Iovance Biotherapeutics (IOVA) 10-Q 23 Oct 13 2013 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Oct. 22, 2013
Document And Entity Information
Entity Registrant Name	Lion Biotechnologies, Inc.
Entity Central Index Key	1425205
Document Type	10-Q
Document Period End Date	30-Jun-13
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
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		15,093,812
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Jun. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$569,581
Deposits	5,000	5,000
Prepaid expenses	4,135	2,275
Total current assets	578,716	7,275
Property and equipment, net of accumulated depreciation of $12,020 and $8,915	19,033	22,138
Total assets	597,749	29,413
Current Liabilities
Accounts payable	1,480,851	1,098,271
Accrued expenses	1,888,220	1,740,220
7% convertible promissory notes		5,000,000
12% secured promissory notes		1,231,250
September 2012 secured promissory note		250,000
Accrued interest and penalty		2,029,148
Total Current Liabilities	3,369,071	11,348,889
Commitments and contingencies
Stockholders' Deficiency
Common stock, $0.000041666 par value; 18,000,000 shares authorized, 13,332,315 and 818,806 shares issued and outstanding, respectively	556	34
Common shares to be issued, 303,125 shares	245,153	245,153
Common stock subscribed for, 400,000 shares	400,000
Additional paid-in capital	31,742,948	19,119,532
Accumulated deficit	-35,159,979	-30,684,195
Total Stockholders' Deficiency	-2,771,322	-11,319,476
Total Liabilities and Stockholders' Deficiency	$597,749	$29,413

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$12,020	$8,915
Common Stock Par Value	$0.00	$0.00
Common Stock Shares Authorized	18,000,000	18,000,000
Common Stock Shares Issued	13,332,315	818,806
Common Stock Shares Outstanding	13,332,315	818,806

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended		69 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
Income Statement [Abstract]
Revenues
Costs and expenses
Operating expenses (including $87,386, $469,486, 133,032, $1,696,712 and $16,312,129 in share based compensation costs)	779,260	1,376,425	1,214,173	3,626,558	27,712,211
Research and development	250,000	270,000	520,000	1,156,000	4,103,045
Impairment of intangible asset					160,036
Total costs and expenses	1,029,260	1,646,425	1,734,173	4,782,558	31,975,292
Loss from operations	-1,029,260	-1,646,425	-1,734,173	-4,782,558	-31,975,292
Other income (expense)
Interest expense	-104,127	-110,810	-445,743	-199,282	-2,518,959
Change in fair value of derivative liabilities		1,927,839		-620,235	10,001,955
Amortization of discount on convertible notes		-497,888		-497,888	-5,497,888
Cost to induce exchange transaction	-2,295,868		-2,295,868		-2,295,868
Financing costs					-2,873,927
Total other income (expense)	-2,399,995	1,319,141	-2,741,611	-1,317,405	-3,184,687
Net Loss	($3,429,255)	($327,284)	($4,475,784)	($6,099,963)	($35,159,979)
Net Loss Per Share, Basic and Diluted	($0.01)	$0	($0.01)	($0.08)
Weighted-Average Common Shares Outstanding, Basic and Diluted	6,241,327	782,931	2,901,424	782,149

Condensed_Statements_of_Operat1

Condensed Statements of Operations (Parenthetical) (USD $)	3 Months Ended		6 Months Ended		69 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
Costs and expenses
Share-Based Compensation	$87,386	$469,486	$133,032	$1,696,712	$16,312,129

Statements_of_Stockholders_Equ

Statements of Stockholders' Equity (Deficiency) (USD $)	Common Stock	Common Stock To Be Issued	Common Stock Subscribed For	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance Amount at Dec. 31, 2012	$34	$245,153		$19,119,532	($30,684,195)	($11,319,476)
Beginning Balance Shares at Dec. 31, 2012	818,806
Common stock issued in settlement of notes payable and accrued interest and penalty, Shares	9,267,641
Common stock issued in settlement of notes payable and accrued interest and penalty, Amount	386			9,267,255		9,267,641
Common stock issued for cash under the restructuring, Shares	950,000
Common stock issued for cash under the restructuring, Amount	40		400,000	839,970		1,240,010
Fair value of common stock issued for cancellation of outstanding warrants, Shares	122,734
Fair value of common stock issued for cancellation of outstanding warrants, Amount	5			122,729		122,734
Fair value of vested stock options and warrants, Amount				220,418		220,418
Fair value of additional Common Stock granted in exchange transaction, $1.00 per share, Shares	2,173,134
Fair value of additional Common Stock granted in exchange transaction, $1.00 per share, Amount	91			2,173,044		2,173,135
Net loss					-4,475,784	-4,475,784
Ending Balance Amount at Jun. 30, 2013	$556	$245,153	$400,000	$31,742,948	($35,159,979)	($2,771,322)
Ending Balance Shares at Jun. 30, 2013	13,332,315

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended		69 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
Cash Flows From Operating Activities
Net loss	($4,475,784)	($6,099,963)	($35,159,979)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,106	3,105	73,392
Impairment of intangible asset			160,036
Fair value of vested stock options and warrants	220,418	1,646,712	4,656,593
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
Common shares to be issued with 12% promissiory notes		497,888
Private placement costs			385,000
Change in fair value of derivative liabilities		620,236	-10,001,955
Common stock issued to officer for services			8,010,000
Common stock issued for services		50,000	1,298,452
Common stock issued conversion of warrants	122,734		122,734
Common stock issued for repricing shares	2,173,134		2,173,134
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	-1,860	5,236	-9,135
Accounts payable, accrued expenses and interest and penalty	976,322	700,058	5,843,962
Accrued expenses - National Institute of Health		616,000
Net Cash Used In Operating Activities	-981,930	-1,960,728	-10,105,264
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment			-35,053
Advances to related party			-50,000
Net Cash Used In Investing Activities			-85,053
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of convertible notes, net	311,500		4,926,500
Proceeds from the issuance of secured promissory notes		1,216,250	1,481,250
Proceeds from the issuance of common stock	1,240,010	250,000	4,334,010
Due to director			18,137
Net Cash Provided By Financing Activities	1,551,510	1,466,250	10,759,897
Net Decrease In Cash And Cash Equivalents	569,580	-494,478	569,580
Cash and Cash Equivalents, Beginning of Period		510,017
Cash and Cash Equivalents, End of Period	569,580	15,539	569,580
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		182,081	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, accrued interest and penalty	$9,267,641		$9,267,641

1_GENERAL_ORGANIZATION_AND_BUS

1. GENERAL ORGANIZATION AND BUSINESS	6 Months Ended
	Jun. 30, 2013
Accounting Policies [Abstract]
NOTE 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. The Company is considered a development stage company, and has had no revenues from operations to date.
	The Company’s initial operations included organization, capital formation, target market identification, new product development and marketing plans. The Company has become a biopharmaceutical company engaged in the development and commercialization of drugs and other therapies using autologous tumor infiltrating lymphocytes for the treatment of Stage IV metastatic melanoma and other cancers.  Our lead product candidate, Cōntego™, is an adoptive cell therapy using autologous tumor infiltrating lymphocytes for the treatment of certain cancers.
	On March 15, 2010, the Company (then named Freight Management Corp.) and Genesis Biopharma, Inc., a Nevada corporation and newly formed merger subsidiary wholly owned by the Company (“Merger Sub”), consummated a merger transaction (the “Merger”) whereby Merger Sub merged into the Company, with the Company as the surviving corporation.  The Company and Merger Sub filed the Articles of Merger on March 15, 2010 with the Secretary of State of Nevada, along with the Agreement and Plan of Merger entered into by the two parties effective as of March 15, 2010 (the “Merger Agreement”).  The Merger Agreement and the Articles of Merger provided for an amendment of the Company’s Articles of Incorporation, which changed the Company’s name to “Genesis Biopharma, Inc.” effective March 15, 2010.
	On September 26, 2013, the Company changed its name to “Lion Biotechnologies, Inc.” and effected a 1-for-100 reverse stock split.  Common stock share and per share information contained in this Quarterly Report, including in these unaudited condensed financial statements, has been adjusted to reflected the foregoing stock split as if it occurred at the earliest period presented.
	Basis of Presentation of Unaudited Condensed Financial Information
	The unaudited condensed financial statements of the Company for the three and six months ended June 30, 2013 and 2012 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, 2012 was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on September 23, 2013. 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 have not yet generated any revenues from our biopharmaceutical business. We currently do not anticipate that we will generate any revenues during 2013 from the sale or licensing of any products. In addition, we have not generated any revenues from our prior business plans.
	Going Concern
	The accompanying condensed financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has not had any revenue and is in the development stage.  As shown in the accompanying condensed financial statements, the Company has incurred a net loss of $4,475,784 for the six months ended June 30, 2013 and has used $1,214,173 of cash in its operating activities during the six months ended June 30, 2013.  As of June 30, 2013, the Company has a stockholders’ deficiency of $2,771,322 and has a working capital deficiency of $2,790,355.
	The Company’s ability to continue as a going concern is dependent upon its ability to develop additional sources of capital and to ultimately achieve sustainable revenues and profitable operations. As a result, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2012 financial statements, has raised substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial statements do not include any adjustments that might result from the outcome of these uncertainties. At June 30, 2013, the Company has not yet commenced any revenue-generating operations and is dependent on debt and equity funding to finance its operations.
	We currently do not have sufficient capital on hand to fund our anticipated on-going operating expenses, and we do not have any bank credit lines or other sources of capital. Accordingly, we will have to obtain additional debt or equity funding in the near future in order to continue our operations.  We have not identified the sources for the additional financing that we will require, and we do not have commitments from any third parties to provide this financing.  No assurance can be given that we will have access to the capital markets in future, or that financing will be available to us on acceptable terms to satisfy either our short-term future loan repayment obligations or our subsequent on-going cash requirements that we need to implement our business strategies.  Our inability to access the capital markets or obtain acceptable financing could force us to terminate our business, abandon our plan to develop Cōntego™, and cease operations.
	Because the Company is currently engaged in research at an early stage, it will likely take a significant amount of time to develop any product or intellectual property capable of generating revenues. As such, the Company’s business is unlikely to generate any sustainable revenues in the next several years, and may never do so. Even if the Company is able to generate revenues in the future through licensing its technologies or through product sales, there can be no assurance that the Company will be able to generate a profit. These factors, coupled with our inability to meet our obligations from current operations, and the need to raise additional capital to accomplish our objectives, create a substantial doubt about our ability to continue as a going concern.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	6 Months Ended
	Jun. 30, 2013
Notes to Financial Statements
NOTE 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 and six months ended June 30, 2013 and 2012, 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 June 30, 2013 consist of options to acquire 93,750 shares of the Company’s common stock and warrants to acquire 1,000 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.
	Derivative financial instruments
	The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives.  The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.  Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.
	For stock-based derivative financial instruments, the Company used a probability weighted average Black-Scholes-Merton models to value the derivative instruments at inception and on subsequent valuation dates through September 30, 2012.  At December 31, 2012, the Company used the assistance of valuation specialist to determine fair value of the derivative liability. On May 22, 2013, upon the completed restructuring of the Company’s unregistered debt and equity securities (“financial instruments”) (see Note 3), all financial instruments that were subjected to a derivative liability were converted into shares of the Company’s common stock.  As such, the Company had no derivative liabilities as of June 30, 2013.
	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 whereas 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 whereas the value of the stock compensation is based upon the measurement date as determined 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 grant is estimated using the 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 January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies which instruments and transactions are subject to the offsetting disclosure requirements established by ASU 2011-11. This guidance is effective for annual and interim reporting periods beginning January 1, 2013. We do not believe the adoption of this update will have a material effect on our financial position and results of operations.
	On March 4, 2013, the FASB issued ASU 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. We do not believe the adoption of this update will have a material effect on our financial position and results of operations.
	In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Loss, or a Tax Credit Carryforward Exists. Topic 740, Income Taxes, does not include explicit guidance on the financial statement presented of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. There is diversity in practice in the presentation of unrecognized tax benefits in those instances and the amendments in this update are intended to eliminate that diversity in practice. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Early adoption is permitted.  We do not believe the adoption of this update will have a material effect on our financial position and results of operations.
	Other accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

3_RESTRUCTURING_OF_DEBT

3. RESTRUCTURING OF DEBT	6 Months Ended
	Jun. 30, 2013
Debt Disclosure [Abstract]
3. RESTRUCTURING OF DEBT	Effective May 22, 2013, the Company completed a restructuring of its unregistered debt and equity securities resulting in issuance of shares of common stock in exchange for (i) the cancellation of the 12% Secured Promissory Notes, (ii) 7% Senior Secured Notes, (iii) September 2012 Secured Promissory Notes, (iv) 18% Notes and certain other indebtedness, (v) and the receipt of $1.35 million from the sale of shares of common stock (the “Restructuring”).  To effect the Restructuring, the Company entered into an exchange agreement (the “Exchange Agreement”) and a stock purchase agreement (the “Stock Purchase Agreement”). The Exchange Agreement, Stock Purchase Agreement and the transactions contemplated thereby are described in further detail below.  The terms of the Restructuring were determined in negotiations between the Company and the creditors and investors party thereto, and were approved by the Board of Directors, including a majority of the disinterested directors. The securities issued pursuant the Restructuring are exempt from registration under Section 4(2) of the Securities Act of 1933 (the “Securities Act”) and Rule 506 of Regulation D because, among other reasons, all offerees are “accredited investors” under Section 2(15) of the Securities Act, all participants were existing security holders of the Company, and no general solicitation or public advertisement was conducted in connection with the Restructuring.  The terms of the Restructuring are as follows:
	Exchange Agreement
	Before the Exchange Agreement was entered into on May 22, 2013, the Company had outstanding promissory notes payable, and accrued interest and penalties thereon, in the aggregate amount of $9,267,641.  These obligations arose  as follows;
	·	From April to July 2012, we entered into Note and Common Stock Subscription Agreement (the “Subscription Agreement”) with accredited investors (collectively, the “Purchasers”) in connection with the subscription by the Purchasers for certain Secured Promissory Notes (the “2012 Secured Notes”) and shares of our common stock.  The 2012 Secured Notes bore interest at 12% per annum and were originally due to mature on June 30, 2012. The note maturity date was amended several times but was in default as of December 31, 2012.  As of December 31, 2012, and on May 22, 2013, the principal balance of these outstanding notes was $1,231,250. In addition, approximately $149,000 of interest and penalties was due as of May 22, 2013
	·	On July 27, 2011 the Company completed an offering of $5,000,000 of its senior secured convertible promissory notes (the “Senior Secured Notes”). The Senior Secured Notes bore an interest rate of 7% per annum, were originally scheduled to mature on November 30, 2011, and were convertible into shares of the Company’s common stock at a conversion price of $125.00 per share, subject to adjustment. The terms and maturity date of the Senior Secured Notes had been amended several times, but were in default as of December 31, 2012.  As of December 31, 2012, and on May 22, 2013, the principal balance of these outstanding notes was $5,000,000. In addition, approximately $2,300,000 of interest and penalties was due as of May 22, 2013.
	·	On September 12, 2012, the Company issued a promissory note amounting to $250,000.  As amended, the note was due on demand, bore interest at a rate of 12% per annum and was secured by the Company’s assets.  As of December 31, 2012, and on May 22, 2013, the principal balance of this outstanding note was $250,000. In addition, approximately $24,000 of interest and penalties was due as of May 22, 2013.
	·	In January and May, 2013, the Company issued four (4) eighteen (18%) percent convertible promissory notes in the aggregate amount of $311,500 (each an “18% Note”) that were due on demand. As of May 22, 2013, the balance of these outstanding notes was $311,500.  In addition, approximately $19,000 of interest and penalties was due as of May 22, 2013.
	Under the Exchange Agreement, these creditors of the Company converted all of the foregoing outstanding debt into 9,267,641 shares of Common Stock at a conversion price of $1.00 per share.
	This Exchange Agreement terminated all outstanding promissory notes and warrants originally issued with these notes, and any anti-dilution protection thereunder.  The Exchange Agreement provides for new limited anti-dilution protection for shares of Common Stock issued under the Exchange Agreement, whereby such shares receive anti-dilution protection for any shares of capital stock of the Company sold at less than $1.00 per share, solely with respect to the first $6 million of any new sales of securities of the Company.  In addition, all creditors and placement agents provided a release of all claims against the Company with respect to all rights and ownership of the Debt and warrants, in consideration of the shares issued pursuant to this Exchange Agreement. These shares that may potentially be issued are deemed to be indexed to the Company’s own stock, and as such, not subject to derivative accounting.
	Stock Purchase Agreement
	In addition to the exchange agreement, certain creditors entered into a Stock Purchase Agreement that resulted in the sale of 1,100,000 shares of common stock at a price of $1.00 per share.  Furthermore, certain creditors purchased an additional of 250,000 shares of Common Stock at a purchase price of $1.00 per share under the exchange agreement, resulting in aggregate issuance of 1,350,000 shares of common stock (of which 400,000 shares have yet to be issued) for proceeds to the Company of $1,240,010, net of legal fees of $109,990.
	In addition, any investor participating in and purchasing a minimum amount of Common Stock in the financing received, for no further consideration, the number of shares of Common Stock that such Investor would have received in debt or equity transactions if the price per share of Common Stock in prior transactions where they purchase stock or convertible notes would have been $1.00 per share (the “Repricing Issuance”).  As such, the Company issued 2,173,134 shares of common stock to these investors, and reflected the fair value of such shares of $2,173,134 (based on a value of a $1.00 per share) as cost to induce the exchange.
	In addition, certain creditors and certain placement agents associated with the Debt, together holding warrants to purchase 40,800 shares of capital stock of the Company exchanged such warrants and received one share of Common Stock in exchange for each share of capital stock of the Company underlying the warrants. All Investors and other parties holding warrants to purchase 81,934 shares of capital stock of the Company exchanged such warrants and received one share of Common Stock in exchange for each share of capital stock of the Company underlying the warrants.  In the aggregate, warrants to acquire 122,734 shares of common stock were cancelled and exchanged for 122,734 shares of common stock, which were valued at $122,734 and reflected as a cost in the accompanying statement of operations.
	The Stock Purchase Agreement resulted in the issuance of 3,245,868 shares of common stock.  In addition, one investor paid $400,000 for the right to acquire, at any time and for no additional consideration, up to 400,000 additional shares of common stock. The Stock Purchase Agreement provides for new limited anti-dilution protection for shares of Common Stock issued under the Stock Purchase Agreement, whereby such shares receive anti-dilution protection for any shares of capital stock of the Company sold at less than $1.00 per share, solely with respect to the first $6 million of any new sales of securities of the Company. These shares that may potentially be issued are deemed to be indexed to the Company’s own stock, and as such, not subject to liability accounting.

4_EQUITY_RESTRUCTURING

4. EQUITY RESTRUCTURING	6 Months Ended
	Jun. 30, 2013
Restructuring and Related Activities [Abstract]
4. EQUITY RESTRUCTURING	Pursuant to the Restructuring, the Company underwent a significant change in ownership of its shares.  Under the Restructuring, certain creditors, Investors, placement agents and consultants were issued approximately 94% of the Company’s outstanding voting equity interests, with Ayer Capital Partners Master Fund, L.P. together with certain of its affiliates (the “Ayer Funds”) and Bristol Investment Fund, Ltd., together with certain of its affiliates (“Bristol”), owning approximately 41% and 29% respectively of the Company’s outstanding voting securities.  Prior to the Restructuring, control of the Company was widely disseminated among various stockholders, including the Investors.  No single shareholder holds more than 41% of the voting shares after the restructuring.  The Company did not apply push down accounting to financial assets and liabilities as it believes the change was less than the required for push down accounting.
	On May 20, 2013, Martin Schroeder resigned from the Board of Directors.  In connection with the Restructuring, on May 22, 2013, Anthony Cataldo, Michael Handelman and William Andrews resigned from our Board of Directors. Finally, on May 24, 2013, our stockholders removed Dr. L. Stephen Coles from the Board and elected Paul Kessler to serve as an additional director on the Board.  Mr. Kessler is a director of Bristol Investment Fund, Ltd. and a manager of Bristol Capital, LLC who, collectively, hold approximately 27.5% of our currently outstanding shares of common stock. Under the Restructuring, Bristol converted approximately $2.92 million in Debt (including accrued interest and penalties) into shares of Common Stock, invested $341,111 in the Financing, received a Repricing Issuance, and exchanged 45,325 warrants for shares of capital stock of the Company into shares of Common Stock, collectively resulting in the issuance of approximately 3,910,000 shares of Common Stock to Bristol.
	Effective as of May 28, 2013, the Company amended its Bylaws to opt out of the Nevada Revised Statutes acquisition of controlling interest provisions 78.378 to 78.3793, inclusive and to provide that a majority of the outstanding voting securities of the Company may fill a vacancy on the Company’s board of directors.
	Settlement Mr. Cataldo
	On June 19, 2013, the Company entered into a Settlement Agreement and General Release of All Claims (the “Agreement”) with Mr. Anthony Cataldo, the Company’s former chief executive officer (“Cataldo”). Per the Agreement, Mr. Cataldo voluntarily resigned as the Company’s chief executive officer, effective as of June 1, 2013. The Agreement also settles any amounts owed to Mr. Cataldo by the Company, providing that upon the Company achieving its first financing with aggregate proceeds to the Company of greater than $5,000,000 following the date of the Agreement (the “Financing”), the Company shall provide Cataldo with a cash payment equal to $370,000 (“settlement amount”), to be paid out as follows: (a) a payment of $120,000 in cash, less all appropriate federal and state income and employment taxes, payable to Cataldo within ten (10) business days following the closing of the Financing, and (b) a payment of $250,000, less all appropriate federal and state income and employment taxes, payable to Cataldo within ten (10) business days following a closing of the Financing and immediately reinvested by Company on Cataldo’s behalf in the Financing, on the same terms and conditions therein. The Agreement also provides for mutual releases of all claims related in any way to the transactions or occurrences between Cataldo and the Company to date, to the fullest extent permitted by law, including, but not limited to, Cataldo’s employment with Company.
	The Company recorded the $370,000 settlement amount to Mr. Cataldo under the caption “Accrued expenses” on the accompanying balance sheet as of June 30, 2013.  No portion of this settlement amount was paid to Mr. Cataldo as of June 30, 2013.

5_DERIVATIVE_LIABILITIES

5. DERIVATIVE LIABILITIES	6 Months Ended
	Jun. 30, 2013
Notes to Financial Statements
NOTE 5. DERIVATIVE LIABILITIES	In June 2008, the FASB issued authoritative guidance on determining whether an instrument (or embedded feature) is indexed to an entity’s own stock.  Under the authoritative guidance, effective January 1, 2009, instruments which did not have fixed settlement provisions were deemed to be derivative instruments.  The convertible notes and warrants issued related to the private placement do not have fixed settlement provisions because their conversion and exercise prices may be lowered if the Company issues securities at lower prices in the future.  The conversion feature and warrants have been characterized as derivative liabilities to be re-measured at the end of every reporting period with the change in value reported in the statement of operations.
	The Company used the assistance of a valuation specialist due to the complexity in determining the fair value of its derivative liability at December 31, 2012.  As a result of the Company’s inability to pay its debt obligations, the default status of its convertible promissory notes and lack of available working capital at December 31, 2012, for valuation purposes, the Company, with the assistance of the independent valuation expert determined that the effect of the default and insolvent financial condition, as such, the outstanding conversion features and warrants accounted for as derivative upon its issuance had no more value at December 31, 2012.  On May 22, 2013, upon the completed restructuring of the Company’s unregistered debt and equity securities (“financial instruments”) (see Note 3), all financial instruments that were subjected to derivative accounting were converted into shares of the Company’s common stock.  As such, the Company had no derivative liabilities as of June 30, 2013.

6_STOCK_OPTIONS_AND_WARRANTS

6. STOCK OPTIONS AND WARRANTS	6 Months Ended
	Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
6. 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 June 30, 2013, and the changes during the six 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, 2012		93,750		107	7.7 years	$	217,063
	Granted
	Exercised
	Expired/Forfeited
	Outstanding at June 30, 2013		93,750	$	107	7.2 years	$	0
	Exercisable at June 30, 2013		65,165	$	102	6.8 years	$	0
	During the three and six months ended June 30, 2013, the Company recorded compensation costs of $133,032 and $220,418, respectively, relating to the vesting of the stock options discussed above.  During the three and six months ended June 30, 2012, the Company recorded compensation costs of $469,486 and $1,646,712, respectively, relating to the vesting of the stock options.  As of June 30, 2013, the aggregate value of unvested options was $2,956,102, which will continue to be amortized as compensation cost as the options vest over terms ranging from 1 to 5 years, as applicable.  On August 31, 2013, 25,000 options to purchase common stock granted to Mr. Cataldo with unamortized compensation cost of $1,611,698 were forfeited as a result of his resignation as our chief executive officer effective June 1, 2013. See Note 4.
	On March 1, 2011, the Company entered into an employment agreement that provided for the grant of options to purchase 25,000 shares of its common stock at an exercise price of $125.00.  The options were to vest as follows: a) 5,000 shares vested immediately and b) 20,000 shares vest in equal monthly installments over the two-year term of the agreement. Neither the Board of Directors nor the Compensation Committee approved the grant the foregoing options. Accordingly, the Company may be obligated to grant these options, but has not done so yet. Therefore, as the grant of these options has not been approved, they are not included in compensation expense or in number of granted options listed as of and for the year ended December 31, 2012 or as of and for the three and six months ended June 30, 2013.
	Warrants
	A summary of the status of stock warrants at June 30, 2013, and the changes during the six 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, 2012		108,734	$	123	3.5 years	$	-
	Issued		15,000
	Exercised		-122,734
	Expired		-
	Outstanding and exerciseable at June 30, 2013		1,000	$	126	7.5 years	$	-

7_LICENSE_AND_COMMITMENTS

7. LICENSE AND COMMITMENTS	6 Months Ended
	Jun. 30, 2013
Notes to Financial Statements
NOTE 7. 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.  The first quarterly installment of $250,000 was due within thirty (30) days of the Effective Date of the CRADA and each subsequent installment will be due within thirty (30) days of each quarterly anniversary of the December 5, 2011 Effective Date.  In addition, 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 six months ended June 30, 2013, the Company recognized a total of $500,000, of CRADA expenses, which was recorded as part of Research and Development expenses in the condensed statement of operations.  As of June 30, 2013 and December 31, 2012, $250,000 and $500,000, respectively, was due under these agreements.
	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 neither the year ended December 31, 2012  or the six month ended June 30,2013, there were no net sales subject to certain annual minimum royalty payments, 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 the date of this Quarterly Report, the amount due of $632,292 is currently past due and included in the condensed balance sheet and the Company deemed in default.  The Company has not received any termination notice from the NIH and is currently in discussion to cure the default.

8_RELATED_PARTY_TRANSACTIONS

8. RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2013
Related Party Transactions [Abstract]
NOTE 8. RELATED PARTY TRANSACTIONS	Accrued Payroll and Fees
	As of June 30, 2013 and December 31, 2012, the Company accrued the unpaid salaries of its officers and fees due to members of the Company’s board of directors in the amount of $758,081 and $395,081 respectively, which is included in Accrued Expenses in the accompanying condensed balance sheet.
	Emmes Group Consulting LLC
	Effective as of February 15, 2011, the Company entered into a consulting agreement with Emmes Group Consulting LLC, a strategic business consulting firm (“Emmes”). Mr. Schroeder, a former director of the Company, is an Executive Vice President and Managing Director of Emmes and the Emmes Group, Inc. Under the consulting agreement, Emmes agreed to assist and advise us with respect to the development of an overall strategic business plan, the identification of in-licensing therapeutic opportunities, and raising debt and equity capital. In consideration for the foregoing consulting services, we issued to Emmes a ten-year warrant to purchase up to 1,000 shares of our common stock at an exercise price of $126.00 per share. In addition, we agreed to pay Emmes $10,000 per month. The initial term of the consulting agreement expired on May 15, 2011, but continued in accordance with the terms of the consulting agreement for an unspecified term until terminated at any time by either party with or without cause. Effective August 1, 2011, the Company amended the consulting agreement to increase the monthly consulting fee to $20,000, commencing as of July 11, 2011. The amendment also extended the term of the consulting agreement to December 31, 2011.
	On February 12, 2012, the Company entered into a Second Amendment to the Consulting Agreement, engaging the Emmes Group as its senior contractor and project manager responsible for the overall management of the design, development, implementation, and installation of our corporate and regulatory compliant information technology infrastructure and systems. The consulting agreement with Emmes Group was terminated in January 2013.
	During the six months ended June 30, 2013, the Company recognized a total of $22,412, of consulting expenses from Emmes, which was recorded as part of Operating expenses in the condensed statement of operations.

9_SUBSEQUENT_EVENTS

9. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2013
Subsequent Events [Abstract]
9. SUBSEQUENT EVENTS	Agreement with Lion Biotechnologies, Inc.
	On July 24, 2013, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Lion Biotechnologies, Inc., a Delaware corporation, and Genesis Biopharma Sub, Inc., our newly formed Delaware subsidiary (“Merger Sub”), and thereby acquired Lion Biopharma (the “Merger”).  In the Merger, Lion Biotechnologies’ stockholders received, in exchange for all of their issued and outstanding shares of common stock, an aggregate of 1,340,000 shares of our Common Stock with a fair value of approximately $6,700,000 for consideration of the merger.  These shares were recorded as an expense in the third quarter of 2013.  In addition, the Lion Biotechnologies stockholders have the ability to receive an additional 1,350,000 shares of Common Stock upon the achievement of certain milestones related to the Company’s financial performance and position.  As part of the Merger, Dr. Manish Singh entered into an employment agreement with us whereby we appointed him as our Chief Executive Officer and Chairman of the Board of the Company.  We also agreed to reconstitute our Board of Directors by appointing Jay Venkatesan and Sanford J. Hillsberg to replace David Voyticky and Paul Kessler as directors on our Board.  These appointments and resignations became effective on September 3, 2013.
	In connection with his appointment as Chief Executive Officer and Chairman of the Board, we entered into an employment agreement with Dr. Singh pursuant to which we are required to pay Dr. Singh an annual base salary of $34,000 until this Company raises at least $1,000,000 in additional financing.  If we raise at least $1,000,000, Dr. Singh’s annual salary will at that time increase to $350,000.  In addition to his base salary, Dr. Singh will be eligible to participate in the Company’s annual incentive compensation program, with a target potential bonus of 30% of Dr. Singh’s salary, conditioned upon the satisfaction of individual and company objectives.  Dr. Singh will also be entitled to health and other benefits programs and, on July 24, 2014, he will also be eligible to receive stock option grants under the Company’s stock option plan.
	Amended and Restated Articles
	Effective September 26, 2013, the Company amended and restated its articles of incorporation.  The Amended and Restated Articles of Incorporation effected the following:
	(1) a 1-for-100 reverse stock split (pro-rata reduction of outstanding shares) of Common Stock (the “Reverse Stock Split”). All share and per share amounts included in these financial statements have been retroactively restated to reflect the reverse stock split as if it had occurred at the beginning of the earliest period presented.
	(2) to fix the number of authorized shares of Common Stock after the Reverse Stock Split at one hundred and fifty million (150,000,000) shares of Common Stock, which change resulted in an increase in the authorized number of shares of Common Stock.
	(3) to authorize the issuance of fifty million (50,000,000) shares of “blank check” preferred stock, $0.001 par value per share, to be issued in series, and all properties of such preferred stock to be determined by the Company’s Board.
	(4) to change the name of the Company to “Lion Biotechnologies, Inc.”
	(5) to add indemnification and limit the personal liability of officers and members of the Company’s Board of Directors.
	Amendment to 2011 Plan
	The Company’s Board of Directors and the holders of a majority of the issued and outstanding shares of common stock have to approved an amendment to the Company’s 2011 Equity Incentive Plan (the “2011 Plan”) (a) to increase the number of shares of common stock authorized for issuance under the 2011 Plan from 180,000 shares of common stock to 1,700,000 shares of common stock, (b) increasing the maximum number of shares eligible for issuance under the 2011 Plan in any twelve-month period from 50,000 shares of common stock to 300,000 shares of common stock.
	Director Stock Awards
	On July 24, 2013, the Company entered into a Director Stock Award Agreement (the “Award Agreement”) with each of General Merrill McPeak, Matrix Group International, Inc. (on behalf of David Voyticky) (“Matrix”) and Bristol Capital, LLC (on behalf of Paul Kessler) (“Bristol”) whereby General McPeak, Matrix and Bristol each received 133,532 shares of Common Stock or an aggregate of 400,596 shares with a fair value of approximately $2,002,982 for consideration of services rendered as directors.  The terms of the Award Agreement were approved by a majority of the Company’s stockholders, including a majority of the disinterested stockholders.  The securities issued pursuant the Award Agreement are exempt from registration under Section 4(2) of the Securities Act of 1933 (the “Securities Act”) because, among other reasons, all offerees are “accredited investors” under Section 2(15) of the Securities Act and no general solicitation or public advertisement was conducted in connection with the issuance.  These shares were recorded as an expense in the third quarter of 2013.

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies)	6 Months Ended
	Jun. 30, 2013
Summary Of Significant Accounting Practices Policies
Loss per Share	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 and six months ended June 30, 2013 and 2012, 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 June 30, 2013 consist of options to acquire 93,750 shares of the Company’s common stock and warrants to acquire 1,000 shares of common stock.
Fair Value Measurements	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.
Derivative financial instruments	Derivative financial instruments
	The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives.  The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.  Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date.
	For stock-based derivative financial instruments, the Company used a probability weighted average Black-Scholes-Merton models to value the derivative instruments at inception and on subsequent valuation dates through September 30, 2012.  At December 31, 2012, the Company used the assistance of valuation specialist to determine fair value of the derivative liability. On May 22, 2013, upon the completed restructuring of the Company’s unregistered debt and equity securities (“financial instruments”) (see Note 3), all financial instruments that were subjected to a derivative liability were converted into shares of the Company’s common stock.  As such, the Company had no derivative liabilities as of June 30, 2013.
Use of Estimates	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	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 whereas 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 whereas the value of the stock compensation is based upon the measurement date as determined 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 grant is estimated using the 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	Recent Accounting Pronouncements
	In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies which instruments and transactions are subject to the offsetting disclosure requirements established by ASU 2011-11. This guidance is effective for annual and interim reporting periods beginning January 1, 2013. We do not believe the adoption of this update will have a material effect on our financial position and results of operations.
	On March 4, 2013, the FASB issued ASU 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. We do not believe the adoption of this update will have a material effect on our financial position and results of operations.
	In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Loss, or a Tax Credit Carryforward Exists. Topic 740, Income Taxes, does not include explicit guidance on the financial statement presented of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. There is diversity in practice in the presentation of unrecognized tax benefits in those instances and the amendments in this update are intended to eliminate that diversity in practice. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Early adoption is permitted.  We do not believe the adoption of this update will have a material effect on our financial position and results of operations.
	Other accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

6_STOCK_OPTIONS_AND_WARRANT_Ta

6. STOCK OPTIONS AND WARRANT (Tables)	6 Months Ended
	Jun. 30, 2013
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, 2012		93,750		107	7.7 years	$	217,063
	Granted
	Exercised
	Expired/Forfeited
	Outstanding at June 30, 2013		93,750	$	107	7.2 years	$	0
	Exercisable at June 30, 2013		65,165	$	102	6.8 years	$	0
Warrants						Weighted
				Weighted		Average
		Shares		Average		Remaining	Aggregate
		Under		Exercise		Contractual	Intrinsic
		Warrants		Price		Life	Value
	Outstanding at December 31, 2012		108,734	$	123	3.5 years	$	-
	Issued		15,000
	Exercised		-122,734
	Expired		-
	Outstanding and exerciseable at June 30, 2013		1,000	$	126	7.5 years	$	-

1_GENERAL_ORGANIZATION_AND_BUS1

1. GENERAL ORGANIZATION AND BUSINESS (Details Narrative) (USD $)	3 Months Ended		6 Months Ended		69 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Dec. 31, 2012
General Organization And Business Details Narrative
Net loss	$3,429,255	$327,284	$4,475,784	$6,099,963	$35,159,979
Cash used in operating activities			-1,214,173
Stockholdersb deficiency	-2,771,322		-2,771,322		-2,771,322	-11,319,476
Working capital deficiency	($2,790,355)		($2,790,355)		($2,790,355)

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Details Narrative)	6 Months Ended
	Jun. 30, 2013
Option [Member]
Potentially dilutive securities	93,750
Warrant [Member]
Potentially dilutive securities	1,000

6_STOCK_OPTIONS_AND_WARRANTS_D

6. STOCK OPTIONS AND WARRANTS (Details) (Option [Member], USD $)	6 Months Ended
	Jun. 30, 2013
Option [Member]
Shares Under Option
Outstanding beginning balance	93,750
Exercised
Outstanding ending balance	93,750
Exercisable ending balance	65,165
Weighted Average Exercise Price
Outstanding beginning balance	$107
Outstanding ending balance	$107
Exercisable ending balance	$102
Outstanding beginning balance	7 years 8 months 12 days
Outstanding ending balance	7 years 7 days
Exercisable ending balance	6 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding beginning balance	$217,063
Outstanding ending balance	0
Exercisable ending balance	$0

6_STOCK_OPTIONS_AND_WARRANTS_D1

6. STOCK OPTIONS AND WARRANTS (Details 1) (Warrant [Member], USD $)	6 Months Ended
	Jun. 30, 2013
Warrant [Member]
Shares Under Warrants
Outstanding beginning balance	108,734
Issued	15,000
Exercised	-122,734
Expired
Outstanding ending balance	1,000
Exercisable ending balance	1,000
Weighted Average Exercise Price
Outstanding beginning balance	$123
Outstanding ending balance	$126
Exercisable ending balance	$126
Outstanding beginning balance	3 years 6 months
Outstanding ending balance	7 years 6 months
Aggregate Intrinsic Value
Outstanding beginning balance
Outstanding ending balance