Xenetic Biosciences (XBIO) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
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		1,532,600
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 ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 10,725,707	$ 13,097,265
Prepaid expenses and other	1,319,035	556,094
Total current assets	12,044,742	13,653,359
Other assets	704,431	1,066,931
Total assets	12,749,173	14,720,290
Current liabilities:
Accounts payable	221,281	287,360
Accrued expenses and other current liabilities	650,034	785,796
Total current liabilities	871,315	1,073,156
Total liabilities	871,315	1,073,156
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.001 par value; 10,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 1,535,301 and 1,519,360 shares issued as of June 30, 2023 and December 31, 2022, respectively; 1,532,600 and 1,516,659 shares outstanding as of June 30, 2023 and December 31, 2022, respectively	1,536	1,520
Additional paid in capital	207,908,129	207,769,904
Accumulated deficit	(191,007,135)	(189,099,618)
Accumulated other comprehensive income	253,734	253,734
Treasury stock	(5,281,180)	(5,281,180)
Total stockholders' equity	11,877,858	13,647,134
Total liabilities and stockholders' equity	12,749,173	14,720,290
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	Jun. 30, 2023	Dec. 31, 2022
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	1,535,301	1,519,360
Common stock, shares outstanding	1,532,600	1,516,659
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Royalty revenue	$ 651,005	$ 416,710	$ 1,256,849	$ 805,703
Total revenue	651,005	416,710	1,256,849	805,703
Operating costs and expenses:
Research and development	(903,243)	(2,077,499)	(1,498,519)	(3,178,898)
General and administrative	(945,950)	(1,026,290)	(1,871,693)	(1,933,599)
Total operating costs and expenses	(1,849,193)	(3,103,789)	(3,370,212)	(5,112,497)
Loss from operations	(1,198,188)	(2,687,079)	(2,113,363)	(4,306,794)
Other income (expense):
Other income (expense)	21,122	(1,076)	25,642	(877)
Interest income, net	126,103	15,965	180,204	41,870
Total other income	147,225	14,889	205,846	40,993
Net loss	$ (1,050,963)	$ (2,672,190)	$ (1,907,517)	$ (4,265,801)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Earnings Per Share, Basic	$ (0.69)	$ (1.90)	$ (1.25)	$ (3.10)
Earnings Per Share, Diluted	$ (0.69)	$ (1.90)	$ (1.25)	$ (3.10)
Weighted Average Number of Shares Outstanding, Basic	1,524,717	1,406,657	1,520,710	1,375,505
Weighted Average Number of Shares Outstanding, Diluted	1,524,717	1,406,657	1,520,710	1,375,505

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, Common [Member]	Total
Beginning balance, value at Dec. 31, 2021	$ 2,774	$ 1,347	$ 205,964,847	$ (182,547,265)	$ 253,734	$ (5,281,180)	$ 18,394,257
Beginning balance, shares at Dec. 31, 2021	2,774,394	1,346,661
Issuance of common stock in connection with purchase of in-process research and development		$ 88	804,912				805,000
Issuance of common stock in connection with purchase of in-process research and development, shares		87,500
Share-based expense			255,465				255,465
Exercise of purchase warrants
Exercise of purchase warrants, shares		199
Net loss				(4,265,801)			(4,265,801)
Ending balance, value at Jun. 30, 2022	$ 2,774	$ 1,435	207,025,224	(186,813,066)	253,734	(5,281,180)	15,188,921
Ending balance, shares at Jun. 30, 2022	2,774,394	1,434,360
Beginning balance, value at Mar. 31, 2022	$ 2,774	$ 1,347	206,084,442	(184,140,876)	253,734	(5,281,180)	16,920,241
Beginning balance, shares at Mar. 31, 2022	2,774,394	1,346,830
Issuance of common stock in connection with purchase of in-process research and development		$ 88	804,912				805,000
Issuance of common stock in connection with purchase of in-process research and development, shares		87,500
Share-based expense			135,870				135,870
Exercise of purchase warrants
Exercise of purchase warrants, shares		30
Net loss				(2,672,190)			(2,672,190)
Ending balance, value at Jun. 30, 2022	$ 2,774	$ 1,435	207,025,224	(186,813,066)	253,734	(5,281,180)	15,188,921
Ending balance, shares at Jun. 30, 2022	2,774,394	1,434,360
Beginning balance, value at Dec. 31, 2022	$ 2,774	$ 1,520	$ 207,769,904	$ (189,099,618)	$ 253,734	$ (5,281,180)	$ 13,647,134
Beginning balance, shares at Dec. 31, 2022	2,774,394	1,519,360
Issuance of common stock to adjust for reverse split rounding	0	16	(16)	0	0	0	0
Issuance of common stock to adjust for reverse split rounding, shares		15,941
Share-based expense			$ 138,241				$ 138,241
Net loss				(1,907,517)			(1,907,517)
Ending balance, value at Jun. 30, 2023	$ 2,774	$ 1,536	207,908,129	(191,007,135)	253,734	(5,281,180)	11,877,858
Ending balance, shares at Jun. 30, 2023	2,774,394	1,535,301
Beginning balance, value at Mar. 31, 2023	$ 2,774	$ 1,520	$ 207,838,756	$ (189,956,172)	$ 253,734	$ (5,281,180)	$ 12,859,432
Beginning balance, shares at Mar. 31, 2023	2,774,394	1,519,360
Issuance of common stock to adjust for reverse split rounding	0	16	(16)	0	0	0	0
Issuance of common stock to adjust for reverse split rounding, shares		15,941
Share-based expense			$ 69,389				$ 69,389
Net loss				(1,050,963)			(1,050,963)
Ending balance, value at Jun. 30, 2023	$ 2,774	$ 1,536	$ 207,908,129	$ (191,007,135)	$ 253,734	$ (5,281,180)	$ 11,877,858
Ending balance, shares at Jun. 30, 2023	2,774,394	1,535,301

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,907,517)	$ (4,265,801)
Adjustments to reconcile net loss to net cash used in operating activities:
Acquired in-process research and development	0	1,305,000
Amortization of right of use asset	0	19,087
Share-based expense	138,241	255,465
Changes in operating assets and liabilities:
Prepaid expenses and other	(762,941)	11,579
Other assets	362,500	0
Accounts payable, accrued expenses and other liabilities	(201,841)	(141,920)
Net cash used in operating activities	(2,371,558)	(2,816,590)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash paid to acquire in-process research and development	0	(500,000)
Net cash used in investing activities	0	(500,000)
Net change in cash	(2,371,558)	(3,316,590)
Cash at beginning of period	13,097,265	18,244,030
Cash at end of period	10,725,707	14,927,440
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	$ 0	$ 805,000

The Company

The Company	6 Months Ended
	Jun. 30, 2023
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 proprietary Deoxyribonuclease (“DNase”) platform is designed to improve outcomes of existing treatments, including immunotherapies, by targeting neutrophil extracellular traps (“NETs”), which have been implicated in cancer progression and resistance to cancer treatments. 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. 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 along with unregistered trademarks and service marks, including but not limited to XCART, OncoHist™, PolyXen, ErepoXen™, and ImuXen™, which may be 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 for a period of at least twelve months from the date of these financial statements. 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 product 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 was not in compliance with the minimum bid price requirement for continued inclusion on Nasdaq under Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Requirement”). The Notice had no immediate effect on the listing of the Company’s common stock on the Nasdaq Capital Market. On May 15, 2023, the Company effected a reduction, on a 1-for-10 0.001 1.00

Risks and Uncertainties

Risks and Uncertainties	6 Months Ended
	Jun. 30, 2023
Risks and Uncertainties [Abstract]
Risks and Uncertainties	2. Risks and Uncertainties Effects of the COVID-19 Pandemic 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 significantly affected economic conditions in the U.S., accelerating during the first half of March 2020 and continuing throughout 2021 and 2022 and into 2023, 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	6 Months Ended
	Jun. 30, 2023
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, 2022 filed with the SEC on March 22, 2023, and amended on April 28, 2023. On May 15, 2023, the Company effected the Reverse Stock Split. On the effective date of the Reverse Stock Split, (i) every 10 shares of common stock were reduced to one share of common stock, with any fractional amounts rounded up to one share; (ii) the number of shares of common stock into which each outstanding warrant, restricted stock unit, or option to purchase common stock were proportionately reduced on the same basis as the common stock; (iii) the exercise price of each outstanding warrant or option to purchase common stock were proportionately increased on a 1-to-10 basis; and (iv) the number of shares of common stock into which each share of preferred stock were proportionately reduced on the same basis as the common stock. Unless otherwise indicated, all of the share numbers, share prices, and exercise prices have been adjusted in this Quarterly Report, on a retroactive basis, to reflect this 1-for-10 Reverse Stock Split 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. Cash and concentrations of credit risk The Company considers all highly liquid investments with an original maturity of 90 days or less from the date of purchase to be cash equivalents. Investments with original maturities of greater than 90 days from the date of purchase but less than one year from the balance sheet date are classified as short-term investments, while investments with maturities of one year or beyond from the balance sheet date are classified as long-term investments. Management determines the appropriate classification of its cash equivalents and investment securities at the time of purchase and re-evaluates such determination as of each balance sheet date. The carrying amount of cash equivalents approximate their fair value due to the short-term nature of these instruments. Financial instruments that potentially subject the Company to credit risk consist primarily of cash on deposit with financial institutions, the balances of which may exceed federally insured limits. The Company has not experienced any losses on such accounts, and does not believe it is exposed to any unusual credit risk beyond the normal credit risk currently associated with commercial banking relationships. Cash deposits are insured by the Federal Deposit Insurance Corporations up to $ 250,000 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 six months ended June 30, 2023 and 2022, 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	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Significant Strategic Collaborations	4. Significant Strategic Collaborations Takeda Pharmaceutical Co. Ltd. ( together with its wholly-owned subsidiaries, “Takeda”) 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 $ 0.7 million 1.3 million 0.4 million 0.8 million CLS Therapeutics Ltd. (“CLS”) On April 26, 2022, the Company entered into an Exclusive Sublicense Agreement (the “Sublicense 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 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. Concurrent with the Sublicense Agreement, 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. Volition Collaboration On August 2, 2022, the Company announced a research and development collaboration with Belgian Volition SARL Limited (“Volition”) to develop NETs-targeted adoptive cell therapies for the treatment of cancer. The collaboration is an early exploratory program to evaluate the potential combination of Volition’s Nu.Q ® Catalent Pharma Solutions LLC (“Catalent”) On June 30, 2022, the Company entered into a Statement of Work (the “SOW”) with 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 amended or terminated, the manufacturing services contemplated by the SOW are currently targeted to be completed by the first half of 2024. 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. The Company has paid Catalent approximately $ 1.8 million 0.9 million 0.3 million Scripps Research On March 17, 2023, the Company and Scripps Research entered into a Research Funding and Option Agreement (the “Agreement”), pursuant to which the Company has agreed to provide Scripps Research an aggregate of up to $ 938,000 78,000 78,000 Unless earlier terminated, the term of the Agreement continues from the date of the Agreement for fifteen (15) months. The Agreement may be terminated by the Company with 30 days advance written notice to Scripps Research beginning six (6) months after the Effective Date (as defined in the Agreement) or by Scripps Research if the Company fails to make timely payments due under the Agreement, subject to 30 days’ written notice to cure such nonpayment. The Agreement may further be terminated by either party in the event of the other party’s uncured failure to perform any obligations under the Agreement or the bankruptcy of the other party. The Company has paid Scripps Research approximately $ 0.3 million 37,000 Other Agreements The Company has also 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 and its collaborative partners continue to engage in research and development activities with no resultant commercial products through June 30, 2023. No

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements Accounting Standards Codification Topic 820, Fair Value Measurement, no

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Stockholders’ Equity	6. Stockholders’ Equity Common Stock On May 11, 2023, the Company filed a Certificate of Change to the Company’s Articles of Incorporation with the Secretary of State of Nevada to effect the Reverse Stock Split. The Reverse Stock Split was effective at 12:01 a.m., Eastern Time, on May 15, 2023. No fractional shares were issued as a result of the Reverse Stock Split and any remaining share fractions were rounded up to the nearest whole share, resulting in 15,941 Warrants In connection with its July 2021 private placement, the Company issued warrants to purchase an aggregate of 462,963 33.00 February 23, 2025 No In addition, the Company has publicly traded warrants to purchase approximately 2,100 130.00 July 17, 2024 None 30 199 None The Company also has outstanding warrants to purchase approximately 800 29.09 July 3, 2026 None

Share-Based Expense

Share-Based Expense	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Expense	7. Share-Based Expense Total share-based expense related to stock options, restricted stock units and common stock awards was approximately $ 0.1 million 0.1 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Research and development expenses $ 13,778 $ 23,128 $ 27,466 $ 42,306 General and administrative expenses 55,611 112,742 110,775 213,159 $ 69,389 $ 135,870 $ 138,241 $ 255,465 Employee Stock Options No 20,000 0.1 million 0.1 million 0.3 million No none Non-Employee Stock Options There were no 100 No no

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes During the three and six months ended June 30, 2023 and 2022, there was no 39 38.6 million As of June 30, 2023 and December 31, 2022, the Company did no

Commitments

Commitments	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments	Commitments Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Cash flow information regarding leases Six Months Ended June 30, Six Months Ended June 30, 2023 2022 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ – $ 19,087 Supplemental balance sheet information related to the Company’s operating leases is as follows: Supplemental information related to operating leases Balance Sheet Classification June 30, 2023 June 30, 2022 Right-of-use assets - ST Prepaid expenses and other $ – $ 9,611 Current lease liabilities Accrued expenses and other current liabilities $ – $ 9,611

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2023
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, 2022 filed with the SEC on March 22, 2023, as amended on April 28, 2023. 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% Pharmsynthez paid all obligations due under the Pharmsynthez Loan in May 2023, and no further amounts are due under the Pharmsynthez Loan. As a result, the Company recognized approximately $ 65,000 40,000 9,000 0.4 million

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
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 there were no such events requiring recognition or disclosure in the financial statements except as described in footnote 4.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
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, 2022 filed with the SEC on March 22, 2023, and amended on April 28, 2023. On May 15, 2023, the Company effected the Reverse Stock Split. On the effective date of the Reverse Stock Split, (i) every 10 shares of common stock were reduced to one share of common stock, with any fractional amounts rounded up to one share; (ii) the number of shares of common stock into which each outstanding warrant, restricted stock unit, or option to purchase common stock were proportionately reduced on the same basis as the common stock; (iii) the exercise price of each outstanding warrant or option to purchase common stock were proportionately increased on a 1-to-10 basis; and (iv) the number of shares of common stock into which each share of preferred stock were proportionately reduced on the same basis as the common stock. Unless otherwise indicated, all of the share numbers, share prices, and exercise prices have been adjusted in this Quarterly Report, on a retroactive basis, to reflect this 1-for-10 Reverse Stock Split
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.
Cash and concentrations of credit risk	Cash and concentrations of credit risk The Company considers all highly liquid investments with an original maturity of 90 days or less from the date of purchase to be cash equivalents. Investments with original maturities of greater than 90 days from the date of purchase but less than one year from the balance sheet date are classified as short-term investments, while investments with maturities of one year or beyond from the balance sheet date are classified as long-term investments. Management determines the appropriate classification of its cash equivalents and investment securities at the time of purchase and re-evaluates such determination as of each balance sheet date. The carrying amount of cash equivalents approximate their fair value due to the short-term nature of these instruments. Financial instruments that potentially subject the Company to credit risk consist primarily of cash on deposit with financial institutions, the balances of which may exceed federally insured limits. The Company has not experienced any losses on such accounts, and does not believe it is exposed to any unusual credit risk beyond the normal credit risk currently associated with commercial banking relationships. Cash deposits are insured by the Federal Deposit Insurance Corporations up to $ 250,000
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 six months ended June 30, 2023 and 2022, 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)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of share-based compensation expense	Schedule of share-based compensation expense Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Research and development expenses $ 13,778 $ 23,128 $ 27,466 $ 42,306 General and administrative expenses 55,611 112,742 110,775 213,159 $ 69,389 $ 135,870 $ 138,241 $ 255,465

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Cash flow information regarding leases	Cash flow information regarding leases Six Months Ended June 30, Six Months Ended June 30, 2023 2022 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ – $ 19,087
Supplemental information related to operating leases	Supplemental information related to operating leases Balance Sheet Classification June 30, 2023 June 30, 2022 Right-of-use assets - ST Prepaid expenses and other $ – $ 9,611 Current lease liabilities Accrued expenses and other current liabilities $ – $ 9,611

The Company (Details Narrative)

The Company (Details Narrative) - $ / shares	May 15, 2023	Jun. 30, 2023	May 30, 2023	Dec. 31, 2022
Common stock, par value		$ 0.001		$ 0.001
Common Stock [Member]
Reverse stock split	1-for-10
Common stock, par value	$ 0.001
Bid price, per share			$ 1

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	May 15, 2023	Jun. 30, 2023
Accounting Policies [Abstract]
Reverse stock split	1-for-10 Reverse Stock Split
Cash deposits		$ 250,000

Significant Strategic Collabo_2

Significant Strategic Collaborations (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
	Mar. 17, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue		$ 651,005	$ 416,710	$ 1,256,849	$ 805,703
Research and development expenses		903,243	2,077,499	1,498,519	3,178,898
Prepaid Expense and Other Assets, Current		1,319,035		1,319,035		$ 556,094
Prepaid expenses and other		37,000		37,000
Revenues		651,005	416,710	1,256,849	805,703
Collaborative Agreements [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues		0	0	0	0
Takeda [Member] | Royalty Revenue [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue		700,000	$ 400,000	1,300,000	$ 800,000
Catalent Pharma Solutions [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development expenses				1,800,000
Prepaid Expense and Other Assets, Current		$ 900,000		900,000		$ 300,000
Scripps Research [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development expenses	$ 938,000
Initial payment for research	78,000
Monthly payment	$ 78,000
Scripps Research [Member] | Scripps Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development expenses				$ 300,000

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Jul. 31, 2021
Publicly Traded Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise Price	$ 130		$ 130
Maturity date	Jul. 17, 2024		Jul. 17, 2024
Purchase of outstanding warrants	2,100		2,100		2,100
Warrants exercised shares	0	30	0	199
Other Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise Price	$ 29.09		$ 29.09
Maturity date	Jul. 03, 2026		Jul. 03, 2026
Purchase of outstanding warrants	800		800		800
Warrants exercised shares	0	0	0	0
Warrants forfeited shares	0	0	0	0
Private Placement [Member] | Series A Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued						462,963
Exercise Price						$ 33
Maturity date						Feb. 23, 2025
Warrants exercised	0	0	0	0
Warrants forfeited	0	0	0	0
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issuance of common stock to adjust for reverse split rounding, shares	15,941		15,941

Share-Based Expense (Details)

Share-Based Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 69,389	$ 135,870	$ 138,241	$ 255,465
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	13,778	23,128	27,466	42,306
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 55,611	$ 112,742	$ 110,775	$ 213,159

Share-Based Expense (Details Na

Share-Based Expense (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options expense recognized	$ 100,000	$ 100,000	$ 100,000	$ 300,000
Employee Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option granted	0		0	20,000
Stock options exercised	0	0	0	0
Stock options expired	0	0	0	0
Non Employee Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options expense recognized	$ 0	$ 0	$ 0	$ 0
Stock option granted	0	0	0	0
Stock options exercised	0	0	0	0
Stock options expired				0
Non employee stock option grants to purchase shares of common stock expired			100

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 0	$ 0	$ 0	$ 0
Deferred tax valuation allowance	39,000,000		39,000,000		$ 38,600,000
Unrecognized tax positions	$ 0		$ 0		$ 0

Commitments (Details)

Commitments (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$ 0	$ 19,087

Commitments (Details1)

Commitments (Details1) - USD ($)	Jun. 30, 2023	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Right-of-use assets - ST	$ 0	$ 9,611
Current lease liabilities	$ 0	$ 9,611

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Dec. 31, 2019	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Co Development Agreement [Member]
Related Party Transaction [Line Items]
Interest and Fee Income, Other Loans			$ 65,000
Pharmsynthez [Member] | Co Development Agreement [Member]
Related Party Transaction [Line Items]
Payments to Acquire Notes Receivable		$ 500,000
Accrued interest rate		10%
Interest and Fee Income, Other Loans	$ 40,000		$ 40,000	$ 9,000
Pharmsynthez [Member] | Sponsored Research Agreement [Member]
Related Party Transaction [Line Items]
Prepaid expenses and other current asset					$ 400,000