6.  Investment

The Company owns common and preferred shares of DepYmed, Inc. (“DepYmed”), which in aggregate represents approximately 13% ownership of DepYmed and includes recently acquired DepYmed Series A-4 preferred shares with a fair value of approximately $0.3 million that were issued to the Company in February 2021 in exchange for the Company's sale of certain intellectual property. In addition, the Company is entitled to hold one of the six seats on DepYmed’s board of directors.

The Company accounts for its investment in DepYmed common shares using the equity method of accounting and records its proportionate share of DepYmed’s net income and losses in the accompanying unaudited condensed consolidated statements of operations. Equity in losses for the three months ended March 31, 2021 and 2020 were approximately $0.04 million and $0.01 million, respectively.  Equity in losses for the six months ended March 31, 2021 and 2020 were approximately $0.06 million and $0.01 million, respectively.

The Company accounts for its investment in preferred shares of DepYmed at cost, less any impairment, as the Company determined the preferred stock did not have a readily determinable fair value.

As of both March 31, 2021 and September 30, 2020, the carrying amount of the Company’s aggregate investment in DepYmed was $0.6 million and $0.3 million, respectively.