ProPhase Labs, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Components of Marketable Securities

The following is a summary of the components of our marketable securities and the underlying fair value input level tier hierarchy (see long-lived assets below) (in thousands):

	December 31, 2017									June 30, 2018
	Amortized		Unrealized		Unrealized			Market		Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. treasuries	$	1,744		-		-			1,744		929		-		-			929
Corporate bonds		16,943		-		(78	)		17,021		5,900				(53	)		5,847
	$	18,687	$	-	$	(78	)	$	18,765	$	6,829	$	-	$	(53	)	$	6,776

Components of Inventory

The components of inventory are as follows (in thousands):

	June 30, 2018		December 31, 2017
Raw materials	$	1,383	$	1,269
Work in process		466		245
Finished goods		537		17
	$	2,386	$	1,531

Schedule of Fair Value of Financial Instruments

We account for our marketable securities at fair value pursuant to Accounting Standards Codification, or ASC, 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive income or loss.

	As of June 30, 2018
	Level 1		Level 2		Level 3		Total
Marketable securities
U.S. government obligations	$	-	$	929	$	-	$	929
Corporate obligations		-		5,847		-		5,847
	$	-	$	6,776	$	-	$	6,776

Schedule of Disaggregates by Revenue

The following table disaggregates the Company’s revenue by revenue source for the three and six months ended June 30, 2018 (in thousands):

	Three months ended		Six months ended
Revenue by Customer Type	June 30, 2018		June 30, 2018
Contract manufacturing	$	3,106	$	6,440
Retail		80		154
Total Revenue	$	3,186	$	6,594