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Business Acquisition (Tables)

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Summary of Fair Value of Purchase Price Consideration

The following table summarizes the fair value of purchase price consideration to acquire Anelixis (in thousands):

Description		Amount
Fair value of purchase consideration:
Common shares issued (1)		$	1,194
Preferred shares issued (2)			69,723
Options assumed (3)			2,950
Warrants assumed (3)			12,944
Total purchase consideration		$	86,811

(1) The fair value of common shares issued in the merger is based on 175,488 shares issued on the September 14, 2020 acquisition date at the closing price of the Company's common stock of $6.80 per share.

(2) The fair value of preferred shares issued in the merger is based on the amount per share of Series X¹ preferred stock in the September 2020 Purchase Agreement.

(3) The fair value of the options and warrants assumed and replaced in the merger is based on applying the Black-Scholes valuation method using appropriate inputs of volatility rates ranging from 82% to 83%, expected terms of 5.0 to 5.9 years and risk-free rates of 0.27% to 0.45%.

Summary of Estimate of Fair Value of Assets Acquired and Liabilities Assumed

The following is an allocation of purchase price as of the September 14, 2020, acquisition closing date based upon an estimate of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition (in thousands):

Description		Amount
Cash and cash equivalents		$	11,035
Prepaid expenses and other current assets			26
Other non-current assets			11
Accounts payable			(580	)
Accrued expenses and other liabilities			(205	)
Deferred tax liability			(4,510	)
Net identifiable assets acquired			5,777
Goodwill			48,648
Identifiable intangible assets			32,386
Net assets acquired		$	86,811

Schedule of Unaudited Pro Forma Combined Financial Information

The following unaudited pro forma combined financial information is presented to illustrate the estimated effects of the Merger based on the historical financial statements and accounting records of Eledon and Anelixis after giving effect to the Merger and the Merger-related pro forma adjustments.

		Three Months Ended September 30,				Nine Months Ended September 30,
		2020				2020
Revenue		$	120			$	120
Net loss and other comprehensive loss		$	(5,375	)		$	(19,140	)

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

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-Name Accounting Standards Codification
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- Definition

Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

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Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

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