0001683168-21-003464.txt : 20210812 0001683168-21-003464.hdr.sgml : 20210812 20210812163111 ACCESSION NUMBER: 0001683168-21-003464 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 54 CONFORMED PERIOD OF REPORT: 20210630 FILED AS OF DATE: 20210812 DATE AS OF CHANGE: 20210812 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Xenetic Biosciences, Inc. CENTRAL INDEX KEY: 0001534525 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 452952962 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-37937 FILM NUMBER: 211168068 BUSINESS ADDRESS: STREET 1: 40 SPEEN STREET, SUITE 102 CITY: FRAMINGHAM STATE: MA ZIP: 01701 BUSINESS PHONE: 781-778-7720 MAIL ADDRESS: STREET 1: 40 SPEEN STREET, SUITE 102 CITY: FRAMINGHAM STATE: MA ZIP: 01701 FORMER COMPANY: FORMER CONFORMED NAME: General Sales & Leasing, Inc. DATE OF NAME CHANGE: 20130227 FORMER COMPANY: FORMER CONFORMED NAME: GENERAL AIRCRAFT INC. DATE OF NAME CHANGE: 20111108 10-Q 1 xenetic_i10q-063021.htm FORM 10-Q FOR JUNE 30, 2021
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Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

  

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ______________

 

Commission File Number: 001-37937

 

XENETIC BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

 

Nevada 45-2952962
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

 

40 Speen Street, Suite 102

Framingham, Massachusetts

 

01701

(Address of principal executive offices) (Zip Code)

 

781-778-7720

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.001 par value per share XBIO The Nasdaq Stock Market LLC
Purchase Warrants XBIOW The Nasdaq Stock Market LLC
     

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer Smaller reporting company
Emerging growth company  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No

 

The number of shares outstanding of the registrant’s common stock, par value $0.001 per share, as of August 6, 2021 was 9,703,845.

 

 

 

   

 

 

XENETIC BIOSCIENCES, INC.

FORM 10-Q

QUARTERLY PERIOD ENDED JUNE 30, 2021

 

PART I FINANCIAL INFORMATION  
     
Item 1 Condensed Consolidated Financial Statements: 3
     
  Condensed Consolidated Balance Sheets as of June 30, 2021 (Unaudited) and December 31, 2020 3
     
  Condensed Consolidated Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020 4
     
  Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the three and six months ended June 30, 2021 and 2020 5
     
  Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020 7
     
  Notes to Condensed Consolidated Financial Statements (Unaudited) 8
     
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 16
     
Item 3 Quantitative and Qualitative Disclosures About Market Risk 23
     
Item 4 Controls and Procedures 23
     
PART II OTHER INFORMATION  
     
Item 1 Legal Proceedings 24
     
Item 1A Risk Factors 24
     
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 24
     
Item 3 Defaults Upon Senior Securities 24
     
Item 4 Mine Safety Disclosures 24
     
Item 5 Other Information 24
     
Item 6 Exhibits 24
   
Signatures 25

 

 

 

 2 

 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1 - FINANCIAL STATEMENTS

 

XENETIC BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

           
  

June 30,

2021

  

December 31,

2020

 
    (Unaudited)      
           
ASSETS          
Current assets:          
Cash  $9,281,554   $11,527,552 
Prepaid expenses and other   917,826    841,958 
Total current assets   10,199,380    12,369,510 
           
Other assets   715,898    809,985 
Total assets  $10,915,278   $13,179,495 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:          
Accounts payable  $305,088   $327,396 
Accrued expenses and other current liabilities   653,126    609,532 
Total current liabilities   958,214    936,928 
           
Other long-term liabilities   7,957    27,043 
Total liabilities   966,171    963,971 
           
Commitments (Note 11)          
Stockholders' equity:          
Preferred stock, 10,000,000 shares authorized          
Series B, $0.001 par value: 1,804,394 shares issued and outstanding as of June 30, 2021 and December 31, 2020   1,804    1,804 
Series A, $0.001 par value: 970,000 shares issued and outstanding as of June 30, 2021 and December 31, 2020   970    970 
Common stock, $0.001 par value; 50,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 8,773,683 and 8,772,198 shares issued as of June 30, 2021 and December 31, 2020, respectively; 8,746,692 and 8,745,207 shares outstanding as of June 30, 2021 and December 31, 2020, respectively   8,772    8,771 
Additional paid in capital   194,319,716    194,133,511 
Accumulated deficit   (179,354,709)   (176,902,086)
Accumulated other comprehensive income   253,734    253,734 
Treasury stock   (5,281,180)   (5,281,180)
Total stockholders' equity   9,949,107    12,215,524 
Total liabilities and stockholders' equity  $10,915,278   $13,179,495 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 3 

 

 

XENETIC BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

                     
   THREE MONTHS ENDED
JUNE 30,
   SIX MONTHS ENDED
JUNE 30,
 
   2021   2020   2021   2020 
Revenue:                
Royalty revenue  $287,603   $112,927   $478,819   $169,676 
Total revenue   287,603    112,927    478,819    169,676 
                     
Operating costs and expenses:                    
Research and development   (524,550)   (307,900)   (1,154,279)   (667,551)
General and administrative   (890,704)   (787,486)   (1,821,282)   (1,715,366)
Total operating costs and expenses   (1,415,254)   (1,095,386)   (2,975,561)   (2,382,917)
Loss from operations   (1,127,651)   (982,459)   (2,496,742)   (2,213,241)
                     
Other income:                    
Other income   238    192    1,122    58 
Interest income, net   20,735    28,625    42,997    80,112 
Total other income   20,973    28,817    44,119    80,170 
                     
Net loss  $(1,106,678)  $(953,642)  $(2,452,623)  $(2,133,071)
                     
Basic and diluted net loss per share  $(0.13)  $(0.15)  $(0.28)  $(0.34)
                     
Weighted-average shares of common stock outstanding, basic and diluted   8,746,692    6,288,351    8,746,479    6,260,841 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 4 

 

 

XENETIC BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

 

THREE MONTHS ENDED JUNE 30, 2021

 

 

                                              
   Preferred Stock   Common Stock           Accumulated          
  

Number

of Shares

  

Par

Value ($0.001)

  

Number

of Shares

  

Par

Value ($0.001)

  

Additional

Paid in Capital

   Accumulated Deficit  

Other

Comprehensive Income

   Treasury Stock  

Total

Stockholders' Equity

 
Balance as of April 1, 2021   2,774,394   $2,774    8,773,683   $8,772   $194,209,794   $(178,248,031)  $253,734   $(5,281,180)  $10,945,863 
Share-based expense                   109,922                109,922 
Net loss                       (1,106,678)           (1,106,678)
Balance as of June 30, 2021   2,774,394   $2,774    8,773,683   $8,772   $194,319,716   $(179,354,709)  $253,734   $(5,281,180)  $9,949,107 

  

 

 

 

SIX MONTHS ENDED JUNE 30, 2021

 

   Preferred Stock   Common Stock           Accumulated          
   Number of Shares   Par Value ($0.001)   Number of Shares   Par Value ($0.001)  

Additional

Paid in Capital

   Accumulated Deficit  

Other

Comprehensive Income

   Treasury Stock  

Total

Stockholders' Equity

 
Balance as of January 1, 2021   2,774,394   $2,774    8,772,198   $8,771   $194,133,511   $(176,902,086)  $253,734   $(5,281,180)  $12,215,524 
Share-based expense                   186,206                186,206 
Exercise of purchase warrants           1,485    1    (1)                
Net loss                       (2,452,623)           (2,452,623)

Balance as of June 30,

2021

   2,774,394   $2,774    8,773,683   $8,772   $194,319,716   $(179,354,709)  $253,734   $(5,281,180)  $9,949,107 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 

 

 

 5 

 

 

XENETIC BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

 

 

THREE MONTHS ENDED JUNE 30, 2020

 

   Preferred Stock   Common Stock           Accumulated          
   Number of Shares   Par Value ($0.001)   Number of Shares   Par Value ($0.001)  

Additional

Paid in Capital

   Accumulated Deficit  

Other

Comprehensive Income

   Treasury Stock  

Total

Stockholders' Equity

 
Balance as of April 1, 2020   2,774,394   $2,774    6,311,906   $6,311   $188,405,830   $(167,188,049)  $253,734   $(5,281,180)  $16,199,420 
Issuance of common stock to vendor           1,188    1    (1)                
Share-based expense                   111,734                111,734 
Exercise of purchase warrants           10,124    10    (10)                
Net loss                       (953,642)           (953,642)
Balance as of June 30, 2020   2,774,394   $2,774    6,323,218   $6,322   $188,517,553   $(168,141,691)  $253,734   $(5,281,180)  $15,357,512 

  

 

 

 

SIX MONTHS ENDED JUNE 30, 2020

 

   Preferred Stock   Common Stock           Accumulated          
   Number of Shares   Par Value ($0.001)   Number of Shares   Par Value ($0.001)  

Additional

Paid in Capital

   Accumulated Deficit  

Other

Comprehensive Income

   Treasury Stock  

Total

Stockholders' Equity

 
Balance as of January 1, 2020   2,774,394   $2,774    6,092,432   $6,092   $188,240,451   $(166,008,620)  $253,734   $(5,281,180)  $17,213,251 
Issuance of common stock to vendor           1,188    1    (1)                
Share-based expense                   277,332                277,332 
Exercise of purchase warrants           229,598    229    (229)                
Net loss                       (2,133,071)           (2,133,071)
Balance as of June 30, 2020   2,774,394   $2,774    6,323,218   $6,322   $188,517,553   $(168,141,691)  $253,734   $(5,281,180)  $

15,357,512

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 

 

 

 

 

 6 

 

 

XENETIC BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

         
   Six Months Ended June 30, 
   2021   2020 
         
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(2,452,623)  $(2,133,071)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation       757 
Amortization of right of use asset   17,160    13,765 
Gain on settlement with vendor       (143,639)
Share-based expense   186,206    277,332 
Changes in operating assets and liabilities:          
Prepaid expenses and other assets   1,059    167,586 
Accounts payable, accrued expenses and other liabilities   2,200    (484,190)
Net cash used in operating activities   (2,245,998)   (2,301,460)
           
Net change in cash   (2,245,998)   (2,301,460)
Cash at beginning of period   11,527,552    10,367,920 
           
Cash at end of period  $9,281,554   $8,066,460 
           
SUPPLEMENTAL CASH FLOW INFORMATION:          
Cash paid for interest  $   $ 
           
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:          
Issuance of common stock from cashless exercise of purchase warrants  $1   $229 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

 

 

 

 7 

 

 

XENETIC BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

1. The Company

 

Background

 

Xenetic Biosciences, Inc. (“Xenetic” or the “Company”), incorporated in the state of Nevada and based in Framingham, Massachusetts, is a biopharmaceutical company focused on progressing XCART, a personalized Chimeric Antigen Receptor (“CAR”) T platform technology engineered to target patient- and tumor-specific neoantigens. The Company is initially advancing cell-based therapeutics targeting the unique B-cell receptor on the surface of an individual patient’s malignant tumor cells, for the treatment of B-cell lymphomas. The XCART technology, developed by the Scripps Research Institute (“Scripps Research”) in collaboration with the Shemyakin-Ovchinnikov Institute of Bioorganic Chemistry, is believed to have the potential to significantly enhance the safety and efficacy of cell therapy for B-cell lymphomas by generating patient- and tumor-specific CAR T cells.

 

Additionally, Xenetic is leveraging its proprietary drug delivery platform, PolyXen®, by partnering with biotechnology and pharmaceutical companies. PolyXen is an enabling platform technology which can be applied to protein or peptide therapeutics. It employs the natural polymer polysialic acid to prolong a drug’s circulating half-life and potentially improve other pharmacological properties. Xenetic incorporates its patented and proprietary technologies into drug candidates currently under development with biotechnology and pharmaceutical industry collaborators to create what the Company believes will be the next-generation biologic drugs with improved pharmacological properties over existing therapeutics.

 

As used in this Quarterly Report on Form 10-Q (“Quarterly Report”), unless otherwise indicated, all references herein to “Xenetic,” the “Company,” “we” or “us” refer to Xenetic Biosciences, Inc. and its wholly owned subsidiaries.

 

The Company, directly or indirectly, through its wholly-owned subsidiaries, Hesperix S.A. (“Hesperix”) and Xenetic Biosciences (U.K.) Limited (“Xenetic UK”), and the wholly-owned subsidiaries of Xenetic UK, Lipoxen Technologies Limited (“Lipoxen”), Xenetic Bioscience, Incorporated and SymbioTec, GmbH (“SymbioTec”), own various United States (“U.S.”) federal trademark registrations and applications, and unregistered trademarks and service marks, including but not limited to XCART, OncoHist™, PolyXen, ErepoXen™, and ImuXen™, which are used throughout this Quarterly Report. All other company and product names may be trademarks of the respective companies with which they are associated.

 

Going Concern and Management’s Plan

 

Management evaluates whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company has incurred substantial losses since its inception and expects to continue to incur operating losses in the near-term. These factors raise substantial doubt about its ability to continue as a going concern. The Company believes that it has access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations, related party funding, or other means to continue as a going concern. On December 4, 2020, the Company closed on a $6.0 million registered direct offering of the Company’s common stock, par value $0.001, resulting in $5.4 million of net proceeds to the Company. On July 28, 2021, the Company completed a $12.5 million private placement of the Company’s common stock, par value $0.001, resulting in approximately $11.4 million of net proceeds to the Company. The Company believes that these financings, coupled with the Company’s existing resources, will be adequate for the Company to continue as a going concern. However, the Company anticipates it may need additional capital in the long-term to pursue its business initiatives. The terms, timing and extent of any future financing will depend upon several factors, including the achievement of progress in its clinical development programs, its ability to identify and enter into licensing or other strategic arrangements, and factors related to financial, economic and market conditions, many of which are beyond its control.

  

 

 

 8 

 

 

 

2. Impact of COVID-19

 

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus, or COVID-19. The pandemic has significantly affected economic conditions in the U.S., accelerating during the first half of March 2020 and continuing into 2021, as federal, state and local governments react to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. economy. The Company continues to evaluate the effects of the COVID-19 pandemic on its business and while there has been no significant impact to the Company’s operations to date, the Company at this time is uncertain of the impact this event may have on the Company’s future operations. The extent to which the COVID-19 pandemic affects our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, and such uncertainty is expected to continue for some time.

 

3. Summary of Significant Accounting Policies

 

Preparation of Interim Financial Statements

 

The accompanying condensed consolidated interim financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results for the interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021 and amended on April 28, 2021.

 

Principles of Consolidation

 

The condensed consolidated financial statements of the Company include the accounts of Hesperix, Xenetic UK and Xenetic UK’s wholly owned subsidiaries: Lipoxen, Xenetic Bioscience, Incorporated, and SymbioTec. All intercompany balances and transactions have been eliminated in consolidation.

 

Basic and Diluted Net Loss per Share

 

The Company computes basic net loss per share by dividing net loss applicable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding during the period. The Company computes diluted net loss per share after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive.

 

For the three and six months ended June 30, 2021 and 2020, basic and diluted net loss per share are the same for each respective period due to the Company’s net loss position. Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would be anti-dilutive.

  

 

 

 9 

 

 

Recent Accounting Standards

 

In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The amendment updates the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the “incurred loss” model with an “expected loss” model. This may result in earlier recognition of allowance for losses. ASU 2016-13 is effective for smaller reporting public entities for fiscal years beginning after December 15, 2022 but early adoption is permitted. The Company is currently evaluating the impact of adoption, but it does not anticipate that it will have a material effect on the Company’s consolidated financial statements.

 

4. Significant Strategic Collaborations

 

The Company has entered into various research, development, license and supply agreements with Takeda Pharmaceuticals Co. Ltd. (“Takeda”), Serum Institute of India (“Serum Institute”), Pharmsynthez and SynBio LLC (“SynBio”), a wholly owned subsidiary of Pharmsynthez. The Company and its collaborative partners continue to engage in research and development activities with no resultant commercial products through June 30, 2021.

 

In October 2017, the Company granted to Takeda the right to grant a non-exclusive sublicense to certain patents related to the Company’s PolyXen technology that were previously exclusively licensed to Takeda in connection with products related to the treatment of blood and bleeding disorders. Royalty payments of approximately $0.3 million and $0.5 million were recorded as revenue by the Company during the three and six months ended June 30, 2021, respectively, and approximately $0.1 million and $0.2 million were recorded as revenue by the Company during the three and six months ended June 30, 2020, respectively. The Company’s policy is to recognize royalty payments as revenue when they are reliably measurable, which is upon receipt of reports from Takeda. The Company receives these reports in the quarter subsequent to the actual sublicensee sales. At the time the revenue was received, there were no remaining performance obligations and all other revenue recognition criteria were met. There are no active projects under the Exclusive Research, Development and License Agreement, dated August 15, 2005, by and between Lipoxen and Baxter Healthcare SA, as amended, (the “Takeda Agreement”), and the parties are discussing a potential termination of the agreement. Any such termination of the Takeda Agreement would have no impact on the Company and its non-exclusive sublicense agreement and the royalties being generated. No amounts were recognized as revenue related to the Serum Institute, Pharmsynthez or SynBio agreements during the three months ended June 30, 2021 and 2020, respectively.

 

On May 15, 2020, the Company and Scripps Research entered into a Research Funding and Option Agreement (the “Scripps Agreement”), pursuant to which the Company has agreed to provide Scripps Research an aggregate of up to $3.0 million to fund research relating to advancing the pre-clinical development of XCART. The research funding is payable by the Company to Scripps Research on a quarterly basis in accordance with a negotiated budget, which provides for an initial payment of approximately $300,000 on the date of the Scripps Agreement and subsequent quarterly payments of approximately $300,000 over a 27-month period. Under the Scripps Agreement, Scripps Research has granted the Company a license within the Field (as defined in the Scripps Agreement) to any Patent Rights or Technology (as defined in the Scripps Agreement) under the terms of that certain license agreement with Scripps Research, dated February 25, 2019, assigned to the Company on March 1, 2019. Additionally, the Company has the option to acquire a worldwide exclusive license to Scripps Research’s rights in the Technology or Patent Rights not already licensed to the Company, as well as a non-exclusive, royalty-free, non-transferrable license to make and use Scripps Research Technology (as defined in the Scripps Agreement) solely for the Company’s internal research purposes during the performance of the research program contemplated by the Scripps Agreement. The Company has paid $1.5 million to Scripps Research under this agreement through June 30, 2021. As of June 30, 2021 and December 31, 2020, approximately $0.2 million has been recognized as an advance payment under this agreement and is included in Prepaid expenses and other current assets.

  

 

 

 10 

 

 

 

5. Property and Equipment, net

 

Property and equipment, net consists of the following:

 

          
   June 30,
2021
   December 31,
2020
 
Office and computer equipment  $42,289   $42,289 
Furniture and fixtures   14,738    14,738 
Property and equipment – at cost   57,027    57,027 
Less accumulated depreciation   (57,027)   (57,027)
Property and equipment – net  $   $ 

 

Depreciation expense was approximately $200 and $800 for the three and six months ended June 30, 2020. There was no depreciation expense for the three and six months ended June 30, 2021.

  

6. Indefinite-Lived Intangible Assets

 

The Company’s indefinite-lived intangible asset, OncoHist, is in-process research and development (“IPR&D”) relating to the Company’s business combination with SymbioTec in 2012. IPR&D is tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, although it is to be tested at least annually until the project is completed or abandoned. The Company completed an impairment analysis of the IPR&D during 2020 and concluded that the following factors indicated that the IPR&D was impaired: a decision by management to delay indefinitely any further development of the IPR&D and to not support the underlying intellectual property; the failure to sell or license the IPR&D to a third party; and the reduction in market capitalization. The Company recorded an asset impairment charge of $9.2 million during the third quarter of 2020 representing the excess of the IPR&D asset’s carrying value over its estimated fair value. A reconciliation of the change in the carrying value of Indefinite-Lived Intangible Assets is as follows:

 

     
Balance as of January 1, 2020  $9,243,128 
Impairment   (9,243,128)
Balance as of December 31, 2020  $ 

 

7. Fair Value Measurements

 

Accounting Standards Codification Topic 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The carrying amount of certain of the Company’s financial instruments approximate fair value due to their short maturities. As of June 30, 2021 and December 31, 2020, the carrying amounts of the Company’s financial instruments approximates fair value due to their short maturities. There were no financial instruments classified as Level 3 in the fair value hierarchy during the three and six months ended June 30, 2021 and 2020.

  

 

 

 11 

 

 

 

8. Stockholders’ Equity

 

Warrants

 

In connection with certain of the Company’s collaboration agreements and consulting arrangements, the Company has issued warrants to purchase shares of common stock as payment for services. As of June 30, 2021 and December 31, 2020, collaboration warrants to purchase 0 and 30,307 shares of common stock were outstanding. No collaboration warrants were granted or exercised in connection with collaboration or consulting services during the three and six months ended June 30, 2021. Collaboration warrants to purchase 30,307 shares expired during the three and six months ended June 30, 2021. No collaboration warrants were granted or exercised and none expired in connection with collaboration or consulting services during the three and six months ended June 30, 2020, respectively.

 

In addition, the Company has outstanding warrants to purchase an aggregate of 347,505 and 378,453 shares of common stock in connection with debt and equity financing arrangements as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, these warrants have an average weighted exercise price of $36.74 per share and expiration dates ranging from July 2021 through September 2026. No debt and equity financing warrants were granted during the three and six months ended June 30, 2021 and 2020. During the six months ended June 30, 2021 and 2020, debt and equity financing warrants to purchase approximately 1,485 and 0.2 million shares of common stock, respectively, were exercised on a cashless one-for-one basis. No debt and equity financing warrants were exercised during the three months ended June 30, 2021 and 2020, respectively. In addition, approximately 0 and 29,000 debt and equity warrants expired during the three and six months ended June 30, 2021. No debt and equity warrants expired during the three and six months ended June 30, 2020.

 

9. Share-Based Expense

 

Total share-based expense related to stock options, restricted stock units (“RSUs”) and common stock awards was approximately $0.1 million during the three months ended June 30, 2021 and 2020 and approximately $0.2 million and $0.3 million for the six months ended June 30, 2021 and 2020, respectively.

  

Share-based compensation expense is classified in the condensed consolidated statements of operations as follows:

 

                    
   Three Months Ended June 30,   Six Months Ended June 30, 
   2021   2020   2021   2020 
Research and development expenses  $19,026   $12,936   $29,736   $26,294 
General and administrative expenses   90,896    98,798    156,470    251,038 
   $109,922   $111,734   $186,206   $277,332 

 

Employee Stock Options

 

During the six months ended June 30, 2021, the Company granted 200,000 stock option awards to purchase shares of common stock. The weighted average grant date fair value per option share was $2.34. Key assumptions used in the Black-Scholes option pricing model for options granted during the six months ending June 30, 2021 were the Company’s stock price, a risk free rate of 1.08%, an expected life of 5.88 years and an expected volatility rate of 134.47%. There were no employee stock options or RSUs granted or exercised during the six months ended June 30, 2020. The Company recognized a total of $0.1 million of compensation expense related to employee stock options during the three months ended June 30, 2021 and 2020 and $0.2 million and $0.3 million during the six months ended June 30, 2021 and 2020, respectively.

 

 

 

 12 

 

 

 

Non-Employee Stock Options

 

The Company did not grant any non-employee stock options during the six months ended June 30, 2021 and 2020. The Company did not recognize any expense related to non-employee stock options during the three and six months ended June 30, 2021. The Company recognized approximately $4,000 and $7,000 of expense during the three and six months ended June 30, 2020, respectively.

 

10. Income Taxes

 

During the three and six months ended June 30, 2021 and 2020, there was no provision for income taxes as the Company incurred losses during both periods. Deferred tax assets and liabilities reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company records a valuation allowance against its deferred tax assets as the Company believes it is more likely than not the deferred tax assets will not be realized. The valuation allowance against deferred tax assets was approximately $30.2 million and $29.6 million as of June 30, 2021 and December 31, 2020, respectively.

 

As of June 30, 2021 and December 31, 2020, the Company did not record any unrecognized tax positions.

 

11. Commitments

 

Supplemental cash flow information and non-cash activity related to our operating leases are as follows:

 

    
  

Six Months

Ended

June 30,

 
   2021 
Operating cash flow information:     
Cash paid for amounts included in the measurement of lease liabilities  $17,160 

 

Supplemental balance sheet information related to our operating leases are as follows:

 

       
   Balance Sheet Classification  June 30, 2021 
Right-of-use assets - ST  Prepaid expenses and other  $37,408 
Right-of-use assets - LT  Other assets  $7,957 
Current lease liabilities  Accrued expenses and other current liabilities  $37,408 
Non-current lease liabilities  Other long-term liabilities  $7,957 

 

 

 

12. Related Party Transactions

 

The Company has entered into various research, development, license and supply agreements with Serum Institute and Pharmsynthez (as well as SynBio), each a related party whose relationship has not materially changed from that disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021.

 

 

 

 13 

 

 

During the fourth quarter of 2019, the Company entered into a loan agreement with Pharmsynthez (the “Pharmsynthez Loan”), pursuant to which the Company advanced Pharmsynthez an aggregate principal amount of up to $500,000 to be used for the development of a specific product under the Company’s co-development agreement with SynBio. The Pharmsynthez Loan had a term of 15-months and accrued interest at a rate of 10% per annum. The Pharmsynthez Loan is guaranteed by all of the operating subsidiaries of Pharmsynthez, including SynBio and AS Kevelt, and is secured by all of the equity interests of the Company owned by Pharmsynthez and SynBio. The Company recognized approximately $11,000 and $23,000 of interest income related to this loan during the three and six months ended June 30, 2021, respectively. The Company recognized approximately $13,000 and $25,000 of interest income related to this loan during the three and six months ended June 30, 2020, respectively.

 

Effective January 23, 2021, the Company entered into a First Amendment to Loan Agreement and Other Loan Documents with Pharmsynthez, Kevelt and SynBio (the “Pharmsynthez Loan Extension”) to modify the repayment terms and maturity of the Pharmsynthez Loan to January 2022. The terms of the Pharmsynthez Loan Extension called for two (2) equal monthly principal payments of $25,000 in each of January 23, 2021 and February 28, 2021 and the payment of all outstanding accrued interest in six (6) equal monthly installments from January 31, 2021 through June 30, 2021. In addition, the Pharmsynthez Loan Extension requires monthly interest payments and the repayment of the remaining principal amount in six (6) equal monthly installments from August 2021 through January 2022. All other terms of the Pharmsynthez Loan remain in effect. As of June 30, 2021, approximately $0.5 million was included in Prepaid expenses and other on the condensed consolidated balance sheet. As of December 31, 2020, approximately $0.5 million was classified within Prepaid expenses and other and approximately $0.1 million was classified within Other assets on the consolidated balance sheet.

  

During the third quarter of 2019, the Company entered into a Sponsored Research Agreement with Pharmsynthez (the “SRA”) related to experiments identified by the Company to support its efforts for initial tech transfer of the XCART methods to a future academic collaborator. Under the agreement, the Company made a $350,000 payment to Pharmsynthez during the third quarter of 2019, which was refundable on pro rata basis if the project is terminated prematurely as a result of Pharmsynthez failing to perform the work. On June 12, 2020, the Company and Pharmsynthez entered into a Master Services Agreement (“MSA”) to advance the development of the Company’s XCART technology for B-cell malignancies. The MSA terminated and superseded the SRA. The Company expensed approximately $10,000 and $0.1 million related to work performed under these agreements during the three and six months ended June 30, 2021. The Company expensed approximately $0.1 million related to work performed under these agreements during the six months ended June 30, 2020. No expense was recorded during the three months ended June 30, 2020. As of June 30, 2021, approximately $40,000 was accrued and included in Accrued expenses and other current liabilities on the condensed consolidated balance sheet. As of December 31, 2020, approximately $25,000 was recorded as an advanced payment and included in Prepaid expenses and other on the consolidated balance sheet.

 

Under the MSA, Pharmsynthez agreed to provide services pursuant to work orders agreed upon by the parties from time to time, which services include, but are not limited to, acting as the Company’s primary contract research organization to assist in managing collaborations with multiple academic institutions in Russia and Belarus. The Company is required to pay reasonable fees, expenses and pass-through costs incurred by Pharmsynthez in providing the services in accordance with a budget and payment terms set forth in each work order. Additionally, in the event that a work order provides for milestone payments, the Company is required to make such payments to Pharmsynthez, or third party service providers designated by Pharmsynthez, in accordance with the terms set forth in the work order, which milestone payments may be made, at the sole discretion of the Company, in cash or shares of the Company’s common stock.

 

The Company and Pharmsynthez executed a work order on June 12, 2020 (the “Work Order”) under the MSA pursuant to which Pharmsynthez agreed to conduct a Stage 1 study of the Company’s XCART technology under the research program as set forth in the Work Order. The activities to be performed under the Work Order are expected to take approximately 20 months unless earlier terminated in accordance with the MSA. Under the terms of the Work Order, the Company paid Pharmsynthez $51,000 as an initial payment for trial startup costs, which amount was credited against the amounts paid under the SRA. The Work Order provides for additional pass-through costs to be invoiced by Pharmsynthez upon execution of contracts with third party sites, which will be further credited against the SRA. The total cost under the Work Order is currently estimated to be approximately $1.8 million. Through June 30, 2021, all costs incurred under the MSA were credited against the amounts paid under the SRA. Additionally, the Work Order provides for milestone payments of up to an aggregate of $1,050,000, or, in the Company’s sole discretion, up to an aggregate of 1,000,000 shares of the Company’s common stock, to be paid or issued, as applicable, by the Company upon achievement of milestones associated with completion of early stages of the research program as set forth in the Work Order. As of June 30, 2021, approximately $0.1 million of milestone payments has been paid.

 

 

 

 14 

 

 

 

13. Subsequent Events

 

The Company performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined that there were no such events requiring recognition or disclosure in the financial statements except as described below.

 

Financing

 

On July 26, 2021, the Company entered into a securities purchase agreement in connection with a private placement (the “Purchase Agreement”) with the purchaser named on the signature page thereto (“Purchaser”), pursuant to which the Company agreed to issue and sell to the Purchaser, in a private placement priced at-the-market under Nasdaq rules, (i) 950,000 shares of the Company’s common stock, par value $0.001 per share (the “Shares”), (ii) warrants to purchase an aggregate of 4,629,630 shares of the Company’s common stock, with an exercise price of $3.30 per share (the “Series A Warrants”) which expire three and one half years from the earlier of (a) the six month anniversary of the initial exercise date and (b) the date that the registration statement registering all of the warrant shares underlying the Series A Warrants is declared effective, and (iii) pre-funded warrants to purchase up to 3,679,630 shares of the Company’s common stock, with an exercise price of $0.001 per share (the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) with no expiration (the “Private Placement”), at a purchase price of $2.70 per one Share and one Series A Warrant and $2.699 per one Series B Warrant and one Series A Warrant. The Company received aggregate gross proceeds from the Private Placement of approximately $12.5 million, before deducting placement agent fees and offering expenses, and excluding the exercise of any Warrants.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 15 

 

 

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended. All statements contained in this Quarterly Report other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, future revenues, projected costs, prospects and our objectives for future operations, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the anticipated effects and duration of the novel coronavirus, or COVID-19, global pandemic and the responses thereto, including the pandemic’s impact on general economic and market conditions, as well as on our business, results of operations and financial condition; our plans to develop our proposed drug candidates; our expectations regarding the nature, timing and extent of clinical trials and proposed clinical trials; our expectations regarding the timing for proposed submissions of regulatory filings, including, but not limited to, any Investigational New Drug filing or any New Drug Application; the nature, timing and extent of collaboration arrangements; the expected results pursuant to collaboration arrangements including the receipts of future payments that may arise pursuant to collaboration arrangements; the outcome of our plans to obtain regulatory approval of our drug candidates; the outcome of our plans for the commercialization of our drug candidates; our plans to address certain markets, engage third party manufacturers, and evaluate additional drug candidates for subsequent commercial development, and the likelihood and extent of competition to our drug candidates; the development of the XCART Chimeric Antigen Receptor (“CAR”) T technology; our plans to apply the XCART technology to advance cell-based therapeutics by targeting the unique B cell receptor on the surface of an individual patient’s malignant tumor cells for the treatment of B-cell lymphomas; our beliefs regarding the expected results of the XCART technology, including its potential to significantly enhance the safety and efficacy of cell therapy for B-cell lymphomas by generating patient- and tumor-specific CAR T cells; and our anticipation that our primary focus will now be on advancing the XCART technology through regulatory approval and commercialization.

 

In some cases, these statements may be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, or “continue”, or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, we cannot guarantee future results, the levels of activity, performance or achievements. These statements involve known and unknown risks and uncertainties that may cause our or our industry’s results, levels of activity, performance or achievements to be materially different from those expressed or implied by forward-looking statements.

 

The Management’s Discussion and Analysis of Financial Condition and Results of Operations (the “MD&A”) should be read together with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. This Quarterly Report, including the MD&A, contains trend analysis and other forward-looking statements. Any statements in this Quarterly Report that are not statements of historical facts are forward-looking statements. These forward-looking statements made herein are based on our current expectations, involve a number of risks and uncertainties and should not be considered as guarantees of future performance.

  

Some factors that could cause actual results to differ materially include without limitation:

     
  · failure to realize the anticipated potential of the XCART or PolyXen technology;
  · our ability to implement our business strategy;
  · the failure of the holder to exercise the warrants issued in the Private Placement;
  · our use of proceeds from the Private Placement and warrant exercise;
  · our need to raise additional working capital in the future for the purpose of further developing our XCART technology and to continue as a going concern;
  · our ability to finance our business;
  · our ability to successfully execute, manage and integrate key acquisitions and mergers, including integration of the acquisition of the XCART technology;
  · product development and commercialization risks, including our ability to successfully develop the XCART technology;
  · the impact of adverse safety outcomes and clinical trial results for CAR-T cell therapies;
  · our ability to secure and maintain a manufacturer for the XCART technology;

 

 

 

 16 

 

 

  · our ability to successfully commercialize our current and future drug candidates;
  · our ability to achieve milestone and other payments associated with our current and future co-development collaborations and strategic arrangements;
  · the impact of new technologies on our drug candidates and our competition;
  · changes in laws or regulations of governmental agencies;
  · interruptions or cancellation of existing contracts;
  · impact of competitive products and pricing;
  · product demand and market acceptance and risks;
  · the presence of competitors with greater financial resources;
  · continued availability of supplies or materials used in manufacturing at the current prices;
  · the ability of management to execute plans and motivate personnel in the execution of those plans;
  · our ability to attract and retain key personnel;
  · adverse publicity related to our products or the Company itself;
  · adverse claims relating to our intellectual property;
  · the adoption of new, or changes in, accounting principles;
  · the costs inherent with complying with statutes and regulations applicable to public reporting companies, such as the Sarbanes-Oxley Act of 2002;
  · other new lines of business that the Company may enter in the future;
  · general economic and business conditions, as well as inflationary trends;
  · the impact of natural disasters or public health emergencies, such as the COVID-19 global pandemic (including any new variant strains of the underlying virus), on our financial condition and results of operations; and
  · other factors set forth in the Risk Factors section of our Annual Report on Form 10-K and in subsequent filings with the Securities and Exchange Commission (“SEC”).

 

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in the forward-looking statements in this Quarterly Report. Other unknown or unpredictable factors also could have material adverse effects on our future results, including, but not limited to, those discussed in the section titled “Risk Factors.” The forward-looking statements in this Quarterly Report are made only as of the date of this Quarterly Report, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances. We intend that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

   

BUSINESS OVERVIEW

 

We are a biopharmaceutical company focused on progressing XCART, a personalized CAR T platform technology engineered to target patient- and tumor-specific neoantigens. We are initially advancing cell-based therapeutics targeting the unique B-cell receptor on the surface of an individual patient’s malignant tumor cells, for the treatment of B-cell lymphomas. XCART has the potential to fuel a robust pipeline of the therapeutic assets targeting high-value oncology indications. The XCART technology, developed by the Scripps Research Institute (“Scripps Research”) in collaboration with the Shemyakin-Ovchinnikov Institute of Bioorganic Chemistry, is believed to have the potential to significantly enhance the safety and efficacy of cell therapy for B-cell lymphomas by generating patient- and tumor-specific CAR T cells. We are currently advancing XCART preclinical efforts through strategic collaborations, including with Scripps Research and Pharmsynthez.

  

 

 

 17 

 

 

Additionally, we are leveraging our proprietary drug delivery platform, PolyXen®, by partnering with biotechnology and pharmaceutical companies. PolyXen is an enabling platform technology which can be applied to protein or peptide therapeutics. It employs the natural polymer polysialic acid to prolong a drug’s circulating half-life and potentially improve other pharmacological properties.

 

We incorporate our patented and proprietary technologies into a number of drug candidates currently under development with biotechnology and pharmaceutical industry collaborators to create what we believe will be the next-generation biologic drugs with improved pharmacological properties over existing therapeutics. Our drug candidates have resulted from our research activities or that of our collaborators and are in the development stage. As a result, we continue to commit a significant amount of our resources to our research and development activities and anticipate continuing to do so for the near future. To date, none of our drug candidates have received regulatory marketing authorization in the United States (“U.S.”) by the Food and Drug Administration nor in any other territories by any applicable agencies. We are receiving ongoing royalties pursuant to a license of our PolyXen technology to an industry partner.

 

We also have oncology therapeutic investigational drug candidate XBIO-101 (sodium cridanimod) for the treatment of progestin resistant endometrial cancer. We commenced a Phase 2 trial under an Investigational New Drug filing in 2017, for the potential treatment of progesterone receptor negative endometrial cancer in conjunction with progesterone therapy, with the first patient dosed in October 2017. We closed patient enrollment in the trial in March 2019 as a result of slower than expected progress on the trial resulting from patient enrollment and retention challenges and have suspended further development of XBIO-101. We currently have no plans to continue development of XBIO-101.

 

Although we hold a broad patent portfolio, the focus of our internal development efforts during the three and six months ended June 30, 2021 was on advancing the development of our XCART platform technology. 

 

Critical Accounting Estimates

 

The preparation of our financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue, costs and expenses during the reporting period. On an ongoing basis, we evaluate our estimates that are based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. The result of these evaluations forms the basis for making judgments about the carrying values of assets and liabilities and the reported amount of expenses that are not readily apparent from other sources. Because future events and their effects cannot be determined with certainty, actual results and outcomes could differ materially from our estimates, judgments and assumptions.

 

There has been no material change to our critical accounting estimates since those critical accounting estimates described in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021, as amended on April 28, 2021.

 

Effects of the COVID-19 Pandemic

 

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus, or COVID-19. The pandemic has significantly affected economic conditions in the U.S., accelerating during the first half of March 2020 and continuing into 2021, as federal, state and local governments react to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. economy. We continue to evaluate the effects of the COVID-19 pandemic on our business, and while our operations were not materially affected during the three and six months ended June 30, 2021 despite social distancing and other measures taken in response to the pandemic, the ultimate impact of the COVID-19 pandemic on our results of operations and financial condition is dependent on future developments, including the duration of the pandemic and the related extent of its severity, the pace and rate at which vaccines are administered, as well as its impact on macroeconomic conditions, which are uncertain and cannot be predicted at this time. If the global response to contain the COVID-19 pandemic escalates further or is unsuccessful, or if governmental decisions to ease pandemic related restrictions are ineffective, premature or counterproductive, we could experience a material adverse effect on our business, financial condition, results of operations and cash flows.  

   

 

 

 18 

 

 

RESULTS OF OPERATIONS

 

Comparison of Quarter Ended June 30, 2021 and 2020

 

The comparison of our historical results of operations for the fiscal quarter ended June 30, 2021 to the fiscal quarter ended June 30, 2020 is as follows:

 

Description  Quarter Ended
June 30, 2021
   Quarter Ended
June 30, 2020
   Increase
(Decrease)
   Percentage
Change
 
Revenues:                    
Royalty revenue  $287,603   $112,927   $174,676    154.7% 
Operating costs and expenses:                    
Research and development   (524,550)   (307,900)   216,650    70.4 
General and administrative   (890,704)   (787,486)   103,218    13.1 
Total operating costs and expenses   (1,415,254)   (1,095,386)   319,868    29.2 
Loss from operations   (1,127,651)   (982,459)   145,192    14.8 
Other income:                    
Other income   238    192    46    24.0 
Interest income, net   20,735    28,625    (7,890)   (27.6)
                     
Net loss  $(1,106,678)  $(953,642)  $153,036    16.1 

 

Revenue

 

Revenue for the three months ended June 30, 2021 increased by $0.2 million, or 154.7%, to $0.3 million from approximately $0.1 million for the three months ended June 30, 2020. This increase represents an increase in royalty revenue related to our sublicense agreement with Takeda Pharmaceuticals Co. Ltd. as compared to the same period in 2020, as the sublicensee continued its worldwide launch of the product.

 

Research and Development Expenses

 

Research & development (“R&D”) expenses for the three months ended June 30, 2021 increased by $0.2 million, or 70.4% to $0.5 million from $0.3 million in the comparable quarter in 2020. The table below sets forth the R&D costs incurred by the Company by category of expense for the quarters ended June 30, 2021 and 2020:

 

   Quarter Ended, 
Category of Expense  June 30, 2021   June 30, 2020 
Outside services and contract research organizations  $358,389   $150,668 
Salaries and wages   108,747    112,055 
Share-based expense   19,026    12,936 
Other   38,388    32,241 
Total research and development expense  $524,550   $307,900 

  

 

 

 19 

 

 

The increase in outside services and contract research organizations expense was primarily due to increased spending related to our XCART platform technology during the three months ended June 30, 2021 as compared to the same period in the prior year. Costs related to our XCART program were higher in 2021 as compared to the same period in 2020 as we continued to invest in our pre-clinical developments efforts. This increase was partially offset by a decrease in spending on our XBIO-101 Phase 2 clinical trial, which was closed during the first quarter of 2021.

 

General and Administrative Expenses

 

General and administrative expenses for the three months ended June 30, 2021 was $0.9 million, increasing $0.1 million, or 13.1%, compared to the same period in the prior year. The increase was primarily due to a gain on settlement of certain vendor amounts to close out our XBIO-101 trial that reduced general and administrative expenses by $0.1 million during the three months ended June 30, 2020.

 

Other Income

 

Other income was approximately $200 for both the three months ended June 30, 2021 and 2020. Other income relates to changes in foreign currency exchange rates during both periods.

 

Interest Income, net

 

Interest income decreased to approximately $21,000 during the three months ended June 30, 2021 as compared to approximately $29,000 for the same period in the prior year. This decrease is primarily due to a decrease in interest income on invested funds due to lower interest rates during the second quarter of 2021 compared to the same period in 2020.

 

Comparison of Six Months Ended June 30, 2021 and 2020

 

The comparison of our historical results of operations for the six months ended June 30, 2021 to the six months ended June 30, 2020 is as follows:

 

Description  Six Months
Ended
June 30,
2021
   Six Months
Ended
June 30,
2020
   Increase
(Decrease)
   Percentage
Change
 
Revenues:                    
Royalty revenue  $478,819   $169,676   $309,143    182.2% 
Operating costs and expenses:                    
Research and development   (1,154,279)   (667,551)   486,728    72.9 
General and administrative   (1,821,282)   (1,715,366)   105,916    6.2 
Total operating costs and expenses   (2,975,561)   (2,382,917)   592,644    24.9 
Loss from operations   (2,496,742)   (2,213,241)   283,501    12.8 
Other income:                    
Other income   1,122    58    1,064    1,834.5 
Interest income, net   42,997    80,112    (37,115)   (46.3)
                     
Net loss  $(2,452,623)  $(2,133,071)  $319,552    15.0 

 

 

 

 20 

 

 

Revenue

 

Revenue for the six months ended June 30, 2021 increased by $0.3 million, or 182.2%, to $0.5 million from approximately $0.2 million for the six months ended June 30, 2020. This increase represents an increase in royalty revenue related to our sublicense agreement with Takeda Pharmaceuticals Co. Ltd. as compared to the same period in 2020, as the sublicensee continued its worldwide launch of the product.

 

Research and Development Expenses

 

R&D expenses increased approximately $0.5 million, or 72.9% to $1.2 million for the six months ended June 30, 2021, from $0.7 million for the six months ended June 30, 2020. The table below sets forth the R&D costs incurred by us, by category of expense, for the six months ended June 30, 2021 and 2020:

 

   Six Months Ended, 
Category of Expense  June 30, 2021   June 30, 2020 
Outside services and contract research organizations  $811,013   $374,289 
Salaries and wages   238,795    201,897 
Share-based expense   29,736    26,294 
Other   74,735    65,071 
Total research and development expense  $1,154,279   $667,551 

 

The increase in outside services and contract research organizations expense was primarily due to increased spending related to our XCART platform technology during the six months ended June 30, 2021 as compared to the same period in the prior year. Costs related to our XCART program were higher in 2021 as compared to the same period in 2020 as we continued to invest in our pre-clinical developments efforts. This increase was partially offset by a decrease in spending on our XBIO-101 Phase 2 clinical trial, which was closed during the first quarter of 2021. Salaries and wages increased during the six months ended June 30, 2021 due to slightly higher employee related costs. 

 

General and Administrative Expenses

 

General and administrative expenses for the six months ended June 30, 2021 was $1.8 million, increasing $0.1 million, or 6.2%, compared to the same period in the prior year. Increases in employee related and consulting costs during the six months ended June 30, 2021 compared to the same period in 2020 were substantially offset by lower share-based expense and legal and accounting costs. In addition, general and administrative expenses for the six months ended June 30, 2020 were lower than the same period in 2021 due to a $0.1 million gain on settlement of certain vendor amounts to close out our XBIO-101 trial recognized during 2020.

 

Other Income

 

Other income was approximately $1,000 for the six months ended June 30, 2021 compared to approximately $100 for the same period in 2020. This increase was primarily related to changes in foreign currency exchange rates during the six months ended June 30, 2021 as compared to the same period in 2020.

  

Interest Income

 

Interest income decreased to approximately $43,000 during the six months ended June 30, 2021 as compared to approximately $80,000 for the same period in the prior year. This decrease is primarily due to a decrease in interest income on invested funds due to lower interest rates during 2021 compared to the same period in 2020. 

 

 

 

 21 

 

 

Liquidity and Capital Resources

 

We incurred a net loss of approximately $2.5 million for the six months ended June 30, 2021. We had an accumulated deficit of approximately $179.4 million at June 30, 2021 as compared to an accumulated deficit of approximately $176.9 million at December 31, 2020. Working capital was approximately $9.2 million at June 30, 2021 and $11.4 million at December 31, 2020, respectively. During the six months ended June 30, 2021, our working capital decreased by $2.2 million primarily due to our net loss for the six months ended June 30, 2021. We expect to continue incurring losses for the foreseeable future and may need to raise additional capital or pursue other strategic alternatives in the long-term in order to continue the pursuit of our business plan.

  

Our principal source of liquidity consists of cash. At June 30, 2021, we had approximately $9.3 million in cash and $1.0 million in current liabilities. At December 31, 2020, we had approximately $11.5 million in cash and $0.9 million in current liabilities. We have historically relied upon sales of our equity securities to fund our operations. We expect the majority of our funding through equity or equity-linked instruments, debt financings, corporate collaborations, related party funding and/or licensing agreements to continue as a trend for the foreseeable future.

 

Management evaluates whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. We have incurred substantial losses since our inception, and we expect to continue to incur operating losses in the near-term. These factors raise substantial doubt about our ability to continue as a going concern. We believe that we have access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations, related party funding, or other means to continue as a going concern. On December 4, 2020, we closed on a $6.0 million registered direct Common Stock offering resulting in $5.4 million of net proceeds to us. On July 28, 2021, we completed a $12.5 million private placement of our Common Stock resulting in approximately $11.4 million of net proceeds to us. We believe that these financings, coupled with our existing resources, will be adequate for us to continue as a going concern. However, we anticipate we may need additional capital in the long-term to pursue our business initiatives. The terms, timing and extent of any future financing will depend upon several factors, including the achievement of progress in our clinical development programs, our ability to identify and enter into licensing or other strategic arrangements, and factors related to financial, economic and market conditions, many of which are beyond our control.

  

Cash Flows from Operating Activities

 

Cash flows used in operating activities for the six months ended June 30, 2021 totaled approximately $2.2 million, which was primarily due to our net loss for the period, partially offset by non-cash charges associated with share-based expense. Cash flows used in operating activities for the six months ended June 30, 2020 totaled approximately $2.3 million, which was primarily due to our net loss for the period, partially offset by non-cash charges associated with share-based expense, and settlement of certain amounts payable to a vendor related to the close-out of our XBIO-101 trial.

  

Cash Flows from Investing Activities

 

There were no cash flows from investing activities for the six months ended June 30, 2021 and 2020.

  

Cash Flow from Financing Activities

 

There were no cash flows from financing activities for the six months ended June 30, 2021 and 2020.

 

 

 

 22 

 

 

Contractual Obligations and Commitments

 

As of June 30, 2021, there were no material changes in our contractual obligations and commitments from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021.

 

Off Balance Sheet Arrangements

 

We do not have any off-balance sheet financing arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

  

Recent Accounting Standards

 

See Note 3 in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021, for a discussion of recent accounting standards.

 

Critical Accounting Policies and Estimates

 

Our condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of our condensed consolidated financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenue, costs and expenses. We base our estimates and assumptions on historical experience and other factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates. There have been no material changes in our critical accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021.

 

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are not required to provide the information required by this Item because we are a “smaller reporting company” (as defined in Rule 12b-2 of the Exchange Act).

 

ITEM 4 – CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Our management, with the participation of our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report.

  

Based on this evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report that would have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

  

 

 

 

 23 

 

 

PART II – OTHER INFORMATION

 

ITEM 1 – LEGAL PROCEEDINGS

 

We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be a party to certain legal proceedings, incidental to the normal course of our business. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

 

ITEM 1A – RISK FACTORS

 

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021.

 

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4 – MINE SAFETY DISCLOSURES

 

Not applicable.

  

ITEM 5 – OTHER INFORMATION

 

None.

 

ITEM 6 – EXHIBITS

 

The following exhibits are incorporated herein by reference or filed as part of this report.

 

EXHIBIT NUMBER DESCRIPTION
31.1* Certification of Jeffrey F. Eisenberg, Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2* Certification of James Parslow, Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1** Certifications of Jeffrey F. Eisenberg, Principal Executive Officer, and James Parslow, Principal Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101* The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in inline XBRL, include: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) the Notes to the Condensed Consolidated Financial Statements.
104* Cover Page Interactive Data File (formatted in inline XBRL and included in Exhibit 101).
* Filed herewith.
** Exhibit 32.1 is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall such exhibits be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended, except as otherwise stated in such filing.

 

 

 

 24 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

      Xenetic Biosciences, Inc.
       
       
August 12, 2021   By:   /S/ JEFFREY F. EISENBERG
      Jeffrey F. Eisenberg
      Chief Executive Officer
(Principal Executive Officer)
       
    By:   /S/ JAMES PARSLOW
      James Parslow
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 25 

EX-31.1 2 xenetic_ex3101.htm CERTIFICATION

EXHIBIT 31.1

 

I, Jeffrey F. Eisenberg, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Xenetic Biosciences, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 12, 2021

 

 

 

By: /s/ JEFFREY F. EISENBERG                            

Jeffrey F. Eisenberg
Chief Executive Officer
(Principal Executive Officer)

 

 

 

 

EX-31.2 3 xenetic_ex3102.htm CERTIFICATION

EXHIBIT 31.2

I, James Parslow, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Xenetic Biosciences, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 12, 2021

 

 

By: /s/ JAMES PARSLOW                              

James Parslow
Chief Financial Officer
(Principal Financial and Principal Accounting Officer)

 

 

EX-32.1 4 xenetic_ex3201.htm CERTIFICATION

EXHIBIT 32.1

 

CERTIFICATION

 

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), Jeffrey F. Eisenberg, Chief Executive Officer of Xenetic Biosciences, Inc. (the “Company”), and James Parslow, Chief Financial Officer of the Company, each hereby certifies that, to the best of his knowledge:

 

The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2021, to which this Certification is attached as Exhibit 32.1 (the “Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

 

The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date: August 12, 2021

 

In Witness Whereof, the undersigned have set their hands hereto as of the 12th day of August 2021.

 

/s/ Jeffrey F. Eisenberg             /s/James Parslow            
Jeffrey F. Eisenberg James Parslow
Chief Executive Officer Chief Financial Officer

 

 

“This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Xenetic Biosciences, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.” 

 

 

 

 

 

 

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NV 45-2952962 40 Speen Street Suite 102 Framingham MA 01701 781 778-7720 Common Stock, $0.001 par value per share XBIO NASDAQ Purchase Warrants XBIOW NASDAQ Yes Yes Non-accelerated Filer true false false 9703845 9281554 11527552 917826 841958 10199380 12369510 715898 809985 10915278 13179495 305088 327396 653126 609532 958214 936928 7957 27043 966171 963971 10000000 10000000 0.001 0.001 1804394 1804394 1804394 1804394 1804 1804 0.001 0.001 970000 970000 970000 970000 970 970 0.001 0.001 50000000 50000000 8773683 8772198 8746692 8745207 8772 8771 194319716 194133511 -179354709 -176902086 253734 253734 5281180 5281180 9949107 12215524 10915278 13179495 287603 112927 478819 169676 287603 112927 478819 169676 524550 307900 1154279 667551 890704 787486 1821282 1715366 1415254 1095386 2975561 2382917 -1127651 -982459 -2496742 -2213241 238 192 1122 58 20735 28625 42997 80112 20973 28817 44119 80170 -1106678 -953642 -2452623 -2133071 -0.13 -0.15 -0.28 -0.34 8746692 6288351 8746479 6260841 2774394 2774 8773683 8772 194209794 -178248031 253734 -5281180 10945863 109922 109922 -1106678 -1106678 2774394 2774 8773683 8772 194319716 -179354709 253734 -5281180 9949107 2774394 2774 8772198 8771 194133511 -176902086 253734 -5281180 12215524 186206 186206 1485 1 -1 -2452623 -2452623 2774394 2774 8773683 8772 194319716 -179354709 253734 -5281180 9949107 2774394 2774 6311906 6311 188405830 -167188049 253734 -5281180 16199420 1188 1 -1 111734 111734 10124 10 -10 -953642 -953642 2774394 2774 6323218 6322 188517553 -168141691 253734 -5281180 15357512 2774394 2774 6092432 6092 188240451 -166008620 253734 -5281180 17213251 1188 1 -1 277332 277332 229598 229 -229 -2133071 -2133071 2774394 2774 6323218 6322 188517553 -168141691 253734 -5281180 15357512 -2452623 -2133071 0 757 17160 13765 -143639 186206 277332 -1059 -167586 2200 -484190 -2245998 -2301460 -2245998 -2301460 11527552 10367920 9281554 8066460 0 0 1 229 <p id="xdx_804_eus-gaap--BusinessDescriptionAndBasisOfPresentationTextBlock_zr8tJ708HBPl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>1.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_82F_z8aWDZA0KSh9">The Company </span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Background</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Xenetic Biosciences, Inc. (“Xenetic” or the “Company”), incorporated in the state of Nevada and based in Framingham, Massachusetts, is a biopharmaceutical company focused on progressing XCART<sup>™</sup>, a personalized Chimeric Antigen Receptor (“CAR”) T platform technology engineered to target patient- and tumor-specific neoantigens. The Company is initially advancing cell-based therapeutics targeting the unique B-cell receptor on the surface of an individual patient’s malignant tumor cells, for the treatment of B-cell lymphomas. The XCART technology, developed by the Scripps Research Institute (“Scripps Research”) in collaboration with the Shemyakin-Ovchinnikov Institute of Bioorganic Chemistry, is believed to have the potential to significantly enhance the safety and efficacy of cell therapy for B-cell lymphomas by generating patient- and tumor-specific CAR T cells.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, Xenetic is leveraging its proprietary drug delivery platform, PolyXen<sup>®</sup>, by partnering with biotechnology and pharmaceutical companies. PolyXen is an enabling platform technology which can be applied to protein or peptide therapeutics. It employs the natural polymer polysialic acid to prolong a drug’s circulating half-life and potentially improve other pharmacological properties. Xenetic incorporates its patented and proprietary technologies into drug candidates currently under development with biotechnology and pharmaceutical industry collaborators to create what the Company believes will be the next-generation biologic drugs with improved pharmacological properties over existing therapeutics.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As used in this Quarterly Report on Form 10-Q (“Quarterly Report”), unless otherwise indicated, all references herein to “Xenetic,” the “Company,” “we” or “us” refer to Xenetic Biosciences, Inc. and its wholly owned subsidiaries.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company, directly or indirectly, through its wholly-owned subsidiaries, Hesperix S.A. (“Hesperix”) and Xenetic Biosciences (U.K.) Limited (“Xenetic UK”), and the wholly-owned subsidiaries of Xenetic UK, Lipoxen Technologies Limited (“Lipoxen”), Xenetic Bioscience, Incorporated and SymbioTec, GmbH (“SymbioTec”), own various United States (“U.S.”) federal trademark registrations and applications, and unregistered trademarks and service marks, including but not limited to XCART, OncoHist™, PolyXen, ErepoXen™, and ImuXen™, which are used throughout this Quarterly Report. All other company and product names may be trademarks of the respective companies with which they are associated.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Going Concern and Management’s Plan</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management evaluates whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company has incurred substantial losses since its inception and expects to continue to incur operating losses in the near-term. These factors raise substantial doubt about its ability to continue as a going concern. The Company believes that it has access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations, related party funding, or other means to continue as a going concern. On December 4, 2020, the Company closed on a $6.0 million registered direct offering of the Company’s common stock, par value $0.001, resulting in $<span id="xdx_90D_eus-gaap--ProceedsFromIssuanceOfCommonStock_pp0n3_dm_c20200101__20201204__us-gaap--TransactionTypeAxis__custom--DirectOfferingMember_zhCI4fgSlvI5" title="Proceeds from stock offering">5.4</span> million of net proceeds to the Company. On July 28, 2021, the Company completed a $12.5 million private placement of the Company’s common stock, par value $0.001, resulting in approximately $<span id="xdx_909_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_pp0n3_dm_c20210101__20210630__us-gaap--TransactionTypeAxis__us-gaap--PrivatePlacementMember_z9AXKiwtX2t7" title="Proceed from private placement">11.4</span> million of net proceeds to the Company. The Company believes that these financings, coupled with the Company’s existing resources, will be adequate for the Company to continue as a going concern. However, the Company anticipates it may need additional capital in the long-term to pursue its business initiatives. The terms, timing and extent of any future financing will depend upon several factors, including the achievement of progress in its clinical development programs, its ability to identify and enter into licensing or other strategic arrangements, and factors related to financial, economic and market conditions, many of which are beyond its control.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">  </p> 5400000 11400000 <p id="xdx_804_ecustom--ImpactOfCovid19DisclosuerTextBlock_zmDK1ZIvprmj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>2.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_82B_zhXp9z9zjyU9">Impact of COVID-19 </span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus, or COVID-19. The pandemic has significantly affected economic conditions in the U.S., accelerating during the first half of March 2020 and continuing into 2021, as federal, state and local governments react to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. economy. The Company continues to evaluate the effects of the COVID-19 pandemic on its business and while there has been no significant impact to the Company’s operations to date, the Company at this time is uncertain of the impact this event may have on the Company’s future operations. The extent to which the COVID-19 pandemic affects our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, and such uncertainty is expected to continue for some time.</p> <p id="xdx_80B_eus-gaap--SignificantAccountingPoliciesTextBlock_zff4kZZ5MjPi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>3.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_827_zPIEIx1pHyxh">Summary of Significant Accounting Policies </span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p id="xdx_843_eus-gaap--BasisOfAccounting_zx5mB1nWkjxi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_866_zWrpPzCG7lD7">Preparation of Interim Financial Statements </span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying condensed consolidated interim financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results for the interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021 and amended on April 28, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><b><i> </i></b></p> <p id="xdx_84A_eus-gaap--ConsolidationPolicyTextBlock_zYXQXI8D0Vc3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_866_zsYVEHkJMiZ7">Principles of Consolidation</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The condensed consolidated financial statements of the Company include the accounts of Hesperix, Xenetic UK and Xenetic UK’s wholly owned subsidiaries: Lipoxen, Xenetic Bioscience, Incorporated, and SymbioTec. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_849_eus-gaap--EarningsPerSharePolicyTextBlock_zeNm5H79a4J6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_860_zSgIQ1lLPxsb">Basic and Diluted Net Loss per Share</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company computes basic net loss per share by dividing net loss applicable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding during the period. The Company computes diluted net loss per share after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three and six months ended June 30, 2021 and 2020, basic and diluted net loss per share are the same for each respective period due to the Company’s net loss position. Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would be anti-dilutive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p id="xdx_842_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zhtpSFMAE3m9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_866_zvrnFn3aoBh8">Recent Accounting Standards</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, <i>Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</i>. The guidance modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The amendment updates the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the “incurred loss” model with an “expected loss” model. This may result in earlier recognition of allowance for losses. ASU 2016-13 is effective for smaller reporting public entities for fiscal years beginning after December 15, 2022 but early adoption is permitted. The Company is currently evaluating the impact of adoption, but it does not anticipate that it will have a material effect on the Company’s consolidated financial statements.</p> <p id="xdx_843_eus-gaap--BasisOfAccounting_zx5mB1nWkjxi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_866_zWrpPzCG7lD7">Preparation of Interim Financial Statements </span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying condensed consolidated interim financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results for the interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021 and amended on April 28, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><b><i> </i></b></p> <p id="xdx_84A_eus-gaap--ConsolidationPolicyTextBlock_zYXQXI8D0Vc3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_866_zsYVEHkJMiZ7">Principles of Consolidation</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The condensed consolidated financial statements of the Company include the accounts of Hesperix, Xenetic UK and Xenetic UK’s wholly owned subsidiaries: Lipoxen, Xenetic Bioscience, Incorporated, and SymbioTec. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p id="xdx_849_eus-gaap--EarningsPerSharePolicyTextBlock_zeNm5H79a4J6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_860_zSgIQ1lLPxsb">Basic and Diluted Net Loss per Share</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company computes basic net loss per share by dividing net loss applicable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding during the period. The Company computes diluted net loss per share after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three and six months ended June 30, 2021 and 2020, basic and diluted net loss per share are the same for each respective period due to the Company’s net loss position. Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would be anti-dilutive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p id="xdx_842_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zhtpSFMAE3m9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span id="xdx_866_zvrnFn3aoBh8">Recent Accounting Standards</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, <i>Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</i>. The guidance modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The amendment updates the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the “incurred loss” model with an “expected loss” model. This may result in earlier recognition of allowance for losses. ASU 2016-13 is effective for smaller reporting public entities for fiscal years beginning after December 15, 2022 but early adoption is permitted. The Company is currently evaluating the impact of adoption, but it does not anticipate that it will have a material effect on the Company’s consolidated financial statements.</p> <p id="xdx_80D_eus-gaap--CollaborativeArrangementDisclosureTextBlock_zuyt5AB02A71" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>4.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_825_z07jAxZILXwd">Significant Strategic Collaborations</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has entered into various research, development, license and supply agreements with Takeda Pharmaceuticals Co. Ltd. (“Takeda”), Serum Institute of India (“Serum Institute”), Pharmsynthez and SynBio LLC (“SynBio”), a wholly owned subsidiary of Pharmsynthez. The Company and its collaborative partners continue to engage in research and development activities with no resultant commercial products through June 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In October 2017, the Company granted to Takeda the right to grant a non-exclusive sublicense to certain patents related to the Company’s PolyXen technology that were previously exclusively licensed to Takeda in connection with products related to the treatment of blood and bleeding disorders. Royalty payments of approximately $<span id="xdx_90B_eus-gaap--Revenues_pp0n3_dm_c20210401__20210630__srt--CounterpartyNameAxis__custom--TakedaMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_z5itnrTJplFh" title="Revenue">0.3</span> million and $<span id="xdx_903_eus-gaap--Revenues_pp0n3_dm_c20210101__20210630__srt--CounterpartyNameAxis__custom--TakedaMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zFIRbRenXDt4" title="Revenue">0.5</span> million were recorded as revenue by the Company during the three and six months ended June 30, 2021, respectively, and approximately $<span id="xdx_900_eus-gaap--Revenues_pp0n3_dm_c20200401__20200630__srt--CounterpartyNameAxis__custom--TakedaMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zwiQ0AVoscu2" title="Revenue">0.1</span> million and $<span id="xdx_903_eus-gaap--Revenues_pp0n3_dm_c20200101__20200630__srt--CounterpartyNameAxis__custom--TakedaMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zdAEBhjWDite" title="Revenue">0.2</span> million were recorded as revenue by the Company during the three and six months ended June 30, 2020, respectively. The Company’s policy is to recognize royalty payments as revenue when they are reliably measurable, which is upon receipt of reports from Takeda. The Company receives these reports in the quarter subsequent to the actual sublicensee sales. At the time the revenue was received, there were no remaining performance obligations and all other revenue recognition criteria were met. There are no active projects under the Exclusive Research, Development and License Agreement, dated August 15, 2005, by and between Lipoxen and Baxter Healthcare SA, as amended, (the “Takeda Agreement”), and the parties are discussing a potential termination of the agreement. Any such termination of the Takeda Agreement would have no impact on the Company and its non-exclusive sublicense agreement and the royalties being generated. <span id="xdx_904_eus-gaap--Revenues_pp0p0_do_c20210401__20210630__srt--CounterpartyNameAxis__custom--SerumInstituteMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zEsCCjMucnL7" title="Revenue"><span id="xdx_900_eus-gaap--Revenues_pp0p0_do_c20200401__20200630__srt--CounterpartyNameAxis__custom--SerumInstituteMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zpmeQqzbtHEc" title="Revenue"><span id="xdx_90B_eus-gaap--Revenues_pp0p0_do_c20210401__20210630__srt--CounterpartyNameAxis__custom--SynBioMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zWS1oe8h1uYf" title="Revenue"><span id="xdx_905_eus-gaap--Revenues_pp0p0_do_c20200401__20200630__srt--CounterpartyNameAxis__custom--SynBioMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zOzWzydU6Ouc" title="Revenue"><span id="xdx_905_eus-gaap--Revenues_pp0p0_do_c20210401__20210630__srt--CounterpartyNameAxis__custom--PharmsynthezMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zlSvTlnq8sij" title="Revenue"><span id="xdx_90C_eus-gaap--Revenues_pp0p0_do_c20200401__20200630__srt--CounterpartyNameAxis__custom--PharmsynthezMember__srt--ProductOrServiceAxis__custom--RoyaltyRevenueMember_zkYMSSs1ShF6" title="Revenue">No</span></span></span></span></span></span> amounts were recognized as revenue related to the Serum Institute, Pharmsynthez or SynBio agreements during the three months ended June 30, 2021 and 2020, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 15, 2020, the Company and Scripps Research entered into a Research Funding and Option Agreement (the “Scripps Agreement”), pursuant to which the Company has agreed to provide Scripps Research an aggregate of up to $3.0 million to fund research relating to advancing the pre-clinical development of XCART. The research funding is payable by the Company to Scripps Research on a quarterly basis in accordance with a negotiated budget, which provides for an initial payment of approximately $300,000 on the date of the Scripps Agreement and subsequent quarterly payments of approximately $300,000 over a 27-month period. Under the Scripps Agreement, Scripps Research has granted the Company a license within the Field (as defined in the Scripps Agreement) to any Patent Rights or Technology (as defined in the Scripps Agreement) under the terms of that certain license agreement with Scripps Research, dated February 25, 2019, assigned to the Company on March 1, 2019. Additionally, the Company has the option to acquire a worldwide exclusive license to Scripps Research’s rights in the Technology or Patent Rights not already licensed to the Company, as well as a non-exclusive, royalty-free, non-transferrable license to make and use Scripps Research Technology (as defined in the Scripps Agreement) solely for the Company’s internal research purposes during the performance of the research program contemplated by the Scripps Agreement. The Company has paid $<span id="xdx_90B_eus-gaap--ResearchAndDevelopmentExpense_pp0n3_dm_c20210101__20210630__srt--CounterpartyNameAxis__custom--ScrippsAgreementMember_zOYbWJk1GxL9" title="Research and development expenses">1.5</span> million to Scripps Research under this agreement through June 30, 2021. As of June 30, 2021 and December 31, 2020, approximately $<span id="xdx_90E_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iI_pp0n3_dm_c20210630__srt--CounterpartyNameAxis__custom--ScrippsAgreementMember_ze2VP8SzoJ4l" title="Prepaid expenses and other current asset"><span id="xdx_903_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iI_pp0n3_dm_c20201231__srt--CounterpartyNameAxis__custom--ScrippsAgreementMember_zZVioIIBZmkh" title="Prepaid expenses and other current asset">0.2</span></span> million has been recognized as an advance payment under this agreement and is included in Prepaid expenses and other current assets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> 300000 500000 100000 200000 0 0 0 0 0 0 1500000 200000 200000 <p id="xdx_807_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_z0f9JY2Nw5p7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>5.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_828_zmCwFnIpHgnb">Property and Equipment, net</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment, net consists of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--PropertyPlantAndEquipmentTextBlock_z86NSwvK5uN7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt"><span id="xdx_8B1_zQqYgOEpU968" style="display: none">Schedule of Property and Equipment, Net</span></td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td id="xdx_49B_20210630_z2nXVJJ0wRZc" style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td id="xdx_49A_20201231_zqCgulN7Wfbd" style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,<br/> 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,<br/> 2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Office and computer equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeAndComputerEquipmentMember_pp0p0" style="width: 13%; text-align: right" title="Property and equipment - at cost">42,289</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeAndComputerEquipmentMember_pp0p0" style="width: 13%; text-align: right" title="Property and equipment - at cost">42,289</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Property and equipment - at cost">14,738</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Property and equipment - at cost">14,738</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Property and equipment – at cost</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_c20210630_pp0p0" style="text-align: right" title="Property and equipment - at cost">57,027</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20201231_pp0p0" style="text-align: right" title="Property and equipment - at cost">57,027</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20210630_zGJdtsYerPUl" style="border-bottom: Black 1pt solid; text-align: right" title="Less accumulated depreciation">(57,027</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20201231_zC1eUqrrWco4" style="border-bottom: Black 1pt solid; text-align: right" title="Less accumulated depreciation">(57,027</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment – net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_d0_c20210630_znTUb3QELrgh" style="border-bottom: Black 2.5pt double; text-align: right" title="Property and equipment, net">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_d0_c20201231_zt9fLC2FxJ4e" style="border-bottom: Black 2.5pt double; text-align: right" title="Property and equipment, net">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation expense was approximately $<span id="xdx_904_eus-gaap--DepreciationAndAmortization_pp0p0_c20200401__20200630_zR3BCFBCcEUh" title="Depreciation expense">200</span> and $<span id="xdx_901_eus-gaap--DepreciationAndAmortization_pp0p0_c20200101__20200630_zEuRh9tiU3yi" title="Depreciation expense">800</span> for the three and six months ended June 30, 2020. There was <span id="xdx_900_eus-gaap--DepreciationAndAmortization_pp0p0_do_c20210401__20210630_zrrh9v7zLLva" title="Depreciation expense"><span id="xdx_907_eus-gaap--DepreciationAndAmortization_pp0p0_do_c20210101__20210630_zQmbW7YsN4dg" title="Depreciation expense">no</span></span> depreciation expense for the three and six months ended June 30, 2021.</p> <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--PropertyPlantAndEquipmentTextBlock_z86NSwvK5uN7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment, net (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt"><span id="xdx_8B1_zQqYgOEpU968" style="display: none">Schedule of Property and Equipment, Net</span></td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td id="xdx_49B_20210630_z2nXVJJ0wRZc" style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td id="xdx_49A_20201231_zqCgulN7Wfbd" style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,<br/> 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,<br/> 2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Office and computer equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeAndComputerEquipmentMember_pp0p0" style="width: 13%; text-align: right" title="Property and equipment - at cost">42,289</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeAndComputerEquipmentMember_pp0p0" style="width: 13%; text-align: right" title="Property and equipment - at cost">42,289</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Property and equipment - at cost">14,738</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Property and equipment - at cost">14,738</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Property and equipment – at cost</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_c20210630_pp0p0" style="text-align: right" title="Property and equipment - at cost">57,027</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20201231_pp0p0" style="text-align: right" title="Property and equipment - at cost">57,027</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20210630_zGJdtsYerPUl" style="border-bottom: Black 1pt solid; text-align: right" title="Less accumulated depreciation">(57,027</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20201231_zC1eUqrrWco4" style="border-bottom: Black 1pt solid; text-align: right" title="Less accumulated depreciation">(57,027</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment – net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_d0_c20210630_znTUb3QELrgh" style="border-bottom: Black 2.5pt double; text-align: right" title="Property and equipment, net">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_d0_c20201231_zt9fLC2FxJ4e" style="border-bottom: Black 2.5pt double; text-align: right" title="Property and equipment, net">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 42289 42289 14738 14738 57027 57027 57027 57027 0 0 200 800 0 0 <p id="xdx_80E_eus-gaap--IntangibleAssetsDisclosureTextBlock_zB5vhYjzQLQg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">  </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>6.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_824_z8diYS9ALNCc">Indefinite-Lived Intangible Assets</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s indefinite-lived intangible asset, OncoHist, is in-process research and development (“IPR&amp;D”) relating to the Company’s business combination with SymbioTec in 2012. IPR&amp;D is tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, although it is to be tested at least annually until the project is completed or abandoned. The Company completed an impairment analysis of the IPR&amp;D during 2020 and concluded that the following factors indicated that the IPR&amp;D was impaired: a decision by management to delay indefinitely any further development of the IPR&amp;D and to not support the underlying intellectual property; the failure to sell or license the IPR&amp;D to a third party; and the reduction in market capitalization. The Company recorded an asset impairment charge of $<span id="xdx_901_eus-gaap--AssetImpairmentCharges_pn5n6_c20200701__20200930__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--OncoHistMember_zwOMffmkSuH8" title="Impairment charge">9.2</span> million during the third quarter of 2020 representing the excess of the IPR&amp;D asset’s carrying value over its estimated fair value. A reconciliation of the change in the carrying value of Indefinite-Lived Intangible Assets is as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_88C_eus-gaap--ScheduleOfIndefiniteLivedIntangibleAssetsTableTextBlock_z87xvzuL47nl" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 75%; margin-right: auto" summary="xdx: Disclosure - Indefinite-Lived Intangible Assets (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><span id="xdx_8B6_zdyANYQni5W5" style="display: none">Schedule of Indefinite-Lived Intangible Asset</span></td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 58%">Balance as of January 1, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Goodwill_iS_pp0p0_c20200101__20201231_zMVRu8nwSI3j" style="width: 13%; text-align: right" title="Goodwill, beginning balance">9,243,128</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Impairment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--GoodwillImpairmentLoss_iN_pp0p0_di_c20200101__20201231_zIiNRG2Z1Nd6" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill impairment">(9,243,128</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt">Balance as of December 31, 2020</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--Goodwill_iE_pp0p0_d0_c20200101__20201231_zYr1z0ENSFrh" style="border-bottom: Black 2.5pt double; text-align: right" title="Goodwill, ending balance">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 9200000 <table cellpadding="0" cellspacing="0" id="xdx_88C_eus-gaap--ScheduleOfIndefiniteLivedIntangibleAssetsTableTextBlock_z87xvzuL47nl" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 75%; margin-right: auto" summary="xdx: Disclosure - Indefinite-Lived Intangible Assets (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><span id="xdx_8B6_zdyANYQni5W5" style="display: none">Schedule of Indefinite-Lived Intangible Asset</span></td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 58%">Balance as of January 1, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Goodwill_iS_pp0p0_c20200101__20201231_zMVRu8nwSI3j" style="width: 13%; text-align: right" title="Goodwill, beginning balance">9,243,128</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Impairment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--GoodwillImpairmentLoss_iN_pp0p0_di_c20200101__20201231_zIiNRG2Z1Nd6" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill impairment">(9,243,128</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt">Balance as of December 31, 2020</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--Goodwill_iE_pp0p0_d0_c20200101__20201231_zYr1z0ENSFrh" style="border-bottom: Black 2.5pt double; text-align: right" title="Goodwill, ending balance">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 9243128 9243128 0 <p id="xdx_803_eus-gaap--FairValueDisclosuresTextBlock_zUGkfg6nhAi6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>7.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_820_zVg6Q5l0ffk9">Fair Value Measurements </span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting Standards Codification Topic 820, <i>Fair Value Measurement,</i> defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The carrying amount of certain of the Company’s financial instruments approximate fair value due to their short maturities. As of June 30, 2021 and December 31, 2020, the carrying amounts of the Company’s financial instruments approximates fair value due to their short maturities. There were <span id="xdx_907_eus-gaap--FinancialInstrumentsOwnedAtFairValue_iI_pp0p0_do_c20210630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z0Nn17SxdlX8" title="Financial instruments fair value"><span id="xdx_904_eus-gaap--FinancialInstrumentsOwnedAtFairValue_iI_pp0p0_do_c20200630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zyuf0p31Mpz8" title="Financial instruments fair value">no</span></span> financial instruments classified as Level 3 in the fair value hierarchy during the three and six months ended June 30, 2021 and 2020.</p> 0 0 <p id="xdx_807_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zi5vXRuGW5R6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>8.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_82B_zgyHtUmxz5J8">Stockholders’ Equity </span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Warrants</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with certain of the Company’s collaboration agreements and consulting arrangements, the Company has issued warrants to purchase shares of common stock as payment for services. As of June 30, 2021 and December 31, 2020, collaboration warrants to purchase <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightOutstanding_c20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_pdd" title="Warrants outstanding">0</span> and <span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightOutstanding_c20201231__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_pdd" title="Warrants outstanding">30,307</span> shares of common stock were outstanding. <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20210401__20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zcB3g29UH9F2" title="Warrants granted"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20210101__20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_z8OMMJlNxfQ8" title="Warrants granted"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_do_c20210101__20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_z7EHbu7W7azg" title="Warrants exercised"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_do_c20210401__20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zraoy27PYmy5" title="Warrants exercised"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_do_c20210101__20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zkStBeCUOtqk" title="Warrants exercised">No</span></span></span></span></span> collaboration warrants were granted or exercised in connection with collaboration or consulting services during the three and six months ended June 30, 2021. Collaboration warrants to purchase <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_c20210401__20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zZ2Zxg9Q3Rp3" title="Warrants expired"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_c20210101__20210630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_pdd" title="Warrants expired">30,307</span></span> shares expired during the three and six months ended June 30, 2021. <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20200401__20200630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zqzdDoLLnOpi" title="Warrants granted"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20200101__20200630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zipT6rMs8OP6" title="Warrants granted"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_do_c20200401__20200630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zGVm79wv5Eyj" title="Warrants exercised"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_do_c20200101__20200630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zvmH6Fz8sVCi" title="Warrants exercised">No</span></span></span></span> collaboration warrants were granted or exercised and <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_dn_c20200401__20200630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zHX4a89P52Q6" title="Warrants expired"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_dn_c20200101__20200630__us-gaap--AwardTypeAxis__custom--ColllaborationWarrantsMember_zYHXHAjkkD7b" title="Warrants expired">none</span></span> expired in connection with collaboration or consulting services during the three and six months ended June 30, 2020, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the Company has outstanding warrants to purchase an aggregate of <span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightOutstanding_c20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_pdd" title="Warrants outstanding">347,505</span> and <span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightOutstanding_c20201231__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_pdd" title="Warrants outstanding">378,453</span> shares of common stock in connection with debt and equity financing arrangements as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, these warrants have an average weighted exercise price of $<span id="xdx_90A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOtherThanOptionsOutstandingWeightedAverageExercisePrice_c20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_pdd" title="Warrants weighted average exercise price"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOtherThanOptionsOutstandingWeightedAverageExercisePrice_c20201231__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_pdd" title="Warrants weighted average exercise price">36.74</span></span> per share and expiration dates ranging from <span id="xdx_904_ecustom--WarrantExpirationDates_c20210101__20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember" title="Warrant expiration dates">July 2021 through September 2026</span>. <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20210401__20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zcRztn5su4t5" title="Warrants granted"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20210101__20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zRCxVvfTiz08" title="Warrants granted"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20200401__20200630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zdneDZ5Sl8Ob" title="Warrants granted"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_do_c20200101__20200630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zPfN28iBuAy" title="Warrants granted">No</span></span></span></span> debt and equity financing warrants were granted during the three and six months ended June 30, 2021 and 2020. During the six months ended June 30, 2021 and 2020, debt and equity financing warrants to purchase approximately <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_c20210101__20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zgQzi4UjRgLi" title="Warrants exercised">1,485</span> and <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_pdn3_dm_c20200101__20200630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zdyaGvsSUYIc" title="Warrants exercised">0.2</span> million shares of common stock, respectively, were exercised on a cashless one-for-one basis. <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_do_c20210401__20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zKsjg490Eol4" title="Warrants exercised"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_do_c20200401__20200630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zz2w3gMsm075" title="Warrants exercised">No</span></span> debt and equity financing warrants were exercised during the three months ended June 30, 2021 and 2020, respectively. In addition, approximately <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_c20210401__20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zVRRfwNx6vfc" title="Warrants expired">0</span> and <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_c20210101__20210630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zQpCp4aIhxA8" title="Warrants expired">29,000</span> debt and equity warrants expired during the three and six months ended June 30, 2021. <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_do_c20200401__20200630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zHaNYNrh3xe9" title="Warrants expired"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_do_c20200101__20200630__us-gaap--AwardTypeAxis__custom--DebtAndEquityFinancingWarrantsMember_zWUPJyFPnXBg" title="Warrants expired">No</span></span> debt and equity warrants expired during the three and six months ended June 30, 2020.</p> 0 30307 0 0 0 0 0 30307 30307 0 0 0 0 0 0 347505 378453 36.74 36.74 July 2021 through September 2026 0 0 0 0 1485 200000 0 0 0 29000 0 0 <p id="xdx_809_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_z9jovuMrJPej" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>9.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_825_znHGTL2GDGmk">Share-Based Expense </span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total share-based expense related to stock options, restricted stock units (“RSUs”) and common stock awards was approximately $<span id="xdx_901_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20210401__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z1yxpeJjZgp5" title="Share-based compensation expense"><span id="xdx_906_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20200401__20200630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zANqtDNdwSd8" title="Share-based compensation expense">0.1</span></span> million during the three months ended June 30, 2021 and 2020 and approximately $<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zRkBhUupRNhj" title="Share-based compensation expense">0.2</span> million and $<span id="xdx_907_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20200101__20200630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zYm6CUmBQ9Kb" title="Share-based compensation expense">0.3</span> million for the six months ended June 30, 2021 and 2020, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Share-based compensation expense is classified in the condensed consolidated statements of operations as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" id="xdx_884_eus-gaap--ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock_zdJAvkNIsS52" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Share-Based Expense (Details - Share based expense)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt"><span id="xdx_8B2_zHSHrjy8hVg7" style="display: none">Schedule of Share-Based Compensation Expense</span></td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left">Research and development expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20210401__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_z96CfFRWQsu8" style="width: 11%; text-align: right" title="Share-based compensation">19,026</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200401__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zKve5DLKBQEk" style="width: 11%; text-align: right" title="Share-based compensation">12,936</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_pp0p0" style="width: 11%; text-align: right" title="Share-based compensation">29,736</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--AllocatedShareBasedCompensationExpense_c20200101__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_pp0p0" style="width: 11%; text-align: right" title="Share-based compensation">26,294</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">General and administrative expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20210401__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zp3TUv3bs4U8" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">90,896</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200401__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zw11k9bzeQye" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">98,798</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">156,470</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AllocatedShareBasedCompensationExpense_c20200101__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">251,038</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20210401__20210630_zHKAjpT7WMfk" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">109,922</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200401__20200630_zLgV5cb8Y6k6" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">111,734</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20210630_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">186,206</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--AllocatedShareBasedCompensationExpense_c20200101__20200630_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">277,332</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify; color: white"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Employee Stock Options</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the six months ended June 30, 2021, the Company granted <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z00b2zsEWRCb" title="Options granted">200,000</span> stock option awards to purchase shares of common stock. The weighted average grant date fair value per option share was $<span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_pdd" title="Weighted average grant date fair value">2.34</span>. Key assumptions used in the Black-Scholes option pricing model for options granted during the six months ending June 30, 2021 were <span style="background-color: white">the Company’s stock price, a risk free rate of <span id="xdx_90C_eus-gaap--ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodRiskFreeInterestRate_dp_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zz4DZeDD8Qdf" title="Risk free rate">1.08</span>%, an expected life of <span id="xdx_905_eus-gaap--ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedTerm1_dtY_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z5j1XacrrsH" title="Expected term">5.88</span> years and an expected volatility rate of <span id="xdx_90D_eus-gaap--ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedVolatilityRate_dp_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z6y6pFdifhIh" title="Volatility rate">134.47</span>%. </span>There were <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_do_c20200101__20200630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zQNhLdxHrmia" title="Options granted"><span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_do_c20210101__20210630__us-gaap--AwardTypeAxis__custom--NonEmployeeStockOptionsMember_zDrsaFnDdgJ3" title="Options exercised">no</span></span> employee stock options or RSUs granted or exercised during the six months ended June 30, 2020. The Company recognized a total of $<span id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20210401__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zEHVMZRgaD68" title="Share-based compensation expense"><span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20200401__20200630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zs6ht6Jz3ifa" title="Share-based compensation expense">0.1</span></span> million of compensation expense related to employee stock options during the three months ended June 30, 2021 and 2020 and $<span id="xdx_90C_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zcLZkdcLq6Ei" title="Share-based compensation expense">0.2</span> million and $<span id="xdx_90C_eus-gaap--AllocatedShareBasedCompensationExpense_pp0n3_dm_c20200101__20200630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zhXDJfOQ4fab" title="Share-based compensation expense">0.3</span> million during the six months ended June 30, 2021 and 2020, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Non-Employee Stock Options</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company did <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_do_c20210101__20210630__us-gaap--AwardTypeAxis__custom--NonEmployeeStockOptionsMember_zjGva0afh0Oa" title="Options granted"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_do_c20200101__20200630__us-gaap--AwardTypeAxis__custom--NonEmployeeStockOptionsMember_zZbOCxz3Yly2" title="Options granted">no</span></span>t grant any non-employee stock options during the six months ended June 30, 2021 and 2020. The Company did <span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20210401__20210630__us-gaap--AwardTypeAxis__custom--NonEmployeeStockOptionsMember_zKIxbC9OkFwj" title="Share-based compensation expense"><span id="xdx_90B_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20210101__20210630__us-gaap--AwardTypeAxis__custom--NonEmployeeStockOptionsMember_z79EvuS5bxja" title="Share-based compensation expense">no</span></span>t recognize any expense related to non-employee stock options during the three and six months ended June 30, 2021. The Company recognized approximately $<span id="xdx_90C_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200401__20200630__us-gaap--AwardTypeAxis__custom--NonEmployeeStockOptionsMember_z1FHVBHhdZw6" title="Share-based compensation expense">4,000</span> and $<span id="xdx_905_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200101__20200630__us-gaap--AwardTypeAxis__custom--NonEmployeeStockOptionsMember_znBzmVQU1k7b" title="Share-based compensation expense">7,000</span> of expense during the three and six months ended June 30, 2020, respectively.</p> 100000 100000 200000 300000 <table cellpadding="0" cellspacing="0" id="xdx_884_eus-gaap--ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock_zdJAvkNIsS52" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Share-Based Expense (Details - Share based expense)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt"><span id="xdx_8B2_zHSHrjy8hVg7" style="display: none">Schedule of Share-Based Compensation Expense</span></td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left">Research and development expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20210401__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_z96CfFRWQsu8" style="width: 11%; text-align: right" title="Share-based compensation">19,026</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200401__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zKve5DLKBQEk" style="width: 11%; text-align: right" title="Share-based compensation">12,936</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_pp0p0" style="width: 11%; text-align: right" title="Share-based compensation">29,736</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--AllocatedShareBasedCompensationExpense_c20200101__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_pp0p0" style="width: 11%; text-align: right" title="Share-based compensation">26,294</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">General and administrative expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20210401__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zp3TUv3bs4U8" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">90,896</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200401__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zw11k9bzeQye" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">98,798</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20210630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">156,470</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AllocatedShareBasedCompensationExpense_c20200101__20200630__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Share-based compensation">251,038</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20210401__20210630_zHKAjpT7WMfk" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">109,922</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20200401__20200630_zLgV5cb8Y6k6" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">111,734</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20210630_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">186,206</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--AllocatedShareBasedCompensationExpense_c20200101__20200630_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right" title="Share-based compensation">277,332</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 19026 12936 29736 26294 90896 98798 156470 251038 109922 111734 186206 277332 200000 2.34 0.0108 P5Y10M17D 1.3447 0 0 100000 100000 200000 300000 0 0 0 0 4000 7000 <p id="xdx_803_eus-gaap--IncomeTaxDisclosureTextBlock_zySwKteHaix9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.45pt"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>10.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_826_zWh4BMYfp3M8">Income Taxes</span> </b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three and six months ended June 30, 2021 and 2020, there was <span id="xdx_90D_eus-gaap--IncomeTaxExpenseBenefit_pp0p0_do_c20210401__20210630_zjHk7Qz3KvPh" title="Provision for income taxes"><span id="xdx_904_eus-gaap--IncomeTaxExpenseBenefit_pp0p0_do_c20210101__20210630_zvFxvHWiCwih" title="Provision for income taxes"><span id="xdx_90E_eus-gaap--IncomeTaxExpenseBenefit_pp0p0_do_c20200401__20200630_ztD12IrTyCCc" title="Provision for income taxes"><span id="xdx_903_eus-gaap--IncomeTaxExpenseBenefit_pp0p0_do_c20200101__20200630_zwJZuhauA4d7" title="Provision for income taxes">no</span></span></span></span> provision for income taxes as the Company incurred losses during both periods. Deferred tax assets and liabilities reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company records a valuation allowance against its deferred tax assets as the Company believes it is more likely than not the deferred tax assets will not be realized. The valuation allowance against deferred tax assets was approximately $<span id="xdx_90D_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_pp0n3_dm_c20210630_z5C3PiUE3Uo3" title="Deferred tax valuation allowance">30.2</span> million and $<span id="xdx_909_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_pp0n3_dm_c20201231_zqha8Xha3PYf" title="Deferred tax valuation allowance">29.6</span> million as of June 30, 2021 and December 31, 2020, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of June 30, 2021 and December 31, 2020, the Company did <span id="xdx_90D_eus-gaap--UnrecognizedTaxBenefits_iI_pp0p0_do_c20210630_zy4VpcIKo2Ii" title="Unrecognized tax positions"><span id="xdx_903_eus-gaap--UnrecognizedTaxBenefits_iI_pp0p0_do_c20201231_zxz69BccxE4d" title="Unrecognized tax positions">no</span></span>t record any unrecognized tax positions.</p> 0 0 0 0 30200000 29600000 0 0 <p id="xdx_80F_eus-gaap--CommitmentsDisclosureTextBlock_zcPfGTT0Bhuh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>11.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_824_zLZF9K5qwgDf">Commitments</span> </b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Supplemental cash flow information and non-cash activity related to our operating leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_898_eus-gaap--CashFlowOperatingCapitalTableTextBlock_zoS0DEWttas8" style="font: 10pt Times New Roman, Times, Serif; background-color: White; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments (Details - Cash flow Information)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B2_zbjamEoZPP5b" style="display: none">Cash flow information regarding leases</span></td><td> </td> <td colspan="2" id="xdx_497_20210101__20210630_zS7xeK3r5IEk" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Six Months</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>June 30,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--SupplementalCashFlowInformationAbstract_iB" style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Operating cash flow information:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeasePayments_i01_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">17,160</td><td style="width: 1%; text-align: left"> </td></tr> </table> <p id="xdx_8AE_zKDhHg0hbFx7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Supplemental balance sheet information related to our operating leases are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--LeaseCostTableTextBlock_zamHK2Mrx8R5" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments (Details - lease information)"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><span id="xdx_8BD_zgIygmfk3Rx3" style="display: none">Supplemental information related to operating leases</span></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20210630_z3KW6qwj7Yzk" style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: justify">Right-of-use assets - ST</td><td style="width: 2%"> </td> <td style="width: 40%; text-align: left">Prepaid expenses and other</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">37,408</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FinanceLeaseRightOfUseAsset_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Right-of-use assets - LT</td><td> </td> <td style="text-align: left">Other assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,957</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify">Current lease liabilities</td><td> </td> <td style="text-align: left">Accrued expenses and other current liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,408</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Non-current lease liabilities</td><td> </td> <td style="text-align: left">Other long-term liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,957</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A3_zDuiObQuj1Ef" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_898_eus-gaap--CashFlowOperatingCapitalTableTextBlock_zoS0DEWttas8" style="font: 10pt Times New Roman, Times, Serif; background-color: White; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments (Details - Cash flow Information)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B2_zbjamEoZPP5b" style="display: none">Cash flow information regarding leases</span></td><td> </td> <td colspan="2" id="xdx_497_20210101__20210630_zS7xeK3r5IEk" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Six Months</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Ended</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>June 30,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--SupplementalCashFlowInformationAbstract_iB" style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Operating cash flow information:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeasePayments_i01_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">17,160</td><td style="width: 1%; text-align: left"> </td></tr> </table> 17160 <table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--LeaseCostTableTextBlock_zamHK2Mrx8R5" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments (Details - lease information)"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><span id="xdx_8BD_zgIygmfk3Rx3" style="display: none">Supplemental information related to operating leases</span></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20210630_z3KW6qwj7Yzk" style="font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: justify">Right-of-use assets - ST</td><td style="width: 2%"> </td> <td style="width: 40%; text-align: left">Prepaid expenses and other</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">37,408</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FinanceLeaseRightOfUseAsset_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Right-of-use assets - LT</td><td> </td> <td style="text-align: left">Other assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,957</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify">Current lease liabilities</td><td> </td> <td style="text-align: left">Accrued expenses and other current liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,408</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Non-current lease liabilities</td><td> </td> <td style="text-align: left">Other long-term liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,957</td><td style="text-align: left"> </td></tr> </table> 37408 7957 37408 7957 <p id="xdx_80C_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_z4BJyoGCVjx5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>12.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_827_z2iIQXh0G23f">Related Party Transactions</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has entered into various research, development, license and supply agreements with Serum Institute and Pharmsynthez (as well as SynBio), each a related party whose relationship has not materially changed from that disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">During the fourth quarter of 2019, the Company entered into a loan agreement with Pharmsynthez (the “Pharmsynthez Loan”), pursuant to which the Company advanced Pharmsynthez an aggregate principal amount of up to $<span id="xdx_903_eus-gaap--PaymentsToAcquireNotesReceivable_pp0p0_c20190101__20191231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--CoDevelopmentAgreementMember_ztbh07HkswJh" title="Payment for note receivable">500,000</span> to be used for the development of a specific product under the Company’s co-development agreement with SynBio. The Pharmsynthez Loan had a term of 15-months and accrued interest at a rate of <span id="xdx_90C_ecustom--NoteReceivableInterestRate_iI_dp_c20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--CoDevelopmentAgreementMember_zuSiFuyx2sXe" title="Note receivable interest rate">10</span>% per annum. The Pharmsynthez Loan is guaranteed by all of the operating subsidiaries of Pharmsynthez, including SynBio and AS Kevelt, and is secured by all of the equity interests of the Company owned by Pharmsynthez and SynBio. The Company recognized approximately $<span id="xdx_902_eus-gaap--InterestAndFeeIncomeOtherLoans_pp0p0_c20210401__20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--CoDevelopmentAgreementMember_zPoouc6o5Ilb" title="Interest income">11,000</span> and $<span id="xdx_909_eus-gaap--InterestAndFeeIncomeOtherLoans_pp0p0_c20210101__20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--CoDevelopmentAgreementMember_zniXX6BkIE1c" title="Interest income">23,000</span> of interest income related to this loan during the three and six months ended June 30, 2021, respectively. The Company recognized approximately $<span id="xdx_901_eus-gaap--InterestAndFeeIncomeOtherLoans_pp0p0_c20200401__20200630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--CoDevelopmentAgreementMember_zHOYsJKs7kGd" title="Interest income">13,000</span> and $<span id="xdx_908_eus-gaap--InterestAndFeeIncomeOtherLoans_pp0p0_c20200101__20200630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--CoDevelopmentAgreementMember_zy2LFPwW4VHb" title="Interest income">25,000</span> of interest income related to this loan during the three and six months ended June 30, 2020, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective January 23, 2021, the Company entered into a First Amendment to Loan Agreement and Other Loan Documents with Pharmsynthez, Kevelt and SynBio (the “Pharmsynthez Loan Extension”) to modify the repayment terms and maturity of the Pharmsynthez Loan to January 2022. The terms of the Pharmsynthez Loan Extension called for two (2) equal monthly principal payments of $25,000 in each of January 23, 2021 and February 28, 2021 and the payment of all outstanding accrued interest in six (6) equal monthly installments from January 31, 2021 through June 30, 2021. In addition, the Pharmsynthez Loan Extension requires monthly interest payments and the repayment of the remaining principal amount in six (6) equal monthly installments from August 2021 through January 2022. All other terms of the Pharmsynthez Loan remain in effect. As of June 30, 2021, approximately $<span id="xdx_90B_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iI_pp0n3_dm_c20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember__us-gaap--BalanceSheetLocationAxis__custom--PrepaidExpensesAndOtherMember_zjAcWMb33WFf" title="Prepaid expenses and other current asset">0.5</span> million was included in Prepaid expenses and other on the condensed consolidated balance sheet. As of December 31, 2020, approximately $<span id="xdx_90B_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iI_pp0n3_dm_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember__us-gaap--BalanceSheetLocationAxis__custom--PrepaidExpensesAndOtherMember_zTyBodQgtXO" title="Prepaid expenses and other current asset">0.5</span> million was classified within Prepaid expenses and other and approximately $<span id="xdx_90B_eus-gaap--OtherPrepaidExpenseCurrent_iI_pp0n3_dm_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember_zJZN1AFD571h" title="Prepaid expenses and other current asset">0.1</span> million was classified within Other assets on the consolidated balance sheet.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the third quarter of 2019, the Company entered into a Sponsored Research Agreement with Pharmsynthez (the “SRA”) related to experiments identified by the Company to support its efforts for initial tech transfer of the XCART methods to a future academic collaborator. Under the agreement, the Company made a $<span id="xdx_90D_eus-gaap--PaymentsToAcquireInProcessResearchAndDevelopment_c20190101__20191231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember_pp0p0" title="Payment for research agreement">350,000</span> payment to Pharmsynthez during the third quarter of 2019, which was refundable on pro rata basis if the project is terminated prematurely as a result of Pharmsynthez failing to perform the work. On June 12, 2020, the Company and Pharmsynthez entered into a Master Services Agreement (“MSA”) to advance the development of the Company’s XCART technology for B-cell malignancies. The MSA terminated and superseded the SRA. The Company expensed approximately $<span id="xdx_902_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20210401__20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember_zjHzaCXO4Oi3" title="Research and development expense">10,000</span> and $<span id="xdx_906_eus-gaap--ResearchAndDevelopmentExpense_pp0n3_dm_c20210101__20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember_zwlEXrZmfGlk" title="Research and development expense">0.1</span> million related to work performed under these agreements during the three and six months ended June 30, 2021. The Company expensed approximately $<span id="xdx_904_eus-gaap--ResearchAndDevelopmentExpense_pp0n3_dm_c20200101__20200630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember_zop7eQXcizFk" title="Research and development expense">0.1</span> million related to work performed under these agreements during the six months ended June 30, 2020. <span id="xdx_905_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_do_c20200401__20200630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember_zczbtuXUjKS9" title="Research and development expense">No</span> expense was recorded during the three months ended June 30, 2020. As of June 30, 2021, approximately $<span id="xdx_904_eus-gaap--AccruedLiabilitiesCurrent_iI_pp0p0_c20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember__us-gaap--BalanceSheetLocationAxis__custom--PrepaidExpensesAndOtherMember_zbNM2BNg0TR" title="Research expense accrued">40,000</span> was accrued and included in Accrued expenses and other current liabilities on the condensed consolidated balance sheet. As of December 31, 2020, approximately $<span id="xdx_903_ecustom--AdvancedPayment_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PharmsynthezMember__us-gaap--TransactionTypeAxis__custom--SponsoredResearchAgreementMember_pp0p0" title="Advanced payment">25,000</span> was recorded as an advanced payment and included in Prepaid expenses and other on the consolidated balance sheet.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the MSA, Pharmsynthez agreed to provide services pursuant to work orders agreed upon by the parties from time to time, which services include, but are not limited to, acting as the Company’s primary contract research organization to assist in managing collaborations with multiple academic institutions in Russia and Belarus. The Company is required to pay reasonable fees, expenses and pass-through costs incurred by Pharmsynthez in providing the services in accordance with a budget and payment terms set forth in each work order. Additionally, in the event that a work order provides for milestone payments, the Company is required to make such payments to Pharmsynthez, or third party service providers designated by Pharmsynthez, in accordance with the terms set forth in the work order, which milestone payments may be made, at the sole discretion of the Company, in cash or shares of the Company’s common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company and Pharmsynthez executed a work order on June 12, 2020 (the “Work Order”) under the MSA pursuant to which Pharmsynthez agreed to conduct a Stage 1 study of the Company’s XCART technology under the research program as set forth in the Work Order. The activities to be performed under the Work Order are expected to take approximately 20 months unless earlier terminated in accordance with the MSA. Under the terms of the Work Order, the Company paid Pharmsynthez $51,000 as an initial payment for trial startup costs, which amount was credited against the amounts paid under the SRA. The Work Order provides for additional pass-through costs to be invoiced by Pharmsynthez upon execution of contracts with third party sites, which will be further credited against the SRA. The total cost under the Work Order is currently estimated to be approximately $1.8 million. Through June 30, 2021, all costs incurred under the MSA were credited against the amounts paid under the SRA. Additionally, the Work Order provides for milestone payments of up to an aggregate of $1,050,000, or, in the Company’s sole discretion, up to an aggregate of 1,000,000 shares of the Company’s common stock, to be paid or issued, as applicable, by the Company upon achievement of milestones associated with completion of early stages of the research program as set forth in the Work Order. As of June 30, 2021, approximately $0.1 million of milestone payments has been paid.</p> 500000 0.10 11000 23000 13000 25000 500000 500000 100000 350000 10000 100000 100000 0 40000 25000 <p id="xdx_805_eus-gaap--SubsequentEventsTextBlock_zYFupbSLzXf8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 33px"><span style="font: 10pt Times New Roman, Times, Serif"><b>13.</b></span></td> <td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_820_zXWXWAQTqPud">Subsequent Events </span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined that there were no such events requiring recognition or disclosure in the financial statements except as described below.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Financing</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 26, 2021, the Company entered into a securities purchase agreement in connection with a private placement (the “Purchase Agreement”) with the purchaser named on the signature page thereto (“Purchaser”), pursuant to which the Company agreed to issue and sell to the Purchaser, in a private placement priced at-the-market under Nasdaq rules, (i) 950,000 shares of the Company’s common stock, par value $0.001 per share (the “Shares”), (ii) warrants to purchase an aggregate of 4,629,630 shares of the Company’s common stock, with an exercise price of $3.30 per share (the “Series A Warrants”) which expire three and one half years from the earlier of (a) the six month anniversary of the initial exercise date and (b) the date that the registration statement registering all of the warrant shares underlying the Series A Warrants is declared effective, and (iii) pre-funded warrants to purchase up to 3,679,630 shares of the Company’s common stock, with an exercise price of $0.001 per share (the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) with no expiration (the “Private Placement”), at a purchase price of $2.70 per one Share and one Series A Warrant and $2.699 per one Series B Warrant and one Series A Warrant. The Company received aggregate gross proceeds from the Private Placement of approximately $12.5 million, before deducting placement agent fees and offering expenses, and excluding the exercise of any Warrants.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> XML 11 R1.htm IDEA: XBRL DOCUMENT v3.21.2
Cover - shares
6 Months Ended
Jun. 30, 2021
Aug. 06, 2021
Affiliate, Collateralized Security [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2021  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2021  
Current Fiscal Year End Date --12-31  
Entity File Number 001-37937  
Entity Registrant Name XENETIC BIOSCIENCES, INC.  
Entity Central Index Key 0001534525  
Entity Tax Identification Number 45-2952962  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 40 Speen Street  
Entity Address, Address Line Two Suite 102  
Entity Address, City or Town Framingham  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 01701  
City Area Code 781  
Local Phone Number 778-7720  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   9,703,845
Common Stock, $0.001 par value per share    
Affiliate, Collateralized Security [Line Items]    
Title of 12(b) Security Common Stock, $0.001 par value per share  
Trading Symbol XBIO  
Security Exchange Name NASDAQ  
Purchase Warrants [Member]    
Affiliate, Collateralized Security [Line Items]    
Title of 12(b) Security Purchase Warrants  
Trading Symbol XBIOW  
Security Exchange Name NASDAQ  
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
Jun. 30, 2021
Dec. 31, 2020
Current assets:    
Cash $ 9,281,554 $ 11,527,552
Prepaid expenses and other 917,826 841,958
Total current assets 10,199,380 12,369,510
Other assets 715,898 809,985
Total assets 10,915,278 13,179,495
Current liabilities:    
Accounts payable 305,088 327,396
Accrued expenses and other current liabilities 653,126 609,532
Total current liabilities 958,214 936,928
Other long-term liabilities 7,957 27,043
Total liabilities 966,171 963,971
Stockholders' equity:    
Common stock, $0.001 par value; 50,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 8,773,683 and 8,772,198 shares issued as of June 30, 2021 and December 31, 2020, respectively; 8,746,692 and 8,745,207 shares outstanding as of June 30, 2021 and December 31, 2020, respectively 8,772 8,771
Additional paid in capital 194,319,716 194,133,511
Accumulated deficit (179,354,709) (176,902,086)
Accumulated other comprehensive income 253,734 253,734
Treasury stock (5,281,180) (5,281,180)
Total stockholders' equity 9,949,107 12,215,524
Total liabilities and stockholders' equity 10,915,278 13,179,495
Series B Preferred Stock [Member]    
Stockholders' equity:    
Preferred Stock, Value, Issued 1,804 1,804
Series A Preferred Stock [Member]    
Stockholders' equity:    
Preferred Stock, Value, Issued $ 970 $ 970
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2021
Dec. 31, 2020
Preferred stock, shares authorized 10,000,000 10,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 8,773,683 8,772,198
Common stock, shares outstanding 8,746,692 8,745,207
Preferred Class B [Member]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock shares issued 1,804,394 1,804,394
Preferred stock, shares outstanding 1,804,394 1,804,394
Preferred Class A [Member]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock shares issued 970,000 970,000
Preferred stock, shares outstanding 970,000 970,000
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Revenue:        
Total revenue $ 287,603 $ 112,927 $ 478,819 $ 169,676
Operating costs and expenses:        
Research and development (524,550) (307,900) (1,154,279) (667,551)
General and administrative (890,704) (787,486) (1,821,282) (1,715,366)
Total operating costs and expenses (1,415,254) (1,095,386) (2,975,561) (2,382,917)
Loss from operations (1,127,651) (982,459) (2,496,742) (2,213,241)
Other income:        
Other income 238 192 1,122 58
Interest income, net 20,735 28,625 42,997 80,112
Total other income 20,973 28,817 44,119 80,170
Net loss $ (1,106,678) $ (953,642) $ (2,452,623) $ (2,133,071)
Basic and diluted net loss per share $ (0.13) $ (0.15) $ (0.28) $ (0.34)
Weighted-average shares of common stock outstanding, basic and diluted 8,746,692 6,288,351 8,746,479 6,260,841
Royalty [Member]        
Revenue:        
Total revenue $ 287,603 $ 112,927 $ 478,819 $ 169,676
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Stock [Member]
Total
Beginning balance, value at Dec. 31, 2019 $ 2,774 $ 6,092 $ 188,240,451 $ (166,008,620) $ 253,734 $ (5,281,180) $ 17,213,251
Beginning balance, shares at Dec. 31, 2019 2,774,394 6,092,432          
Issuance of common stock to vendor $ 1 (1)
Issuance of common stock to vendor, shares   1,188          
Share-based expense 277,332 277,332
Exercise of purchase warrants, shares   229,598          
Exercise of purchase warrants $ 229 (229)
Net loss (2,133,071) (2,133,071)
Ending balance, value at Jun. 30, 2020 $ 2,774 $ 6,322 188,517,553 (168,141,691) 253,734 (5,281,180) 15,357,512
Ending balance, shares at Jun. 30, 2020 2,774,394 6,323,218          
Beginning balance, value at Mar. 31, 2020 $ 2,774 $ 6,311 188,405,830 (167,188,049) 253,734 (5,281,180) 16,199,420
Beginning balance, shares at Mar. 31, 2020 2,774,394 6,311,906          
Issuance of common stock to vendor $ 1 (1)
Issuance of common stock to vendor, shares   1,188          
Share-based expense 111,734 111,734
Exercise of purchase warrants, shares   10,124          
Exercise of purchase warrants $ 10 (10)
Net loss (953,642) (953,642)
Ending balance, value at Jun. 30, 2020 $ 2,774 $ 6,322 188,517,553 (168,141,691) 253,734 (5,281,180) 15,357,512
Ending balance, shares at Jun. 30, 2020 2,774,394 6,323,218          
Beginning balance, value at Dec. 31, 2020 $ 2,774 $ 8,771 194,133,511 (176,902,086) 253,734 (5,281,180) 12,215,524
Beginning balance, shares at Dec. 31, 2020 2,774,394 8,772,198          
Share-based expense 186,206 186,206
Exercise of purchase warrants, shares   1,485          
Exercise of purchase warrants $ 1 (1)
Net loss (2,452,623) (2,452,623)
Ending balance, value at Jun. 30, 2021 $ 2,774 $ 8,772 194,319,716 (179,354,709) 253,734 (5,281,180) 9,949,107
Ending balance, shares at Jun. 30, 2021 2,774,394 8,773,683          
Beginning balance, value at Mar. 31, 2021 $ 2,774 $ 8,772 194,209,794 (178,248,031) 253,734 (5,281,180) 10,945,863
Beginning balance, shares at Mar. 31, 2021 2,774,394 8,773,683          
Share-based expense 109,922 109,922
Net loss (1,106,678) (1,106,678)
Ending balance, value at Jun. 30, 2021 $ 2,774 $ 8,772 $ 194,319,716 $ (179,354,709) $ 253,734 $ (5,281,180) $ 9,949,107
Ending balance, shares at Jun. 30, 2021 2,774,394 8,773,683          
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,452,623) $ (2,133,071)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 0 757
Amortization of right of use asset 17,160 13,765
Gain on settlement with vendor (143,639)
Share-based expense 186,206 277,332
Changes in operating assets and liabilities:    
Prepaid expenses and other assets 1,059 167,586
Accounts payable, accrued expenses and other liabilities 2,200 (484,190)
Net cash used in operating activities (2,245,998) (2,301,460)
Net change in cash (2,245,998) (2,301,460)
Cash at beginning of period 11,527,552 10,367,920
Cash at end of period 9,281,554 8,066,460
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid for interest 0 0
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of common stock from cashless exercise of purchase warrants $ 1 $ 229
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.21.2
The Company
6 Months Ended
Jun. 30, 2021
Accounting Policies [Abstract]  
The Company

 

1. The Company

 

Background

 

Xenetic Biosciences, Inc. (“Xenetic” or the “Company”), incorporated in the state of Nevada and based in Framingham, Massachusetts, is a biopharmaceutical company focused on progressing XCART, a personalized Chimeric Antigen Receptor (“CAR”) T platform technology engineered to target patient- and tumor-specific neoantigens. The Company is initially advancing cell-based therapeutics targeting the unique B-cell receptor on the surface of an individual patient’s malignant tumor cells, for the treatment of B-cell lymphomas. The XCART technology, developed by the Scripps Research Institute (“Scripps Research”) in collaboration with the Shemyakin-Ovchinnikov Institute of Bioorganic Chemistry, is believed to have the potential to significantly enhance the safety and efficacy of cell therapy for B-cell lymphomas by generating patient- and tumor-specific CAR T cells.

 

Additionally, Xenetic is leveraging its proprietary drug delivery platform, PolyXen®, by partnering with biotechnology and pharmaceutical companies. PolyXen is an enabling platform technology which can be applied to protein or peptide therapeutics. It employs the natural polymer polysialic acid to prolong a drug’s circulating half-life and potentially improve other pharmacological properties. Xenetic incorporates its patented and proprietary technologies into drug candidates currently under development with biotechnology and pharmaceutical industry collaborators to create what the Company believes will be the next-generation biologic drugs with improved pharmacological properties over existing therapeutics.

 

As used in this Quarterly Report on Form 10-Q (“Quarterly Report”), unless otherwise indicated, all references herein to “Xenetic,” the “Company,” “we” or “us” refer to Xenetic Biosciences, Inc. and its wholly owned subsidiaries.

 

The Company, directly or indirectly, through its wholly-owned subsidiaries, Hesperix S.A. (“Hesperix”) and Xenetic Biosciences (U.K.) Limited (“Xenetic UK”), and the wholly-owned subsidiaries of Xenetic UK, Lipoxen Technologies Limited (“Lipoxen”), Xenetic Bioscience, Incorporated and SymbioTec, GmbH (“SymbioTec”), own various United States (“U.S.”) federal trademark registrations and applications, and unregistered trademarks and service marks, including but not limited to XCART, OncoHist™, PolyXen, ErepoXen™, and ImuXen™, which are used throughout this Quarterly Report. All other company and product names may be trademarks of the respective companies with which they are associated.

 

Going Concern and Management’s Plan

 

Management evaluates whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company has incurred substantial losses since its inception and expects to continue to incur operating losses in the near-term. These factors raise substantial doubt about its ability to continue as a going concern. The Company believes that it has access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations, related party funding, or other means to continue as a going concern. On December 4, 2020, the Company closed on a $6.0 million registered direct offering of the Company’s common stock, par value $0.001, resulting in $5.4 million of net proceeds to the Company. On July 28, 2021, the Company completed a $12.5 million private placement of the Company’s common stock, par value $0.001, resulting in approximately $11.4 million of net proceeds to the Company. The Company believes that these financings, coupled with the Company’s existing resources, will be adequate for the Company to continue as a going concern. However, the Company anticipates it may need additional capital in the long-term to pursue its business initiatives. The terms, timing and extent of any future financing will depend upon several factors, including the achievement of progress in its clinical development programs, its ability to identify and enter into licensing or other strategic arrangements, and factors related to financial, economic and market conditions, many of which are beyond its control.

  

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.21.2
Impact of COVID-19
6 Months Ended
Jun. 30, 2021
Impact Of Covid-19  
Impact of COVID-19

 

2. Impact of COVID-19

 

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus, or COVID-19. The pandemic has significantly affected economic conditions in the U.S., accelerating during the first half of March 2020 and continuing into 2021, as federal, state and local governments react to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. economy. The Company continues to evaluate the effects of the COVID-19 pandemic on its business and while there has been no significant impact to the Company’s operations to date, the Company at this time is uncertain of the impact this event may have on the Company’s future operations. The extent to which the COVID-19 pandemic affects our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, and such uncertainty is expected to continue for some time.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.21.2
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

 

3. Summary of Significant Accounting Policies

 

Preparation of Interim Financial Statements

 

The accompanying condensed consolidated interim financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results for the interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021 and amended on April 28, 2021.

 

Principles of Consolidation

 

The condensed consolidated financial statements of the Company include the accounts of Hesperix, Xenetic UK and Xenetic UK’s wholly owned subsidiaries: Lipoxen, Xenetic Bioscience, Incorporated, and SymbioTec. All intercompany balances and transactions have been eliminated in consolidation.

 

Basic and Diluted Net Loss per Share

 

The Company computes basic net loss per share by dividing net loss applicable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding during the period. The Company computes diluted net loss per share after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive.

 

For the three and six months ended June 30, 2021 and 2020, basic and diluted net loss per share are the same for each respective period due to the Company’s net loss position. Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would be anti-dilutive.

  

Recent Accounting Standards

 

In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The amendment updates the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the “incurred loss” model with an “expected loss” model. This may result in earlier recognition of allowance for losses. ASU 2016-13 is effective for smaller reporting public entities for fiscal years beginning after December 15, 2022 but early adoption is permitted. The Company is currently evaluating the impact of adoption, but it does not anticipate that it will have a material effect on the Company’s consolidated financial statements.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.21.2
Significant Strategic Collaborations
6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Significant Strategic Collaborations

 

4. Significant Strategic Collaborations

 

The Company has entered into various research, development, license and supply agreements with Takeda Pharmaceuticals Co. Ltd. (“Takeda”), Serum Institute of India (“Serum Institute”), Pharmsynthez and SynBio LLC (“SynBio”), a wholly owned subsidiary of Pharmsynthez. The Company and its collaborative partners continue to engage in research and development activities with no resultant commercial products through June 30, 2021.

 

In October 2017, the Company granted to Takeda the right to grant a non-exclusive sublicense to certain patents related to the Company’s PolyXen technology that were previously exclusively licensed to Takeda in connection with products related to the treatment of blood and bleeding disorders. Royalty payments of approximately $0.3 million and $0.5 million were recorded as revenue by the Company during the three and six months ended June 30, 2021, respectively, and approximately $0.1 million and $0.2 million were recorded as revenue by the Company during the three and six months ended June 30, 2020, respectively. The Company’s policy is to recognize royalty payments as revenue when they are reliably measurable, which is upon receipt of reports from Takeda. The Company receives these reports in the quarter subsequent to the actual sublicensee sales. At the time the revenue was received, there were no remaining performance obligations and all other revenue recognition criteria were met. There are no active projects under the Exclusive Research, Development and License Agreement, dated August 15, 2005, by and between Lipoxen and Baxter Healthcare SA, as amended, (the “Takeda Agreement”), and the parties are discussing a potential termination of the agreement. Any such termination of the Takeda Agreement would have no impact on the Company and its non-exclusive sublicense agreement and the royalties being generated. No amounts were recognized as revenue related to the Serum Institute, Pharmsynthez or SynBio agreements during the three months ended June 30, 2021 and 2020, respectively.

 

On May 15, 2020, the Company and Scripps Research entered into a Research Funding and Option Agreement (the “Scripps Agreement”), pursuant to which the Company has agreed to provide Scripps Research an aggregate of up to $3.0 million to fund research relating to advancing the pre-clinical development of XCART. The research funding is payable by the Company to Scripps Research on a quarterly basis in accordance with a negotiated budget, which provides for an initial payment of approximately $300,000 on the date of the Scripps Agreement and subsequent quarterly payments of approximately $300,000 over a 27-month period. Under the Scripps Agreement, Scripps Research has granted the Company a license within the Field (as defined in the Scripps Agreement) to any Patent Rights or Technology (as defined in the Scripps Agreement) under the terms of that certain license agreement with Scripps Research, dated February 25, 2019, assigned to the Company on March 1, 2019. Additionally, the Company has the option to acquire a worldwide exclusive license to Scripps Research’s rights in the Technology or Patent Rights not already licensed to the Company, as well as a non-exclusive, royalty-free, non-transferrable license to make and use Scripps Research Technology (as defined in the Scripps Agreement) solely for the Company’s internal research purposes during the performance of the research program contemplated by the Scripps Agreement. The Company has paid $1.5 million to Scripps Research under this agreement through June 30, 2021. As of June 30, 2021 and December 31, 2020, approximately $0.2 million has been recognized as an advance payment under this agreement and is included in Prepaid expenses and other current assets.

  

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.21.2
Property and Equipment, net
6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment, net

 

5. Property and Equipment, net

 

Property and equipment, net consists of the following:

 

          
   June 30,
2021
   December 31,
2020
 
Office and computer equipment  $42,289   $42,289 
Furniture and fixtures   14,738    14,738 
Property and equipment – at cost   57,027    57,027 
Less accumulated depreciation   (57,027)   (57,027)
Property and equipment – net  $   $ 

 

Depreciation expense was approximately $200 and $800 for the three and six months ended June 30, 2020. There was no depreciation expense for the three and six months ended June 30, 2021.

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.21.2
Indefinite-Lived Intangible Assets
6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Indefinite-Lived Intangible Assets

  

6. Indefinite-Lived Intangible Assets

 

The Company’s indefinite-lived intangible asset, OncoHist, is in-process research and development (“IPR&D”) relating to the Company’s business combination with SymbioTec in 2012. IPR&D is tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, although it is to be tested at least annually until the project is completed or abandoned. The Company completed an impairment analysis of the IPR&D during 2020 and concluded that the following factors indicated that the IPR&D was impaired: a decision by management to delay indefinitely any further development of the IPR&D and to not support the underlying intellectual property; the failure to sell or license the IPR&D to a third party; and the reduction in market capitalization. The Company recorded an asset impairment charge of $9.2 million during the third quarter of 2020 representing the excess of the IPR&D asset’s carrying value over its estimated fair value. A reconciliation of the change in the carrying value of Indefinite-Lived Intangible Assets is as follows:

 

     
Balance as of January 1, 2020  $9,243,128 
Impairment   (9,243,128)
Balance as of December 31, 2020  $ 
XML 23 R13.htm IDEA: XBRL DOCUMENT v3.21.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements

 

7. Fair Value Measurements

 

Accounting Standards Codification Topic 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The carrying amount of certain of the Company’s financial instruments approximate fair value due to their short maturities. As of June 30, 2021 and December 31, 2020, the carrying amounts of the Company’s financial instruments approximates fair value due to their short maturities. There were no financial instruments classified as Level 3 in the fair value hierarchy during the three and six months ended June 30, 2021 and 2020.

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Stockholders’ Equity
6 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Stockholders’ Equity

 

8. Stockholders’ Equity

 

Warrants

 

In connection with certain of the Company’s collaboration agreements and consulting arrangements, the Company has issued warrants to purchase shares of common stock as payment for services. As of June 30, 2021 and December 31, 2020, collaboration warrants to purchase 0 and 30,307 shares of common stock were outstanding. No collaboration warrants were granted or exercised in connection with collaboration or consulting services during the three and six months ended June 30, 2021. Collaboration warrants to purchase 30,307 shares expired during the three and six months ended June 30, 2021. No collaboration warrants were granted or exercised and none expired in connection with collaboration or consulting services during the three and six months ended June 30, 2020, respectively.

 

In addition, the Company has outstanding warrants to purchase an aggregate of 347,505 and 378,453 shares of common stock in connection with debt and equity financing arrangements as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, these warrants have an average weighted exercise price of $36.74 per share and expiration dates ranging from July 2021 through September 2026. No debt and equity financing warrants were granted during the three and six months ended June 30, 2021 and 2020. During the six months ended June 30, 2021 and 2020, debt and equity financing warrants to purchase approximately 1,485 and 0.2 million shares of common stock, respectively, were exercised on a cashless one-for-one basis. No debt and equity financing warrants were exercised during the three months ended June 30, 2021 and 2020, respectively. In addition, approximately 0 and 29,000 debt and equity warrants expired during the three and six months ended June 30, 2021. No debt and equity warrants expired during the three and six months ended June 30, 2020.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Share-Based Expense
6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Expense

 

9. Share-Based Expense

 

Total share-based expense related to stock options, restricted stock units (“RSUs”) and common stock awards was approximately $0.1 million during the three months ended June 30, 2021 and 2020 and approximately $0.2 million and $0.3 million for the six months ended June 30, 2021 and 2020, respectively.

  

Share-based compensation expense is classified in the condensed consolidated statements of operations as follows:

 

                    
   Three Months Ended June 30,   Six Months Ended June 30, 
   2021   2020   2021   2020 
Research and development expenses  $19,026   $12,936   $29,736   $26,294 
General and administrative expenses   90,896    98,798    156,470    251,038 
   $109,922   $111,734   $186,206   $277,332 

 

Employee Stock Options

 

During the six months ended June 30, 2021, the Company granted 200,000 stock option awards to purchase shares of common stock. The weighted average grant date fair value per option share was $2.34. Key assumptions used in the Black-Scholes option pricing model for options granted during the six months ending June 30, 2021 were the Company’s stock price, a risk free rate of 1.08%, an expected life of 5.88 years and an expected volatility rate of 134.47%. There were no employee stock options or RSUs granted or exercised during the six months ended June 30, 2020. The Company recognized a total of $0.1 million of compensation expense related to employee stock options during the three months ended June 30, 2021 and 2020 and $0.2 million and $0.3 million during the six months ended June 30, 2021 and 2020, respectively.

 

Non-Employee Stock Options

 

The Company did not grant any non-employee stock options during the six months ended June 30, 2021 and 2020. The Company did not recognize any expense related to non-employee stock options during the three and six months ended June 30, 2021. The Company recognized approximately $4,000 and $7,000 of expense during the three and six months ended June 30, 2020, respectively.

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

 

10. Income Taxes

 

During the three and six months ended June 30, 2021 and 2020, there was no provision for income taxes as the Company incurred losses during both periods. Deferred tax assets and liabilities reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company records a valuation allowance against its deferred tax assets as the Company believes it is more likely than not the deferred tax assets will not be realized. The valuation allowance against deferred tax assets was approximately $30.2 million and $29.6 million as of June 30, 2021 and December 31, 2020, respectively.

 

As of June 30, 2021 and December 31, 2020, the Company did not record any unrecognized tax positions.

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.21.2
Commitments
6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments

 

11. Commitments

 

Supplemental cash flow information and non-cash activity related to our operating leases are as follows:

 

    
  

Six Months

Ended

June 30,

 
   2021 
Operating cash flow information:     
Cash paid for amounts included in the measurement of lease liabilities  $17,160 

 

Supplemental balance sheet information related to our operating leases are as follows:

 

       
   Balance Sheet Classification  June 30, 2021 
Right-of-use assets - ST  Prepaid expenses and other  $37,408 
Right-of-use assets - LT  Other assets  $7,957 
Current lease liabilities  Accrued expenses and other current liabilities  $37,408 
Non-current lease liabilities  Other long-term liabilities  $7,957 

 

 

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.21.2
Related Party Transactions
6 Months Ended
Jun. 30, 2021
Related Party Transactions [Abstract]  
Related Party Transactions

 

12. Related Party Transactions

 

The Company has entered into various research, development, license and supply agreements with Serum Institute and Pharmsynthez (as well as SynBio), each a related party whose relationship has not materially changed from that disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021.

 

During the fourth quarter of 2019, the Company entered into a loan agreement with Pharmsynthez (the “Pharmsynthez Loan”), pursuant to which the Company advanced Pharmsynthez an aggregate principal amount of up to $500,000 to be used for the development of a specific product under the Company’s co-development agreement with SynBio. The Pharmsynthez Loan had a term of 15-months and accrued interest at a rate of 10% per annum. The Pharmsynthez Loan is guaranteed by all of the operating subsidiaries of Pharmsynthez, including SynBio and AS Kevelt, and is secured by all of the equity interests of the Company owned by Pharmsynthez and SynBio. The Company recognized approximately $11,000 and $23,000 of interest income related to this loan during the three and six months ended June 30, 2021, respectively. The Company recognized approximately $13,000 and $25,000 of interest income related to this loan during the three and six months ended June 30, 2020, respectively.

 

Effective January 23, 2021, the Company entered into a First Amendment to Loan Agreement and Other Loan Documents with Pharmsynthez, Kevelt and SynBio (the “Pharmsynthez Loan Extension”) to modify the repayment terms and maturity of the Pharmsynthez Loan to January 2022. The terms of the Pharmsynthez Loan Extension called for two (2) equal monthly principal payments of $25,000 in each of January 23, 2021 and February 28, 2021 and the payment of all outstanding accrued interest in six (6) equal monthly installments from January 31, 2021 through June 30, 2021. In addition, the Pharmsynthez Loan Extension requires monthly interest payments and the repayment of the remaining principal amount in six (6) equal monthly installments from August 2021 through January 2022. All other terms of the Pharmsynthez Loan remain in effect. As of June 30, 2021, approximately $0.5 million was included in Prepaid expenses and other on the condensed consolidated balance sheet. As of December 31, 2020, approximately $0.5 million was classified within Prepaid expenses and other and approximately $0.1 million was classified within Other assets on the consolidated balance sheet.

  

During the third quarter of 2019, the Company entered into a Sponsored Research Agreement with Pharmsynthez (the “SRA”) related to experiments identified by the Company to support its efforts for initial tech transfer of the XCART methods to a future academic collaborator. Under the agreement, the Company made a $350,000 payment to Pharmsynthez during the third quarter of 2019, which was refundable on pro rata basis if the project is terminated prematurely as a result of Pharmsynthez failing to perform the work. On June 12, 2020, the Company and Pharmsynthez entered into a Master Services Agreement (“MSA”) to advance the development of the Company’s XCART technology for B-cell malignancies. The MSA terminated and superseded the SRA. The Company expensed approximately $10,000 and $0.1 million related to work performed under these agreements during the three and six months ended June 30, 2021. The Company expensed approximately $0.1 million related to work performed under these agreements during the six months ended June 30, 2020. No expense was recorded during the three months ended June 30, 2020. As of June 30, 2021, approximately $40,000 was accrued and included in Accrued expenses and other current liabilities on the condensed consolidated balance sheet. As of December 31, 2020, approximately $25,000 was recorded as an advanced payment and included in Prepaid expenses and other on the consolidated balance sheet.

 

Under the MSA, Pharmsynthez agreed to provide services pursuant to work orders agreed upon by the parties from time to time, which services include, but are not limited to, acting as the Company’s primary contract research organization to assist in managing collaborations with multiple academic institutions in Russia and Belarus. The Company is required to pay reasonable fees, expenses and pass-through costs incurred by Pharmsynthez in providing the services in accordance with a budget and payment terms set forth in each work order. Additionally, in the event that a work order provides for milestone payments, the Company is required to make such payments to Pharmsynthez, or third party service providers designated by Pharmsynthez, in accordance with the terms set forth in the work order, which milestone payments may be made, at the sole discretion of the Company, in cash or shares of the Company’s common stock.

 

The Company and Pharmsynthez executed a work order on June 12, 2020 (the “Work Order”) under the MSA pursuant to which Pharmsynthez agreed to conduct a Stage 1 study of the Company’s XCART technology under the research program as set forth in the Work Order. The activities to be performed under the Work Order are expected to take approximately 20 months unless earlier terminated in accordance with the MSA. Under the terms of the Work Order, the Company paid Pharmsynthez $51,000 as an initial payment for trial startup costs, which amount was credited against the amounts paid under the SRA. The Work Order provides for additional pass-through costs to be invoiced by Pharmsynthez upon execution of contracts with third party sites, which will be further credited against the SRA. The total cost under the Work Order is currently estimated to be approximately $1.8 million. Through June 30, 2021, all costs incurred under the MSA were credited against the amounts paid under the SRA. Additionally, the Work Order provides for milestone payments of up to an aggregate of $1,050,000, or, in the Company’s sole discretion, up to an aggregate of 1,000,000 shares of the Company’s common stock, to be paid or issued, as applicable, by the Company upon achievement of milestones associated with completion of early stages of the research program as set forth in the Work Order. As of June 30, 2021, approximately $0.1 million of milestone payments has been paid.

XML 29 R19.htm IDEA: XBRL DOCUMENT v3.21.2
Subsequent Events
6 Months Ended
Jun. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

 

13. Subsequent Events

 

The Company performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined that there were no such events requiring recognition or disclosure in the financial statements except as described below.

 

Financing

 

On July 26, 2021, the Company entered into a securities purchase agreement in connection with a private placement (the “Purchase Agreement”) with the purchaser named on the signature page thereto (“Purchaser”), pursuant to which the Company agreed to issue and sell to the Purchaser, in a private placement priced at-the-market under Nasdaq rules, (i) 950,000 shares of the Company’s common stock, par value $0.001 per share (the “Shares”), (ii) warrants to purchase an aggregate of 4,629,630 shares of the Company’s common stock, with an exercise price of $3.30 per share (the “Series A Warrants”) which expire three and one half years from the earlier of (a) the six month anniversary of the initial exercise date and (b) the date that the registration statement registering all of the warrant shares underlying the Series A Warrants is declared effective, and (iii) pre-funded warrants to purchase up to 3,679,630 shares of the Company’s common stock, with an exercise price of $0.001 per share (the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) with no expiration (the “Private Placement”), at a purchase price of $2.70 per one Share and one Series A Warrant and $2.699 per one Series B Warrant and one Series A Warrant. The Company received aggregate gross proceeds from the Private Placement of approximately $12.5 million, before deducting placement agent fees and offering expenses, and excluding the exercise of any Warrants.

 

 

XML 30 R20.htm IDEA: XBRL DOCUMENT v3.21.2
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2021
Accounting Policies [Abstract]  
Preparation of Interim Financial Statements

Preparation of Interim Financial Statements

 

The accompanying condensed consolidated interim financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results for the interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021 and amended on April 28, 2021.

 

Principles of Consolidation

Principles of Consolidation

 

The condensed consolidated financial statements of the Company include the accounts of Hesperix, Xenetic UK and Xenetic UK’s wholly owned subsidiaries: Lipoxen, Xenetic Bioscience, Incorporated, and SymbioTec. All intercompany balances and transactions have been eliminated in consolidation.

 

Basic and Diluted Net Loss per Share

Basic and Diluted Net Loss per Share

 

The Company computes basic net loss per share by dividing net loss applicable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding during the period. The Company computes diluted net loss per share after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive.

 

For the three and six months ended June 30, 2021 and 2020, basic and diluted net loss per share are the same for each respective period due to the Company’s net loss position. Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would be anti-dilutive.

  

Recent Accounting Standards

Recent Accounting Standards

 

In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance modifies the measurement and recognition of credit losses for most financial assets and certain other instruments. The amendment updates the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the “incurred loss” model with an “expected loss” model. This may result in earlier recognition of allowance for losses. ASU 2016-13 is effective for smaller reporting public entities for fiscal years beginning after December 15, 2022 but early adoption is permitted. The Company is currently evaluating the impact of adoption, but it does not anticipate that it will have a material effect on the Company’s consolidated financial statements.

XML 31 R21.htm IDEA: XBRL DOCUMENT v3.21.2
Property and Equipment, net (Tables)
6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
          
   June 30,
2021
   December 31,
2020
 
Office and computer equipment  $42,289   $42,289 
Furniture and fixtures   14,738    14,738 
Property and equipment – at cost   57,027    57,027 
Less accumulated depreciation   (57,027)   (57,027)
Property and equipment – net  $   $ 
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.21.2
Indefinite-Lived Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Asset
     
Balance as of January 1, 2020  $9,243,128 
Impairment   (9,243,128)
Balance as of December 31, 2020  $ 
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.21.2
Share-Based Expense (Tables)
6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation Expense
                    
   Three Months Ended June 30,   Six Months Ended June 30, 
   2021   2020   2021   2020 
Research and development expenses  $19,026   $12,936   $29,736   $26,294 
General and administrative expenses   90,896    98,798    156,470    251,038 
   $109,922   $111,734   $186,206   $277,332 
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.21.2
Commitments (Tables)
6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Cash flow information regarding leases
    
  

Six Months

Ended

June 30,

 
   2021 
Operating cash flow information:     
Cash paid for amounts included in the measurement of lease liabilities  $17,160 
Supplemental information related to operating leases
       
   Balance Sheet Classification  June 30, 2021 
Right-of-use assets - ST  Prepaid expenses and other  $37,408 
Right-of-use assets - LT  Other assets  $7,957 
Current lease liabilities  Accrued expenses and other current liabilities  $37,408 
Non-current lease liabilities  Other long-term liabilities  $7,957 
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.21.2
The Company (Details Narrative) - USD ($)
6 Months Ended 11 Months Ended
Jun. 30, 2021
Dec. 04, 2020
Direct Offering [Member]    
Offsetting Liabilities [Line Items]    
Proceeds from stock offering   $ 5,400,000
Private Placement [Member]    
Offsetting Liabilities [Line Items]    
Proceed from private placement $ 11,400,000  
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.21.2
Significant Strategic Collaborations (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Revenue $ 287,603 $ 112,927 $ 478,819 $ 169,676  
Research and development expenses 524,550 307,900 1,154,279 667,551  
Prepaid expenses and other current asset 917,826   917,826   $ 841,958
Takeda [Member] | Royalty Revenue [Member]          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Revenue 300,000 100,000 500,000 $ 200,000  
Serum Institute [Member] | Royalty Revenue [Member]          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Revenue 0 0      
Syn Bio [Member] | Royalty Revenue [Member]          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Revenue 0 0      
Pharmsynthez [Member] | Royalty Revenue [Member]          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Revenue 0 $ 0      
Scripps Agreement [Member]          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Research and development expenses     1,500,000    
Prepaid expenses and other current asset $ 200,000   $ 200,000   $ 200,000
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.21.2
Property and Equipment, net (Details) - USD ($)
Jun. 30, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property and equipment - at cost $ 57,027 $ 57,027
Less accumulated depreciation (57,027) (57,027)
Property and equipment, net 0 0
Office and Computer Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment - at cost 42,289 42,289
Furniture and Fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment - at cost $ 14,738 $ 14,738
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.21.2
Property and Equipment, net (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Property, Plant and Equipment [Abstract]        
Depreciation expense $ 0 $ 200 $ 0 $ 800
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.21.2
Indefinite-Lived Intangible Assets (Details)
12 Months Ended
Dec. 31, 2020
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, beginning balance $ 9,243,128
Goodwill impairment (9,243,128)
Goodwill, ending balance $ 0
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.21.2
Indefinite-Lived Intangible Assets (Details Narrative)
$ in Millions
3 Months Ended
Sep. 30, 2020
USD ($)
OncoHist [Member]  
Indefinite-lived Intangible Assets [Line Items]  
Impairment charge $ 9.2
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.21.2
Fair Value Measurements (Details Narrative) - USD ($)
Jun. 30, 2021
Jun. 30, 2020
Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Financial instruments fair value $ 0 $ 0
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.21.2
Stockholders’ Equity (Details Narrative) - $ / shares
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Colllaboration Warrants [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Warrants outstanding 0   0   30,307
Warrants granted 0 0 0 0  
Warrants exercised 0 0 0 0  
Warrants expired 30,307 0 30,307 0  
Debt And Equity Financing Warrants [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Warrants outstanding 347,505   347,505   378,453
Warrants granted 0 0 0 0  
Warrants exercised 0 0 1,485 200,000  
Warrants expired 0 0 29,000 0  
Warrants weighted average exercise price $ 36.74   $ 36.74   $ 36.74
Warrant expiration dates     July 2021 through September 2026    
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.21.2
Share-Based Expense (Details - Share based expense) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share-based compensation $ 109,922 $ 111,734 $ 186,206 $ 277,332
Research and Development Expense [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share-based compensation 19,026 12,936 29,736 26,294
General and Administrative Expense [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share-based compensation $ 90,896 $ 98,798 $ 156,470 $ 251,038
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.21.2
Share-Based Expense (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense $ 109,922 $ 111,734 $ 186,206 $ 277,332
Restricted Stock Units (RSUs) [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense 100,000 100,000 200,000 300,000
Share-based Payment Arrangement, Option [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense 100,000 100,000 $ 200,000 $ 300,000
Options granted     200,000 0
Weighted average grant date fair value     $ 2.34  
Risk free rate     1.08%  
Expected term     5 years 10 months 17 days  
Volatility rate     134.47%  
Non Employee Stock Options [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense $ 0 $ 4,000 $ 0 $ 7,000
Options granted     0 0
Options exercised     0  
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Income Tax Disclosure [Abstract]          
Provision for income taxes $ 0 $ 0 $ 0 $ 0  
Deferred tax valuation allowance 30,200,000   30,200,000   $ 29,600,000
Unrecognized tax positions $ 0   $ 0   $ 0
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.21.2
Commitments (Details - Cash flow Information)
6 Months Ended
Jun. 30, 2021
USD ($)
Operating cash flow information:  
Cash paid for amounts included in the measurement of lease liabilities $ 17,160
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.21.2
Commitments (Details - lease information)
Jun. 30, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Right-of-use assets - ST $ 37,408
Right-of-use assets - LT 7,957
Current lease liabilities 37,408
Non-current lease liabilities $ 7,957
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.21.2
Related Party Transactions (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2019
Dec. 31, 2020
Related Party Transaction [Line Items]            
Prepaid expenses and other current asset $ 917,826   $ 917,826     $ 841,958
Research and development expense 524,550 $ 307,900 1,154,279 $ 667,551    
Research expense accrued $ 653,126   $ 653,126     609,532
Pharmsynthez [Member] | Co Development Agreement [Member]            
Related Party Transaction [Line Items]            
Payment for note receivable         $ 500,000  
Note receivable interest rate 10.00%   10.00%      
Interest income $ 11,000 13,000 $ 23,000 25,000    
Pharmsynthez [Member] | Sponsored Research Agreement [Member]            
Related Party Transaction [Line Items]            
Prepaid expenses and other current asset           100,000
Payment for research agreement         $ 350,000  
Research and development expense 10,000 $ 0 100,000 $ 100,000    
Advanced payment           25,000
Pharmsynthez [Member] | Sponsored Research Agreement [Member] | Prepaid Expenses And Other [Member]            
Related Party Transaction [Line Items]            
Prepaid expenses and other current asset 500,000   500,000     $ 500,000
Research expense accrued $ 40,000   $ 40,000      
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