4. Relief Acquisition

In August 2019, the Company executed a Share Exchange Agreement with Relief Holdings, in which the Company agreed to acquire the outstanding shares of Relief. The Company issued 757,933 shares of common stock upon closing of the transaction on April 1, 2020.

For accounting purposes, the Company determined that the acquisition of Relief did not meet the definition of a business and was accounted for as an asset acquisition since substantially all of the fair value of the assets acquired was concentrated in a single identified intangible asset, its atexakin alfa.

The acquisition consideration and assets acquired and liabilities assumed are as follows:

Schedule of Assets and Liability Acquired 

The Company expensed the acquired in-process research and development as of the acquisition date since further development and regulatory approval are required.

Sonnet BioTherapeutics Holdings, Inc.

Notes to Consolidated Financial Statements