ProPhase Labs says CEO voluntarily agrees to defer salary by over two thirds

In January 2025, the Company completed the divestiture of its Pharmaloz manufacturing operations for approximately $23 million, saving over $2 million per year. In February 2025, the Company shut down its genomics laboratory, saving over $6 million per year. In March, the Company was able to significantly reduce IT services further reducing costs. Employee headcount has been reduced from 96 employees in December 2024 to 25 full-time employees currently. The Company’s senior management and directors have a high degree of confidence in the upcoming liquidity events. Therefore, Ted Karkus, CEO, voluntarily agreed to defer his salary by more than two thirds and other senior management and the Board of Directors have also voluntarily agreed to defer their salary by 50% until one or more liquidity events occur. This decreases the need for dilutive financing and even better aligns management and directors with all shareholders.