Equity Method Investment	12 Months Ended
Dec. 31, 2018
Equity Method Investment
Equity Method Investment	5. Equity Method Investment On February 11, 2018, the Company entered into a joint venture agreement (the “JV Agreement”) with Shenzen Hepalink Pharmaceutical Group Co., Ltd., a Chinese entity (“Hepalink”) that is a related party and significant shareholder in the Company, pursuant to which we formed a Joint Venture company named Shenzen Arimab BioPharmaceuticals Co., Ltd., or SABC, a People’s Republic of China Company, for developing and commercializing products for infectious diseases. Under the terms of the JV Agreement, the Company is obligated to contribute $1,000,000 and the license of its technology relating to the Company’s AR-101 and AR-301 product candidates for use by SABC in the territories of the Republic of China, Hong Kong, Macau and Taiwan (the “Territory”) and initially owns 49% of SABC. On July 2, 2018, SABC received final approval from the government of the Peoples Republic of China. On August 6, 2018, the Company entered into an amendment to the JV Agreement with Hepalink whereby the Company agreed to additionally contribute an exclusive, revocable, and royalty-free right and license to its AR-105 product candidate in the Territory. Pursuant to the JV Agreement and the amendment, Hepalink initially owns 51% of SABC and is obligated to contribute the equivalent of $7.2 million to SABC. Additionally, Hepalink is obligated to make an additional equity investment of $10,800,000 or more at the time of the SABC’s first future financing. The Company evaluated the accounting for the JV Agreement entered into noting that it did not meet the accounting definition of a joint venture and instead meets the definition of a variable interest entity. The Company concluded that it is not the primary beneficiary of SABC and therefore is not required to consolidate the entity. This conclusion was based on the fact that the equity-at-risk is insufficient to support operations without additional investment and that the Company does not hold decision-making power over activities that significantly impact SABC’s operations. The Company accounted for its investment in SABC as an equity method investment. The Company recorded the equity method investment at $1,000,000 which represents the Company's contribution into SABC. The Company's license contributed to SABC was recorded at its carryover basis of $0. For the years ended December 31, 2018 and 2017, the Company recognized $40,000 and $0 losses from the operations of SABC, respectively. As of December 31,2018 and 2017, the Company's equity method investment in the JV Entity was $960,000 and $0, respectively.

5. Equity Method Investment

On February 11, 2018, the Company entered into a joint venture agreement (the “JV Agreement”) with Shenzen Hepalink Pharmaceutical Group Co., Ltd., a Chinese entity (“Hepalink”) that is a related party and significant shareholder in the Company, pursuant to which we formed a Joint Venture company named Shenzen Arimab BioPharmaceuticals Co., Ltd., or SABC, a People’s Republic of China Company, for developing and commercializing products for infectious diseases. Under the terms of the JV Agreement, the Company is obligated to contribute $1,000,000 and the license of its technology relating to the Company’s AR-101 and AR-301 product candidates for use by SABC in the territories of the Republic of China, Hong Kong, Macau and Taiwan (the “Territory”) and initially owns 49% of SABC. On July 2, 2018, SABC received final approval from the government of the Peoples Republic of China.

On August 6, 2018, the Company entered into an amendment to the JV Agreement with Hepalink whereby the Company agreed to additionally contribute an exclusive, revocable, and royalty-free right and license to its AR-105 product candidate in the Territory. Pursuant to the JV Agreement and the amendment, Hepalink initially owns 51% of SABC and is obligated to contribute the equivalent of $7.2 million to SABC. Additionally, Hepalink is obligated to make an additional equity investment of $10,800,000 or more at the time of the SABC’s first future financing.

The Company evaluated the accounting for the JV Agreement entered into noting that it did not meet the accounting definition of a joint venture and instead meets the definition of a variable interest entity. The Company concluded that it is not the primary beneficiary of SABC and therefore is not required to consolidate the entity. This conclusion was based on the fact that the equity-at-risk is insufficient to support operations without additional investment and that the Company does not hold decision-making power over activities that significantly impact SABC’s operations. The Company accounted for its investment in SABC as an equity method investment. The Company recorded the equity method investment at $1,000,000 which represents the Company's contribution into SABC. The Company's license contributed to SABC was recorded at its carryover basis of $0. For the years ended December 31, 2018 and 2017, the Company recognized $40,000 and $0 losses from the operations of SABC, respectively. As of December 31,2018 and 2017, the Company's equity method investment in the JV Entity was $960,000 and $0, respectively.