The filing confirms an acute liquidity crisis with near-zero cash runway and a massive structural deficit. Watch for any new debt or equity financing announcements, which would be highly dilutive given the sub-$0.10 stock price, or potential Chapter 11 filing. The Q2 2026 10-Q filing will be critical to see if cash burn has been stemmed or if a restructuring becomes inevitable.
Price Chart
Executive Summary
ProPhase Labs filed Amendment No. 1 to its Q1 2026 10-Q solely to update the auditor review status, confirming the independent registered public accounting firm had not finalized its review of the interim financial statements before the original June 30, 2026 filing. The underlying financials are unchanged: revenue collapsed 67% YoY to $0.5M, net loss from continuing operations widened to $5.4M, and the company explicitly discloses substantial doubt about its ability to continue as a going concern with only $31K in cash and a $53M working capital deficit.
Key Facts
- Revenue fell 67% YoY to $0.5M (from $1.4M) for the three months ended March 31, 2026
- Net loss from continuing operations was $5.4M vs $4.7M loss in prior year; EPS was $(0.43)
- Cash and cash equivalents were just $31,000 as of March 31, 2026 vs $90,000 at Dec 31, 2025
- Working capital deficit of $53.0M; total liabilities of $59.3M exceeded total assets of $58.7M
- Stockholders' equity turned negative at ($614,000) vs $3.5M positive equity three months prior
- Explicit going-concern warning: 'Management's plans do not alleviate this substantial doubt'
- Total debt net of discounts was approximately $5.4M; derivative liability surged from $50K to $490K
- Amendment relates only to delayed auditor review; no restatement or change to previously reported financials
Financial Impact
Revenue decline of $953K (67% YoY); net loss of $5.4M with negative equity of ($614K); cash burn continuing at ~$250K/month; $53M working capital deficit
Risk Factors
- Imminent going-concern risk; companies with $31K cash and $53M working capital deficit rarely survive without emergency financing or restructuring
- Massive dilution risk: 12.5M anti-dilutive securities (warrants/options/convertibles) would dwarf current 14M share count if converted/exercised
- Nasdaq delisting risk already realized (trades OTC); further access to capital markets severely impaired
- Pending litigation (Turnpoint arbitration, False Claims Act qui tam) and Chapter 11 bankruptcy of diagnostic subsidiaries create additional liability overhang
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0001493152-26-032269 |
| Exhibit: ex31-1.htm | 0001493152-26-032269 |
| Exhibit: ex32-1.htm | 0001493152-26-032269 |
| Document: 0001493152-26-032269-index-headers.html | 0001493152-26-032269 |
| Document: 0001493152-26-032269-index.html | 0001493152-26-032269 |
| Document: 0001493152-26-032269.txt | 0001493152-26-032269 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | SC 13G | $0.3626 | awaiting T+20 | — | $0.010000 (−97.24%) |
Aug 6, 2026 11w ago | 8-K | $0.3626 $0.3626 | · 0.00% | ▼ −0.40% | $0.010000 (+97.24%) |
Jul 9, 2026 15w ago | 10-Q/A | $0.0800 $0.0400 | ▲ +50.00% | ▲ +52.24% | $0.010000 (+87.50%) |
Jul 7, 2026 15w ago | 10-Q/A | $0.0900 $0.0480 | ▲ +46.67% | ▲ +49.83% | $0.010000 (+88.89%) |
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