ProPhase Labs anticipates multiple liquidity events in 1H25

ProPhase Labs announced significant progress across several key projects. Pharmaloz Manufacturing: In Q3, the Company engaged ThinkEquity as an advisor to pursue strategic alternatives for PMI. ThinkEquity has now identified more than 70 potential acquirers for PMI, with a goal of negotiating and finalizing terms and closing in Q1 2025. PMI production is fully booked through Q1 2025, with expected 2025 revenue of approximately $16-17 million and pre-tax earnings of approximately $6-7 million. PMI begins production for a new non-seasonal client in January 2025, securing year-round business. PMI is in final stages of discussion with a global lozenge brand on a multi-year contract, which if consummated would include a substantial upfront payment to secure new production capacity and further strengthen PMI’s valuation in any potential sale. BE-Smart Esophageal Cancer Test: Strategic discussions initiated with multi-billion dollar cancer diagnostic companies in coordination with Forward Healthcare Consultants. FHC previously served as leaders for companies such as Eurofins, Guardant Health, Inivata, and Natera. The advisors at FHC have helped their former companies gain market access to achieve market capitalization in the billions of dollars. A multi-phase commercialization plan has been completed, with a comprehensive report ready for potential partners. Liquidity Events and Financial Outlook: The sale of PMI is targeted for early 2025 with a projected value exceeding $40 million. A partnership for our BE-Smart Esophageal Cancer Test could yield a potential upfront payment to us of $30-50 million, with additional milestones and long-term royalty payments upon approval and commercialization. Receivables collection efforts are anticipated to generate $20-25 million over the next six months.