or so. We got into a major journal. The reason the major journal is important is that's where the key opinion leaders in the industry study our clinical study and gave it a thumbs up and said, "Hey, we're all in. This is a great test that should be commercialized. Now that we got their good seal of approval, so to speak, we can now work on commercialization is what's called the laboratory developed test or LDT. FDA decided that they were not going to oversee laboratory developed tests. So we've cleared the FDA hurdle. We're good to go. So I'm really excited about this test. And so let's move on. Our next opportunity would be our Nebula Genomics DNA Complete.

We completely turned the business around. George Church founded it. I'm not going to do a lot on this, except to say that we completely cleaned up the business, led by Jason Karkus. He we shut down the laboratory. We cut out such a large percentage of our expenses in overhead. As I said, we shut down the lab. We have a highly Jason had a highly efficient lab to do our testing now, which makes our business -- it's primarily a direct-to-consumer business now. We went from a lifetime subscription to you buy a 1 year and then you renew it the next year. We found that the conversion rates were virtually identical to the lifetime. And so by selling a 1 year, it means next year, most people renew. That's a subscription. That's a revenue for us that we don't have to pay anything for. We already have the data. We're already doing the reporting. We already have the IT. So the profit margin on the subscriptions that come in, in year 2, the subscription renewals is probably like 95%. So we're roughly a breakeven business now that on a pro forma basis, will be profitable. And now as we clean up our finances, we will be able to grow this business dramatically because we have one of the best reporting systems in the world. We have one of the biggest database in the world to leverage. We tested in over 130 countries, over 60,000 or 70,000 whole genome sequencing. It's the equivalent of 150 million ancestry tests. Our database alone is worth more than the market cap of our company, although we could not sell it by itself for political reasons because you can't sell somebody's data. But of course, somebody could buy the company. But what I want to do right now is build this business. So it gives you a little bit about our businesses. We have a dietary supplement business that we could potentially develop. We'll see. I'm trying to keep our company as clean and mean as possible, as lean as possible, not going too many different directions. I am not looking to go in more directions. Crown Medical, collect a lot of money, pay off our debt, develop our esophageal cancer test, grow our Nebula business.

Our company could be worth 10 or 20x where it's trading right now. That's the opportunity. So with that said, I'll go to the investment highlights. Again, earlier this year, we completely restructured the company. We sold our Pharmaloz manufacturing facility, shut down our Nebula Genomics Laboratory. We dramatically reduced headcount. We significantly reduced IT and related overhead. And we are now working on not just the reverse crypto treasury strategy, but we have another initiative that could be very exciting that recognizes the underlying value of our company. I promise you, if I do a deal like this, I'm going to do this because it's going to make all of us as shareholders a lot of money. Otherwise, there would be no reason to do it. So that's where we're at. I reviewed the Crown Medical collections initiative. I am looking forward to when that cash flow starts. Once that cash flow starts, we're a different company. So if you're worried about the stock price now, we have shorts in there. I think we have a lot of shorts in our stock right now. It's really short and silly. And -- but all that changes as soon as the Crown Medical starts to flow. As I mentioned, we did already get one small check. It's how we're talking about. The point though is we've turned the corner. We've gotten over the last hurdle with the bankruptcy courts. We went through BE-smart DNA complete Nebula Genomics is well positioned. We do have potential with our dietary supplements, but I want the cash flow if we're going to develop that business. And -- so now let's go to -- I have some other things that I want to mention. In fact, we'll get to the questions. But before we get to the questions, I want to mention somebody talked about our working capital deficit.

To be clear, that is an accounting item. When we bankrupted the lab subs, the accounting for those lab subs changed, the assets and liabilities, the timing change between what's current and what's noncurrent. It created this ridiculous amount of negative working capital, obviously, it's ridiculous. We're not losing tens of millions of dollars. So obviously, that was an accounting. It's a balance sheet item. It's not affecting us in real terms. It's just accounting terms for bankrupting some. The other thing I'll mention to you is that the -- a lot of the negatives in the quarter, that's related to amortization and depreciation, stock-based compensation. And for those of you question whether I get stock options and that kind of thing, to be clear, for most of the year, I voluntarily and Jason did too, deferred most of our salary just to help the company. I didn't collect an interest rate on it, all right? I didn't make one loan to the company earlier in the year that somebody questioned me about, to be clear, I borrowed that money to make the loan to the company just so I could get others to invest in the company and make them senior secured to my loan so that they would feel good. I did that to help the company. So people question, oh, you've got a high interest rate on a loan. Number one, I borrowed the money. Number two, I put myself at risk. Number two, three, I did that for the company. And number four, I deferred a significant amount of my salary this year. Nobody is paying me to do that, okay? So I'm doing this all for the company. I'm all in. I hope those that are listening are all in. So I hope that addresses that. I do want to get back one more time about the voting. We may do a reverse stock split. We may have to. But understand our stock price just went from trading at $0.50, $0.60 to $0.25. We have a market cap. I don't even know what the market cap is. It's around -- it's just over like $12 million or something like that. Let's see. Yes, it's some kind of number around $12 million. Where is the stock going if we do a reverse stock split?

What you have to understand is sometimes with reverse stock splits, the stock price actually go up afterwards because the only reason when it's fully discounted before you do the reverse stock split and then all the shorts have to start to cover because there's no reason to be short anymore because the reverse stock split happened. Also, you have to put it in the context of the value of the company. So with companies -- most companies, the reason why the stock prices may go down after the reverse stock split is because they were going down anyway. If a company is going bankrupt and they're going out of business, then sure their stock price is going to go down, they're going to do a reverse. The stock is going to continue down. It going to happen all the time. But real companies like ours that have enormous underlying asset value, they don't have to go down after the reverse stock split. In fact, if we do -- and there's not a guarantee, but if we do a reverse stock split, it's quite possible our stock goes up. I was talking to one large shareholder who's involved in a company in stock symbol OESX. They did a reverse stock split, the stock has done nothing but go up afterwards, even during this correction in the bull market over the last couple of months. Stock has been doing nothing but going up after the reverse stock split. So in our case, we have a market cap of $12 million. Our stock has just been cut in half after filing the proxy. And we now have crossed the hurdle with Crown Medical with the collections. It's now visible. We can now see that the collections are actually going to start to happen. And so after the reverse, understand whatever the number the reverse is, we're going to have the same market value. Your shares are still going to own the same percentage of the company. And if the Crown Medical starts to kick in, if the stock is anywhere near these prices, I'll buy back stock and take it up dramatically higher than where it is now.

So after the reverse stock split, whatever the equivalent is, I'll take the stock up from there with buybacks as enough -- once enough cash comes in and we're paying off our debt, and we have excess cash. And I shouldn't say definitively, I will do that, but it would be a no-brainer to do that if the stock is undervalued. And as I said, I have a history last time around when I did this, I sold the Cold-EEZE brand. I did exactly the same thing. Our stock was $0.65. We sold the Cold-EEZE brand, and I did 2 Dutch auctions, exact same thing. So I don't -- this is days every, I don't mind doing that again. So don't be so scared of a reverse. Now if you want to be scared of a reverse stock split when our stock is $0.75 maybe or $0.80 or $1, is he going to do a reverse or not? Our stock is trading up to $0.30 a share. It's got $12 million market cap. It's silly. So I just want to put it in that perspective. The other thing, critically important, I'm working on strategic deals. Besides the crypto treasury strategy. I'm working on another deal. We have to maintain NASDAQ compliance or the likelihood of doing a deal that's going to attract and increase the value of our company and make our shareholders money. It's going to be difficult to get a deal done if we are NASDAQ compliant. So it'd be silly not to be NASDAQ compliant. I need every person listening to this call to please vote for the proxy. Otherwise, don't own the stock. What's the point of owning the stock and then not voting to help the company do well. That's the point of voting. So please, please, please vote, okay? And I'm sorry, I have to do this, but the voting ends at the end of the week. We're close, but we're not there yet. So every last year makes a difference. I feel like I'm a politician now. All right. That's it on the voting. That's it on talking about the reverse stock split. Let me just see -- why don't I turn it over to questions. Actually, it's exactly 2:30. So that's when I normally turn over to questions anyway. Noelle, please, I hand it off to you. Thank you all for your time.

Thank you very much, Ted, for the presentation. We'll now begin the Q&A. Your first question is, based on your press release, it sounds like you're potentially working on 2 or more different major deals that could increase shareholder value. Can you clarify this?

Yes. So -- and by the way, it's potentially more than 2. We have a reverse crypto strategy. Understand crypto are so volatile right now in crypto treasury stocks that did reverse mergers are somewhat out of favor. There's no hurry to do something like that. As I mentioned, though, if significant cash comes in -- when significant cash comes in from the Crown Medical initiative, we could use that cash. That would be nondilutive if we developed a crypto treasury strategy around that, where we generate income off of the crypto. And I'm telling you there's no question, Bitcoin is going up in the long run. It's not even a question. But I'm not -- I don't need to be a gambler with the company either. And I don't need to do a reverse crypto strategy right now. So we'll see. That was on the table. But with crypto market where it is right now, we'll see. There's potentially a very attractive deal that we can do when crypto was higher. So -- but we'll see. In the meantime, another -- and this is relatively recent, has developed.

I just don't want to talk more about it today, but I will be updating shareholders. If I do that deal, it will be very positive for the shareholders, all right? And so we'll see where it goes. I don't want to get out of line and say too much too soon. There's no guarantee I'm going to do the deal, but it's certainly interesting. It's something we're pursuing. Number three, now that we were published in the journal for our BE-Smart esophageal cancer test, our scientists are being approached by a variety of companies, cancer testing companies and others that want to either get involved, joint venture, acquire, whatever, right? So we have that going on. So we have that going on with the subsidiary, and then I have the deals I just described going on with the whole company. So there's a lot of potential there. I'm going to do what's best for the shareholders. Even though I got diluted with everybody else, I'm still a large shareholder, I care about the value of our shares ultimately. Thanks for the question. What's the next one?

Thank you, Ted. Next, if you were asked, it looks like you may do a reverse stock split. If you do it, is it possible that the stock price will go up or down?

Exactly. So if the stock price was a lot higher right now, could it have a little risk? I guess it would still be undervalued, even it was double, right? But with where the stock price is, what's the downside? What is it going to do? It's going to go from a $12 million cap to $11 million market cap. And then the Crown Medical $20 million is going to come in, and I'm going to buy back half the shares outstanding in the company and my stock will be twice or 3x where it's trading on a split-adjusted basis. This is all silly. A reverse stock split in and of itself is not something to be scared of. What's more to be scared of is if we weren't NASDAQ compliant. We have a lot of value in the fact that we're a NASDAQ company.

I want to stay a NASDAQ company, and we'll see what happens. Earlier in the year, if Crown Medical had kicked in earlier in the year, my guess is we might not have had to do the reverse. We might be trading around $1 an hour more. It's quite possible or probable. That didn't play out that way. But having said that, even at $1, we might have done a reverse. When we're talking about the reverse -- I'm sorry, the crypto treasury strategy, they were thinking that they wanted a higher stock price and they might want us to do a reverse anyway even if we didn't need to. So I don't want to go more into it than that, but stock prices sometimes go up after the reverses. I gave you one example of that. I like to think ours would be one of them. If nothing else, all the shorts out there, they would probably be running for the hills afterwards when they see there's nobody left to sell or the market cap is so low. Again, that's not a guarantee. I don't know what's going to happen. I can just tell you the reverse stock split in and of itself. Your percentage of share ownership doesn't change. The market value of the company at that moment doesn't change and the upside from here for our market value is incredible.

Thank you for the clarity, Ted. The next question is, from the recently released financial earnings reports and statements, I see that M&A discussions unrelated to the crypto treasury strategy are being explored. Does this mean the crypto treasury strategy remains part of the company's strategic vision going forward?

Sure. So I think I just answered to all of those questions. I don't think we need to spend too much time on that. Again, everything is possible. I only want to do something that's accretive for the shareholders. That's the goal. And I happen to have another deal that could be very accretive for the current shareholders. I think everybody would very -- I just don't like talking too much about it because it's premature. So -- but I just want you to know, though, we have to be NASDAQ compliant. That's why everybody has to vote. All right.

Thank you. Your next question is, 4000 in the TIL unable to use shares for cash, how do you plan to pay employees and Board going forward?

Sure. So the amount of cash we have on hand right now is about the same amount of cash we've had on hand every month and every quarter all year long. I have multiple investors, large investors that want to support us with various types of funding options. We did a $3.8 million debt deal once before. We can always take on more debt. There -- we definitely have a number of options out there, people that want -- there are definitely large investors out there that see the underlying value. And I will use all potential financing strategies to support our company, whether it's debt or equity or combination or what have you. But we're in really good shape from the point of view that we have such a strong underlying asset value. So financing until the Crown Medical comes in, that's not the issue. The issue is what form we take debt or equity, what the terms are, et cetera, et cetera, et cetera.

Next, we have...

Let me just add to that. Whatever we do right now, once the Crown Medical comes in, even if we hypothetically issued shares, my goal would be to buy back all the shares. The stock price anywhere near stock price, I'll buy back. I wouldn't be afraid to buy back 10% or 20% or 30% or 50% of the shares outstanding in the entire company. And I really do think that way. If our stock is undervalued and the cash is coming in, so that all gets fixed as the cash comes in. And that's separate from the fact that, as I said, our BE-Smart esophageal cancer test could be worth 10x our market cap 12 months from now, literally or less, 9 months, 9, 12 months from now, just our esophageal cancer test alone could be worth 10x the current market cap of our company. Think of that as a concept. You got Lucid as $125 million, $150 million market cap. They're tested. If you test positive on their test, you then have to -- the next step is to go get an endoscopy. So they're not even competition. It's kind of like I compare to COVID testing where you get the rapid antigen test. If you test positive on the rapid antigen test, the next step is to go get the higher, more accurate reading from the PCR test. Well, this is the same kind of thing. On their test, the next step is get an endoscopy, we make the endoscopy diagnosis significantly more accurate. So -- and they have a market cap. We should be -- once we commercialize, we should have a significantly greater market cap than they do. And again, just if we achieved their market cap, it would be more than 10x the current value of our company. Thank you.

Thank you, Ted. Next, he was asking, how are you going to prevent delisting from stock exchange without a reverse stock split? What needs to happen to get the price above $1 for a month?

Sure. So first of all, it doesn't have to be above for a month. It's for 10 trading days. Number two, this deal I'm working on, quite frankly, I could take the stock over $1 very, very quickly. And number three, but I'd like to have my back pocket if we need it doing the reverse stock split, which is why you have to vote. And number four, we need to vote because I need to give the other companies and bankers that I'm working with confidence that we will remain on NASDAQ can be NASDAQ compliant. So we need to vote for that. Even if we don't do a reverse stock split, we need to show that we have the votes to do a reverse stock split if necessary. Otherwise, that could derail some of these potential deals that could be great. So again, I don't know how to emphasize this strongly enough because I don't know the random people out there that own stock. But because if it's in a brokerage name, we don't get those lists or if we get the list, we don't get the contact information or you have to vote your shares. And so please do it through the brokerage firms. They typically will send you an e-mail or you just go online and you can vote very easily, right? Thank you.

Thank you, Ted. Your next question is, when will pro fees go up, stay up? And what might be the ceiling?

I think I've answered that question so many times. People are going to be upset with me if I answer it again.

No problem...

I think the ceiling is the company could be worth 10x where it's trading today in 18 months, okay? And that's not the ceiling. That's -- I was thinking about this because I was thinking about it for myself with all the shares that were issued in the last year and how I got diluted. And I was just thinking our esophageal cancer test in 3 or 4 years should be -- it should be worth $1 billion. So easily, that means that this could be like a $20 even with a little more dilution, even if we have 50 million shares outstanding. $1 billion means we have a $20 stock price. We currently have a $0.26 stock price, $0.27. I don't know where the stock is trading today. All right? Could you imagine that we're trading under $0.30, and we could be at $20. And understand if we do a reverse stock split, the ratio of where we are, that potential percentage, it would still be the same. We do a reverse stock split, it doesn't change. The market cap, the value of it will still go up by a multiple of 20 if we go to $1 billion market cap one day. Now that may sound like a pipe dream today. But by the same token, once before, when I took over, I turned around a company that was $0.65 and went over $10 a share. It actually went over $13 a share. So actually, that went up 20x. So don't think that I can't do the same thing with the company that we have now, especially since the underlying assets of our company are much more valuable now than they were before.

Thank you for the clarity on that, Ted. The next question is, what is the accurate share count/market cap of the company presently?

Sure. So you have to go by the reported numbers. It's -- I believe there are 46.1 million shares outstanding that's reported. I don't know what the stock price is today. So at $0.25 to $0.30, we're talking about around a $12 million market cap.

Thank you, Ted. Next, [indiscernible] is asking, the share price keeps slipping despite shareholders' patience. When will management take decisive action to protect and grow shareholder value? And how do you plan to address the ongoing decline?

So I think I've already answered that question at nauseam. And look, at the end of the day, I don't control the stock price. I think shorts are having fun with it right now. I think it's selling any portfolio manager out there that likes to invest in penny stocks. I don't see how they don't buy the stock right now. And having said that, the bottom line is you just have to be patient until cash flow starts coming in from Crown medical initiative or we partner on our BE-Smart esophageal cancer test or we do a strategic initiative and M&A type transaction, whether that's a reverse merger or similar that brings out the value in our company. Any of those things would drive our stock price significantly higher, in my opinion.

Thank you for that response. Next question. When will the company stop mentioning the possibility of collecting $25 million in accounts receivables?

I think that's a question out of frustration. We did not anticipate it would take that long to bankrupt the lab sub and get going. But now we've done it. We crossed that hurdle. So however long it took, it took. But now we're in expedited litigation going forward. Crown is skipping cleanings. They're going right to meet and confers. They already have hundreds of insurance companies lined up. They're going right into meeting confers right now. And now all of a sudden, it's like a hockey stick. We're going to start seeing some settlements. In a couple of months, I don't know the exact time frame, and then it's going to go like a hockey stick, I believe. It's just going to ramp up. We're going to have significant cash flow. We're going to be a different company once that happens. You want to wait for that to happen, you can wait for that to happen, but maybe the stock is double or triple where it is now once you see the visibility of that happening. I mean where we don't have downside here, it's kind of silly. I hope that answered your question.

Thank you for that response, Ted. Next question. Given the need for capital to fund BE-Smart, is it realistic to use a go-it-alone strategy with regards to BE-Smart? Does it make sense to consider partnering the asset?

That's a good question. So my thought is as some cash flow comes in from Crown, I don't ever want to be in this financial position again. It's not fun. Honestly, it's been the worst year of my life in terms of managing a company with the financial pressure I've been under, with the pressure the stock price has been under. So I have no intention of ever being in that type of situation. Again, I'm not going to spend a lot of money developing our esophageal cancer test. The idea is to kick it off the ground to sort of a grassroots. I told you we have some world-class scientists and commercialization experts that we're working with. We're going to get more key opinion leaders involved. We're going to get physician networks to sign up like if we find one decent-sized physician network, we'll get them taking -- using our test with the great results they're going to get. It then will spread like a hockey stick as it spreads like a hockey stick, then the goal would be the joint venture. Look, I might be able to joint venture now. I don't know what they pay us. They might give us $25 million or $50 million of cash plus a royalty. It wouldn't be so bad. By the same token, they might give us a couple of hundred million dollars and a bigger royalty if I wait 12 months. So we'll see. But there is interest now. I think that the interest is going to -- as we start penetrating the market even a little bit, all these other cancer testing companies that have an esophageal cancer test or are developing one are going to be very nervous. In fact, to be honest with you, I already know they're getting nervous because the day we published in the journal, that very day, one of them contacted us and said, "Hey, let's talk. So we'll see where it all goes. No guarantees that I'm going to do anything short term. I don't think it's necessary. But by the same token, I'm not going to break the bank and spend a lot of money to develop this right now. It's just not necessary.

Thank you for that response. Next question. Do you anticipate that the recent weakness in virtual currencies provides an opportunity to the company's strategic initiatives, given you have not yet purchased a significant amount of virtual currencies?

Yes. So obviously, you're talking about the crypto currencies. But if we're not going to do a deal, so we were talking -- we've been talking to crypto asset managers where we would do sort of -- well, I don't want to go into details on it. If we don't do a deal like that, but instead, we were just going to invest long term with the crypto treasury strategy, we have to wait until the Crown Medical collections come in, and I would want to pay off debt first, get the company financially sound and then with excess capital, maybe put together a long-term strategy. But there's a lot to go before we would -- there's a lot to be done before we would go it alone with that type of strategy. But for now, is it possible? Yes, it's always possible. But right now, also the markets aren't excited. If you're not the #1 leader in a particular crypto, then you're struggling. So for instance -- and even the ones that are the leaders are struggling from the point of view that when the crypto goes down in price, the stock price is going down. But in terms of a multiple to net asset value, if you go back at the beginning of the year, they were trading at 2 or 3x net asset value. Now they're trading at net asset value. And if you're not one of the leaders, you're often trading at a discount to net asset value. So again, I pay attention to that. I'm not going to do a deal just for the sake of doing a deal. There's no reason. We have so much underlying value in our company, and we have so much potential that we can also go it alone. So -- or we can do a different type of deal that's not a crypto-related deal. That's what I was trying to explain in my press release. It's not that we might not do a crypto-related deal, but that's not our #1 focus right now. We have better opportunities out there, we believe. It doesn't mean that, that can't change in the future, but we believe we have better opportunities right now.

Thank you for clarifying that, Ted. Your next question is, any update with respect to Linebacker? Is there any potential value or future updates with regards to Linebacker expected?

Well, that's an interesting question. That we have not been doing much with Linebacker. Again, I'm not looking to break the bank on something that is so early stage that in very early studies has potential that was exciting to me, but that's very different from something that's a late stage ready to be commercialized. So I don't want to say more about that. I'm surprised somebody even asked that question. But let's just leave it at that on that topic for now.

Thank you for response from Ted. Your next question is, has there been any insider stock purchases this year?

Has there been an insider? I don't know. That would probably have to be filed, obviously, and by insiders, the one person that's really an insider is me and the directors and quite frankly, I deferred a lot of my compensation. It didn't put me in a great financial position to also be buying stock. And in fact, I loan money to the company. So that was my way of supporting the company. And as far as the directors are concerned, sort of the same thing. They're actually rather than taking cash compensation, they primarily -- and I don't want to speak on a turn know the exact numbers, but they took a lot of stock compensation or stock option compensation in lieu of some of their cash compensation. I think that's putting their best foot forward and also showing support to the company and belief in the company.

Thank you, Ted, for that response. Your next question is, how many DNA test kits have been -- have you processed so far in 2025?

I don't know that number off the top of my head. I'm not going to look that up now. But what I will tell you is since we've been on a tight budget, without us virtually doing any advertising at all, we have such a strong SEO presence that's called search engine optimization. It's -- we've been in the business 8 years. We did this the right way. We did a lot of great marketing. But we're -- frankly, right now, we're on a very tight budget, and I don't want to dilute shareholders unnecessarily to grow a business. So I'm sort of laying low until we get more capital in, but with virtually no advertising, we're still selling the product. We're selling the product. And the beauty is it's on a pro forma basis, actually profitable now. We've restructured it that much, and we made it that clean. It's a great business. for us to grow as soon as we get a little excess cap. I want excess capital to really grow that business. So like in a few months, I think we're really going to start growing that business in a nice way.

Thank you, Ted, for shedding some light on that. And I think we have time for one more question here. So the question is, what do you think is the disconnect between the market's valuation of the company and the underlying assets? You referenced the value of the underlying assets and the disconnect. But what do you think specifically is the main cause of this disconnect?

That's excellent. I was going to say I hope it's a good question. That's an excellent question. That's not a snowball question either, but it's a really good one. I believe the disconnect is because we're tight on cash. And so every time I go to potential investors, quite frankly, there are a lot of sleezy people in the investment world, and it's really disappointing. But if I talk to 3 potential investors, one of them is going to short the stock and then make me an offer a week later. Everybody knows that we're tight on cash. We've been tied on cash all a year. That all changes and we're frankly -- so we're a development stage company tight on cash. It makes us an easy short target, especially if we go to investors and some of them want to full around the stock price. That will change as soon as the Crown Medical starts flowing. That plus our stock price has been under $1. So the stock has just been under pressure. But you've got to understand, are you a trader or are you investor? If you're an investor, look at the underlying value, even if there was a little more dilution, so what our market cap is so low that once the Crown Medical starts to flow in or even without the Crown Medical, if I do a deal for our BE-Smart esophageal cancer dose, we'll get a block of cash upfront. I'll probably start buying back stock immediately. Our stock would explode on that if I do a deal like that. And separately, I'm working on a potential deal right now. But again, it's preliminary. I don't want to talk about it more. but that disconnect will start to go away. The fact that there's a disconnect creates an opportunity for potential M&A strategists and bankers who recognize that underlying value and that disconnect. So it actually creates an opportunity. And because it creates an opportunity, that's why we're getting inquiries, both not only to me, but the scientists at BE-Smart esophageal cancer tests, et cetera.

Excellent. Thank you very much, Ted, for all of your responses today. That concludes the Q&A session. Before we go, I will turn back the floor to Ted for final remarks.

Noelle, thanks so much. Again, thank you, Renmark, for hosting. Thank you to the shareholders. I know we said it 6 times today. I feel like a politician today. If you're a shareholder in the company, if you're an investor in the company and you don't vote the shares, then don't complain to me. If we have an issue because you didn't vote your shares. So vote your shares, all right? So that we have the flexibility to do what we need to do if we need to do it. It's not just the flexibility for a reverse stock split. It's also based on potential deals we're working on, the bankers are going to want to see that there isn't a risk that we're always going to be NASDAQ compliant. It's possible we do a big deal and the stock price will go over $1 anyway.

But whatever I'm working on, we need you to vote the proxy in order to pass. We wouldn't have put the proxy out there if we didn't need to. There's no guarantee we're going to. We're not going to do a reverse stock split. But even if we do, there quite frankly, I think there's a good probability that our stock price goes up after we do the reverse. It doesn't necessarily have to go down. And it's not a bad thing. guarantees, knock on wood, they remain NASDAQ compliant, being NASDAQ compliant is a value to the company. look, we got delisted, it's not going to change the value of the company. It's not going to change the value of what we're doing. And then when we go back above $1, we do a deal, we'll go back on NASDAQ again. But why go through all that. And at the same time, I'm working on some deals that -- some things that could be very, very exciting for the company where all the shareholders make a lot of money. So it's silly not to vote. I can't stress that strongly enough. Beyond that, I appreciate everybody joining the call and listening to me today. Everything I say is from the heart. It's from living and breathing our company 24/7. I am a fighter. I did this once before. a dozen years ago with the very same company when I inherited it. When I say inherited, I did this -- I won a proxy contest, 2 years of litigation. So it was a serious fight just to control of the company and find out I was control of a company that was virtually going bankrupt, turned it around. It took a number of years. So I've done it before. I can do it again. I'm going to do it again. And we're in a similar position. But again, the assets in the company are multiples of what they were the last time I did it. So I'm going to do this. And if you guys are patient with me, I think that I can -- I and our company, and not just me, it's Jason. he built the COVID testing business into a multi-hundred million dollar business. He's now cleaned up the Nebula Genomics business. And we have these great businesses. And so I'm just looking forward to the future. I don't have more to say than that. Everybody, have a great day. Thanks for all your questions. Thanks for listening to the hour.

Sorry I cut you off there. All right. Well, thank you, everyone, for joining us today for the ProPhase Labs Third Quarter 2025 results. ProPhase is trading on the NASDAQ under the ticker symbol PRPH. The playback will be available on our website 24 to 48 hours after this presentation under the VNDR Live View tab. Stay tuned for the next quarterly call and see you next time.