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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

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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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|                                                                                                                                                                                             |   | Page   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I — FINANCIAL INFORMATION                                                                                                                                                             |   |   |
|                                                                                                                                                                                             |   |   |
| Item 1. Financial Statements                                                                                                                                                                     |   |   |
|                                                                                                                                                                                             |   |   |
| Condensed Consolidated Balance Sheets as of December 31, 2009 and September 30, 2010 (unaudited)                                                                                                 |   | 3      |
|                                                                                                                                                                                             |   |   |
| Condensed Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2009 and 2010 and the period from March 18, 1996 (inception) to September 30, 2010 |   | 4      |
|                                                                                                                                                                                             |   |   |
| Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2009 and 2010 and the period from March 18, 1996 (inception) to September 30, 2010           |   | 5      |
|                                                                                                                                                                                             |   |   |
| Notes to Condensed Consolidated Financial Statements                                                                                                                                             |   | 6      |
|                                                                                                                                                                                             |   |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                              |   | 16     |
|                                                                                                                                                                                             |   |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                                                                                               |   | 20     |
|                                                                                                                                                                                             |   |   |
| Item 4. Controls and Procedures                                                                                                                                                                  |   | 21     |
|                                                                                                                                                                                             |   |   |
| PART II — OTHER INFORMATION                                                                                                                                                                |   |   |
|                                                                                                                                                                                             |   |   |
| Item 1. Legal Proceedings                                                                                                                                                                        |   | 23     |
|                                                                                                                                                                                             |   |   |
| Item 1A. Risk Factors                                                                                                                                                                            |   | 23     |
|                                                                                                                                                                                             |   |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                              |   | 23     |
|                                                                                                                                                                                             |   |   |
| Item 3. Defaults Upon Senior Securities                                                                                                                                                          |   | 24     |
|                                                                                                                                                                                             |   |   |
| Item 4. (Removed and Reserved)                                                                                                                                                                   |   | 24     |
|                                                                                                                                                                                             |   |   |
| Item 5. Other Information                                                                                                                                                                        |   | 24     |
|                                                                                                                                                                                             |   |   |
| Item 6. Exhibits                                                                                                                                                                                 |   | 25     |
|                                                                                                                                                                                             |   |   |
| SIGNATURES                                                                                                                                                                                       |   | 26     |
|                                                                                                                                                                                             |   |   |
| INDEX TO EXHIBITS                                                                                                                                                                                |   | 27     |

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|                                                                                                                                                                                                                                                                                                                        |   | December 31,2009 |     |   | September 30,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|----------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   | (Unaudited)       |   |
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |
| Assets                                                                                                                                                                                                                                                                                                                      |   |             |     |   |              |   |
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |
| Current assets:                                                                                                                                                                                                                                                                                                             |   |             |     |   |              |   |
| Cash                                                                                                                                                                                                                                                                                                                        |   | $                | 65       |   |              | $      | 80 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                   |   |             | 36       |   |              |   | 151 |   |
| Total current assets                                                                                                                                                                                                                                                                                                        |   |             | 101      |   |              |   | 231 |   |
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |   |   |
| Property and equipment:                                                                                                                                                                                                                                                                                                     |   |             |     |   |              |   |   |   |
| Laboratory equipment                                                                                                                                                                                                                                                                                                        |   |             | 29       |   |              |   | 29 |   |
| Office furniture and other equipment                                                                                                                                                                                                                                                                                        |   |             | 82       |   |              |   | 123 |   |
|                                                                                                                                                                                                                                                                                                                        |   |             | 111      |   |              |   | 152 |   |
| Less accumulated depreciation and amortization                                                                                                                                                                                                                                                                              |   |             | (111     | )      |              |   | (113 | ) |
| Property and equipment, net                                                                                                                                                                                                                                                                                                 |   |             | -        |   |              |   | 39 |   |
| Deposit and other non-current assets                                                                                                                                                                                                                                                                                        |   |             | 2        |   |              |   | 16 |   |
| Total assets                                                                                                                                                                                                                                                                                                                |   | $                | 103      |   |              | $      | 286 |   |
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |   |   |
| Liabilities And Stockholders’ Equity (Deficit)                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                            |   | $                | 3,249    |   |              | $      | 3,083 |   |
| Accounts payable, related party                                                                                                                                                                                                                                                                                             |   |             | 6,328    |   |              |   | 6,575 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                                            |   |             | 1,874    |   |              |   | 2,416 |   |
| Accrued expenses, related party                                                                                                                                                                                                                                                                                             |   |             | 1,329    |   |              |   | 1,023 |   |
| Notes payable                                                                                                                                                                                                                                                                                                               |   |             | 2,650    |   |              |   | 1,650 |   |
| Note payable to related parties                                                                                                                                                                                                                                                                                             |   |             | 4,000    |   |              |   | 4,000 |   |
| Convertible notes payable, net                                                                                                                                                                                                                                                                                              |   |             | -        |   |              |   | 1,054 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                   |   |             | 19,430   |   |              |   | 19,801 |   |
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |   |   |
| Long term liabilities:                                                                                                                                                                                                                                                                                                      |   |             |     |   |              |   |   |   |
| Notes payable, net                                                                                                                                                                                                                                                                                                          |   |             | -        |   |              |   | 1,676 |   |
| Convertible notes payable, net                                                                                                                                                                                                                                                                                              |   |             | 1,061    |   |              |   | 961 |   |
| Convertible notes payable to related party, net                                                                                                                                                                                                                                                                             |   |             | 298      |   |              |   | 785 |   |
| Total long term liabilities                                                                                                                                                                                                                                                                                                 |   |             | 1,359    |   |              |   | 3,422 |   |
| Total liabilities                                                                                                                                                                                                                                                                                                           |   |             | 20,789   |   |              |   | 23,223 |   |
|                                                                                                                                                                                                                                                                                                                        |   |             |     |   |              |   |   |   |
| 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 September 30, 2010 58,877,087 and 71,476,700 shares issued and outstanding at December 31, 2009 and September 30, 2010, respectively |   |             | 58       |   |              |   | 72 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                  |   |             | 169,202  |   |              |   | 185,220 |   |
| Deficit accumulated during the development stage                                                                                                                                                                                                                                                                            |   |             | (189,897 | )      |              |   | (208,111 | ) |
| Cumulative translation adjustment                                                                                                                                                                                                                                                                                           |   |             | (49      | )      |              |   | (118 | ) |
| Total stockholders’ equity (deficit)                                                                                                                                                                                                                                                                                  |   |             | (20,686  | )      |              |   | (22,937 | ) |
| Total liabilities andstockholders’ equity (deficit)                                                                                                                                                                                                                                                                   |   | $                | 103      |   |              | $      | 286 |   |

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NORTHWEST BIOTHERAPEUTICS, INC.

|                                                                                                           |   | Three months ended |    |   | Nine months ended |   |   | Period fromMarch 18,1996(Inception)to |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------|--------|--------|-------------------------------------------------|--------|
|                                                                                                           |   | September 30,           |    |   | September 30,          |   |   | September                                       |   |
|                                                                                                           |   | 2009                         |    |   | 2010                        |   |   | 2009                                            |   |   | 2010 |   |   | 30, 2010 |   |
| Revenues:                                                                                                      |   |                         |    |   |                        |   |   |                                            |   |   |   |   |   |   |   |
| Research material sales                                                                                        |   | $                            | 10      |   |                        | $      | 10     |                                            |   | $ | 10 |   |   | $ | 10 |   |   | $ | 570 |   |
| Contract research and development from related parties                                                         |   |                         | -       |   |                        |   | -      |                                            |   |   | - |   |   |   | - |   |   |   | 1,128 |   |
| Research grants and other                                                                                      |   |                         | -       |   |                        |   | -      |                                            |   |   | - |   |   |   | - |   |   |   | 1,061 |   |
| Total revenues                                                                                                 |   |                         | 10      |   |                        |   | 10     |                                            |   |   | 10 |   |   |   | 10 |   |   |   | 2,759 |   |
| Operating cost and expenses:                                                                                   |   |                         |    |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of research material sales                                                                                |   |                         | -       |   |                        |   | -      |                                            |   |   | - |   |   |   | - |   |   |   | 382 |   |
| Research and development                                                                                       |   |                         | 2,465   |   |                        |   | 1,606  |                                            |   |   | 7,437 |   |   |   | 4,791 |   |   |   | 71,704 |   |
| General and administration                                                                                     |   |                         | 2,356   |   |                        |   | 1,412  |                                            |   |   | 4,475 |   |   |   | 4,680 |   |   |   | 59,523 |   |
| Depreciation and amortization                                                                                  |   |                         | -       |   |                        |   | 2      |                                            |   |   | - |   |   |   | 2 |   |   |   | 2,353 |   |
| Loss on facility sublease                                                                                      |   |                         | -       |   |                        |   | -      |                                            |   |   | - |   |   |   | - |   |   |   | 895 |   |
| Asset impairment loss and other (gain) loss                                                                    |   |                         | -       |   |                        |   | -      |                                            |   |   | 389 |   |   |   | - |   |   |   | 2,445 |   |
| Total operating costs and expenses                                                                             |   |                         | 4,821   |   |                        |   | 3,020  |                                            |   |   | 12,301 |   |   |   | 9,473 |   |   |   | 137,302 |   |
| Loss from operations                                                                                           |   |                         | (4,811  | )      |                        |   | (3,010 | )                                               |   |   | (12,291 | ) |   |   | (9,463 | ) |   |   | (134,543 | ) |
| Other income (expense):                                                                                        |   |                         |    |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrant valuation                                                                                              |   |                         | -       |   |                        |   | -      |                                            |   |   | - |   |   |   | - |   |   |   | 6,759 |   |
| Loan conversion inducement                                                                                     |   |                         | (5,617  | )      |                        |   | -      |                                            |   |   | (5,617 | ) |   |   | (4,522 | ) |   |   | (10,139 | ) |
| Gain on sale of intellectual property and property and equipment                                               |   |                         | -       |   |                        |   | -      |                                            |   |   | - |   |   |   | - |   |   |   | 3,664 |   |
| Interest expense                                                                                               |   |                         | (1,813  | )      |                        |   | (632   | )                                               |   |   | (3,004 | ) |   |   | (4,229 | ) |   |   | (30,261 | ) |
| Interest income and other                                                                                      |   |                         | -       |   |                        |   | -      |                                            |   |   | - |   |   |   | - |   |   |   | 1,218 |   |
| Net loss                                                                                                       |   |                         | (12,241 | )      |                        |   | (3,642 | )                                               |   |   | (20,912 | ) |   |   | (18,214 | ) |   |   | (163,302 | ) |
| 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                                                                     |   | $                            | (12,241 | )      |                        | $      | (3,642 | )                                               |   | $ | (20,912 | ) |   | $ | (18,214 | ) |   | $ | (208,111 | ) |
| Net loss per share applicable to common stockholders — basic and diluted                                 |   | $                            | (0.27   | )      |                        | $      | (0.05  | )                                               |   | $ | (0.47 | ) |   | $ | (0.28 | ) |   |   |   |   |
| Weighted average shares used in computing basic and diluted net loss per share                                 |   |                         | 45,276  |   |                        |   | 70,413 |                                            |   |   | 44,583 |   |   |   | 65,361 |   |   |   |   |   |

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NORTHWEST BIOTHERAPEUTICS, INC.

|                                                                                                           |   | Nine Months EndedSeptember 30, |    |   | Period from March 18, 1996 (Inception) to September 30, |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|--------|---------------------------------------------------------|--------|
|                                                                                                           |   | 2009                           |    |   | 2010                                                    |   |   | 2010 |   |
| Cash Flows from Operating Activities:                                                                          |   |                           |    |   |                                                    |   |   |   |   |
| Net Loss                                                                                                       |   | $                              | (20,912 | )      |                                                    | $      | (18,214 | ) |   | $ | (163,302 | ) |
| Reconciliation of net loss to net cash used in operating activities:                                           |   |                           |    |   |                                                    |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                  |   |                           | -       |   |                                                    |   | 2 |   |   |   | 2,353 |   |
| Amortization of deferred financing costs                                                                       |   |                           | -       |   |                                                    |   | - |   |   |   | 320 |   |
| Amortization debt discount                                                                                     |   |                           | 819     |   |                                                    |   | 1,114 |   |   |   | 20,815 |   |
| Accrued interest converted to stock                                                                            |   |                           | -       |   |                                                    |   | 1,047 |   |   |   | 1,307 |   |
| Accreted interest on convertible promissory note                                                               |   |                           | -       |   |                                                    |   | - |   |   |   | 1,484 |   |
| Stock-based compensation costs                                                                                 |   |                           | 1,909   |   |                                                    |   | 1,512 |   |   |   | 11,016 |   |
| Stock and warrants issued for services and other expenses                                                      |   |                           | 2,576   |   |                                                    |   | 3,593 |   |   |   | 6,592 |   |
| Loan conversion inducement                                                                                     |   |                           | 5,617   |   |                                                    |   | 4,522 |   |   |   | 10,139 |   |
| Warrant valuation                                                                                              |   |                           | -       |   |                                                    |   | - |   |   |   | (6,759 | ) |
| Asset impairment loss and loss (gain) on sale of properties                                                    |   |                           | 389     |   |                                                    |   | - |   |   |   | (936 | ) |
| Loss on facility sublease                                                                                      |   |                           | -       |   |                                                    |   | - |   |   |   | 895 |   |
| Increase (decrease) in cash resulting from changes in assets and liabilities:                                  |   |                           |    |   |                                                    |   |   |   |   |   |   |   |
| Prepaid expenses and other current assets                                                                      |   |                           | 956     |   |                                                    |   | (129 | ) |   |   | 559 |   |
| Accounts payable and accrued expenses                                                                          |   |                           | 444     |   |                                                    |   | 380 |   |   |   | 5,425 |   |
| Related party accounts payable and accrued expenses                                                            |   |                           | 4,222   |   |                                                    |   | (59 | ) |   |   | 7,598 |   |
| Accrued loss on sublease                                                                                       |   |                           | -       |   |                                                    |   | - |   |   |   | (265 | ) |
| Deferred rent                                                                                                  |   |                           | -       |   |                                                    |   | - |   |   |   | 410 |   |
| Net Cash used in Operating Activities                                                                          |   |                           | (3,980  | )      |                                                    |   | (6,232 | ) |   |   | (102,349 | ) |
| Cash Flows from Investing Activities:                                                                          |   |                           |    |   |                                                    |   |   |   |   |   |   |   |
| Purchase of property and equipment, net                                                                        |   |                           | (2      | )      |                                                    |   | (41 | ) |   |   | (5,044 | ) |
| 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      | )      |                                                    |   | (41 | ) |   |   | (2,008 | ) |
| Cash Flows from Financing Activities:                                                                          |   |                           |    |   |                                                    |   |   |   |   |   |   |   |
| Proceeds from issuance of note payable                                                                         |   |                           | -       |   |                                                    |   | - |   |   |   | 4,710 |   |
| Proceeds from issuance of convertible notes payable to related parties                                         |   |                           | 1,340   |   |                                                    |   | 2,667 |   |   |   | 3,967 |   |
| Proceeds from issuance of note payable to related parties                                                      |   |                           | 1,375   |   |                                                    |   | - |   |   |   | 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                                                                       |   |                           | 1,394   |   |                                                    |   | 3,690 |   |   |   | 53,426 |   |
| 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                                                                      |   |                           | 4,109   |   |                                                    |   | 6,357 |   |   |   | 104,555 |   |
| Effect of exchange rates on cash                                                                               |   |                           | (28     | )      |                                                    |   | (69 | ) |   |   | (118 | ) |
| Net increase in cash                                                                                      |   |                           | 99      |   |                                                    |   | 15 |   |   |   | 80 |   |
| Cash at beginning of period                                                                                    |   |                           | 16      |   |                                                    |   | 65 |   |   |   | - |   |
| Cash at end of period                                                                                          |   | $                              | 115     |   |                                                    | $      | 80 |   |   | $ | 80 |   |
|                                                                                                           |   |                           |    |   |                                                    |   |   |   |   |   |   |   |
| 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 conversion of notes payable and accrued interest notes                  |   |                           | 1,500   |   |                                                    |   | 1,004 |   |   |   | 2,504 |   |
| 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                                                                              |   |                           | 2,028   |   |                                                    |   | 664 |   |   |   | 11,501 |   |
| 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                                                                                  |   |                           | -       |   |                                                    |   | - |   |   |   | 480 |   |

----

----

|                           |   | Three months endedSeptember 30 |   |   | Nine Months endedSeptember 30 |   |
|--------------------------------|--------|-----------------------------------------------|--------|--------|----------------------------------------------|--------|
|                           |   | 2009                                          |   |   | 2010                                         |   |   | 2009 |   |   | 2010 |   |
| Research and development       |   | $                                             | 139    |   |                                         | $      | 163 |   |   | $ | — |   |   | $ | 525 |   |
| General and administrative     |   |                                          | 329    |   |                                         |   | 329 |   |   |   | 658 |   |   |   | 987 |   |
| Total stock-based compensation |   | $                                             | 468    |   |                                         | $      | 492 |   |   | $ | 658 |   |   | $ | 1,512 |   |

During the three month periods ended September 30, 2009 and 2010 options to purchase 850,000 and 50,000, respectively, shares of common stock were issued. During the nine month periods ended September 30, 2009 and 2010 options to purchase 850,000 and 100,000, respectively, shares of common stock were issued

----

Toucan Partners loaned the Company $500,000 on December 22, 2008 under the terms of an unsecured 12% promissory note (the “Toucan Partners December Loan”).  In connection with the promissory note, the Company issued to Toucan Partners a warrant to purchase 132,500 shares of common stock at an exercise price of $0.40 per share and a term of 5 years.  On September 28, 2009, the note principal and accrued interest (including a default penalty of 0.25% per month) amounting to $552,738 was converted to 2,763,691 shares of common stock at a conversion rate of $0.20.  To bring the December Loan into conformity with the SDS and Private Lender notes issued inOctober and November 2008, as agreed by the parties at the time of the Toucan Partners December Loan, the Company issued Toucan Partners a warrant to purchase 513,841 shares of common stock at an exercise price of $0.41 per share.  In connection with the conversion, the Company issued Toucan Partners a warrant to purchase 152,375 shares of common stock at an exercise price of $0.20 per share.

Toucan Partners and the Board's Chairperson also received a total of 2,504,034 shares of common stock as compensation for services rendered during 2008 and 2009.

|   | • | 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 13,460,691 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; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | warrants to purchase 86,667 shares of common stock at an exercise price of $0.75; and |
|--------|---------|--------------------------------------------------------------------------------------------|

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

----

During the three months ended June 30, 2010 the Company issued 2,333,333 shares of common stock at $0.75 per share plus ten percent warrant coverage for net proceeds of $1,750,000.  As a result, the Company issued warrants to purchase 233,333 shares of common stock at an exercise price of $0.75 per share for a period of three years from the date of issue.

----

----

| 5. | Notes Payable |
|----|---------------|

|                                                                                                                                                            |   | December 31,2009 |   |   | September 30,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|------------------------|--------|
| 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 $515 in 2009 and 2010, respectively) |   |                  | 298    |   |                   |   | 785 |   |
|                                                                                                                                                            |   |                  | 4,298  |   |                   |   | 4,785 |   |
| Less current portion                                                                                                                                            |   |                  | (4,000 | )      |                   |   | (4,000 | ) |
| Long-term notes payable to related parties (net)                                                                                                                |   | $                     | 298    |   |                   | $      | 785 |   |

|                                                                                                                                                           |   | December 31,2009 |   |   | September 30,2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|------------------------|--------|
| 12% unsecured note payable to SDS                                                                                                                              |   | $                     | 1,000  |   |                   | $      | 1,000 |   |
| 12% unsecured notes payable to SDS and Private Investors                                                                                                       |   |                  | 1,650  |   |                   |   | 650 |   |
| 6% unsecured convertible notes payable to Private Lenders, due in August and September 2011, (net of discount of $485 and $268 in 2009 and 2010, respectively) |   |                  | 95     |   |                   |   | 312 |   |
| 6% unsecured convertible notes payable to Private Lenders, due March 25, 2011, (net of discount of $46 and $18 in 2009 and 2010, respectively)                 |   |                  | 604    |   |                   |   | 632 |   |
| 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 $114 in 2009 and 2010, respectively)                |   |                  | 21     |   |                   |   | 101 |   |
| 6% unsecured convertible notes payable to Private Lenders, due October and December 2011, (net of discount of $274 and $168 in 2009 and 2010, respectively)    |   |                  | 231    |   |                   |   | 337 |   |
| 6% unsecured convertible notes payable to Private Lenders, due between January and March 2012, (net of discount of $394 in 2010)                               |   |                  | -      |   |                   |   | 481 |   |
| 6% unsecured notes payable to Private Lenders, due February 14, 2012, (net of discount of $74 in 2010)                                                         |   |                  | -      |   |                   |   | 1,676 |   |
| 6% unsecured convertible note payable, due March 18, 2012                                                                                                      |   |                  | -      |   |                   |   | 42 |   |
|                                                                                                                                                           |   |                  | 3,711  |   |                   |   | 5,341 |   |
| Less current portion                                                                                                                                           |   |                  | (2,650 | )      |                   |   | (2,704 | ) |
| Long-term notes payable (net)                                                                                                                                  |   | $                     | 1,061  |   |                   | $      | 2,637 |   |

| Notes payable                  |   | $      | 1,650 |   |
|--------------------------------|--------|--------|-------|--------|
| Convertible notes payable, net |   |   | 1,054 |   |
|                           |   | $      | 2,704 |   |

| Notes payable, net             |   | $      | 1,676 |   |
|--------------------------------|--------|--------|-------|--------|
| Convertible notes payable, net |   |   | 961   |   |
|                           |   | $      | 2,637 |   |

----

|                                     |   | Three Months Ended September 30 |   |   | Nine Months Ended September 30 |   |
|------------------------------------------|--------|-----------------------------------------------------|--------|--------|----------------------------------------------------|--------|
|                                     |   | 2009                                                |   |   | 2010                                               |   |   | 2009 |   |   | 2010 |   |
| Common stock options                     |   |                                                | 4,100  |   |                                               |   | 4,110 |   |   |   | 4,100 |   |   |   | 4,110 |   |
| Common stock warrants                    |   |                                                | 36,600 |   |                                               |   | 38,200 |   |   |   | 36,600 |   |   |   | 38,200 |   |
| Convertible notes                        |   |                                                | 4,600  |   |                                               |   | 20,000 |   |   |   | 4,600 |   |   |   | 20,000 |   |
| Excluded potentially dilutive securities |   |                                                | 45,300 |   |                                               |   | 62,310 |   |   |   | 45,300 |   |   |   | 62,310 |   |

Cognate has moved its operations from Sunnyvale, California to its newer facility in Memphis, Tennessee. The current capacity in Memphis (using only part of the facility) is approximately 600 patients per year, which we believe will be sufficient for our Phase II clinical trial for DCVax ® -Brain. We have made arrangements with Cognate to accommodate an increase in production capacity in the current facility on a stepwise or modular basis based on demand from approximately 600 patients to over 5,000 patients per year.

----

Toucan Capital 
Toucan 

----

----

----

Our financing activities are described below under “— Liquidity and Capital Resources”. We will need to raise additional capital to fund our operations, including our Phase II DCVax ® -Brain clinical trial. Depending on the trial results, we plan to seek product approval for DCVax ® -Brain, our leading product candidate, in both the U.S. and E.U.

----

General and Administrative Expense. General and administrative expense was $1.4 million for the three months ended September 30, 2010 compared to $2.4 million for the three months ended September 30, 2009.  The decrease was due to lower staffing and consulting costs.

----

----

|                             |   | Nine Months Ended |    |         |             |   |
|----------------------------------|--------|-----------------------------|---------|--------------|------------------|--------|
|                             |   | September30,2009            |    |         | September30,2010 |   |   | Change |   |
| Net cash provided by (used in):  |   |                        |    |         |             |   |   |   |   |
| Operating activities             |   | $                           | (3,980) |         |             | $      | (6,232 | ) |   | $ | (2,252 | )  |
| Investing activities             |   |                        | (2)     |         |             |   | (41 | )  |   |   | (39 | )  |
| Financing activities             |   |                        | 4,109   |         |             |   | 6,357 |   |   |   | 2,248 |   |
| Effect of exchange rates on cash |   |                        | (28)    |    |             |   | (69) |   |   |   | (41) |   |
| Increase in cash                 |   | $                           | 99      |         |             | $      | 15 |   |   | $ | (84) |   |

----

Additional funding will be required in the near future and there can be no assurance that our efforts to seek such funding will be successful. If our capital raising efforts are unsuccessful, our inability to obtain additional cash as needed could have a material adverse effect on our financial position, results of operations and our ability to continue our existence. Our independent registered public accounting firm has indicated in its report on our financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2009 that there is substantial doubt about our ability to continue as a going concern. We may seek additional funds throughthe issuance of additional common stock or other securities (equity or debt) convertible into shares of common stock, which could dilute the ownership interest of our stockholders. We may seek funding from Toucan Capital or Toucan Partners or their affiliates or other third parties. Such parties are under no obligation to provide us any additional funds, and any such funding may be dilutive to stockholders and may contain restrictive covenants that could limit our ability to take certain actions.

----

          Based on management's evaluation as of September 30, 2010, our management identified the material weaknesses set forth below in our internal control over financial reporting:

| (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. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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| 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)                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                             |
| *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. |
|---|-----------------|

----

SIGNATURES

|                 | NORTHWEST BIOTHERAPEUTICS, INC |
|----------------------|--------------------------------|
|                 |                           |   |
| Dated: March 1, 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 |
|                 |                           |   |
|                 |                           |   |
|                 | 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)                                                                                                                                                             |
| *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. |
|---|-----------------|

----