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Agreement and Plan of Merger (Tables)
 3 Months Ended
Mar. 31, 2025
Agreement And Plan Of Merger [Abstract]  
Summary of Total Consideration Paid

The following table summarizes the total consideration paid pursuant to the Merger Agreement, which was based on the closing market price of Akari's ADS as of the November 14, 2024 acquisition date:

($ in thousands)

Number of ADSs issued and issuable on exercise

Consideration

Company ADSs issued to Peak Bio Inc. shareholders

12,613,942

$

28,129

Company ADSs issuable on exercise of November 2022 Peak Investor Warrants and April 2023 Peak Investor Warrants

2,764,569

1,844

Company ADSs issuable on exercise of Peak Bio Adjusted Options

1,618,081

—

Total consideration

16,996,592

$

29,973

Summary of Assumptions Used to Determine Fair Value of the Assumed Warrants The following assumptions were used to determine the fair value of the assumed warrants as of November 14, 2024:

Peak Bio Assumed Warrants

November 2022

April 2023

Stock (ADS) price

$

2.23

$

2.23

Exercise price

$

39.18

$

2.04

Expected term (in years)

3.0

3.5

Expected volatility

86.4

%

84.1

%

Risk-free interest rate

4.3

%

4.3

%

Expected dividend yield

—

—

Summary of Final Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the final fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

Assets acquired

Cash and restricted cash

$

382

Prepaid expenses and other current assets

10

Acquired in-process research and development

39,180

Total assets acquired

39,572

Liabilities assumed

Accounts payable and accrued expenses

6,979

Convertible notes

700

Notes payable

659

Notes payable, related party

1,651

Deferred tax liability

8,040

Total liabilities assumed

18,029

Total assets acquired and liabilities assumed

21,543

Goodwill

8,430

Net assets acquired

$

29,973

Summary of Fair Value of IPR&D Intangible Assets

The fair value of IPR&D intangible assets was as follows (in thousands):

In-Process Research and Development

AKTX 101

$

34,000

PHP 303

5,180

Total in-process research and development

$

39,180

Summary of Pro Forma Financial Information The unaudited pro forma financial information is for comparative purposes only and is not necessarily indicative of what would have occurred had the acquisition been made at that date or of results which may occur in the future (in thousands).

 

 

 

Three Months Ended March 31, 2024

 

 

 

 

As Reported

 

 

Pro Forma

 

 

Net loss

 

$

(5,566

)

 

 

(7,607

)