ProPhase Labs, Inc. reported significant declines in revenue and increased losses for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues for Q3 2024 were $3.1 million, down from $8.4 million in Q3 2023, while revenues for the nine months ended September 30, 2024, totaled $9.3 million, a decrease from $40.9 million in the prior year. The decline was attributed to a $2.5 million drop in diagnostic services and a $2.7 million decrease in consumer products, with diagnostic testing volumes falling to zero due to reduced demand for COVID-19 testing.
The company reported a gross loss of $0.2 million for Q3 2024, compared to a gross profit of $2.3 million in Q3 2023. For the nine-month period, ProPhase Labs experienced a gross margin loss of $1.1 million, down from a gross profit of $19.3 million in the same period last year. The overall gross margin for the nine months ended September 30, 2024, was (11.6)%, a significant decline from 47.2% in 2023.
Operating losses also increased, with a loss from operations of $7.9 million for Q3 2024, compared to $6.5 million in Q3 2023. For the nine months, the loss from operations was $24.1 million, up from $10.3 million in the previous year. The net loss for Q3 2024 was $6.6 million, or $(0.35) per share, compared to a net loss of $5.1 million, or $(0.30) per share, in Q3 2023. The nine-month net loss was $19.0 million, or $(1.02) per share, compared to $8.0 million, or $(0.47) per share, in the same period of 2023.
ProPhase Labs' total assets as of September 30, 2024, were $91.8 million, slightly down from $91.9 million at the end of 2023. Current liabilities increased to $28.7 million from $20.9 million, driven by higher accounts payable and unsecured promissory notes. The company’s cash and cash equivalents decreased to $0.5 million from $1.6 million at the end of 2023.
Strategically, ProPhase Labs has shifted focus away from diagnostic testing services due to decreased demand and reimbursement rates, although it remains prepared to resume these services if necessary. The company has also been active in acquisitions, including the exclusive rights to the BE-Smart Esophageal Pre-Cancer Diagnostic Screening test in January 2023. Additionally, ProPhase Labs formed a new subsidiary, DNA Complete, Inc., in September 2024, focusing on whole genome sequencing services.
The company continues to seek additional capital for operations and is exploring acquisition opportunities within and outside the consumer products industry.
About ProPhase Labs, Inc.
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