ProPhase Labs, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

STOCKHOLDERS' EQUITY AND STOCK COMPENSATION (Tables)

STOCKHOLDERS' EQUITY AND STOCK COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2013

Schedule Of Share Based Compensation Terms Of Grant Of Stock Options [Table Text Block]

Presented below is a summary of the terms of the grant of options:

	Year Ended December 31,
	2013		2012		2011
Number of options granted		420,500		15,000		220,000
Vesting period		2 - 3 years		3 years		4 years
Maximum term of option from date of grant		6 - 7 years		7 years		7 years
Exercise price per share		$1.48 - $1.65		$1.36		$0.87-$1.17
Weighted average fair value per share of options granted during the year		$0.56		$0.85		$0.58

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Presented below is a summary of assumptions used in determining the fair value of the stock options at the date of grant:

	Year Ended December 31,
	2013			2012		2011
Expected option life		3.75 - 4.5 years		4.5 years		4.75 years
Weighted average risk free rate		0.36	%	0.75	%	1.28	%
Dividend yield		0	%	0	%	0	%
Expected volatility		47.33% - 82.09	%	83.06	%	75.84% - 78.62	%

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the status of our stock options granted to both employees and non-employees as of December 31, 2013, 2012 and 2011 and changes during the years then ended is presented below (in thousands, except per share data):

	Year Ended December 31,
	2013				2012			2011
				Weighted Average			Weighted Average			Weighted Average
	Shares		Exercise Price		Shares	Exercise Price		Shares	Exercise Price
Options outstanding - beginning of year		1,307	$	1.72	1,333	$	1.88	1,300	$	2.99
Granted		420		1.64	15		1.36	220		1.10
Exercised		(25)		1.08	-		-	-		-
Cancelled		(64)		4.53	(41)		8.11	(187)		8.67
Options outstanding - end of year		1,638	$	1.60	1,307	$	1.72	1,333	$	1.88

Options granted and subject to future vesting		884	$	1.32	719	$	1.01	957	$	1.02

Exercisable, at end of year		754			588			376
Available for grant		262			-			14

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The following table summarizes information about stock options outstanding and stock options exercisable at December 31, 2013 (in thousands, except remaining life and per share data):

	Options Outstanding and Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price Per Share
$0.87 - $1.17	675	4.6	$	1.01
$1.18 - $1.65	11	6.1	$	1.40
$1.66 - $9.50	40	0.8	$	9.50
$9.51 - $13.80	27	2.0	$	13.80
Total	753		$	1.93