6. Investment

On February 26, 2014, Ohr entered into a Joint Venture Agreement and related agreements with Cold Spring Harbor Laboratory (“CSHL”) pursuant to which a joint venture, DepYmed Inc. (“DepYmed”), was formed to further preclinical and clinical development of the Company’s intellectual property for rare diseases and oncology. DepYmed licenses research from CSHL and intellectual property from the Company.

Following the 2019 merger with Ohr Pharmaceutical, Inc., (the “Ohr Acquisition”), the Company owns common and preferred shares of DepYmed. In addition, in February 2021, the Company sold certain intellectual property to DepYmed in exchange for shares of Series A-4 preferred stock. In aggregate, the Company's ownership represents approximately 15% ownership of DepYmed.

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 consolidated statements of operations.

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.

The carrying value of the Company’s investment in DepYmed common shares was reduced to zero; therefore, during the year ended September 30, 2022, the Company recorded its share of equity losses to the extent of its investment in preferred shares of DepYmed. The Company will continue to monitor the operating results of DepYmed and will record equity in earnings when the equity in earnings exceeds the previously unrecognized losses.

Equity in losses for the years ended September 30, 2022 and 2021 were approximately $0.4 million and $0.2 million, respectively.

The carrying value of the Company’s total investment is DepYmed is as follows:

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The Company recognized a gain of $0.3 million related to the sale of IP to DepYmed, which was recorded in other (expense) income, net on the Company's consolidated statement of operations for the year ended September 30, 2021.