Iovance Biotherapeutics (IOVA) 10-Q 14 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	15-May-14
Document And Entity Information	'	'
Entity Registrant Name	'Lion Biotechnologies, Inc.	'
Entity Central Index Key	'0001425205	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	22,437,300
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current Assets	'	'
Cash and cash equivalents	$17,943,877	$19,672,177
Deposits	10,000	15,000
Prepaid expenses	114,091	158,716
Total current assets	18,067,968	19,845,893
Property and equipment, net of accumulated depreciation of $32,567 and $16,002	14,628	27,756
Total assets	18,082,596	19,873,649
Current Liabilities	'	'
Accounts payable	286,325	412,976
Accrued expenses	823,161	1,856,956
Total Current Liabilities	1,109,486	2,269,932
Accrued compensation payable in shares of stock	167,057	'
Commitments and contingencies	'	'
Stockholders' Deficiency	'	'
Preferred stock, $0.001 par value; 50,000,000 shares authorized, 13,300 shares and 17,000 shares issued and outstanding, respectively	13	17
Common stock, $0.000041666 par value; 150,000,000 shares authorized, 22,092,958 and 20,023,958 shares issued and outstanding, respectively	921	835
Common shares to be issued, 303,125 shares	245,153	245,153
Additional paid-in capital	83,346,665	81,884,897
Accumulated deficit	-66,786,699	-64,527,185
Total Stockholders' Deficiency	16,806,053	17,603,717
Total Liabilities and Stockholders' Deficiency	$18,082,596	$19,873,649

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets	'	'
Property and equipment, accumulated depreciation	$32,567	$16,002
Stockholder's equity	'	'
Preferred Stock Par Value	$0.00	$0.00
Preferred Stock Authorized	50,000,000	50,000,000
Preferred Stock Issued	13,300	17,000
Preferred Stock Outstanding	13,300	17,000
Common Stock Par Value	$0.00	$0.00
Common Stock Shares Authorized	150,000,000	150,000,000
Common Stock Shares Issued	22,092,958	20,023,958
Common Stock Shares Outstanding	22,092,958	20,023,958

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		78 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Income Statement [Abstract]	'	'	'
Revenues	'	'	'
Costs and expenses	'	'	'
Operating expenses (including $1,070,707, $87,386 and $11,209,659 of non-cash share-based compensation costs)	1,956,852	434,913	33,110,039
Cost of Lion transaction - related party	'	'	16,656,250
Research and development	302,662	270,000	5,215,074
Impairment of intangible asset	'	'	160,036
Total costs and expenses	2,259,514	704,913	55,141,399
Loss from operations	-2,259,514	-704,913	-55,141,399
Other income (expense)	'	'	'
Interest expense	'	-341,616	-2,517,945
Change in fair value of derivative liabilities	'	'	10,001,955
Amortization of discount on convertible notes	'	'	-5,497,888
Cost to induce exchange transaction	'	'	-2,295,868
Financing costs	'	'	-2,873,927
Total other income (expense)	'	-341,616	-3,183,673
Net Loss	-2,259,514	-1,046,529	-58,325,072
Deemed dividend related to beneficial conversion feature of convertible preferred stock	'	'	-8,461,627
Net Loss Attributable to Common Stockholders	($2,259,514)	($1,046,529)	($66,786,699)
Net Loss Per Share, Basic and Diluted	($0.11)	($1.28)	'
Weighted-Average Common Shares Outstanding, Basic and Diluted	20,798,229	818,806	'

Condensed_Statements_of_Operat1

Condensed Statements of Operations (Parenthetical) (USD $)	3 Months Ended		78 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Costs and expenses	'	'	'
Share-Based Compensation	$1,070,707	$87,386	$11,209,659

Statements_of_Stockholders_Equ

Statements of Stockholders' Equity (Deficiency) (USD $)	Preferred Stock	Common Stock	Common Stock To Be Issued	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2013	$17	$835	$245,153	$81,884,897	($64,527,185)	$17,603,717
Beginning Balance, Shares at Dec. 31, 2013	17,000	20,023,958	'	'	'	'
Common stock issued upon exercise of warrants, Shares	'	217,000	'	'	'	'
Common stock issued upon exercise of warrants, Amount	'	9	'	542,491	'	542,491
Common stock issued upon conversion of preferred shares, Shares	-3,700	1,850,000	'	'	'	'
Common stock issued upon conversion of preferred shares, Amount	-4	77	'	-73	'	'
Common stock issued for services, Shares	'	2,000	'	'	'	'
Fair value of vested stock options and warrants, Amount	'	'	'	901,650	'	901,650
Net loss	'	'	'	'	-2,259,514	-2,259,514
Ending Balance, Amount at Mar. 31, 2014	$13	$921	$245,153	$83,346,665	$16,806,053	$16,806,053
Ending Balance, Shares at Mar. 31, 2014	13,300	22,092,958	'	'	'	'

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended	78 Months Ended
	Mar. 31, 2014	Mar. 31, 2014
Cash Flows From Operating Activities	'	'
Net loss	($2,259,514)	($58,325,072)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	16,565	93,938
Impairment of intangible asset	'	160,036
Fair value of vested stock options and warrants	901,650	6,085,065
Fair value of common stock and warrants accounted for as financing costs	'	2,986,819
Fair value of vested warrants granted for services	'	2,563,647
Amortization of discount on convertible notes	'	5,000,000
Private placement costs	'	385,000
Change in fair value of derivative liabilities	'	-10,001,955
Common stock issued to officer for services	'	8,010,000
Common stock issued for services	17,700	1,590,152
Common stock issued to induce conversion of warrants	'	122,734
Common stock issued to induce exchange transaction	'	2,173,135
Common stock issued for Lion transaction	'	16,656,250
Common stock issued to directors	'	2,002,982
Fair value of common stock transferred to officer and director	'	1,742,037
Write off of advances to related party	'	50,000
Changes in assets and liabilities:	'	'
Deposits, prepaid expenses and other assets	49,625	-124,091
Accounts payable, accrued expenses and other current liabilities	-1,160,446	1,134,486
Accrued interest and penalty	'	2,474,891
Accrued compensation payable in shares of common stock	167,057	167,057
Net Cash Used In Operating Activities	-2,267,363	-15,052,889
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchases of property and equipment	-3,437	-51,194
Advances to related party	'	-50,000
Net Cash Used In Investing Activities	-3,437	-101,194
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from the issuance of convertible notes, net	'	4,926,500
Proceeds from the issuance of secured promissory notes	'	1,481,250
Proceeds from issuance of common stock upon conversion of warrants	542,500	542,500
Proceeds from the issuance of common stock, net	'	10,220,813
Proceeds from the issuance of preferred stock, net	'	15,908,760
Due to director	'	18,137
Net Cash Provided By Financing Activities	542,500	33,097,960
Net Increase (Decrease) In Cash And Cash Equivalents	-1,728,300	17,943,877
Cash and Cash Equivalents, Beginning of Period	19,672,177	'
Cash and Cash Equivalents, End of Period	17,943,877	17,943,877
Supplemental Disclosures of Cash Flow Information:	'	'
Derivative liability recorded upon issuance of convertible notes and warrants	'	5,535,310
Derivative liability recorded as offering cost	'	1,902,998
Common stock issued for intellectual property	'	217,408
Forgiveness of debt by director, treated as contribution of capital	'	18,137
Common stock issued upon conversion of convertible notes	'	6,792,750
Fair value of common stock issued with notes payable recorded as a note discount	'	497,888
Settlement of accounts payable through issuance of common stock	'	25,000
Common stock issued upon conversion of accrued interest and penalty	'	$2,474,891

1_GENERAL_ORGANIZATION_AND_BUS

1. GENERAL ORGANIZATION AND BUSINESS	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
1. GENERAL ORGANIZATION AND BUSINESS	'
	Lion Biotechnologies, Inc. (the “Company,” “we,” “us” or “our”) was originally incorporated under the laws of the state of Nevada on September 17, 2007.  Until March 2010, we were an inactive company known as Freight Management Corp. On March 15, 2010, we changed our name to Genesis Biopharma, Inc., and in 2011 we commenced our current business.  On September 26, 2013, we amended and restated our Articles of Incorporation to, among other things, change our name to Lion Biotechnologies, Inc., effect a 1-for-100 reverse stock split (pro-rata reduction of outstanding shares) of our common stock, increase (after the reverse stock split) the number of our authorized number of shares of common stock to 150,000,000 shares, and authorize the issuance of 50,000,000 shares of “blank check” preferred stock, $0.001 par value per share.
	All common stock share and per share information contained in these financial statements has been adjusted to reflect the foregoing stock split as if it occurred at the earliest period presented.
	Lion Biotechnologies, Inc. is an emerging biotechnology company focused on developing and commercializing adoptive cell therapy (ACT) using autologous tumor infiltrating lymphocytes (TILs) for the treatment of metastatic melanoma and other solid cancers.  ACT utilizes T-cells harvested from a patient to treat cancer in that patient.  TILs, a kind of anti-tumor T-cells that are naturally present in a patient’s tumors, are collected from individual patient tumor samples. The TILs are then activated and expanded ex vivo and then infused back into the patient to fight their tumor cells.
	Basis of Presentation of Unaudited Condensed Financial Information
	The unaudited condensed financial statements of the Company for the three months ended March 31, 2014 and 2013 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2013 was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2014. These financial statements should be read in conjunction with that report.
	Development Stage
	We are currently in the development stage.  As a development stage company that is currently engaged in the development of therapeutics to fight cancer, we do not have any commercial products and have not yet generated any revenues from our biopharmaceutical business. We currently do not anticipate that we will generate any revenues during 2014 from the sale or licensing of any products. In addition, we have not generated any revenues from our prior business plans.
	Liquidity
	We have not had any revenues and are still in the development stage.  As shown in the accompanying condensed financial statements, we have incurred a net loss of $2,259,514 for the three months ended March 31, 2014 and used $2,267,363 of cash in our operating activities during the three months ended March 31, 2014.  On November 5, 2013, in a private placement (the “Private Placement”), we issued and sold 3,145,300 shares of common stock, 17,000 shares of Series A Convertible Preferred Stock, and warrants to purchase 11,645,300 shares of common stock for an aggregate purchase price of $23,290,600.  The net proceeds of the Private Placement were approximately $21,985,000.  As a result of the foregoing financing, as of March 31, 2014, we had $17,943,877 of cash or cash equivalents on hand, stockholders’ equity of $16,806,053 and had working capital of $16,958,482.
	During 2014, we expect to further ramp up our operations, which will increase the amount of cash we will use in our operations.  Our budget for 2014 includes increased spending on research and development activities, higher payroll expenses as we increase our professional staff, as well as ongoing payments under the Cooperative Research and Development Agreement (CRADA) we have entered into with the National Cancer Institute (NCI).  Our budget anticipates that we will spend approximately $8 million to $10 million in 2014 on budgeted expenditures, although that amount may change materially.  Based on the funds we had available on March 31, 2014, we believe that we have sufficient capital to fund our anticipated operating expenses for at least twelve months.
	Despite the amount of funds that we raised in the Private Placement, the estimated cost of completing the development of our TIL-based therapy, and of obtaining all required regulatory approvals to market those product candidates, is substantially greater than the amount of funds we had available on March 31, 2014.  Therefore, while we believe that our existing cash balances will be sufficient to fund our currently planned level of operations for at least twelve months, we will have to obtain additional funds in the future to complete our development plans.  We intend to seek this additional funding through various financing sources, including possible sales of our securities, and in the longer term through strategic alliances with other pharmaceutical or biopharmaceutical companies.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	'
	Loss per Share
	Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. For the three months ended March 31, 2014 and 2013, the calculations of basic and diluted loss per share are the same because inclusion of potential dilutive securities in the computation would have an anti-dilutive effect due to the net losses.
	The potentially dilutive securities at March 31, 2014 consist of options to acquire 638,750 shares of the Company’s common stock, warrants to acquire 12,156,156 shares of common stock and preferred stock that can convert into 6,650,000 shares of common stock.
	Fair Value Measurements
	The Company uses various inputs in determining the fair value of certain assets and liabilities and measures these on a recurring basis. Financial assets and liabilities recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by the Financial Accounting Standards Board (the “FASB”) defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets and liabilities:
	Level 1—Quoted prices in active markets for identical assets or liabilities.
	Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
	Level 3—Unobservable inputs based on the Company's assumptions.
	We are required to use observable market data if such data is available, without undue cost and effort. At March 31, 2014 and December 31, 2013, the fair value of cash and cash equivalents and accounts payable approximate their carrying values.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
	Stock-Based Compensation
	The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board where the value of the stock compensation is determined based upon the measurement date as at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date.
	The fair value of the Company's common stock option grants are estimated using a Black-Scholes option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods.
	Recent Accounting Pronouncements
	In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)."  ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations.  Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations.  This new accounting guidance is effective for annual periods beginning after December 15, 2014.  The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition.
	On February 26, 2014, the FASB affirmed changes in a November 2013 Exposure Draft, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, and directed the staff to draft a final Accounting Standards Update for vote by the FASB.  This is intended to reduce the cost and complexity in financial reporting by eliminating inception-to-date information from the financial statements of development stage entities.
	Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

3_ACCRUED_COMPENSATION_PAYABLE

3. ACCRUED COMPENSATION PAYABLE IN SHARES OF STOCK	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
3. ACCRUED COMPENSATION PAYABLE IN SHARES OF STOCK	'
	During the three month period ended March 31, 2014, the Company granted 200,000 shares of its restricted common stock to 3 of its employees in accordance with the terms of their employment agreements.  The 200,000 shares are vesting over a period of 3 years.  As these shares were granted to employees, the Company calculated the aggregate fair value of these 200,000 shares based on the trading prices of the Company’s stock at their grant dates and determined it to be approximately $1,600,000.  The allocable portion of the fair value of the stock that vested during the current period ended March 31, 2014 amounted to $133,971 and was recognized as expense during the current period then ended.
	During the three month period ended March 31, 2014, the Company also granted 200,000 shares of its restricted common stock to a consultant for services to be rendered pursuant to a consulting agreement.  The 200,000 shares granted to the consultant will vest in three installments as follows:  (i) 20,000 shares shall vest on September 30, 2014; (ii) 30,000 shares shall vest on September 30, 2015, and (iii) 50,000 shares shall vest on September 30, 2016.  As these shares were granted to non-employees, the Company measures the fair value of common stock granted based on the trading price of the Company's stock at each financial reporting date.  As the shares vest, they are revalued on each vesting date and an adjustment is recorded for the difference between the fair value already recorded and the current fair value on the date of vesting.  The Company calculated the aggregate fair value of the 20,000 shares that will vest on September 30, 2014 based on the trading price of the Company’s stock at current reporting date at March 31, 2014 and determined it to be approximately $378,000. The allocable portion of the fair value of the stock that vested during the current period ended March 31, 2014 amounted to $35,086 and was recognized as consulting expense during the current period then ended.
	As these shares of stock granted to employees and consultants of the Company have not been issued as of March 31, 2014, and are not required to be issued until their vesting date, the Company recorded the aggregate amount of $167,057 as a liability on the Company's balance sheet as of the period then ended under the caption "Accrued compensation payable in shares of stock”.

4_STOCKHOLDERS_EQUITY

4. STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
4. STOCKHOLDERS' EQUITY	'
	Issuance of common stock for services
	In January 2014, the Company issued 2,000 shares of common stock with a fair value of $17,700 for services.  The shares of common stock issued were valued at the market price on the date of issuance.
	Issuance of common stock upon conversion of preferred shares
	In January 2014, the Company issued 1,850,000 shares of common stock upon the conversion of 3,700 shares of preferred stock.

5_STOCK_OPTIONS_AND_WARRANTS

5. STOCK OPTIONS AND WARRANTS

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

'

5. STOCK OPTIONS AND WARRANTS

'

Stock Options

As of October 14, 2011, the Company’s Board of Directors, based upon the approval and recommendation of the Compensation Committee, approved by unanimous written consent the Company’s 2011 Equity Incentive Plan (the “2011 Plan”) and form of option agreements for grants under the 2011 Plan.  Employees, directors, consultants and advisors of the Company are eligible to participate in the 2011 Plan.  The 2011 Plan will be administered by the Board of Directors or the Company’s Compensation Committee and has 1,700,000 shares of common stock reserved for issuance in the form of incentive stock options (available for issuance to employees, and only upon shareholder approval of the 2011 Plan); non-qualified options; common stock; and grant appreciation rights. No person eligible to participate in the 2011 Plan shall be granted options or other awards during a twelve month period that exceeds 300,000 shares. No options or stock appreciation rights may be granted after ten years of the adoption of the 2011 Plan by the Board of Directors, nor may any option have a term of more than ten years from the date of grant. The exercise price of non qualified options and the base value of a stock appreciation right shall not be less than the fair market value of the common stock on the date of grant. The exercise price of an incentive stock option shall not be less than the fair market value of the stock covered by the option at the time of grant and in instances where a grantee possesses more than 10% percent of the combined voting power of all classes of stock of the Company, the exercise price shall not be less than 110% percent of the fair market value of the common stock at the time of grant.  The Company’s stockholders did not approve the 2011 Plan within the required one-year period.  Accordingly, the Company cannot grant incentive stock options under the 2011 Plan.

A summary of the status of stock options at March 31, 2014, and the changes during the three months then ended, is presented in the following table:

Weighted

Weighted

Average

Shares

Average

Remaining

Aggregate

Under

Exercise

Contractual

Intrinsic

Option

Price

Life

Value

Outstanding at December 31, 2013

278,750

$

23.1

9.1 years

$

1,176,063

Granted

360,000

6.68

4.9 years

Exercised

-

Expired/Forfeited

-

Outstanding at March 31, 2014

638,750

$

13.87

6.6 years

$

1,934,373

Exercisable at March 31, 2014

168,333

$

27.16

6.8 years

$

509,775

On January 6, 2014, the Company granted an option to purchase 100,000 shares of common stock to James G. Bender, Vice President-Manufacturing, in accordance with the terms of Dr. Bender’s employment agreement.  The stock options have an exercise price of $9.60 and will vest in three installments as follows: Options for the purchase of 33,333 shares vest on January 6, 2015; and the remaining shares vest quarterly over the next two years after January 6, 2015.

On February 2014, the Company entered into consulting agreements with three consultants that provided for the grant of options to purchase an aggregate of 60,000 shares of its common stock with exercise prices ranging from $4.94 to $5.52 per share. These options vested immediately. Also, on February 2014, the Company entered into another consulting agreement with a consultant that provided for the grant of options to purchase 200,000 shares of its common stock at an exercise price of $5.60 per share. The options were to vest as follows: a) 66,000 shares vested on the one year anniversary and b) 184,000 shares vest in equal quarterly installments over the remaining two-year of the agreement.

The aggregate fair values of the options granted in the three months ended March 31, 2014 was $1,908,098. No options were granted in the three months ended March 31, 2013. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. For purposes of determining the expected life of the option, an average of the estimated holding period is used. The risk-free rate for periods within the contractual life of the options is based on the U. S. Treasury yield in effect at the time of the grant.

Expected volatility

236%

Expected dividends

0

Expected average term (in years)

6

Risk free rate - average

1.75%

Forfeiture rate

0

During the three months ended March 31, 2014 and 2013, the Company recorded compensation costs of $901,650 and $87,386, respectively, relating to the vesting of the stock options discussed above.  As of March 31, 2014, the aggregate value of unvested options was $3,042,099, which will continue to be amortized as compensation cost as the options vest over terms ranging from 9 months to 5 years, as applicable.

Warrants

A summary of the status of stock warrants at March 31, 2014, and the changes during the three months then ended, is presented in the following table:

Weighted

Weighted

Average

Shares

Average

Remaining

Aggregate

Under

Exercise

Contractual

Intrinsic

Warrants

Price

Life

Value

Outstanding at December 31, 2013

12,373,156

$

2.51

4.11 years

$

-

Issued

-

Exercised

-217,000

2.5

Expired

-

Outstanding and exercisable at March 31, 2014

12,156,156

$

2.51

4.60 years

$

30,513,890

During the three month period ending March 31, 2014, warrants to acquire shares of common stock of $2.50 per share were exercised resulting in net proceeds to the Company of $542,500.

6_LICENSE_AND_COMMITMENTS

6. LICENSE AND COMMITMENTS	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
6. LICENSE AND COMMITMENTS	'
	National Institutes of Health and the National Cancer Institute
	Effective August 5, 2011, the Company signed a Cooperative Research and Development Agreement (CRADA) with the National Institutes of Health and the National Cancer Institute (NCI). Under the terms of the five-year cooperative research and development agreement, the Company will work with Steven A. Rosenberg, M.D., Ph.D., chief of NCI’s Surgery Branch, to develop adoptive cell immunotherapies that are designed to destroy metastatic melanoma cells using a patient’s tumor infiltrating lymphocytes.
	The Company will provide funds in the amount of $1,000,000 per year of the CRADA for Dr. Rosenberg to use to acquire technical, statistical, and administrative support for the research activities, as well as to pay for supplies and travel expenses.  The Company will provide funds in the amount of $250,000 on a quarterly basis.  Although the CRADA has a five year term, either party to the CRADA has the right to terminate the CRADA upon 60 days’ notice to the other party.
	During the three months ended March 31, 2014 and 2013, the Company recognized $250,000 and $250,000, respectively, of CRADA expenses, which were recorded as part of research and development expenses in the condensed statement of operations.
	National Institutes of Health
	Effective October 5, 2011, the Company entered into a Patent License Agreement (the “License Agreement”) with the National Institutes of Health, an agency of the United States Public Health Service within the Department of Health and Human Services (“NIH”).  Pursuant to the License Agreement, NIH granted to the Company a non-exclusive worldwide right and license to develop and manufacture certain proprietary autologous tumor infiltrating lymphocyte adoptive cell therapy products for the treatment of metastatic melanoma, ovarian cancer, breast cancer, and colorectal cancer.  The license agreement required us to pay the NIH approximately $723,000 of upfront licensing fees and expense reimbursements in 2011, which amounts were included in Research and Development expenses in fiscal 2011.  In addition, the Company will have to pay royalties of six percent (6%) of net sales (subject to certain annual minimum royalty payments), a percentage of revenues from sublicensing arrangements, and lump sum benchmark royalty payments on the achievement of certain clinical and regulatory milestones for each of the various indications and other direct cost incurred by NIH pursuant to the agreement.  The Company initially intends to focus on the development of licensed products in the metastatic melanoma field of use.  If the Company achieves all benchmarks for metastatic melanoma, up to and including the product’s first commercial sale in the United States, the total amount of such benchmark payments will be $6,050,000.  The benchmark payments for the other three indications, if all benchmarks are achieved, will be $6,050,000 for ovarian cancer, $12,100,000 for breast cancer, and $12,100,000 for colorectal cancer.  Accordingly, if the Company achieves all benchmarks for all four licensed indications, the aggregate amount of benchmark royalty payments that the Company will have to make to NIH will be $36,300,000.
	During the three months ended March 31, 2013 and March 31, 2014, there were no net sales subject to certain annual minimum royalty payments or sales that would require us to pay a percentage of revenues from sublicensing arrangements.  In addition there were no benchmarks or milestones achieved that would require payment under the lump sum benchmark royalty payments on the achievement of certain clinical and regulatory milestones for each of the various indications.
	As of December 31, 2013, $941,659 was due under the License Agreement with NIH.  On January 17, 2014, the Company paid the NIH the entire past due amount of $941,659 payable to the NIH under the License Agreement, and the Company is now current with all of its payment obligations under the License Agreement.

7_RELATED_PARTY_TRANSACTIONS

7. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
7. RELATED PARTY TRANSACTIONS	'
	Accrued Payroll and Fees
	As of March 31, 2014 and December 31, 2013, the Company had accrued the unpaid salaries of its officers and fees due to members of the Company’s board of directors in the amount of $338,731 and $338,731, respectively, which is included in accrued expenses in the accompanying condensed balance sheet.

8_SUBSEQUENT_EVENTS

8. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
8. SUBSEQUENT EVENTS	'
	In April 2014, the Company received $860,855 of cash from the exercise of 344,342 warrants that it sold in the November 2013 Private Placement.
	On April 23, 2014, the Company received a subpoena from the Securities Exchange Commission (the “SEC”) that stated that the staff of the SEC is conducting an investigation In the Matter of Galena Biopharma, Inc. File No. HO 12356 and that the subpoena was issued to the Company as part of the foregoing investigation.  Galena Biopharma is an unaffiliated, publicly-held biopharmaceutical company.  In the Form 10-K that Galena Biopharma, Inc. filed with the SEC on March 17, 2014, Galena Biopharma stated that the SEC is investigating certain matters relating to Galena Biopharma and an outside investor-relations firm that it retained in 2013.  The SEC’s subpoena and accompanying letter do not indicate whether the Company is, or is not, under investigation.  The Company has contacted the SEC’s staff regarding the subpoena, and the Company is cooperating with the SEC.
	The subpoena requires the Company to give the SEC, among other materials, all communications between anyone at the Company and certain persons and entities (which include investor-relations firms and persons associated with the investor-relations firms), all documents related to the listed persons and entities, all articles regarding the Company posted on certain equity research or other financial websites, and documents and communications related to individuals who post or have posted articles regarding the Company on equity research or other financial websites.
	There are no other pending legal proceedings to which the Company is a party or of which its property is the subject.

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies)	3 Months Ended
	Mar. 31, 2014
Summary Of Significant Accounting Practices Policies	'
Loss per Share	'
	Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. For the three months ended March 31, 2014 and 2013, the calculations of basic and diluted loss per share are the same because inclusion of potential dilutive securities in the computation would have an anti-dilutive effect due to the net losses.
	The potentially dilutive securities at March 31, 2014 consist of options to acquire 638,750 shares of the Company’s common stock, warrants to acquire 12,156,156 shares of common stock and preferred stock that can convert into 6,650,000 shares of common stock.
Fair Value Measurements	'
	The Company uses various inputs in determining the fair value of certain assets and liabilities and measures these on a recurring basis. Financial assets and liabilities recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by the Financial Accounting Standards Board (the “FASB”) defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets and liabilities:
	Level 1—Quoted prices in active markets for identical assets or liabilities.
	Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
	Level 3—Unobservable inputs based on the Company's assumptions.
	We are required to use observable market data if such data is available, without undue cost and effort. At March 31, 2014 and December 31, 2013, the fair value of cash and cash equivalents and accounts payable approximate their carrying values.
Use of Estimates	'
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Stock-Based Compensation	'
	The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board where the value of the stock compensation is determined based upon the measurement date as at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date.
	The fair value of the Company's common stock option grants are estimated using a Black-Scholes option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods.
Recent Accounting Pronouncements	'
	In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)."  ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations.  Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations.  This new accounting guidance is effective for annual periods beginning after December 15, 2014.  The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition.
	On February 26, 2014, the FASB affirmed changes in a November 2013 Exposure Draft, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, and directed the staff to draft a final Accounting Standards Update for vote by the FASB.  This is intended to reduce the cost and complexity in financial reporting by eliminating inception-to-date information from the financial statements of development stage entities.
	Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

5_STOCK_OPTIONS_AND_WARRANT_Ta

5. STOCK OPTIONS AND WARRANT (Tables)

3 Months Ended

Mar. 31, 2014

Stock Options And Warrant Tables

'

Stock Options

'

Weighted

Weighted

Average

Shares

Average

Remaining

Aggregate

Under

Exercise

Contractual

Intrinsic

Option

Price

Life

Value

Outstanding at December 31, 2013

278,750

$

23.1

9.1 years

$

1,176,063

Granted

360,000

6.68

4.9 years

Exercised

-

Expired/Forfeited

-

Outstanding at March 31, 2014

638,750

$

13.87

6.6 years

$

1,934,373

Exercisable at March 31, 2014

168,333

$

27.16

6.8 years

$

509,775

Black-Scholes option pricing model

'

Expected volatility

236%

Expected dividends

0

Expected average term (in years)

6

Risk free rate - average

1.75%

Forfeiture rate

0

Warrants

'

Weighted

Weighted

Average

Shares

Average

Remaining

Aggregate

Under

Exercise

Contractual

Intrinsic

Warrants

Price

Life

Value

Outstanding at December 31, 2013

12,373,156

$

2.51

4.11 years

$

-

Issued

-

Exercised

-217,000

2.5

Expired

-

Outstanding and exercisable at March 31, 2014

12,156,156

$

2.51

4.60 years

$

30,513,890

1_GENERAL_ORGANIZATION_AND_BUS1

1. GENERAL ORGANIZATION AND BUSINESS (Details Narrative) (USD $)	3 Months Ended		78 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013
General Organization And Business Details Narrative	'	'	'	'
Net loss	$2,259,514	$1,046,529	$58,325,072	'
Cash used in operating activities	2,267,363	'	'	'
Cash and cash equivalents	$17,943,877	'	$17,943,877	$19,672,177

5_STOCK_OPTIONS_AND_WARRANTS_D

5. STOCK OPTIONS AND WARRANTS (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Shares Under Option	'
Outstanding beginning balance	278,750
Granted	360,000
Exercised	'
Expired/Forfeited	'
Outstanding ending balance	638,750
Exercisable ending balance	168,333
Weighted Average Exercise Price	'
Outstanding beginning balance	$23.10
Granted	$6.68
Exercised	'
Expired	'
Outstanding ending balance	$13.87
Exercisable ending balance	$27.16
Outstanding beginning balance	'9 years 1 month 6 days
Outstanding ending balance	'6 years 7 months 6 days
Exercisable ending balance	'6 years 9 months 18 days
Aggregate Intrinsic Value	'
Outstanding beginning balance	$1,176,063
Outstanding ending balance	1,934,373
Exercisable ending balance	$509,775

5_STOCK_OPTIONS_AND_WARRANTS_D1

5. STOCK OPTIONS AND WARRANTS (Details 1)	3 Months Ended
	Mar. 31, 2014
Stock Options And Warrant Tables	'
Expected volatility	236.00%
Expected dividends	0.00%
Expected average term (in years)	'6 years
Risk free rate - average	1.75%
Forfeiture rate	0.00%

5_STOCK_OPTIONS_AND_WARRANTS_D2

5. STOCK OPTIONS AND WARRANTS (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2014
Shares Under Warrants	'
Outstanding beginning balance	278,750
Issued	360,000
Expired	'
Outstanding ending balance	638,750
Exercisable ending balance	168,333
Weighted Average Exercise Price	'
Outstanding beginning balance	$23.10
Issued	$6.68
Outstanding ending balance	$13.87
Exercisable ending balance	$27.16
Outstanding ending balance	'9 years 1 month 6 days
Aggregate Intrinsic Value	'
Outstanding beginning balance	$1,176,063
Outstanding ending balance	1,934,373
Warrant [Member]	'
Shares Under Warrants	'
Outstanding beginning balance	12,373,156
Issued	'
Exercised	-217,000
Expired	'
Outstanding ending balance	12,156,156
Weighted Average Exercise Price	'
Outstanding beginning balance	$2.51
Exercised	$2.50
Outstanding ending balance	$2.50
Outstanding beginning balance	'4 years 1 month 10 days
Outstanding ending balance	'4 years 7 months 6 days
Aggregate Intrinsic Value	'
Outstanding beginning balance	'
Outstanding ending balance	$30,513,890