ProPhase Labs Updates on Crown Medical Collections Progress

ProPhase Labs provided a business update regarding its Crown Medical Collections initiative and related strategic activities. The Company reported that its Crown Medical Collections effort continues to advance, with engagement now underway with more than 250 insurance payors. Of these matters, approximately 100 are currently in active settlement discussions, with a number of cases progressing into more advanced stages of negotiation. Based on the level of engagement and progression of discussions, the Company believes current activity is trending in line with its previously communicated recovery framework and internal estimates, and is encouraged by the ongoing development of these discussions. In parallel, the Company is engaged in discussions with institutional capital providers regarding potential financing alternatives, including structures that are expected to be secured by the Company's receivables platform, without recourse to the parent company. These discussions follow extensive third-party diligence conducted on the receivables and related recovery processes. While no assurances can be given that any transaction will be completed, the Company believes the level of diligence completed and the nature of these discussions reflect growing external validation of the underlying asset and may enhance its financial flexibility. Management continues to focus on stabilizing near term liquidity, managing liabilities and vendor relationships, and preserving and advancing key assets, including Nebula Genomics/DNA Complete and the BE-Smart esophageal cancer diagnostic. The Company believes it is beginning to see tangible indicators of progress driven by advancing settlement activity and continued strategic engagement, with current developments tracking in line with Crown Medical's prior guidance to the Company. ProPhase Labs remains focused on execution and expects to provide additional updates in the near future as developments occur.