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| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|----------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------------|

| Delaware                                                       | 94-3306718                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |

| 4800 Montgomery Lane, Suite 800          |            20814 |
|------------------------------------------|-------------------------------------------------------------------------|
| Bethesda, Maryland 20814                 |          (Zip Code)             |
| (Address of Principal Executive Offices) |                                                                    |

| Large accelerated filer   ̈ | Accelerated filer   ̈ | Non-accelerated filer   ̈                                          | Smaller reporting company  þ |
|------------------------------------------------|-------------------------------------|----------------------------------------------------------------------------------|--------------------------------------------------|
|                                      |                           | (do not check if a smaller reporting company) |                                             |

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|   | · | our Condensed Consolidated Balance Sheets as of December 31, 2009 and March 31, 2010 by increasing amounts reported in additional paid-in capital and accumulated deficit; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our Condensed Consolidated Statement of Operations for the three month periods ended March 31, 2009 by increasing amounts reported in General and administrative expenses to reflect a change in valuation of certain equity issuances during the quarters ended March 31, September 30 and December 31, 2009 and increasing amounts reported in Loss from operations, Net loss and Net loss per share – basic and diluted. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                            |   | Page   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I — FINANCIAL INFORMATION                                                                                                                                            |   |   |
|                                                                                                                                                                            |   |   |
| Item 1. Financial Statements                                                                                                                                                    |   |   |
|                                                                                                                                                                            |   |   |
| Condensed Consolidated Balance Sheets as of December 31, 2009 and March 31, 2010 (unaudited)                                                                                    |   | 3      |
|                                                                                                                                                                            |   |   |
| Condensed Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2009 and 2010 and the period from March 18, 1996 (inception) to March 31, 2010 |   | 4      |
|                                                                                                                                                                            |   |   |
| Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2009 and 2010 and the period from March 18, 1996 (inception) to March 31, 2010 |   | 5      |
|                                                                                                                                                                            |   |   |
| Notes to Condensed Consolidated Financial Statements                                                                                                                            |   | 6      |
|                                                                                                                                                                            |   |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                             |   | 14     |
|                                                                                                                                                                            |   |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                                                                              |   | 17     |
|                                                                                                                                                                            |   |   |
| Item 4T. Controls and Procedures                                                                                                                                                |   | 17     |
|                                                                                                                                                                            |   |   |
| PART II — OTHER INFORMATION                                                                                                                                               |   |   |
|                                                                                                                                                                            |   |   |
| Item 1. Legal Proceedings                                                                                                                                                       |   | 18     |
|                                                                                                                                                                            |   |   |
| Item 1A. Risk Factors                                                                                                                                                           |   | 19     |
|                                                                                                                                                                            |   |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                             |   | 19     |
|                                                                                                                                                                            |   |   |
| Item 3. Defaults Upon Senior Securities                                                                                                                                         |   | 21     |
|                                                                                                                                                                            |   |   |
| Item 4. Submission of Matters to a Vote of Security Holders                                                                                                                     |   | 21     |
|                                                                                                                                                                            |   |   |
| Item 5. Other Information                                                                                                                                                       |   | 21     |
|                                                                                                                                                                            |   |   |
| Item 6. Exhibits                                                                                                                                                                |   | 21     |
|                                                                                                                                                                            |   |   |
| SIGNATURES                                                                                                                                                                      |   | 22     |
|                                                                                                                                                                            |   |   |
| INDEX TO EXHIBITS                                                                                                                                                               |   | 23     |

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|                                                                                                                                                                                                                    |   | December31,2009 |     |   | March 31,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|----------|--------|--------------------|--------|
|                                                                                                                                                                                                                    |   |            |     |   | (Unaudited)        |   |
|                                                                                                                                                                                                                    |   | (Restated)      |     |   | (Restated)         |   |
| Assets                                                                                                                                                                                                                  |   |            |     |   |               |   |
| Current assets:                                                                                                                                                                                                         |   |            |     |   |               |   |
| Cash                                                                                                                                                                                                                    |   | $               | 65       |   |               | $      | 94 |   |
| Prepaid expenses and other current assets                                                                                                                                                                               |   |            | 36       |   |               |   | 29 |   |
| Total current assets                                                                                                                                                                                                    |   |            | 101      |   |               |   | 123 |   |
| Property and equipment:                                                                                                                                                                                                 |   |            |     |   |               |   |   |   |
| Laboratory equipment                                                                                                                                                                                                    |   |            | 29       |   |               |   | 29 |   |
| Office furniture and other equipment                                                                                                                                                                                    |   |            | 82       |   |               |   | 82 |   |
|                                                                                                                                                                                                                    |   |            | 111      |   |               |   | 111 |   |
| Less accumulated depreciation and amortization                                                                                                                                                                          |   |            | (111     | )      |               |   | (111 | ) |
| Property and equipment, net                                                                                                                                                                                             |   |            | —  |   |               |   | — |   |
| Deposit and other non-current assets                                                                                                                                                                                    |   |            | 2        |   |               |   | 16 |   |
| Total assets                                                                                                                                                                                                            |   | $               | 103      |   |               | $      | 139 |   |
| Liabilities And Stockholders’ Equity (Deficit)                                                                                                                                                                    |   |            |     |   |               |   |   |   |
| Current liabilities:                                                                                                                                                                                                    |   |            |     |   |               |   |   |   |
| Accounts payable                                                                                                                                                                                                        |   | $               | 3,249    |   |               | $      | 3,062 |   |
| Accounts payable, related party                                                                                                                                                                                         |   |            | 6,328    |   |               |   | 6,350 |   |
| Accrued expenses                                                                                                                                                                                                        |   |            | 1,874    |   |               |   | 1,798 |   |
| Accrued expense, related party                                                                                                                                                                                          |   |            | 1,329    |   |               |   | 1,394 |   |
| Notes payable                                                                                                                                                                                                           |   |            | 2,650    |   |               |   | 2,650 |   |
| Note payable to related parties                                                                                                                                                                                         |   |            | 4,000    |   |               |   | 4,000 |   |
| Convertible notes payable, net                                                                                                                                                                                          |   |            | —  |   |               |   | 724 |   |
| Total current liabilities                                                                                                                                                                                               |   |            | 19,430   |   |               |   | 19,978 |   |
| Long term liabilities:                                                                                                                                                                                                  |   |            |     |   |               |   |   |   |
| Convertible notes payable, net                                                                                                                                                                                          |   |            | 1,061    |   |               |   | 815 |   |
| Convertible notes payable to related party, net                                                                                                                                                                         |   |            | 298      |   |               |   | 459 |   |
| Total long term liabilities                                                                                                                                                                                             |   |            | 1,359    |   |               |   | 1,274 |   |
| Total liabilities                                                                                                                                                                                                       |   |            | 20,789   |   |               |   | 21,252 |   |
| Stockholders’ equity (deficit):                                                                                                                                                                                   |   |            |     |   |               |   |   |   |
| Preferred stock, $0.001 par value; 20,000,000 shares authorized and none issued and outstanding                                                                                                                         |   |            |     |   |               |   |   |   |
| Common stock, $0.001 par value; 150,000,000 shares authorized at December 31, 2009 and March 31, 2010 and 58,877,087 and 62,131,373 shares issued and outstanding at December 31, 2009 and March 31, 2010, respectively |   |            | 58       |   |               |   | 62 |   |
| Additional paid-in capital                                                                                                                                                                                              |   |            | 170,885  |   |               |   | 176,276 |   |
| Deficit accumulated during the development stage                                                                                                                                                                        |   |            | (191,580 | )      |               |   | (197,425 | ) |
| Cumulative translation adjustment                                                                                                                                                                                       |   |            | (49      | )      |               |   | (26 | ) |
| Total stockholders’ equity (deficit)                                                                                                                                                                              |   |            | (20,686  | )      |               |   | (21,113 | ) |
| Total liabilities andstockholders’ equity (deficit)                                                                                                                                                               |   | $               | 103      |   |               | $      | 139 |   |

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|                                                                                                           |   | Three Months EndedMarch 31, |    |   | Period fromMarch 18,1996(Inception) toMarch 31, |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|---------------------------------------------------------------------|--------|
|                                                                                                           |   | 2009                                       |    |   | 2010                                                                |   |   | 2010 |   |
|                                                                                                           |   | (Restated)                                 |    |   |                                                                |   |   | (Restated) |   |
| Revenues:                                                                                                      |   |                                       |    |   |                                                                |   |   |   |   |
| Research material sales                                                                                        |   | $                                          | — |   |                                                                | $      | — |   |   | $ | 560 |   |
| Contract research and development from related parties                                                         |   |                                       | — |   |                                                                |   | — |   |   |   | 1,128 |   |
| Research grants and other                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 1,061 |   |
| Total revenues                                                                                                 |   |                                       | — |   |                                                                |   | — |   |   |   | 2,749 |   |
| Operating costs and expenses:                                                                                  |   |                                       |    |   |                                                                |   |   |   |   |   |   |   |
| Cost of research material sales                                                                                |   |                                       | — |   |                                                                |   | — |   |   |   | 382 |   |
| Research and development                                                                                       |   |                                       | 2,492   |   |                                                                |   | 1,991 |   |   |   | 68,904 |   |
| General and administrative                                                                                     |   |                                       | 1,377   |   |                                                                |   | 1,356 |   |   |   | 57,882 |   |
| Depreciation and amortization                                                                                  |   |                                       | — |   |                                                                |   | — |   |   |   | 2,351 |   |
| Loss on facility sublease                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 895 |   |
| Asset impairment loss and other (gain) loss                                                                    |   |                                       | — |   |                                                                |   | — |   |   |   | 2,445 |   |
| Total operating costs and expenses                                                                             |   |                                       | 3,869   |   |                                                                |   | 3,347 |   |   |   | 132,859 |   |
| Loss from operations                                                                                           |   |                                       | (3,869  | )      |                                                                |   | (3,347 | ) |   |   | (130,110 | ) |
| Other income (expense):                                                                                        |   |                                       |    |   |                                                                |   |   |   |   |   |   |   |
| Warrant valuation                                                                                              |   |                                       | — |   |                                                                |   | — |   |   |   | 6,759 |   |
| Loan conversion inducement                                                                                     |   |                                       | — |   |                                                                |   | — |   |   |   | (5,617 | ) |
| Gain on sale of intellectual property and property and equipment                                               |   |                                       | — |   |                                                                |   | — |   |   |   | 3,664 |   |
| Interest expense                                                                                               |   |                                       | (751    | )      |                                                                |   | (2,498 | ) |   |   | (28,530 | ) |
| Interest income and other                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 1,218 |   |
| Net loss                                                                                                       |   |                                       | (4,620  | )      |                                                                |   | (5,845 | ) |   |   | (152,616 | ) |
| Issuance of common stock in connection with elimination of Series A and Series A-1 preferred stock preferences |   |                                       | — |   |                                                                |   | — |   |   |   | (12,349 | ) |
| Modification of Series A preferred stock warrants                                                              |   |                                       | — |   |                                                                |   | — |   |   |   | (2,306 | ) |
| Modification of Series A-1 preferred stock warrants                                                            |   |                                       | — |   |                                                                |   | — |   |   |   | (16,393 | ) |
| Series A preferred stock dividends                                                                             |   |                                       | — |   |                                                                |   | — |   |   |   | (334 | ) |
| Series A-1 preferred stock dividends                                                                           |   |                                       | — |   |                                                                |   | — |   |   |   | (917 | ) |
| Warrants issued on Series A and Series A-1 preferred stock dividends                                           |   |                                       | — |   |                                                                |   | — |   |   |   | (4,664 | ) |
| Accretion of Series A preferred stock mandatory redemption obligation                                          |   |                                       | — |   |                                                                |   | — |   |   |   | (1,872 | ) |
| Series A preferred stock redemption fee                                                                        |   |                                       | — |   |                                                                |   | — |   |   |   | (1,700 | ) |
| Beneficial conversion feature of Series D preferred stock                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | (4,274 | ) |
| Net loss applicable to common stockholders                                                                     |   | $                                          | (4,620  | )      |                                                                | $      | (5,845 | ) |   | $ | (197,425 | ) |
| Net loss per share applicable to common stockholders — basic and diluted                                 |   | $                                          | (0.11   | )      |                                                                | $      | (0.10 | ) |   |   |   |   |
| Weighted average shares used in computing basic and diluted net loss per share                                 |   |                                       | 43,385  |   |                                                                |   | 59,928 |   |   |   |   |   |

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|                                                                                                                                                             |   | Three Months EndedMarch 31, |    |   | Period fromMarch 18,1996(Inception) toMarch 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|---------------------------------------------------------------------|--------|
|                                                                                                                                                             |   | 2009                                       |    |   | 2010                                                                |   |   | 2010 |   |
|                                                                                                                                                             |   | (Restated)                                 |    |   |                                                                |   |   | (Restated) |   |
| Cash Flows from Operating Activities:                                                                                                                            |   |                                       |    |   |                                                                |   |   |   |   |
| Net Loss                                                                                                                                                         |   | $                                          | (4,620  | )      |                                                                | $      | (5,845 | ) |   | $ | (152,616 | ) |
| Reconciliation of net loss to net cash used in operating activities:                                                                                             |   |                                       |    |   |                                                                |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                                                                    |   |                                       | — |   |                                                                |   | — |   |   |   | 2,351 |   |
| Amortization of deferred financing costs                                                                                                                         |   |                                       | — |   |                                                                |   | — |   |   |   | 320 |   |
| Amortization debt discount                                                                                                                                       |   |                                       | 509     |   |                                                                |   | 343 |   |   |   | 20,044 |   |
| Accrued interest converted to stock                                                                                                                              |   |                                       | — |   |                                                                |   | 1,047 |   |   |   | 1,307 |   |
| Accreted interest on convertible promissory note                                                                                                                 |   |                                       | — |   |                                                                |   | — |   |   |   | 1,484 |   |
| Stock-based compensation costs                                                                                                                                   |   |                                       | 96      |   |                                                                |   | 514 |   |   |   | 9,924 |   |
| Stock and warrants issued for services and other expenses                                                                                                        |   |                                       | 138     |   |                                                                |   | 2,166 |   |   |   | 6,942 |   |
| Loan conversion inducement                                                                                                                                       |   |                                       | — |   |                                                                |   | — |   |   |   | 5,617 |   |
| Warrant valuation                                                                                                                                                |   |                                       | — |   |                                                                |   | — |   |   |   | (6,759 | ) |
| Asset impairment loss and loss (gain) on sale of properties                                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | (936 | ) |
| Loss on facility sublease                                                                                                                                        |   |                                       | — |   |                                                                |   | — |   |   |   | 895 |   |
| Increase (decrease) in cash resulting from changes in assets and liabilities:                                                                                    |   |                                       |    |   |                                                                |   |   |   |   |   |   |   |
| Prepaid expenses and other current assets                                                                                                                        |   |                                       | 354     |   |                                                                |   | (7 | ) |   |   | 681 |   |
| Accounts payable and accrued expenses                                                                                                                            |   |                                       | 248     |   |                                                                |   | (263 | ) |   |   | 4,782 |   |
| Related party accounts payable and accrued expenses                                                                                                              |   |                                       | 1,979   |   |                                                                |   | (87 | ) |   |   | 7,744 |   |
| Accrued loss on sublease                                                                                                                                         |   |                                       | — |   |                                                                |   | — |   |   |   | (265 | ) |
| Deferred rent                                                                                                                                                    |   |                                       | — |   |                                                                |   | — |   |   |   | 410 |   |
| Net Cash used in Operating Activities                                                                                                                            |   |                                       | (1,296  | )      |                                                                |   | (1,958 | ) |   |   | (98,075 | ) |
| Cash Flows from Investing Activities:                                                                                                                            |   |                                       |    |   |                                                                |   |   |   |   |   |   |   |
| Purchase of property and equipment, net                                                                                                                          |   |                                       | (2      | )      |                                                                |   | — |   |   |   | (5,003 | ) |
| Proceeds from sale of property and equipment                                                                                                                     |   |                                       | — |   |                                                                |   | — |   |   |   | 258 |   |
| Proceeds from sale of intellectual property                                                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 1,816 |   |
| Proceeds from sale of marketable securities                                                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 2,000 |   |
| Refund of security deposit                                                                                                                                       |   |                                       | — |   |                                                                |   | — |   |   |   | (3 | ) |
| Transfer of restricted cash                                                                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | (1,035 | ) |
| Net Cash used in Investing Activities                                                                                                                            |   |                                       | (2      | )      |                                                                |   | — |   |   |   | (1,967 | ) |
| Cash Flows from Financing Activities:                                                                                                                            |   |                                       |    |   |                                                                |   |   |   |   |   |   |   |
| Proceeds from issuance of note payable                                                                                                                           |   |                                       | 760     |   |                                                                |   | 875 |   |   |   | 5,585 |   |
| Proceeds from issuance of convertible notes payable to related parties                                                                                           |   |                                       | — |   |                                                                |   | — |   |   |   | 1,300 |   |
| Proceeds from issuance of note payable to related parties                                                                                                        |   |                                       | — |   |                                                                |   | — |   |   |   | 11,250 |   |
| Repayment of note payable to related party                                                                                                                       |   |                                       | — |   |                                                                |   | — |   |   |   | (6,700 | ) |
| Proceeds from issuance of convertible promissory note and warrants, net of issuance costs                                                                        |   |                                       | — |   |                                                                |   | — |   |   |   | 13,099 |   |
| Repayment of convertible promissory note                                                                                                                         |   |                                       | — |   |                                                                |   | — |   |   |   | (119 | ) |
| Borrowing under line of credit, Northwest Hospital                                                                                                               |   |                                       | — |   |                                                                |   | — |   |   |   | 2,834 |   |
| Repayment of line of credit, Northwest Hospital                                                                                                                  |   |                                       | — |   |                                                                |   | — |   |   |   | (2,834 | ) |
| Payment on capital lease obligations                                                                                                                             |   |                                       | — |   |                                                                |   | — |   |   |   | (323 | ) |
| Payments on note payable                                                                                                                                         |   |                                       | — |   |                                                                |   | — |   |   |   | (420 | ) |
| Proceeds from issuance preferred stock, net                                                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 28,708 |   |
| Proceeds from exercise of stock options and warrants                                                                                                             |   |                                       | — |   |                                                                |   | — |   |   |   | 228 |   |
| Proceeds from issuance common stock, net                                                                                                                         |   |                                       | 1,029   |   |                                                                |   | 1,089 |   |   |   | 50,825 |   |
| Payment of preferred stock dividends                                                                                                                             |   |                                       | — |   |                                                                |   | — |   |   |   | (1,251 | ) |
| Series A preferred stock redemption fee                                                                                                                          |   |                                       | — |   |                                                                |   | — |   |   |   | (1,700 | ) |
| Deferred financing costs                                                                                                                                         |   |                                       | — |   |                                                                |   | — |   |   |   | (320 | ) |
| Net Cash provided by Financing Activities                                                                                                                        |   |                                       | 1,789   |   |                                                                |   | 1,964 |   |   |   | 100,162 |   |
| Effect of exchange rates on cash                                                                                                                                 |   |                                       | 59      |   |                                                                |   | 23 |   |   |   | (26 | ) |
| Net increase in cash                                                                                                                                        |   |                                       | 550     |   |                                                                |   | 29 |   |   |   | 94 |   |
| Cash at beginning of period                                                                                                                                      |   |                                       | 16      |   |                                                                |   | 65 |   |   |   | — |   |
| Cash at end of period                                                                                                                                            |   | $                                          | 566     |   |                                                                | $      | 94 |   |   | $ | 94 |   |
| Supplemental disclosure of cash flow information — Cash paid during the period for interest                                                                |   | $                                          | — |   |                                                                | $      | — |   |   | $ | 1,879 |   |
| Supplemental schedule of non-cash financing activities:                                                                                                          |   |                                       |    |   |                                                                |   |   |   |   |   |   |   |
| Equipment acquired through capital leases                                                                                                                        |   | $                                          | — |   |                                                                | $      | — |   |   | $ | 285 |   |
| Issuance of common stock in connection with elimination of Series A and Series A-1 preferred stock preferences                                                   |   |                                       | — |   |                                                                |   | — |   |   |   | 12,349 |   |
| Issuance of common stock in connection with conversion of related party notes payable and accrued interest and convertible promissory notes and accrued interest |   |                                       | — |   |                                                                |   |   |   |   |   | 1,500 |   |
| Modification of Series A preferred stock warrants                                                                                                                |   |                                       | — |   |                                                                |   | — |   |   |   | 2,306 |   |
| Modification of Series A-1 preferred stock warrants                                                                                                              |   |                                       | — |   |                                                                |   | — |   |   |   | 16,393 |   |
| Warrants issued on Series A and Series A-1 preferred stock dividends                                                                                             |   |                                       | — |   |                                                                |   | — |   |   |   | 4,664 |   |
| Common stock warrant liability                                                                                                                                   |   |                                       | — |   |                                                                |   | — |   |   |   | 11,841 |   |
| Accretion of mandatorily redeemable Series A preferred stock redemption obligation                                                                               |   |                                       | — |   |                                                                |   | — |   |   |   | 1,872 |   |
| Debt discount on promissory notes                                                                                                                                |   |                                       | 73      |   |                                                                |   | 579 |   |   |   | 11,416 |   |
| Conversion of convertible promissory notes and accrued interest to Series D preferred stock                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 5,324 |   |
| Conversion of convertible promissory notes and accrued interest to Series A-1 preferred stock                                                                    |   |                                       | — |   |                                                                |   | — |   |   |   | 7,707 |   |
| Conversion of convertible promissory notes and accrued interest to common stock                                                                                  |   |                                       | — |   |                                                                |   | — |   |   |   | 269 |   |
| Issuance of Series C preferred stock warrants in connection with lease agreement                                                                                 |   |                                       | — |   |                                                                |   | — |   |   |   | 43 |   |
| Issuance of common stock for license rights                                                                                                                      |   |                                       | — |   |                                                                |   | — |   |   |   | 4 |   |
| Liability for and issuance of common stock and warrants to Medarex                                                                                               |   |                                       | — |   |                                                                |   | — |   |   |   | 840 |   |
| Issuance of common stock to landlord                                                                                                                             |   |                                       | — |   |                                                                |   | — |   |   |   | 35 |   |
| Deferred compensation on issuance of stock options and restricted stock grants                                                                                   |   |                                       | — |   |                                                                |   | — |   |   |   | 759 |   |
| Cancellation of options and restricted stock                                                                                                                     |   |                                       | — |   |                                                                |   | — |   |   |   | 849 |   |
| Financing of prepaid insurance through note payable                                                                                                              |   |                                       | — |   |                                                                |   | — |   |   |   | 491 |   |
| Stock subscription receivable                                                                                                                                    |   |                                       | 365     |   |                                                                |   |   |   |   |   | 480 |   |

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|   | · | our Condensed Consolidated Balance Sheets as of December 31, 2009 and March 31, 2010 by increasing amounts reported in additional paid-in capital and accumulated deficit; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our Condensed Consolidated Statement of Operations for the three month periods ended March 31, 2009 by increasing amounts reported in General and administrative expenses to reflect a change in valuation of certain equity issuances during the quarters ended March 31, September 30 and December 31, 2009 and increasing amounts reported in Loss from operations, Net loss and Net loss per share – basic and diluted. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | As of December 31, 2009 |     |   | As of March 31, 2010 |   |
|--------------------------------------------------|--------|---------------------------------------------|----------|--------|------------------------------------------|--------|
|                                             |   | AsPreviouslyReported                        |     |   | Adjustments                              |   |   | As Restated |   |   | AsPreviouslyReported |   |   | Adjustments |   |   | As Restated |   |
|                                             |   |                                        |     |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additional paid-in capital                       |   | $                                           | 169,202  |   |                                     | $      | 1,683 |   |   | $ | 170,885 |   |   | $ | 174,593 |   |   | $ | 1,683 |   |   | $ | 176,276 |   |
| Deficit accumulated during the development stage |   |                                        | (189,897 | )      |                                     |   | (1,683 | ) |   |   | (191,580 | ) |   |   | (195,742 | ) |   |   | (1,683 | ) |   |   | (197,425 | ) |

----

|                                                                     |   | Three months ended March 31, 2009 |   |   | Inception to March 31, 2010 |   |
|--------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                                     |   | As PreviouslyReported                                 |   |   | Adjustments                                     |   |   | As Restated |   |   | As PreviouslyReported |   |   | Adjustments |   |   | As Restated |   |
| General and administrative                                               |   | $                                                          | 1,333  |   |                                            | $      | 44 |   |   | $ | 1,377 |   |   | $ | 56,199 |   |   | $ | 1,683 |   |   | $ | 57,882 |   |
| Loss from operations                                                     |   |                                                       | (3,825 | )      |                                            |   | (44 | ) |   |   | (3,869 | ) |   |   | (128,427 | ) |   |   | (1,683 | ) |   |   | (130,110 | ) |
| Net loss                                                                 |   |                                                       | (4,576 | )      |                                            |   | (44 | ) |   |   | (4,620 | ) |   |   | (150,933 | ) |   |   | (1,683 | ) |   |   | (152,616 | ) |
| Net loss applicable to common stockholders                               |   |                                                       | (4,576 | )      |                                            |   | (44 | ) |   |   | (4,620 | ) |   |   | (195,742 | ) |   |   | (1,683 | ) |   |   | (197,425 | ) |
| Net loss per share applicable to common stockholders - basic and diluted |   |                                                       | (0.11  | )      |                                            |   |   |   |   |   | (0.11 | ) |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                    |   | Three months ended March 31, 2009 |   |   | Inception to March 31, 2010 |   |
|---------------------------------------------------------|--------|------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                    |   | AsPreviouslyReported                                       |   |   | Adjustments                                     |   |   | As Restated |   |   | As PreviouslyReported |   |   | Adjustments |   |   | As Restated |   |
| Net loss                                                |   | $                                                          | (4,576 | )      |                                            | $      | (44 | ) |   | $ | (4,620 | ) |   |   | (150,933 | ) |   |   | (1,683 | ) |   |   | (152,616 | ) |
| Stock-based compensation costs                          |   |                                                       | 190    |   |                                            |   | (94 | ) |   |   | 96 |   |   |   | 10,018 |   |   |   | (94 | ) |   |   | 9,924 |   |
| Stocks and warrants issued for services and other costs |   |                                                       | -      |   |                                            |   | 138 |   |   |   | 138 |   |   |   | 5,165 |   |   |   | 1,777 |   |   |   | 6,942 |   |

----

|                                    |   | 2009   |   |   | 2010   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
| Research and development                |   | $      | (139   | )      |   | $      | 186 |   |
| General and administrative expenses     |   |   | 235    |   |   |   | 329 |   |
| Total stock- based compensation expense |   | $      | 96     |   |   | $      | 514 |   |

----

|   | • | an aggregate of 19,299,486 shares of Common Stock; |
|--------|---------|----------------------------------------------------|

|   | • | warrants to purchase 14,150,732 shares of Common Stock at an exercise price of $0.60 per share; and |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | • | warrants to purchase 7,884,357 shares of Common Stock at an exercise price of $0.15 per share. |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | an aggregate of 13,624,024 shares of Common Stock; |
|--------|---------|----------------------------------------------------|

|   | • | warrants to purchase 8,832,541 shares of Common Stock at an exercise price of $0.60 per share; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | warrants to purchase 513,841 shares of common stock at an exercise price of $0.41; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | warrants to purchase 132,500 shares of common stock at an exercise price of $0.40; and |
|--------|---------|---------------------------------------------------------------------------------------------|

|   | • | warrants to purchase 842,375 shares of common stock at an exercise price of $0.20. |
|--------|---------|-----------------------------------------------------------------------------------------|

----

----

| Notes payable to related parties consist of the following at December 31, 2009 and March 31, 2010 (in thousands): |
|-------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                            |   | December31, 2009 |   |   | March31,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|--------------|--------|
| 12% note payable to Al Rajhi, due December 31, 2010                                                                                                             |   | $                     | 4,000  |   |         | $      | 4,000 |   |
| 6% unsecured convertible note payable to Toucan Partners, due July, 2011 and November 2011, (net of discount of $1,002 and $841 in 2009 and 2010, respectively) |   |                  | 298    |   |         |   | 459 |   |
|                                                                                                                                                            |   |                  | 4,298  |   |         |   | 4,459 |   |
| Less current portion                                                                                                                                            |   |                  | (4,000 | )      |         |   | (4,000 | ) |
| Long-term notes payable to related parties (net)                                                                                                                |   | $                     | 298    |   |         | $      | 459 |   |

|                                                                                                                                                           |   | December31, 2009 |   |   | March 31,2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|--------------------|--------|
| 12% unsecured note payable to SDS                                                                                                                              |   | $                     | 1,000  |   |               | $      | 1,000 |   |
| 12% unsecured notes payable to SDS and Private Investors                                                                                                       |   |                  | 1,650  |   |               |   | 1,650 |   |
| 6% unsecured convertible notes payable to Private Lenders, due in August and September 2011, (net of discount of $485 and $413 in 2009 and 2010, respectively) |   |                  | 95     |   |               |   | 167 |   |
| 6% unsecured convertible notes payable to Private Lenders, due March 25, 2011, (net of discount of $46 and $36 in 2009 and 2010, respectively)                 |   |                  | 604    |   |               |   | 614 |   |
| 6% unsecured convertible note payable to Private Lender, due March 25, 2011                                                                                    |   |                  | 110    |   |               |   | 110 |   |
| 6% unsecured convertible notes payable to Private Lenders, due October, 2011, (net of discount of $194 and $167 in 2009 and 2010, respectively)                |   |                  | 21     |   |               |   | 48 |   |
| 6% unsecured convertible notes payable to Private Lenders, due October and December 2011, (net of discount of $274 and $243 in 2009 and 2010, respectively)    |   |                  | 231    |   |               |   | 262 |   |
| 6% unsecured convertible notes payable to Private Lenders, due between January and March 2012, (net of discount of $537 in 2010)                               |   |                  | -      |   |               |   | 338 |   |
|                                                                                                                                                           |   |                  | 3,711  |   |               |   | 4,189 |   |
| Less current portion                                                                                                                                           |   |                  | (2,650 | )      |               |   | (3,374 | ) |
| Long-term notes payable (net)                                                                                                                                  |   | $                     | 1,061  |   |               | $      | 815 |   |

| Notes payable, net             |   | $      | 2,650 |   |
|--------------------------------|--------|--------|-------|--------|
| Convertible notes payable, net |   |   | 724   |   |
|                           |   | $      | 3,374 |   |

----

----

----

|   | · | our Condensed Consolidated Balance Sheets as of December 31, 2009 and March 31, 2010 by increasing amounts reported in additional paid-in capital and accumulated deficit; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our Condensed Consolidated Statement of Operations for the three month period ended March 31, 2009 by increasing amounts reported in General and administrative expenses to reflect a change in valuation of certain equity issuances during the quarters ended March 31, September 30 and December 31, 2009 and increasing amounts reported in Loss from operations, Net loss and Net loss per share – basic and diluted. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                             |   | March 31,2009 |   |   | March 31,2010 |   |     | Change |   |
|----------------------------------|--------|--------------------|--------|--------|--------------------|--------|----------|--------|--------|
| Net cash provided by (used in):  |   |               |   |   |               |   |     |   |   |
| Operating activities             |   | $                  | (1,296 | )      |               | $      | (1,958   | )      |   | $ | (662 | ) |
| Investing activities             |   |               | (2     | )      |               |   | (— | )      |   |   | 2 |   |
| Financing activities             |   |               | 1,789  |   |               |   | 1,964    |   |   |   | 175 |   |
| Effect of exchange rates on cash |   |               | 59     |   |               |   | 23       |   |   |   | (38 | ) |
|                             |   |               |   |   |               |   |     |   |   |   |   |   |
| Increase in cash                 |   | $                  | 550    |   |               | $      | 29       |   |   | $ | (521 | ) |

----

| (i) | The Company's process for internally reporting material information in a systematic manner to allow for timely filing of material information is ineffective, due to its inherent limitations from being a small company, and there exist material weaknesses in internal control over financial reporting that contribute to the weaknesses in our disclosure controls and procedures.  These weaknesses include the lack of: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | appropriate segregation of duties; |
|--------|--------|------------------------------------|

|   | · | appropriate oversight and review; |
|--------|--------|-----------------------------------|

|   | · | internal accounting technical expertise; |
|--------|--------|------------------------------------------|

|   | · | preparation, review and verification of internally developed documentation; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | controls in place to insure that all material developments impacting the financial statements are reflected; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | executed agreements for significant contracts. |
|--------|--------|------------------------------------------------|

| (ii) | Lack of a sufficient number of independent directors for our board and audit committee.  We currently only have one independent director on our board, which is comprised of three directors, and on our audit committee.  Although we are considered a controlled company, whereby a group holds more than 50% of the voting power, and as such are not required to have a majority of our board of directors be independent it is our intention to have a majority of independent directors in due course. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iii) | Lack of a financial expert on our audit committee.  We currently do not have an audit committee financial expert, as defined by SEC regulations on our audit committee as defined by the SEC. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | Insufficient corporate governance policies.  Although we have a code of ethics which provides broad guidelines for corporate governance, our corporate governance activities and processes are not always formally documented.  Specifically, decisions made by the board to be carried out by management should be documented and communicated on a timely basis to reduce the likelihood of any misunderstandings regarding key decisions affecting our operations and management. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v) | Inadequate approval and control over transactions and commitments made on our behalf by related parties.  Specifically, during the year certain related party transactions were not effectively communicated to all internal personnel who needed to be involved to account for and report the transaction in a timely manner.  This resulted in material adjustments during the quarterly reviews and annual audit, respectively, that otherwise would have been avoided if effective communication and approval processes had been maintained. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| 3.1    |   | Seventh Amended and Restated Certificate of Incorporation (3.1)(1)                                                                                                                                                                               |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                             |
| 3.2    |   | Third Amended and Restated Bylaws (3.1)(2)                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                             |
| 3.3    |   | Amendment to the Seventh Amended and Restated Certificate of Incorporation (3.2)(2)                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                             |
| 3.4    |   | Amendment to Seventh Amended and Restated Certificate of Incorporation (3.4)(3)                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                             |
| *10.1  |   | Lease Agreement                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                             |
| *31.1  |   | Certification of President (Principal Executive Officer and Principal Financial and Accounting Officer), Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |   |                                                                                                                                                                                                                                             |
| *32.1  |   | Certification of President, Chief Executive Officer and Principal Financial and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                               |

----

| (1) | Incorporated by reference to the exhibit shown in the preceding parentheses filed with the Registrant’s registration statement Form S-1 (File No. 333-67350) on July 17, 2006. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference to the exhibit shown in the preceding parentheses filed with the Registrant’s Current Report on Form 8-K on June 22, 2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to the exhibit shown in the preceding parentheses filed with the Post-Effective Amendment No. 2 to the Registrant’s Registration Statement on Form S-1 on January 28, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | Filed herewith. |
|---|-----------------|

----

|                 | NORTHWEST BIOTHERAPEUTICS, INC |
|----------------------|--------------------------------|
|                 |                           |   |
| Dated: April 6, 2011 | By:                            | /s/ Alton L. Boynton |
|                 |                           | Alton L. Boynton |
|                 |                           | President and Chief Executive Officer |
|                 |                           | Principal Executive Officer |
|                 |                           | Principal Financial and Accounting Officer |

| By:    | /s/ Linda M. Powers      |   |
|--------|--------------------------|--------|
|   | Linda M. Powers          |   |
|   | Director and Chairperson |   |
|   |                     |   |
| By:    | /s/ Robert Farmer        |   |
|   | Robert Farmer            |   |
|   | Director                 |   |

----

| 3.1    |   | Seventh Amended and Restated Certificate of Incorporation (3.1)(1)                                                                                                                                                                               |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                             |
| 3.2    |   | Third Amended and Restated Bylaws (3.1)(2)                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                             |
| 3.3    |   | Amendment to the Seventh Amended and Restated Certificate of Incorporation (3.2)(2)                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                             |
| 3.4    |   | Amendment to Seventh Amended and Restated Certificate of Incorporation (3.4)(3)                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                             |
| *10.1  |   | Lease Agreement                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                             |
| *31.1  |   | Certification of President (Principal Executive Officer and Principal Financial and Accounting Officer), Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |   |                                                                                                                                                                                                                                             |
| *32.1  |   | Certification of President, Chief Executive Officer and Principal Financial and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                               |

----

| (1) | Incorporated by reference to the exhibit shown in the preceding parentheses filed with the Registrant’s registration statement Form S-1 (File No. 333-67350) on July 17, 2006. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference to the exhibit shown in the preceding parentheses filed with the Registrant’s Current Report on Form 8-K on June 22, 2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to the exhibit shown in the preceding parentheses filed with the Post-Effective Amendment No. 2 to the Registrant’s Registration Statement on Form S-1 on January 28, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | Filed herewith. |
|---|-----------------|

----