0001104659-21-118339 | 6-K | XBRL Viewer

Document And Entity Information	6 Months Ended
Jun. 30, 2021
Document And Entity Information [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Registrant Name	Akari Therapeutics Plc
Entity Central Index Key	0001541157
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current Assets:
Cash	$ 3,791,586	$ 14,055,777
Prepaid expenses and other current assets	1,012,451	521,880
Total Current Assets	4,804,037	14,577,657
Patent acquisition costs, net	25,546	27,150
Total Assets	4,829,583	14,604,807
Current Liabilities:
Accounts payable	1,685,138	3,380,782
Accrued expenses	1,556,460	1,839,706
Total Liabilities	3,241,598	5,220,488
Commitments and Contingencies
Shareholders' Equity:
Share capital of $0.0001 par value Authorized: 10,000,000,000 ordinary shares; issued and outstanding: 3,964,979,023 and 3,847,331,923 at June 30, 2021 and December 31, 2020, respectively	396,498	384,733
Additional paid-in capital	141,883,409	139,734,651
Capital Redemption Reserve	52,193,811	52,193,811
Accumulated other comprehensive loss	(420,086)	(648,065)
Accumulated deficit	(192,465,647)	(182,280,811)
Total Shareholders' Equity	1,587,985	9,384,319
Total Liabilities and Shareholders' Equity	$ 4,829,583	$ 14,604,807

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - UNAUDITED - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating Expenses:
Research and development expenses	$ 2,183,349	$ 3,020,432	$ 5,712,733	$ 5,752,597
General and administrative expenses	2,146,652	2,891,177	4,165,938	5,085,986
Total Operating Expenses	4,330,001	5,911,609	9,878,671	10,838,583
Loss from Operations	(4,330,001)	(5,911,609)	(9,878,671)	(10,838,583)
Other Income (Expenses):
Interest income	1,515	1,152	5,250	2,162
Changes in fair value of warrant liabilities - (loss)		(1,555,609)		(606,153)
Foreign currency exchange gains (losses)	(12,754)	27,992	(298,608)	261,396
Other expenses	(5,095)	(1,741)	(12,807)	(4,044)
Total Other Expenses	(16,334)	(1,528,206)	(306,165)	(346,639)
Net Loss	(4,346,335)	(7,439,815)	(10,184,836)	(11,185,222)
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(78,118)	(46,037)	227,979	(268,762)
Comprehensive Loss	$ (4,424,453)	$ (7,485,852)	$ (9,956,857)	$ (11,453,984)
Loss per ordinary share (basic and diluted)	$ 0.00	$ 0.00	$ 0.00	$ (0.01)
Weighted average ordinary shares (basic and diluted)	3,847,352,386	3,002,482,637	3,874,631,250	2,759,381,673

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED - USD ($)	Common Stock	Additional Paid-in Capital	Capital Redemption Reserve	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Shareholders' Equity at Dec. 31, 2019	$ 31,987,016	$ 133,568,636		$ (348,860)	$ (165,199,194)	$ 7,598
Shareholders' Equity (in shares) at Dec. 31, 2019	2,245,865,913
Stock-based compensation		100,504				100,504
Issuance of share capital related to financing, net of issuance costs	$ 8,098,632	(970,013)				7,128,619
Issuance of share capital related to financing, net of issuance costs (in shares)	627,029,600
Comprehensive income (loss)				(222,725)	(3,745,407)	(3,968,132)
Shareholders' Equity at Mar. 31, 2020	$ 40,085,648	132,699,127		(571,585)	(168,944,601)	3,268,589
Shareholders' Equity (in shares) at Mar. 31, 2020	2,872,895,513
Shareholders' Equity at Dec. 31, 2019	$ 31,987,016	133,568,636		(348,860)	(165,199,194)	7,598
Shareholders' Equity (in shares) at Dec. 31, 2019	2,245,865,913
Comprehensive income (loss)						(11,453,984)
Shareholders' Equity at Jun. 30, 2020	$ 46,578,543	136,380,909		(617,622)	(176,384,416)	5,957,414
Shareholders' Equity (in shares) at Jun. 30, 2020	3,386,573,113
Shareholders' Equity at Dec. 31, 2019	$ 31,987,016	133,568,636		(348,860)	(165,199,194)	7,598
Shareholders' Equity (in shares) at Dec. 31, 2019	2,245,865,913
Shareholders' Equity at Dec. 31, 2020	$ 384,733	139,734,651	$ 52,193,811	(648,065)	(182,280,811)	9,384,319
Shareholders' Equity (in shares) at Dec. 31, 2020	3,847,331,923
Shareholders' Equity at Mar. 31, 2020	$ 40,085,648	132,699,127		(571,585)	(168,944,601)	3,268,589
Shareholders' Equity (in shares) at Mar. 31, 2020	2,872,895,513
Stock-based compensation		63,330				63,330
Issuance of share capital related to financing, net of issuance costs	$ 5,953,175	3,230,671				9,183,847
Issuance of share capital related to financing, net of issuance costs (in shares)	471,666,700
Issuance of share capital for entering into 2020 Purchase Agreement with Aspire Capital	$ 523,778	376,222				900,000
Issuance of share capital for entering into 2020 Purchase Agreement with Aspire Capital (in shares)	40,760,900
Exercise of warrants	$ 15,941	11,559				27,500
Exercise of warrants (in shares)	1,250,000
Comprehensive income (loss)				(46,037)	(7,439,815)	(7,485,852)
Shareholders' Equity at Jun. 30, 2020	$ 46,578,543	136,380,909		(617,622)	(176,384,416)	5,957,414
Shareholders' Equity (in shares) at Jun. 30, 2020	3,386,573,113
Shareholders' Equity at Dec. 31, 2020	$ 384,733	139,734,651	52,193,811	(648,065)	(182,280,811)	9,384,319
Shareholders' Equity (in shares) at Dec. 31, 2020	3,847,331,923
Stock-based compensation		84,892				84,892
Comprehensive income (loss)				306,097	(5,838,501)	(5,532,404)
Shareholders' Equity at Mar. 31, 2021	$ 384,733	139,819,543	52,193,811	(341,968)	(188,119,312)	3,936,807
Shareholders' Equity (in shares) at Mar. 31, 2021	3,847,331,923
Shareholders' Equity at Dec. 31, 2020	$ 384,733	139,734,651	52,193,811	(648,065)	(182,280,811)	9,384,319
Shareholders' Equity (in shares) at Dec. 31, 2020	3,847,331,923
Comprehensive income (loss)						(9,956,857)
Shareholders' Equity at Jun. 30, 2021	$ 396,498	141,883,409	52,193,811	(420,086)	(192,465,647)	1,587,985
Shareholders' Equity (in shares) at Jun. 30, 2021	3,964,979,023
Shareholders' Equity at Mar. 31, 2021	$ 384,733	139,819,543	52,193,811	(341,968)	(188,119,312)	3,936,807
Shareholders' Equity (in shares) at Mar. 31, 2021	3,847,331,923
Stock-based compensation		82,102				82,102
Issuance of share capital related to financing, net of issuance costs	$ 11,765	1,981,764				1,993,529
Issuance of share capital related to financing, net of issuance costs (in shares)	117,647,100
Comprehensive income (loss)				(78,118)	(4,346,335)	(4,424,453)
Shareholders' Equity at Jun. 30, 2021	$ 396,498	$ 141,883,409	$ 52,193,811	$ (420,086)	$ (192,465,647)	$ 1,587,985
Shareholders' Equity (in shares) at Jun. 30, 2021	3,964,979,023

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities:
Net loss	$ (10,184,836)	$ (11,185,222)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,082	6,921
Stock-based compensation	166,994	163,834
Financing expense		900,000
Changes in fair value of warrant liabilities - gain		606,153
Foreign currency exchange losses (gains)	194,619	(210,896)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(490,958)	(966,222)
Accounts payable and accrued expenses	(1,971,778)	(1,327,686)
Total adjustments	(2,099,041)	(827,896)
Net Cash Used in Operating Activities	(12,283,877)	(12,013,118)
Cash Flows from Financing Activities:
Net proceeds from issuance of shares	1,993,529	19,053,960
Net proceeds from exercise of warrants to purchase shares		27,500
Net Cash Provided by Financing Activities	1,993,529	19,081,460
Effect of Exchange Rates on Cash	26,157	(53,767)
Net (Decrease) Increase in Cash	(10,264,191)	7,014,575
Cash, beginning of period	14,055,777	5,731,691
Cash, end of period	$ 3,791,586	$ 12,746,266

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

NOTE 2 – Summary of Significant Accounting Policies

Basis of Presentation – The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the SEC and assumes that the Company will continue to operate as a going concern. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, including normal and recurring adjustments, which the Company considers necessary for the fair presentation of financial information. The results of operations and comprehensive loss for the three and six months ended June 30, 2021 and June 30, 2020, are not necessarily indicative of expected results for the full fiscal year or any other period. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements as of December 31, 2020 and notes thereto included in the Form 20-F for the year ended December 31, 2020 (“2020 Annual Report”).

Principles of Consolidation – The unaudited Condensed Consolidated Financial Statements include the accounts of the Company, Volution Immuno Pharmaceuticals SA, a private Swiss company, and Akari Malta Limited, a private Maltese company, each wholly-owned subsidiaries. All intercompany transactions have been eliminated.

Foreign Currency – The functional currency of the Company is U.S. dollars, as that is the primary economic environment in which the Company operates as well as the currency in which it has been financed.

The reporting currency of the Company is U.S. dollars. The Company translated its non-U.S. operations’ assets and liabilities denominated in foreign currencies into U.S. dollars at current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded as foreign currency translation adjustments, a component of accumulated other comprehensive loss. Gains or losses from foreign currency transactions are included in foreign currency exchange gains/ (losses).

Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that may affect the reported amounts of assets, liabilities, equity, revenue, expenses and related disclosure of contingent assets and liabilities. Management’s estimates and judgments include assumptions used in the evaluation of impairment and useful lives of intangible assets (patents), accrued liabilities, deferred income taxes, liabilities related to warrants, stock-based compensation and various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates under different assumptions or conditions.

Fair Value Measurements – The carrying amounts of financial instruments, including cash, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value due to their short-term maturities.

The Company accounted for unregistered warrants issued to investors and a placement agent in connection with its 2019 registered direct offering and its 2020 private placements as a warrant liability on the consolidated balance sheets and measured at their grant date fair values and subsequently re-measured at each reporting period, with changes being recorded as a component of Comprehensive Income/ (Loss) and included in changes in fair value of warrant liabilities – gain/ (loss). On December 8, 2020, the Company changed the nominal currency of its ordinary shares from pounds sterling to U.S. dollars and reclassified its warrants from liabilities to shareholders’ equity (See Note 3).

Cash – The Company considers all highly-liquid investments with original maturities of 90 days or less at the time of acquisition to be cash equivalents. The Company had no cash equivalents as of June 30, 2021 and December 31, 2020.

Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist principally of prepaid expenses and VAT receivables.

Property and Equipment, net – Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates:


		Years
Computers, peripheral, and scientific equipment		3
Office furniture and equipment		3

Property and equipment, consists of the following:


	June 30,		December 31,
	2021		2020
Computers, peripheral, and scientific equipment	$	85,489	$	85,489
Office furniture and equipment		79,449		79,449
Total property and equipment		164,938		164,938
Less: Accumulated depreciation		(164,938)		(164,938)
Property and equipment, net	$	—	$	—

Depreciation expense for the three and six months ended June 30, 2021 and 2020 was $0, $0, $2,096 and $5,013, respectively, and was recorded in both research and development expenses and general and administrative expenses in the unaudited Condensed Consolidated Statements of Comprehensive Loss.

Long-Lived Assets – The Company reviews all long-lived assets for impairment whenever events or circumstances indicate the carrying amount of such assets may not be recoverable. Recoverability of assets to be held or used is measured by comparison of the carrying value of the asset to the future undiscounted net cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset exceeds the discounted future cash flows expected to be generated by the asset.

Patent Acquisition Costs – Patent acquisition costs and related capitalized legal fees are amortized on a straight-line basis over the shorter of the legal or economic life. The estimated useful life is 22 years. The Company expenses costs associated with maintaining and defending patents subsequent to their issuance in the period incurred. Amortization of patent acquisition costs for the three and six months ended June 30, 2021 and 2020 was $1,048, $2,082, $946 and $1,908, respectively.

Accrued Expenses – As part of the process of preparing the unaudited condensed consolidated financial statements, the Company estimates accrued expenses. This process involves identifying services that third parties have performed on the Company’s behalf and estimating the level of service performed and the associated cost incurred on these services as of each balance sheet date in the Company’s unaudited condensed consolidated financial statements. Examples of estimated accrued expenses include contract service fees in conjunction with pre-clinical and clinical trials, professional service fees and contingent liabilities. In connection with these service fees, the Company’s estimates are most affected by its understanding of the status and timing of services provided relative to the actual services incurred by the service providers. In the event that the Company does not identify certain costs that have been incurred or it under or over-estimates the level of services or costs of such services, the Company’s reported expenses for a reporting period could be understated or overstated. The date on which certain services commence, the level of services performed on or before a given date, and the cost of services are often subject to the Company’s estimation and judgment. The Company makes these judgments based upon the facts and circumstances known to it in accordance with U.S. GAAP.

Research and Development Expenses – Costs associated with research and development are expensed as incurred unless there is an alternative future use in other research and development projects. Research and development expenses include, among other costs, salaries and personnel–related expenses, fees paid for contract research services, fees paid to clinical research organizations, costs incurred by outside laboratories, manufacturers’ and other accredited facilities in connection with clinical trials and preclinical studies.

Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received. The Company records expenses related to clinical studies and manufacturing development activities based on its estimates of the services received and efforts expended pursuant to contracts with multiple contract research organizations (CROs) and manufacturing vendors that conduct and manage these activities on its behalf. The financial terms of these agreements are subject to negotiation, vary from contract to contract, and may result in uneven payment flows. There may be instances in which payments made to the Company’s vendors will exceed the level of services provided and result in a prepayment of the expense. Payments under some of these contracts depend on factors such as the successful enrollment of subjects and the completion of clinical study milestones. In amortizing or accruing service fees, the Company estimates the time period over which services will be performed, enrollment of subjects, number of sites activated and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the Company’s estimate, the Company will adjust the accrued or prepaid expense balance accordingly.

Research and development expenses for the three and six months ended June 30, 2021 and 2020 were $2,183,349, $5,712,733, $3,020,432 and $5,752,597, respectively. The Company accounts for research and development tax credits at the time its realization becomes probable as a credit to research and development expenses in the Consolidated Statements of Comprehensive Loss.

Stock-Based Compensation Expense – Stock-based compensation expense is recorded using the fair-value based method for all awards granted. Compensation costs for stock options and awards is recorded in earnings (loss) over the requisite service period based on the fair value of those options and awards. For employees and non-employees, fair value is estimated at the grant date, as required by Accounting Standards Codification (ASC) 718, “Compensation-Stock Compensation” and Accounting Standards Updates (ASU) 2018-07, “Compensation - Stock Compensation”. Stock options for non-employee directors for their services as directors acting in their role as members of a board of directors are treated as employees if those directors were elected by the employer’s shareholders or appointed to a board position that will be filled by shareholder election when the existing term expires. Awards granted to those individuals for other services shall be accounted for as awards to non-employees. Fair values of awards granted under the share option plans are estimated using a Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. The Company classifies its stock-based payments which are settled in ordinary shares as equity-classified awards. The Company accounts for awards of equity instruments issued to employees, non-employees and directors under the fair value method of accounting and recognizes such amounts, upon vesting, in general administrative or research and development expenses within its unaudited Condensed Consolidated Statements of Comprehensive Loss.

Leases – The Company accounts for its leases in accordance with Accounting Standards Updates (ASU) No. 2016-02, Leases (“ASU 2016-2). ASU 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company determines if an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys to the Company the right to control the use of an explicitly or implicitly identified fixed asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating leases are classified as right of use (“ROU”) assets, short term lease liabilities, and long-term lease liabilities. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets are amortized and lease liabilities accrete to yield straight-line expense over the term of the lease. Lease payments included in the measurement of the lease liability are comprised of fixed payments. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company applies this policy to all underlying asset categories. Leasehold improvements are capitalized and depreciated over the lesser of useful life or lease term. As of June 30, 2020, the Company did not have a lease with a term longer than twelve months.

Concentration of Credit Risk – Financial instruments that subject the Company to credit risk consist of cash. The Company maintains cash with well-capitalized financial institutions. At times, those amounts may exceed insured limits. The Company has no other significant concentrations of credit risk.

Income Taxes – On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act, referred to herein as the CARES Act, as a response to the economic uncertainty resulting from COVID-19. The CARES Act includes modifications for net operating loss carryovers and carrybacks, limitations of business interest expense for tax, immediate refund of alternative minimum tax (AMT) credit carryovers. Tax provisions of the Act also include the deferral of certain payroll taxes, relief for retaining employees, and other provisions. The Company determined that these provisions did not have a material impact on the consolidated financial statements.

The Company accounts for income taxes in accordance with the accounting rules that require an asset and liability approach to accounting for income taxes based upon the future expected values of the related assets and liabilities. Deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and for tax loss and credit carry forwards and are measured using the expected tax rates estimated to be in effect when such basis differences reverse. Valuation allowances are established, if necessary, to reduce the deferred tax asset to the amount that will, more likely than not, be realized. The Company has recorded a full valuation allowance on its deferred tax assets as of June 30, 2021 and December 31, 2020.

Uncertain Tax Positions – The Company follows the provisions of ASC 740 “Accounting for Uncertainty in Income Taxes”, which prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under ASC 740 “Accounting for Uncertainty in Income Taxes,” an entity may only recognize or continue to recognize tax positions that meet a “more-likely-than-not” threshold. Interest and penalties related to uncertain tax positions are recognized as general and administrative expense. At June 30, 2021 and December 31, 2020, the Company had no uncertain tax positions.

Earnings (Loss) Per Share – Basic earnings (loss) per ordinary share is computed by dividing net income (loss) available to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings (loss) per ordinary share is computed by dividing net income (loss) available to ordinary shareholders by the sum of (1) the weighted-average number of ordinary shares outstanding during the period, (2) the dilutive effect of the assumed exercise of options and warrants using the treasury stock method and (3) the dilutive effect of other potentially dilutive securities. For purposes of the diluted net loss per share calculation, share options and warrants are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company’s net loss position.

Comprehensive Loss – Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s other comprehensive loss is comprised of foreign currency translation adjustments.

The following table provides details with respect to changes in accumulated other comprehensive loss, which is comprised of foreign currency translation adjustments, as presented in the balance sheets at June 30, 2021:


Balance, January 1, 2021	$	(648,065)
Net current period other comprehensive loss		227,979
Balance, June 30, 2021	$	(420,086)

Recent Accounting Pronouncements

Adopted during the period –

On December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. ASU 2019-12 enhances and simplifies various aspects of the income tax accounting guidance in ASC 740 and removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years with early adoption permitted. The Company adopted this guidance effective January 1, 2021. The adoption of the guidance did not have a material impact on the consolidated financial statements.

Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Measurements

Fair Value Measurements

NOTE 3 – Fair Value Measurements

Fair value of financial instruments:

The estimated fair value of financial instruments has been determined by the Company using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Company could realize in a current market exchange.

The carrying amounts of cash, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair value due to the short-term maturity of such instruments.

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 -quoted prices in active markets for identical assets or liabilities;

Level 2 -inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or

Level 3 -unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Warrants –

2019 Registered Direct Offering - On July 3, 2019, the Company sold to certain institutional investors, accredited investors and an existing shareholder, RPC Pharma Ltd., an affiliated entity of Dr. Ray Prudo, the Company’s Chairman, an aggregate of 2,368,392 ADSs in a registered direct offering at $1.90 per ADS, resulting in gross proceeds of approximately $4.5 million (the “2019 Registered Direct Offering”). The Company also entered into a letter agreement with Paulson Investment Company, LLC (the “Placement Agent”) to serve as the placement agent for the Company in connection with this offering. In connection with the sale of the ADSs in the 2019 Registered Direct Offering, the Company issued to the investors unregistered warrants to purchase an aggregate of 1,184,213 ADSs in a private placement (“2019 Investor Warrants”). The 2019 Investor Warrants are immediately exercisable and will expire five years from issuance at an exercise price of $3.00 per ADS, subject to adjustment as set forth therein. Subject to certain conditions, the Company has the option to “call” the exercise of the warrants from time to time after any 10-consecutive trading day period during which the daily volume weighted average price of the ADSs exceeds $4.50. The Company paid to the Placement Agent an aggregate of $337,496 in placement agent fees and expenses and issued unregistered warrants to the Placement Agent to purchase an aggregate of 177,629 ADS (“2019 Placement Agent Warrants”) on the same terms as the 2019 Investor Warrants, except that the 2019 Placement Agent Warrants are exercisable at $2.85 per ADS. Both the 2019 Investor Warrants and the 2019 Placement Agent Warrants (together the “2019 Warrants”) may be exercised on a cashless basis if six months after issuance there is no effective registration statement registering the ADSs underlying the warrants. Pursuant to the cashless exercise provision, the warrant holder must make an additional payment to the Company equal to the nominal value of an ADS (i.e., $0.0001) per warrant ADS actually to be issued pursuant to the cashless exercise. The total amount of 2019 Warrants issued in connection with this registered direct offering amounted to 1,361,842, all of which were outstanding as of June 30, 2021.

2020 Private Placements - On February 13, 2020, February 19, 2020, February 20, 2020 and February 28, 2020, the Company entered into securities purchase agreements with certain accredited and institutional investors, including Dr. Ray Prudo, the Company’s Chairman, providing for the issuance of an aggregate of 5,620,296 ADSs in a private placement at $1.70 per ADS for aggregate gross proceeds of approximately $9.5 million , which subsequently closed (the “ 2020 Private Placements”). The Company also entered into a letter agreement with Paulson Investment Company, LLC to serve as the placement agent for the Company in connection with this offering. In connection with the offering, on February 21, 2020 and March 3, 2020, the Company issued to the investors unregistered warrants to purchase a total of 2,810,136 ADSs at $2.20 per ADS (“2020 Investor Warrants”).

On March 3, 2020, the Company also issued 449,623 ADSs to the Placement Agent at $2.55 per ADS (“2020 Placement Warrants”). The 2020 Investor warrants and the 2020 Placement Agent Warrants (together the “2020 Warrants”) will expire five years from issuance and are immediately exercisable, subject to adjustment as set forth therein. The Company paid to the Placement Agent an aggregate of $808,362 in placement agent fees and expenses. The 2020 Warrants may be exercised on a cashless basis if six months after issuance there is no effective registration statement registering the ADSs underlying the warrants. Pursuant to the cashless exercise provision, the warrant holder must make an additional payment to the Company equal to the nominal value of an ADS (i.e., $0.0001) per warrant ADS actually to be issued pursuant to the cashless exercise. The total amount of the 2020 Warrants issued in connection with the 2020 Private Placements amounted to 3,259,759. 3,247,259 of these warrants were outstanding as of June 30, 2021.

The portion of costs directly attributable to realizing proceeds of issuing ADSs such as placement agent fees, commissions, legal and accounting fees pertaining to the financing and other external, incremental fees and expenses paid to advisors are recognized on a proportional basis as (1) a component of General and Administrative Expenses in the Consolidated Statements of Operations, relative to the grant date fair value of the warrant liability as a portion of the total value of the equity raise, and (2) in the Shareholders’ Equity in the Consolidated Balance Sheets in accordance with ASC 835-30-45-3, relative to the gross cash proceeds of the private placement as a portion of the total value of the equity raise at the time of the equity raise. The total value of the equity raises equal the sum of the grant date fair values of the warrant liability and the gross cash proceeds of the 2019 Registered Direct Offering and the 2020 Private Placements, respectively.

The Company has determined that at the time of their issuance, the 2019 Warrants and the 2020 Warrants (together the “Warrants”) represent freestanding financial instruments whose foreign currency considerations pursuant to cash and cashless exercise require liability classification and should be recorded as liability-classified awards in accordance with ASC 815-40-25, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock and ASC 815-40-15, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock. In accordance with ASC 820, the Company measured its Warrants at grant date fair value. The fair value related to warrants are classified within the Level 3 value hierarchy because it is based on external valuation models whose inputs include market interest rates, required return on capital, and standard deviation. The Warrants were measured at their grant date fair value and subsequently remeasured at each reporting period with changes being recorded as a component of other income in the Consolidated Statements of Comprehensive Income (Loss). The total grant date fair value of the 2019 Warrants was $1,213,816 and of the 2020 Warrants was $2,749,369 and they were initially recognized within Current Liabilities in the Condensed Consolidated Balance Sheets. The change in fair value of liability related to Warrants from period to period, which represents a gain (loss), was recognized as changes in fair value of warrant liabilities - gain (loss) in the Consolidated Statements of Comprehensive Income (Loss ). On December 8, 2020, the Company held a general meeting (“2020 General Meeting”) and changed the currency of its ordinary shares from pounds sterling to US dollars (“2020 Redenomination”). As a consequence of the 2020 Redenomination, the Company is required to reassess, whether its financial instruments or other contracts that previously required derivative accounting within the scope of ASC 815 Financial Instruments either (a) no longer meet the definition of a derivative or (b) meet a scope exception to the derivative guidance due to a change in facts and circumstances. The Company concluded that due to the 2020 Redenomination, the Warrants now meet the requirements for classification as equity under ASC 815-40-25 as of December 8, 2020, the date of the 2020 General Meeting. The Company updated the carrying amount of the warrant liability to its fair value on December 8, 2020, with any changes recorded in the Consolidated Statements of Comprehensive Loss and then reclassed the warrant liability balance to Additional paid-in capital within Shareholders’ Equity.

At December 8, 2020, the fair value of the 2019 Warrants and 2020 Warrants was $882,237 and $2,317,316, respectively, totaling $3,199,553 which was reclassed to Additional paid-in capital within Shareholders’ Equity. The change in fair value of the 2019 Warrants from January 1, 2020 to December 8, 2020 was a decrease of $132,632 and of the outstanding 2020 Warrants for the same period was a decrease of $432,053. In addition, upon exercise of 12,500 of the 2020 Investor Warrant, the Company reclassified $7,874 of the related warrant liability to shareholders’ equity. As a result of the 2020 Redenomination, there were no changes in the fair value of the 2019 Warrants or the 2020 Warrants recorded for the three and six months ended June 30, 2021. The change in fair value of the 2019 Warrants in the three months ended June 30, 2020 was an increase of $464,803 and for the six months ended June 30, 2020 was an increase of $260,526. The change in fair value of the outstanding 2020 Warrants in the three months ended June 30, 2020 was an increase of $1,090,806 and for the six months ended June 30, 2020 was an increase of $345,627.

Below are the assumptions used for the fair value calculations of the 2019 Warrants as of:


	December 31,		December 8,
	2019		2020
Standard deviation	110.00	%	95.00	%
Annual risk-free interest rate	1.66	%	0.25	%
Required return on equity	19.90	%	19.30	%
Expected life in years	4.50		3.55
Annual turnover rate	0.00	%	0.00	%
Period risk-free rate	0.08	%	0.08	%

Below are the assumptions used for the fair value calculations of the 2020 Warrants as of:


	February 21,		March 3,		December 8,
	2020		2020		2020
Standard deviation	110.00	%	110.00	%	95.00	%
Annual risk-free interest rate	1.3	%	0.77	%	0.25	%
Required return on equity	19.90	%	19.90	%	19.30	%
Expected life in years	5.0		5.0		3.55
Annual turnover rate	0.00	%	0.00	%	0.00	%
Period risk-free rate	0.08	%	0.08	%	0.08	%

As of June 30, 2021 and December, 31, 2020, the Company did not have any financial assets that require fair value measurement on a recurring basis. Until December 8, 2020, the Company accounted for unregistered warrants issued in connection with the 2019 Registered Direct Offering and the 2020 Private Placements as a warrant liability on the consolidated balance sheets and measured at their grant date fair values and subsequently re-measured at each reporting period, with changes being recorded as a component of Comprehensive Income/ (Loss) and included in changes in fair value of warrant liabilities - gain/ (loss). On December 8, 2020, the Company changed the nominal currency of its ordinary shares from pounds sterling to U.S. dollars and reclassified its warrants from liabilities to shareholders’ equity.

Fair value measurements using significant unobservable inputs (Level 3):


	Fair value of
	liabilities related
	to warrants
Balance at December 31, 2019	$	1,014,868

Issuance of 2020 Paulson Warrants		2,749,369

Reclassification of warrant liability to shareholders’ equity upon exercise of 12,500 warrant ADSs		(7,874)

Change in fair value of liabilities related to warrants		(556,810)

Balance at December 8, 2020		3,199,553

Reclassification to Additional-Paid-In Capital (in) Shareholders' Equity		(3,199,553)

Balance at December 31, 2020	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Shareholders' Equity

6 Months Ended

Jun. 30, 2021

Shareholders' Equity

Shareholders' Equity

NOTE 4 – Shareholders’ Equity

2020 Purchase Agreement and Registration Rights Agreement with Aspire Capital –

On June 30, 2020, the Company entered into a Purchase Agreement (“2020 Purchase Agreement”) with Aspire Capital, which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $30.0 million of the Company’s ADS, with each ADS representing one hundred (100) ordinary shares, during a 30-month period beginning on the effective date of a registration statement related to the transaction. Concurrently with entering into the 2020 Purchase Agreement, the Company also entered into a registration rights agreement with Aspire Capital, in which the Company agreed to file one or more registration statements, as permissible and necessary to register under the Securities Act of 1933, as amended (the “Securities Act”), the sale of the Company’s securities that have been and may be issued to Aspire Capital under the 2020 Purchase Agreement.

Under the 2020 Purchase Agreement, after the SEC declared effective the registration statement referred to above (which occurred in July 2020), on any trading day selected by the Company, the Company has the right, in its sole discretion, to present Aspire Capital with a purchase notice (each, a “Purchase Notice”), directing Aspire Capital (as principal) to purchase up to 150,000 ADSs per business day and up to $30.0 million of the Company’s ADSs in the aggregate at a per share price (the “Purchase Price”) equal to the lesser of:

the lowest sale price of the Company’s ADSs on the purchase date; or

the arithmetic average of the three (3) lowest closing sale prices for the ADSs during the ten (10) consecutive business days ending on the business day immediately preceding such Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

In addition, on any date on which the Company submits a Purchase Notice to Aspire Capital in an amount of 150,000 ADSs, the Company also has the right, in its sole discretion, to present Aspire Capital with a volume-weighted average price purchase notice (each, a “VWAP Purchase Notice”) directing Aspire Capital to purchase an amount of ADSs equal to up to 30% of the aggregate shares of the Company’s ADSs traded on its principal market on the next trading day (the “VWAP Purchase Date”), subject to a maximum number of 250,000 ADSs. The purchase price per share pursuant to such VWAP Purchase Notice is generally 97% of the volume-weighted average price for the Company’s ADSs traded on its principal market on the VWAP Purchase Date.

The Purchase Price will be adjusted for any reorganization, recapitalization, non-cash dividend, stock split, or other similar transaction occurring during the period(s) used to compute the Purchase Price. The Company may deliver multiple Purchase Notices and VWAP Purchase Notices to Aspire Capital from time to time during the term of the Purchase Agreement, so long as the most recent purchase has been completed.

The 2020 Purchase Agreement provides that the Company and Aspire Capital shall not effect any sales under the Purchase Agreement on any purchase date where the closing sale price of the Company’s ADSs is less than $0.25. Additionally, governing law in the United Kingdom, where the Company is incorporated, requires a minimum payment per ADS to be issued pursuant to a purchase notice equal to the nominal value of an ADS (i.e., $0.0001). There are no trading volume requirements or restrictions under the Purchase Agreement, and the Company will control the timing and amount of sales of the Company’s ADSs to Aspire Capital. Aspire Capital has no right to require any sales by the Company, but is obligated to make purchases from the Company as directed by the Company in accordance with the Purchase Agreement. There are no limitations on use of proceeds, financial or business covenants, restrictions on future fundings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement.

In accordance with ASC 815-40-15, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock, since the ultimate floor price, which is effectively the nominal value of the ADS which was denominated in GBP at the time of entering into the 2018 Purchase agreement as well as the 2020 Purchase Agreement (together “the Purchase Agreements”) prior to the 2020 Redenomination, the number of shares issuable under the contract was impacted by foreign currency, therefore ASC 815-40-15-7I precluded the Purchase Agreements from being indexed to the Company’s own stock. The Company determined that the right to sell shares to Aspire Capital under the Purchase Agreements represents a freestanding put option that met the criteria of a derivative pursuant to ASC 815 Derivatives and Hedging. Since the purchase price per share pursuant to the Purchase Agreements is at the market, the Company concluded that the put option has a fair value of zero, and therefore no additional accounting related to the put option was required.

In consideration for entering into the 2020 Purchase Agreement, the Company issued to Aspire Capital 40,760,900 ordinary shares of the Company (the “2020 Commitment Shares”) which had a fair value of approximately $900,000. Since the Company has determined that the 2020 Purchase Agreement was considered a freestanding put option derivative in accordance with ASC 815 Derivatives and Hedging when entering into the agreement, the Company recorded the value of the 2020 Commitment Shares in General and administrative expenses in the Consolidated Statements of Comprehensive Loss. The 2020 Purchase Agreement may be terminated by the Company at any time, at its discretion, without any cost to the Company. Aspire Capital has agreed that neither it nor any of its agents, representatives and affiliates shall engage in any direct or indirect short-selling or hedging of the Company’s securities during any time prior to the termination of the 2020 Purchase Agreement. Any proceeds the Company receives under the 2020 Purchase Agreement are expected to be used for working capital and general corporate purposes.

During the twelve months ended December 31, 2020, the Company sold to Aspire Capital 460,758,800 ordinary shares of the Company for gross proceeds of approximately $6,000,000. During the six months ended June 30, 2021, the Company sold to Aspire Capital 117,647,100 ordinary shares of the Company for gross proceeds of $2,000,001. As of June 30, 2021, approximately $22 million of the original purchase commitment of $30 million remains available under the facility.

2020 Private Placements –

On February 13, 2020, February 19, 2020, February 20, 2020 and February 28, 2020, the Company entered into securities purchase agreements with certain accredited and institutional investors, including Dr. Ray Prudo, the Company’s Chairman, providing for the issuance of an aggregate of 5,620,296 ADSs in a private placement at $1.70 per ADS for aggregate gross proceeds of approximately $9.5 million, which subsequently closed. The Company also entered into a letter agreement with Paulson Investment Company to serve as the placement agent for the Company in connection with this offering. In connection with the offering, the Company issued to the investors unregistered warrants to purchase 2,810,136 ADSs at $2.20 per ADS and 449,623 ADSs to the Placement Agent at $2.55 per ADS (See Note 3).

2019 Registered Direct Offering –

On July 3, 2019, the Company sold to certain institutional investors, accredited investors and an existing shareholder, RPC Pharma Ltd., an affiliated entity of Dr. Ray Prudo, the Company’s Chairman, an aggregate of 2,368,392 ADSs in a registered direct offering at $1.90 per ADS, resulting in gross proceeds of approximately $4.5 million. The Company also entered into a letter agreement with the Paulson Investment Company to serve as the placement agent for the Company in connection with this offering. In connection with the sale of the ADSs in the 2019 Registered Direct Offering, the Company issued unregistered warrants to investors and the Placement Agent to purchase an aggregate of 1,361,842 ADSs in a private placement at $3.00 per ADS and $2.85 per ADS respectively (See Note 3).


			Balance	Warrants	Warrants	Balance	Balance
	Exercise		December 31,	Issued	Exercised	December 31,	June 30,
Description	Price		2019	in 2020	in 2020	2020	2021
2019 Investor Warrants	$	3.00	1,184,213	—	—	1,184,213	1,184,213
2019 Placement Warrants	$	2.85	177,629	—	—	177,629	177,629
2020 Investor Warrants	$	2.20	—	2,810,136	(12,500)	2,797,636	2,797,636
2020 Placement Warrants	$	2.55	—	449,623	—	449,623	449,623
			1,361,842	3,259,759	(12,500)	4,609,101	4,609,101

2018 Purchase Agreement and Registration Rights Agreement with Aspire Capital –

On September 26, 2018, the Company entered into a Purchase Agreement (“2018 Purchase Agreement”) with Aspire Capital, which provided that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital was committed to purchase up to an aggregate of $20.0 million of the Company’s ADS, with each ADS representing one hundred (100) ordinary shares, during a 30-month period beginning on the effective date of a registration statement related to the 2018 Purchase Agreement. Concurrently with entering into the 2018 Purchase Agreement, the Company also entered into a registration rights agreement with Aspire Capital, in which the Company agreed to file one or more registration statements, as permissible and necessary to register under the Securities Act, the sale of the Company’s securities that have been and may be issued to Aspire Capital under the 2018 Purchase Agreement.

Under the 2018 Purchase Agreement, after the SEC declared effective the registration statement referred to above (which occurred in March 2019), on any trading day selected by the Company, the Company had the right, in its sole discretion, to present Aspire Capital with a purchase notice (each, a “Purchase Notice”), directing Aspire Capital (as principal) to purchase up to 150,000 ADSs per business day and up to $20.0 million of the Company’s ADSs in the aggregate at a per share price (the “Purchase Price”) equal to the lesser of:

the lowest sale price of the Company’s ADSs on the purchase date; or

In addition, on any date on which the Company submitted a Purchase Notice to Aspire Capital in an amount of 150,000 ADSs, the Company also had the right, in its sole discretion, to present Aspire Capital with a volume-weighted average price purchase notice (each, a “VWAP Purchase Notice”) directing Aspire Capital to purchase an amount of ADSs equal to up to 30% of the aggregate shares of the Company’s ADSs traded on its principal market on the next trading day (the “VWAP Purchase Date”), subject to a maximum number of 250,000 ADSs. The purchase price per share pursuant to such VWAP Purchase Notice was generally 97% of the volume-weighted average price for the Company’s ADSs traded on its principal market on the VWAP Purchase Date.

The Purchase Price was adjustable for any reorganization, recapitalization, non-cash dividend, stock split, or other similar transaction occurring during the period(s) used to compute the Purchase Price. The Company could deliver multiple Purchase Notices and VWAP Purchase Notices to Aspire Capital from time to time during the term of the Purchase Agreement, so long as the most recent purchase has been completed.

The Purchase Agreement provided that the Company and Aspire Capital shall not effect any sales under the Purchase Agreement on any purchase date where the closing sale price of the Company’s ADSs is less than $0.25. There were no trading volume requirements or restrictions under the Purchase Agreement, and the Company controlled the timing and amount of sales of the Company’s ADSs to Aspire Capital. Aspire Capital had no right to require any sales by the Company, but was obligated to make purchases from the Company as directed by the Company in accordance with the Purchase Agreement. There were no limitations on use of proceeds, financial or business covenants, restrictions on future fundings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement.

In consideration for entering into the Purchase Agreement, concurrently with the execution of the Purchase Agreement, the Company issued to Aspire Capital 30,000,000 ordinary shares of the Company (the “2018 Commitment Shares”) and sold to Aspire Capital 25,000,000 ordinary shares (the “2018 Initial Shares”) for gross proceeds of $500,000. The Company recorded the value of the 2018 Commitment Shares as general and administrative expenses in its Consolidated Statements of Comprehensive Loss. Aspire Capital agreed that neither it nor any of its agents, representatives and affiliates shall engage in any direct or indirect short-selling or hedging of the Company’s securities during any time prior to the termination of the 2018 Purchase Agreement. Any proceeds the Company received under the 2018 Purchase Agreement were used for working capital and general corporate purposes. The Company terminated the 2018 Purchase Agreement on June 30, 2020.

Share option plan – In accordance with the Company’s 2014 Equity Incentive Plan (the “Plan”), the number of shares that may be issued upon exercise of options under the Plan shall not exceed 400,000,000 ordinary shares. At June 30, 2021, 276,550,965 ordinary shares are available for future issuance under the Plan. The option plan is administered by the Company’s Board of Directors and grants are made pursuant thereto by the compensation committee. The per share exercise price for the shares to be issued pursuant to the exercise of an option shall be such price equal to the fair market value of the Company’s ordinary shares on the grant date and set forth in the individual option agreement. Options expire ten years after the grant date and typically vest over one to four years.

The following is a summary of the Company’s share option activity and related information for employees and directors for the period ended June 30, 2021:


						Weighted
						average
		Weighted		Weighted		remaining
		average		average		contractual	Aggregate
	Number	exercise		grant date		term	intrinsic
	of shares	price		fair value		(in years)	value
Options outstanding as of January 1, 2021	112,649,035	$	0.09			7.1	$	9,550
Changes during the period:
Granted	10,800,000	$	0.02		0.02	10.0	$	—
Forfeited	—		—		—	—		—
Options outstanding at June 30, 2021	123,449,035	$	0.08			6.9	$	4,000
Exercisable options at June 30, 2021	87,586,535	$	0.11			6.3	$	—

The Company measures compensation cost for all share-based awards at fair value on the date of grant and recognizes compensation expense in general administrative and research and development expenses within its unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) using the straight-line method over the service period over which it expects the awards to vest.

The Company estimates the fair value of all time-vested options as of the date of grant using the Black-Scholes option valuation model, which was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Option valuation models require the input of highly subjective assumptions, including the expected share price volatility, which is calculated based on the historical volatility of peer companies. The Company uses a risk-free interest rate, based on the U.S. Treasury instruments in effect at the time of the grant, for the period comparable to the expected term of the option. Given its limited history with share option grants and exercises, the Company uses the “simplified” method in estimating the expected term, the period of time that options granted are expected to be outstanding, for its grants.

The Company classifies its stock-based payments which are settled in ordinary shares as equity-classified awards.

The Company measures equity-classified awards at their grant date fair value and does not subsequently re-measure them. Compensation costs related to equity-classified awards generally are equal to the grant date fair value of the award amortized over the vesting period of the award.

Below are the assumptions used for the options granted during the six months ended June 30, 2021:


	June 30, 2021
Expected dividend yield	0	%
Expected volatility	70.66%-82.22	%
Risk-free interest	0.64%-0.87	%
Expected life	5.5-6.25 years

The following is a summary of the Company’s share options granted separated into ranges of exercise price as of June 30, 2021:


					Remaining
		Weighted			contractual
		average	Weighted		life (years	Weighted
Exercise		remaining	average		for	average
price	Options	contractual	exercise	Options	exercisable	exercise
(range) ($)	outstanding	life (years)	price ($)	exercisable	options)	price ($)
0.02-0.05	88,400,000	7.82	0.02	52,537,500	7.43	0.03
0.12-0.19	18,334,629	4.81	0.15	18,334,629	4.81	0.15
0.32	16,714,406	4.23	0.32	16,714,406	4.23	0.32
	123,449,035			87,586,535

During the three and six months ended June 30, 2021 and 2020, the Company recorded approximately $ 82,102, $166,994, $63,330 and $163,834, respectively, in stock-based compensation expenses for employees and directors. At June 30, 2021, there was approximately $347,445 of unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s share option plans which the Company expects to recognize over a weighted average of 1.8 years.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Foreign Currency

Use of Estimates

Fair Value Measurements

Cash

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist principally of prepaid expenses and VAT receivables.

Property and Equipment, net


		Years
Computers, peripheral, and scientific equipment		3
Office furniture and equipment		3

Property and equipment, consists of the following:


	June 30,		December 31,
	2021		2020
Computers, peripheral, and scientific equipment	$	85,489	$	85,489
Office furniture and equipment		79,449		79,449
Total property and equipment		164,938		164,938
Less: Accumulated depreciation		(164,938)		(164,938)
Property and equipment, net	$	—	$	—

Long-Lived Assets

Patent Acquisition Costs

Accrued Expenses

Research and Development Expenses

Stock-Based Compensation Expense

Leases

Concentration of Credit Risk

Income Taxes

Uncertain Tax Positions

Earnings (Loss) Per Share

Comprehensive Income (Loss)


Balance, January 1, 2021	$	(648,065)
Net current period other comprehensive loss		227,979
Balance, June 30, 2021	$	(420,086)

Recent Accounting Pronouncements

Adopted during the period –

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Measurements

Schedule of assumptions used for the fair value calculations

Below are the assumptions used for the fair value calculations of the 2019 Warrants as of:


	December 31,		December 8,
	2019		2020
Standard deviation	110.00	%	95.00	%
Annual risk-free interest rate	1.66	%	0.25	%
Required return on equity	19.90	%	19.30	%
Expected life in years	4.50		3.55
Annual turnover rate	0.00	%	0.00	%
Period risk-free rate	0.08	%	0.08	%

Below are the assumptions used for the fair value calculations of the 2020 Warrants as of:


	February 21,		March 3,		December 8,
	2020		2020		2020
Standard deviation	110.00	%	110.00	%	95.00	%
Annual risk-free interest rate	1.3	%	0.77	%	0.25	%
Required return on equity	19.90	%	19.90	%	19.30	%
Expected life in years	5.0		5.0		3.55
Annual turnover rate	0.00	%	0.00	%	0.00	%
Period risk-free rate	0.08	%	0.08	%	0.08	%

Schedule of fair value measurements using significant unobservable inputs (Level 3)

Fair value measurements using significant unobservable inputs (Level 3):


	Fair value of
	liabilities related
	to warrants
Balance at December 31, 2019	$	1,014,868

Issuance of 2020 Paulson Warrants		2,749,369

Reclassification of warrant liability to shareholders’ equity upon exercise of 12,500 warrant ADSs		(7,874)

Change in fair value of liabilities related to warrants		(556,810)

Balance at December 8, 2020		3,199,553

Reclassification to Additional-Paid-In Capital (in) Shareholders' Equity		(3,199,553)

Balance at December 31, 2020	$	—

Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2021

Shareholders' Equity

Schedule of Stockholders' Equity Note, Warrants or Rights


			Balance	Warrants	Warrants	Balance	Balance
	Exercise		December 31,	Issued	Exercised	December 31,	June 30,
Description	Price		2019	in 2020	in 2020	2020	2021
2019 Investor Warrants	$	3.00	1,184,213	—	—	1,184,213	1,184,213
2019 Placement Warrants	$	2.85	177,629	—	—	177,629	177,629
2020 Investor Warrants	$	2.20	—	2,810,136	(12,500)	2,797,636	2,797,636
2020 Placement Warrants	$	2.55	—	449,623	—	449,623	449,623
			1,361,842	3,259,759	(12,500)	4,609,101	4,609,101

Schedule of share option activity and related information for employees and directors


						Weighted
						average
		Weighted		Weighted		remaining
		average		average		contractual	Aggregate
	Number	exercise		grant date		term	intrinsic
	of shares	price		fair value		(in years)	value
Options outstanding as of January 1, 2021	112,649,035	$	0.09			7.1	$	9,550
Changes during the period:
Granted	10,800,000	$	0.02		0.02	10.0	$	—
Forfeited	—		—		—	—		—
Options outstanding at June 30, 2021	123,449,035	$	0.08			6.9	$	4,000
Exercisable options at June 30, 2021	87,586,535	$	0.11			6.3	$	—

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions


	June 30, 2021
Expected dividend yield	0	%
Expected volatility	70.66%-82.22	%
Risk-free interest	0.64%-0.87	%
Expected life	5.5-6.25 years

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range


					Remaining
		Weighted			contractual
		average	Weighted		life (years	Weighted
Exercise		remaining	average		for	average
price	Options	contractual	exercise	Options	exercisable	exercise
(range) ($)	outstanding	life (years)	price ($)	exercisable	options)	price ($)
0.02-0.05	88,400,000	7.82	0.02	52,537,500	7.43	0.03
0.12-0.19	18,334,629	4.81	0.15	18,334,629	4.81	0.15
0.32	16,714,406	4.23	0.32	16,714,406	4.23	0.32
	123,449,035			87,586,535

Nature of Business (Details) - USD ($)		1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
Nature of Business (Details) - USD ($)	Feb. 28, 2020	Jun. 30, 2020	Sep. 26, 2018	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Nature Of Business
Retained Earnings (Accumulated Deficit)				$ 192,465,647		$ 192,465,647		$ 182,280,811
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		$ 12,746,266		3,791,586	$ 12,746,266	3,791,586	$ 12,746,266	14,055,777	$ 5,731,691
Net Cash Provided by (Used in) Operating Activities						(12,283,877)	(12,013,118)
Net Income (Loss) Attributable to Parent				(4,346,335)	$ (7,439,815)	(10,184,836)	$ (11,185,222)
Aspire Capital Fund LLC
Nature Of Business
Amount available under the share purchase commitment facility				22,000,000		22,000,000
Gross proceeds		$ 30,000,000	$ 20,000,000			2,000,001
2020 Purchase Agreement
Nature Of Business
Amount available under the share purchase commitment facility				$ 22,000,000		22,000,000
Gross proceeds	$ 9,500,000
2020 Purchase Agreement \| Aspire Capital Fund LLC
Nature Of Business
Gross proceeds						$ 30,000,000		$ 6,000,000
Long-term Purchase Commitment, Period						30 months

Fair Value Measurements - Additional Information (Details) - USD ($)					3 Months Ended	6 Months Ended		12 Months Ended
	Dec. 08, 2020	Mar. 03, 2020	Feb. 28, 2020	Jul. 03, 2019	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Feb. 21, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of warrant liabilities - (loss)					$ (1,555,609)		$ (606,153)
Aggregate ADSs issued (in shares)			5,620,296
Nominal value of ADS (in per warrant ADS)						$ 0.0001		$ 0.0001
Warrants issued								3,259,759
Warrants outstanding (in shares)						4,609,101		4,609,101		1,361,842
Total grant date fair value of warrants	$ 3,199,553
Exercise of warrants ADS						12,500
Investor Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Exercise of warrants ADS	12,500
Reclassification of warrant liability to shareholders' equity	$ 7,874
2019 Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of warrant liabilities - (loss)					464,803		260,526
Total grant date fair value of warrants						$ 1,213,816
Fair value of warrants	882,237							$ 132,632
2020 Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of warrant liabilities - (loss)					$ 1,090,806		$ 345,627
Total grant date fair value of warrants						$ 2,749,369
Fair value of warrants	$ 2,317,316							$ 432,053
2019 Registered Direct Offering
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate ADSs issued (in shares)				2,368,392
Share issue price (in dollars per ADS)				$ 1.90
Gross proceeds from issuance				$ 4,500,000
Exercise price of warrants (in dollars per ADS)				$ 4.50
Threshold period for exercise of warrants on cashless basis				6 months
Warrants outstanding (in shares)						1,361,842
2019 Registered Direct Offering \| Investor Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants issued to purchase ADS (in shares)				1,184,213
Term of the warrants				5 years
Exercise price of warrants (in dollars per ADS)				$ 3.00
2019 Registered Direct Offering \| Placement Agent Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants issued to purchase ADS (in shares)				177,629
Exercise price of warrants (in dollars per ADS)				$ 2.85
Placement agent fees and expenses				$ 337,496
Private Placement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate ADSs issued (in shares)			5,620,296
Share issue price (in dollars per ADS)			$ 1.70
Gross proceeds from issuance			$ 9,500,000
Threshold period for exercise of warrants on cashless basis		6 months
Nominal value of ADS (in per warrant ADS)		$ 0.0001
Warrants issued						3,259,759
Warrants outstanding (in shares)						3,247,259
Private Placement [Member] \| Investor Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants issued to purchase ADS (in shares)									2,810,136
Exercise price of warrants (in dollars per ADS)				$ 3.00					$ 2.20
Private Placement [Member] \| Placement Agent Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants issued to purchase ADS (in shares)		449,623
Term of the warrants		5 years
Exercise price of warrants (in dollars per ADS)		$ 2.55		$ 2.85
Placement agent fees and expenses		$ 808,362

Shareholders' Equity - Stock option activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Options Outstanding at end of the period	123,449,035
Number of shares, Exercisable options at end of the period	87,586,535
Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Options Outstanding at beginning of the period	112,649,035
Number of shares, Granted	10,800,000
Number of shares, Options Outstanding at end of the period	123,449,035	112,649,035
Number of shares, Exercisable options at end of the period	87,586,535
Weighted average exercise price, Outstanding at beginning of the period	$ 0.09
Weighted average exercise price, Granted	0.02
Weighted average exercise price, Outstanding at end of the period	0.08	$ 0.09
Options exercisable at end of the period, Weighted average exercise price	0.11
Weighted average grant date fair value, Granted	$ 0.02
Weighted average remaining contractual term, Options outstanding during the period (in years)	6 years 10 months 24 days	7 years 1 month 6 days
Weighted average remaining contractual term, Granted during the period (in years)	10 years
Weighted average remaining contractual term, Options exercisable at end of the period (in years)	6 years 3 months 18 days
Aggregate intrinsic value, Options outstanding at beginning of the period	$ 9,550
Aggregate intrinsic value, Options outstanding at end of the period	$ 4,000	$ 9,550

Shareholders' Equity - Option exercise price (Details)	6 Months Ended
Shareholders' Equity - Option exercise price (Details)	Jun. 30, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number \| shares	123,449,035
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number \| shares	87,586,535
Exercise Price Range One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 0.02
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 0.05
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number \| shares	88,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	7 years 9 months 26 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.02
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number \| shares	52,537,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	7 years 5 months 5 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0.03
Exercise Price Range Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	0.12
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 0.19
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number \| shares	18,334,629
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 9 months 22 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number \| shares	18,334,629
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 9 months 22 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0.15
Exercise Price Range Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 0.32
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number \| shares	16,714,406
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 2 months 23 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0.32
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number \| shares	16,714,406
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 2 months 23 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0.32

Shareholders' Equity - Additional Information (Details) - USD ($)				1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2020	Sep. 26, 2019	Jul. 03, 2019	Jun. 30, 2020	Sep. 26, 2018	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Mar. 03, 2020	Feb. 21, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Ordinary Shares Representing One American Depositary Share				100	100		100		100
Stock Issued During Period, Shares, New Issues	5,620,296
Gross proceeds								$ 1,993,529	$ 19,053,960
2020 Purchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Gross proceeds from issuance	$ 9,500,000
Sale of Stock, Price Per Share	$ 1.70
Amount available under the share purchase commitment facility						$ 22,000,000		22,000,000
Investor Warrants [Member] \| 2020 Purchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued to purchase ADS (in shares)												2,810,136
Exercise price of warrants (in dollars per ADS)												$ 2.20
Placement Agent Warrants [Member] \| 2020 Purchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued to purchase ADS (in shares)											449,623
Exercise price of warrants (in dollars per ADS)											$ 2.55
Aspire Capital Fund LLC
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Gross proceeds from issuance				$ 30,000,000	$ 20,000,000			$ 2,000,001
Number of Shares to be Issued				40,760,900		117,647,100	40,760,900	117,647,100	40,760,900
Percentage Of Volume Weighted Average Price Indicating Purchase Price				97.00%	97.00%
Stock Issued During Period, Shares, New Issues					30,000,000
Sale of Stock, Number of Shares Issued in Transaction					25,000,000
Gross proceeds		$ 500,000						$ 30,000,000
Amount available under the share purchase commitment facility						$ 22,000,000		22,000,000
Aspire Capital Fund LLC \| 2020 Purchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Gross proceeds from issuance								30,000,000		$ 6,000,000
Stock Issued During Period, Shares, New Issues										460,758,800
Fair value of commitment shares				$ 900,000			$ 900,000		$ 900,000
American Depositary Share \| Aspire Capital Fund LLC
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares to be Issued				150,000	150,000		150,000		150,000
Sale of Stock, Description of Transaction				30% of the aggregate shares of the Company's ADSs traded on its principal market on the next trading day (the "VWAP Purchase Date"), subject to a maximum number of 250,000 ADSs	30% of the aggregate shares of the Company's ADSs traded on its principal market on the next trading day (the "VWAP Purchase Date"), subject to a maximum number of 250,000 ADSs.
Sale of Stock, Price Per Share					$ 0.25
Share issue price (in dollars per ADS)				$ 0.0001			$ 0.0001		$ 0.0001
Non Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized						347,445		$ 347,445
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition								1 year 9 months 18 days
2019 Registered Direct Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Gross proceeds from issuance			$ 4,500,000
Sale of Stock, Price Per Share			$ 1.90
Stock Issued During Period, Shares, New Issues			2,368,392
Exercise price of warrants (in dollars per ADS)			$ 4.50
2019 Registered Direct Offering \| Investor Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued to purchase ADS (in shares)			1,184,213
Exercise price of warrants (in dollars per ADS)			$ 3.00
2019 Registered Direct Offering \| Placement Agent Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued to purchase ADS (in shares)			177,629
Exercise price of warrants (in dollars per ADS)			$ 2.85
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Gross proceeds from issuance	$ 9,500,000
Sale of Stock, Price Per Share	$ 1.70
Stock Issued During Period, Shares, New Issues	5,620,296
Private Placement [Member] \| Paulson Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued to purchase ADS (in shares)			1,361,842
Private Placement [Member] \| Investor Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued to purchase ADS (in shares)												2,810,136
Exercise price of warrants (in dollars per ADS)			$ 3.00									$ 2.20
Private Placement [Member] \| Placement Agent Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued to purchase ADS (in shares)											449,623
Exercise price of warrants (in dollars per ADS)			$ 2.85								$ 2.55
Employees And Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Value, Share-based Compensation, Gross						$ 82,102	$ 63,330	$ 166,994	$ 163,834
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period								400,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized								276,550,965
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period								10 years
2014 Equity Incentive Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								1 year
2014 Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								4 years
American Depositary Share \| Aspire Capital Fund LLC
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Value, Issued for Services				$ 30,000,000	$ 20,000,000
Sale of Stock, Price Per Share				$ 0.25			$ 0.25		$ 0.25

Nature of Business	6 Months Ended
Nature of Business	Jun. 30, 2021
Nature of Business
Nature of Business	NOTE 1 – Nature of Business Akari Therapeutics, Plc, (the “Company” or “Akari”) is incorporated in the United Kingdom. The Company is a clinical-stage biopharmaceutical company focused on developing treatments for autoinflammatory diseases involving the complement (C5) and leukotriene (LTB4) pathways. The Company’s activities since inception have consisted of performing research and development activities and raising capital. As of June 30, 2021, the Company has an accumulated deficit of $192,465,647 and cash of $3,791,586 and negative cash flows from operating activities in the amount of $12,283,877. On June 30, 2020, the Company entered into a securities purchase agreement (the “2020 Purchase Agreement”) with Aspire Capital Fund, LLC, an Illinois limited liability company (“Aspire Capital”) which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $30.0 million of the Company’s ADSs over the 30-month term of the Purchase Agreement (See Note 3). As of June 30, 2021, approximately $22,000,000 remains available under the facility. The Company believes its current capital resources including the funds received after June 30, 2021 are sufficient to support its operations into March 2022 without giving effect to the sale of additional shares to Aspire Capital under the Purchase Agreement. To fund its capital needs, the Company plans to raise additional funds through equity or debt financings or other sources, such as strategic partnerships and alliance and licensing arrangements, and in the long term, proceeds from sales of commercial products. The Company is subject to a number of risks similar to those of clinical stage companies, including dependence on key individuals, uncertainty of product development and generation of revenues, dependence on outside sources of capital, risks associated with the outbreak of coronavirus, risks associated with clinical trials of products, dependence on third-party collaborators for research operations, need for regulatory approval of products, risks associated with protection of intellectual property, and competition with larger, better-capitalized companies. In addition, the Company is subject to risks related to the COVID-19 outbreak. For the six months ended June 30, 2021, the Company reported a net loss of $10,184,836 and expects to continue to incur substantial losses over the next several years during its development phase. To fully execute its business plan, the Company will need, among other things, to complete its research and development efforts and clinical and regulatory activities. These activities may take several years and will require significant operating and capital expenditures in the foreseeable future. There can be no assurance that these activities will be successful. If the Company is not successful in these activities it could delay, limit, reduce or terminate preclinical studies, clinical trials or other research and development activities. To fund its capital needs, the Company plans to raise funds through equity or debt financings or other sources, such as strategic partnerships and alliance and licensing arrangements, and in the long term, from the proceeds from sales of commercial products. Additional funds may not be available when the Company needs them, on terms that are acceptable to it, or at all. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that would result if the Company was unable to continue as a going concern. The global outbreak of COVID-19, also known as coronavirus and public health epidemics can adversely impact the Company’s business as a result of disruptions, such as travel bans, quarantines, and interruptions to access the trial sites and supply chains, which could result in material delays and complications with respect to our research and development programs and clinical trials. Moreover, as a result of COVID-19, there is a general unease of conducting unnecessary activities in medical centers. As a consequence, the Company’s ongoing trials have been halted or disrupted. It is too early to assess the full impact of the COVID-19 outbreak on trials for nomacopan, but COVID-19 may affect the Company’s ability to complete recruitment in the original timeframe. For example, during 2020, the Phase I/II clinical trial in patients with AKC study was halted and recruitment in the Phase III clinical trial in pediatric patients with HSCT-TMA was delayed until the end of 2020 although it is now open for enrollment of patients. The extent to which COVID-19 impacts operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and continued severity of the outbreak, and the actions that may be required to contain the coronavirus or treat its impact. In particular, the continued spread of COVID-19 globally could adversely impact the Company’s operations and workforce, including research and clinical trials and the ability to raise capital, could affect the operations of key governmental agencies, such as the FDA, which may delay the development of the Company’s product candidates, and could result in the inability of suppliers to deliver components or raw materials on a timely basis or at all, each of which in turn could have an adverse impact on the Company’s business, financial condition and results of operation.

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2021
Related Party Transactions
Related Party Transactions	NOTE 5 – Related Party Transactions Office Lease – The Company leases its offices in London from The Doctors Laboratory (“TDL”) and has incurred expenses of approximately $37,000, $75,000, $32,000 and $64,000 plus VAT during the three and six months ended June 30, 2021 and 2020, respectively. David Byrne, a non-employee director of the Company is also the Chief Executive Officer of TDL (see Note 6). Laboratory Testing Services - The Company has received laboratory testing services for its clinical trials provided by TDL and has incurred expenses of approximately $19,000, $90,000, $8,000 and $206,000 plus VAT during the three and six months ended June 30, 2021 and 2020, respectively. The Company has outstanding accounts payables with TDL of $69,000 and $123,000 as of June 30, 2021 and 2020, respectively. Consulting – A non-employee director of the Company began providing business development consulting services in January 2018. The Company has incurred expenses of approximately $25,000, $50,000, $25,000 and $50,000 during the three and six months ended June 30, 2021 and 2020, respectively, relating to these consulting services.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2021
Commitments and Contingencies
Commitments and Contingencies	NOTE 6 – Commitments and Contingencies Lease commitment – The Company’s lease agreement for offices in London expired in March 2019. The Company currently leases its offices in London on the same terms of the expired lease except on a month-to-month basis. (See Note 4). The Company’s lease for offices in New York, New York ended early in December 2018. The Company currently leases office space in New York, New York on a month-to-month basis. For the three months ended June 30, 2021 and 2020, the Company incurred rental expense in the amount of approximately $44,000, $90,000, $43,000 and $84,000, respectively.

Subsequent Event	6 Months Ended
Subsequent Event	Jun. 30, 2021
Subsequent Event
Subsequent Event	NOTE 8 – Subsequent Events In July 2021, the Company sold to certain accredited and institutional investors, led by existing investors of the Company, including Dr. Ray Prudo, the Company’s Chairman, an aggregate 7,947,540 American Depositary Shares (the “ADSs”) in a private placement at $1.55 per ADS, resulting in gross proceeds of approximately $12.3 million. The Company paid an aggregate of approximately $933,000 in placement agent fees and expenses and issued unregistered placement agent warrants to purchase an aggregate of 398,384 ADSs. The warrants are immediately exercisable and will expire five years from issuance at an exercise price of $2.32 per ADS, subject to adjustment as set forth therein. The warrants may be exercised on a cashless basis if six months after issuance there is no effective registration statement registering the ADSs underlying the warrants. In August 2021, the Company received a 2020 research and development tax credit in the amount of approximately $3.0 million in cash.

Summary of Significant Accounting Policies - Property and equipment, net (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies [Line Items]
Total property and equipment	$ 164,938	$ 164,938
Less: Accumulated depreciation	$ (164,938)	(164,938)
Computers, peripheral, and scientific equipment
Summary of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Total property and equipment	$ 85,489	85,489
Office furniture and equipment
Summary of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Total property and equipment	$ 79,449	$ 79,449

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	10,000,000,000	10,000,000,000
Common stock, shares issued	3,964,979,023	3,964,979,023
Common stock, shares outstanding	3,847,331,923	3,847,331,923

Fair Value Measurements - Assumptions used for the fair value calculations of the warrants (Details)-2	Dec. 08, 2020 Y	Mar. 03, 2020 Y	Feb. 12, 2020 Y	Dec. 31, 2019 Y
2019 Warrants \| Standard deviation
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	95.00			110.00
2019 Warrants \| Annual risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	0.25			1.66
2019 Warrants \| Required return on equity
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	19.30			19.90
2019 Warrants \| Expected life in years
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	3.55			4.5
2019 Warrants \| Annual turnover rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	0.00			0.00
2019 Warrants \| Period risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	0.08			0.08
2020 Warrants \| Standard deviation
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	95.00	110.00	110.00
2020 Warrants \| Annual risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	0.25	0.77	1.30
2020 Warrants \| Required return on equity
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	19.30	19.90	19.90
2020 Warrants \| Expected life in years
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	3.55	5.0	5.0
2020 Warrants \| Annual turnover rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	0.00	0.00	0.00
2020 Warrants \| Period risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants outstanding, measurement input	0.08	0.08	0.08

Fair Value Measurements - Level 3 Reconciliation (Details) - Fair Value, Inputs, Level 3 - USD ($)	1 Months Ended	11 Months Ended
	Dec. 31, 2020	Dec. 08, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance	$ 3,199,553
Issuance of Paulson Warrants		$ 2,749,369
Reclassification of warrant liability to shareholders' equity	(3,199,553)	7,874
Changes in values of liabilities related to options and warrants		556,810
Balance	$ 1,014,868	$ 3,199,553

Shareholders' Equity - Warrants (Details) - $ / shares	6 Months Ended	12 Months Ended
Shareholders' Equity - Warrants (Details) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Class of Warrant or Right [Line Items]
Beginning Balance	4,609,101	1,361,842
Warrants issued		3,259,759
Warrants exercised		(12,500)
Ending Balance	4,609,101	4,609,101
2019 Investor Warrants
Class of Warrant or Right [Line Items]
Exercise Price	$ 3.00
Beginning Balance	1,184,213	1,184,213
Ending Balance	1,184,213	1,184,213
2019 Placement Warrants
Class of Warrant or Right [Line Items]
Exercise Price	$ 2.85
Beginning Balance	177,629	177,629
Ending Balance	177,629	177,629
2020 Investor Warrants
Class of Warrant or Right [Line Items]
Exercise Price	$ 2.20
Beginning Balance	2,797,636
Warrants issued		2,810,136
Warrants exercised		(12,500)
Ending Balance	2,797,636	2,797,636
2020 Placement Warrants
Class of Warrant or Right [Line Items]
Exercise Price	$ 2.55
Beginning Balance	449,623
Warrants issued		449,623
Ending Balance	449,623	449,623

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
Related Party Transactions (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
The Doctors Laboratory [Member]
Related Party Transaction [Line Items]
Operating Lease, Expense	$ 37,000	$ 32,000	$ 75,000	$ 64,000
Consulting Service [Member]
Related Party Transaction [Line Items]
Expenses from transactions with related party	25,000	25,000	50,000	50,000
Laboratory Testing Services [Member]
Related Party Transaction [Line Items]
Outstanding accounts payables	69,000	123,000	69,000	123,000
Expenses from transactions with related party	$ 19,000	$ 8,000	$ 90,000	$ 206,000

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
Commitments and Contingencies (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Commitments and Contingencies
Operating Leases, Rent Expense, Net	$ 44,000	$ 43,000	$ 90,000	$ 84,000

Loss Per Share - Shares excluded from computation (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Line Items]
Total Anti-Dilutive Share Equivalents	584,359,135	573,559,135
Share options
Earnings Per Share [Line Items]
Total Anti-Dilutive Share Equivalents	123,449,035	112,649,035
Warrants Equity Classified
Earnings Per Share [Line Items]
Total Anti-Dilutive Share Equivalents	460,910,100	460,910,100

Subsequent Events (Details) - USD ($)			1 Months Ended			6 Months Ended
Subsequent Events (Details) - USD ($)	Mar. 03, 2020	Feb. 28, 2020	Jul. 31, 2021	Jun. 30, 2020	Sep. 26, 2018	Jun. 30, 2021	Aug. 31, 2021	Feb. 21, 2020	Jul. 03, 2019
Subsequent Event [Line Items]
Aggregate ADSs issued (in shares)		5,620,296
Private Placement [Member]
Subsequent Event [Line Items]
Aggregate ADSs issued (in shares)		5,620,296
Gross proceeds		$ 9,500,000
Threshold period for exercise of warrants on cashless basis	6 months
Private Placement [Member] \| Investor Warrants [Member]
Subsequent Event [Line Items]
Warrants issued to purchase ADS (in shares)								2,810,136
Exercise price of warrants (in dollars per ADS)								$ 2.20	$ 3.00
Private Placement [Member] \| Placement Agent Warrants [Member]
Subsequent Event [Line Items]
Warrants issued to purchase ADS (in shares)	449,623
Term of the warrants	5 years
Exercise price of warrants (in dollars per ADS)	$ 2.55								$ 2.85
Placement agent fees and expenses	$ 808,362
Aspire Capital Fund LLC
Subsequent Event [Line Items]
Aggregate ADSs issued (in shares)					30,000,000
Gross proceeds				$ 30,000,000	$ 20,000,000	$ 2,000,001
Subsequent Event [Member]
Subsequent Event [Line Items]
Amount received for research and development tax credit in cash							$ 3,000,000
Subsequent Event [Member] \| Private Placement [Member]
Subsequent Event [Line Items]
Aggregate ADSs issued (in shares)			7,947,540
Gross proceeds			$ 12,300,000
Share issue price (in dollars per ADS)			$ 1.55
Placement agent fees and expenses			$ 933,000
Subsequent Event [Member] \| Private Placement [Member] \| Investor Warrants [Member]
Subsequent Event [Line Items]
Term of the warrants			5 years
Exercise price of warrants (in dollars per ADS)			$ 2.32
Threshold period for exercise of warrants on cashless basis			6 months
Subsequent Event [Member] \| Private Placement [Member] \| Placement Agent Warrants [Member]
Subsequent Event [Line Items]
Warrants issued to purchase ADS (in shares)			398,384