13. Subsequent Events

In March 2021, IPDN entered into a stock purchase agreement ("Stock Purchase Agreement") to purchase a significant equity stake in RemoteMore USA Inc. (“RemoteMore”), a Delaware corporation.  According to an arrangement reached by the parties, IPDN made an initial refundable deposit of $60,000.00 to RemoteMore to facilitate the completion of the transaction.  In August 2021, based on milestones achieved in the negotiations, IPDN completed the purchase of all preferred stock in RemoteMore, constituting 5.625% of all outstanding stock of RemoteMore, for $180,000.00.  At the same time, IPDN made an additional refundable deposit of $300,000.00 to RemoteMore to further facilitate the completion of the transaction.  RemoteMore will use the deposits towards closing costs.  If the transaction closes as planned, these deposits will be counted towards the purchase price provided in the Stock Purchase Agreement.  If the transaction for whatever reasons is not closed, RemoteMore shall refund these deposits to IPDN. 

On July 9, 2021, the Company closed the registered direct offering, pursuant to which certain institutional accredited investors purchased 1,470,588 shares of the Company’s common stock, par value $0.01 per share, at a per share price equal to $1.70 for gross proceeds of $2,499,999.60. As a result, the stockholders’ equity of the Company as of July 9, 2021 is approximately $2.9 million. On July 15, 2021, the Nasdaq has determined that the Company complies with the Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders’ equity of at least $2.5 million. However, the Company needs to evidence compliance upon filing its future reports or it may be subject to delisting.