Scorpius (SCPX) 10-Q 5 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	Apr. 28, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	HEAT BIOLOGICS, INC.
Entity File Number	001-35994
Entity Incorporation	DE
Title of 12(b) Security	Common Stock
Trading Symbol	HTBX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,253,234
Entity Central Index Key	0001476963
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 31,156,747	$ 10,931,890
Short-term investments	100,899,984	100,842,438
Accounts receivable	103,232	177,239
Prepaid expenses and other current assets	1,718,364	1,842,620
Total Current Assets	133,878,327	113,794,187
Property and Equipment, net	967,582	676,262
Other Assets
In-process R&D	5,866,000	5,866,000
Goodwill	1,452,338	1,452,338
Operating lease right-of-use asset	1,947,192	2,035,882
Finance lease right-of-use asset	217,469	247,194
Deposits	141,201	122,779
Total Other Assets	9,624,200	9,724,193
Total Assets	144,470,109	124,194,642
Current Liabilities
Accounts payable	792,545	1,051,764
Deferred revenue, current portion	93,529	603,717
Operating lease liability, current portion	285,927	278,753
Finance lease liability, current portion	109,757	108,127
Accrued expenses and other liabilities	1,764,385	1,614,534
Total Current Liabilities	3,046,143	3,656,895
Long Term Liabilities
Other long-term liabilities	43,754	36,243
Derivative warrant liability	42,481	33,779
Deferred tax liability	361,911	361,911
Deferred revenue, net of current portion	237,500	237,500
Operating lease liability, net of current portion	1,227,634	1,301,636
Financing lease liability, net of current portion	132,181	160,240
Contingent consideration, net of current portion	2,255,480	2,250,844
Contingent consideration, related party - net of current portion	663,035	661,671
Total Liabilities	8,010,119	8,700,719
Commitments and Contingencies
Stockholders' Equity
Common stock, $.0002 par value; 250,000,000 and 250,000,000 shares authorized, 25,137,410 and 22,592,500 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	5,027	4,519
Additional paid-in capital	275,618,780	247,048,349
Accumulated deficit	(138,179,663)	(130,647,485)
Accumulated other comprehensive loss	(147,788)	(166,056)
Total Stockholders' Equity - Heat Biologics, Inc.	137,296,356	116,239,327
Non-Controlling Interest	(836,366)	(745,404)
Total Stockholders' Equity	136,459,990	115,493,923
Total Liabilities and Stockholders' Equity	$ 144,470,109	$ 124,194,642

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.0002	$ 0.0002
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	25,137,410	22,592,500
Common stock, shares outstanding	25,137,410	22,592,500

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue:
Grant and contract revenue	$ 538,645	$ 901,880
Operating expenses:
Research and development	3,406,248	2,782,506
General and administrative	4,767,645	3,270,548
Goodwill impairment loss	0
Change in fair value of contingent consideration	6,000	(27,000)
Total operating expenses	8,179,893	6,026,054
Loss from operations	(7,641,248)	(5,124,174)
Change in fair value of warrant liability	(8,702)	(977,710)
Investor relations expense		(66,767)
Interest income	195,165	52,710
Other expense, net	(168,355)	(257,479)
Total non-operating income (loss)	18,108	(1,249,246)
Net loss before income taxes	(7,623,140)	(6,373,420)
Net loss	(7,623,140)	(6,373,420)
Net loss - non-controlling interest	(90,962)	(81,314)
Net loss attributable to Heat Biologics, Inc.	$ (7,532,178)	$ (6,292,106)
Net loss per share, basic and diluted	$ (0.31)	$ (0.77)
Weighted-average common shares outstanding, basic and diluted	24,199,916	8,183,154
Comprehensive loss:
Net loss	$ (7,623,140)	$ (6,373,420)
Unrealized gain on foreign currency translation	18,268	218,804
Total comprehensive loss	(7,604,872)	(6,154,616)
Comprehensive loss attributable to non-controlling interest	(90,962)	(81,314)
Comprehensive loss - Heat Biologics, Inc.	$ (7,513,910)	$ (6,073,302)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	APIC	Accumulated Deficit	Accumulated Other Comprehensive Gain (Loss)	Non-Controlling Interest	Total
Balance at Dec. 31, 2019	$ 965	$ 118,179,635	$ (104,597,748)	$ (11,250)	$ (413,752)	$ 13,157,850
January 2020 investment offering, net of underwriters discounts	571	4,105,577				4,106,148
Issued under ATM, net of issuance costs	371	11,427,864				11,428,235
Issuance of common stock from vesting of restricted stock awards	47	(47)
Stock issuance costs		(452,934)				(452,934)
Stock based compensation		948,192				948,192
Exercise of warrants	214	2,724,395				2,724,609
Exchange of warrants	64	773,266				773,330
Other comprehensive income (loss)				218,804		218,804
Net loss			(6,292,106)		(81,314)	(6,373,420)
Balance at Mar. 31, 2020	2,232	137,705,948	(110,889,854)	207,554	(495,066)	26,530,814
Balance at Dec. 31, 2020	4,519	247,048,349	(130,647,485)	(166,056)	(745,404)	115,493,923
Issued under ATM, net of issuance costs	420	26,303,862				26,304,282
Issuance of common stock from vesting of restricted stock awards	82	(82)
Stock issuance costs		(658,184)				(658,184)
Stock based compensation		2,897,580				2,897,580
Issuance of restricted stock	3	(3)
Exercise of options	6	27,255				27,261
Cancellation and payout of fractional shares	(3)	3
Other comprehensive income (loss)				18,268		18,268
Net loss			(7,532,178)		(90,962)	(7,623,140)
Balance at Mar. 31, 2021	$ 5,027	$ 275,618,780	$ (138,179,663)	$ (147,788)	$ (836,366)	$ 136,459,990

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities
Net loss	$ (7,623,140)	$ (6,373,420)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	101,803	67,599
Noncash lease expense	21,863	24,345
Noncash interest expense	3,743	4,412
Noncash investor relations expense		66,767
Stock-based compensation	2,897,580	948,192
Change in fair value of common stock warrants	8,702	977,710
Change in fair value of contingent consideration	6,000	(27,000)
Unrealized loss on investments	146,313	34,224
Increase (decrease) in cash arising from changes in assets and liabilities:
Accounts receivable	73,814	(110,054)
Prepaid expenses and other current assets	123,908	(120,946)
Accounts payable	(259,138)	(308,381)
Deferred revenue	(510,188)	(901,510)
Accrued expenses and other liabilities	169,665	(348,737)
Other long-term liabilities	7,511	14,216
Deposits	(18,422)	271,732
Net Cash Used in Operating Activities	(4,849,986)	(5,780,851)
Cash Flows from Investing Activities
Purchase of short-term investments	(38,202,476)	(26,384)
Sale of short-term investments	37,998,617
Purchase of property and equipment	(363,398)	(30,633)
Proceeds from disposal of property and equipment		2,168
Net Cash Used in Investing Activities	(567,257)	(54,849)
Cash Flows from Financing Activities
Proceeds from public offering of common stock and warrants, net of issuance costs		6,600,970
Proceeds from the issuance of common stock, net of underwriting discounts and commissions	26,304,282	11,428,235
Proceeds from exercise of stock options	27,261
Stock issuance costs	(658,184)	(452,934)
Repayments on principal of finance lease	(30,171)	(24,798)
Net Cash Provided by Financing Activities	25,643,188	17,551,473
Effect of exchange rate changes on cash and cash equivalents	(1,088)	(16,884)
Net Change in Cash and Cash Equivalents	20,224,857	11,698,889
Cash and Cash Equivalents – Beginning of Period	10,931,890	9,039,887
Cash and Cash Equivalents – End of Period	31,156,747	20,738,776
Supplemental Disclosure for Cash Flow Information:
Tax obligation for employee share-based transaction in accrued liabilities	$ 93,030
Finance lease right-of-use assets obtained with lease liabilities		173,822
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable		160,250
Allocation of proceeds from public offering to warrant liabilities		2,494,823
Cashless exercise of warrants classified as liabilities		2,724,609
Cashless exchange of warrants classified as liabilities		$ 773,330

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Polices	3 Months Ended
	Mar. 31, 2021
Basis of Presentation and Significant Accounting Policies
Basis of Presentation and Significant Accounting Policies	1. Basis of Presentation and Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information or footnote disclosures normally included in the annual 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, these financial statements 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 ended March 31, 2021 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2021. The consolidated financial statements as of and for the three months ended March 31, 2021 and 2020 are unaudited. The balance sheet as of December 31, 2020 is derived from the audited consolidated financial statements as of that date. These 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, 2020 filed with the SEC on March 25, 2021 (the “2020 Annual Report”). The accompanying unaudited consolidated financial statements as of and for the three months ended March 31, 2021 and 2020 include the accounts of Heat Biologics, Inc. (“the Company”), and its subsidiaries, Pelican Therapeutics, Inc. (“Pelican”), Heat Biologics I, Inc. (“Heat I”), Heat Biologics III, Inc. (“Heat III”), Heat Biologics IV, Inc. (“Heat IV”), Heat Biologics GmbH, Heat Biologics Australia Pty Ltd., Zolovax, Inc., Skunkworx Bio, Inc. (formerly known as Delphi Therapeutics, Inc.), Scorpion Biological Services, Inc. (formerly Scorpion Biosciences, Inc), and Abacus Biotech, Inc. The functional currency of the entities located outside the United States of America (the foreign entities) is the applicable local currency of the foreign entities. 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 March 31, 2021 and December 31, 2020, Heat held 85% controlling interest in Pelican. Heat accounts for its less than 100% interest in accordance with U.S. GAAP. Accordingly, the Company presents non-controlling interest as a component of stockholders’ equity on its consolidated balance sheets and reports non-controlling interest net loss under the heading “net loss – non-controlling interest” on its consolidated statements of operations and comprehensive loss. On December 11, 2020, we effected a one-for-seven- reverse stock split. All per share numbers reflect the one-for seven reverse stock split. Liquidity and Capital Resources The Company has an accumulated deficit of approximately $138.2 million as of March 31, 2021 and a net loss of approximately $7.6 million for the three months ended March 31, 2021 and has not generated significant revenue or positive cash flows from operations. The Company expects to incur significant expenses and continued losses from operations for the foreseeable future. The Company expects its expenses to increase in connection with its ongoing activities, particularly as the Company continues its research and development and advances its clinical trials of, and seeks marketing approval for, its product candidates. In addition, if the Company obtains marketing approval for any of its product candidates, the Company expects to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution. Furthermore, any new business ventures that the Company may engage in are likely to require commitments of capital. Accordingly, the Company will in the future need to obtain substantial additional funding in connection with its planned operations. Adequate additional financing may not be available to the Company on acceptable terms, or at all. If the Company is unable to raise capital when needed or on attractive terms, it would be forced to delay, reduce or eliminate its research and development programs or any future commercialization efforts. To meet its capital needs, the Company intends to continue to consider multiple alternatives, including, but not limited to, additional equity financings such as sales of its common stock under at-the-market offerings, if available, debt financings, partnerships, collaborations and other funding transactions. As of March 31, 2021, the Company had approximately $132.0 million in cash and cash equivalents and short-term investments, which it believes is sufficient to fund its operations for at least one year from the date these consolidated financial statements were issued. This is based on the Company’s current estimates, and the Company could use its available capital resources sooner than it currently expects. The Company is continually evaluating various cost-saving measures considering its cash requirements in order to focus resources on its product candidates. The Company will need to generate significant revenues to achieve profitability, and it may never do so. With the global spread of the ongoing novel coronavirus (“COVID-19”) pandemic, the Company has implemented business continuity plans designed to address and mitigate the impact of the COVID-19 pandemic on its employees and business. While the Company is experiencing limited financial impacts at this time, given the global economic slowdown, the overall disruption of global healthcare systems and the other risks and uncertainties associated with the pandemic could have a material adverse effect on our business, financial condition, results of operations and growth prospects. In addition, to the extent the ongoing COVID-19 pandemic adversely affects the Company’s business and results of operations, it may also have the effect of heightening many of the other risks and uncertainties which the Company faces. Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses. The extent to which the COVID-19 pandemic impacts the Company’s business, the clinical development of the Company’s products, the business of the Company’s suppliers and other commercial partners, the Company’s corporate development objectives and the value of and market for the Company’s common stock, will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time, such as the ultimate duration of the pandemic, travel restrictions, quarantines, social distancing and business closure requirements in the United States, Europe and other countries, and the effectiveness of actions taken globally to contain and treat the disease. The Company’s in human phase 1 trial of HS-130 was subject to an approximate 8 week enrollment pause in April and May 2020 due to lack of personal protection equipment (“PPE”) at a clinical site. The site ceased all non-critical/non-essential patient procedures until PPE supplies were available. Enrollment resumed at the end of the second quarter of 2020 and no delays in overall development milestones are expected for HS-130. The Company relies on third-party manufacturers to purchase from their third-party vendors the materials necessary to produce product candidates and manufacture product candidates for clinical studies. The Company also depends on third-party suppliers for key materials and services used in research and development, as well as manufacturing processes, and are subject to certain risks related to the loss of these third-party suppliers or their inability to supply adequate materials and services. The Company does not control the manufacturing processes of the contract development and manufacturing organizations, or CDMOs, with whom it contracts and is dependent on these third parties for the production of its therapeutic candidates in accordance with relevant regulations (such as current Good Manufacturing Practices, or cGMP, which includes, among other things, quality control, quality assurance and the maintenance of records and documentation. Cash and Cash Equivalents The Company considers all cash and other highly liquid investments with initial maturities from the date of purchase of three months or less to be cash and cash equivalents. Derivative Financial Instruments The Company has issued common stock warrants in connection with the execution of certain equity financings. The fair value of the warrants, which were deemed to be derivative instruments, was recorded as a derivative liability under the provisions of ASC Topic 815 Derivatives and Hedging (“ASC 815”) because they are not considered indexed to the Company’s own stock. Subsequently, the liability is adjusted to fair value as of the end of each reporting period and the changes in fair value of derivative liabilities are recorded in the consolidated statements of operations and comprehensive loss under the caption “Change in fair value of warrant liability.” See Note 3 for additional information. The fair value of the warrants, including the warrants issued in connection with the January 2020 common stock offering and recorded as liability, were determined using the Monte Carlo simulation model, deemed to be an appropriate model due to the terms of the warrants issued. The fair value of warrants was affected by changes in inputs to the Monte Carlo simulation model including the Company’s stock price, expected stock price volatility, the remaining term, and the risk-free interest rate. This model uses Level 3 inputs, including stock price volatility, in the fair value hierarchy established by ASC 820 Fair Value Measurement. At March 31, 2021, the fair value of such warrants was $42,481, which is classified as a long-term derivative warrant liability on the Company’s consolidated balance sheets. Short-term Investments The Company’s short-term investments are equity securities and are carried at their fair value based on quoted market prices. Realized and unrealized gains and losses on equity securities are included in net earnings in the period earned or incurred. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates are used for, but not limited to, useful lives of fixed assets, contingent consideration, valuation of goodwill and in process research and development (“IPR&D”), income taxes, valuation of warrant liabilities, and stock-based compensation. Actual results may differ from those estimates. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation in the consolidated financial statements and accompanying notes to the consolidated financial statements including the related party contingent consideration payable, which is now presented as a separate line item on the Company's consolidated balance sheets. Segments Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed the operations and managed the business as one segment. Business Combinations The Company accounts for acquisitions using the acquisition method of accounting, which requires that all identifiable assets acquired, and liabilities assumed be recorded at their estimated fair values. The excess of the fair value of purchase consideration over the fair values of identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from acquired patented technology. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Goodwill and In-Process Research and Development The Company classifies intangible assets into three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. The Company determines the useful lives of definite-lived intangible assets after considering specific facts and circumstances related to each intangible asset. Factors the Company considers when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, and other economic facts; including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their estimated useful lives. Intangible assets that are deemed to have indefinite lives, including goodwill, are reviewed for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test for indefinite-lived intangibles, other than goodwill, consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. Indefinite-lived intangible assets, such as goodwill, are not amortized. The Company tests the carrying amounts of goodwill for recoverability on an annual basis or when events or changes in circumstances indicate evidence a potential impairment exists, using a fair value-based test. Pursuant to ASU 2017‑04, the Company must record a goodwill impairment charge if a reporting unit’s carrying value exceeds its fair value. No impairment existed at March 31, 2021. In-process research and development, or IPR&D, assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D assets represent the fair value assigned to technologies that the Company acquires, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the assets are considered indefinite-lived, they are tested for impairment on an annual basis, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying amounts. If and when development is complete, which generally occurs upon regulatory approval and the ability to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value. Contingent Consideration Consideration paid in a business combination may include potential future payments that are contingent upon the acquired business achieving certain milestones in the future (“contingent consideration”). Contingent consideration liabilities are measured at their estimated fair value as of the date of acquisition, with subsequent changes in fair value recorded in the consolidated statements of operations. The Company estimates the fair value of the contingent consideration as of the acquisition date using the estimated future cash outflows based on the probability of meeting future milestones. The milestone payments will be made upon the achievement of clinical and commercialization milestones as well as single low digit royalty payments and payments upon receipt of sublicensing income. Subsequent to the date of acquisition, the Company reassesses the actual consideration earned and the probability-weighted future earn-out payments at each balance sheet date. Any adjustment to the contingent consideration liability will be recorded in the consolidated statements of operations. Contingent consideration liabilities expected to be settled within 12 months after the balance sheet date are presented in current liabilities, with the non-current portion recorded under long term liabilities in the consolidated balance sheets. Research and Development Research and development includes costs associated with developmental products not yet approved by the FDA as well as costs associated with bringing developmental products into advanced phase clinical trials as incurred. These costs consist primarily of pre-manufacturing and manufacturing drug costs, clinical trial execution, investigator payments, license fees, salaries, stock-based compensation and related personnel costs. Other costs include fees paid to consultants and outside service providers related to the development of the Company’s product candidates and other expenses relating to the design, development, and testing and enhancement of its product candidates. Revenue Recognition Effective January 1, 2019, the Company has adopted ASU No. 2018-08 Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The Company’s primary source of revenue is grant revenue related to the CPRIT contract, which is being accounted for under ASC 958 as a conditional non-exchange contribution. The CPRIT grant covers the periods from June 1, 2017 through May 31, 2021, for a total grant award of up to $15.2 million. CPRIT advances grant funds upon request by the Company consistent with the agreed upon amounts and schedules as provided in the contract. The first tranche of funding of $1.8 million was received in May 2017, and a second tranche of funding of $6.5 million was received in October 2017, and the third tranche of funding of $5.4 million was received in December 2019. The remaining $1.5 million will be awarded, on a reimbursement basis, after we have fulfilled every requirement of the grant and the grant has been approved to be finalized. Funds received are reflected in deferred revenue as a liability until revenue is earned. Grant revenue is recognized when qualifying costs are incurred. On January 7, 2020, the Company was awarded a grant of up to $224,713 from the NIH. The NIH grant provides funding for continued development of the Company’s technologies for PTX-35. The grant funds will be made available by the NIH to the Company as allowable expenses are incurred. For the three months ended March 31, 2021, the Company incurred approximately $0.2 million of allowable expenses under the NIH grant and recognized a corresponding amount of grant revenues. Prepaid Expenses and Other Current Assets The Company’s prepaid expenses and other current assets consist primarily of the amount paid in advance for manufacturing activities, clinical trial support, and insurance. Income Taxes 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 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. Deferred tax assets are reduced by a valuation allowance to the extent that utilization is not presently more likely than not. Significant Accounting Policies The significant accounting policies used in preparation of these interim financial statements are disclosed in the 2020 Annual Report and have not changed significantly since such filing. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2022 and the Company is currently evaluating the expected impact of this standard but does not expect it to have a material impact on its consolidated financial statements upon adoption. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes, and also improves consistency of application by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Adoption of this new standard did not have a material impact on the Company. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force), which addresses the accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. ASU 2020-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Adoption of this new standard did not have a material impact on the Company. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies the accounting for convertible instruments. This ASU also requires entities to use the if-converted method for all convertible instruments in calculating diluted earnings-per-share. The ASU is effective for annual periods beginning after December 15, 2023 with early adoption permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements.

Acquisition of Pelican Therapeu

Acquisition of Pelican Therapeutics	3 Months Ended
	Mar. 31, 2021
Acquisition of Pelican Therapeutics
Acquisition of Pelican Therapeutics	2. Acquisition of Pelican Therapeutics In 2017, the Company consummated the acquisition of 80% of the outstanding equity of Pelican, a related party, and Pelican became a majority owned subsidiary of the Company. During the quarter ended March 31, 2018, cash consideration of approximately $300,000 was distributed to the participating Pelican stockholders and the remainder of approximately $200,000 for certain Pelican liabilities not satisfied was recognized as other income in the statements of operations and comprehensive loss for the period. In October 2018, the Company entered into an agreement with the University of Miami (“UM”) whereby UM exchanged its shares of stock in the Company’s subsidiaries, Heat I, Inc. and Pelican. The stock exchange resulted in the Company increasing its controlling ownership in Pelican from 80% to 85%. Under the Pelican stock acquisition agreement, the Company is also obligated to make future payments based on the achievement of certain clinical and commercialization milestones, as well as low single digit royalty payments and payments upon receipt of sublicensing income. The fair value of these future milestone payments is reflected in the contingent consideration account under current liabilities with the non-current portion under long term liabilities on the balance sheet. The estimated fair value of the contingent consideration was determined using a probability-weighted income approach. The Company estimates the fair value of the contingent consideration on a quarterly basis. At the time of the Pelican acquisition, the Company’s CEO and certain affiliated entities as well as two of the Company’s directors and certain affiliated entities directly or indirectly owned shares of Pelican common stock purchased by the Company. As a result, approximately 22.7% of any such milestone payments will be paid to certain directors of the Company which is presented separately on the balance sheet as contingent consideration, related party - net of current portion. On June 22, 2020, we achieved the first milestone when we dosed the first patient in the first Phase 1 clinical trial of PTX-35. Goodwill was calculated as the difference between the acquisition-date fair value of the consideration transferred and the fair values of the assets acquired and liabilities assumed. The goodwill resulting from this acquisition related largely to synergies expected from combining the operations. The goodwill is not deductible for income tax purposes. In-process research and development assets are treated as indefinite-lived until the completion or abandonment of the associated research and development (“R&D”) program, at which time the appropriate useful lives will be determined. The Company calculated the fair value of the non-controlling interest acquired in the acquisition as 20% of the equity interest of Pelican, adjusted for a minority interest discount. As discussed in Note 10, in May 2016, Pelican was awarded a $15.2 million CPRIT Grant from CPRIT for development of Pelican’s lead product candidate, PTX‑35. The CPRIT Grant is expected to support Pelican in developing PTX‑35 through its current Phase 1 clinical trial designed to evaluate PTX‑35 in combination with other immunotherapies.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2021
Fair Value of Financial Instruments
Fair Value of Financial Instruments	3. Fair Value of Financial Instruments The carrying amount of certain of the Company’s financial instruments, including cash and cash equivalents, accounts payable and accrued expenses and other payables approximate fair value due to their short maturities. 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 Company’s cash equivalents are classified within Level I of the fair value hierarchy. As of March 31, 2021 and December 31, 2020, the fair values of cash, accounts payable, and accrued expenses approximated their carrying values because of the short-term nature of these assets or liabilities. The Company’s short-term investments consist of Level I securities which are comprised of highly liquid money market funds. The estimated fair value of the short-term investments was based on quoted market prices. There were no transfers between fair value hierarchy levels during the quarters ended March 31, 2021 or 2020. In January 2020, the Company issued warrants in connection with the public offering of common stock (the “January 2020 Warrants”). Pursuant to the terms of these warrants, the warrants were not considered indexed to the Company’s own stock and therefore are required to be measured at fair value and reported as a liability in the consolidated balance sheets. Additionally, upon the closing of the January 2020 offering, 479,595 outstanding warrants were evaluated whether they were modified for accounting purpose and were determined that they were required to be classified as a liability. The fair value of the warrant liability is based on the Monte Carlo methodology. The Company is required to revalue the warrants at each reporting date with any changes in fair value recorded on our consolidated statement of operations and comprehensive loss. The valuation of the warrants is classified under Level 3 of the fair value hierarchy due to the need to use assumptions in the valuation that are both significant to the fair value measurement and unobservable. In order to calculate the fair value of the warrants, certain assumptions were made, including the selling price or fair market value of the underlying common stock, risk-free interest rate, volatility, and remaining life. Changes to the assumptions could cause significant adjustments to valuation. The Company estimated a volatility factor utilizing its own data. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of the grant for treasury securities of similar maturity. The following table presents quantitative information about the Black-Scholes inputs used in the valuation for the Company’s fair value measurement of the warrant liability classified as Level 3: March 31, 2021 December 31, 2020 Current stock price $ 7.28 $ 5.36 Estimated volatility of future stock price 126.04 % 141.28 % Risk free interest rate 0.29 % 0.17 % Contractual term 2.66 years 2.90 years During the year ended December 31, 2020, 470,238 warrants were exchanged for 319,756 shares of common stock. As of March 31, 2021, there were a total of 9,357 warrants outstanding that were reported as a liability on the consolidated balance sheet. The fair value of financial instruments measured on a recurring basis is as follows: As of March 31, 2021 Description Total Level 1 Level 2 Level 3 Assets: Short-term investments $ 100,899,984 $ 100,899,984 — — Liabilities: Contingent consideration $ 2,918,515 — — $ 2,918,515 Warrant liability $ 42,481 — — $ 42,481 As of December 31, 2020 Description Total Level 1 Level 2 Level 3 Assets: Short-term investments $ 100,842,438 $ 100,842,438 — — Liabilities: Contingent consideration $ 2,912,515 — — $ 2,912,515 Warrant liability $ 33,779 — — $ 33,779 The following table summarizes the change in fair value, as determined by Level 3 inputs, for all assets and liabilities using unobservable Level 3 inputs for the three months ended March 31, 2021: Contingent Warrant Consideration Liability Balance at December 31, 2020 $ 2,912,515 $ 33,779 Change in fair value 6,000 8,702 Balance at March 31, 2021 $ 2,918,515 $ 42,481 The change in the fair value of the contingent consideration for the three months ended March 31, 2021 was primarily due to the increase in the estimated probability of achieving the secondary milestone, a change in discount rate and the passage of time on the fair value measurement. The change in fair value of the warrant liability for the three months ended March 31, 2021 was primarily due to increases in the fair value of the underlying stock. Adjustments associated with the change in fair value of contingent consideration and warrant liability are included in the Company’s consolidated statement of operations and comprehensive loss. The following table presents quantitative information about the inputs and valuation methodologies used for the Company’s fair value measurements of contingent consideration classified as Level 3 as of March 31, 2021: As of March 31, 2021 Valuation Significant Weighted Average Methodology Unobservable Input (range, if applicable) Contingent Consideration Probability weighted income approach Milestone dates 2022-2031 Discount rate 8.07 Probability of occurrence 2.7% to 68% The Company measures certain non-financial assets on a non-recurring basis, including goodwill and in-process R&D. This analysis requires significant judgments, including primarily the estimation of future development costs, the probability of success in various phases of its development programs, potential post-launch cash flows and a risk-adjusted weighted average cost of capital.

Short-Term Investments

Short-Term Investments	3 Months Ended
	Mar. 31, 2021
Short-Term Investments
Short-Term Investments	4. Short-Term Investments Short-term investments consist of equity securities with a maturity of greater than three months when acquired. The Company holds its securities at fair value as of March 31, 2021 and December 31, 2020. Unrealized gains and losses on securities are reported in the statement of operations and comprehensive loss. Short-term investments at March 31, 2021 and December 31, 2020 consisted of mutual funds with fair values of $100.9 million and $100.8 million, respectively.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2021
Prepaid Expenses And Other Current Assets.
Prepaid Expenses and Other Current Assets	5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following at: March 31, December 31, 2021 2020 Prepaid manufacturing expense $ 209,510 $ 316,411 Prepaid insurance 346,921 612,293 Prepaid preclinical and clinical expenses 888,813 690,543 Other prepaid expenses and current assets 273,120 223,373 $ 1,718,364 $ 1,842,620

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2021
Property and Equipment
Property and Equipment	6. 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 to seven years. Expenditures for maintenance and repairs are charged to expense as incurred. Property and equipment consist of the following at: March 31, December 31, 2021 2020 Lab equipment $ 1,957,326 $ 1,607,238 Computers 84,368 71,058 Furniture and fixtures 64,523 64,523 Leasehold improvements 22,563 22,563 Total 2,128,780 1,765,382 Accumulated depreciation (1,161,198) (1,089,120) Property and equipment, net $ 967,582 $ 676,262 Depreciation expense was $72,078 and $42,572 for the three months ended March 31, 2021 and 2020, respectively.

Goodwill and In-process R&D

Goodwill and In-process R&D	3 Months Ended
	Mar. 31, 2021
Goodwill and In-process R&D
Goodwill and In-process R&D	7. Goodwill and In-Process R&D Goodwill of $2.2 million and in-process R&D of $5.9 million were recorded in connection with the acquisition of Pelican, as described in Note 2. The Company performs an annual impairment test at the reporting unit level as of April 1 st of each fiscal year. No impairment was recorded during the quarters ended March 31, 2021 or 2020.

Accrued expenses and Other Liab

Accrued expenses and Other Liabilities	3 Months Ended
	Mar. 31, 2021
Accrued expenses and Other Liabilities
Accrued expenses and other liabilities	8. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following: March 31, December 31, 2021 2020 Accrued preclinical and clinical trial expenses $ 1,086,202 $ 628,000 Accrued manufacturing expenses 15,000 175,089 Compensation and related benefits 225,095 209,600 Accrued franchise tax 55,000 172,500 Other expenses 383,088 429,345 $ 1,764,385 $ 1,614,534

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2021
Stockholders’ Equity
Stockholders' Equity	9. Stockholders’ Equity Underwritten Registered Offering On January 21, 2020, the Company closed on a public offering consisting of 2,857,142 shares of common stock together with warrants to purchase 1,428,571 shares of common stock. The gross proceeds to the Company from this offering were approximately $7,000,000, before deducting underwriting discounts, commissions, and other offering expenses. The Company has accounted for the warrants as liabilities and recorded them at fair value in our consolidated balance sheets (see Note 3). At-The-Market-Offering From January 1, 2021 to March 31, 2021 the Company sold approximately 2,106,027 shares of common stock under the Common Stock Sales Agreement, and the Amended and Restated Common Stock Sales Agreement, at an average price of approximately $12.18 per share, raising aggregate net proceeds of $25,646,099 after deducting a commission up to 3%. Common Stock Warrants As of March 31, 2021, the Company has outstanding warrants to purchase 747,383 shares of common stock issuable at a weighted-average exercise price of $11.06 per share. The following table summarizes the warrant activity of the Company’s common stock warrants. Common Stock Warrants Outstanding, December 31, 2020 758,939 Issued 31,000 Expired (42,556) Outstanding, March 31, 2021 747,383 Equity Compensation Plans The Company maintains various equity compensation plans with substantially similar provisions under which it may award employees, directors and consultants incentive and non-qualified stock options, restricted stock, stock appreciation rights and other stock based awards with terms established by the Compensation Committee of the Board of Directors which has been appointed by the Board of Directors to administer the plans. As of March 31, 2021, there were 1,075,317 shares remaining available for grant under these plans. Accounting for Stock-Based Compensation: Stock Compensation Expense - For the three months ended March 31, 2021, the Company recorded $2.9 million of stock-based compensation expense. For the three months ended March 31, 2020, the Company recorded $0.9 million of stock-based compensation expense. No compensation expense of employees with stock awards was capitalized during the three months ended March 31, 2021 and 2020. Stock Options - Under the Plan, the Company has issued stock options. A stock option grant gives the holder the right, but not the obligation to purchase a certain number of shares at a predetermined price for a specific period of time. The Company typically issues options that vest over four years in equal installments beginning on the first anniversary of the date of grant. Under the terms of the Plan, the contractual life of the option grants may not exceed ten years. During the three months ended March 31, 2021 and 2020, the Company issued options that expire ten years from the date of grant. Fair Value Determination – The Company has used the Black-Scholes option pricing model to determine fair value of our stock option awards on the date of grant. The Company will reconsider the use of the Black-Scholes model if additional information becomes available in the future that indicates another model would be more appropriate or if grants issued in future periods have characteristics that cannot be reasonably estimated under this model. The following weighted-average assumptions were used for option grants during the three months ended March 31, 2021 and 2020: · Volatility – The Company used an average historical stock price volatility of its own data plus an analysis of reported data for a peer group of comparable companies that have issued stock options with substantially similar terms. · Expected life of options – The 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. · Risk-free interest rate – The 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. · Dividend yield – The expected dividend yield was considered to be 0% in the option pricing formula since the Company had not paid any dividends and had no plan to do so in the future. · Forfeitures – As required by ASC 718, the Company reviews recent forfeitures and stock compensation expense. The Company accounts for forfeitures as they occur. The following table summarizes weighted-average assumptions used in our calculations of fair value for the three months ended March 31, 2021 and 2020: 2021 2020 Dividend yield — % — % Expected volatility 101.43 % 89.61 % Risk-free interest rate 0.43 % 0.86 % Expected lives (years) years years Stock Option Activity - The weighted-average fair value of options granted during the three months ended March 31, 2021 and 2020, as determined under the Black-Scholes valuation model, was $4.36 and $2.94, respectively. The following is a summary of the stock option activity for the three months ended March 31, 2021: Weighted Weighted Average Aggregate Average Exercise Intrinsic Remaining Shares Price Value Contractual Life Stock options outstanding at December 31, 2020 1,480,139 $ 11.05 $ 1,353,504 Granted 329,901 5.67 Exercised (69,270) 6.58 $ 55,679 Forfeited/Expired (42,860) 14.13 Stock options outstanding at March 31, 2021 1,697,910 $ 10.11 $ 1,776,908 Years Stock options exercisable at March 31, 2021 1,017,429 $ 13.08 $ 574,462 Years Unrecognized compensation expense related to unvested stock options was $2.7 million as of March 31, 2021, which is expected to be recognized over a weighted-average period of 1.7 years and will be adjusted for forfeitures as they occur. Restricted Stock - Under the Plan, the Company has issued restricted stock. A restricted stock award is an issuance of shares that cannot be sold or transferred by the recipient until the vesting period lapses. The grant date fair value of the restricted stock is equal to the closing market price of our common stock on the date of grant. The following is a summary of restricted stock award activity for the three months ended March 31, 2021: Weighted Average Shares Fair Value Restricted stock at December 31, 2020 239,928 $ 4.02 Granted 426,372 5.67 Vested (406,426) 5.15 Cancelled — — Restricted stock at March 31, 2021 259,874 $ 4.96 Restricted Stock Units - Under the Plan, the Company issued time-based RSUs. RSUs are not actual shares, but rather a right to receive shares in the future. The shares are not issued and the employee cannot sell or transfer shares prior to vesting and has no voting rights until the RSUs vest. The employees' time-based RSUs vest 25% on the award date and 25% each anniversary thereafter. The grant date fair value of the RSUs is equal to the closing market price of our common stock on the grant date. The Company recognizes the grant date fair value of RSUs of shares the Company expects to issue as compensation expense ratably over the requisite service period. The following is a summary of stock unit activity for the three months ended March 31, 2021: Weighted Average Shares Fair Value RSUs at December 31, 2020 1,900 $ 26.60 Vested (1,900) 26.60 Cancelled — — RSUs at March 31, 2021 — $ —

Grant Revenue

Grant Revenue	3 Months Ended
	Mar. 31, 2021
Grant Revenue
Grant Revenue	10. Grant Revenue In June 2016, Pelican entered into a cancer research grant contract or Grant Contract with CPRIT, under which CPRIT awarded a grant not to exceed $15.2 million for use in developing cancer treatments by targeting a novel T-cell costimulatory receptor (namely, TNFRSF25). The Grant Contract covers a period from June 1, 2016 through November 30, 2020, as amended through May 31, 2021. The first tranche of funding of $1.8 million was received in May 2017, and a second tranche of funding of $6.5 million was received in October 2017 and a third tranche of funding of $5.4 million was received in December 2019. The remaining $1.5 million will be awarded on a reimbursement basis after the Company has fulfilled every requirement of the grant and the grant has been approved to be finalized. The grant is subject to customary CPRIT funding conditions including a matching funds requirement where Pelican will match $0.50 for every $1.00 from CPRIT. Consequently, Pelican is required to provide $7.6 million in matching funds over the life of the project. Upon commercialization of the product, the terms of the grant require Pelican to pay tiered royalties in the low to mid-single digit percentages. Such royalties reduce to less than one percent after a mid-single-digit multiple of the grant funds have been paid to CPRIT in royalties. On January 7, 2020, the Company was awarded a grant of up to $224,713 from the NIH. The NIH grant provides funding for continued development of the Company’s technologies for PTX-35. The grant funds will be made available by the NIH to the Company as allowable expenses are incurred. Through March 31, 2021, $13.6 million of grant funding received to date has been recognized as revenue.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Net Loss Per Share
Net Loss Per Share	11. Net Loss Per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the periods. Fully diluted net loss per common share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the periods. Common equivalent shares consist of stock options and warrants that are computed using the treasury stock method. For the quarters ended March 31, 2021 and 2020, all of the Company’s common stock options, unvested restricted stock units and warrants are anti-dilutive and therefore have been excluded from the diluted calculation. The following table reconciles net loss to net loss attributable to Heat Biologics, Inc.: For the Three Months Ended March 31, 2021 2020 Net loss $ (7,623,140) $ (6,373,420) Net loss - Non-controlling interest (90,962) (81,314) Net loss attributable to Heat Biologics, Inc. $ (7,532,178) $ (6,292,106) Weighted-average common shares outstanding, basic and diluted 24,199,916 8,183,154 Net loss per share, basic and diluted $ (0.31) $ (0.77) The following potentially dilutive securities were excluded from the calculation of diluted net loss per share in the three months ended March 31, 2021 and 2020 due to their anti-dilutive effect: 2021 2020 Outstanding stock options 1,697,910 799,288 Restricted stock subject to forfeiture and restricted stock units 259,874 289,321 Outstanding common stock warrants 747,383 825,581

Income Tax

Income Tax	3 Months Ended
	Mar. 31, 2021
Income Tax
Income Tax	12. 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. As of March 31, 2021, $1.0 million of the deferred tax asset arising from the generation of 2018 net operating losses has been utilized to offset a portion of the previously recorded deferred tax liability associated with indefinite lived R&D in process costs. Specifically, the prior & current year net operating losses gave rise to an indefinite-lived deferred tax asset which provided sufficient support to offset a portion of the Company’s indefinite-lived deferred tax liability. In accordance with FASB ASC 740, Accounting for Income Taxes, the Company reflects in the accompanying unaudited condensed consolidated financial statements the benefit of positions taken in a previously filed tax return or expected to be taken in a future tax return only when it is considered ‘more-likely-than-not’ that the position taken will be sustained by a taxing authority. As of March 31, 2021, and December 31, 2020, the Company had no unrecognized income tax benefits and correspondingly there is no impact on the Company’s effective income tax rate associated with these items. The Company’s policy for recording interest and penalties relating to uncertain income tax positions is to record them as a component of income tax expense in the accompanying statements of operations and comprehensive loss. As of March 31, 2021, and December 31, 2020, the Company had no such accruals.

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases
Leases	13. Leases Effective January 1, 2019, the Company adopted ASC 842 using the optional transition method, applying no practical expedients. In accordance with the optional transition method, the Company did not recast the prior period consolidated financial statements. The lease term is the noncancelable period of the lease. There are no termination provisions or renewal periods reasonably certain of exercise or options controlled by the lessor. The Company conducts its operations from leased facilities in Morrisville, North Carolina, San Antonio, Texas and New Brunswick, New Jersey, the leases for which will expire in 2027, 2023 and 2022. The leases are for general office space and lab space and require the Company to pay property taxes, insurance, common area expenses and maintenance costs. Total cash paid for operating leases during the three months ended March 31, 2021 was $0.09 million and is included within cash flows from operating activities within the consolidated statement of cash flows. The Company leases furniture and specialized lab equipment under finance leases. The related right-of-use assets are amortized on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. The effective interest rate is 6.17%. The Company’s lease cost is reflected in the accompanying statements of operations and comprehensive loss as follows: For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020 Operating lease cost $ 113,555 $ 103,956 Finance lease cost Amortization of lease assets 29,725 25,027 Interest on lease liabilities 3,743 4,412 Total finance lease cost $ 33,468 $ 29,439 The weighted average remaining lease term and incremental borrowing rate as of March 31, 2021 were as follows: Weighted average remaining lease term Operating leases years Finance leases years Weighted average discount rate Operating leases 6.47 % Finance leases 6.17 % Maturities of operating and finance lease liabilities as of March 31, 2021 were as follows: Operating Leases Finance Leases Total 2021 (excluding the three months ended March 31, 2021) $ 278,302 $ 90,513 $ 368,815 2022 360,839 155,694 516,533 2023 244,973 10,284 255,257 2024 231,503 - 231,503 2025 238,452 - 238,452 2026 245,606 - 245,606 Thereafter 209,214 - 209,214 Total minimum lease payments 1,808,889 256,491 2,065,380 Less: imputed interest (295,328) (14,553) (309,881) Present value of lease liabilities $ 1,513,561 $ 241,938 $ 1,755,499

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Basis of Presentation and Significant Accounting Policies
Basis of presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information or footnote disclosures normally included in the annual 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, these financial statements 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 ended March 31, 2021 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2021. The consolidated financial statements as of and for the three months ended March 31, 2021 and 2020 are unaudited. The balance sheet as of December 31, 2020 is derived from the audited consolidated financial statements as of that date. These 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, 2020 filed with the SEC on March 25, 2021 (the “2020 Annual Report”). The accompanying unaudited consolidated financial statements as of and for the three months ended March 31, 2021 and 2020 include the accounts of Heat Biologics, Inc. (“the Company”), and its subsidiaries, Pelican Therapeutics, Inc. (“Pelican”), Heat Biologics I, Inc. (“Heat I”), Heat Biologics III, Inc. (“Heat III”), Heat Biologics IV, Inc. (“Heat IV”), Heat Biologics GmbH, Heat Biologics Australia Pty Ltd., Zolovax, Inc., Skunkworx Bio, Inc. (formerly known as Delphi Therapeutics, Inc.), Scorpion Biological Services, Inc. (formerly Scorpion Biosciences, Inc), and Abacus Biotech, Inc. The functional currency of the entities located outside the United States of America (the foreign entities) is the applicable local currency of the foreign entities. 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 March 31, 2021 and December 31, 2020, Heat held 85% controlling interest in Pelican. Heat accounts for its less than 100% interest in accordance with U.S. GAAP. Accordingly, the Company presents non-controlling interest as a component of stockholders’ equity on its consolidated balance sheets and reports non-controlling interest net loss under the heading “net loss – non-controlling interest” on its consolidated statements of operations and comprehensive loss. On December 11, 2020, we effected a one-for-seven- reverse stock split. All per share numbers reflect the one-for seven reverse stock split.
Liquidity and Capital Resources	Liquidity and Capital Resources The Company has an accumulated deficit of approximately $138.2 million as of March 31, 2021 and a net loss of approximately $7.6 million for the three months ended March 31, 2021 and has not generated significant revenue or positive cash flows from operations. The Company expects to incur significant expenses and continued losses from operations for the foreseeable future. The Company expects its expenses to increase in connection with its ongoing activities, particularly as the Company continues its research and development and advances its clinical trials of, and seeks marketing approval for, its product candidates. In addition, if the Company obtains marketing approval for any of its product candidates, the Company expects to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution. Furthermore, any new business ventures that the Company may engage in are likely to require commitments of capital. Accordingly, the Company will in the future need to obtain substantial additional funding in connection with its planned operations. Adequate additional financing may not be available to the Company on acceptable terms, or at all. If the Company is unable to raise capital when needed or on attractive terms, it would be forced to delay, reduce or eliminate its research and development programs or any future commercialization efforts. To meet its capital needs, the Company intends to continue to consider multiple alternatives, including, but not limited to, additional equity financings such as sales of its common stock under at-the-market offerings, if available, debt financings, partnerships, collaborations and other funding transactions. As of March 31, 2021, the Company had approximately $132.0 million in cash and cash equivalents and short-term investments, which it believes is sufficient to fund its operations for at least one year from the date these consolidated financial statements were issued. This is based on the Company’s current estimates, and the Company could use its available capital resources sooner than it currently expects. The Company is continually evaluating various cost-saving measures considering its cash requirements in order to focus resources on its product candidates. The Company will need to generate significant revenues to achieve profitability, and it may never do so. With the global spread of the ongoing novel coronavirus (“COVID-19”) pandemic, the Company has implemented business continuity plans designed to address and mitigate the impact of the COVID-19 pandemic on its employees and business. While the Company is experiencing limited financial impacts at this time, given the global economic slowdown, the overall disruption of global healthcare systems and the other risks and uncertainties associated with the pandemic could have a material adverse effect on our business, financial condition, results of operations and growth prospects. In addition, to the extent the ongoing COVID-19 pandemic adversely affects the Company’s business and results of operations, it may also have the effect of heightening many of the other risks and uncertainties which the Company faces.
Risk and Uncertainties	Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses. The extent to which the COVID-19 pandemic impacts the Company’s business, the clinical development of the Company’s products, the business of the Company’s suppliers and other commercial partners, the Company’s corporate development objectives and the value of and market for the Company’s common stock, will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time, such as the ultimate duration of the pandemic, travel restrictions, quarantines, social distancing and business closure requirements in the United States, Europe and other countries, and the effectiveness of actions taken globally to contain and treat the disease. The Company’s in human phase 1 trial of HS-130 was subject to an approximate 8 week enrollment pause in April and May 2020 due to lack of personal protection equipment (“PPE”) at a clinical site. The site ceased all non-critical/non-essential patient procedures until PPE supplies were available. Enrollment resumed at the end of the second quarter of 2020 and no delays in overall development milestones are expected for HS-130. The Company relies on third-party manufacturers to purchase from their third-party vendors the materials necessary to produce product candidates and manufacture product candidates for clinical studies. The Company also depends on third-party suppliers for key materials and services used in research and development, as well as manufacturing processes, and are subject to certain risks related to the loss of these third-party suppliers or their inability to supply adequate materials and services. The Company does not control the manufacturing processes of the contract development and manufacturing organizations, or CDMOs, with whom it contracts and is dependent on these third parties for the production of its therapeutic candidates in accordance with relevant regulations (such as current Good Manufacturing Practices, or cGMP, which includes, among other things, quality control, quality assurance and the maintenance of records and documentation.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all cash and other highly liquid investments with initial maturities from the date of purchase of three months or less to be cash and cash equivalents.
Derivative Financial Instruments	Derivative Financial Instruments The Company has issued common stock warrants in connection with the execution of certain equity financings. The fair value of the warrants, which were deemed to be derivative instruments, was recorded as a derivative liability under the provisions of ASC Topic 815 Derivatives and Hedging (“ASC 815”) because they are not considered indexed to the Company’s own stock. Subsequently, the liability is adjusted to fair value as of the end of each reporting period and the changes in fair value of derivative liabilities are recorded in the consolidated statements of operations and comprehensive loss under the caption “Change in fair value of warrant liability.” See Note 3 for additional information. The fair value of the warrants, including the warrants issued in connection with the January 2020 common stock offering and recorded as liability, were determined using the Monte Carlo simulation model, deemed to be an appropriate model due to the terms of the warrants issued. The fair value of warrants was affected by changes in inputs to the Monte Carlo simulation model including the Company’s stock price, expected stock price volatility, the remaining term, and the risk-free interest rate. This model uses Level 3 inputs, including stock price volatility, in the fair value hierarchy established by ASC 820 Fair Value Measurement. At March 31, 2021, the fair value of such warrants was $42,481, which is classified as a long-term derivative warrant liability on the Company’s consolidated balance sheets.
Short-term Investments	Short-term Investments The Company’s short-term investments are equity securities and are carried at their fair value based on quoted market prices. Realized and unrealized gains and losses on equity securities are included in net earnings in the period earned or incurred.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates are used for, but not limited to, useful lives of fixed assets, contingent consideration, valuation of goodwill and in process research and development (“IPR&D”), income taxes, valuation of warrant liabilities, and stock-based compensation. Actual results may differ from those estimates.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation in the consolidated financial statements and accompanying notes to the consolidated financial statements including the related party contingent consideration payable, which is now presented as a separate line item on the Company's consolidated balance sheets.
Segments	Segments Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed the operations and managed the business as one segment.
Business Combinations	Business Combinations The Company accounts for acquisitions using the acquisition method of accounting, which requires that all identifiable assets acquired, and liabilities assumed be recorded at their estimated fair values. The excess of the fair value of purchase consideration over the fair values of identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from acquired patented technology. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.
Goodwill and In-Process Research and Development	Goodwill and In-Process Research and Development The Company classifies intangible assets into three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. The Company determines the useful lives of definite-lived intangible assets after considering specific facts and circumstances related to each intangible asset. Factors the Company considers when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, and other economic facts; including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their estimated useful lives. Intangible assets that are deemed to have indefinite lives, including goodwill, are reviewed for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test for indefinite-lived intangibles, other than goodwill, consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. Indefinite-lived intangible assets, such as goodwill, are not amortized. The Company tests the carrying amounts of goodwill for recoverability on an annual basis or when events or changes in circumstances indicate evidence a potential impairment exists, using a fair value-based test. Pursuant to ASU 2017‑04, the Company must record a goodwill impairment charge if a reporting unit’s carrying value exceeds its fair value. No impairment existed at March 31, 2021. In-process research and development, or IPR&D, assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D assets represent the fair value assigned to technologies that the Company acquires, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the assets are considered indefinite-lived, they are tested for impairment on an annual basis, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying amounts. If and when development is complete, which generally occurs upon regulatory approval and the ability to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value.
Contingent Consideration	Contingent Consideration Consideration paid in a business combination may include potential future payments that are contingent upon the acquired business achieving certain milestones in the future (“contingent consideration”). Contingent consideration liabilities are measured at their estimated fair value as of the date of acquisition, with subsequent changes in fair value recorded in the consolidated statements of operations. The Company estimates the fair value of the contingent consideration as of the acquisition date using the estimated future cash outflows based on the probability of meeting future milestones. The milestone payments will be made upon the achievement of clinical and commercialization milestones as well as single low digit royalty payments and payments upon receipt of sublicensing income. Subsequent to the date of acquisition, the Company reassesses the actual consideration earned and the probability-weighted future earn-out payments at each balance sheet date. Any adjustment to the contingent consideration liability will be recorded in the consolidated statements of operations. Contingent consideration liabilities expected to be settled within 12 months after the balance sheet date are presented in current liabilities, with the non-current portion recorded under long term liabilities in the consolidated balance sheets.
Research and Development	Research and Development Research and development includes costs associated with developmental products not yet approved by the FDA as well as costs associated with bringing developmental products into advanced phase clinical trials as incurred. These costs consist primarily of pre-manufacturing and manufacturing drug costs, clinical trial execution, investigator payments, license fees, salaries, stock-based compensation and related personnel costs. Other costs include fees paid to consultants and outside service providers related to the development of the Company’s product candidates and other expenses relating to the design, development, and testing and enhancement of its product candidates.
Revenue Recognition	Revenue Recognition Effective January 1, 2019, the Company has adopted ASU No. 2018-08 Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The Company’s primary source of revenue is grant revenue related to the CPRIT contract, which is being accounted for under ASC 958 as a conditional non-exchange contribution. The CPRIT grant covers the periods from June 1, 2017 through May 31, 2021, for a total grant award of up to $15.2 million. CPRIT advances grant funds upon request by the Company consistent with the agreed upon amounts and schedules as provided in the contract. The first tranche of funding of $1.8 million was received in May 2017, and a second tranche of funding of $6.5 million was received in October 2017, and the third tranche of funding of $5.4 million was received in December 2019. The remaining $1.5 million will be awarded, on a reimbursement basis, after we have fulfilled every requirement of the grant and the grant has been approved to be finalized. Funds received are reflected in deferred revenue as a liability until revenue is earned. Grant revenue is recognized when qualifying costs are incurred. On January 7, 2020, the Company was awarded a grant of up to $224,713 from the NIH. The NIH grant provides funding for continued development of the Company’s technologies for PTX-35. The grant funds will be made available by the NIH to the Company as allowable expenses are incurred. For the three months ended March 31, 2021, the Company incurred approximately $0.2 million of allowable expenses under the NIH grant and recognized a corresponding amount of grant revenues.
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets The Company’s prepaid expenses and other current assets consist primarily of the amount paid in advance for manufacturing activities, clinical trial support, and insurance.
Income Taxes	Income Taxes 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 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. Deferred tax assets are reduced by a valuation allowance to the extent that utilization is not presently more likely than not.
Significant Accounting Policies	Significant Accounting Policies The significant accounting policies used in preparation of these interim financial statements are disclosed in the 2020 Annual Report and have not changed significantly since such filing.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This standard is effective for fiscal years beginning after December 15, 2022 and the Company is currently evaluating the expected impact of this standard but does not expect it to have a material impact on its consolidated financial statements upon adoption. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes, and also improves consistency of application by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Adoption of this new standard did not have a material impact on the Company. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force), which addresses the accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. ASU 2020-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Adoption of this new standard did not have a material impact on the Company. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies the accounting for convertible instruments. This ASU also requires entities to use the if-converted method for all convertible instruments in calculating diluted earnings-per-share. The ASU is effective for annual periods beginning after December 15, 2023 with early adoption permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables) (Imported)	3 Months Ended
	Mar. 31, 2021
Fair Value of Financial Instruments
Schedule of fair value of financial instruments measured on a recurring basis	The fair value of financial instruments measured on a recurring basis is as follows: As of March 31, 2021 Description Total Level 1 Level 2 Level 3 Assets: Short-term investments $ 100,899,984 $ 100,899,984 — — Liabilities: Contingent consideration $ 2,918,515 — — $ 2,918,515 Warrant liability $ 42,481 — — $ 42,481 As of December 31, 2020 Description Total Level 1 Level 2 Level 3 Assets: Short-term investments $ 100,842,438 $ 100,842,438 — — Liabilities: Contingent consideration $ 2,912,515 — — $ 2,912,515 Warrant liability $ 33,779 — — $ 33,779
Schedule of change in fair value, as determined by Level 3 inputs, for all assets and liabilities using unobservable Level 3 inputs	Contingent Warrant Consideration Liability Balance at December 31, 2020 $ 2,912,515 $ 33,779 Change in fair value 6,000 8,702 Balance at March 31, 2021 $ 2,918,515 $ 42,481
Schedule of fair value inputs	March 31, 2021 December 31, 2020 Current stock price $ 7.28 $ 5.36 Estimated volatility of future stock price 126.04 % 141.28 % Risk free interest rate 0.29 % 0.17 % Contractual term 2.66 years 2.90 years The following table presents quantitative information about the inputs and valuation methodologies used for the Company’s fair value measurements of contingent consideration classified as Level 3 as of March 31, 2021: As of March 31, 2021 Valuation Significant Weighted Average Methodology Unobservable Input (range, if applicable) Contingent Consideration Probability weighted income approach Milestone dates 2022-2031 Discount rate 8.07 Probability of occurrence 2.7% to 68%

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Prepaid Expenses And Other Current Assets.
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consist of the following at: March 31, December 31, 2021 2020 Prepaid manufacturing expense $ 209,510 $ 316,411 Prepaid insurance 346,921 612,293 Prepaid preclinical and clinical expenses 888,813 690,543 Other prepaid expenses and current assets 273,120 223,373 $ 1,718,364 $ 1,842,620

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2021
Property and Equipment
Schedule of property and equipment	Property and equipment consist of the following at: March 31, December 31, 2021 2020 Lab equipment $ 1,957,326 $ 1,607,238 Computers 84,368 71,058 Furniture and fixtures 64,523 64,523 Leasehold improvements 22,563 22,563 Total 2,128,780 1,765,382 Accumulated depreciation (1,161,198) (1,089,120) Property and equipment, net $ 967,582 $ 676,262

Accrued expenses and Other Li_2

Accrued expenses and Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued expenses and Other Liabilities
Schedule of accrued expenses and other liabilities	Accrued expenses and other liabilities consist of the following: March 31, December 31, 2021 2020 Accrued preclinical and clinical trial expenses $ 1,086,202 $ 628,000 Accrued manufacturing expenses 15,000 175,089 Compensation and related benefits 225,095 209,600 Accrued franchise tax 55,000 172,500 Other expenses 383,088 429,345 $ 1,764,385 $ 1,614,534

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2021
Stockholders’ Equity
Schedule of common stock warrants outstanding	Common Stock Warrants Outstanding, December 31, 2020 758,939 Issued 31,000 Expired (42,556) Outstanding, March 31, 2021 747,383
Schedule of stock option valuation assumptions	The following table summarizes weighted-average assumptions used in our calculations of fair value for the three months ended March 31, 2021 and 2020: 2021 2020 Dividend yield — % — % Expected volatility 101.43 % 89.61 % Risk-free interest rate 0.43 % 0.86 % Expected lives (years) years years
Schedule of stock option activity	Weighted Weighted Average Aggregate Average Exercise Intrinsic Remaining Shares Price Value Contractual Life Stock options outstanding at December 31, 2020 1,480,139 $ 11.05 $ 1,353,504 Granted 329,901 5.67 Exercised (69,270) 6.58 $ 55,679 Forfeited/Expired (42,860) 14.13 Stock options outstanding at March 31, 2021 1,697,910 $ 10.11 $ 1,776,908 Years Stock options exercisable at March 31, 2021 1,017,429 $ 13.08 $ 574,462 Years
Schedule of restricted stock activity	Weighted Average Shares Fair Value Restricted stock at December 31, 2020 239,928 $ 4.02 Granted 426,372 5.67 Vested (406,426) 5.15 Cancelled — — Restricted stock at March 31, 2021 259,874 $ 4.96
Schedule of RSU activity	Weighted Average Shares Fair Value RSUs at December 31, 2020 1,900 $ 26.60 Vested (1,900) 26.60 Cancelled — — RSUs at March 31, 2021 — $ —

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Net Loss Per Share
Schedule of reconciliation of net loss	For the Three Months Ended March 31, 2021 2020 Net loss $ (7,623,140) $ (6,373,420) Net loss - Non-controlling interest (90,962) (81,314) Net loss attributable to Heat Biologics, Inc. $ (7,532,178) $ (6,292,106) Weighted-average common shares outstanding, basic and diluted 24,199,916 8,183,154 Net loss per share, basic and diluted $ (0.31) $ (0.77)
Schedule of potentially dilutive securities	2021 2020 Outstanding stock options 1,697,910 799,288 Restricted stock subject to forfeiture and restricted stock units 259,874 289,321 Outstanding common stock warrants 747,383 825,581

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases
Schedule of lease cost	For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020 Operating lease cost $ 113,555 $ 103,956 Finance lease cost Amortization of lease assets 29,725 25,027 Interest on lease liabilities 3,743 4,412 Total finance lease cost $ 33,468 $ 29,439
Schedule of weighted average remaining lease term and incremental borrowing rate	Weighted average remaining lease term Operating leases years Finance leases years Weighted average discount rate Operating leases 6.47 % Finance leases 6.17 %
Schedule of maturities of operating and finance lease liabilities	Operating Leases Finance Leases Total 2021 (excluding the three months ended March 31, 2021) $ 278,302 $ 90,513 $ 368,815 2022 360,839 155,694 516,533 2023 244,973 10,284 255,257 2024 231,503 - 231,503 2025 238,452 - 238,452 2026 245,606 - 245,606 Thereafter 209,214 - 209,214 Total minimum lease payments 1,808,889 256,491 2,065,380 Less: imputed interest (295,328) (14,553) (309,881) Present value of lease liabilities $ 1,513,561 $ 241,938 $ 1,755,499

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details)

Dec. 11, 2020

Jan. 07, 2020USD ($)

Dec. 31, 2019USD ($)

Oct. 31, 2017USD ($)

May 31, 2017USD ($)

Jun. 30, 2016USD ($)

May 31, 2016USD ($)

Mar. 31, 2021USD ($)segment

Mar. 31, 2020USD ($)

Mar. 31, 2021USD ($)

Dec. 31, 2020USD ($)

Oct. 31, 2018

Sep. 30, 2018

Dec. 31, 2017

Basis of Presentation and Significant Accounting Policies

Reverse stock split conversion ratio

0.1429

Accumulated deficit

$ 138,179,663

$ 138,179,663

$ 130,647,485

Net loss

7,623,140

$ 6,373,420

Cash, Cash Equivalents, and Short-term Investments

132,000,000

132,000,000

Derivative warrant liability

$ 42,481

42,481

$ 33,779

Number of operating segments | segment

1

Goodwill

Goodwill, Impairment Loss

$ 0

$ 0

Revenue Recognition

Revenue

538,645

$ 901,880

Allowable expenses incurred under NIH grant

$ 200,000

Maximum

Revenue Recognition

Amount awarded from NIH grant

$ 224,713

Pelican Therapeutics, Inc.

Basis of Presentation and Significant Accounting Policies

Ownership interest in subsidiary

85.00%

85.00%

85.00%

Pelican Therapeutics, Inc.

Basis of Presentation and Significant Accounting Policies

Business Acquisition, Percentage of Voting Interests Acquired

85.00%

80.00%

80.00%

Revenue Recognition

Amount awarded from CPRIT grant

$ 15,200,000

Pelican Therapeutics, Inc. | Maximum

Revenue Recognition

Amount awarded from CPRIT grant

$ 15,200,000

Grant revenue | Pelican Therapeutics, Inc.

Revenue Recognition

Revenue

$ 13,600,000

Grant receivable

$ 1,500,000

$ 1,500,000

Grant revenue | First tranche | Pelican Therapeutics, Inc.

Revenue Recognition

Revenue

$ 1,800,000

Grant revenue | Second tranche | Pelican Therapeutics, Inc.

Revenue Recognition

Revenue

$ 6,500,000

Grant revenue | Third tranche | Pelican Therapeutics, Inc.

Revenue Recognition

Revenue

$ 5,400,000

Acquisition of Pelican Therap_2

Acquisition of Pelican Therapeutics - Narrative (Details) - USD ($)	1 Months Ended		3 Months Ended
	Jun. 30, 2016	May 31, 2016	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2018	Dec. 31, 2020	Oct. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Acquisition of Pelican Therapeutics
Discount rate			8.07%
Accrued liabilities			$ 1,764,385			$ 1,614,534
Other income			(168,355)	$ (257,479)
Revenue			538,645	901,880
Net loss attributable to Heat Biologics, Inc.			(7,532,178)	(6,292,106)
Net loss			$ 7,623,140	$ 6,373,420
Pelican Therapeutics, Inc.
Acquisition of Pelican Therapeutics
Ownership interest in subsidiary			85.00%			85.00%
Pelican Therapeutics, Inc.
Acquisition of Pelican Therapeutics
Percentage of voting interests acquired in acquisition							85.00%	80.00%	80.00%
Cash consideration					$ 200,000
Percentage of non-controlling interest acquired			20.00%
Amount awarded from CPRIT grant		$ 15,200,000
Pelican Therapeutics, Inc. | Maximum
Acquisition of Pelican Therapeutics
Amount awarded from CPRIT grant	$ 15,200,000
Pelican Therapeutics, Inc. | Stockholders
Acquisition of Pelican Therapeutics
Cash consideration					$ 300,000
Pelican Therapeutics, Inc. | CEO
Acquisition of Pelican Therapeutics
Percentage of milestone payments that will be paid to related parties					22.70%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Warrant Weighted Average Assumptions (Details)	1 Months Ended	12 Months Ended
	Jan. 31, 2020shares	Dec. 31, 2020$ / sharesshares	Mar. 31, 2021$ / sharesshares
Fair Value of Financial Instruments
Warrants exchanged		470,238
Common stock issued in exchange for warrants (in shares)		319,756
Warrants outstanding			9,357
Current stock price
Fair Value of Financial Instruments
Fair value measurement input | $ / shares		5.36	7.28
Estimated volatility of future stock price
Fair Value of Financial Instruments
Fair value measurement input		141.28	126.04
Risk free interest rate
Fair Value of Financial Instruments
Fair value measurement input		0.17	0.29
Expected term
Fair Value of Financial Instruments
Fair value measurement input		2.9	2.66
Warrant
Fair Value of Financial Instruments
Number of warrants reclassified to liability	479,595

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Schedule of Fair Value Financial Instruments (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Assets:
Short-term investments	$ 100,899,984	$ 100,842,438
Liabilities:
Contingent consideration	2,918,515	2,912,515
Derivative warrant liability	42,481	33,779
Level 1
Assets:
Short-term investments	100,899,984	100,842,438
Level 3
Liabilities:
Contingent consideration	2,918,515	2,912,515
Derivative warrant liability	$ 42,481	$ 33,779

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Schedule of Fair Value Measurements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Fair Value of Financial Instruments
Beginning Balance	$ 2,912,515
Change in fair value	6,000
Ending Balance	2,918,515
Beginning Balance	33,779
Change in fair value	8,702	$ 977,710
Ending Balance	$ 42,481

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Schedule of Inputs and Valuation Methodologies Used (Details)	3 Months Ended
	Mar. 31, 2021
Fair Value of Financial Instruments
Valuation Methodology	Probability weighted income approach
Significant unobservable input - milestone dates	2022-2031
Discount rate	8.07%
Probability of occurrence - minimum	2.70%
Probability of occurrence - maximum	68.00%

Fair Value of Financial Instr_7

Fair Value of Financial Instruments - Schedule of Quantitative Fair Value Measurements (Details)	Mar. 31, 2021$ / shares	Dec. 31, 2020$ / shares
Current stock price
Fair Value of Financial Instruments
Fair value measurement input	7.28	5.36
Estimated volatility of future stock price
Fair Value of Financial Instruments
Fair value measurement input	126.04	141.28
Risk free interest rate
Fair Value of Financial Instruments
Fair value measurement input	0.29	0.17
Expected term
Fair Value of Financial Instruments
Fair value measurement input	2.66	2.9

Short-Term Investments (Details

Short-Term Investments (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Mutual funds
Estimated fair value	$ 100.9	$ 100.8

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Prepaid Expenses And Other Current Assets
Prepaid manufacturing expense	$ 209,510	$ 316,411
Prepaid insurance	346,921	612,293
Prepaid preclinical and clinical expenses	888,813	690,543
Other prepaid expenses and current assets	273,120	223,373
Prepaid expenses and other current assets	$ 1,718,364	$ 1,842,620

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property and Equipment
Total	$ 2,128,780		$ 1,765,382
Accumulated depreciation	(1,161,198)		(1,089,120)
Property and equipment, net	967,582		676,262
Depreciation expense	$ 72,078	$ 42,572
Minimum
Property and Equipment
Estimated useful lives	5 years
Maximum
Property and Equipment
Estimated useful lives	7 years
Lab equipment
Property and Equipment
Total	$ 1,957,326		1,607,238
Computers
Property and Equipment
Total	84,368		71,058
Furniture and fixtures
Property and Equipment
Total	64,523		64,523
Leasehold Improvements
Property and Equipment
Total	$ 22,563		$ 22,563

Goodwill and In-process R&D (De

Goodwill and In-process R&D (Details) - USD ($)	3 Months Ended	12 Months Ended	15 Months Ended
	Mar. 31, 2021	Dec. 31, 2018	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2017
Goodwill and In-Process R&D
Goodwill	$ 1,452,338		$ 1,452,338	$ 1,452,338
Goodwill impairment loss	$ 0		$ 0
Pelican Therapeutics, Inc.
Goodwill and In-Process R&D
Indefinite-lived Intangible Assets Acquired		$ 5,900,000
Goodwill					$ 2,200,000

Accrued expenses and Other Li_3

Accrued expenses and Other Liabilities (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Accrued expenses and Other Liabilities
Accrued clinical trial expenses	$ 1,086,202	$ 628,000
Accrued manufacturing expenses	15,000	175,089
Compensation and related benefits	225,095	209,600
Accrued franchise tax	55,000	172,500
Other expenses	383,088	429,345
Accrued expenses	$ 1,764,385	$ 1,614,534

Stockholders' Equity - Underwri

Stockholders' Equity - Underwritten Registered and ATM Offerings (Details) - USD ($)	Jan. 21, 2020	Mar. 31, 2021	Mar. 31, 2020
Proceeds from the issuance of common stock		$ 26,304,282	$ 11,428,235
January 2020 Offering
Issuance of common stock (in shares)	2,857,142
Warrants to purchase common stock	1,428,571
Proceeds from offering	$ 7,000,000
At The Market Offering
Number of common stock sold		2,106,027
Average price of common stock		$ 12.18
Proceeds from the issuance of common stock		$ 25,646,099
Percentage of commission for common stock sold		3.00%

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock Warrant (Details)	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Warrant
Stockholders’ Equity
Outstanding, beginning balance	758,939
Issued	31,000
Expired	(42,556)
Outstanding, ending balance	747,383
Common stock warrants
Stockholders’ Equity
Number of shares of common stock issuable through warrants	747,383
Weighted-average exercise price | $ / shares	$ 11.06

Stockholders' Equity - Equity C

Stockholders' Equity - Equity Compensation Plan - Narrative (Details)	Mar. 31, 2021shares
Stockholders’ Equity
Common shares available for grant	1,075,317

Stockholders' Equity - Accounti

Stockholders' Equity - Accounting for Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stockholders’ Equity
Stock-based compensation	$ 2,897,580	$ 948,192
Compensation expenses capitalized	$ 0	$ 0
Employee stock options
Stockholders’ Equity
Vesting period	4 years
Term of award	P10Y	P10Y
Employee stock options | Maximum
Stockholders’ Equity
Term of award	P10Y

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stockholders’ Equity
Dividend yield	0.00%
Expected volatility	101.43%	89.61%
Risk-free interest rate	0.43%	0.86%
Expected lives (years)	5 years 6 months	5 years 10 months 24 days

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock Option Activity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Shares
Stock options outstanding at beginning of period	1,480,139
Granted	329,901
Exercised	(69,270)
Forfeited/Expired	(42,860)
Stock options outstanding at end of period	1,697,910
Stock options exercisable at end of period	1,017,429
Weighted Average Exercise Price
Stock options outstanding at beginning of period (in dollars per share)	$ 11.05
Granted (in dollars per share)	5.67
Exercised (in dollars per share)	6.58
Forfeited/Expired (in dollars per share)	14.13
Stock options outstanding at end of period (in dollars per share)	10.11
Stock options exercisable at end of period	$ 13.08
Aggregate Intrinsic Value
Stock options outstanding at beginning of period	$ 1,353,504
Exercised	55,679
Stock options outstanding at end of period	1,776,908
Stock options exercisable at end of period	$ 574,462
Weighted Average Remaining Contractual Life
Stock options outstanding at end of period	9 years
Stock options exercisable at end of period	8 years 9 months 18 days
Unrecognized stock-based compensation expense	$ 2,700,000
Unrecognized stock-based compensation expense, recognition period	1 year 8 months 12 days
Weighted-average fair value of options	$ 4.36	$ 2.94

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock (Details)	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Restricted stock
Shares
Restricted stock at beginning of period | shares	239,928
Granted | shares	426,372
Vested | shares	(406,426)
Restricted stock at end of period | shares	259,874
Weighted Average Fair Value
Restricted stock at beginning of period | $ / shares	$ 4.02
Granted | $ / shares	5.67
Vested | $ / shares	5.15
Restricted stock at end of period | $ / shares	$ 4.96
RSU's
Shares
Restricted stock at beginning of period | shares	1,900
Vested | shares	(1,900)
Weighted Average Fair Value
Restricted stock at beginning of period | $ / shares	$ 26.60
Vested | $ / shares	$ 26.60
RSU's | Vest on grant date
Stockholders’ Equity
Vesting percentage	25.00%
RSU's | Vest on each anniversary thereafter
Stockholders’ Equity
Vesting percentage	25.00%

Grant Revenue (Details)

Grant Revenue (Details) - USD ($)	1 Months Ended			3 Months Ended
	Dec. 31, 2019	Oct. 31, 2017	May 31, 2017	Mar. 31, 2021	Mar. 31, 2020
Grant Revenue
Revenue				$ 538,645	$ 901,880
Pelican Therapeutics, Inc.
Grant Revenue
Remaining grant amount				1,500,000
Contribution to be made by Pelican				$ 7,600,000
Pelican Therapeutics, Inc. | Maximum
Grant Revenue
Royalty percentage after threshold is met				1.00%
Pelican Therapeutics, Inc. | Tranche 1
Grant Revenue
Revenue			$ 1,800,000
Pelican Therapeutics, Inc. | Tranche 2
Grant Revenue
Revenue		$ 6,500,000
Pelican Therapeutics, Inc. | Tranche 3
Grant Revenue
Revenue	$ 5,400,000
Pelican Therapeutics, Inc. | Grant revenue
Grant Revenue
Revenue				$ 13,600,000
Grant receivable				1,500,000
Amount the company is required to match of each dollar of grant				0.50
Threshold amount for match of grant				$ 1

Net Loss Per Share - Reconcilia

Net Loss Per Share - Reconciliation of Net Loss (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Loss Per Share
Net loss	$ (7,623,140)	$ (6,373,420)
Net loss: Non-controlling interest	(90,962)	(81,314)
Net loss attributable to Heat Biologics, Inc.	$ (7,532,178)	$ (6,292,106)
Weighted Average Number of Shares Outstanding, Basic and Diluted	24,199,916	8,183,154
Net loss per share, basic and diluted	$ (0.31)	$ (0.77)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee stock options
Net Loss Per Share
Potentially dilutive securities	1,697,910	799,288
Restricted stock subject to forfeiture and restricted stock units
Net Loss Per Share
Potentially dilutive securities	259,874	289,321
Common stock warrants
Net Loss Per Share
Potentially dilutive securities	747,383	825,581

Income Tax (Details)

Income Tax (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Income Tax
Unrecognized tax benefit	$ 0	$ 0
Accrual for interest and penalties relating to uncertain income tax positions	0	$ 0
Deferred income tax benefit	$ 1

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Leases
Operating Lease, Right-of-Use Asset	$ 1,947,192		$ 2,035,882
Operating lease liability	1,513,561
Operating lease payments	$ 90,000
Effective interest rate	6.17%
Operating lease cost	$ 113,555	$ 103,956
Finance lease cost
Amortization of lease assets	29,725	25,027
Interest on lease liabilities	3,743	4,412
Lease cost	$ 33,468	$ 29,439
Weighted average remaining lease term (years), Operating leases	6 years
Weighted average remaining lease term (years), Finance leases	1 year 8 months 12 days
Weighted average discount rate, Operating leases	6.47%
Weighted average discount rate, Finance leases	6.17%

Leases - Maturities of Operatin

Leases - Maturities of Operating and Finance Lease Liabilities (Details)	Mar. 31, 2021USD ($)
Maturities of operating lease liabilities
2021 (excluding the three months ended March 31, 2021)	$ 278,302
Year 1	360,839
Year 2	244,973
Year 3	231,503
Year 4	238,452
Year 5	245,606
Thereafter	209,214
Total minimum lease payments	1,808,889
Less: imputed interest	(295,328)
Present value of operating lease liabilities	1,513,561
Maturities of finance lease liabilities
2021 (excluding the three months ended March 31, 2021)	90,513
Year 1	155,694
Year 2	10,284
Total minimum lease payments	256,491
Less: imputed interest	(14,553)
Present value of lease liabilities	241,938
Maturities of lease liabilities
2021 (excluding the three months ended March 31, 2021)	368,815
Year 1	516,533
Year 2	255,257
Year 3	231,503
Year 4	238,452
Year 5	245,606
Thereafter	209,214
Total minimum lease payments	2,065,380
Less: imputed interest	(309,881)
Present value of lease liabilities	$ 1,755,499