Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Entity Registrant Name | HEAT BIOLOGICS, INC. | |
Entity Central Index Key | 1,476,963 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 8,415,434 | |
Trading Symbol | HTBX |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 8,210,938 | $ 3,714,304 |
Investments, held to maturity (net) | 6,742,987 | 10,698,982 |
Prepaid expenses and other current assets | 986,264 | 863,227 |
Total Current Assets | 15,940,189 | 15,276,513 |
Property and Equipment, net | 467,999 | 445,534 |
Other Assets | ||
Restricted cash | 101,146 | 101,129 |
Deposits | 69,798 | 19,798 |
Related party receivable | 58,017 | 48,642 |
Deferred financing costs, net | 25,379 | 24,554 |
Total Other Assets | 254,340 | 194,123 |
Total Assets | 16,662,528 | 15,916,170 |
Current Liabilities | ||
Accounts payable | 936,361 | 1,367,426 |
Accrued expenses and other payables | 2,074,174 | 805,968 |
Current portion of long term debt | 2,053,859 | 397,465 |
Total Current Liabilities | 5,064,394 | 2,570,859 |
Long Term Liabilities | ||
Long term debt, net of discount and current portion | 2,831,787 | $ 2,314,124 |
Other long term liabilities | 12,228 | |
Total Liabilities | $ 7,908,409 | $ 4,884,983 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, $.0002 par value; 50,000,000 shares authorized, 8,415,434 and 6,492,622 shares issued and outstanding at September 30, 2015 (unaudited) and December 31, 2014, respectively | $ 1,365 | $ 982 |
Additional paid in capital | 48,038,935 | 35,894,823 |
Accumulated deficit | (37,943,582) | $ (24,135,447) |
Accumulated other comprehensive loss | (64,238) | |
Total Stockholders' Equity- Less Non-Controlling Interest | 10,032,480 | $ 11,760,358 |
Non-Controlling Interest | (1,278,361) | (729,171) |
Total Stockholders' Equity | 8,754,119 | 11,031,187 |
Total Liabilities and Stockholders' Equity | $ 16,662,528 | $ 15,916,170 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, par value per share | $ 0.0002 | $ 0.0002 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 8,415,434 | 6,492,622 |
Common stock, shares outstanding | 8,415,434 | 6,492,622 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating expenses: | ||||
Research and development | $ 677,151 | $ 1,025,442 | $ 1,767,942 | $ 2,425,404 |
Clinical and regulatory | 3,718,902 | 1,258,566 | 9,261,529 | 3,218,137 |
General and administrative | 947,392 | 832,101 | 3,150,394 | 2,844,883 |
Total operating expenses | 5,343,445 | 3,116,109 | 14,179,865 | 8,488,424 |
Loss from operations | (5,343,445) | (3,116,109) | (14,179,865) | (8,488,424) |
Non-operating (expenses) income | ||||
Interest expense | (108,834) | (8,138) | (257,339) | (8,138) |
Other income (expense) | 4,449 | (12,762) | 29,909 | (39,291) |
Interest income | 20,121 | 9,740 | 49,970 | 27,261 |
Total non-operating (expenses) income | (84,264) | (11,160) | (177,460) | (20,168) |
Net loss | (5,427,709) | (3,127,269) | (14,357,325) | (8,508,592) |
Net loss - non-controlling interest | (242,244) | (126,865) | (549,190) | (330,675) |
Net loss attributable to Heat Biologics, Inc. | $ (5,185,465) | $ (3,000,404) | $ (13,808,135) | $ (8,177,917) |
Net loss per share attributable to Heat Biologics, Inc.-basic and diluted | $ (0.62) | $ (0.46) | $ (1.75) | $ (1.27) |
Weighted-average number of common shares used in net loss per share attributable to common stockholders - basic and diluted | 8,408,376 | 6,469,272 | 7,880,637 | 6,445,129 |
Other comprehensive loss: | ||||
Net loss | $ (5,427,709) | $ (3,127,269) | $ (14,357,325) | $ (8,508,592) |
Unrealized loss on foreign currency translation | (27,244) | (64,238) | ||
Total other comprehensive loss | (5,454,953) | $ (3,127,269) | (14,421,563) | $ (8,508,592) |
Comprehensive loss attributable to non-controlling interest | (242,244) | (126,865) | (549,190) | (330,675) |
Comprehensive loss | $ (5,212,709) | $ (3,000,404) | $ (13,872,373) | $ (8,177,917) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) | Total | Common Stock [Member] | APIC [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Non-Controlling Interest [Member] |
Balance at Dec. 31, 2014 | $ 11,031,187 | $ 982 | $ 35,894,823 | $ (24,135,447) | $ (729,171) | |
March 2015 public offering, 1,886,000 shares net of underwriters discounts | $ 11,400,870 | $ 377 | $ 11,400,493 | |||
Cashless exercise of options, 6,812 shares | ||||||
Vesting of restricted stock, 30,000 shares | $ 6 | $ (6) | ||||
Stock based compensation | $ 1,046,086 | 1,046,086 | ||||
Stock issuance costs | (302,461) | $ (302,461) | ||||
Accumulated other comprehensive loss | (64,238) | $ (64,238) | ||||
Net loss | (14,357,325) | $ (13,808,135) | $ (549,190) | |||
Balance at Sep. 30, 2015 | $ 8,754,119 | $ 1,365 | $ 48,038,935 | $ (37,943,582) | $ (64,238) | $ (1,278,361) |
Consolidated Statement of Stoc6
Consolidated Statement of Stockholders' Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2015shares | |
Exercise of options, shares | 10,272 |
Common Stock [Member] | |
March 2015 public offering, shares | 1,886,000 |
Exercise of options, shares | 6,812 |
Vesting of restricted stock, shares | 30,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net loss | $ (14,357,325) | $ (8,508,592) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 84,373 | 41,850 |
Amortization of debt issuance costs | 75,818 | 13,848 |
Amortization of bond premium | $ 102,618 | 137,897 |
Re-measurement of fair value of stock warrants liability | 7,263 | |
Stock based compensation | $ 1,046,086 | 722,358 |
Increase (decrease) in cash arising from changes in assets and liabilities: | ||
Related party receivable | (9,375) | (18,446) |
Prepaid expenses, and other current assets, and restricted cash | (157,440) | 318,275 |
Deposits | (50,000) | (10,478) |
Accounts payable | (385,161) | 28,561 |
Accrued expenses and other payables | 1,260,355 | $ (56,888) |
Other long term liabilities | $ 12,228 | |
Accrued interest | $ (25,364) | |
Net Cash Used in Operating Activities | $ (12,377,823) | (7,349,716) |
Cash Flows from Investing Activities | ||
Proceeds from maturities of short term investments | 14,943,468 | 13,827,773 |
Purchases of short term investments | (11,090,091) | (8,783,623) |
Purchases of property and equipment | (106,838) | (452,444) |
Net Cash Provided by Investing Activities | 3,746,539 | $ 4,591,706 |
Cash Flows from Financing Activities | ||
Proceeds from March 2015 public offering, net of underwriting discounts | $ 11,400,870 | |
Proceeds from the exercise of stock options | $ 37,719 | |
Proceeds from issuance of long term debt | $ 2,242,575 | $ 1,435,283 |
Payments on long term debt | (145,161) | |
Stock issuance costs | (302,461) | |
Net Cash Provided by Financing Activities | 13,195,823 | $ 1,473,002 |
Effect of exchange rate changes on cash and cash equivalents | (67,905) | |
Net Increase in Cash and Cash Equivalents | 4,496,634 | $ (1,285,008) |
Cash and Cash Equivalents - Beginning of Period | 3,714,304 | 4,566,992 |
Cash and Cash Equivalents - End of Period | 8,210,938 | 3,281,984 |
Supplemental Disclosure for Cash Flow Information | ||
Interest paid | $ 257,339 | 8,138 |
Cashless exercise of stock warrants | $ 452,874 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial reporting. However, certain information or footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). In the opinion of the Company's management, the unaudited consolidated financial statements in this Quarterly Report on Form 10-Q include all normal and recurring adjustments necessary for the fair statement of the results for the interim periods presented. The results for the three months and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2015. The consolidated financial statements as of and for the three and nine months ended September 30, 2015 and 2014 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of December 31, 2014 is derived from the audited consolidated financial statements as of that date. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 27, 2015 (the 2014 Annual Report). The accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2015 and 2014 include the accounts of Heat Biologics, Inc. and its subsidiaries, Heat Biologics I, Inc. (Heat I), Heat Biologics III, Inc. (Heat III), Heat Biologics IV, Inc. (Heat IV), Heat Biologics GmbH and Heat Biologics Australia Pty Ltd. The functional currency of the entities located outside the United States of America (the foreign entities) is the applicable local currency. Assets and liabilities of the foreign entities are translated at period-end exchange rates. Statement of operations accounts are translated at the average exchange rate during the period. The effects of foreign currency translation adjustments are included in other comprehensive loss, which is a component of accumulated other comprehensive loss in stockholders' equity. All significant intercompany accounts and transactions have been eliminated in consolidation. At December 31, 2014 and September 30, 2015, Heat Biologics, Inc. held a 92.5 The accompanying consolidated financial statements have been prepared on a going concern basis. The Company has an accumulated a deficit of approximately $ 37.9 14.4 In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In August 2014, the FASB issued ASU 2014-15, Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments The carrying amount of certain of the Company's financial instruments, including cash and cash equivalents, restricted cash, accounts payable and accrued expenses and other payables approximate fair value due to their short maturities. The carrying value of debt approximates fair value because the interest rate under the obligation approximates market rates of interest available to the Company for similar instruments. As a basis for determining the fair value of certain of the Company's financial instruments, the Company utilizes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level I Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level II Observable inputs, other than Level I prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level III Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. The majority of the Company's cash equivalents and investments, are classified within Level II of the fair value hierarchy. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Investments | 3. Investments Investments in certain securities may be classified into three categories: Held-to-maturity - Trading securities - Available-for-sale - The Company reassesses the appropriateness of the classification of its investments at the end of each reporting period. The Company has determined that its debt securities should be classified as held-to-maturity as of September 30, 2015 and December 31, 2014. This classification was based upon management's determination that it has the positive intent and ability to hold the securities until their maturity dates, as the underlying cash invested in these securities is not required for current operations. Investments consist of short-term FDIC insured certificates of deposit, tri-party repurchase agreement (repo) collateralized by U.S. Treasuries and agencies, and corporate notes and bonds rated A and above carried at amortized cost using the effective interest method. The following table summarizes information about short term investments at December 31, 2014 and September 30, 2015, respectively: Amortized Gross Estimated December 31, 2014 Certificates of deposit, corporate notes and bonds $ 10,698,982 $ (2,209 ) $ 10,696,773 September 30, 2015 Certificates of deposit, tri-party repurchase agreement, corporate notes and bonds $ 6,742,987 $ (2,814 ) $ 6,740,173 As of September 30, 2015, the estimated fair value of the investments was less than the amortized cost. Because management has the positive intention and ability to hold the investments until their maturity dates, these unrealized losses were not recorded in the accompanying unaudited consolidated financial statements. The maturities of held-to-maturity investments at September 30, 2015 were as follows: Less than Total Certificates of deposit, tri-party repurchase agreement, corporate notes and bonds $ 6,742,987 $ 6,742,987 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method, over the estimated useful lives, ranging generally from five seven Property and equipment consisted of the following: September 30, 2015 December 31, Furniture and fixtures $ 55,275 $ 50,391 Computers 32,485 24,174 Lab equipment 541,066 447,423 Total 628,826 521,988 Accumulated depreciation (160,827 ) (76,454 ) Property and equipment, net $ 467,999 $ 445,534 Depreciation expense was $ 30,436 22,952 84,373 41,850 |
Accrued Expenses and other paya
Accrued Expenses and other payables | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses and other payables [Abstract] | |
Accrued Expenses and other payables | 5. Accrued Expenses and other payables Accrued expenses and other payables consisted of the following: September 30, December 31, Patent fees $ 35,000 $ 40,000 Deferred rent 54,957 51,155 Compensation and related benefits 92,233 519,092 Accrued professional services fees 836,333 Accrued clinical trial expense 1,055,651 195,721 $ 2,074,174 $ 805,968 |
Debt Issuance Costs
Debt Issuance Costs | 9 Months Ended |
Sep. 30, 2015 | |
Debt Issuance Costs [Abstract] | |
Debt Issuance Costs | 6. Debt Issuance Costs During 2014, the Company recorded $ 323,021 27,500 42 7,425 Total amortization expense for the debt issuance costs was $ 75,818 13,848 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2015 | |
Notes Payable [Abstract] | |
Notes Payable | 7. Notes Payable Square 1 Bank Loan In August 2014, the Company entered into a secured loan with Square 1 Bank (Loan). The Loan provides the Company with a term loan in the aggregate principal amount not to exceed $ 7,500,000 1,500,000 1,500,000 2,250,000 2,250,000 1,500,000 2,250,000 5,250,000 The Loan accrues interest monthly at an interest rate at the greater of prime rate plus 3.05 6.30 145,161 0 83,090 181,520 0 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation Restricted Stock During the three and nine month period ended September 30, 2015, the Company recognized $ 13,950 103,950 no Common Stock Warrants On March 10, 2011, the Company issued warrants to purchase 32,610 0.48 10 125,000 12.50 five 17,392 0.48 125,000 12.50 Stock Options The following is a summary of the stock option activity for the nine months ended September 30, 2015: Shares Weighted Average Exercise Price Outstanding, December 31, 2014 1,018,590 $ 5.04 Granted 277,875 $ 6.09 Exercised (10,272 ) $ 1.97 Forfeited (179,298 ) $ 6.50 Outstanding, September 30, 2015 1,106,895 $ 5.10 The weighted average grant-date fair value of stock options granted during the nine months ended September 30, 2015 was $ 3.33 Dividend yield 0.0 % Expected volatility 83.62 % Risk-free interest rate 1.63 % Expected lives (years) 6.0 The risk-free interest rate is based on U.S. Treasury interest rates at the time of the grant whose term is consistent with the expected life of the stock options. The Company used an average historical stock price volatility based on an analysis of reported data for a peer group of comparable companies that have issued stock options with substantially similar terms, as the Company did not have sufficient trading history for its common stock. Expected term represents the period that the Company's stock option grants are expected to be outstanding. The Company elected to utilize the simplified method to estimate the expected term. Under this approach, the weighted-average expected life is presumed to be the average of the vesting term and the contractual term of the option. Expected dividend yield was considered to be 0% in the option pricing formula since the Company had not paid any dividends and had no plans to do so in the future. The forfeiture rate was considered to be none as the options vest on a monthly basis. The Company recognized $ 245,289 224,586 942,136 722,358 The following table summarizes information about stock options outstanding at September 30, 2015: Options Outstanding Options Vested and Exercisable Balance as of 9/30/2015 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2015 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 1,106,895 7.4 $ 5.10 649,421 6.2 $ 3.89 As of September 30, 2015, the unrecognized stock-based compensation expense related to unvested stock options was $ 3,114,452 15.8 |
Financing
Financing | 9 Months Ended |
Sep. 30, 2015 | |
Financing [Abstract] | |
Financing | 9. Financing Public Offering On March 10, 2015, the Company entered into an Underwriting Agreement (the Underwriting Agreement) with Aegis Capital Corp. (Aegis), as representative of the several underwriters named therein (the Underwriters), providing for the offer and sale in a firm commitment underwritten public offering (the Offering) of 1,640,000 246,000 6.50 11.1 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | 10. Net Loss Per Share Basic and diluted net loss per common share is calculated by dividing net loss applicable to Heat Biologics, Inc. by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. The Company's potentially dilutive shares, which include outstanding stock options, and warrants are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following table reconciles net loss to net loss attributable to Heat Biologics, Inc.: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net loss $ (5,427,709 ) $ (3,127,269 ) $ (14,357,325 ) $ (8,508,592 ) Net loss: Non-controlling interest (242,244 ) (126,865 ) (549,190 ) (330,675 ) Net loss attributable to Heat Biologics, Inc. $ (5,185,465 ) $ (3,000,404 ) $ (13,808,135 ) $ (8,177,917 ) Weighted-average number of common shares used in net loss per share attributable to Heat Biologics, Inc.basic and diluted 8,408,376 6,469,272 7,880,637 6,445,129 Net loss per share attributable to Heat Biologics, Inc.basic and diluted $ (0.62 ) $ (0.46 ) $ (1.75 ) $ (1.27 ) The following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect: For the Nine Months Ended September 30, 2015 2014 Outstanding stock options 1,106,895 836,961 Common stock warrants 17,392 17,392 Underwriters warrants 125,000 125,000 |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax [Abstract] | |
Income Tax | 11. Income Tax Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In accordance with FASB ASC 740, Accounting for Income Taxes |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | The accompanying unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial reporting. However, certain information or footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). In the opinion of the Company's management, the unaudited consolidated financial statements in this Quarterly Report on Form 10-Q include all normal and recurring adjustments necessary for the fair statement of the results for the interim periods presented. The results for the three months and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2015. The consolidated financial statements as of and for the three and nine months ended September 30, 2015 and 2014 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of December 31, 2014 is derived from the audited consolidated financial statements as of that date. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 27, 2015 (the 2014 Annual Report). |
Principles of Consolidation | The accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2015 and 2014 include the accounts of Heat Biologics, Inc. and its subsidiaries, Heat Biologics I, Inc. (Heat I), Heat Biologics III, Inc. (Heat III), Heat Biologics IV, Inc. (Heat IV), Heat Biologics GmbH and Heat Biologics Australia Pty Ltd. The functional currency of the entities located outside the United States of America (the foreign entities) is the applicable local currency. Assets and liabilities of the foreign entities are translated at period-end exchange rates. Statement of operations accounts are translated at the average exchange rate during the period. The effects of foreign currency translation adjustments are included in other comprehensive loss, which is a component of accumulated other comprehensive loss in stockholders' equity. All significant intercompany accounts and transactions have been eliminated in consolidation. At December 31, 2014 and September 30, 2015, Heat Biologics, Inc. held a 92.5 The accompanying consolidated financial statements have been prepared on a going concern basis. The Company has an accumulated a deficit of approximately $ 37.9 14.4 In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In August 2014, the FASB issued ASU 2014-15, Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Schedule of Held-To-Maturity Investments Estimated Fair Value of Investments | Amortized Gross Estimated December 31, 2014 Certificates of deposit, corporate notes and bonds $ 10,698,982 $ (2,209 ) $ 10,696,773 September 30, 2015 Certificates of deposit, tri-party repurchase agreement, corporate notes and bonds $ 6,742,987 $ (2,814 ) $ 6,740,173 |
Schedule of Maturities of Held-To-Maturity Investments | Less than Total Certificates of deposit, tri-party repurchase agreement, corporate notes and bonds $ 6,742,987 $ 6,742,987 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | September 30, 2015 December 31, Furniture and fixtures $ 55,275 $ 50,391 Computers 32,485 24,174 Lab equipment 541,066 447,423 Total 628,826 521,988 Accumulated depreciation (160,827 ) (76,454 ) Property and equipment, net $ 467,999 $ 445,534 |
Accrued Expenses and other pa22
Accrued Expenses and other payables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses and other payables [Abstract] | |
Schedule of Accrued Expenses and other payables | September 30, December 31, Patent fees $ 35,000 $ 40,000 Deferred rent 54,957 51,155 Compensation and related benefits 92,233 519,092 Accrued professional services fees 836,333 Accrued clinical trial expense 1,055,651 195,721 $ 2,074,174 $ 805,968 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock Option Activity | Shares Weighted Average Exercise Price Outstanding, December 31, 2014 1,018,590 $ 5.04 Granted 277,875 $ 6.09 Exercised (10,272 ) $ 1.97 Forfeited (179,298 ) $ 6.50 Outstanding, September 30, 2015 1,106,895 $ 5.10 |
Schedule of Stock Option Valuation Assumptions | Dividend yield 0.0 % Expected volatility 83.62 % Risk-free interest rate 1.63 % Expected lives (years) 6.0 |
Schedule of Options Outstanding, Vested and Exercisable | Options Outstanding Options Vested and Exercisable Balance as of 9/30/2015 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2015 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 1,106,895 7.4 $ 5.10 649,421 6.2 $ 3.89 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Net Loss Per Share [Abstract] | |
Schedule of Net Loss Per Share | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net loss $ (5,427,709 ) $ (3,127,269 ) $ (14,357,325 ) $ (8,508,592 ) Net loss: Non-controlling interest (242,244 ) (126,865 ) (549,190 ) (330,675 ) Net loss attributable to Heat Biologics, Inc. $ (5,185,465 ) $ (3,000,404 ) $ (13,808,135 ) $ (8,177,917 ) Weighted-average number of common shares used in net loss per share attributable to Heat Biologics, Inc.basic and diluted 8,408,376 6,469,272 7,880,637 6,445,129 Net loss per share attributable to Heat Biologics, Inc.basic and diluted $ (0.62 ) $ (0.46 ) $ (1.75 ) $ (1.27 ) |
Schedule of Potentially Dilutive Securities | For the Nine Months Ended September 30, 2015 2014 Outstanding stock options 1,106,895 836,961 Common stock warrants 17,392 17,392 Underwriters warrants 125,000 125,000 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||||
Accumulated deficit | $ (37,943,582) | $ (37,943,582) | $ (24,135,447) | ||
Net loss | $ (5,427,709) | $ (3,127,269) | $ (14,357,325) | $ (8,508,592) | |
Heat Biologics I, Inc. [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest in subsidiary | 92.50% | 92.50% | 92.50% |
Investments (Schedule of Held-T
Investments (Schedule of Held-To-Maturity Investments) (Details) - Certificates of deposit, tri-party repurchase agreement, corporate notes and bonds [Member] - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized Cost | $ 6,742,987 | $ 10,698,982 |
Gross Unrealized (Losses) | (2,814) | (2,209) |
Estimated Fair Value | 6,740,173 | $ 10,696,773 |
Less than 1 year | 6,742,987 | |
Total | $ 6,742,987 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Total | $ 628,826 | $ 628,826 | $ 521,988 | ||
Accumulated depreciation | (160,827) | (160,827) | (76,454) | ||
Property and equipment, net | 467,999 | 467,999 | 445,534 | ||
Depreciation expense | 30,436 | $ 22,952 | $ 84,373 | $ 41,850 | |
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 5 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 7 years | ||||
Furniture and fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 55,275 | $ 55,275 | 50,391 | ||
Computers [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 32,485 | 32,485 | 24,174 | ||
Lab equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | $ 541,066 | $ 541,066 | $ 447,423 |
Accrued Expenses and other pa28
Accrued Expenses and other payables (Schedule of Accrued Expenses) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued Expenses and other payables [Abstract] | ||
Patent fees | $ 35,000 | $ 40,000 |
Deferred rent | 54,957 | 51,155 |
Compensation and related benefits | 92,233 | $ 519,092 |
Accrued professional services fees | 836,333 | |
Accrued clinical trial expense | 1,055,651 | $ 195,721 |
Accrued expenses | $ 2,074,174 | $ 805,968 |
Debt Issuance Costs (Narrative)
Debt Issuance Costs (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 75,818 | $ 13,848 | |
Secured Loan - Square 1 Bank [Member] | |||
Debt Instrument [Line Items] | |||
Deferred financing cost | $ 7,425 | $ 27,500 | |
Debt Instrument, Term | 42 months | ||
Secured Loan - Square 1 Bank [Member] | Warrant [Member] | |||
Debt Instrument [Line Items] | |||
Debt discount | $ 323,021 |
Notes Payable (Square 1 Bank Lo
Notes Payable (Square 1 Bank Loan) (Details) - Secured Loan - Square 1 Bank [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Debt instrument, amount outstanding | $ 5,250,000 | $ 5,250,000 | |||
Debt instrument, minimum interest rate | 3.05% | ||||
Debt instrument, maximum interest rate | 6.30% | ||||
Repayment of principal made during period | 145,161 | $ 145,161 | $ 0 | $ 0 | |
Interest paid during period | 83,090 | $ 0 | 181,520 | $ 0 | |
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 7,500,000 | ||||
Tranche 1 Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 1,500,000 | ||||
Debt instrument, amount outstanding | 1,500,000 | 1,500,000 | |||
Tranche 2 Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 1,500,000 | ||||
Debt instrument, amount outstanding | 1,500,000 | 1,500,000 | |||
Tranche 3 Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 2,250,000 | ||||
Debt instrument, amount outstanding | $ 2,250,000 | $ 2,250,000 | |||
Tranche 4 Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 2,250,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation | $ 1,046,086 | $ 722,358 | |||||
Granted | 277,875 | ||||||
Shares outstanding | 1,106,895 | 1,106,895 | 1,018,590 | ||||
Warrants to purchase shares of common stock issuable at $0.48 per share [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price of warrants | $ 0.48 | $ 0.48 | |||||
Warrants to purchase shares of common stock | 17,392 | 17,392 | |||||
Warrants to purchase shares of common stock issuable at $12.50 per share [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price of warrants | $ 12.50 | $ 12.50 | |||||
Warrants to purchase shares of common stock | 125,000 | 125,000 | |||||
Common stock warrants [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Warrants issued | 125,000 | 32,610 | |||||
Exercise price of warrants | $ 12.50 | $ 0.48 | |||||
Expiration term | 5 years | 10 years | |||||
Stock Option Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation | $ 245,289 | $ 224,586 | $ 942,136 | $ 722,358 | |||
Non-employees [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation | $ 13,950 | $ 103,950 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock Option Activity) (Details) | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Shares | |
Outstanding, beginning balance | shares | 1,018,590 |
Granted | shares | 277,875 |
Exercised | shares | (10,272) |
Forfeited | shares | (179,298) |
Outstanding, ending balance | shares | 1,106,895 |
Weighted Average Exercise Price | |
Outstanding, beginning balance | $ 5.04 |
Granted | 6.09 |
Exercised | 1.97 |
Forfeited | 6.50 |
Outstanding, ending balance | 5.10 |
Weighted average grant-date fair value of stock options granted | $ 3.33 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 4 months 24 days |
Options Exercisable, shares | shares | 649,421 |
Options Exercisable, Weighted Average Remaining Contractual Life | 6 years 2 months 12 days |
Options Exercisable, Weighted Average Exercise Price | $ 3.89 |
Options Vested, shares | shares | 649,421 |
Options Vested, Weighted Average Remaining Contractual Life | 6 years 2 months 12 days |
Options Vested, Weighted Average Exercise Price | $ 3.89 |
Unrecognized compensation expense related to stock options | $ | $ 3,114,452 |
Weighted average recognition period | 15 months 24 days |
Stock-Based Compensation (Sch33
Stock-Based Compensation (Schedule of Stock Option Valuation Assumptions) (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Expected volatility | 83.62% |
Risk-free interest rate | 1.63% |
Expected lives | 6 years |
Financing (Details)
Financing (Details) - USD ($) | Mar. 10, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Common stock issued | 1,640,000 | ||
Offering price | $ 6.50 | ||
Net proceeds from offering, , after deducting underwriting discounts, commissions, and other third party offering expenses | $ 11,100,000 | $ 11,400,870 | |
Over-allotments [Member] | |||
Common stock issued | 246,000 |
Net Loss Per Share (Schedule of
Net Loss Per Share (Schedule of Reconciliation of Net Loss to Net Loss Attributable to Heat Biologics, Inc.) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Loss Per Share [Abstract] | ||||
Net loss | $ (5,427,709) | $ (3,127,269) | $ (14,357,325) | $ (8,508,592) |
Net loss: Non-controlling interest | (242,244) | (126,865) | (549,190) | (330,675) |
Net loss attributable to Heat Biologics, Inc. | $ (5,185,465) | $ (3,000,404) | $ (13,808,135) | $ (8,177,917) |
Weighted-average number of common shares used in net loss per share attributable to common stockholders - basic and diluted | 8,408,376 | 6,469,272 | 7,880,637 | 6,445,129 |
Net loss per share attributable to Heat Biologics, Inc. - basic and diluted | $ (0.62) | $ (0.46) | $ (1.75) | $ (1.27) |
Net Loss Per Share (Schedule 36
Net Loss Per Share (Schedule of Antidilutive Securities) (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Outstanding stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 1,106,895 | 836,961 |
Common stock warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 17,392 | 17,392 |
Underwriters warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 125,000 | 125,000 |