Note 1 - Background and Organization

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

NOTE

1.

BACKGROUND AND ORGANIZATION

Business Operations

PLx Pharma Inc. (the “Company”, "we," "our" or "us"), together with its subsidiaries PLx Opco Inc. and PLx Chile SpA, is a late stage startup specialty pharmaceutical company focusing initially on commercializing

two

patent-protected lead products: VAZALORE

TM

 

325

mg and VAZALORE

TM

 

81

mg (referred to together as “VAZALORE”). VAZALORE

325

mg is approved by the U.S. Food and Drug Administration (“FDA”) for over-the-counter distribution and is the

first

ever liquid-filled aspirin capsule.

PLx Chile SpA was formed on

September 12, 2011

as a wholly-owned subsidiary of PLx Opco Inc. The Company dissolved its wholly-owned and dormant subsidiary Dipexium Pharmaceuticals Ireland Limited in

December 2018.

Organization, Reincorporation, and Merger with Dipexium Pharmaceuticals, Inc.

PLx Opco Inc., which was known as PLx Pharma Inc. immediately prior to the Merger described below, was originally incorporated in the State of Texas on

November 12, 2002

under the name of ZT MediTech, Inc. (“ZTM”). In

December 2002,

ZTM changed its name to GrassRoots Pharmaceuticals, Inc. (“GrassRoots”). Business commenced upon initial capitalization on

December 4, 2002.

In

March 2003,

GrassRoots changed its name to PLx Pharma Inc. (“PLx Texas”). In

December 2013,

PLx Texas converted from a Texas corporation to a Texas limited liability company and changed its name to PLx Pharma LLC ("PLx LLC").  In

July 2015,

PLx LLC reincorporated into a Delaware corporation, renamed PLx Pharma Inc. ("Old PLx"), effective

July 27, 2015.

In

December 2016,

Old PLx entered into an Agreement and Plan of Merger and Reorganization among Old PLx, Dipexium Pharmaceuticals, Inc. (“Dipexium”) and Dipexium AcquireCo. (the “Merger”). The Merger closed on

April 19, 2017.

Pursuant to the terms of the Merger and after the consummation of the Merger, Old PLx was renamed PLx Opco Inc. and became a wholly-owned subsidiary of Dipexium, and Dipexium was renamed PLx Pharma Inc. and became the continuing registrant and reporting company. The Merger was accounted for as a reverse acquisition business combination and Old PLx’s historical consolidated financial statements have replaced Dipexium’s historical consolidated financial statements with respect to periods prior to the completion of the Merger.