ProPhase Announces Change in Tax Treatment of 2018 Dividends
April 09 2019 - 4:57PM
ProPhase Labs, Inc. (NASDAQ: PRPH,
www.ProPhaseLabs.com) announced a change in the reporting of
dividends paid to its stockholders in 2018.
The Company previously reported its 2018
distributions as taxable dividends. Following an earnings and
profits analysis, the Company determined the 2018 distributions are
now considered to be return of capital (non-dividend)
distributions.
The change in tax treatment will also affect the
shareholders’ tax basis in their shares. To assist investors with
tax-basis reporting, Form 8937 (Report of Organizational Actions
Affecting Basis of Securities) has been posted on the Investor
Relations section of the ProPhase website at: “2018 ProPhase Labs
Form 8937 Form 1099-Div Information”.
Shareholders should consult their tax advisors
to determine how this change may affect their 2018 taxes.
Corrected IRS Form 1099-DIV statements
reflecting the revised tax reporting of the 2018 dividends will be
mailed to shareholders. Shareholders who hold their shares through
a bank or broker should expect to receive a corrected Form 1099-DIV
from those institutions.
This change in tax treatment does not affect the
Company’s financial results previously reported.
About the Company
We are a vertically integrated and diversified
branding, marketing and technology company with deep experience
with over-the-counter (“OTC”) consumer healthcare products, dietary
supplements and other remedies. We are engaged in the research,
development, manufacture, distribution, marketing and sale of OTC
consumer healthcare products, dietary supplements and other
remedies in the United States. This includes the development and
marketing of dietary supplements under the TK Supplements® brand, a
wholly-owned subsidiary of the Company.
In August 2017, we formed a new, additional
wholly-owned subsidiary, ProPhase Digital Media, Inc., a Delaware
corporation (“PDM”). Our objective is for PDM to become an
independent full-service direct marketing agency. PDM’s first
initiative will be to market the TK Supplements® product line. If
successful, this may lead to the marketing of other company’s
consumer products.
In addition, the Company also continues to
actively pursue acquisition opportunities for other companies,
technologies and products inside and outside the consumer products
industry. For more information visit us at
www.ProPhaseLabs.com.
Investor Contact
Ted Karkus, Chairman and CEO
ProPhase Labs, Inc.
(267) 880-1111
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