{"schema_version":"secwatch.filing_event.v1","accession":"0001641172-25-016710","form_type":"8-K","ticker":"PRPH","cik":"0000868278","company_name":"ProPhase Labs, Inc.","filed_at":"2025-06-26T23:59:59+00:00","discovered_at":"2026-05-14T18:02:51.524761+00:00","generated_at":"2026-05-18T18:49:38.695144+00:00","sec_items":["1.01","2.03","3.02","9.01"],"event_type":"debt","sentiment":"neutral","materiality_score":0.55,"calibrated_materiality_score":0.55,"confidence":"high","headline":"ProPhase Labs borrows $500K each from CEO and investor; issues 500K unvested warrants at $0.60","bullets":["Borrowed $500,000 each from CEO Ted Karkus and an unaffiliated investor (total $1M) under two identical loan agreements.","Each loan has 20% original issue discount, 10% annual interest, 12-month maturity; secured but subordinated to up to $6M other lenders.","Issued 500,000 unvested warrants at $0.60 exercise price; vest only upon shareholder approval to increase authorized shares.","CEO loan is a related-party transaction approved by the Audit Committee."],"urls":{"canonical":"https://secwatch.observer/filing/0001641172-25-016710","json":"https://secwatch.observer/filing/0001641172-25-016710.json","markdown":"https://secwatch.observer/filing/0001641172-25-016710.md","text":"https://secwatch.observer/filing/0001641172-25-016710.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/868278/000164117225016710/0001641172-25-016710-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/868278/000164117225016710/form8-k.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-05-18T18:49:38.695144+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"1d0e172532a5dfc7ce366247fa21e76434759f07","claim":"ProPhase Labs, Inc. incurred loan of $500,000 with Ted Karkus at 10% maturing twelve (12) months from the execution date.","evidence_excerpt":"the Loan Agreement constitutes a related party transaction under Item 404(a) of Regulation S-K. The material terms of the loan are a non-convertible loan in the amount of $500,000, with a 20% original issue discount. The loan bears interest at an annual rate of 10% and matures twelve (12) months from the execution date. The Company will pay Mr. Karkus a","evidence_source":"SEC 8-K Item 2.03/2.04","evidence_url":"https://www.sec.gov/Archives/edgar/data/868278/000164117225016710/0001641172-25-016710-index.htm","confidence":0.9,"family_label":"Debt Financings","details":[{"label":"Instrument","value":"loan"},{"label":"Principal","value":"$500,000"},{"label":"Counterparty","value":"Ted Karkus"},{"label":"Rate","value":"10%"},{"label":"Maturity","value":"twelve (12) months from the execution date"},{"label":"Event","value":"incurrence"}],"fact_type":"debt_financing"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}