ProPhase Labs, Inc. announced an innovative step forward in cancer treatment research with the introduction of Project ZenQ-AI. This project employs the Company's AI platform which was meticulously developed with leading AI technology platforms and systems. The Company is harnessing its extensive genomic database--built over the last six years from whole genome sequencing tests (WGS) spanning more than 130 countries, and equivalent to roughly 150 million ancestry SNP-based tests. Whole Genome Sequencing (WGS) offers an exhaustive exploration of an individual's entire DNA, capturing all three billion base pairs for a complete and detailed genetic blueprint.

This comprehensive approach contrasts sharply with SNP tests, which target specific genetic variations at known locations, typically analyzing between 100,000 to 1 million specific points. This targeted approach helps to minimize damage to healthy cells and other side effects. ADCs represent a potent class of cancer therapies,blending the specificity of monoclonal antibodies with cytotoxic drugs.

Leveraging ZenQ-AI with both genomic and proteomic data is believed to enable the rapid identification of biomarkers and mutations driving cancer, streamlining the design of ADCs for precise targeting. This integration promises more effective and personalized treatments, though rigorous experimental validation remains crucial for ensuring safety and efficacy of new therapeutic candidates. Decoding the Genomic Advantage: WGS over Ancestry SNP-Based Tests: Central to Project ZenQ-AI's innovative approach is the utilization of whole genome sequencing, and its comprehensive method of examining all 3 billion base pairs of the human genome.

This provides a much greater advantage in exploring genomic changes than ancestry SNP-based tests, which only look at mutations in specific points in the genome. The Company plans to pursue initial commercialization of the BE-Smartesophageal cancer diagnostic test in the second half of 2024. The global diversity of Nebula's data base greatly enriches the value of the data and enhances Project ZenQ-AI's development of algorithms, thereby allowing the identification of unique genetic markers and therapeutic targets across diverse populations and enhancing the breadth and effectiveness of ADC treatments.

The Company believes that Project ZenQ-AI represents the forefront of AI-driven research in ADC development. By combining the extensive WGS database of Nebula Genomics with the specialized insights from the BE-Smart Cancer Test, the Company believes that Project Zen Q-AI is set to invigorate the field of identification of novel, actionable targets for cancer therapies. Beyond EAC: The Future of Oncology: While initially focusing on early diagnosis of EAC, the implications of Project ZenQ-AI extend far beyond.

The platform sets a new milestone for ProPhase, offering the promise of more effective, and less toxic cancer treatments across a variety of cancer types.