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

Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events	9 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 18 - Subsequent Events *Separation Agreement* On October 4, 2022 (the “Separation Effective Date”), the Company and Bill White, the Company’s then Chief Financial Officer, agreed to a voluntary separation of employment from the Company, effective as of the Separation Effective Date. Mr. White will serve as a consultant to the Company through December 31, 2022. In connection with the separation, the Company entered into a Separation Agreement and Release (the “Separation Agreement”) with Mr. White, dated as of the Separation Effective Date, which provides that, subject to his execution and non-revocation of a release of claims against the Company, the Company will pay Mr. White a separation payment of $10,000. The total compensation to be paid to Mr. White for his consulting services will be $90,000, subject to the terms and conditions described in the Separation Agreement. *Stock Options Granted* On October 9, 2022, the Company issued 100,000 stock options under the 2022 Plan. The Company will recognize an aggregate of $772,000 of share-based compensation expense related to the issuance of these stock options over a weighted average period of 3.0 years. On October 30, 2022, the Company issued 60,000 stock options under the 2022 Plan. The Company will recognize an aggregate of $449,000 of share-based compensation expense related to the issuance of these stock options over a weighted average period of 2.4 years. *Other* In November 2022, the Company purchased an aggregate of 664,592 shares of common stock of a non-affiliated publicly traded company for $2.9 million. Mr. Karkus, the Company’s Chairman and Chief Executive Officer, holds less than 1% of the issued and outstanding shares of common stock in the same company, which interests were acquired before discussions began with respect to the Company’s purchase of the 664,592 shares. The ownership interest of Mr. Karkus was disclosed to the board of directors prior to entering into these transactions, and the board of directors unanimously approved these transactions.

Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 18 - Subsequent Events

Separation Agreement

On October 4, 2022 (the “Separation Effective Date”), the Company and Bill White, the Company’s then Chief Financial Officer, agreed to a voluntary separation of employment from the Company, effective as of the Separation Effective Date. Mr. White will serve as a consultant to the Company through December 31, 2022.

In connection with the separation, the Company entered into a Separation Agreement and Release (the “Separation Agreement”) with Mr. White, dated as of the Separation Effective Date, which provides that, subject to his execution and non-revocation of a release of claims against the Company, the Company will pay Mr. White a separation payment of $10,000. The total compensation to be paid to Mr. White for his consulting services will be $90,000, subject to the terms and conditions described in the Separation Agreement.

Stock Options Granted

On October 9, 2022, the Company issued 100,000 stock options under the 2022 Plan. The Company will recognize an aggregate of $772,000 of share-based compensation expense related to the issuance of these stock options over a weighted average period of 3.0 years.

On October 30, 2022, the Company issued 60,000 stock options under the 2022 Plan. The Company will recognize an aggregate of $449,000 of share-based compensation expense related to the issuance of these stock options over a weighted average period of 2.4 years.

Other

In November 2022, the Company purchased an aggregate of 664,592 shares of common stock of a non-affiliated publicly traded company for $2.9 million. Mr. Karkus, the Company’s Chairman and Chief Executive Officer, holds less than 1% of the issued and outstanding shares of common stock in the same company, which interests were acquired before discussions began with respect to the Company’s purchase of the 664,592 shares. The ownership interest of Mr. Karkus was disclosed to the board of directors prior to entering into these transactions, and the board of directors unanimously approved these transactions.