12. Subsequent Events

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the consolidated financial statements were issued for potential recognition or disclosure. Other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements.

On July 16, 2019, Professional Diversity Network, Inc. (the “Company”) received a letter from The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Nasdaq staff granted the Company an extension until September 16, 2019 to regain compliance with NASDAQ Listing Rule 5550(b), which requires a minimum $2,500,000 stockholders’ equity, $35,000,000 market value of listed securities, or $500,000 net income from continuing operations.

As efforts to meet the NASDAQ’s requirement, the Company has completed two following private placements in total amount of $3,100,000 net proceeds:

On June 11, 2019, the Company entered into a Stock Purchase Agreement with one purchaser Ms. Xiaoqian (the “Purchaser Zheng”), pursuant to which the Purchaser Zheng agreed to purchase 500,000 shares (the “Shares”) of the Company’s common stock for $2.20 per share for gross proceeds of $1,100,000 (the “Purchase Price”). The Purchase Zheng Price was received by the Company on June 14, 2019.

On August 5, 2019, the Company entered into a Stock Purchase Agreement with one purchaser Ms. Yingling Wu (the “Purchaser Wu”), pursuant to which the Purchaser Wu agreed to purchase 1,142,857 shares (the “Shares”) of the Company’s common stock for $1.75 per share for gross proceeds of $2,000,000 (the “Purchase Price”). This transaction was closed on August 6, 2019.