---
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"
generated_at: "2026-05-18T18:49:38.695144+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# ProPhase Labs borrows $500K each from CEO and investor; issues 500K unvested warrants at $0.60

## Summary
- 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.

## SEC filing metadata
- 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
- event_type: debt
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001641172-25-016710
- JSON: https://secwatch.observer/filing/0001641172-25-016710.json
- Plain text: https://secwatch.observer/filing/0001641172-25-016710.txt

## Key facts
- Debt Financings
  ProPhase Labs, Inc. incurred loan of $500,000 with Ted Karkus at 10% maturing twelve (12) months from the execution date.
  - Instrument: loan
  - Principal: $500,000
  - Counterparty: Ted Karkus
  - Rate: 10%
  - Maturity: twelve (12) months from the execution date
  - Event: incurrence
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/868278/000164117225016710/0001641172-25-016710-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.