Xenetic Biosciences (XBIO) 10-Q 9 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 04, 2022
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
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	945 Concord Street
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		15,166,596
Common Stock, $0.001 par value per share [Member]
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	XBIO
Security Exchange Name	NASDAQ
Purchase Warrants [Member]
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, 2022	Dec. 31, 2021
Current assets:
Cash	$ 13,848,172	$ 18,244,030
Prepaid expenses and other	319,103	479,399
Total current assets	14,167,275	18,723,429
Other assets	1,405,851	1,091,931
Total assets	15,573,126	19,815,360
Current liabilities:
Accounts payable	202,778	362,470
Accrued expenses and other current liabilities	848,080	1,058,633
Total current liabilities	1,050,858	1,421,103
Total liabilities	1,050,858	1,421,103
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.001 par value; 50,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 14,343,587 and 13,466,603 shares issued as of September 30, 2022 and December 31, 2021, respectively; 14,316,596 and 13,439,612 shares outstanding as of September 30, 2022 and December 31, 2021, respectively	14,342	13,465
Additional paid in capital	207,149,681	205,952,729
Accumulated deficit	(187,617,083)	(182,547,265)
Accumulated other comprehensive income	253,734	253,734
Treasury stock	(5,281,180)	(5,281,180)
Total stockholders' equity	14,522,268	18,394,257
Total liabilities and stockholders' equity	15,573,126	19,815,360
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, 2022	Dec. 31, 2021
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	14,343,587	13,466,603
Common stock, shares outstanding	14,316,596	13,439,612
Series B Preferred Stock [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
Series A Preferred Stock [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, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue:
Royalty revenue	$ 414,250	$ 349,269	$ 1,219,953	$ 828,088
Total revenue	414,250	349,269	1,219,953	828,088
Operating costs and expenses:
Research and development	(398,803)	(780,153)	(3,577,701)	(1,934,432)
General and administrative	(863,233)	(945,115)	(2,796,832)	(2,766,397)
Total operating costs and expenses	(1,262,036)	(1,725,268)	(6,374,533)	(4,700,829)
Loss from operations	(847,786)	(1,375,999)	(5,154,580)	(3,872,741)
Other income (expense):
Other expense	(1,706)	(2,906)	(2,583)	(1,784)
Interest income, net	45,475	28,029	87,345	71,026
Total other income	43,769	25,123	84,762	69,242
Net loss	$ (804,017)	$ (1,350,876)	$ (5,069,818)	$ (3,803,499)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Earnings Per Share, Basic	$ (0.06)	$ (0.13)	$ (0.36)	$ (0.41)
Earnings Per Share, Diluted	$ (0.06)	$ (0.13)	$ (0.36)	$ (0.41)
Weighted Average Number of Shares Outstanding, Basic	14,316,596	10,162,167	13,944,286	9,223,560
Weighted Average Number of Shares Outstanding, Diluted	14,316,596	10,162,167	13,944,286	9,223,560

CONDENSED CONSOLIDATED STATEM_3

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, 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
Share-based expense			297,337				297,337
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
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
Share-based expense			111,131				111,131
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
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
Beginning balance, value at Dec. 31, 2021	$ 2,774	$ 13,465	205,952,729	(182,547,265)	253,734	(5,281,180)	18,394,257
Beginning balance, shares at Dec. 31, 2021	2,774,394	13,466,603
Issuance of common stock in connection with purchase of in-process research and development		$ 875	804,125				805,000
Issuance of common stock in connection with purchase of in-process research and development, shares		875,000
Share-based expense			392,829				392,829
Exercise of purchase warrants		$ 2	(2)
Exercise of purchase warrants, shares		1,984
Net loss				(5,069,818)			(5,069,818)
Ending balance, value at Sep. 30, 2022	$ 2,774	$ 14,342	207,149,681	(187,617,083)	253,734	(5,281,180)	14,522,268
Ending balance, shares at Sep. 30, 2022	2,774,394	14,343,587
Beginning balance, value at Jun. 30, 2022	$ 2,774	$ 14,342	207,012,317	(186,813,066)	253,734	(5,281,180)	15,188,921
Beginning balance, shares at Jun. 30, 2022	2,774,394	14,343,587
Share-based expense			137,364				137,364
Net loss				(804,017)			(804,017)
Ending balance, value at Sep. 30, 2022	$ 2,774	$ 14,342	$ 207,149,681	$ (187,617,083)	$ 253,734	$ (5,281,180)	$ 14,522,268
Ending balance, shares at Sep. 30, 2022	2,774,394	14,343,587

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,069,818)	$ (3,803,499)
Adjustments to reconcile net loss to net cash used in operating activities:
Acquired in-process research and development	1,305,000	0
Amortization of right of use asset	27,043	26,199
Share-based expense	392,829	297,337
Changes in operating assets and liabilities:
Prepaid expenses and other	133,253	(62,484)
Other long-term assets	(313,920)	105,555
Accounts payable, accrued expenses and other liabilities	(370,245)	157,524
Net cash used in operating activities	(3,895,858)	(3,279,368)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash paid to acquire in-process research and development	(500,000)	0
Net cash used in investing activities	(500,000)	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock and warrants	0	11,450,866
Proceeds from exercise of warrants	0	3,679
Net cash provided by financing activities	0	11,454,545
Net change in cash	(4,395,858)	8,175,177
Cash at beginning of period	18,244,030	11,527,552
Cash at end of period	13,848,172	19,702,729
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	0	0
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock to acquire in-process research and development	805,000	0
Issuance of common stock to vendor	0	7
Issuance of common stock from cashless exercise of purchase warrants	$ 2	$ 4

The Company

The Company	9 Months Ended
	Sep. 30, 2022
Company
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 advancing innovative immune-oncology technologies addressing hard to treat cancers. The Company’s Deoxyribonuclease (“DNase”) platform is designed to improve outcomes of existing treatments, including immunotherapies, by targeting neutrophil extracellular traps (“NETs”). Xenetic is currently focused on advancing its systemic DNase program into the clinic as an adjunctive therapy for pancreatic carcinoma and locally advanced or metastatic solid tumors. The Company is also developing its personalized Chimeric Antigen Receptor (“CAR”) T platform technology, XCART ™ ® 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. The Company believes that its existing resources will be adequate to fund the Company’s operations into the first quarter of 2024. However, the Company anticipates it may need additional capital in the long-term to pursue its business initiatives. The terms, timing and extent of any future financing will depend upon several factors, including the achievement of progress in its clinical development programs, its ability to identify and enter into licensing or other strategic arrangements, its continued listing on the Nasdaq Stock Market (“Nasdaq”), and factors related to financial, economic, geo-political, industry and market conditions, many of which are beyond its control. The capital markets for the biotech industry can be highly volatile, which make the terms, timing and extent of any future financing uncertain. On June 3, 2022, the Company received a written notification (the “Notice”) from the Listing Qualifications Department of Nasdaq notifying the Company that the closing bid price for its common stock had been below $1.00 for 30 consecutive business days and that the Company therefore is not in compliance with the minimum bid price requirement for continued inclusion on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Requirement”). The Notice has no immediate effect on the listing of the Company’s common stock on the Nasdaq Capital Market. Under the Nasdaq Listing Rules, the Company has a period of 180 calendar days from the date of the Notice to regain compliance with the Bid Price Requirement. Accordingly, the Company has until November 30, 2022 to regain compliance with the Bid Price Requirement and may be eligible for an additional 180 calendar day compliance period if certain other criteria are met.

Risks and Uncertainties

Risks and Uncertainties	9 Months Ended
	Sep. 30, 2022
Risks and Uncertainties [Abstract]
Risks and Uncertainties	2. Risks and Uncertainties Effects of the COVID-19 During March 2020, a global pandemic was declared by the World Health Organization related to the 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 throughout 2021 and into 2022, as federal, state and local governments reacted 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 remains 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. Impact of the conflict in Ukraine on Operations The short and long-term implications of Russia’s invasion of Ukraine are difficult to predict at this time. The imposition of sanctions and counter sanctions may have an adverse effect on the economic markets generally and could impact our business, financial condition, and results of operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
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, 2021 filed with the SEC on March 22, 2022, and amended on April 28, 2022. 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, 2022 and 2021, 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, 2022
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 Serum Institute of India (“Serum Institute”), PJSC Pharmsynthez (“Pharmsynthez”) and SynBio LLC (“SynBio”), a wholly owned subsidiary of Pharmsynthez. The Company’s collaborative partners continue to engage in research and development activities with no resultant commercial products through September 30, 2022. No In October 2017, the Company granted to Takeda Pharmaceuticals Co. Ltd. (“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 $ 0.4 million 1.2 million 0.3 million 0.8 million On May 15, 2020, the Company and The Scripps Research Institute (“Scripps Research”) entered into a Research Funding and Option Agreement (the “Scripps Agreement”), pursuant to which the Company had 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 was payable by the Company to Scripps Research on a quarterly basis in accordance with a negotiated budget, which provided 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. During the second quarter of 2022, the parties mutually agreed to terminate additional funding under the Scripps Agreement. As a result, Scripps Research agreed to continue to perform work under the agreement until funding previously advanced was expended. The Company paid $ 2.4 million no 0.2 million On June 30, 2022, the Company entered into a Statement of Work (the “SOW”) with Catalent Pharma Solutions, LLC (“Catalent”) to outline the general scope of work, timeline, and pricing pursuant to which Catalent will provide certain services to the Company to perform cGMP manufacturing of the Company’s recombinant protein, Human DNase I. The parties agreed to enter into a Master Services Agreement (“MSA”) that will contain terms and conditions to govern the project contemplated by the SOW and that will supersede the addendum to the SOW containing Catalent's standard terms and conditions. In addition, in the event of any conflict between the project-specific terms and conditions set forth in the SOW and the MSA, the MSA terms and conditions shall govern. The estimated total cost of the project contemplated by the SOW is expected to be up to approximately $5 million (exclusive of certain fees and potential alternatives) for the manufacturing services over the course of the term of the project with each phase of the project invoiced separately in connection with the commencement of such phase. Unless earlier terminated, the manufacturing services contemplated by the SOW are currently expected to take approximately 17 months from the start date. The SOW is terminable by the Company at any time with 30 days' prior written notice to Catalent. The SOW also contains customary provisions related to, among other things, confidentiality, warranties, intellectual property and indemnification. During the three and nine months ended September 30, 2022, the Company paid Catalent $ 0.3 million

Licensing Arrangements

Licensing Arrangements	9 Months Ended
	Sep. 30, 2022
Licensing Arrangements
Licensing Arrangements	5. Licensing Arrangements Exclusive Sublicense Agreement On April 26, 2022, the Company entered into an Exclusive Sublicense Agreement (the “Sublicense Agreement”) with CLS Therapeutics Ltd. (“CLS”) pursuant to which the Company received an exclusive license, under certain patent rights and know-how owned or controlled by CLS, to develop and commercialize pharmaceutical products and methods incorporating DNase enzyme for use in treatment of cancer (the “Sublicensed Products”). Under the terms of the Sublicense Agreement, the Company will have sole responsibility for, and shall use commercially reasonable efforts to, among other things, research, develop and obtain marketing approval for the Sublicensed Products in the U.S. and certain European markets, and to commercialize such Sublicensed Products in the relevant market once marketing approval is obtained. In consideration for the license and other rights granted to the Company under the Sublicense Agreement, the Company issued to CLS 375,000 Exclusive License Agreement On April 26, 2022, the Company entered into an Exclusive License Agreement (the “License Agreement”) with CLS, pursuant to which the Company received an exclusive license under certain patent rights and know-how owned or controlled by CLS to develop and commercialize pharmaceutical products and methods incorporating DNase in conjunction with CAR T therapies (the “Licensed Products”). Under the terms of the License Agreement, the Company will have sole responsibility for, and shall use commercially reasonable efforts to, among other things, research, develop and obtain marketing approval for the Licensed Products in the U.S. and certain European markets, and to commercialize such Licensed Products in the relevant market once marketing approval is obtained. In consideration for the license and other rights granted to the Company under the License Agreement, the Company paid CLS a one-time fee of $ 500,000 500,000 The total consideration for the Sublicense and License Agreements was approximately $ 1.3 million 0.5 million 875,000 0.8 million 1.3 million 0.2 million 0.4 million Patent Assignment and Volition Collaboration On October 4, 2022, the Company completed a patent assignment related to its collaboration with Belgian Volition SARL Limited (“Volition”) and CLS. In connection with the patent assignment, the Company entered into a Subscription Agreement with CLS Therapeutics, LLC, a Delaware limited liability company (“CLS LLC ”) on October 12, 2022, pursuant to which the Company agreed to issue to CLS LLC, and CLS LLC agreed to subscribe for, 850,000 On August 2, 2022, the Company

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	6. Fair Value Measurements Accounting Standards Codification Topic 820, Fair Value Measurement, no

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders’ Equity	7. Stockholders’ Equity Warrants In connection with its July 2021 private placement, the Company issued warrants to purchase an aggregate of 4,629,630 3.30 February 23, 2025 No In addition to the Series A Warrants, warrants to purchase approximately 29,000 31,000 Publicly traded warrants to purchase approximately 21,000 23,000 13.00 July 17, 2024 No 2,547 1,984 4,032 None Warrants to purchase approximately 8,000 2.91 July 3, 2026 None

Share-Based Expense

Share-Based Expense	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Expense	8. Share-Based Expense Total share-based expense related to stock options, restricted stock units and common stock awards was approximately $ 0.1 million 0.4 million 0.3 million 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, 2022 2021 2022 2021 Research and development expenses $ 23,382 $ 19,236 $ 65,688 $ 48,972 General and administrative expenses 113,982 91,895 327,141 248,365 $ 137,364 $ 111,131 $ 392,829 $ 297,337 Employee Stock Options During the nine months ended September 30, 2022, the Company granted 200,000 0.99 the Company’s stock price, a risk free rate of 2.38 5.88 126.32 200,000 0.1 0.4 0.3 Non-Employee Stock Options The Company did no

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes During the three and nine months ended September 30, 2022 and 2021, there was no 32.8 million 31.4 million As of September 30, 2022 and December 31, 2021, the Company did no

Commitments

Commitments	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments	10. Commitments Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Cash flow information regarding leases Nine Months Ended September 30, Nine Months Ended September 30, 2022 2021 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 27,043 $ 26,199 Supplemental balance sheet information related to the Company’s operating leases is as follows: Supplemental information related to operating leases Balance Sheet Classification September 30, 2022 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, 2022
Related Party Transactions [Abstract]
Related Party Transactions	11. Related Party Transactions The Company has entered into various research, development, license and supply agreements with Serum Institute and Pharmsynthez 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, 2021, filed with the SEC on March 22, 2022, as amended on April 28, 2022. 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 9,000 35,000 no 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 Effective August 31, 2021, the Company entered into a Second Amendment to Loan Agreement and Other Loan Documents 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 called for an upfront fee of $ 12,500 25,000 Subsequent to quarter end, the Company entered into a Third Amendment to Loan Agreement and Other Loan Documents with Pharmsynthez, Kevelt and SynBio dated October 31, 2022 (the “Third Pharmsynthez Loan Extension”) primarily to modify the repayment terms and maturity of the Pharmsynthez Loan to May 31, 2023. The terms of the Third Pharmsynthez Loan Extension require certain payments of principal, interest and fees at the signing of the Third Pharmsynthez Loan Extension. In addition, the Third Pharmsynthez Loan Extension requires the repayment of the remaining principal amount, plus interest, in seven (7) monthly installments from November 30, 2022 through May 31, 2023 as well as certain other terms and conditions. All other terms of the Pharmsynthez Loan, as amended, remained in effect. As the payments required under the Third Pharmsynthez Loan Extension have not been received to date and as a result of the ongoing economic uncertainty due to the conflict between Russia and Ukraine and associated sanctions imposed by the U.S. and other countries in response, the Company has classified the loan receivable as long-term as of September 30, 2022 and December 31, 2021. The Company assessed the collectability of the loan and determined that the U.S.-based collateral held by the Company, consisting of all of the common and preferred stock of the Company owned by Pharmsynthez and SynBio, was adequate to support the repayment of the outstanding principal balance. As of September 30, 2022 and December 31, 2021, approximately $ 0.4 million In April 2022, the Company entered into Exclusive License and Sublicense Agreements with CLS as described in Note 5. One of the Company’s directors, Roger Kornberg, is a member of the scientific advisory board of CLS, however, Mr. Kornberg does not own any equity of CLS and is not receiving any economic benefit as a result of the transactions contemplated by the License Agreement and Sublicense Agreement. Mr. Adam Logal, one of our directors, is Senior Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer of OPKO.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	12. 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 Notes 5 and 11, there were no 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, 2022
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, 2021 filed with the SEC on March 22, 2022, and amended on April 28, 2022.
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, 2022 and 2021, 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

Share-Based Expense (Tables)

Share-Based Expense (Tables)	9 Months Ended
	Sep. 30, 2022
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, 2022 2021 2022 2021 Research and development expenses $ 23,382 $ 19,236 $ 65,688 $ 48,972 General and administrative expenses 113,982 91,895 327,141 248,365 $ 137,364 $ 111,131 $ 392,829 $ 297,337

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Cash flow information regarding leases	Cash flow information regarding leases Nine Months Ended September 30, Nine Months Ended September 30, 2022 2021 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 27,043 $ 26,199
Supplemental information related to operating leases	Supplemental information related to operating leases Balance Sheet Classification September 30, 2022 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 $ – $ –

Significant Strategic Collabo_2

Significant Strategic Collaborations (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Rcognized revenue	$ 414,250	$ 349,269	$ 1,219,953	$ 828,088
Revenue	414,250	349,269	1,219,953	828,088
Research and development expenses	398,803	780,153	3,577,701	1,934,432
Prepaid Expense and Other Assets, Current	319,103		319,103		$ 479,399
Payments or costs	300,000
Long term prepayment	300,000		300,000
Scripps Research [Member] | Scripps Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development expenses			2,400,000
Prepaid Expense and Other Assets, Current	0		0		$ 200,000
Collaborative Agreements [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Rcognized revenue			0	0
Royalty Revenue [Member] | Takeda [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue	$ 400,000	$ 300,000	$ 1,200,000	$ 800,000

Licensing Arrangements (Details

Licensing Arrangements (Details Narrative) - USD ($)			1 Months Ended	3 Months Ended	9 Months Ended
	Oct. 12, 2022	Apr. 26, 2022	Apr. 26, 2022	Sep. 30, 2022	Sep. 30, 2022
Offsetting Assets [Line Items]
One-time fee payment				$ 300,000
Number of shares new issues	850,000
Sublicense And License Agreements [Member]
Offsetting Assets [Line Items]
Number of consideration shares issued		875,000
Consideration amount		$ 1,300,000
Payments to Acquire Productive Assets					$ 500,000
Number of shares purchase of asset, value		$ 800,000
Research and development expense					1,300,000
Consulting and transaction costs				$ 200,000	$ 400,000
Sublicense Agreement Shares [Member] | C L S [Member]
Offsetting Assets [Line Items]
Number of consideration shares issued			375,000
Sublicense And License Agreements [Member] | C L S [Member]
Offsetting Assets [Line Items]
Number of consideration shares issued			500,000
One-time fee payment			$ 500,000

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
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) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Jul. 31, 2021
Publicly Traded Warrants [Member]
Class of Stock [Line Items]
Exercise Price	$ 13		$ 13
Maturity date	Jul. 17, 2024		Jul. 17, 2024
Warrants forfeited	0	0	0	0
Warrant Outstanding	21,000		21,000		23,000
Warrants exercised shares	0	2,547	1,984	4,032
Other Warrants [Member]
Class of Stock [Line Items]
Exercise Price	$ 2.91		$ 2.91
Maturity date	Jul. 03, 2026		Jul. 03, 2026
Warrant Outstanding	8,000		8,000		8,000
Warrants exercised shares	0	0	0	0
Warrants forfeited shares	0	0	0	0
Private Placement [Member] | Series A Warrants [Member]
Class of Stock [Line Items]
Warrants issued						4,629,630
Exercise Price						$ 3.30
Maturity date						Feb. 23, 2025
Warrants forfeited	0		0
Warrants exercised	0		0
Warrant Outstanding	29,000		29,000		31,000

Share-Based Expense (Details -

Share-Based Expense (Details - Share based expense) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 137,364	$ 111,131	$ 392,829	$ 297,337
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	23,382	19,236	65,688	48,972
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 113,982	$ 91,895	$ 327,141	$ 248,365

Share-Based Expense (Details Na

Share-Based Expense (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation	$ 100,000	$ 100,000	$ 400,000	$ 300,000
Employee Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option granted			200,000	200,000
Weighted average grant date fair value			$ 0.99
Risk free rate			2.38%
Expected term			5 years 10 months 17 days
Volatility rate			126.32%
Non Employee Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option granted			0	0

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 0	$ 0	$ 0	$ 0
Deferred tax valuation allowance	32,800,000		32,800,000		$ 31,400,000
Unrecognized tax positions	$ 0		$ 0		$ 0

Commitments (Details - Cash flo

Commitments (Details - Cash flow Information) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$ 27,043	$ 26,199

Commitments (Details - lease in

Commitments (Details - lease information) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Right-of-use assets - ST	$ 0	$ 36,326
Right-of-use assets - LT	0	0
Current lease liabilities	0	36,326
Non-current lease liabilities	$ 0	$ 0

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - Pharmsynthez [Member] - USD ($)	1 Months Ended				3 Months Ended			9 Months Ended
	Oct. 31, 2021	Sep. 30, 2021	Feb. 28, 2021	Jan. 23, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2019	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Monthly principal payments	$ 25,000	$ 25,000	$ 25,000	$ 25,000
Loan Extension Fees								$ 12,500
Co Development Agreement [Member]
Related Party Transaction [Line Items]
Payments to Acquire Notes Receivable							$ 500,000
Accrued interest rate					10%			10%
Interest and Fee Income, Other Loans					$ 0	$ 12,000		$ 9,000	$ 35,000
Sponsored Research Agreement [Member]
Related Party Transaction [Line Items]
Prepaid expenses and other current asset					$ 400,000			$ 400,000		$ 400,000