Distribution of Aerpio Therapeutics, Inc.

9 Months Ended

Sep. 30, 2014

Restructuring And Related Activities [Abstract]

Distribution of Aerpio Therapeutics, Inc.

3. Distribution of Aerpio Therapeutics, Inc.

On December 22, 2011, the Company assigned certain assets and liabilities to a wholly-owned subsidiary, Aerpio Therapeutics, Inc. (Aerpio), which has since operated as an independent, stand-alone company and is no longer a wholly-owned subsidiary. The assigned assets and liabilities included all of the Company’s fixed assets, the Company’s Tie2 activator program, AKB-9778, for diabetic macular edema, the HIF-1 stabilizer program, AKB-4924, for inflammatory bowel disease and contracts, intellectual property, current assets and current liabilities associated with these programs. The Aerpio shares were then distributed to the Company’s shareholders as a distribution on the basis of one share of Aerpio Series A Preferred Stock for every 35 shares of Akebia Series A Preferred Stock owned, one share of Aerpio Series A Preferred Stock for every 100 shares of Akebia Series B Preferred Stock owned, and one share of Aerpio Common Stock for every 175 shares of Akebia Common Stock owned.

Under the terms of administrative services agreements, the Company and Aerpio obtain from and provide to each other certain services beginning in 2012, and as outlined below. These agreements are cancellable upon mutual agreement or a sale of either company.

Below is a summary of the activities included in the statements of operations and comprehensive loss:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Activity	Financial Statement Caption	2014		2013		2014		2013
Reimbursement from Aerpio for Akebia employee costs	Reimbursements from Aerpio	$	180,132	$	238,107	$	544,471	$	815,704
Facility-related charges from Aerpio	General and administrative Operating expenses	$	10,914	$	2,601	$	58,250	$	186,518

Below is a summary of the receivables and payables included in the balance sheets related to Aerpio:

	Financial	September 30,		December 31,
Activity	Statement Caption	2014		2013
Amounts receivable from Aerpio	Accounts receivables	$	57,245	$	135,339
Amounts payable to Aerpio	Accounts payable	$	7,656	$	62,735

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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