Merger (Tables)

12 Months Ended

Dec. 31, 2019

Merger

Schedule of purchase price paid in the Merger

Number of shares of the combined organization owned by the Company’s pre-Merger stockholders		594,850
Multiplied by the fair value per share of GEMP’s common stock (1)	$	7.50
Fair value of common stock issued to affect the Merger		4,461
Fair value of warrants issued to affect the Merger		4
Transaction costs		7,674
Purchase price	$	12,139

(1) Based on the last reported sale price of the Gemphire’s common stock on the Nasdaq Capital Market on December 30, 2019, the closing date of the Merger, and gives effect to the Reverse Stock Split.

Allocation of purchase price

Cash acquired	$	1,525
Net liabilities assumed		(1,537)
IPR&D (2)		12,151
Purchase price	$	12,139

Represents the pre-Merger research and development projects of Gemphire which were in-process, but not yet completed, and which the Company plans to advance post-Merger. This consists primarily of technology associated with the Gemcabene drug compound. Current accounting standards require that the fair value of IPR&D projects acquired in an asset acquisition with no alternative future use be allocated a portion of the consideration transferred and charged to expense on the acquisition date. The acquired assets did not have outputs or employees.