Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 12 – Subsequent Events


On October 1, 2020, we issued a common stock purchase warrant to a consultant to purchase 50,000 shares of our common stock at an exercise price of $5.00 per share. On October 16, 2020 and on November 6, 2020, we granted options to certain employees to acquire our common stock at an exercise price of $7.04 and $9.49 per share, respectively, pursuant to the 2010 Stock Plan. Additionally, on October 24, 2020, we granted options to a consultant to acquire our common stock at an exercise price of $8.93 per share.


On October 22, 2020, we entered into a promissory note with an unrelated third party pursuant to which we loaned $300,000 to such entity. The promissory note bears interest at a rate of 10% per annum and is due December 31, 2020.


On October 23, 2020, we completed the acquisition of all of the issued and outstanding shares of capital stock of Confucius Plaza Medical Laboratory Corp. (“Confucius Labs”) for approximately $2.5 million in cash, subject to certain adjustments, pursuant to the terms of a Stock Purchase Agreement, by and among the Company, Confucius Labs, Pride Diagnostics LLC (“Pride Diagnostics”) and the members of Pride Diagnostics (together with Pride Diagnostics, the “Seller Parties”), and Arvind Gurnani, as representative of the Seller Parties. Confucius Labs is the owner of a 4,000 square foot Clinical Laboratory Improvement Amendments (CLIA) accredited laboratory located in Old Bridge, New Jersey, which ProPhase Diagnostics acquired as part of the transaction. On October 23, 2020 (the “Effective Date”), we entered into a Consulting Agreement with Mr. Gurnani for a six month period from the Effective Date for an aggregate total of $300,000.


On November 13, 2020, we closed on the sale of our corporate headquarters building located in Doylestown, Pennsylvania to Lenape Valley Foundation. The total sales price of the property, which was paid in cash, was $2.2 million, less closing costs and related expenses of approximately $142,000.