Q2 2025 ProPhase Labs Inc Earnings Call

We want to thank everyone for joining us today for Prophase Labs second quarter 2025 results Prophase was trading on the NASDAQ under the ticker symbol P. R. P. H presenting today is Ted carcass, chairman and CEO, but that being said I will now handle for over to Ted.

Really excited about everything going on with our company and.

Looking forward to updating everybody Tonight.

Assume that you are all Brandon B forward looking statements. This presentation by the way is on our website.

After this call you can go to the website anytime read it yourself of course read the forward looking statements.

Which basically says everything I say today as true as of today I speak from the heart I speak for my I don't type out now it's like most Ceos and just read off a piece of paper I talk about the company I live and breathe every day, but everything I say is accurate as of today. It doesn't mean that things don't change in the future is no guarantee that you won't get updated if things do change and future that's primarily with forward look.

Some statements that but I'll assume that you have read it.

Let's move on to the next slide these are the basic components of the company. Today now this is a quarterly press release as opposed to our typical rent Mark presentations. This is really a combination of the two so it's really a combination of potential new investors as well as people that are interested in just a quarterly update I concur.

Less about our earnings right now that's not the focus of the company and focus the company is we're a development stage company with some operating businesses that are operating but also we have other business with enormous potential that are ready to kick in and go into next next steps.

We have be smart ongoing prophase labs.

A form of be smart that sort of esophageal cancer test.

We have DNA completing nebula genomics as where we do a whole genome sequencing primarily directly to consumers. We are prophage supplements and we have two other things actually recent update that slide this interesting unless it's not in the picture but.

This is a critical component of our company as the Prophase has entered into an initiative with crown medical collections targeting over $50 million and net near term cash recovery from COVID-19 receivables that $50 million given the market cap of our company today of $50 million comes out of the company that's more than three times the entire market cap of the company I'm highly confident in that.

So and that's why I actually put that as the first bullet point when you look at the Prophase labs quote vertical there may be another vertical coming our crypto Treasury strategy initiative, and I will get into that I'll get into that at the end of the presentation, it's not actually a slide.

In our presentation today, but it wouldn't surprise me if it will be in the near future, but with that and by the way I'm going to touch on the crypto Treasury strategy. Today. There are a couple of important bullet point I really wanted to cover.

But then next week, we may have a separate press release and.

I'll have a follow up the enduring two weeks, specifically primarily focused on the crypto treasury strategy. It could be an enormous new opportunity for the company. So with that said I'm not going to go too much into this slide most of you have seen this before I do have a history of success and it's not just since I took over control of our company. This goes back to <unk>.

40 years of success I best we're nine months that have not been fine where the stock price crashed we suffered dilution all those things that I've never done in my entire career that we had to suffer through but now we're coming out the other end of that I like to think of ourselves at at our current stock price around 35, so it's not that different than when I took over control turned around the company.

Back in the day when our stock price was 65 cents I turned around the company sold the cold These brand for $50 million debt stock buybacks and paid out $2.40 of special dividends and then got uncovered testing or anything with Covid testing, we did $100 million of your revenues now isn't it interesting we have a 35 cent stock price same CEO.

Same mentality, we're potentially going to this time instead of selling called these are $50 million, we may come in to $50 million from crowd medical initiatives for our prior Covid testing.

And just like the opportunities and we then got into with Covid testing, we've never been in Covid testing before never been in our lab business before and then we proceeded to outperform 95% of the labs in the country. While at the same thing with the crypto Treasury strategy. What's the most important components to have a CEO that smart in the can execute it and that it can attract.

People and so now we have the potential to enter the crypto Treasury strategy.

And if we have even 50% of the success of what we had with the Covid testing.

And given the competition I don't really consider them competition, but the upside could be absolutely enormous.

So I'm going to get into that towards the end of the presentation, but that's sort of an overview lets first start okay with crown medical so what's going on with Crown medical I'll try and get those of you that don't know up to date with those of you that are completely up to date, well nobody's completely up to date, but the bottom line is we have 1100 insurance companies.

That we're reimbursing us for Covid testing the government guaranteed reimbursement when we did the COVID-19 testing the government ran out of money interestingly behind the scenes for government through their subsidiary Hertha H, RSA, which ran out of money interestingly. Her. So was also funding some of the insurance companies.

And so when Hersey ran out of the money insurance companies also started cutting back even though legally they werent allowed two so we got into a situation where legally the insurance companies or an enormous amount of money.

And so what we're doing is we're about to Sue 1100 insurance companies, we're doing it through a company called Crown medical collections. They have a couple of dozen attorneys all working on contingency we are not paying them a single parish they've done enormous amount of work in the past several months and enormous amount of analysis you should see.

The analysis that I have a spreadsheet of literally like 1100 insurance companies how much billing we did what we got paid what we didn't get paid a critically important component of this is that insurance companies in many instances reimbursed us, but it reimburses at a lower rate than they were legally supposed to.

As a general business practice, many insurance companies did this they know that they could do this because they could get away with it because what were the laboratory is going to do all.

All the most or all of the laboratories and country just accepted what they got paid and figure what are you going to do it as a cost of doing business at least we're getting something we're getting more than what it costs us a process of tests and so every insurance company was paying differently and we just had to put up a at the bottom line is if the insurance company reimbursed us, but they reimburse us for less than that.

We're legally supposed to reimburse us that means they've underpaid us they do not have a defense.

So what we are doing is we are bankrupt in the lab subsidiaries that are not doing any business now anyway doesn't cost us anything to bankrupt them. We are awaiting a court date with the judge I anticipate that court date is going don't count on this I don't anticipate that court date.

Is going to take place in roughly four to eight weeks at which point Crown Medical goes Hog-wild base start reaching out and say we're now in bankruptcy Court. We're now serving you with litigation up to this point Crown already reached out to probably 100 of the 1100 insurance companies, but a lot of them there.

Sponsors.

When you actually get the court date in bankruptcy Court and you asked me about the service. That's why we will sit down and talk seriously with you know the other part of this is the.

The amount of underpayment. So in many cases it was underpayment Theres no defense so.

Go up at a slight tangent here crown is not only represented us they represented about 40 other laboratories.

In many instances in most instances. These other laboratories are suing the same insurance companies and they may be in multiple different states. So imagine being in court in front of a judge suing an insurance company there.

They're representing five different lab. So in the same insurance company. The same insurance company did the same unethical underpayment practices with five laps it shows.

A history of and a pattern of behavior that at a minimum is unethical.

The insurance companies don't want the exposure they don't want the press the politics involved plus they owe the money.

So they settle and so what crown also did when they took all of our claims.

They discounted them for how much they know theyre going to have to discount when when you're litigating with somebody and you settle out of court, you're always settle for less so they figured out what the percentages that theyre going to have the discount they took that out of our gross total came up with a net amount that net amount is roughly $73 million.

They take out a 30% contingency fee, we get the rest.

Roughly $50 million cash I'd.

I'd be happy I don't want to say a number I'd be happy with a lot less but understand even the lot less I'd be happy with would still probably be a multiple of the entire market cap of our entire company.

That's why I had to spend the first 10 minutes just on Crown medical the other thing is once this money starts to come in.

We can be done with that and our company one of the biggest expenses of our company in the last year has been the interest expense on the debt. If we were debt free company. The biggest expense of the company would be got it.

We have done a phenomenal job and I'll get into this when I talk about nebula and this is really adjacent carcass President Nebula did this he cut out an enormous amount of expenses and overhead I'll get into that when we talk about <unk>. We are much leaner cleaner company now if we get rid of that.

We barely need any capital law. Meanwhile, we have potentially $50 million of cash coming in from Crown.

That's just one of the opportunities with our company in terms of risk reward as investment in our company and just one of the things that I'm excited about all right, let's move on Prophage Biopharma led by our esophageal cancer test. So we just came out with news that we were awarded a very important patents why is this.

Patents are important our scientists.

Uncovered the key proteins that.

<unk> are expressed virtually every time, you're developing esophageal cancer.

What does that mean esophageal cancer and I know many of you see my presentations I'll just tell you very quickly the asset in your stomach overtime that you take in assets for over time, it will start to eat away at the bottom of your soft goods, which is connected to your stomach.

It will you'll start to develop pre cancer cells that's condition.

As Barrick esophagus people with berets esophagus of between one and 51 in 100 chance of developing esophageal cancer and the reason that so serious is because once you're diagnosed with esophageal cancer you have a 75% 80% probability you will die of esophageal cancer, It's one of the deadliest cancers.

Why is it such a deadly cancer because it's diagnosed too late so by definition what does it mean is diagnosed too late it's diagnosed too late because there isn't an adequate diagnosis diagnostic test for diagnosing it early enough, that's where we come in.

We have a test that diagnosis esophageal cancer earlier and more accurately not only that will tell you if you're at high risk or low risk.

The reason why that's important is because in task users roughly 67 million Endoscopies performed each year just in this country and by the way esophageal cancer is growing around the world. There are other countries, where it's growing a lot faster than Europe right. So this is a global problem, but just in the United States 67 million Endoscopies per year.

The reimbursement rate from insurance companies is three $4000 per endoscopy, we're talking to so many billions of dollars just on people that are at risk of esophageal cancer. It's about 7 million endoscopies per year, that's up to $28 billion. A year are the insurance companies are reimbursing. This is a very serious issue and it's very serious and the insurer.

Companies, we have a test that will tell you if youre in high risk and low risk also the beauty bar test.

Our test is done in combination with the endoscopy to make the diagnosis of the endoscopy more accurate theres nothing additional the patient and the Doctor has to do that.

That's critically important because in the world of medicine.

Convenience is an important factor.

In addition to the fact that obviously, we have a test that when you get the endoscopy, we only need one sample.

In endoscopy basically they stick a tube TANF rotate takeout tissue specimens they take out roughly seven or eight.

Now by the way.

I don't want to say, we have competition, because we haven't been convert were not commercialized yet, but our competition is going to be.

I don't I feel funny, even mentioning the name of competition. The only real competition out there is a product that came out a couple of years ago and the beauty is actually paved the way because they've got the insurance company's pain for cash base or what's known as a laboratory developed test and the insurance companies now pay for that.

So they paved the way they did.

In the past they didn't they weren't fast reimbursed for these extra esophageal cancer tests now they're doing it so for us to enter the market. They had a couple of other companies paved the way they already did the hard work, it's going to be easier.

For us to enter the market and the key is with this patent we have the eight protein biomarkers that are express virtually every talking of developing esophageal cancer and depending on how much. They are expressed tells you where they are at high risk or low risk if you're a low risk you don't have to get and you don't have to get Endoscopies is often that will save the insurance companies billions of dollars. If you were at high risk is a procedure.

Get called the replacement is destroying sold a pre cancerous cells and literally saves your life.

If it was up to Gi if they would give anybody coming in for an adult believes they just to be safe to the ablation.

The problem is the ablation is a relatively expensive and so insurance companies don't want to reimburse unless you're close to death.

The problem is once you close to death may be too late to do the ablation.

So it's sort of a chicken and egg situation at the end of not enough people are getting the placement we have a test that will tell you you're at high risk of your high risk. The insurance company will reimburse you when you get you get the ablation changed your life.

And it saves the insurance companies the five years that it might take for you to die from the esophageal cancer and all the medical bills that they have to rebuild so this is huge for the insurance companies. It will save them billions of dollars at the end of the day.

It's sad to say, but when it comes to medicine, it's all about in insurance companies, and where are they making money or losing money and in this case, we would save the insurance companies billions of dollars. If we can isolate the people at high risk and on the other hand, the people lowest they don't have to worry about getting esophageal cancer. They don't have to get a dust b's as often they'll say the insurance companies billions of dollars as well.

And nobody has these egg proteins.

Critically important now there's more to come I anticipate in the coming weeks at least one or two more press releases positive developments towards commercialization for be smarter suffered youll cancer test. So I'll leave it at that for now but suffice it to say this is very exciting.

I don't even know how to say this without upsetting ridiculous. We have I don't know 13, 14 and $15 million market cap.

It's nuts, Aaron this tends to be worth hundreds of millions of dollars in one year.

It just gives you and that's in addition to 50 million potentially coming in from Crown Medical just gives you an idea of the potential of our company. We happened to have started to build a really nice advisory board with Dr. Joe Abdou, who actually is one of the scientists that inventiveness and again I'm going to have more to talk about about commercialization.

I'd like to do them when the next press releases come out, but suffice it to say we have the patents.

We have players interested there is a lot more to talk about.

I don't want to do it today I would just say for the path to commercialization a key factor is getting published in journals getting key opinion leaders involved et cetera et cetera. Because then the Gis will start ordering the tests all of that is coming it's all in the pipeline I'm really looking towards next steps, let's move on Nebula genomics. So we.

Higher think equity to pursue strategic alternatives for nebula genomics, but theres a couple of different ways I want you to think about nebula and also within the context of our whole company.

As I mentioned, Jason Cork is completely restructured this business I wish he had taken over sooner we shut down in the lab, we never should have built the lab in the first place he was not a part of that alright.

Alright shut down the lab cut out an enormous amount of ice tea.

Which we had to absorb when we had the lab cut out an enormous number of people also restructured the whole go to market strategy for selling nebula, so that we know.

Get subscription renewals each year from everyone every anybody who wants to renew there's none of this lifestyle and stuff. We just get it for the rest of the lagging of paper every year you have to renew so even if we operate this as a breakeven business. The following year there won't be profits from anybody that renews at a high percentage of people renew the reason they reno so.

I'm not really going to go into the whole explanation of what Nebula genomics is we don't have time and that's not the purpose of this specific call but to be clear. What we do is we do direct to consumer and this is our DNA complete direct to consumer business, we do whole genome sequencing, which studies your whole genome studies your whole DNA compared to 23 and me in it or an <unk>.

<unk> dot com that studies less than 1%. If you want accurate ancestry information, you'll you'll do one of those tests that'll be final link you up to all the other people in the world based on that 1% of your DNA. If you want accurate health information, though you want to study our whole DNA, it's more expensive, that's where we come in we do it very efficiently.

But critically important for us we have eight years of doing this we've developed a database of roughly 60000 people who've been whole genome sequencing to the equivalent of over 150 or $160 million ancestry test in terms of the entire amount of data. The real point is a whole genome sequencing test provides you a 1000 to 5000 times.

More data than in ancestry testing, so just imagine how much more accurate the health related information is going to be and that's why if you want health related information, you've gotta get whole genome sequencing and so it's an extra couple of hundred dollars and there are various levels of whole genome sequencing onex rdx <unk>, so I'm not going to go into it the more you.

Speaker #1: Good morning, everyone. I'm getting started with your cancer. They don't have to get a dust beast as often; they'll save the insurance company billions of dollars as well.

Ted Karkus: They don't have to worry about getting esophageal cancer. They don't have to get endoscopies as often. They'll save the insurance companies billions of dollars as well. And nobody has these eight proteins. Critically important. Now, there's more to come. I have, I anticipate in the coming weeks, at least one or two more press releases, positive developments towards commercialization for B-smart esophageal cancer tests. So I'll leave it at that for now. But suffice it to say, this is very exciting. Our, this, I mean, I don't even know how to say this without it sounding ridiculous. We have, I don't know, 13, 14, 15 million dollar market cap. It's nuts. Our, this test could be worth hundreds of millions of dollars in one year. It just gives you, and that's in addition to 50 million potentially coming in from Crown Medical.

Speaker #1: And nobody has these eight proteins. They are critically important. Now, there’s more to come. I anticipate in the coming weeks at least one or two more press releases.

Wanted analyzed.

Even even when X gives you a much more significant amount of data and an accessory tests of 30 X. It just study is how many times its studies the DNA and the sequencing and in any event I went to a probably more detailed than I had to the bottom line is that this has been completely restructured and cleaned up now so we could sell.

Speaker #1: Positive developments towards commercialization for B-Smart esophageal cancer tests. So I'll leave it at that for now. But suffice it to say, this is very exciting.

Speaker #1: Our—this—I mean, I don't even know how to say this without sounding ridiculous. We have, I don't know, a $13 million, $14 million, or $15 million market cap.

It now, but now that it's been cleaned up if we get money in from a crown medical initiative.

Speaker #1: It's nuts. This test could be worth hundreds of millions of dollars in one year. It just gives you—and that's in addition to potentially $50 million coming in from Crown Medical.

Then it may not be necessary to sell nebula genomics now because nebula can be worth.

2345 times as much literally just nine to 12 months now so I have to this is all strategy. There's no definitive answers so while we're working with think equity.

Ted Karkus: It just gives you an idea of the potential of our company. Let's move on. I'm not, I can talk more in the Q&A about it, but it gives you a really, really good idea. We happen to have started to build a really nice advisory board with Dr. Joe Abdu, who actually is one of the scientists that invented this. And again, I'm going to have more to talk about, about commercialization. I'd like to do that when the next press releases come out, but suffice it to say we have the patents. We have players interested. There's a lot more to talk about. I don't want to do it today, but a key, I will just say for the path to commercialization, a key factor is getting published in journals, getting key opinion leaders involved, et cetera, et cetera, because then the GIs will start ordering the tests.

Speaker #1: Just gives you an idea of the potential of our company. Let's move on. I'm not— I— I can talk more in the Q&A about it, but it gives you a really, really good idea.

To potentially sell the business. We're also working in limbo led by Jason on building the business now that it's been cleaned up with a little bit of capital in some advertising. This business will take off really nicely alright, that's enough about nebula.

Speaker #1: We happen to have started to build a really nice advisory board with Dr. Joe Abdo, who is one of the scientists that invented this.

Speaker #1: And again, I'm going to have more to talk about regarding commercialization. I'd like to do that with the next press releases that come out. But suffice it to say, we have the patents.

For now again, we can go and do it in the Q&A Copay supplemental just studied very quickly. This is our historical business I'm less interested in this right now and I do want to talk about the crypto and we don't have a lot of time to do it so.

Speaker #1: We have players interested. There--there's a lot more to talk about. I--I--I don't want to do it today. but a key--I will just say for the path to commercialization, a key factor is getting published in journals, getting key opinion leaders involved, et cetera, et cetera.

So were led by legend, SXL, which we've been selling for many years, it's a small brand it keeps a direct to consumer business opened four is probably the least important of everything I'm going to talk about equity here I know a lot of you still want to know what's going on with Echo here. It has been complicated to say the least the preliminary studies were fantastic.

Speaker #1: Because then the GIs will start ordering the test. All of that is—I mean, it's all in the pipeline. I'm really looking forward to next steps.

Ted Karkus: All of that is coming. It's all in the pipeline. I'm really looking forward to the next steps with our tests. Okay, let's move on. Nebula Genomics.

Speaker #1: With our test... Okay, let's move on. Nebula Genomics. Are we on time? We're pretty good. Quick sip of water. All right. Nebula Genomics. So, we hired ThinkEquity to pursue strategic alternatives for Nebula Genomics.

The final studies gave us some good stuff not as good as the preliminary and I'm waiting for a final report our consultant goes back and forth. The problem is the CRA CRO. The clinical research organization is in another country every time, our consultant asked five questions. It takes a week or two to get the responses. They are literally finalizing it right.

Jason Karkus: Yeah, we have time. We're pretty good. Quick sip of water.

Ted Karkus: All right. Nebula Genomics. So we hire Think Equity to pursue strategic alternatives for Nebula Genomics, but there's a couple of different ways I want you to think about Nebula and also within the context of our whole company. Why? As I mentioned, Jason Karkus completely restructured this business. I wish he had taken over sooner. We shut down the lab. We never should have built the lab in the first place. He was not a part of that. All right. Shut down the lab, cut out an enormous amount of IT, which we had to absorb when we had the lab, cut out an enormous number of people, also restructured the whole go-to-market strategy for selling Nebula so that we now get subscription renewals each year from everyone.

Speaker #1: But there are a couple of different ways I want you to think about Nebula, and also within the context of our whole company. One, as I mentioned, Jason Karkus completely restructured this business.

Now the one thing I learned from building the cold is brand. The claims on the package are critically important the claims on the package are based on the clinical studies that back those quiet. If you don't have clinical studies to back the claims either the FDA will shut you down or more than likely class action attorneys will Sue you and put you out of.

Speaker #1: I wish he had taken over sooner. We shut down the lab. We never should have built the lab in the first place. He was not a part of that.

Speaker #1: All right, shut down the lab. Cut out an enormous amount of IT, which we had to absorb when we had the lab. Cut out an enormous number of people.

Business anyway, that's why we can move forward with this without the final clinical study results Okay moving on.

Speaker #1: Also, we restructured the whole go-to-market strategy for selling Nebula so that we now get subscription renewals each year from everyone. Anyone who wants to renew—there's none of this lifetime stuff where you just get it for the rest of your life and don’t pay for it.

Our management team our investment highlights.

I really want to talk about our crypto treasury strategy, a little bit at our upcoming we have a new proxy coming up which are critically important right again, we can go through this completely restructured and transitioned to a significantly leaner company. During the first half of 2025 again results formalized manufacturing January for $23 million.

Ted Karkus: Anybody who wants to renew, there's none of this lifetime stuff where you just get it for the rest of your life, you don't pay for it. Every year you have to renew. So even if we operate this as a break-even business, the following year there will be profits from anybody that renews and a high percentage of people renew. The reason they renew? So, you know, I'm not really going to go into the whole explanation of what Nebula Genomics is. We don't have time, and that's not the purpose of this specific call. But to be clear, what we do is we do direct-to-consumer, and this is our DNA complete direct-to-consumer business. We do whole genome sequencing, which studies your whole genome. It studies your whole DNA compared to 23andMe or an Ancestry.com that studies less than 1%.

Speaker #1: Every year, you have to renew. So even if we operate this as a break-even business, the following year there will be profits from anybody that renews, and a high percentage of people renew.

Speaker #1: The reason they renew? So, you know, I'm not really going to go into the whole explanation of what Nebula Genomics is. We don't have time, and that's not the purpose of this specific call.

We shut down Adobe Genomics laboratory later in the first quarter, we dramatically reduced head count and I T and related overhead and in the end of the first quarter and throughout the second quarter. The third quarter. We will now be look like a much cleaner company a lot of the savings.

Speaker #1: But to be clear, Nebula—what we do is we do direct-to-consumer, and this is our DNA—complete, direct-to-consumer business. We do whole genome sequencing, which studies your whole genome and analyzes your entire DNA.

Speaker #1: Compared to 23 million, or Ancestry.com that studies less than 1%. If you want accurate ancestry information, you'll do one of those tests. It'll be fine, and I'll link you up to all the other people in the world based on that 1% of your DNA.

Are really just now coming it will be coming into the third quarter I reviewed the crowd medical collections with you out in the Q&A I can discuss more with that I talked about the smartest harbinger of cancer to be on the lookout in the coming weeks for some more positive developments towards commercialization I told you. Some of the things that are very important with the new test you need access.

Ted Karkus: If you want accurate ancestry information, you'll do one of those tests. It'll be fine. It'll link you up to all the other people in the world based on that 1% of your DNA. If you want accurate health information, though, you want to study your whole DNA. It's more expensive. That's where we come in. We do it very efficiently. But critically important for us, we have eight years of doing this. We've developed a database of roughly 60,000 people that have been whole genome sequenced. That's the equivalent of over 150 or 160 million ancestry tests in terms of the entire amount of data. The real point is a whole genome sequencing test provides you 1,000 to 5,000 times more data than an ancestry test. So just imagine how much more accurate the health-related information is going to be.

Speaker #1: If you want accurate health information, though, you want to study your whole DNA. It's more expensive. That's where we come in. We do it very efficiently.

<unk> from your peers that happens in the form of getting published of having a clinical study and getting it published and getting the key opinion leaders and Bob and then reaching out to the Gis.

Speaker #1: A critically important aspect for us is that we have eight years of doing this. We've developed a database of roughly 60,000 people that have been whole genome sequenced.

Speaker #1: That's the equivalent of over 150 or 160 million ancestry tests in terms of the entire amount of data. The real point is a whole genome sequencing test provides you 1,000 to 5,000 times more data than an ancestry test.

Find a network of G eyes that are interested in using your test you start there you get good results.

It builds from there we have some great partners and Mayo clinic, an emperor.

We have some great players believe scientist at Mayo clinic loves this loves this test alright and of course, our Chief Science Guy that created it.

Speaker #1: So just imagine how much more accurate the health-related information is going to be. And that's why, if you want health-related information, you’ve got to get whole genome sequenced.

Ted Karkus: And that's why if you want health-related information, you got to get whole genome sequenced. And so it's an extra couple hundred dollars. And there are various levels of whole genome sequencing: 1x, 30x, 100x. I'm not going to go into it. The more you want it analyzed, even 1x gives you a much more significant amount of data than an ancestry test. 30x, it just studies how many times it studies the DNA in the sequencing. And in any event, I went to probably more detail than I had to. The bottom line is that this has been completely restructured and cleaned up now.

Speaker #1: And so it's an extra couple of hundred dollars. There are various levels of whole genome sequencing: 1X, 30X, 100X. I'm not going to go into it.

On our advisory Board Joab too.

He's worked in developed and commercialized other L D Ts and he thinks that this was going to be absolutely huge I could.

Speaker #1: The more you want it analyzed, even— even 1X gives you a much more significant amount of data than an ancestry test. 30X just studies how many times it studies the DNA.

Go on with this I want to talk about a crypto strategy.

We're on this last slide anyway.

So this is really important and I need to give you a little perspective before we get into the Q&A.

We had an ATM.

Speaker #1: In the sequencing, and in any event, I went into probably more detail than I had to. The bottom line is that the business has been completely restructured and cleaned up now.

<unk> stands for aftermarket as well, where you sell shares in the marketplace. When the stocks trading you just sell shares.

Speaker #1: So, we could sell it now. However, now that it's been cleaned up, if we get money in from our Crown Medical initiative, then it may not be necessary to sell Nebula Genomics now.

Ted Karkus: So we could sell it now, but now that it's been cleaned up, if we get money in from our Crown Medical initiatives, then it may not be necessary to sell Nebula Genomics now because Nebula could be worth, you know, two, three, four, five times as much, literally just nine to twelve months now. So I have to, this is all strategy. There's no definitive answer. So while we're working with Think Equity to potentially sell the business, we're also working led by Jason on building the business now that it's been cleaned up. With a little bit of capital and some advertising, this business will take off really nicely. All right, that's enough about Nebula for now. Again, we can go do it in the Q&A. ProPhase supplements, I'll just tell you very quickly, this is our historical business.

That's a company issues and you're taking money.

We had an ATM for I don't know a half a dozen years.

And never used it a single time, just because you have an ATM doesn't mean, you're going to use it same thing with the authorized shares we had tens of millions of shares authorized that we never used now we got into a difficult situation.

Speaker #1: Because Nebula could be worth, you know, two, three, four, or five times as much literally just nine to twelve months from now. So I have to—this is all strategy.

Speaker #1: There's no definitive answer. So, while we're working with ThinkEquity to potentially sell the business, we're also working—led by Jason—on building the business.

The first half of this year, where we did and that's why the share count grew but we stopped doing that a while ago, we had something called an <unk>, we're not going to be using we haven't used the lock in months and we're not using it anymore we're going.

Speaker #1: Now that it's been cleaned up, with a little bit of capital and some advertising, this business will take off really nicely. All right, that's enough about Nebula.

I don't even know if I'm going to say this but we're going to be canceling the HELOC.

Speaker #1: For now, again, we can go do it in the Q&A. ProPhase supplements, I'll just tell you very quickly, this is our historical business. I'm less interested in this right now, and I do want to talk about the crypto, and we don't have a lot of time to do it.

Now we have a proxy coming out that you have to vote for no later than August 29, two.

Ted Karkus: I'm less interested in this right now, and I do want to talk about the crypto, and we don't have a lot of time to do it. So we're led by Legends XL, which we've been selling for many years. It's a small brand. It keeps a direct-to-consumer business open for us. It's probably the least important of everything I'm going to talk about. Equivir, I know a lot of you still want to know what's going on with Equivir. It has been complicated, to say the least. The preliminary studies were fantastic. The final studies gave us some good stuff, not as good as the preliminary. And I'm waiting for a final report. Our consultant goes back and forth. The problem is the CRA, the CRO, the clinical research organization, is in another country.

Two we have two weeks to vote one of the things in the proxy one of the items is to vote on increase in our authorized shares to 1 billion shares now why 1 billion frankly.

Speaker #1: So, we’re led by Legends XL, which we’ve been selling for many years. It’s a small brand. It keeps a direct-to-consumer business open for us.

It's an arbitrary number I could've done 100 million instead of $1 billion I could've done 200 million would have whatever it is it doesn't matter where not dumping hundreds of millions of shares of stock on the market, but that's not the purpose of it.

Speaker #1: It's probably the least important of everything I'm going to talk about. Equivir, I know a lot of you still want to know what's going on with Equivir.

Speaker #1: It has been complicated, to say the least. The preliminary studies were fantastic, and the final studies gave us some good stuff—not as good as the preliminary.

The purpose of it is if we initiate the right crypto Treasury strategy understand if I get into this business on.

Speaker #1: And I'm waiting for a final report. Our consultant goes back and forth. The problem is the CRA, the CRO, the clinical research organization is in another country.

I'm going to go into it the same way we went into the Covid testing. The reason we got into Covid testing, we we're investing with some of the money from the sale of Colby's, we invested in another public company that already had a laboratory was already one of the first validated for Covid testing with the slides for Covid testing I was like Wow. This can be great business, let's invest in your company they went bankrupt.

Speaker #1: Every time our consultant asks five questions, it takes a week or two to get the responses. They're literally finalizing it right now. The one thing I learned from building the Cold-Ease brand is that the claims on the package are critically important.

Ted Karkus: Every time our consultant asks five questions, it takes a week or two to get the responses. They're literally finalizing it right now. The one thing I learned from building the Cold Ease brand, the claims on the package are critically important. The claims on the package are based on the clinical studies that back those claims. If you don't have clinical studies to back the claims, either the FDA will shut you down or more than likely class action attorneys will sue you and put you out of business anyway. That's why we can't move forward with this without the final clinical study results. Okay, moving on. You know, that's our management team, our investment highlights. I really want to talk about our crypto treasury strategy a little bit and our upcoming, we have a new proxy coming up, which are critically important.

Speaker #1: The claims on the package are based on the clinical studies that back those claims. If you don't have clinical studies to support the claims, either the FDA will shut you down or, more than likely, class action attorneys will sue you and put you out of business anyway.

And we generated hundreds of millions of dollars. So just because we're not the first and with the crypto Treasury strategy doesn't mean, we're not going to be successful I am not doing what's called a reverse merger. So that there's no confusion here and I wanted to say this for the end because I just went through a whole presentation, where I told you about all the underlying value and all the different ways that we can be successful with our company given that.

Speaker #1: That's why we can't move forward with this without the final clinical study results. Okay, moving on. You know, that's our management team, our investment highlights.

Why would I throw that all away in something called the reverse merger and a reverse merger all they want is your shelf.

Speaker #1: I really want to talk about our crypto treasury strategy a little bit, and our upcoming... we have a new proxy coming up, which is critically important.

NASDAQ shells are in demand right now they are paying $5 million $10 million for the shot.

Speaker #1: All right. Again, we can go through this completely restructured and transition to a significantly leaner company during the first half of 2025. Again, we sold formalized manufacturing in January for $23 million.

So what they basically do is they might do a deal with a company that's going to be a crypto treasury.

Ted Karkus: All right, again, we can go through this completely restructured and transitioned to significantly leaner company during the first half of 2025. Again, we sold formalized manufacturing in January for $23 million. We shut down the Nebula Genomics laboratory later in the first quarter. We dramatically reduced headcount and IT and related overhead in the end of the first quarter and throughout the second quarter. The third quarter, we will now look like a much cleaner company. A lot of the savings are really just now coming, it will be coming into the third quarter. All right, I reviewed the Crown Medical collections with you in the Q&A. I can discuss more with that. I talked about B-smart esophageal cancer tests. Be on the lookout in the coming weeks for some more positive developments towards commercialization.

Company, they basically in effect by your company, but its called the reverse merger because basically you issue enough shares so that when you're acquiring this other company 95, they get 95% of the shares so in effect. They now on your company because they own 95% of the shares outstanding basically eventually they will be out of the company.

Speaker #1: We shut down the Nebula Genomics laboratory later in the first quarter. We dramatically reduced headcount and IT and related overhead at the end of the first quarter and throughout the second quarter.

Speaker #1: In the third quarter, we will now look like a much cleaner company. A lot of the savings are really just now coming in. They will be coming into the third quarter.

That's what you do if the shell is a relatively worthless coffee that's exactly what we're not doing we're not doing a reverse merger.

We are doing something different we are going to get into the crypto treasury business potentially if we do this we're going to do this with world class partners and that stupid. Okay. I promise you I think most of you know that have known me for a while we have significant potential here to bring in large partners. They are not going to be attractive.

Speaker #1: All right. I reviewed the Crown Medical collections. With you in the Q&A, I can discuss more about that. I talked about the B-smart esophageal cancer test.

Speaker #1: Be on the lookout in the coming weeks for some more positive developments towards commercialization. I told you some of the things that are very important with a new test.

Ted Karkus: I told you some of the things that are very important with a new test. You need acceptance from your peers. That happens in the form of getting published, of having a clinical study and getting it published and getting the key opinion leaders involved. And then reaching out to the GIs. Find a network of GIs that are interested in using your test. You start there, you get good results. It builds from there. We have some great partners in Mayo Clinic and M-Pro. We have some great players. The lead scientist at Mayo Clinic loves this test, loves this test. All right, and of course our chief science guy that created it, who's on our advisory board, Joe Abdu. You know, he's worked and developed and commercialized other LDTs, and he thinks that this was going to be absolutely huge. I could go on with this.

Speaker #1: You need acceptance from your peers. That happens in the form of getting published, having a clinical study, and getting it published. You also need to get the key opinion leaders involved.

<unk> to our company if we don't have a large authorized share count why is that important because of our stock goes to 1% to $345 a share $10 a share we have to be able to issue tens of millions of shares of stock or 100 million shares of stocks suppose our stocks at $5. So we saw a 100 million shares and raised 500.

Speaker #1: And then reaching out to the GIs. Find a network of GIs that are interested in using your test. You start there; you get good results.

Speaker #1: It builds from there. We have some great partners in Mayo Clinic and EMPRO. We have some great players; the lead scientist at Mayo Clinic loves this tech and loves this test.

<unk> said that with anybody on this call would be upset if I raised $500 million at $5 a share when we have a 35 sets doctor.

Speaker #1: All right. And of course, our chief science officer, Joe Abdo, who created it and is on our advisory board, has worked on developing and commercializing other LDTs.

We need the authorized because if we don't have the authorized no big players going to want to get involved with us.

I don't want to get into who I'm talking to right. Now we will have uptick I think I'm going to be coming out with a press release next week, but one of the key things of this strategy is I need the authorized so that the players that I attract to our company. If we bring them in they know that the potential will be there to raise a $1 billion.

Speaker #1: And he thinks that this one is going to be absolutely huge. I could go on with this. I want to talk about our crypto strategy.

Ted Karkus: I want to talk about a crypto strategy we're on the last slide anyway. So this is really important, and I need to give you a little perspective before we get into the Q&A. We had an ATM, which stands for at the market. It's where you sell shares in the marketplace. When the stock's trading, you just sell shares that the company issues, and you take in money. We had an ATM for, I don't know, half a dozen years and never used it a single time. Just because you have an ATM doesn't mean you're going to use it. Same thing with authorized shares. We had tens of millions of shares authorized that we never used. Now we got into a difficult situation the first half of this year where we did, and that's why the share count grew. But we stopped doing that a while ago.

Speaker #1: We're at, we're on the last slide anyway. So this is really important, and I need to give you a little perspective before we get into the Q&A.

Speaker #1: We had an ATM, which stands for At The Market. It's well-used where you sell shares in the marketplace. When the stock's trading, you just sell shares.

$500 million $200 million whatever the number we would starting to wonder we want to raise billions of dollars, but not at 35 cents a share right.

Speaker #1: That the company issues and you take in money. We had an ATM for, I don't know, half a dozen years and never used it a single time.

So I'll give you a couple of quick examples not that that means we're going to do anything like these companies.

But there are companies out there think equity and we have a great relationship with bank accurate guess, what they did one of the biggest deals of the year with bit mine <unk> went from $4 to $40. A first day went to 136 I think it pulled back to like I don't know if $30 a share or something like that and now we're just going up.

Speaker #1: Just because you have an ATM doesn't mean you're going to use it. Same thing with authorized shares. We had tens of millions of shares authorized that we never used.

Speaker #1: Now we got into a difficult situation the first half of this year. That's why this share count grew. But we stopped doing that a while ago.

Trading whenever a hundreds of millions of shares a day.

Theyre able to raise $100 million day, if they want to literally and they are doing they want to raise 1 billion 2 billion multiple billion I don't know the exact details of that deal, okay, and I'm not saying, we're going to do a deal nearly as successful as them. Okay. But then there are other smaller companies that I can point to 180 life Sciences stock symbols.

Speaker #1: We had something called an ELUC. We're not going to be using it; we haven't used the ELOC in months, and we're not using it anymore.

Ted Karkus: We had something called an ELOC. We're not going to be using, we haven't used the ELOC in months, and we're not using it anymore. We're going, I don't even know if I want to say this, but we're going to be canceling the ELOC. Now we have a proxy coming out that you have to vote for no later than August 29th. That's two, we have two weeks to vote. One of the things in the proxy, one of the items is to vote on increasing our authorized shares to 1 billion shares. Now why 1 billion? Frankly, it's an arbitrary number. I could have done 100 million instead of 1 billion. I could have done 200 million. Whatever it is, it doesn't matter. We're not dumping hundreds of millions of shares of stock on the marketplace. That's not the purpose of it.

Speaker #1: We're going— I don't even know if I want to say this— but we're going to be canceling the ELOC. Now, we have a proxy coming out.

Speaker #1: that you have to vote for. No later than August 29th. That's two; we have two weeks to vote. One of the things in the proxy, one of the items, is to vote on increasing our authorized shares to 1 billion shares.

TNF this literally just happen the other day it was a 90% stock last month. They came out with news that they were doing a crypto treasuries strategy. The stock starts trading at $2, then somebody named Peter Thiel companies.

Speaker #1: Now, why $1 billion? Frankly, it's an arbitrary number. I could have done $100 million instead of $1 billion. I could have done $200 million.

Really well known guy that he invested in the company stock went to $11 a share.

So just imagine if we attract some big players do you think something like Peter field is going to come in to our company. If we have 2 million shares available that are authorized to be sold in the marketplace of course that we have to have the ability to raise money, but again. This is no different than all the years.

Speaker #1: Whatever it is, it doesn't matter. We're not dumping hundreds of millions of shares of stock on the marketplace. That's not the purpose of it.

Speaker #1: The purpose of it is, if we initiate the right crypto treasury strategy, to understand that if I get into this business, I'm going to go into it the same way we went into the COVID testing.

Ted Karkus: The purpose of it is if we initiate the right crypto treasury strategy. Understand, if I get into this business, I'm going to go into it the same way we went into the COVID testing. The reason we got into COVID testing, we were investing with some of the money from the sale of Colde's. We invested in another public company that already had a laboratory, was already one of the first validators for COVID testing with the saliva test. For COVID testing, it was like, wow, this can be a great business. Let's invest in your company. They went bankrupt and we generated hundreds of millions of dollars. So just because we're not the first in with a crypto treasury strategy doesn't mean we're not going to be successful.

So we had an ATM we had authorized shares before I, just didnt run out and use them. That's not the point of it. So I hope I made that clear. This is a critically important proxy I hope you all vote Port. We also have other items in there that are voluntary like a stock buyback and other things that are really positive that are easier for shareholders.

Speaker #1: The reason we got into COVID testing was that we were investing with some of the money from the sale of Coldies. We invested in another public company that already had a laboratory and was one of the first validated for COVID testing with the saliva test for COVID testing.

Speaker #1: It was like, wow, this can be a great business. Let's invest in your company. They went bankrupt, and we generated hundreds of millions of dollars.

To understand but increasingly authorized does not mean, we're selling any stock and the idea is once we have this billion shares if our stock is going up and it's trading high volume now like yesterday for example, trading over our stock trading over 200 million shares of stock now I'm not going to get it's a little technical algorithm.

Speaker #1: So just because we're not the first in with a crypto treasury strategy doesn't mean we're not going to be successful. I think we're going to be.

Ted Karkus: I think we're going to be, let alone, I am not doing what's called a reverse merger so that there's no confusion here. And I wanted to say this for the end because I just went through a whole presentation where I told you about all the underlying value and all the different ways that we can be successful with our company. Given that, why would I throw that all away in something called a reverse merger? In a reverse merger, all they want is your shell. Nasdaq shells are in demand right now. They're paying $5 million, $10 million for the shell. So what they basically do is they might do a deal with a company that's going to be a crypto treasury company.

Speaker #1: Alone. I am not doing what's called a reverse merger, so there is no confusion here. I wanted to say this for the end because I just went through a whole presentation where I told you about all the underlying value and all the different ways that we can be successful with our company.

Kicked in before the market opened.

Obviously these aren't real shares trading by this is that our shareholders. So and we didn't sell assure them that we havent sold a share and the stock market and very long time, we're not doing it as I said, we're going to cancel the HELOC, we're going to have an ATM. It doesn't mean, we're going to use the ATM.

Speaker #1: Given that, why would I throw that all away in something called the reverse merger? In a reverse merger, all they want is your shell.

Speaker #1: NASDAQ shells are in demand right now. They're paying $5 million, $10 million for the shell. So what they basically do is they might do a deal with a company that's going to be a crypto treasury company.

And quite frankly, if the crowd medical dollar start to come in depending on where the stock prices. If it's just kind of say I could be buying back stock, which is exactly what I did seven years ago. So all of this is dynamic situation, but it's critically important that you tell all the other shareholders to vote for the authorized shares.

Speaker #1: They basically, in effect, buy your company, but it's called a reverse merger because you issue enough shares so that, when you're acquiring this other company, 95, they get 95% of the shares.

Ted Karkus: They basically, in effect, buy your company, but it's called a reverse merger because basically you issue enough shares so that when you're acquiring this other company, they get 95% of the shares. So in effect, they now own your company because they own 95% of the shares. That's the end. Basically, eventually they weed the other company. That's what you do if the shell is a relatively worthless company. That's exactly what we're not doing. We are not doing a reverse merger. We are doing something different. We are going to get into the crypto treasury business potentially. If we do this, we're going to do this with world-class partners. I'm not stupid. Okay, I promise you. I think most of you know that and have known me for a while. We have significant potential here to bring in large partners.

It is really bullish for a company if you do that I'm going to give you more information about the crypto Treasury strategy next week I'll do another V N D. R. In two weeks, but understand if you want me to attract some of the biggest players in the industry.

Speaker #1: So, in effect, they now own your company because they own 95% of the shares. Basically, eventually, they weed out of the company.

Speaker #1: That's what you do if the shell is a relatively worthless company. That's exactly what we're not doing. We are not doing a reverse merger.

I don't even know if I should tell you. This I'm talking to a milling multibillion dollar Crypto company right now I don't know if I should have even said that but theyre not going to be interested if we don't have any authorized shares and an ability to raise capital as our stock price goes up.

Speaker #1: We are doing something different. We are going to get into the crypto treasury business, potentially. If we do this, we're going to do it with world-class partners.

Speaker #1: I'm not stupid. Okay, I promise you. I think most of you know that. It's known me for a while. We have significant potential here to bring in large partners.

So I hope you understand that this is bullish I hope you understand that as a CEO.

That I have of a 15 year history of doing right by shareholders on the largest shareholder in the company.

Speaker #1: They are not going to be attracted to our company if we don't have a large authorized share count. Why is that important? Because if our stock goes to one, two, three, four, five dollars a share, or $10 a share, we have to be able to issue tens of millions of shares of stock or a hundred million shares of stock.

Ted Karkus: They are not going to be attracted to our company if we don't have a large authorized share count. Why is that important? Because if our stock goes to 1, 2, 3, 4, $5 a share, $10 a share, we have to be able to issue tens of millions of shares of stock or 100 million shares of stock. Suppose our stock's at $5 and we sell 100 million shares and raise $500 million that day. Would anybody on this call be upset if I raised $500 million at $5 a share when we have a 35 cent stock? We need the authorized because if we don't have the authorized, no big player is going to want to get involved with us. I don't want to get into who I'm talking to right now. We will have updates.

Still even with the dilution that we had to suffer.

I suffered by more than anyone else.

And but to be clear I still own just under 10% of the shares outstanding but to be honest I'm not just motivated by my shares I'm motivated to do what's right for the shareholders and for the company to rebuild the value I, just eyecare, maybe I care too much I think equity tells me they love me as the CEO because I care more.

Speaker #1: Suppose our stocks are five dollars and we sell a hundred million shares. We could raise $500 million. Would anybody on this call be upset if I raised $500 million at five dollars a share when we have a 35-cent stock?

Then any other CEO that they now I can say any other see how I don't want to alienate other she goes that they have relationships with but and they just did two of the most successful crypto deals of the year, they're connected to a ton of people I don't want to go into more but I can just tell you. There's a lot of potential on a crypto treasury strategy.

Speaker #1: We need the authorized because if we don't have the authorized, no big player is going to want to get involved with us. I don't want to get into who I'm talking to right now.

Speaker #1: We will have updates. I think I'm going to be coming out with a press release next week. But one of the key things of the strategy is I need the authorization so that the players that I attract to our company, if we bring them in, know that the potential will be there to raise $1 billion, $500 million, $200 million, whatever the number is.

Ted Karkus: I think I'm going to be coming out with a press release next week. But one of the key things of the strategy is I need the authorized so that the players that I attract to our company, if we bring them in, they know that the potential will be there to raise a billion dollars, $500 million, $200 million, whatever the number is. We would start at $200. We want to raise billions of dollars, but not at 35 cents a share. All right. So I'll give you a couple of quick examples. Not that that means we're going to do anything like these companies, you know, but there are companies out there. You know, Think Equity, we have a great relationship with Think Equity. Guess what? They did one of the biggest deals of the year with BitMind, BMNR.

And if everybody votes for the proxy I think all systems could we could have a lot of fun together, okay and again just remember this is no different than when we got into Covid testing, we werent the first day and to be clear with crypto, There's a limited amount of bitcoin that will ever.

Speaker #1: We would start at $200. We want to raise billions of dollars, but not at $0.35 a share. All right, so I'll give you a couple of quick examples.

Be manufactured or might.

And that's it and so it's interesting every government in the world, including ours, and especially ours is now backing. These currencies you now have the government putting government money.

Speaker #1: Not that that means we're going to do anything like these companies. You know, there are companies out there. You know, ThinkEquity, we have a great relationship with ThinkEquity.

In one case wherever in India.

Speaker #1: Guess what? They did one of the biggest deals of the year with BitMind, BMNR. Went from $4 to $40 the first day.

Into cryptos into bitcoin this isn't a fad.

So unlike COVID-19, which lasted two or three years. This is 10 years. This is forever. This in some respects is like gold holding as a store of value. So there is a very interesting opportunity here I want to seize it but I need the shareholder support to do it okay that was a little bit of a rent I hope you don't mind novella.

Ted Karkus: Went from $4 to $40 per day, went to $136. I think it pulled back to like, I don't know, $30 a share or something like that. And now it's just going up. It's, you know, trading whatever, hundreds of millions of shares a day. They're able to raise $100 million a day if they want to. Literally. And they're doing, they want to raise a billion, two billion, multiple billion. I don't know the exact details of that deal. Okay. And I'm not saying we're going to do a deal nearly as successful as them. Okay. But then there are other smaller companies that I could point to. 180 Life Sciences, Stock Symbols AT&F. This literally just happened the other day. It was a 90 cent stock last month. They came out with news that they were doing a crypto treasury strategy. The stock starts trading at $2.

Speaker #1: Went to $136. I think it pulled back to like, I don't know, $30 a share or something like that. And now it's just going up.

Speaker #1: It's, you know, trading whatever, hundreds of millions of shares a day. They're able to raise $100 million a day if they want to.

Speaker #1: Literally. And they're doing, they want to raise $1 billion, $2 billion, multiple billions. I don't know the exact details of that deal. Okay. And I'm not saying we're going to do a deal nearly as successful as them.

I hand, it over to you. Thank you. Thank you very much for the presentation I will mention we can have your first question is maybe excited on the progress for peace of mind what are the next steps. Okay. So the next steps very specifically we have to get a study published in a major journal Wink Wink is coming the next step after that Poland key.

Speaker #1: Okay. But then there are other smaller companies that I can point to, like 180 Life Sciences. The stock symbol is ATNF. This literally just happened the other day.

Speaker #1: It was a 90-cent stock last month. They came out with news that they were implementing a crypto treasury strategy. The stock started trading at $2.

Opinion leaders.

We're already are getting them lined up once you have the legitimacy of a published study of our clinical study and a major publication supported by key opinion leaders. You can then start reaching out to a group of a hospital network.

Speaker #1: Then somebody named Peter Thiel comes in. He's a really well-known guy. He invests in the company's stock. It went to $11 a share.

Ted Karkus: Then somebody named Peter Thiel comes in. He's a really well-known guy. That he invested in the company's stock went to $11 a share. So just imagine if we attract some big players. Do you think somebody like Peter Thiel is going to come into our company if we have 2 million shares available that are authorized to be sold in the marketplace? Of course not. We have to have the ability to raise money. But again, this is no different than all the years that we had an ATM. We had authorized shares before. I just didn't run out and use them. That's not the point of it. So I hope I made that clear. This is a critically important proxy. I hope you all vote for it.

Speaker #1: So just imagine if we attract some big players. Do you think somebody like Peter Thiel is going to come into our company? If we have 2 million shares available that are authorized to be sold in the marketplace?

Speaker #1: Of course not. We have to have the ability to raise money. But again, this is no different than all the years that we had an ATM.

Work of Gastroenterologists get them to start using your test.

It's very similar to our castle Biosciences did with tissue safer I don't want to compare to them.

Speaker #1: We had authorized shares before. I just didn't run out and use them. That's not the point of it. So, I hope I made that clear.

I think that we have a significantly better test than they do and they already paved the way towards L. D. Ts laboratory developed tests getting reimbursed by insurance companies insurance companies.

Speaker #1: This is a critically important proxy. I hope you all vote for it. We also have other items in here that are voluntary, like stock buyback.

Ted Karkus: We also have other items in there that are voluntary, like stock buyback and other things that are really positive that are easier for shareholders to understand. But increasing the authorized does not mean we're selling any stock. And the idea is once we have this billion shares, if our stock is going up and it's trading high volume, not like yesterday, for example, traded over, our stock traded over 200 million shares of stock. Now, I'm not going to get it. It's a little technical. Algorithms kicked in before the market opened. Obviously, these aren't real shares trading back. This isn't our shareholders. So, and we didn't sell a share in that. We haven't sold a share in the stock market in a very long time. We're not doing that. They said we're going to cancel the ELOC. We're going to have an ATM.

Speaker #1: And other things that are really positive that are easier for shareholders to understand. But increasing the authorized does not mean we're selling any stock.

Now understand the purpose and value.

Of a esophageal cancer test that gives you.

Speaker #1: And the idea is, once we have this billion shares, if our stock is going up and it's trading at high volumes, now, like yesterday, for example, it traded over 200 million shares of stock.

A more accurate diagnosis, so they're already starting to reimburse and we believe our test is even more accurate I don't want to go into the details now, but I will just tell you as a quick example ever sold or tissue Cypress better what could you have tissue cipher requires up to 12.

Speaker #1: Now, I'm not going to get it. It's a little technical. Algorithms kicked in before the market opened. Obviously, these aren't real shares. Trading back, this is our shareholders.

Specimens.

Speaker #1: So, we haven't sold a share in that. We haven't sold a share in the stock market in a very long time. We're not doing that.

In order to give you accurate results in order to get 12, sometimes it requires two windass cubbies, which have a lot of risk or I don't know if the endoscopy. The Gi specifically has to go a gi typically when doing a routine endoscopy will take out seven or eight tissue specimens out of yourself against.

Speaker #1: They said we're going to cancel the ELUC. We're going to have an ATM. It doesn't mean we're going to use the ATM. And quite frankly, if the Crown Medical dollars start to come in, depending on where the stock price is, if it's this kind of a stock, I could be buying back stock.

Ted Karkus: It doesn't mean we're going to use the ATM. And quite frankly, if the Crown Medical dollars start to come in, depending on where the stock price is, if it's this kind of a stock, I could be buying back stock, which is exactly what I did seven years ago. So all of this is a dynamic situation, but it's critically important that you tell all the other shareholders to vote for the authorized shares. It is really bullish for our company if you do that. I'm going to give you more information about the crypto treasury strategy next week. I'll do another VNDR in two weeks. But understand, if you want me to attract some of the biggest players in the industry, I don't even know if I should tell you this. I'm talking to a multi-billion dollar crypto company right now.

Speaker #1: Which is exactly what I did seven years ago. So all of this is a dynamic situation. But it's critically important that you tell all the other shareholders to vote for the authorized shares.

You'll have to take out more than that that adds risk sometimes it turns into two endoscopy in addition to that.

I don't want to go into the different there are some other difficulties, but also they don't have our eight key proteins. They're also using a technology that was developed 30 years ago I heard 60 years ago with say, even 30 years ago. It's antiquated technology. It gives you antiquated results what we do is at a mass.

Speaker #1: It is really bullish for our company. If you do that, I'm going to give you more information about the crypto treasury strategy next week.

Speaker #1: I'll do another VNDR in two weeks. But understand, if you want me to attract some of the biggest players in the industry, I don't even know if I should tell you this.

Spectrometry machine, which is very advanced the latest ones even have AI associated with it and so again I always compare it to right now in endoscopy has done.

Speaker #1: I'm talking to a million, multi-billion dollar crypto company right now. I don't know if I should have even said that. But they're not going to be interested if we don't have any authorized shares and an ability to raise capital as our stock price goes up.

Ted Karkus: I don't know if I should have even said that. But they're not going to be interested if we don't have any authorized shares and an ability to raise capital as our stock price goes up. All right. So I hope you understand that this is bullish. I hope you understand as a CEO that I have a 15-year history of doing right by shareholders. I'm the largest shareholder in the company. I still, even with the dilution that we had to suffer, I suffered by more than anyone else. But to be clear, I still own just under 10% of the shares outstanding. But to be honest with you, I'm not just motivated by my shares. I'm motivated to do what's right for the shareholders and for the company, to rebuild the value. I just, I care. Maybe I care too much. You know what Think Equity tells me?

Tissue specimens and a pathologist studies to tissue specimens under a microscope to give you a diagnosis.

Speaker #1: All right. So, I hope you understand that this is bullish. I hope you understand, as a CEO, that I have a 15-year history of doing right by shareholders.

The human eye looking into microscope does not compare to a mass spec commentary machine with AI analyzing those same specimens. There's no comparison plus we have the patents on the eight proteins that are regularly expressed whenever you're developing esophageal cancer. So we have a really special test.

Speaker #1: I'm the largest shareholder in the company. Even with the dilution that we had to suffer, I suffered probably more than anyone else.

Speaker #1: And, but to be clear, I still own just under 10% of the shares outstanding. But to be honest with you, I'm not just motivated by my shares.

And I can't wait to go to market with it when it will be a soft gel cancer tests hit the retail market. So when you say retail markets.

Speaker #1: I'm motivated to do what's right for the shareholders and for the company—to rebuild the value. I just care. Maybe I care too much.

This isn't like co.

Cologuard, where they send it to your home and you do the test at home.

Speaker #1: You know what ThinkEquity tells me? They love me as the CEO because I care more than any other CEO that they know. I shouldn't say any other CEO.

Ted Karkus: They love me as a CEO because I care more than any other CEO that they know. I shouldn't say any other CEO. I don't want to alienate other CEOs that they have relationships with. But they just did two of the most successful crypto deals of the year. They're connected to a ton of people. I don't want to go into more, but I can just tell you there's a lot of potential on a crypto treasury strategy. And if everybody votes for the proxy, I think all systems could, we could have a lot of fun together. Okay. And again, just remember, this is no different than when we got into COVID testing. We weren't the first there. And to be clear with crypto, there's a limited amount of Bitcoin that will ever be manufactured or mined. And that's it.

This is for people already getting an endoscopy. So there's nothing additional that the patient needs to do when the patient gets the endoscopy.

Speaker #1: I don't want to alienate other CEOs that they have relationships with. But they just did two of the most successful crypto deals of the year.

The Gi or the pathologist simply have to take one of those specimens send it to our lab or the lab that we partner with to run it on our mass mass spectrometry. So when you say retail markets isn't something we're selling retail. This is a test that will be added to the industry and again. This is for patients who are already getting the industry. So it's a 100%.

Speaker #1: They're connected to a ton of people. I don't want to go into more, but I can just tell you, there's a lot of potential on a crypto treasury strategy.

Speaker #1: And if everybody votes for the proxy, I think all systems could, we could have a lot of fun together. Okay. And again, just remember, this is no different than when we got into COVID testing.

<unk> and that Theres nothing additional that the patient of the Doctor has to do other than the specimen that they're already extracting it sends it to where our lab for sequencing of processing and in terms of timing I. Just I think I already said the next step next step is publication in a major journal.

Speaker #1: We weren't the first in. And to be clear with crypto, there's a limited amount of Bitcoin that will ever be manufactured or mined. And that's it.

It gets key opinion leaders involved and then start reaching out to Geos, which isn't that's not too distant future actually so in terms of commercializing. It we're not we're actually not that far away, but it starts off slow we start with one group of G is they start using it the insurance companies start reimbursing they'd have to learn what the test is the first time.

Speaker #1: And so what's interesting is that every government in the world, including ours—and especially ours—is now backing these currencies. You now have the government putting government money.

Ted Karkus: And so it's interesting, every government in the world, including ours, and especially ours, is now backing these currencies. You now have the government putting government money, you know, 401Ks, whatever, into cryptos, into Bitcoin. This isn't a fad. So unlike COVID, which lasted two or three years, this is 10 years. This is, you know, forever. This in some respects is like gold, holding as a store of value. So there's a very interesting opportunity here. I want to seize it, but I need the shareholder support to do it. Okay. That was a little bit of a rant. I hope you don't mind. Noella, thank you for staying by. I know that I ran over, but it was really important that I covered all that. Noella, we always do a Q&A at the end. We still have about 20 minutes for the Q&A.

Speaker #1: You know, 401(k)s, whatever, into cryptos, into Bitcoin. This isn't a fad. So unlike COVID, which lasted two or three years, this is 10 years.

You'll probably agree they might reject you and then you send it back and they say Oh Wow. This is actually very interesting. These results are actually very important they start reimbursing and then word gets out there and then you go start going to more Gi group and then it spreads.

Speaker #1: This is, you know, forever. This, in some respects, is like gold—holding as a store of value. So, there's a very interesting opportunity here.

Speaker #1: I want to seize it, but I need the shareholder support to do it. Okay, that was a little bit of a rant. I hope you don't mind.

So the key is to find a group of Gis or a network of hospital network that we'll take your tests and start using it.

Speaker #1: Noella, thank you for staying by. I know that I ran over, but it was really important that I covered all that. Noella, we always do a Q&A at the end.

That's where advisory board comes in because the two gentlemen on our advisory board have vast experience and best networks of people that they can go to and tremendous relationships with Mayo clinic, and <unk>, who are already our partners and then.

Speaker #1: We still have about 20 minutes for the Q&A, so I hand it over to you. Thank you.

Ted Karkus: So I hand it over to you. Thank you.

Speaker #2: Thank you very much, Ted, for the presentation. As you mentioned, we do have a Q&A. So your first question is, we are very excited about the progress for B-smart.

Noella Alexander: Thank you very much, Ted, for the presentation. And as you mentioned, we do have a Q&A. So your first question is, very excited on the progress for B-Smart. What are the next steps?

I don't even want to go into the names here, but I won't get anybody in trouble, but there are a vast networks of hospitals that our advisory board has relationships with so that's part should actually be relatively easy getting one of these networks to start using our test and then the word spreads and then this will become a big success and then somebody like an exact sciences.

Speaker #2: What are the next steps?

Speaker #1: Okay. So the next steps, very specifically, we have to get a study published in a major journal. Wink, wink, it's coming. The next step after that is to pull in key opinion leaders.

Ted Karkus: Okay, so the next steps, very specifically, we have to get a study published in a major journal. Wink, wink, it's coming. The next step after that, pull in key opinion leaders. We already are getting them lined up. Once you have the legitimacy of a published study of our clinical study in a major publication supported by key opinion leaders, you can then start reaching out to a group of, you know, a hospital network, a network of gastroenterologists, get them to start using your test. It's very similar to what Castle Biosciences did with TissueSite. I don't want to compare to them. I think that we have a significantly better test than they do, and they already paved the way towards LDTs, laboratory developed tests, getting reimbursed by insurance companies.

Look them up in the last few months, they've been and where somewhere around $10 billion. This would be a rounding error for them. They could give us $50 million of front end and a royalty and the royalty one day I don't know it could be $50 million, a year or something like that I mean, the numbers could be crazy on this thing.

Speaker #1: We're already getting them lined up. Once you have the legitimacy of a published study of our clinical study in a major publication, supported by key opinion leaders, you can then start reaching out to a group of, you know, a hospital network, a network of gastroenterologists, and get them to start using your test.

For a little company with or not even I don't even think we have a $15 million Mark how are you.

In April to give us an update on timing of when you expect to start collecting from crown. So I already addressed that when the bankruptcy court I would say I don't know.

Speaker #1: It's very simple, similar to what Castle Biosciences did with tissue safety. I don't want to compare to them; I think that we have a significantly better test than they do.

I want to be conservative here within four day weeks once we're in court with the judge then.

We go hog wild on the insurance companies and again Crown has already reached out to I can't remember what the number is I think they told me they already reached up to about 100 insurance companies and the common answers. We know you. We hear you we understand we're going to have to settle with you.

Speaker #1: And they already paved the way towards LDTs, laboratory-developed tests, getting reimbursed by insurance companies. Insurance companies now understand the purpose and value of an esophageal cancer test that gives you a more accurate diagnosis.

Ted Karkus: Insurance companies now understand the purpose and value of an esophageal cancer test that gives you a more accurate diagnosis. So they're already starting to reimburse, and we believe our test is even more accurate. I don't want to go into the details now, but I will just tell you as a quick example. Everyone says, "Oh no, TissueCypher is better. What could you have?" TissueCypher requires up to 12 specimens in order to give you accurate results. In order to get 12, sometimes it requires two endoscopies, which have a lot of risk. Or I don't know if the endoscopy, the GI specifically has to go. A GI typically, when doing a routine endoscopy, will take out seven or eight tissue specimens out of your esophagus. You have to take out more than that. That adds risk. Sometimes it turns into two endoscopies.

When you officially filed let US know and then we'll talk again.

Speaker #1: So they're already starting to reimburse, and we believe our test is even more accurate. I don't want to go into the details now, but I will just tell you, as a quick example.

And then it's just a matter of timing does take two weeks or four weeks to negotiate with them how long does it take for the check to come in at some point can you tell us what line of crypto investing opportunities you're looking at yes, I think it's a little premature I will tell you that the powers that be that we're working with.

Speaker #1: Everyone says, "Oh no, we're tissue safer is better." What could you have? Tissue safer requires up to 12 specimens in order to give you accurate results.

Their first focus is bitcoin they don't want me to say anything other than bitcoin. They want me to say Michael Saylor Micro strategy. There are approaches that our company becomes the next micro strategy and that we do it just as well or even better than micro strategy is doing it. They were first doesn't mean and the best.

Speaker #1: In order to get 12, sometimes it requires two endoscopies, which have a lot of risk. I don't know if the endoscopy, specifically the GI, has to go a GI. Typically, when doing a routine endoscopy, a GI will take out seven or eight tissue specimens from your esophagus.

It's no different here's the ear is the concept that I've been thinking about if you think about somebody that's a really big hedge fund manager.

Speaker #1: You have to take out more than that. That adds risk. Sometimes it turns into two endoscopies. In addition to that, you know what? I don't want to go into the differences.

Managing $100 billion, right and you're saying what do you need another hedge funds, where there already is a hedge fund what do you need another hedge fund for them Theres more money out there to be managed than one big hedge fund or 10 big hedge funds can match and it's the same thing with crypto and there are more and more cryptos and they're more and more strategies, but the <unk>.

Ted Karkus: In addition to that, you know what? I don't want to go into the differences. There's some other difficulties, but also they don't have our eight key proteins. They're also using a technology that was developed 30 years ago, I heard 60 years ago, but say even 30 years ago. It's antiquated technology. It gives you antiquated results. What we do is that a mass spectrometry machine, which is very advanced. The latest ones even have AI associated with it. And so again, I always compare it to right now when endoscopy is done, you're taking tissue specimens and a pathologist studies the tissue specimens under a microscope to give you a diagnosis. The human eye looking into a microscope does not compare to a mass spectrometry machine with AI analyzing those same specimens. There's no comparison.

Speaker #1: There's some other difficulties, but also they don't have our eight key proteins. They're also using a technology that was developed, I don't know, 30 years ago.

Speaker #1: I heard 60 years ago, but say even 30 years ago. It's antiquated technology. It gives you antiquated results. What we do is mass spectrometry, a machine that is very advanced.

Bottom line is.

If we attract big players, we will attract big investor interest.

Knock on wood, our stock price will go up or.

Speaker #1: The latest ones even have AI associated with them. And so again, I always compare it to right now when endoscopy is done; you're taking tissue specimens, and a pathologist studies the tissue specimens under a microscope to give you a diagnosis.

Our shareholders will do the right thing and.

Vote to increase the authorized will raise money as the stock price goes up and before you know what we could be sitting on half of $1 billion of cash and the stock price.

It's multiples of where it's trading right now many multiples and we.

Speaker #1: The human eye looking into a microscope does not compare to a mass spectrometry machine with AI analyzing those same specimens. There's no comparison. Plus, we have the patents on the eight proteins that are regularly expressed whenever you're developing esophageal cancer.

We take it from there so I'll have more to say about this and I don't want to I really want to do this in a separate press release and go into more detail I don't want to speak out of line and I don't want to talk about people and partners.

Ted Karkus: Plus, we have the patents on the eight proteins that are regularly expressed whenever you're developing esophageal cancer. So we have a really special test, and I can't wait to go to market with this. I hope that answered that question. What's the next one, Noella?

Without their permission, but I can tell you that we're already talking to major players will investors be diluted because of the crypto. We just had but were afraid. The answer is we don't have to sell a single share of stock. If we don't want to the idea is to build value and given all the things that we just covered crown medical $50 million.

Speaker #1: So, we have a really special test, and I can't wait to go to market with it. I hope that answers that question. What's the next one, Noella?

Speaker #2: Thank you, Ted. The next question is, when will the esophageal cancer test hit the retail markets?

Noella Alexander: Thank you, Ted. The next question is, when will the esophageal cancer test hit the retail market?

Speaker #1: Yeah, so when you say retail markets, this isn't like, I don't know, you know, Cologuard, where they send it to your home and you do the test at home.

Ted Karkus: Yeah, so when you say retail markets, this isn't like, I don't know, you know, Cologuard where they send it to your home and you do the test at home. This is for people already getting an endoscopy. So there's nothing additional that the patient needs to do. When the patient gets the endoscopy, the GI or the pathologist simply has to take one of those specimens, send it to our lab or the lab that we partner with to run it on our mass spectrometry. So when you say retail markets, this isn't something we're selling retail. This is a test that will be added to the endoscopy. And again, this is for patients already getting the endoscopy. So it's 100% convenient in that there's nothing additional that the patient or the doctor has to do.

Commercializing yourself adrenal cancer tests potentially selling nebula genomics.

By the way I should also mention on the Crown medical.

We are very we are working already on doing something entering whats called the dip financing debtor in possession that is basically a financing against the collections.

Speaker #1: This is for people already getting an endoscopy, so there's nothing additional that the patient needs to do. When the patient gets the endoscopy, the GI or the pathologist simply has to take one of those specimens, send it to our lab, or the lab that we partner with, to run it on our mass spectrometry.

If we do that then every shareholder should be thrilled because they know that there is a company of experts. This is all they do is they finance litigation, where they know that there's going to be a positive outcome from the litigation and they'll give you money and then they collect.

Speaker #1: So when you say retail markets, this isn't something we're selling retail. This is a test that will be added to the endoscopy, and again, this is for patients already getting the endoscopy.

Speaker #1: So, it's a hundred percent convenient in that there's nothing additional that the patient or the doctor has to do, other than the specimen that they're already extracting and sending to our lab for sequencing or processing.

As the funds actually come in so they give you the money at a discount I don't know what the discount terms will be or whatever I guess and I don't know if that technically I don't even know if that's considered debt because I don't believe we would have to pay it back.

Ted Karkus: Other than the specimen that they're already extracting and send it to our lab for sequencing or processing. So, and in terms of timing, I just, I think I already said the next step. Next step is publication in a major journal, get the key opinion leaders involved, and then start reaching out to GIs, which is in that not too distant future, actually. So in terms of commercializing it, we're actually not that far away. But it starts off slow. We start with one group of GIs. They start using it. The insurance companies start reimbursing. They have to learn what the test is. The first time they'll probably, they might reject you, and then you send it back and they say, "Oh wow, this is actually very interesting.

Speaker #1: So, in terms of timing, I think I already mentioned the next step. The next step is publication in a major journal, getting the key opinion leaders involved, and then starting to reach out to GIs, which is not too distant a future, actually.

Their collections come straight from the crowded medical initiative.

And so if that money comes in.

Hello, It's enough money comes in and then I don't have to raise money. It can pay off some of the debts that we have right now we can potentially even buy back stock.

Speaker #1: So, in terms of commercializing, we're not actually that far away. But it starts off slow. We start with one group of GIs.

And build our company I wouldn't I would love to put some money to work at <unk> I think we could double or triple the revenues that company very profitably very quickly I can't do it while we're tight on capital.

Speaker #1: They start using it. The insurance companies start reimbursing. They have to learn what the test is. The first time they'll probably reject you, and then you send it back, and they say, "Oh wow, this is actually very interesting."

Just as an example, the beachfront esophageal cancer tests, we're not that's not initially going to be profitable, but I can tell you. This because I'm not spending a lot of money either in the early days, we're going to do a grass roots and <unk>.

Speaker #1: These results are actually very important. They start reimbursing, and then word gets out there, and then you start going to more GI groups.

Ted Karkus: These results are actually very important." They start reimbursing, and then word gets out there, and then you go start going to more GI groups, and then it spreads. So the key is to find a group of GIs or a network, a hospital network that will take your test and start using it. That's where our advisory board comes in because the two gentlemen on our advisory board have vast experience and vast networks of people that they can go to and tremendous relationships, you know, with Mayo Clinic and M-Pro, who are already our partners. And then, I don't even want to go into the names here, and I don't want to get anybody in trouble, but there are vast networks of hospitals that our advisory board has relationships with.

Speaker #1: And then it spreads. So the key is to find a group of GIs or a network, a hospital network that will take your test and start using it.

Likely once we gather some momentum I guarantee you, they're going to be multibillion dollar companies knocking on our door wanting to bias or partner with us. So we have those kind of opportunities. So the last thing in the world I'm going to do is destroy our stock price from here.

Speaker #1: That's where the advisory board comes in, because the two gentlemen on our advisory board have vast experience and extensive networks of people they can reach out to, along with tremendous relationships.

I want to do the opposite and I want to build the value of it. The idea is to get the stock price going up raise money as the stock price is going up.

That's the purpose of the crypto Treasury strategy.

Speaker #1: You know, with Mayo Clinic and EMPRO, who are already our partners, and then, I don't even want to go into the names here. I don't want to get anybody in trouble, but there are vast networks of hospitals that our advisory board has relationships with.

As I said I can give you five or 10 examples of.

Companies, who have just recently not even three months ago three days ago.

Who are executing on successful crypto treasury strategies and their stocks are going to have 12345 times, 100%, 500%.

Speaker #1: So that part should actually be relatively easy—getting one of these networks to start using our test. And then the word spreads, and then this will become a big success.

Ted Karkus: So that part should actually be relatively easy, getting one of these networks to start using our test, and then the word spreads, and then this will become a big success. And then somebody like an Exact Sciences, I haven't looked them up in the last few months, you know, they've been worth somewhere around $10 billion. This would be a rounding error for them. They could give us $50 million upfront and a royalty, and the royalty, you know, one day, I don't know, could be $50 million a year or something like that. I mean, the numbers could be crazy on this side. Well, for our little company, we're not even, I don't even think we have a $15 million market cap. Next question, please.

Crazy amount I don't care, if ours goes up 500% or not but for you guys to worry am I going to destroy our stock price and we are absolutely not there's no reason to them. If we were going to destroy the stock price and what's the point of doing it I Wouldnt do it I just don't do it. So it's the same thing with Covid testing will start off small and by the way I just want to point this out to everybody. When we got into Covid testing I think we had about a two.

Speaker #1: And then somebody like Exact Sciences, I haven't looked them up in the last few months. You know, they've been worth somewhere around $10 billion.

Speaker #1: This would be a rounding error for them. They could give us $50 million upfront and a royalty. And the royalty, you know, one day, I don’t know, could be $50 million a year or something like that.

Speaker #1: I mean, the numbers could be crazy on this side. Well, for our little company with our not even—I don't even think we have a $15 million market cap.

Dollar stock when we decided to get into Covid testing within about six months.

And we had the ATM, we had the Wassa right here I don't know all of a sudden start dumping stock in the marketplace that I remembered our stock went up.

Speaker #1: Next question, please.

Speaker #2: Your next question is: Are you able to give us an update on the timing of when you expect to start collecting from Crown?

Noella Alexander: Your next question is, are you able to give us an update on timing of when you expect to start collecting from Crown?

And then somebody wants to do a deal with us are stuck out to about $10 somebody wanted to a $6 deal and by the end of the day and I was talking about doing a raise with them then.

Speaker #1: Yeah, so I already addressed that. When the bankruptcy court, I would say, I don't know, I want to be conservative here. Within four to eight weeks, once we're in court with the judge, then we go hog wild on the insurance companies.

Ted Karkus: Yeah, so I already addressed that. When the bankruptcy court, I would say, and I want to be conservative here, within four to eight weeks, once we're in court with the judge, then we go hog wild on the insurance companies. And again, Crown has already reached out to, I can't remember what the number is, I think they told me they already reached out to about a hundred insurance companies. And the common answer is, we know you, we hear you, we understand we're going to have to settle with you. When you officially file, let us know, and then we'll talk again. And then it's just a matter of timing. Does it take two weeks or four weeks to negotiate with them? How long does it take for the check to come in and so forth?

Two hours before four o'clock they said.

At $6 and I said are you Kidding me my stock is $10 why would I do that and they crushed the stock. Okay. If they said that's the only price will do I said, no and you'll ever happen. After the crutches Stockford data stock starts right back up again, where do we do it I did $5 million.

Speaker #1: And again, Crown has already reached out to, I can't remember what the number is. I think they told me they already reached out to about a hundred insurance companies.

Speaker #1: And the common answer is, "We know you. We hear you. We understand we're going to have to settle with you. When you officially file, let us know, and then we'll talk again."

Think I want to say about 11 Bucks a share I can't remember exactly 10, $11 a share and then two or three weeks later.

We raised $37 $5 million at 12, and a half dollar this year.

Speaker #1: And then it's just a matter of timing. Does it take two weeks or four weeks to negotiate with them? How long does it take to detect, to come in, and so forth?

We had the idea for the Covid testing when the stock price was too we didn't raise money until we have the ATM. We have the shares of authorized I didn't go dumping stock at $2 to go get into the Covid testing business. So.

Speaker #2: Thank you for the clarity on that, Ted. The next question is, can you tell us what line of crypto investing opportunities you're looking at?

Noella Alexander: Thank you for the clarity on that, Ted. The next question is, can you tell us what line of crypto investing opportunities you're looking at?

Speaker #1: Yeah, I think it's a little premature. I will tell you that the powers that be, that we're working with, their first focus is Bitcoin.

Ted Karkus: Yeah, I think it's a little premature. I will tell you that the powers that be that we're working with, their first focus is Bitcoin. They don't want me to say anything other than Bitcoin. They don't want me to say MicroStrategy. Their approach is that our company becomes the next MicroStrategy and that we do it just as well or even better than MicroStrategy is doing it. They were first, doesn't mean they're the best. And you know, it's no different. Here's the concept that I've been thinking about. If you think about somebody that's a really big hedge fund manager, you know, that's managing $100 billion, right? And you say, what do you need another hedge fund for? There already is a hedge fund. What do you need another hedge fund for?

That's real life, what I actually did don't assume that I'm going to do just the opposite and destroy everybody one of the largest shareholder in the company and we don't have to do this deal and we're not doing a reverse merger just given where the company is that our company doesn't exist. So I know that theres a lot of fears out there, but they are irrational once you understand our strategy.

Speaker #1: They don't want me to say anything other than Bitcoin. They want me to say Michael Saylor, MicroStrategy, their approaches, that our company becomes the next MicroStrategy.

Speaker #1: And that we do it just as well, or even better than MicroStrategy is doing it. They were first. That doesn't mean they're the best. And you know what?

We're really trying to do.

And again I wanted to deploy the same strategy.

Speaker #1: It's no different. Here's the concept that I've been thinking about. If you think about somebody who's a really big hedge fund manager, you know, someone who's managing $100 billion, right?

Get the stock price moving up sell stock is going up raising money.

So it's actually anti dilutive, if you're raising money in the stock price going up and you're right and you're raising the money opportunistically. It can actually be antibody <unk>, which is what a lot of these other strategies are they raise money it at high stock prices.

Speaker #1: And you say, "What do you need another hedge fund for? There already is a hedge fund. What do you need another hedge fund for?"

They invest into crypto as long as you're trading at a premium to your net asset value then all any additional money that you raise if you're raising above your net asset value then youre, increasing your net asset value on a per share basis. Once you increase your net asset value on a per share basis, and if you buy more crypto and you continue.

Speaker #1: There's more money out there to be managed than one big hedge fund or ten big hedge funds can manage. And at the same time, with crypto.

Ted Karkus: There's more money out there to be managed than one big hedge fund or 10 big hedge funds can manage. And it's the same thing with crypto. And there are more and more cryptos and there are more and more strategies. But the bottom line is, if we attract big players, we will attract big investor interest. Knock on wood, our stock price will go up. Our shareholders will do the right thing and vote to increase the authorized. We'll raise money as the stock price goes up. And before you know it, we could be sitting on half a billion dollars of cash and the stock price, you know, that's multiples of where it's trading right now, many multiples. And we take it from there. So I'll have more to say about this.

Speaker #1: There are more and more cryptos, and there are more and more strategies. But the bottom line is, if we attract big players, we will attract big investor interest.

Speaker #1: Knock on wood, our stock price will go up. Our shareholders will do the right thing and vote to increase the authorized. We'll raise money as the stock price goes up.

Trading at a premium you're just continuing to be actually anti dilutive, you're actually increasing your value on a per share basis, it's a phenomenal strategy.

Speaker #1: And before you know it, we could be sitting on half a billion dollars of cash, and the stock price, you know, that's multiples of where it's trading right now—many multiples.

And it's one that we can make work the right way, but one of the keys to it is attract big players to work with you that the investors get excited about because that's how you get that's how in the early days you get a premium on your stock price.

Speaker #1: And we take it from there. So I'll have more to say about this. And I don't want to—I really want to do this in a separate press release and go into more detail.

Ted Karkus: And I don't want to, I really want to do this in a separate press release and go into more detail. I don't want to speak out of line. And I don't want to talk about people and partners without their permission. But I can tell you that we're already talking to major players.

So that's one of the keys, so it's a little more complicated than that I'm happy to go into a more but suffice it to say I'm not hearing across the shareholders on the largest shareholder I'm here to build value. There is an opportunity here I want to seize the opportunity that simple we don't need this opportunity, but we didn't need COVID-19 testing opportunity either we didnt have to do that but.

Speaker #1: I don't want to speak out of line. And I don't want to talk about people and partners without their permission. But I can tell you that we're already talking to major players.

Speaker #2: Thank you, Ted. The next question is: Will investors be diluted because of the crypto? We trust Ted, but we're afraid.

Noella Alexander: Thank you, Ted. The next question is, will investors be diluted because of the crypto? We trust Ted, but we're afraid.

We generate $100 million a year revenue, we made a lot of money for a while and the only reason were in this position now and our stock prices in five or $10 a share right now is because the insurance companies and the government cut us off.

Speaker #1: Love that question. The answer is we don't have to sell a single share of stock if we don't want to. The idea is to build value, and given all the things that we just covered, Crown Medical is valued at $50 million.

Ted Karkus: Love that question. The answer is we don't have to sell a single share of stock if we don't want to. The idea is to build value. And given all the things that we just covered, Crown Medical, $50 million, commercializing our esophageal cancer test, potentially selling Nebula Genomics. By the way, I should also mention on the Crown Medical, we are working already on doing something, entering what's called a DIP financing, debtor in possession. That is basically a financing against the collections. If we do that, then every shareholder should be thrilled because they know that there's a company of experts. This is all they do, is they finance litigation where they know that there's going to be a positive outcome from the litigation. And they'll give you money, and then they collect as the funds actually come in.

And if I knew that they were going to cut us off I wouldn't have spent all the money that we spent which was actually a rounding error.

Speaker #1: Commercializing our esophageal cancer test, potentially selling Nebula Genomics. By the way, I should also mention that at Crown Medical, we are very much in the process of doing something—entering what’s called a dip financing.

At the time that the money came in it was supposed to come in but because the money didn't come in what was a rounding error all of a sudden put us in financial distress for period of time I was embarrassed smart for a while I've gotten over it now it's.

Speaker #1: Debtor in possession. That is basically financing against the collections. If we do that, then every shareholder should be thrilled because they know that there's a company of experts.

It's my fault from the point of view that I'm, the CEO, but the fact of the matter is the government pulled the rug out from under US and so now we've cleaned up the whole company I did exactly what he did when he turned around the company doesn't years ago and our stock price was 65 centers. We've now cleaned up the company, we have tremendous opportunities ahead of us and.

Speaker #1: This is all they do: they finance litigation where they know there's going to be a positive outcome from the litigation. They'll give you money, and then they collect as the funds actually come in.

I'm really excited about the future company, how many years of protection do you have with the piece of art pathway don't quote me on this.

Speaker #1: So, you know, they give you the money at a discount. I don't know what the discount terms will be or whatever. I get, and I don't know if that technically, I don't even know if that's considered debt because I don't believe we even have to pay it back.

Ted Karkus: So, you know, they give you the money at a discount. I don't know what the discount terms will be or whatever. I guess, and I don't know if that technically, I don't even know if that's considered debt because I don't believe we even have to pay it back. Their collections come straight from the Crown Medical initiative. And so if that money comes in, hell, if enough money comes in, then I don't have to raise money. It can pay off some of the debts that we have right now. We can potentially even buy back stock and build our company. I would love to put some money to work at Nebula. I think we could double or triple the revenues of that company very profitably, very quickly. I can't do it while we're tight on capital. And, you know, just an example, the B-Smart esophageal cancer test.

But since we just got the pan it might be 20 years, but even if it isn't 20 years.

There are ways of continually updating the patents with new inventions additional protein markers as we're as we roll this out and we start to commercialize this product we will be gathering more data and effect, especially in the early days, we in effect, we'll be building, a larger and new clinical study.

Speaker #1: Their collections come straight from the Crown Medical initiative. And so, if that money comes in—hell, if enough money comes in—then I don't have to raise money.

Speaker #1: I can pay off some of the debt that we have right now. We can potentially even buy back stock and build our company. I would love to put some money to work at Nebula.

I'm real patients live at the time, our previous studies were done where we we had.

Speaker #1: I think we could double or triple the revenues of that company very profitably, very quickly. I can't do it while we're tight on capital.

There was a bank of specimens that we tested that were from patients that might've been tested 2345 years ago, and so we get to see how they progressed. So we do the test on the specimen and see what our test results work and then compare it to what happened to the patient that's why we know.

Speaker #1: You know, just as an example, the B-Smart esophageal cancer test. We're not, that's not initially going to be profitable, but I can tell you this much.

Ted Karkus: We're not, that's not initially going to be profitable. But I can tell you this much, I'm not spending a lot of money either in the early days. We're going to do a grassroots. And, you know, likely once we gather some momentum, I guarantee you there are going to be multi-billion dollar companies knocking on our door wanting to buy us and partner with us. So we have those kinds of opportunities. So the last thing in the world I'm going to do is destroy our stock price from here. I want to do the opposite. I want to build the value of it. The idea is to get the stock price going up, raise money as the stock price is going up. That's the purpose of the crypto treasury strategy.

Speaker #1: I'm not spending a lot of money either in the early days. We're going to do a grassroots approach, and, you know, likely once we gather some momentum, I guarantee you there are going to be multi-billion dollar companies knocking on our door wanting to buy us or partner with us.

That is the test work, so incredibly well because we already know the result of them. So another if somebody's at high risk.

Speaker #1: So we have those kinds of opportunities. So the last thing in the world I'm going to do is destroy our stock price from here.

In our test.

Well guess what since it was at a pace that we might have collected specimen three or five years ago. We now see that the patient actually get us off a joke answer what happened.

Speaker #1: I want to do the opposite. I want to build the value of it. The idea is to get the stock price going up, raise money as the stock price is going up.

That's how we know that our results are so phenomenal so but what we're going to do now is as we roll. This out with the G is we'll be testing patients as they're going we're going to be building a big database of information, it's going to be like a monster clinical studies, that's going to continue to validate what a great test we have.

Speaker #1: That's the purpose of a crypto treasury strategy. As I said, I can give you five or ten examples of companies who have just recently— not even three months ago, but three days ago—who are executing on successful crypto treasury strategies, and their stocks are going up one, two, three, four, five times.

Ted Karkus: As I said, I can give you five or ten examples of companies who have just recently, not even three months ago, three days ago, who are executing on successful crypto treasury strategies and their stocks are going up one, two, three, four, five times. 100%, 500%. Crazy men. I don't care if ours goes up 500% or not. But for you guys to worry, am I going to destroy our stock price from here? Absolutely not. There's no reason to. If we were going to destroy the stock price, then what's the point of doing it? I wouldn't do it. I just won't do it. So it's the same thing with COVID testing. We started off small. And by the way, I just want to point this out to everybody.

Speaker #1: 100%, 500%. Crazy amounts. I don't care if ours goes up 500% or not. But for you guys to worry, am I going to destroy our stock price from here?

Yes.

And as that happens, we will be able to formulate and build additional patents around our test. So not only do we potentially have 20 years on these pads, we're going to keep building on those patents I'm just going to be more valuable over time is a great number of biotech companies in health care in general has been very disappointing in the past year aside from a few exceptions prophase.

Speaker #1: Absolutely not. There's no reason to. If we were going to destroy the stock price, then what's the point of doing it? I wouldn't do it.

Speaker #1: I just won't do it. So, it's the same thing with COVID testing. We started off small. And, by the way, I just want to point this out to everybody.

Speaker #1: When we got into COVID testing, I think we had about a $2 stock when we decided to get into COVID testing. Within about six months, we had the ATM, we had the authorized shares.

Ted Karkus: When we got into COVID testing, I think we had about a $2 stock when we decided to get into COVID testing. Within about six months, and we had the ATM, we had the authorized shares, I didn't all of a sudden start dumping stock in the marketplace. In fact, I remembered our stock went up and then somebody wanted to do a deal with us. Our stock got to about $10. Somebody wanted to do a $6 deal. And by the end of the day, and I was talking about doing a raise with them. And then at two hours before four o'clock, they said at $6. And I said, are you kidding me? My stock's $10. Why would I do that? I said, and they crushed the stock. Okay, they said that's the only price we'll do. I said, no. And you know what happened?

Blockbuster product of the year.

We can have multiple blockbusters. So first of all yes, our <unk> softgel cancer tests can absolutely be a blockbuster.

In 12 months from now could be worth 10 times 10 times, the entire market cap of our company.

Speaker #1: I didn't all of a sudden start dumping stock in the marketplace. In fact, I remembered our stock went up, and then somebody wanted to do a deal with us.

Is it going to happen.

Maybe.

Speaker #1: Our stock got to about $10. Somebody wanted to do a $6 deal. By the end of the day, I was talking about doing a raise with them.

Let's see how this all plays out in terms of timing in terms of capital et cetera, et cetera, what I can tell you is all the scientists I am working with on this.

Speaker #1: And then, two hours before four o'clock, they said, "At six dollars." And I said, "Are you kidding me? My stock's ten dollars. Why would I do that?"

Are all Super excited they believe this is the best diagnostic test in the world for esophageal cancer and the key with esophageal cancer is.

Speaker #1: I said, and they crushed the stock. Okay. And they said, that's the only price we'll do. I said no. And you know what happened?

And accurate diagnostic test is critically needed to save lives it'll save insurance companies billions of dollars, but it will also save in enormous amount of lives.

Speaker #1: You know, after they crushed the stock for a day, the stock starts right back up again. Where did we do it? I did $5 million at, I think, I want to say about $11 a share.

Ted Karkus: You know, after they crushed the stock for a day, the stock starts right back up again. Where did we do it? I did $5 million at, I think, I want to say about $11 bucks a share. I can't remember exactly $10, $11 a share. And then two or three weeks later, we raised $37.5 million at $12.5 a share. We had the idea for the COVID testing when the stock price was two. We didn't raise money at two. We had the ATM. We had the shares authorized. I didn't go dumping stock at $2 to go get into the COVID testing. So if that's real life, what I actually did, don't assume that I'm going to do just the opposite and destroy everybody, one of the largest shareholders in the company. And we don't have to do this deal.

Speaker #1: I can't remember exactly. 10, 11 dollars a share. And then two or three weeks later, we raised 37 and a half million dollars at 12 and a half dollars a share.

And in addition to that that will also give other people that think that they are at risk peace of mind that they're not walking around everyday saying <expletive> am I going to die one Davis offer Jill cancer, it's really awful way to live and so we have a test that says no you're very low risk don't worry about it gives them peace of mind. They want it also then.

Speaker #1: We had the idea for the COVID testing when the stock price was $2. We didn't raise money at $2. We had the ATM. We had the shares authorized.

Speaker #1: I didn't go dumping stock at $2 to go get into the COVID testing business. So if that's real life, what I actually did, don't assume that I'm going to do just the opposite.

Saves billions of dollars as well so that's a very exciting a test I'm also excited about the crowd medical initiative I also think that nebula genomics is a hidden value now that Jason carcasses as turned it around.

Speaker #1: And destroy everybody, one of the largest shareholders in the company. And we don't have to do this deal. And we're not doing a reverse merger to just give away the company.

Ted Karkus: And we're not doing a reverse merger to just give away the company. Our company doesn't exist. So I know that there's a lot of fears out there, but they're irrational once you understand our strategy and what we're really trying to do. And again, I want to deploy the same strategy. If you get the stock price moving up, sell stock as it's going up, raising money. So it's actually anti-diluted. If you're raising money as the stock price is going up and you're raising the money opportunistically, it can actually be anti-diluted, which is what a lot of these other strategies are. They raise money at high stock prices. They invest into crypto.

And it's just a matter of what we do with it and a lot of that depends on capital and it depends on how the initiative goes with bank equity, whether we sell it or keep it if a lot of money starts coming in from crime medical and we grow it might be smarter strategically for the company to grow nebula, rather than sell it and then at the same time or crypto Treasury strategy.

Speaker #1: Our company doesn't exist. I know that there's a lot of fears out there, but they're irrational once you understand our strategy and what we're really trying to do.

Speaker #1: And again, I want to deploy the same strategy. If you get the stock price moving up, selling stock is going up, raising money, so it's actually anti-dilutive.

Speaker #1: If you're raising money as the stock price is going up and you're raising, and you're raising the money, opportunistically, it can actually be anti-dilutive, which is what a lot of these other strategies are.

Could dwarf everything else, we're doing right now so we'll have to see as all these things play out.

I really enjoyed the call Tonight I anticipate a press release, probably next week don't quote me it might be the week after our crypto Treasury strategy initiative and next steps.

Speaker #1: They raise money at high stock prices. They invest in crypto as long as you're trading at a premium to your net asset value; then any additional money that you raise, if you're raising above your net asset value, you're increasing your net asset value on a per-share basis.

Ted Karkus: As long as you're trading at a premium to your net asset value, then all any additional money that you raise, if you're raising above your net asset value, then you're increasing your net asset value on a per-share basis. Once you're increasing your net asset value on a per-share basis, and if you buy more crypto and you continue trading at a premium, you're just continuing to be actually anti-diluted. You're actually increasing your value on a per-share basis. It's a phenomenal strategy, and it's one that we can make work the right way. But one of the keys to it is attract big players to work with you that the investors get excited about because that's how you get, that's how in the early days you get a premium on your stock price. So that's one of the keys. So it's a little more complicated than that.

And then we have the proxy in two weeks, we will have another VNTR before the proxy before the final data of the proxy. The proxy is August 29, I don't know what day shareholders will start to get their proxies in the mail relatively soon please it's really important to the company.

Speaker #1: Once you're increasing your net asset value on a per-share basis, then if you buy more crypto and continue trading at a premium, you're just continuing to be actually anti-dilutive.

That you vote, we number one we need a form so please vote and number two it's in the best interest of the shareholders to vote.

Speaker #1: You're actually increasing your value on a per-share basis. It's a phenomenal strategy, and it's one that we can make work the right way.

For all of the items on there one of the big ones, obviously being the authorized shares that's what gives us the ability to move forward and attract multibillion dollar companies and multibillion dollar individuals' to partner with us to build this into something really special so I'm looking forward to next steps looking forward to the <unk>.

Speaker #1: But one of the keys to it is attracting big players to work with you that the investors get excited about, because that's how you get, that's how in the early days, you get a premium on your stock price.

Speaker #1: So, that's one of the keys. It's a little more complicated than that. I'm happy to go into it more, but suffice it to say, I'm not here to crush the shareholders; I'm the largest shareholder.

Ted Karkus: I'm happy to go into it more, but suffice it to say I'm not here to crush the shareholders on the largest shareholder. I'm here to build value. There's an opportunity here. I want to seize the opportunity. That's simple. We don't need this opportunity, but we didn't need COVID testing opportunity either. We didn't have to do that, but we generate $100 million a year revenues, and we made a lot of money for a while. And the only reason we're in this position now and our stock price isn't $5 or $10 a share right now is because the insurance companies and the government cut us off.

Two weeks potentially a press release in the next week or the following week on our crypto Treasury strategy I anticipate a press release or two coming on and be smart on things in the works. So there's a lot of good things going on and I'm excited for the future and I appreciate everybody listening to me for an hour.

Speaker #1: I'm here to build value. There's an opportunity here. I want to seize the opportunity, if that's simple. We don't need this opportunity, but we didn't need the COVID testing opportunity either.

Speaker #1: We didn't have to do that, but we generate $100 million a year in revenue. And we made a lot of money for a while.

Speaker #1: And the only reason we're in this position now, and our stock price isn't $5 or $10 a share right now, is because the insurance companies and the government cut us off.

Love to talk in this the one time I don't get in trouble Talkmore Noelle, you're the best I Love, having you on these calls. Thank you. So much that can run work and have a great day.

Speaker #1: And if I knew that they were going to cut us off, I wouldn't have spent all the money that we spent, which was actually a rounding error.

Ted Karkus: And if I knew that they were going to cut us off, I wouldn't have spent all the money that we spent, which was actually a rounding error at the time that the money came in that was supposed to come in. But because the money didn't come in, what was a rounding error all of a sudden put us in financial distress for a period of time. I was embarrassed for it for a while. I've gotten over it now. It's my fault from the point of view that I'm the CEO. But the fact of the matter is the government pulled the rug out from under us. And so now we've cleaned up the whole company. I did exactly what I did when I turned around the company a dozen years ago, and the stock price was 65 cents. We've now cleaned up the company.

Joining us today Purple <unk> second quarter 2025 is all policies are trading on the NASDAQ under the ticker symbol <unk>. The playback will be available on our website at 24 to 48 hours. After this presentation and that the <unk>. Please stay tuned for the next quarterly call next time.

Speaker #1: At the time, the money was supposed to come in. But because the money didn't come in, what was a rounding error all of a sudden put us in financial distress for a period of time.

Speaker #1: I was embarrassed for it for a while. I've gotten over it now. It's my fault from the point of view that I'm the CEO.

Speaker #1: But the fact of the matter is the government pulled the rug out from under us. And so now we've cleaned up the whole company.

Speaker #1: I did exactly what I did when I turned around the company a dozen years ago, and our stock price was $0.65. We've now cleaned up the company.

Speaker #1: We have tremendous opportunities ahead of us, and I'm really excited about the future of the company. Thank you for all those questions. I think we have time.

Ted Karkus: We have tremendous opportunities ahead of us, and I'm really excited about the future of that. Thank you for all those questions. I think we have time. Do we have another question or two?

Speaker #1: Do we have another question or two?

Speaker #2: Yeah, we have quite a few questions left, but we can squeeze into them.

Noella Alexander: Yeah, we have quite a few questions left, but we can squeeze in two more.

Speaker #1: Okay, so let’s at least do a couple more. Go for it.

Ted Karkus: Okay, so let's at least do a couple more. Go for it.

Speaker #2: Sounds good. The next question is, how many years of protection do you have with the B-smart patent?

Noella Alexander: Sounds good. The next question is, how many years of protection do you have with the B-Smart patent?

Speaker #1: Yeah, so with the B-Smart, I don't quote me on this, but since we just got the patent, it might be 20 years. But even if it isn't 20 years, there are ways of continually updating the patents with new inventions and additional protein markers. As we roll this out and we start to commercialize this product, we will be gathering more data, especially in the early days.

Ted Karkus: Yeah, so with the B-Smart, don't quote me on this, but since we just got the patent, it might be 20 years, but even if it isn't 20 years, there are ways of continually updating the patents with new inventions, additional protein markers. As we roll this out and we start to commercialize this product, we will be gathering more data. In effect, especially in the early days, we in effect will be building a larger and new clinical study on real patients live at the time. Our previous studies were done where we had a, there was a bank of specimens that we tested that were from, you know, patients that might have been tested two, three, four, five years ago. And so we get to see how they progress.

Speaker #1: We, in effect, will be building a larger and new clinical study on real patients, live at the time. Our previous studies were done where we had a bank of specimens that we tested.

Speaker #1: That were from, you know, patients that might have been tested two, three, four, five years ago. And so we get to see how they progress.

Speaker #1: So we do the test on the specimen and see what our test results were, and then compare it to what happens to the patient.

Ted Karkus: So we do the test on the specimen and see what our test results were and then compare it to what happened to the patient. That's why we know that the test works so incredibly well because we already know the results. So in other words, somebody's at high risk in our test. Well, guess what? Since it was on a patient, we might have collected specimens three or five years ago. We now see that the patient actually got esophageal cancer. What happened? That's how we know that our results are so phenomenal. So, but what we're going to do now is as we roll this out with the GIs, we'll be testing patients as they're going. We're going to be building a big database of information. It's going to be like a monster clinical study that's going to continue to validate what a great test we have.

Speaker #1: That's why we know that the test works so incredibly well. Because we already know the results of ... so in other words, if somebody's at high risk.

Speaker #1: In our test, well, guess what? Since it was on a patient, we might have collected the specimen three or five years ago. We now see, did the patient actually get esophageal cancer or what happened?

Speaker #1: That's how we know that our results are so phenomenal. But what we're going to do now, as we roll this out with the GIs, is test patients as they're going.

Speaker #1: We're going to be building a big database of information. It's going to be like a monster clinical study that's going to continue to validate what a great test we have.

Speaker #1: And as that happens, we will be able to formulate and build additional patents around our test. So not only do we potentially have 20 years on these patents, we're going to keep building on those patents.

Ted Karkus: And as that happens, we will be able to formulate and build additional patents around our test. So not only do we potentially have 20 years on these patents, we're going to keep building on those patents. It's going to be more valuable every time. Thank you. Great question. What's the next one, Noella?

Speaker #1: It's just going to be more valuable over time. Thank you. Great question. What's the next one, Noella?

Speaker #2: Thank you, Ted. And then your last question, or more of a comment for today, is that a great number of biotech companies in healthcare, in general, have been very disappointing in the past year, aside from a few exceptions.

Noella Alexander: Thank you, Ted. And then your last question or more of a comment for today is, as a great number of biotech companies and healthcare in general have been very disappointing in the past year, aside from a few exceptions, ProPhase could have the blockbuster product of the year.

Speaker #2: ProPhase could have the blockbuster product of the year.

Speaker #1: We can have multiple blockbusters. So, first of all, yes, our B-Smart esophageal cancer test could absolutely be a blockbuster. In 12 months from now, it could be worth 10 times, 10 times the entire market cap of our company.

Ted Karkus: We could have multiple blockbusters. So first of all, yes, our B-Smart esophageal cancer test could absolutely be a blockbuster. In 12 months from now, it could be worth 10 times the entire market cap of our company. Is it going to happen? Maybe. You know, let's see how this all plays out in terms of timing, in terms of capital, et cetera, et cetera. What I can tell you is all the scientists I am working with on this are all super excited. They believe this is the best diagnostic test in the world for esophageal cancer. And the key with esophageal cancer is an accurate diagnostic test is critically needed to save lives. It'll save insurance companies billions of dollars, but it will also save an enormous amount of lives.

Speaker #1: Is it going to happen? Maybe. I, you know, let's see how this all plays out in terms of timing, in terms of capital, etc., etc.

Speaker #1: What I can tell you is all the scientists I am working with on this are all super excited. They believe this is the best diagnostic test in the world for esophageal cancer.

Speaker #1: And the key with esophageal cancer is that an accurate diagnostic test is critically needed to save lives. It'll save insurance companies billions of dollars, but it will also save an enormous amount of lives.

Speaker #1: And in addition to that, it will also give other people who think that they are at risk peace of mind, so they’re not walking around every day saying, "Shit, am I going to die one day of esophageal cancer?"

Ted Karkus: And in addition to that, it will also give other people that think that they are at rest, peace of mind, that they're not walking around every day saying, "Shit, am I going to die one day of esophageal cancer?" It's a really awful way to live. And so we have a test that says, "No, you're at very low risk. Don't worry about it." It gives them peace of mind. It also then saves billions of dollars as well. So that's a very exciting test. I'm also excited about the Crown Medical initiative. I also think that Nebula Genomics is a hidden value. Now that Jason Karkus has turned it around, and it's just a matter of what we do with it. And a lot of that depends on capital, and it depends on how the initiative goes with Think Equity, whether we sell it or keep it.

Speaker #1: It's really an awful way to live. And so we have a test that says, no, you're at very low risk. Don't worry about it. It gives them peace of mind.

Speaker #1: It also then saves billions of dollars as well, so that's a very exciting test. I'm also excited about the Crown Medical initiative. I also think that Nebula Genomics is a hidden value now that Jason Karkus has turned it around.

Speaker #1: And it's just a matter of what we do with it, and a lot of that depends on capital. It also depends on how the initiative goes with ThinkEquity, whether we sell it or keep it.

Speaker #1: If a lot of money starts coming in from Crown Medical and you know, we grow, it might be smarter strategically for the company to grow Nebula rather than sell it.

Ted Karkus: If a lot of money starts coming in from Crown Medical, and you know, we grow, it might be smarter strategically for the company to grow Nebula rather than sell it. And then at the same time, you know, a crypto treasury strategy could dwarf everything else we're doing right now. So we'll have to see as all these things play out. I really enjoyed the call today. I anticipate a press release probably next week. Don't quote me. It might be the week after on our crypto treasury strategy initiative and next steps. And then we have the proxy in two weeks. We will have another BNDR before the proxy, before the final date of the proxy. The proxy is August 29th. I don't know what day shareholders will start to get their proxies in the mail relatively soon. Please, it's really important to the company that you vote.

Speaker #1: And then at the same time, you know, our crypto treasury strategy could dwarf everything else we're doing right now. So we'll have to see as all these things play out.

Speaker #1: I really enjoyed the call today. I anticipate a press release, probably next week. Don't quote me; it might be the week after. This will be regarding our crypto treasury strategy initiative and next steps.

Speaker #1: And then we have the proxy in two weeks. We will have another VNDR before the proxy, before the final date of the proxy. The proxy is August 29.

Speaker #1: I don't know what day shareholders will start to get their proxies in the mail, but it will be relatively soon. Please, it's really important for the company that you vote.

Speaker #1: Number one, we need a quorum, so please vote. And number two, it's in the best interest of the shareholders to vote for all of the items on there.

Ted Karkus: Number one, we need a quorum, so please vote. And number two, it's in the best interest of the shareholders to vote for all of the items on there. You know, one of the big ones obviously being the authorized shares. That's what gives us the ability to move forward and attract, you know, multi-billion dollar companies and multi-billion dollar individuals to partner with us to build this into something really special. So I'm looking forward to next steps. Looking forward to the BNDR in two weeks, potentially a press release either next week or the following week on our crypto treasury strategy. I anticipate a press release or two coming on B-Smart on things in the works. So there's a lot of good things going on. I'm excited for the future, and I appreciate everybody listening to me for an hour.

Speaker #1: You know, one of the big ones, obviously, being the authorized shares. That's what gives us the ability to move forward and attract, you know, multi-billion dollar companies and multi-billion dollar individuals.

Speaker #1: To partner with us to build this into something really special. So, I'm looking forward to next steps. Looking forward to the VNDR in two weeks.

Speaker #1: Potentially, there will be a press release either next week or the following week regarding our crypto treasury strategy. I anticipate a press release or two coming on B-smart about things in the works.

Speaker #1: So there's a lot of good things going on. I'm excited for the future, and I appreciate everybody listening to me for an hour. Obviously, I'd love to talk, and this is the one time I don't get in trouble for talking a lot.

Ted Karkus: I love to talk, and this is the one time I don't get in trouble talking a lot. Noella, you're the best. I love having you on these calls. Thank you so much. Thank you to Renmark, and have a great day.

Speaker #1: Noella, you're the best. I love having you on these calls. Thank you so much. Thank you to Renwar, and have a great day.

Speaker #2: Thank you so much, Ted. And once again, thank you to everyone for joining us today for ProPhase Labs' second quarter 2025 results. ProPhase is trading on the NASDAQ under the ticker symbol PRPH.

Noella Alexander: Thank you so much, Ted. And once again, thank you to everyone for joining us today for ProPhase Labs' second quarter 2025 results. ProPhase is trading on the NASDAQ under the ticker symbol PRPH. The playback will be available on our website 24 to 48 hours after this presentation under the VNDR LabRead tab. Please stay tuned for the next quarterly call and see you next time.