Investment in Hoth Therapeutics, Inc.

12 Months Ended

Dec. 31, 2019

Investment in Hoth Therapeutics, Inc. [Abstract]

Investment in Hoth Therapeutics, Inc.

Note 5. Investment in Hoth Therapeutics, Inc.

Hoth is a development stage biopharmaceutical company focused on unique targeted therapeutics for patients suffering from indications such as atopic dermatitis, also known as eczema. Hoth's primary asset is a sublicense agreement with Chelexa Biosciences, Inc. ("Chelexa") pursuant to which Chelexa has granted Hoth an exclusive sublicense to use its BioLexa products for the treatment of eczema.

On February 20, 2019, Hoth closed its initial public offering (the "IPO") at an initial offering price to the public of $5.60 per share. The Company records this investment at fair value and records any change in fair value in the statements of operations (see Note 7).

On October 2, 2019, the Board of Directors approved a distribution to the Company's stockholders of 100,000 Hoth Shares held by the Company. Accordingly, each of the Company's stockholders received one (1) share of Hoth common stock for every twenty-nine (29) shares of Company common stock held as of 5 p.m. Eastern Time on October 21, 2019, the dividend record date. The Company did not distribute fractional shares of Hoth common stock, and any fractional shares were rounded down to the nearest whole share.

The following summarizes the Company investment in Hoth:

Security Name	Shares Owned as of December 31, 2019		Fair value per Share as of December 31, 2019		Fair value as of December 31, 2019 (in thousands)
HOTH		1,636,230	$	6.19	$	10,128

The fair value of Hoth common shares as of December 31, 2019 was based on the closing price of $6.19 reported on The NASDAQ Capital Market as of December 31, 2019.