ProPhase Labs (NASDAQ:PRPH) released their financial numbers for the first three months of this year and provided a business update to shareholders.
As quoted in the press release:
We continue to own and operate our manufacturing facility and manufacturing business in Lebanon, Pennsylvania, and our headquarters in Doylestown, Pennsylvania. As part of the sale of the Cold-EEZE® Business, we entered into a manufacturing agreement to supply various Cold-EEZE® lozenge products to Mylan. In addition, we produce over-the-counter drug and dietary supplement lozenges and other products for other third party customers. We are also pursuing a series of new product development and pre-commercialization initiatives in the dietary supplement category.
Net sales from continuing operations were $771,000 for the three months ended March 31, 2017, as compared to net sales of $1.0 million for the three months ended March 31, 2016. In addition, the loss from continuing operations before income taxes was $1.2 million for the three months ended March 31, 2017, as compared to $1.3 million for the three months ended March 31, 2016.
As a consequence of the sale of the Cold-EEZE® Business, the Company realized a gain, net of income tax, of $26.3 million for the three months ended March 31, 2017. The gain on the sale of the Cold-EEZE® Business is classified as a component of our discontinued operations at March 31, 2017 and is net of approximately $19.5 million for estimated income taxes arising from the sale. For the three months ended March 31, 2017, the Company also realized an income tax benefit from continuing operations of $18.1 million as a consequence of the utilization of the federal and state net operating losses.