ProPhase Labs Says On Nov 21, Received Confirmation From Avtech Agreeing To Continue Its Forbearance Under Co's Existing Equipment Lease; Under Avtech's Updated Payment Schedule, Co To Make Weekly Payments Beginning Nov 28, Until Outstanding Past-Due Amounts Are Current

On November 21, 2025, ProPhase Labs, Inc. (the "Company") received written confirmation from Avtech Capital, LLC ("Avtech") agreeing to continue its forbearance under the Company's existing equipment lease. Under Avtech's updated payment schedule, the Company will make weekly payments beginning November 28, 2025, until outstanding past-due amounts are current. Once current, the original monthly payment schedule under the February 25, 2025, forbearance arrangement will resume.

The Company remains in communication with Avtech regarding these payments, and the written confirmation provides a clear schedule for bringing the lease current. Operations continue in the ordinary course.

Item 8.01 Other Events

On November 5, 2025, a judgment relating to the Avtech equipment lease was entered in Utah. The Company first received the judgment by mail on November 19, 2025. Upon receipt, the Company promptly contacted Avtech and obtained written confirmation on November 21, 2025 that forbearance would continue under the updated schedule described in Item 1.01.

This matter concerns a lease arrangement and does not affect the Company's operations, liquidity, or financial reporting. The Company's most recent Form 10-Q accurately reflected all required accruals as of the reporting date, and no restatement is required. The Company has been making payments consistently with its obligations and expects to bring the Avtech lease current within the timeframe set forth in the updated schedule.

Mitigation and Ongoing Activities

The Company continues to review and manage its contractual arrangements in the ordinary course. Management is in communication with counterparties as part of regular planning and may enter into confirmatory amendments, extensions, or similar routine agreements from time to time to support operational continuity. Additional details regarding such matters may be provided in future filings, as appropriate.