Xenetic Biosciences (XBIO) 10-Q 12 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 05, 2021
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	001-37937
Entity Registrant Name	XENETIC BIOSCIENCES, INC.
Entity Central Index Key	0001534525
Entity Tax Identification Number	45-2952962
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	40 Speen Street
Entity Address, Address Line Two	Suite 102
Entity Address, City or Town	Framingham
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01701
City Area Code	781
Local Phone Number	778-7720
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		13,387,978
Common Stock, $0.001 par value per share
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	XBIO
Security Exchange Name	NASDAQ
Purchase Warrants
Title of 12(b) Security	Purchase Warrants
Trading Symbol	XBIOW
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash	$ 19,702,729	$ 11,527,552
Prepaid expenses and other	878,243	841,958
Total current assets	20,580,972	12,369,510
Other assets	704,430	809,985
Total assets	21,285,402	13,179,495
Current liabilities:
Accounts payable	248,485	327,396
Accrued expenses and other current liabilities	873,010	609,532
Total current liabilities	1,121,495	936,928
Other long-term liabilities		27,043
Total liabilities	1,121,495	963,971
Commitments (Note 11)
Stockholders' equity:
Preferred Stock, Value, Issued
Common stock, $0.001 par value; 50,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 13,413,013 and 8,772,198 shares issued as of September 30, 2021 and December 31, 2020, respectively; 13,386,022 and 8,745,207 shares outstanding as of September 30, 2021 and December 31, 2020, respectively	13,411	8,771
Additional paid in capital	205,880,753	194,133,511
Accumulated deficit	(180,705,585)	(176,902,086)
Accumulated other comprehensive income	253,734	253,734
Treasury stock	(5,281,180)	(5,281,180)
Total stockholders' equity	20,163,907	12,215,524
Total liabilities and stockholders' equity	21,285,402	13,179,495
Series B Preferred Stock [Member]
Stockholders' equity:
Preferred Stock, Value, Issued	1,804	1,804
Series A Preferred Stock [Member]
Stockholders' equity:
Preferred Stock, Value, Issued	$ 970	$ 970

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	13,413,013	8,772,198
Common stock, shares outstanding	13,386,022	8,745,207
Preferred Class B [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock shares issued	1,804,394	1,804,394
Preferred stock, shares outstanding	1,804,394	1,804,394
Preferred Class A [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock shares issued	970,000	970,000
Preferred stock, shares outstanding	970,000	970,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Total revenue	$ 349,269	$ 115,934	$ 828,088	$ 285,610
Operating costs and expenses:
Research and development	(780,153)	(573,061)	(1,934,432)	(1,240,612)
General and administrative	(945,115)	(804,149)	(2,766,397)	(2,519,515)
Asset impairment charges	0	(9,243,128)	0	(9,243,128)
Total operating costs and expenses	(1,725,268)	(10,620,338)	(4,700,829)	(13,003,255)
Loss from operations	(1,375,999)	(10,504,404)	(3,872,741)	(12,717,645)
Other income (expense):
Other income (expense)	(2,906)	585	(1,784)	643
Interest income, net	28,029	24,931	71,026	105,043
Total other income	25,123	25,516	69,242	105,686
Loss before income taxes	(1,350,876)	(10,478,888)	(3,803,499)	(12,611,959)
Income tax benefit	0	2,918,518	0	2,918,518
Net loss	$ (1,350,876)	$ (7,560,370)	$ (3,803,499)	$ (9,693,441)
Basic and diluted net loss per share	$ (0.13)	$ (1.20)	$ (0.41)	$ (1.55)
Weighted-average shares of common stock outstanding, basic and diluted	10,162,167	6,296,227	9,223,560	6,272,722
Royalty [Member]
Revenue:
Total revenue	$ 349,269	$ 115,934	$ 828,088	$ 285,610

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 2,774	$ 6,092	$ 188,240,451	$ (166,008,620)	$ 253,734	$ (5,281,180)	$ 17,213,251
Beginning balance, shares at Dec. 31, 2019	2,774,394	6,092,432
Exercise of purchase warrants		$ 229	(229)
Exercise of purchase warrants, shares		229,598
Issuance of common stock to vendor		$ 1	(1)
Issuance of common stock to vendor, shares		1,188
Share-based expense			388,131				388,131
Net loss				(9,693,441)			(9,693,441)
Ending balance, value at Sep. 30, 2020	$ 2,774	$ 6,322	188,628,352	(175,702,061)	253,734	(5,281,180)	7,907,941
Ending balance, shares at Sep. 30, 2020	2,774,394	6,323,218
Beginning balance, value at Jun. 30, 2020	$ 2,774	$ 6,322	188,517,553	(168,141,691)	253,734	(5,281,180)	15,357,512
Beginning balance, shares at Jun. 30, 2020	2,774,394	6,323,218
Share-based expense			110,799				110,799
Net loss				(7,560,370)			(7,560,370)
Ending balance, value at Sep. 30, 2020	$ 2,774	$ 6,322	188,628,352	(175,702,061)	253,734	(5,281,180)	7,907,941
Ending balance, shares at Sep. 30, 2020	2,774,394	6,323,218
Beginning balance, value at Dec. 31, 2020	$ 2,774	$ 8,771	194,133,511	(176,902,086)	253,734	(5,281,180)	12,215,524
Beginning balance, shares at Dec. 31, 2020	2,774,394	8,772,198
Issuance of common stock and warrants, net of issuance costs		$ 950	11,449,916				11,450,866
Issuance of common stock and warrants, net of issuance costs ,shares		950,000
Exercise of pre-funded warrants		$ 3,679					3,679
Exercise of pre-funded warrants ,shares		3,679,630
Exercise of purchase warrants		$ 4	(4)
Exercise of purchase warrants, shares		4,032
Issuance of common stock to vendor		$ 7	(7)
Issuance of common stock to vendor, shares		7,153
Share-based expense			297,337				297,337
Net loss				(3,803,499)			(3,803,499)
Ending balance, value at Sep. 30, 2021	$ 2,774	$ 13,411	205,880,753	(180,705,585)	253,734	(5,281,180)	20,163,907
Ending balance, shares at Sep. 30, 2021	2,774,394	13,413,013
Beginning balance, value at Jun. 30, 2021	$ 2,774	$ 8,772	194,319,716	(179,354,709)	253,734	(5,281,180)	9,949,107
Beginning balance, shares at Jun. 30, 2021	2,774,394	8,773,683
Issuance of common stock and warrants, net of issuance costs		$ 950	11,449,916				11,450,866
Issuance of common stock and warrants, net of issuance costs ,shares		950,000
Exercise of pre-funded warrants		$ 3,679					3,679
Exercise of pre-funded warrants ,shares		3,679,630
Exercise of purchase warrants		$ 3	(3)
Exercise of purchase warrants, shares		2,547
Issuance of common stock to vendor		$ 7	(7)
Issuance of common stock to vendor, shares		7,153
Share-based expense			111,131				111,131
Net loss				(1,350,876)			(1,350,876)
Ending balance, value at Sep. 30, 2021	$ 2,774	$ 13,411	$ 205,880,753	$ (180,705,585)	$ 253,734	$ (5,281,180)	$ 20,163,907
Ending balance, shares at Sep. 30, 2021	2,774,394	13,413,013

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,803,499)	$ (9,693,441)
Adjustments to reconcile net loss to net cash used in operating activities:
Asset impairment charges	0	9,243,128
Deferred income taxes	0	(2,918,518)
Depreciation	0	757
Amortization of right of use asset	26,199	20,042
Gain on settlement with vendor	0	(143,639)
Share-based expense	297,337	388,131
Changes in operating assets and liabilities:
Prepaid expenses and other assets	43,071	273,052
Accounts payable, accrued expenses and other liabilities	157,524	(483,045)
Net cash used in operating activities	(3,279,368)	(3,313,533)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock and warrants	11,450,866	0
Proceeds from exercise of warrants	3,679	0
Net cash provided by financing activities	11,454,545	0
Net change in cash	8,175,177	(3,313,533)
Cash at beginning of period	11,527,552	10,367,920
Cash at end of period	19,702,729	7,054,387
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	0	0
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock to vendor	7	1
Issuance of common stock from cashless exercise of purchase warrants	$ 4	$ 229

The Company

The Company	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	1. The Company Background Xenetic Biosciences, Inc. (“Xenetic” or the “Company”), incorporated in the state of Nevada and based in Framingham, Massachusetts, is a biopharmaceutical company focused on progressing XCART ™ Additionally, Xenetic is leveraging its proprietary drug delivery platform, PolyXen ® As used in this Quarterly Report on Form 10-Q (“Quarterly Report”), unless otherwise indicated, all references herein to “Xenetic,” the “Company,” “we” or “us” refer to Xenetic Biosciences, Inc. and its wholly owned subsidiaries. The Company, directly or indirectly, through its wholly-owned subsidiaries, Hesperix S.A. (“Hesperix”) and Xenetic Biosciences (U.K.) Limited (“Xenetic UK”), and the wholly-owned subsidiaries of Xenetic UK, Lipoxen Technologies Limited (“Lipoxen”), Xenetic Bioscience, Incorporated and SymbioTec, GmbH (“SymbioTec”), own various United States (“U.S.”) federal trademark registrations and applications, and unregistered trademarks and service marks, including but not limited to XCART, OncoHist™, PolyXen, ErepoXen™, and ImuXen™, which are used throughout this Quarterly Report. All other company and product names may be trademarks of the respective companies with which they are associated. Going Concern and Management’s Plan Management evaluates whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company has incurred substantial losses since its inception and expects to continue to incur operating losses in the near-term. These factors raise substantial doubt about its ability to continue as a going concern. The Company believes that it has access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations, related party funding, or other means to continue as a going concern. On December 4, 2020, the Company closed on a $6.0 million registered direct offering of the Company’s common stock, par value $0.001, resulting in $ 5.4 11.5

Impact of COVID-19

Impact of COVID-19	9 Months Ended
	Sep. 30, 2021
Impact Of Covid-19
Impact of COVID-19	2. Impact of COVID-19 During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus, or COVID-19. The pandemic has significantly affected economic conditions in the U.S., accelerating during the first half of March 2020 and continuing into 2021, as federal, state and local governments react to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. economy. The Company continues to evaluate the effects of the COVID-19 pandemic on its business and while there has been no significant impact to the Company’s operations to date, the Company at this time is uncertain of the impact this event may have on the Company’s future operations. The extent to which the COVID-19 pandemic affects our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, and such uncertainty is expected to continue for some time.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Preparation of Interim Financial Statements The accompanying condensed consolidated interim financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results for the interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021 and amended on April 28, 2021. Principles of Consolidation The condensed consolidated financial statements of the Company include the accounts of Hesperix, Xenetic UK and Xenetic UK’s wholly owned subsidiaries: Lipoxen, Xenetic Bioscience, Incorporated, and SymbioTec. All intercompany balances and transactions have been eliminated in consolidation. Basic and Diluted Net Loss per Share The Company computes basic net loss per share by dividing net loss applicable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding during the period. The Company computes diluted net loss per share after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive. For the three and nine months ended September 30, 2021 and 2020, basic and diluted net loss per share are the same for each respective period due to the Company’s net loss position. Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would be anti-dilutive. Recent Accounting Standards In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Significant Strategic Collabora

Significant Strategic Collaborations	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Significant Strategic Collaborations	4. Significant Strategic Collaborations The Company has entered into various research, development, license and supply agreements with Takeda Pharmaceuticals Co. Ltd. (“Takeda”), Serum Institute of India (“Serum Institute”), Pharmsynthez and SynBio LLC (“SynBio”), a wholly owned subsidiary of Pharmsynthez. The Company and its collaborative partners continue to engage in research and development activities with no resultant commercial products through September 30, 2021. In October 2017, the Company granted to Takeda the right to grant a non-exclusive sublicense to certain patents related to the Company’s PolyXen technology that were previously exclusively licensed to Takeda in connection with products related to the treatment of blood and bleeding disorders. Royalty payments of approximately $ 0.3 0.8 0.1 0.3 No On May 15, 2020, the Company and Scripps Research entered into a Research Funding and Option Agreement (the “Scripps Agreement”), pursuant to which the Company has agreed to provide Scripps Research an aggregate of up to $3.0 million to fund research relating to advancing the pre-clinical development of XCART. The research funding is payable by the Company to Scripps Research on a quarterly basis in accordance with a negotiated budget, which provides for an initial payment of approximately $300,000 on the date of the Scripps Agreement and subsequent quarterly payments of approximately $300,000 over a 27-month period. Under the Scripps Agreement, Scripps Research has granted the Company a license within the Field (as defined in the Scripps Agreement) to any Patent Rights or Technology (as defined in the Scripps Agreement) under the terms of that certain license agreement with Scripps Research, dated February 25, 2019, assigned to the Company on March 1, 2019. Additionally, the Company has the option to acquire a worldwide exclusive license to Scripps Research’s rights in the Technology or Patent Rights not already licensed to the Company, as well as a non-exclusive, royalty-free, non-transferrable license to make and use Scripps Research Technology (as defined in the Scripps Agreement) solely for the Company’s internal research purposes during the performance of the research program contemplated by the Scripps Agreement. The Company has paid $ 1.8 0.2

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment, net	5. Property and Equipment, net Property and equipment, net consists of the following: Schedule of Property and Equipment, Net September 30, December 31, Office and computer equipment $ 42,289 $ 42,289 Furniture and fixtures 14,738 14,738 Property and equipment – at cost 57,027 57,027 Less accumulated depreciation (57,027 ) (57,027 ) Property and equipment – net $ – $ – There was no no 800

Indefinite-Lived Intangible Ass

Indefinite-Lived Intangible Assets	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-Lived Intangible Assets	6. Indefinite-Lived Intangible Assets The Company’s indefinite-lived intangible asset, OncoHist, is in-process research and development (“IPR&D”) relating to the Company’s business combination with SymbioTec in 2012. IPR&D is tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, although it is to be tested at least annually until the project is completed or abandoned. The Company completed an impairment analysis of the IPR&D during 2020 and concluded that the following factors indicated that the IPR&D was impaired: a decision by management to delay indefinitely any further development of the IPR&D and to not support the underlying intellectual property; the failure to sell or license the IPR&D to a third party; and the reduction in market capitalization. The Company recorded an asset impairment charge of $ 9.2 Schedule of Indefinite- Lived Intangible Asset Balance as of January 1, 2020 $ 9,243,128 Impairment (9,243,128 ) Balance as of September 30, 2020 $ –

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements Accounting Standards Codification Topic 820, Fair Value Measurement, no

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Stockholders’ Equity	8. Stockholders’ Equity Private Placement On July 26, 2021, the Company entered into a securities purchase agreement in connection with a private placement with the purchaser named on the signature page thereto (“Purchaser”), pursuant to which the Company issued and sold to Purchaser, in a private placement priced at-the-market under Nasdaq rules, (i) 950,000 shares of the Company’s common stock, par value $0.001 per share (the “Shares”), (ii) warrants to purchase an aggregate of 4,629,630 shares of the Company’s common stock, with an exercise price of $3.30 per share (the “Series A Warrants”) which expire three and one half years from the earlier of (a) the six month anniversary of the initial exercise date and (b) the date that the registration statement registering all of the warrant shares underlying the Series A Warrants is declared effective, and (iii) pre-funded warrants to purchase up to 3,679,630 shares of the Company’s common stock, with an exercise price of $0.001 per share (the “Series B Warrants”) with no expiration (the “Private Placement”), at a purchase price of $2.70 per one Share and one Series A Warrant and $2.699 per one Series B Warrant and one Series A Warrant. The Private Placement closed on July 28, 2021 resulting in gross proceeds from the Private Placement of approximately $12.5 million, before deducting placement agent fees and offering expenses, and excluding the exercise of any such warrants. Net proceeds from the Private Placement were $ 11.5 On July 26, 2021, in connection with the Private Placement, the Company entered into a registration rights agreement with Purchaser, pursuant to which the Company filed a registration statement on Form S-3 to register for resale the Shares, as well as the shares of the Company’s common stock issuable upon exercise of the Series A Warrants and the Series B Warrants, which was declared effective on August 23, 2021. Warrants In connection with certain of the Company’s collaboration agreements and consulting arrangements, the Company has issued warrants to purchase shares of common stock as payment for services. As of September 30, 2021 and December 31, 2020, collaboration warrants to purchase 0 30,307 No 30,307 none The Series B Warrants are immediately exercisable at a price of $0.001 per share of Common Stock. The holders of the Series B Warrants will not have the right to exercise any portion of the Series B Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% 9.3 During the three and nine months ended September 30, 2021, Warrants to purchase 3,679,630 3,679 The Series A Warrants are immediately exercisable at a price of $3.30 per share of Common Stock. The holders of the Series A Warrants will not have the right to exercise any portion of the Series A Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% The Company evaluated the terms of the warrants issued and determined that they should be classified as equity instruments. The grant date fair value of these warrants was estimated to be $1.98 per share, for a total of approximately $9.2 million. The fair value of these warrants was estimated using a Black-Scholes model utilizing the following key valuation assumptions: the Company’s stock price, a risk free rate of 0.49%, an expected life of 3.6 years and an expected volatility of 138.76%. No Series A Warrants were exercised during the three and nine months ended September 30, 2021. In addition, the Company has outstanding warrants to purchase an aggregate of 333,424 378,453 36.14 2,547 4,032 0.2 No 12,000 41,000 0.1

Share-Based Expense

Share-Based Expense	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Share-Based Expense	9. Share-Based Expense Total share-based expense related to stock options, restricted stock units (“RSUs”) and common stock awards was approximately $ 0.1 0.3 0.4 Share-based compensation expense is classified in the condensed consolidated statements of operations as follows: Schedule of Share-Based Compensation Expense Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development expenses $ 19,236 $ 13,078 $ 48,972 $ 39,372 General and administrative expenses 91,895 97,721 248,365 348,759 $ 111,131 $ 110,799 $ 297,337 $ 388,131 Employee Stock Options During the nine months ended September 30, 2021, the Company granted 200,000 2.34 the Company’s stock price, a risk free rate of 1.08 5.88 134.47 0.1 0.3 0.4 Non-Employee Stock Options The Company did not grant any non-employee stock options during the three and nine months ended September 30, 2021 and 2020. The Company did not recognize any expense related to non-employee stock options during the three and nine months ended September 30, 2021. The Company recognized approximately $ 4,000 11,000 Common Stock Awards The Company did not grant any common stock awards during the three and nine months ended September 30, 2021 and September 30, 2020, respectively. During the three and nine months ended September 30, 2021, the Company issued 7,153 1,188 253

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes During the three and nine months ended September 30, 2021, there was no 30.5 29.6 As of September 30, 2021 and December 31, 2020, the Company did no

Commitments

Commitments	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments	11. Commitments Supplemental cash flow information and non-cash activity related to our operating leases are as follows: Cash flow information regarding leases Nine Months Ended September 30, 2021 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 26,199 Supplemental balance sheet information related to our operating leases are as follows: Supplemental information related to operating leases Balance Sheet Classification September 30, 2021 Right-of-use assets - ST Prepaid expenses and other $ 36,326 Right-of-use assets - LT Other assets $ – Current lease liabilities Accrued expenses and other current liabilities $ 36,326 Non-current lease liabilities Other long-term liabilities $ –

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	12. Related Party Transactions The Company has entered into various research, development, license and supply agreements with Serum Institute and Pharmsynthez (as well as SynBio), each a related party whose relationship has not materially changed from that disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 16, 2021, as amended on April 28, 2021, except as otherwise set forth below. During the fourth quarter of 2019, the Company entered into a loan agreement with Pharmsynthez (the “Pharmsynthez Loan”), pursuant to which the Company advanced Pharmsynthez an aggregate principal amount of up to $ 500,000 10 12,000 35,000 13,000 38,000 Effective January 23, 2021, the Company entered into a First Amendment to Loan Agreement and Other Loan Documents with Pharmsynthez, Kevelt and SynBio (the “Pharmsynthez Loan Extension”) to modify the repayment terms and maturity of the Pharmsynthez Loan to January 2022. The terms of the Pharmsynthez Loan Extension called for two (2) equal monthly principal payments of $ 25,000 Subsequent to the third quarter of 2021, the Company entered into a Second Amendment to Loan Agreement and Other Loan Documents, effective August 31, 2021, with Pharmsynthez, Kevelt and SynBio (the “Second Pharmsynthez Loan Extension”) to modify the repayment terms and maturity of the Pharmsynthez Loan to July 2022. The terms of the Second Pharmsynthez Loan Extension call for an upfront fee of $ 12,500 25,000 0.4 0.5 0.1 During the third quarter of 2019, the Company entered into a Sponsored Research Agreement with Pharmsynthez (the “SRA”) related to experiments identified by the Company to support its efforts for initial tech transfer of the XCART methods to a future academic collaborator. Under the agreement, the Company made a $ 350,000 0.1 0.2 No 40,000 25,000 Under the MSA, Pharmsynthez agreed to provide services pursuant to work orders agreed upon by the parties from time to time, which services include, but are not limited to, acting as the Company’s primary contract research organization to assist in managing collaborations with multiple academic institutions in Russia and Belarus. The Company is required to pay reasonable fees, expenses and pass-through costs incurred by Pharmsynthez in providing the services in accordance with a budget and payment terms set forth in each work order. Additionally, in the event that a work order provides for milestone payments, the Company is required to make such payments to Pharmsynthez, or third party service providers designated by Pharmsynthez, in accordance with the terms set forth in the work order, which milestone payments may be made, at the sole discretion of the Company, in cash or shares of the Company’s common stock. The Company and Pharmsynthez executed a work order on June 12, 2020 (the “Work Order”) under the MSA pursuant to which Pharmsynthez agreed to conduct a Stage 1 study of the Company’s XCART technology under the research program as set forth in the Work Order. The activities to be performed under the Work Order were expected to take approximately 20 months unless earlier terminated in accordance with the MSA. Under the terms of the Work Order, the Company paid Pharmsynthez $51,000 as an initial payment for trial startup costs, which amount was credited against the amounts paid under the SRA. The Work Order provided for additional pass-through costs to be invoiced by Pharmsynthez upon execution of contracts with third party sites, which were to be further credited against the SRA. Through September 30, 2021, all costs incurred under the MSA were credited against the amounts paid under the SRA. Additionally, the Work Order provided for milestone payments of up to an aggregate of $1,050,000, or, in the Company’s sole discretion, up to an aggregate of 1,000,000 shares of the Company’s common stock, to be paid or issued, as applicable, by the Company upon achievement of milestones associated with completion of early stages of the research program as set forth in the Work Order. As of September 30, 2021, approximately $0.1 million of milestone payments had been paid. On October 12, 2021, the Company entered into an Amendment Number One to the Master Services Agreement (the “MSA Amendment”) with Pharmsynthez to, among other things, terminate all work orders under the MSA. As a result, no further services were to be performed under the Work Order and any additional services will be covered by new work orders. In exchange, the Company entered into a new work order (the “Second Work Order”) simultaneously with the MSA Amendment. Under the terms of the Second Work Order, Pharmsynthez shall provide certain enumerated services to support the Company’s development of its XCART technology upon the written request of the Company, which work may be requested by the Company from time to time. Pursuant to the MSA Amendment and Second Work Order, upon entry into the Second Work Order, the Company made a one-time $40,000 payment to Pharmsynthez, of which $21,000 was a one-time payment in full for all money and other compensation owed by the Company under the Work Order, and the remaining $19,000 will be creditable against any out of pocket costs and expenses incurred by Pharmsynthez on behalf of the Company pursuant to any new work orders initiated after the effective date of the MSA Amendment, including the Second Work Order.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events The Company performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined that other than described in Note 12, there were no other such events requiring recognition or disclosure in the financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Preparation of Interim Financial Statements	Preparation of Interim Financial Statements The accompanying condensed consolidated interim financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results for the interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 16, 2021 and amended on April 28, 2021.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements of the Company include the accounts of Hesperix, Xenetic UK and Xenetic UK’s wholly owned subsidiaries: Lipoxen, Xenetic Bioscience, Incorporated, and SymbioTec. All intercompany balances and transactions have been eliminated in consolidation.
Basic and Diluted Net Loss per Share	Basic and Diluted Net Loss per Share The Company computes basic net loss per share by dividing net loss applicable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding during the period. The Company computes diluted net loss per share after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive. For the three and nine months ended September 30, 2021 and 2020, basic and diluted net loss per share are the same for each respective period due to the Company’s net loss position. Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would be anti-dilutive.
Recent Accounting Standards	Recent Accounting Standards In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Schedule of Property and Equipment, Net September 30, December 31, Office and computer equipment $ 42,289 $ 42,289 Furniture and fixtures 14,738 14,738 Property and equipment – at cost 57,027 57,027 Less accumulated depreciation (57,027 ) (57,027 ) Property and equipment – net $ – $ –

Indefinite-Lived Intangible A_2

Indefinite-Lived Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite- Lived Intangible Asset	Schedule of Indefinite- Lived Intangible Asset Balance as of January 1, 2020 $ 9,243,128 Impairment (9,243,128 ) Balance as of September 30, 2020 $ –

Share-Based Expense (Tables)

Share-Based Expense (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Share-Based Compensation Expense	Schedule of Share-Based Compensation Expense Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development expenses $ 19,236 $ 13,078 $ 48,972 $ 39,372 General and administrative expenses 91,895 97,721 248,365 348,759 $ 111,131 $ 110,799 $ 297,337 $ 388,131

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Cash flow information regarding leases	Cash flow information regarding leases Nine Months Ended September 30, 2021 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 26,199
Supplemental information related to operating leases	Supplemental information related to operating leases Balance Sheet Classification September 30, 2021 Right-of-use assets - ST Prepaid expenses and other $ 36,326 Right-of-use assets - LT Other assets $ – Current lease liabilities Accrued expenses and other current liabilities $ 36,326 Non-current lease liabilities Other long-term liabilities $ –

The Company (Details Narrative)

The Company (Details Narrative) - USD ($)	9 Months Ended	11 Months Ended
	Sep. 30, 2021	Dec. 04, 2020
Offsetting Assets [Line Items]
Proceed from private placement	$ 11,500,000
Direct Offering [Member]
Offsetting Assets [Line Items]
Proceeds from stock offering		$ 5,400,000
Private Placement [Member]
Offsetting Assets [Line Items]
Proceed from private placement	$ 11,500,000

Significant Strategic Collabo_2

Significant Strategic Collaborations (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	$ 349,269	$ 115,934	$ 828,088	$ 285,610
Research and development expenses	780,153	573,061	1,934,432	1,240,612
Prepaid expenses and other current asset	878,243		878,243		$ 841,958
Takeda [Member] | Royalty Revenue [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	300,000	100,000	800,000	$ 300,000
Serum Institute [Member] | Royalty Revenue [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	0	0
Syn Bio [Member] | Royalty Revenue [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	0	0
Pharmsynthez [Member] | Royalty Revenue [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	0	$ 0
Scripps Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development expenses			1,800,000
Prepaid expenses and other current asset	$ 200,000		$ 200,000		$ 200,000

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment - at cost	$ 57,027	$ 57,027
Less accumulated depreciation	(57,027)	(57,027)
Property and equipment, net	0	0
Office and Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment - at cost	42,289	42,289
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment - at cost	$ 14,738	$ 14,738

Property and Equipment, net (_2

Property and Equipment, net (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 0	$ 0	$ 0	$ 800

Indefinite-Lived Intangible A_3

Indefinite-Lived Intangible Assets (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, beginning balance	$ 0	$ 9,243,128
Goodwill impairment	(9,243,128)
Goodwill, ending balance	$ 0

Indefinite-Lived Intangible A_4

Indefinite-Lived Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Indefinite-lived Intangible Assets [Line Items]
Asset Impairment Charges	$ 0	$ 9,243,128	$ 0	$ 9,243,128
OncoHist [Member]
Indefinite-lived Intangible Assets [Line Items]
Asset Impairment Charges		$ 9,200,000

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instruments fair value	$ 0	$ 0

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from private placement			$ 11,500,000
Proceeds from warrants exercised			$ 3,679	$ 0
Colllaboration Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding	0		0		30,307
Warrants granted	0	0	0	0
Warrants expired	30,307	0	30,307	0
Series B Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of warrants			$ 9,300,000
Warrants exercised			3,679,630
Proceeds from warrants exercised			$ 3,679
Debt And Equity Financing Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding	333,424		333,424		378,453
Warrants expired	12,000	100,000	41,000	100,000
Warrants exercised	2,547	0	4,032	200,000
Warrants weighted average exercise price	$ 36.14		$ 36.14		$ 36.14

Share-Based Expense (Details -

Share-Based Expense (Details - Share based expense) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 111,131	$ 110,799	$ 297,337	$ 388,131
Research and Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	19,236	13,078	48,972	39,372
General and Administrative Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 91,895	$ 97,721	$ 248,365	$ 348,759

Share-Based Expense (Details Na

Share-Based Expense (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 111,131	$ 110,799	$ 297,337	$ 388,131
All Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	100,000	100,000	300,000	400,000
Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 100,000	100,000	$ 300,000	400,000
Options granted			200,000
Weighted average grant date fair value			$ 2.34
Risk free rate			1.08%
Expected term			5 years 10 months 17 days
Volatility rate			134.47%
Non Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 4,000		$ 11,000
Common Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options granted	7,153	1,188	7,153	1,188
Common stock awards authorized, not issued	253		253

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 0	$ (2,918,518)	$ 0	$ (2,918,518)
Deferred tax valuation allowance	30,500,000		30,500,000		$ 29,600,000
Unrecognized tax positions	$ 0		$ 0		$ 0

Commitments (Details - Cash flo

Commitments (Details - Cash flow Information)	9 Months Ended
	Sep. 30, 2021USD ($)
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$ 26,199

Commitments (Details - lease in

Commitments (Details - lease information)	Sep. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Right-of-use assets - ST	$ 36,326
Right-of-use assets - LT	0
Current lease liabilities	36,326
Non-current lease liabilities	$ 0

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended	13 Months Ended
	Oct. 31, 2021	Feb. 28, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2019	Jan. 23, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Prepaid expenses and other current asset			$ 878,243		$ 878,243				$ 841,958
Research and development expense			780,153	$ 573,061	1,934,432	$ 1,240,612
Research expense accrued			$ 873,010		873,010				609,532
Pharmsynthez [Member]
Related Party Transaction [Line Items]
Monthly principal payments		$ 25,000						$ 25,000
Loan extension fees					$ 12,500
Pharmsynthez [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Monthly principal payments	$ 25,000
Pharmsynthez [Member] | Co Development Agreement [Member]
Related Party Transaction [Line Items]
Payment for note receivable							$ 500,000
Note receivable interest rate			10.00%		10.00%
Interest income			$ 12,000	13,000	$ 35,000	38,000
Pharmsynthez [Member] | Sponsored Research Agreement [Member]
Related Party Transaction [Line Items]
Prepaid expenses and other current asset									100,000
Payment for research agreement							$ 350,000
Research and development expense			0	$ 0	100,000	$ 200,000
Advanced payment									25,000
Pharmsynthez [Member] | Sponsored Research Agreement [Member] | Prepaid Expenses And Other [Member]
Related Party Transaction [Line Items]
Prepaid expenses and other current asset			400,000		400,000				$ 500,000
Research expense accrued			$ 40,000		$ 40,000