Iovance Biotherapeutics (IOVA) 10-Q 8 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 14, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Lion Biotechnologies, Inc.	'
Entity Central Index Key	'0001425205	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-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	'	27,226,350
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets	'	'
Cash and cash equivalents	$18,440,361	$19,672,177
Deposits	9,744	15,000
Prepaid expenses	69,466	158,716
Total current assets	18,519,571	19,845,893
Property and equipment, net of accumulated depreciation of $33,730 and $16,002	15,771	27,756
Total assets	18,535,342	19,873,649
Current Liabilities	'	'
Accounts payable	440,550	412,976
Accrued expenses	715,922	1,856,956
Total Current Liabilities	1,156,472	2,269,932
Commitments and contingencies	'	'
Stockholders' Equity	'	'
Preferred stock, $0.001 par value; 50,000,000 shares authorized,5,800 shares and 17,000 shares issued and outstanding, respectively	6	17
Common stock, $0.000041666 par value; 150,000,000 shares authorized,27,226,350 and 20,023,958 shares issued and outstanding, respectively	1,135	835
Common shares to be issued, 303,125 shares	245,153	245,153
Additional paid-in capital	86,029,444	81,884,897
Accumulated deficit	-68,896,868	-64,527,185
Total Stockholders' Equity	17,378,870	17,603,717
Total Liabilities and Stockholders' Equity	$18,535,342	$19,873,649

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets	'	'
Property and equipment, accumulated depreciation	$33,730	$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	5,800	17,000
Preferred Stock Outstanding	5,800	17,000
Common Stock Par Value	$0.00	$0.00
Common Stock Shares Authorized	150,000,000	150,000,000
Common Stock Shares Issued	27,226,350	20,023,958
Common Stock Shares Outstanding	27,226,350	20,023,958

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Revenues	$0	$0	$0	$0
Costs and expenses	'	'	'	'
Operating expenses (including $919,350, $87,386, $1,781,355 and $133,032 in share based compensation costs)	1,748,942	779,260	3,705,794	1,214,173
Research and development	361,227	250,000	663,889	520,000
Total costs and expenses	2,110,169	1,029,260	4,369,683	1,734,173
Loss from operations	-2,110,169	-1,029,260	-4,369,683	-1,734,173
Other income	'	'	'	'
Interest expense	0	-104,127	0	-445,743
Cost to induce exchange transaction	0	-2,295,868	0	-2,295,868
Total other expense	0	-2,399,995	0	-2,741,611
Net Loss	($2,110,169)	($3,429,255)	($4,369,683)	($4,475,784)
Net Loss Per Share, Basic and Diluted	($0.09)	($4.19)	($0.19)	($1.54)
Weighted-Average Common Shares Outstanding, Basic and Diluted	24,137,782	818,806	22,502,761	2,904,391

Condensed_Statements_of_Operat1

Condensed Statements of Operations (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Costs and expenses	'	'	'	'
Share-Based Compensation	$919,350	$87,386	$1,781,355	$133,032

Condensed_Statements_of_Stockh

Condensed Statements of Stockholders' Equity (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	'	'	'	'
Fair value of stock options	'	'	'	1,340,601	'	1,340,601
Common stock issued upon exercise of warrants, Shares	'	945,392	'	'	'	'
Common stock issued upon exercise of warrants, Amount	'	40	'	2,363,441	'	2,363,481
Common stock issued upon conversion of preferred shares, Shares	-11,200	5,600,000	'	'	'	'
Common stock issued upon conversion of preferred shares, Amount	-11	233	'	-222	'	'
Common stock issued for services, Shares	'	657,000	'	'	'	'
Common stock issued for services, Amount	'	27	'	440,727	'	440,754
Net loss	'	'	'	'	-4,369,683	-4,369,683
Ending Balance, Amount at Jun. 30, 2014	$6	$1,135	$245,153	$86,029,444	($68,896,868)	$17,378,870
Ending Balance, Shares at Jun. 30, 2014	5,800	27,226,350	'	'	'	'

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows From Operating Activities	'	'
Net loss	($4,369,683)	($4,475,784)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	17,728	3,106
Fair value of vested stock options and warrants	1,340,601	220,418
Common stock issued for services	440,754	0
Common stock issued to induce conversion of warrants	0	122,734
Common stock issued to induce exchange transaction	0	2,173,134
Changes in assets and liabilities:	'	'
Deposits, prepaid expenses and other assets	94,506	-1,860
Accounts payable, accrued expenses and other current liabilities	-1,113,460	976,323
Net Cash Used In Operating Activities	-3,589,554	-981,929
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchases of computer equipment and furniture	-5,742	0
Net Cash Used In Investing Activities	-5,742	0
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from the issuance of convertible notes, net	0	311,500
Proceeds from issuance of common stock upon exercise of warrants	2,363,480	0
Proceeds from the issuance of common stock, net	0	1,240,010
Net Cash Provided By Financing Activities	2,363,480	1,551,510
Net Increase (Decrease) In Cash And Cash Equivalents	-1,231,816	569,581
Cash and Cash Equivalents, Beginning of Period	19,672,177	0
Cash and Cash Equivalents, End of Period	18,440,361	569,581
Supplemental Disclosures of Cash Flow Information:	'	'
Common stock issued upon conversion of accrued interest and penalty	0	9,267,641
Common stock issued upon conversion of preferred stock	$233	$0

1_GENERAL_ORGANIZATION_AND_BUS

1. GENERAL ORGANIZATION AND BUSINESS	6 Months Ended
	Jun. 30, 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.
	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 and six months ended June 30, 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.
	As the Company has not yet commenced any revenue-generating operations, does not have any cash flows from operations, and is dependent on debt and equity funding to finance its operations, the Company was considered a development stage company through March 31, 2014.
	In June 2014, as discussed in Note, 2, the Financial Accounting Standards Board issued new guidance that removed all incremental financial reporting requirements from generally accepted accounting principles in the United States for development stage entities.  The Company has adopted early this new guidance effective June 30, 2014, as a result of which all inception-to-date financial information and disclosures have been omitted from this report.
	Liquidity
	We are 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.
	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 $4,369,683 for the six months ended June 30, 2014 and used $3,589,554 of cash in our operating activities during the six months ended June 30, 2014.  As of June 30, 2014, we had $18,440,361 of cash or cash equivalents on hand, stockholders’ equity of $17,378,870 and had working capital of $17,363,099.
	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, the costs associated with establishing our new Tampa, Florida, research facility, 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 June 30, 2014, we believe that we have sufficient capital to fund our anticipated operating expenses for at least twelve months.
	On November 5, 2013, we completed a $23.3 million private placement of our securities to various institutional and individual accredited investors (the “Private Placement”).  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 June 30, 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 June 30, 2014 consist of options to acquire 868,750 shares of the Company’s common stock, warrants to acquire 11,427,764 shares of common stock, and preferred stock that can convert into 2,900,000 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 June 30, 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 grants stock options to employees and non-employees in non-capital raising transactions for as compensation for services rendered. The Company accounts for stock option grants 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 grants 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
	On June 10, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10 (ASU 2014-10), Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.  ASU 2014-10 eliminates the requirement to present inception-to-date information about income statement line items, cash flows, and equity transactions, and clarifies how entities should disclose the risks and uncertainties related to their activities.  ASU 2014-10 also eliminates an exception provided to development stage entities in Consolidations (ASC Topic 810) for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk.  The presentation and disclosure requirements in Topic 915 are no longer required for interim and annual reporting periods beginning after December 15, 2014.  The revised consolidation standards will take effect in annual periods beginning after December 15, 2015, however, early adoption is permitted.  The Company adopted the provisions of ASU 2014-10 for this quarterly report on Form 10-Q for the six-months ended June 30, 2014.
	On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers.  ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition.  ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract.  The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.  ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted.  Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption.  Management has not determined the effect of adopting ASU 2014-09 on our ongoing financial reporting.
	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.
	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_STOCKHOLDERS_EQUITY

3. STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
3. 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 for services with vesting terms
	During the six month period ended June 30, 2014, the Company granted 355,000 shares of its restricted common stock to three of its employees in accordance with the terms of their employment agreements. The 355,000 shares vest over a period of three years.  As these shares were granted to employees, the Company calculated the aggregate fair value of these 355,000 shares based on the trading prices of the Company’s stock at their grant dates and determined it to be approximately $3,443,000. The allocable portion of the fair value of the stock that vested during the current period ended June 30, 2014 amounted to $335,000 and was recognized as expense during the current period then ended.
	During the six month period ended June 30, 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) 40,000 shares shall vest on September 30, 2014; (ii) 60,000 shares shall vest on September 30, 2015, and (iii) 100,000 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 June 30, 2014 and determined it to be approximately $256,000. The allocable portion of the fair value of the stock that vested during the current period ended June 30, 2014 amounted to $88,155 and was recognized as consulting expense during the current period then ended.
	Shares of restricted stock granted above are subject to forfeiture to the Company or other restrictions that will lapse in accordance with a vesting schedule to be determined by our Board.  In the event a recipient’s employment or service with the Company terminates, any or all of the shares of common stock held by such recipient that have not vested as of the date of termination under the terms of the restricted stock agreement are forfeited to the Company in accordance with such restricted grant agreement.
	Rights to acquire shares of common stock under the restricted stock purchase or grant agreement shall be transferable by the recipient only upon such terms and conditions as are set forth in the restricted stock agreement, as the Board shall determine in its discretion, so long as shares of common stock awarded under the restricted stock agreement remains subject to the terms of the such agreement.
	Issuance of common stock upon conversion of preferred stock
	During the six month period ended June 30, 2014, the Company issued 5,600,000 shares of common stock upon the conversion of 11,200 shares of Series A Convertible Preferred Stock. The conversion shares issued was determined on a formula basis of 500 common shares for each Series A Convertible Preferred Stock held.

4_STOCK_OPTIONS_AND_WARRANTS

4. STOCK OPTIONS AND WARRANTS

6 Months Ended

Jun. 30, 2014

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

'

4. 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 non-qualified options, restricted stock and the 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, restricted stock 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 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, 2014, 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, 2013

278,750

$

23.1

9.1 years

$

1,176,063

Granted

615,000

6.79

6.8 years

Exercised

-

Expired/Forfeited/Cancelled

(25,000

)

125

7.3 years

Outstanding at June 30, 2014

868,750

$

8.64

7.4 years

$

425,013

Exercisable at June 30, 2014

183,750

$

15.89

7.0 years

$

89,895

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.

On May 15, 2014, the Company granted an option to purchase 75,000 shares of common stock to Michael Handelman, Chief Financial Officer, in accordance with the terms of Mr. Handelman’s new employment agreement. The stock options have an exercise price of $7.95 and will vest in three installments as follows: Options for the purchase of 25,000 shares vest on May 15, 2015; and the remaining shares vest annually over the next two years after May 15, 2015.

On June 13, 2014, the Company granted an option to purchase 180,000 shares of common stock to Laszlo Radvanyi, PhD, its newly appointed Chief Scientific Officer. The stock options have an exercise price of $6.51 and will vest in three installments as follows: Options for the purchase of 60,000 shares vest on June 13, 2015; and the remaining shares vest annually over the next two years after June 13, 2015.

The aggregate fair value of the options granted in the six months ended June 30, 2014 was $2,767,000. No options were granted in the six months ended June, 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

228%

Expected dividends

0

Expected average term (in years)

6.5

Risk free rate - average

1.88%

Forfeiture rate

0

During the three and six months ended June 30, 2014, the Company recorded compensation costs of $902,000 and $1,340,601, respectively, relating to the vesting of the stock options. During the three and six months ended June 30, 2013, the Company recorded compensation costs of $133,000 and $220,418, respectively, relating to the vesting of the stock options. As of June 30, 2014, the aggregate value of unvested options was $4,178,000, which will continue to be amortized as compensation cost as the options vest over terms ranging from three months to three years, as applicable.

Warrants

A summary of the status of stock warrants at June 30, 2014, 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, 2013

12,373,156

$

2.51

4.11 years

$

31,056,390

Issued

-

Exercised

-945,392

2.5

Expired

-

Outstanding and exercisable at June 30, 2014

11,427,764

$

2.51

4.35 years

$

28,692,910

The warrants outstanding at the beginning of the year were granted in the November 2013 Private Placement and have an exercise price of $2.50 per share. In the six months ended June 30, 3014, the Company received $2,363,480 in cash from the exercise of warrants for the purchase of 945,392 shares of its common stock.

5_LICENSE_AND_COMMITMENTS

5. LICENSE AND COMMITMENTS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
5. 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 pay the NCI $250,000 per quarter ($1,000,000 per year) under the CRADA for Dr. Rosenberg to use for technical, statistical, and administrative support, and research activities, as well as to pay for supplies and travel expenses.  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, 2014 and 2013, the Company recognized $500,000 and $500,000, respectively, of CRADA expenses, which were recorded as part of research and development expenses in the condensed statement of operations.  As of June 30, 2014, $250,000 of these CRADA expenses were outstanding and included in the balance of accrued expenses on the accompanying condensed balance sheet.
	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 the Company 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 six months ended June 30, 2014 and 2013, 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.  As of June 30, 2014, the Company is current with all of its payment obligations under the License Agreement.
	The Company has entered into a Manufacturing Services Agreement with Lonza Walkersville, Inc. (Lonza) to develop and operate a commercial-scale manufacturing process for the TIL therapy.  In June 2014 we commenced transferring our TIL manufacturing protocols from the NCI to Lonza, and we engaged Lonza to commence setting up a centralized TIL manufacturing center for our planned multicenter, pivotal clinical trials.

6_RELATED_PARTY_TRANSACTIONS

6. RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
6. RELATED PARTY TRANSACTIONS	'
	Accrued Payroll and Fees
	As of June 30, 2014 and December 31, 2013, the Company had accrued the unpaid salaries of its officers and fees due to former members of the Company’s board of directors in the amount of $239,356 and $338,731, respectively, which is included in accrued expenses in the accompanying condensed balance sheet.

7_LEGAL_PROCEEDINGS

7. LEGAL PROCEEDINGS	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
7. LEGAL PROCEEDINGS	'
	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 (now known as “In the Matter of Certain Stock Promotions”) and that the subpoena was issued to the Company as part of the foregoing investigation.  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.
	Theorem Group, LLC vs. Lion Biotechnologies, Inc. (Case No.:  BC550529).  On July 2, 2014, Theorem Group, LLC filed a complaint for damages against the Company in the Superior Court of the State of California, Los Angeles County.  Prior to relocating its offices to its current location in Woodland Hills, California, the Company subleased its offices from Theorem Group, LLC.  In addition, Theorem Group, LLC occasionally made loans to the Company.  In its complaint, Theorem Group, LLC alleges that the Company breached the sublease and owes Theorem Group, LLC $138,719 under the sublease for unpaid rent and other expenses.  In addition, Theorem Group, LLC alleges that it made a $10,000 loan to the Company on March 18, 2013, and that Theorem Group, LLC and the Company orally agreed that Theorem Group, LLC could convert the $10,000 loan in the May 2013 Restructuring.  Theorem Group, LLC alleges that the $10,000 loan was neither repaid nor converted in the Restructuring and, as a result, that Theorem Group, LLC is entitled to damages of $150,000.  The foregoing complaint was served on July 23, 2014, and the Company currently is evaluating the merits of the foregoing allegations.
	There are no other pending legal proceedings to which the Company is a party or of which its property is the subject.

8_SUBSEQUENT_EVENTS

8. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2014
Subsequent Events [Abstract]	'
8. SUBSEQUENT EVENTS	'
	Tampa Lease
	On July 18, 2014, the Company entered into a five -year lease with the University of South Florida Research Foundation for an approximately 5,200 square foot facility located at 3802 Spectrum Boulevard Tampa, Florida 33612.  The new facility is part of the University of South Florida research park and will be used as the Company’s research and development facilities.  The new space currently is being developed and furbished for the Company’s research needs and is expected to be available for use by the end of October 2014.  The term of the lease shall commence on the earlier of the date when the Company takes possession of the premises or the date that the tenant improvements are substantially completed.  The monthly base rent for this facility during the first year of the lease is $10,443, which amount will increase by 3% annually. The Company has the option to extend the lease term of this facility for an additional five-year period on the same terms and conditions, except that the base rent for the renewal term will be increased in accordance with the applicable consumer price index.
	Exclusive License Agreement
	On July 21, 2014, the Company entered into an Exclusive License Agreement (the “Moffitt License Agreement”), effective as of June 28, 2014, with the H. Lee Moffitt Cancer Center and Research Institute, Inc. (“Moffitt”) under which the Company received an exclusive, world-wide license to Moffitt’s rights in and to two patent-pending technologies related to methods for improving tumor-infiltrating lymphocytes for adoptive cell therapy.  Unless earlier terminated, the term of the license extends until the earlier of the expiration of the last patent related to the licensed technology or 20 years after the effective date of the license agreement.
	Pursuant to the Moffitt License Agreement, the Company agreed to pay an upfront licensing fee, payable within 30 days of the effective date of the Moffitt License Agreement, and a patent issuance fee payable upon the issuance of the first U.S. patent covering the subject technology. In addition, the Company agreed to pay milestone license fees upon completion of specified milestones, customary royalties based on a specified percentage of net sales (which percentage is in the low single digits) and sublicensing payments, as applicable, and annual minimum royalties beginning with the first sale of products based on the licensed technologies, which minimum royalties will be credited against the percentage royalty payments otherwise payable in that year.  The Company will also be responsible for all costs associated with the preparation, filing, maintenance and prosecution of the patent applications and patents covered by the Moffitt License Agreement related to the treatment of any cancers in the United States, Europe and Japan and in other countries selected that the Company and Moffitt agreed to.

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 June 30, 2014 consist of options to acquire 868,750 shares of the Company’s common stock, warrants to acquire 11,427,764 shares of common stock, and preferred stock that can convert into 2,900,000 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 June 30, 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 grants stock options to employees and non-employees in non-capital raising transactions for as compensation for services rendered. The Company accounts for stock option grants 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 grants 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	'
	On June 10, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10 (ASU 2014-10), Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.  ASU 2014-10 eliminates the requirement to present inception-to-date information about income statement line items, cash flows, and equity transactions, and clarifies how entities should disclose the risks and uncertainties related to their activities.  ASU 2014-10 also eliminates an exception provided to development stage entities in Consolidations (ASC Topic 810) for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk.  The presentation and disclosure requirements in Topic 915 are no longer required for interim and annual reporting periods beginning after December 15, 2014.  The revised consolidation standards will take effect in annual periods beginning after December 15, 2015, however, early adoption is permitted.  The Company adopted the provisions of ASU 2014-10 for this quarterly report on Form 10-Q for the six-months ended June 30, 2014.
	On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers.  ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition.  ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract.  The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.  ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted.  Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption.  Management has not determined the effect of adopting ASU 2014-09 on our ongoing financial reporting.
	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.
	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.

4_STOCK_OPTIONS_AND_WARRANT_Ta

4. STOCK OPTIONS AND WARRANT (Tables)

6 Months Ended

Jun. 30, 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

615,000

6.79

6.8 years

Exercised

-

Expired/Forfeited/Cancelled

(25,000

)

125

7.3 years

Outstanding at June 30, 2014

868,750

$

8.64

7.4 years

$

425,013

Exercisable at June 30, 2014

183,750

$

15.89

7.0 years

$

89,895

Black-Scholes option pricing model

'

Expected volatility

228%

Expected dividends

0

Expected average term (in years)

6.5

Risk free rate - average

1.88%

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

$

31,056,390

Issued

-

Exercised

-945,392

2.5

Expired

-

Outstanding and exercisable at June 30, 2014

11,427,764

$

2.51

4.35 years

$

28,692,910

1_GENERAL_ORGANIZATION_AND_BUS1

1. GENERAL ORGANIZATION AND BUSINESS (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
General Organization And Business Details Narrative	'	'	'	'	'
Net loss	$2,110,169	$3,429,255	$4,369,683	$4,475,784	'
Cash used in operating activities	'	'	3,589,554	'	'
Cash and cash equivalents	18,440,361	'	18,440,361	'	19,672,177
Working capital	$17,363,099	'	$17,363,099	'	'

4_STOCK_OPTIONS_AND_WARRANTS_D

4. STOCK OPTIONS AND WARRANTS (Details) (Option [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Option [Member]	'
Shares Under Option	'
Outstanding beginning balance	278,750
Granted	615,000
Exercised	0
Expired/Forfeited	-25,000
Outstanding ending balance	868,750
Exercisable ending balance	183,750
Weighted Average Exercise Price	'
Outstanding beginning balance	$23.10
Granted	$6.79
Expired	$125
Outstanding ending balance	$8.64
Exercisable ending balance	$15.89
Weighted Average Remaining Contractual Life	'
Outstanding beginning balance	'9 years 1 month 6 days
Granted	'6 years 9 months 18 days
Expired/Forfeited	'7 years 3 months 18 days
Outstanding ending balance	'7 years 4 months 24 days
Exercisable ending balance	'7 years
Aggregate Intrinsic Value	'
Outstanding beginning balance	$1,176,063
Outstanding ending balance	425,013
Exercisable ending balance	$89,895

4_STOCK_OPTIONS_AND_WARRANTS_D1

4. STOCK OPTIONS AND WARRANTS (Details 1)	6 Months Ended
	Jun. 30, 2014
Stock Options And Warrant Tables	'
Expected volatility	228.00%
Expected dividends	0.00%
Expected average term (in years)	'6 years 6 months
Risk free rate - average	1.88%
Forfeiture rate	0.00%

4_STOCK_OPTIONS_AND_WARRANTS_D2

4. STOCK OPTIONS AND WARRANTS (Details 2) (Warrant [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Warrant [Member]	'
Shares Under Warrants	'
Outstanding beginning balance	12,373,156
Issued	0
Exercised	-945,392
Expired	0
Outstanding ending balance	11,427,764
Exercisable ending balance	11,427,764
Weighted Average Exercise Price	'
Outstanding beginning balance	$2.51
Exercised	$2.50
Outstanding ending balance	$2.51
Exercisable ending balance	$2.51
Weighted Average Remaining Contractual Life	'
Outstanding beginning balance	'4 years 1 month 10 days
Outstanding ending balance	'4 years 4 months 6 days
Aggregate Intrinsic Value	'
Outstanding beginning balance	$31,056,390
Outstanding ending balance	28,692,910
Exercisable ending balance	$28,692,910

6_RELATED_PARTY_TRANSACTIONS_D

6. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Related Party Transactions Details Narrative	'	'
Due to related parties	$239,356	$338,731