View Filing Data

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2015	Nov. 10, 2015
Entity Registrant Name	XBiotech Inc.
Entity Central Index Key	0001626878
Trading Symbol	xbit
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		32,184,465
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 105,680	$ 57,329
Prepaid expenses and other current assets	1,907	411
Deferred offering costs		324
Total current assets	107,587	58,064
Property and equipment, net	4,854	3,227
Building construction in progress	6,606	886
Total assets	119,047	62,177
Current liabilities:
Accounts payable	3,964	1,629
Accrued expenses	994	1,518
Total current liabilities	4,958	3,147
Long-term liabilities:
Deferred rent	12
Total liabilities	4,970	3,147
Shareholders’ equity:
Common stock, no par value, unlimited shares authorized, 32,052,965 and 27,546,632 shares outstanding at September 30, 2015 and December 31, 2014, respectively	232,850	152,351
Accumulated other comprehensive loss	(11)	(153)
Accumulated deficit	(118,762)	(93,168)
Total shareholders’ equity	114,077	59,030
Total liabilities and shareholders’ equity	$ 119,047	$ 62,177

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares outstanding (in shares)	32,052,965	27,546,632

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating expenses:
Research and development	$ 9,731	$ 4,341	$ 20,897	$ 9,937
General and administrative	1,083	2,639	4,542	5,452
Total operating expenses	10,814	6,980	25,439	15,389
Loss from operations	(10,814)	(6,980)	(25,439)	(15,389)
Other income (loss):
Foreign exchange income (loss)	78	17	(155)	17
Total other income (loss)	78	17	(155)	17
Net loss	$ (10,736)	$ (6,963)	$ (25,594)	$ (15,372)
Net loss per share—basic and diluted (in dollars per share)	$ (0.33)	$ (0.29)	$ (0.84)	$ (0.64)
Shares used to compute basic and diluted net loss per share (in shares)	32,050,565	24,116,917	30,342,741	23,873,486

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net loss	$ (10,736)	$ (6,963)	$ (25,594)	$ (15,372)
Foreign currency translation adjustment	(77)	100	142	(4)
Comprehensive loss	$ (10,813)	$ (6,863)	$ (25,452)	$ (15,376)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (25,594,000)	$ (15,372,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	510,000	433,000
Share-based compensation expense	3,355,000	4,972,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(1,496,000)	75,000
Accounts payable	1,124,000	717,000
Accrued expenses	(524,000)	926,000
Deferred rent	12,000
Net cash used in operating activities	(22,613,000)	(8,249,000)
Investing activities
Purchase of property and equipment	(1,959,000)	(818,000)
Expenditures on building construction	(4,687,000)	(28,000)
Net cash used in investing activities	(6,646,000)	(846,000)
Financing activities
Net proceeds from Initial Public Offering	70,558,000
Issuance of common stock and warrants, net	5,497,000	17,351,000
Issuance of common stock under stock option plan	678,000
Collection of stock subscription receivable	410,000
Deferred offering costs	325,000
Net cash provided by financing activities	77,468,000	17,351,000
Effect of foreign exchange rate on cash and cash equivalents	142,000	(4,000)
Net change in cash and cash equivalents	48,351,000	8,252,000
Cash and cash equivalents, beginning of period	57,329,000	7,244,000
Cash and cash equivalents, end of period	$ 105,680,000	$ 15,496,000

Note 1 - Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Significant Accounting Policies [Text Block]

Significant Accounting Policies

Basis of Presentation

These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or US GAAP.

In the Company’s opinion, the accompanying interim unaudited consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary for a fair presentation. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these interim unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for fiscal year ended December 31, 2014, which are included in the Company’s Registration Statement on Form S-1, filed with the SEC on April 14, 2015. The results of operations for the three and nine months ended September 30, 2015, are not necessarily indicative of the results to be expected for the year ending December 31, 2015, or for any other period.

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated upon consolidation.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported values of amounts in the financial statements and accompanying notes. Actual results could differ from those estimates.

Prior to its initial public offering on April 15, 2015, the Company utilized significant estimates and assumptions in determining the fair value of its common stock. The board of directors determined the estimated fair value of the Company’s common stock based on a number of objective and subjective factors, including the prices at which the Company sold shares of its common stock to third parties and external market conditions affecting the biotechnology industry sector.

Research and Development Costs

All research and development costs are charged to expense as incurred. Research and development costs include salaries and personnel-related costs, consulting fees, fees paid for contract clinical trial research services, the costs of laboratory consumables, equipment and facilities, license fees and other external costs. Costs incurred to acquire licenses for intellectual property to be used in research and development activities with no alternative future use are expensed as incurred as research and development costs.

Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed.

Income Taxes

The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of its taxable income or loss for the full fiscal year. The Company has accumulated significant deferred tax assets that reflect the tax effects of net operating losses and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings. The Company is uncertain about the timing and amount of any future earnings. Accordingly, the Company offsets these deferred tax assets with a valuation allowance. The Company may in the future determine that certain deferred tax assets will likely be realized, in which case the Company will reduce its valuation allowance in the period in which such determination is made. If the valuation allowance is reduced, the Company may recognize a benefit from income taxes in its statement of operations in that period.

Share-Based Compensation

The Company accounts for its share-based compensation awards in accordance with ASC Topic 718,

Compensation-Stock Compensation

(“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statements of operations based on their grant date fair values. For stock options granted to employees and to members of the board of directors for their services on the board of directors, the Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected life of the option and the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. For awards subject to service-based vesting conditions, the Company recognizes share-based compensation expense, equal to the grant date fair value of stock options, on a straight-line basis over the requisite service period.

Share-based compensation expense recognized for the three months and nine months ended September 30, 2015 and 2014 was included in the following line items on the Consolidated Statements of Operations (in thousands).

	Three Months Ended September 30,				Nine Months Ended September 30
	2015		2014		2015		2014
Research and development	$	701	$	2,269	$	1,677	$	2,810
General and administrative		185		255		1,678		2,162
Total share-based compensation expense	$	886	$	2,524	$	3,355	$	4,972

No related tax benefits were recognized for the three months and nine months ended September 30, 2015 and 2014.

Cash and Cash Equivalents

The Company considers highly liquid investments with a maturity of 90 days or less when purchased to be cash equivalents. Cash and cash equivalents consisted primarily of cash on deposit in U.S., German, Swiss and Canadian banks. Cash and cash equivalents are stated at cost which approximates fair value.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents. The Company holds these investments in highly-rated financial institutions, and limits the amounts of credit exposure to any one financial institution. These amounts at times may exceed federally insured limits. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. The Company has no off-balance sheet concentrations of credit risk, such as foreign currency exchange contracts, option contracts or other hedging arrangements.

Fair Value Measurements

The Company follows ASC Topic 820,

Fair Value Measurements and Disclosures

, which establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The hierarchy consists of three levels:

•

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities.

•

Level 2—Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.

•

Level 3—Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.

At September 30, 2015 and December 31, 2014, the Company did not have any assets or liabilities that were remeasured at fair value on a recurring basis. The carrying amounts reflected in the balance sheets for cash and cash equivalents, prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their fair values at September 30, 2015 and December 31, 2014, due to their short-term nature.

Property and Equipment

Property and equipment, which consists of land, furniture and fixtures, computers and office equipment, scientific equipment, leasehold improvements and vehicles are stated at cost and depreciated over the estimated useful lives of the assets, with the exception of land which is not depreciated, using the straight line method. The useful lives are as follows:


	• Furniture and fixtures (years)	7

	• Office equipment (years)	5

	• Leasehold improvements	Shorter of asset’s useful life or remaining lease term

	• Scientific equipment (years)	5

	• Vehicles (years)	5

Costs of major additions and betterments are capitalized; maintenance and repairs, which do not improve or extend the life of the respective assets, are charged to expense as incurred. Upon retirement or sale, the cost of the disposed asset and the related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized.

Building Construction in Progress

Building construction in progress consists of the accumulated expenditures to build the new XBiotech manufacturing facility located in Austin, Texas, which includes the cost for land cleaning, architecture design, engineering services, city permits, installation of utilities, construction materials and labor and construction management.

Impairment of Long-Lived Assets

The Company periodically evaluates its long-lived assets for potential impairment in accordance with ASC Topic 360,

Property, Plant and Equipment

. Potential impairment is assessed when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of these assets is assessed based on undiscounted expected future cash flows from the assets, considering a number of factors, including past operating results, budgets and economic projections, market trends and product development cycles. If impairments are identified, assets are written down to their estimated fair value. The Company has not recognized any impairment through September 30, 2015.

Foreign Currency Transactions

Certain transactions are denominated in a currency other than the Company’s functional currency of the U.S. dollar, and the Company generates assets and liabilities that are fixed in terms of the amount of foreign currency that will be received or paid. At each balance sheet date, the Company adjusts the assets and liabilities to reflect the current exchange rate, resulting in a translation gain or loss. Transaction gains and losses are also realized upon a settlement of a foreign currency transaction in determining net loss for the period in which the transaction is settled.

Comprehensive Income (Loss)

ASC Topic 220,

Comprehensive Income

, requires that all components of comprehensive income (loss), including net income (loss), be reported in the financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on investments and foreign currency translation adjustments.

Segment and Geographic Information

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company and the chief operating decision maker view the Company’s operations and manage its business as one operating segment. Substantially all of the Company’s operations are in the U.S. geographic segment.

Net Loss per Share

Net loss per share (“EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net loss by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which include stock options, is computed using the treasury stock method.

Subsequent Events

The Company considered events or transactions occurring after the balance sheet date but prior to the date the consolidated financial statements are available to be issued for potential recognition or disclosure in its consolidated financial statements. We have evaluated subsequent events through the date of filing this Form 10-Q.

Recent Accounting Pronouncements

In June 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10,

Elimination of Certain Financial Reporting Requirements, including an Amendment to Variable Interest Entities Guidance in Topic 810 Consolidation

. These updates remove the definition of a development stage entity from the Master Glossary of the ASC, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This standard is effective for annual reporting periods beginning after December 15, 2014. The Company has early adopted this standard in the presentation of its financial statements.

In August 2014 the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The ASU is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. For all entities, the ASU is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016.

Note 2 - Income Taxes

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Income Taxes

The Company did not provide for income taxes in 2015 because the Company has projected net loss for all jurisdictions for the full year 2015. The Company has recorded a full valuation allowance for its net deferred tax assets in 2015 and 2014.

Note 3 - Common Stock

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Common Stock

In February 2014, the Company sold 1.2 million shares of common stock for total proceeds of approximately $12.0 million from the exercise of warrants by its warrant holders. From July through November 18, 2014, the Company sold approximately 601,000 shares of common stock at a price of $15.00 per share for total proceeds of approximately $9.0 million. Each share had one warrant attached, which would be exercisable for 180 days into a single common share in the Company at a price of $15.00 per share. As of December 31, 2014, the Company had total warrants outstanding for the purchase of 493,000 shares of common stock at a price of $15.00 per share.

From November 24, 2014 through December 31, 2014, the Company sold 3.0 million shares of common stock at $15.00 per share pursuant to stock subscription agreements for total proceeds of $44.8 million of which $410,000 remained uncollected as of December 31, 2014 and was received in January 2015. The Company incurred issuance costs of approximately $1.9 million in cash and $0.4 million in non-cash consideration.

In December 2014, 15,000 stock options were exercised at a price of $10.00 for total proceeds of $0.15 million.

From January to March 2015, the Company received requests from investors for the exercise of warrants to purchase a total of 164,999 shares of common stock at $15.00 per share for a total of $2.4 million. Also, the Company received approximately $8,000 in January 2015 from 15,000 exercised options at $0.55 per share.

On April 17, 2015, the Company sold 4.0 million shares of common stock at $19.00 per share in its Initial Public Offering (“IPO”) resulting in net proceeds of $70.6 million.

From April to June 2015, excluding the IPO, the Company sold 208,333 shares of common stock for total proceeds of approximately $3.1 million from the exercise of warrants by common stock shareholders. Also, the Company received $0.7 million from 106,000 exercised stock options.

In July 2015, 12,000 stock options were exercised at a price of $2.50 for total proceeds of $30,000.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

Note 4 - Common Stock Options

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Common Stock Options

On November 11, 2005, the board of directors of the Company adopted a stock option plan (“the Plan”) pursuant to which the Company may grant incentive stock and non-qualified stock options to directors, officers, employees or consultants of the Company or an affiliate or other persons as the Compensation Committee may approve.

On March 13, 2015, the shareholders approved the 2015 Equity Incentive Plan adopted by the board of directors which approves the granting of incentive stock options, non-qualified stock options, restricted stock units, performance stock units and share appreciation rights to directors, officers, employees and consultants. The Company may grant incentive stock option and other stock-based awards to officers and employees as defined in Section 422 of the Internal Revenue Code of 1986 and may grant stock options and other stock based-awards to directors and consultants of the Company.

In February and August 2011 the Company granted stock options to a non-employee consultant that vest over 3 and 4 years, respectively. The fair value of these awards is remeasured at each reporting date until the date the consultant’s services are completed.

All options will be non-transferable and may be exercised only by the participant, or in the event of the death of the participant, a legal representative until the earlier of the options’ expiry date or the first anniversary of the participant’s death, or such other date as may be specified by the Compensation Committee.

The term of the options is at the discretion of the Compensation Committee, but may not exceed 10 years from the grant date. The options expire on the earlier of the expiration date or the date three months following the day on which the participant ceases to be a director, officer or employee of or consultant to the Company, or in the event of the termination of the participant with cause, the date of such termination.

The number of common shares reserved for issuance to any one person pursuant to this Plan shall not, in aggregate, exceed 5% of the total number of outstanding common shares. The exercise price per common share under each option will be the fair market value of such shares at the time of the grant. Upon stock option exercise, the Company issues new shares of common stock.

A summary of changes in common stock options issued under the Plan is as follows:

	Options			Exercise Price			Weighted- Average Exercise Price
Options outstanding at December 31, 2014		4,884,165		$0.55	–	$15.00	$	7.03
Granted		65,000			15.00			15.00
Exercised		(15,000	)		0.56			0.56
Forfeitures		(95,625	)	0.55	–	15.00		8.83

Options outstanding at March 31, 2015		4,838,540		$0.55	–	$15.00	$	7.12
Granted		219,528		10.00	–	21.99		19.04
Exercised		(106,000	)	2.50	–	10.00		6.32

Options outstanding at June 30, 2015		4,952,068		0.57	–	21.99		7.66
Granted		65,900			$16.91		$	16.91
Exercised		(12,000	)		2.50			2.50
Forfeitures		(7,625	)	10.00	–	15.00		14.26

Options outstanding at September 30, 2015		4,998,343		0.57	–	21.99		7.77

As of September 30, 2015, there was approximately $6.0 million of unrecognized compensation cost, related to stock options granted under the Plan which will be amortized to stock compensation expense over the next 2.11 years.

Note 5 - Net Loss Per Share

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Earnings Per Share [Text Block]

Net Loss per Share

The following summarizes the computation of basic and diluted net loss per share for the three months and nine months ended September 30, 2015 and 2014 (in thousands, except share and per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014

Net loss	$	(10,736	)	$	(6,963	)	$	(25,594	)	$	(15,372	)
Weighted-average number of common shares—basic and diluted		32,050,565			24,116,917			30,342,741			23,873,486
Net loss per share—basic and diluted	$	(0.33	)	$	(0.29	)	$	(0.84	)	$	(0.64	)

The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average common shares outstanding, because including them would have had an anti-dilutive effect due to the losses reported.

	Nine Months Ended September 30,
	2015		2014
Stock options		4,998,343		4,480,665
Warrants to purchase common stock		—		—
Total		4,998,343		4,480,665

Note 6 - Subsequent Events

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Subsequent Events [Text Block]

Subsequent Events

Subsequent to September 30, 2015, the Company received requests from employees for the exercise of stock options to purchase 13,1500 shares of the Company's common stock for a total of $359,876.92.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or US GAAP.

Consolidation, Policy [Policy Text Block]

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated upon consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Research and Development Expense, Policy [Policy Text Block]

Research and Development Costs

Income Tax, Policy [Policy Text Block]

Income Taxes

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Share-Based Compensation

The Company accounts for its share-based compensation awards in accordance with ASC Topic 718,

Compensation-Stock Compensation

	Three Months Ended September 30,				Nine Months Ended September 30
	2015		2014		2015		2014
Research and development	$	701	$	2,269	$	1,677	$	2,810
General and administrative		185		255		1,678		2,162
Total share-based compensation expense	$	886	$	2,524	$	3,355	$	4,972

No related tax benefits were recognized for the three months and nine months ended September 30, 2015 and 2014.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The Company follows ASC Topic 820,

Fair Value Measurements and Disclosures

•

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities.

•

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment


	• Furniture and fixtures (years)	7

	• Office equipment (years)	5

	• Leasehold improvements	Shorter of asset’s useful life or remaining lease term

	• Scientific equipment (years)	5

	• Vehicles (years)	5

Building Construction in Progress Policy [Policy Text Block]

Building Construction in Progress

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

The Company periodically evaluates its long-lived assets for potential impairment in accordance with ASC Topic 360,

Property, Plant and Equipment

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Transactions

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss)

ASC Topic 220,

Comprehensive Income

Segment Reporting, Policy [Policy Text Block]

Segment and Geographic Information

Earnings Per Share, Policy [Policy Text Block]

Net Loss per Share

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In June 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-10,

Elimination of Certain Financial Reporting Requirements, including an Amendment to Variable Interest Entities Guidance in Topic 810 Consolidation

Note 1 - Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2015

Notes Tables

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Months Ended September 30,				Nine Months Ended September 30
	2015		2014		2015		2014
Research and development	$	701	$	2,269	$	1,677	$	2,810
General and administrative		185		255		1,678		2,162
Total share-based compensation expense	$	886	$	2,524	$	3,355	$	4,972

Note 4 - Common Stock Options (Tables)

9 Months Ended

Sep. 30, 2015

Notes Tables

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Options			Exercise Price			Weighted- Average Exercise Price
Options outstanding at December 31, 2014		4,884,165		$0.55	–	$15.00	$	7.03
Granted		65,000			15.00			15.00
Exercised		(15,000	)		0.56			0.56
Forfeitures		(95,625	)	0.55	–	15.00		8.83

Options outstanding at March 31, 2015		4,838,540		$0.55	–	$15.00	$	7.12
Granted		219,528		10.00	–	21.99		19.04
Exercised		(106,000	)	2.50	–	10.00		6.32

Options outstanding at June 30, 2015		4,952,068		0.57	–	21.99		7.66
Granted		65,900			$16.91		$	16.91
Exercised		(12,000	)		2.50			2.50
Forfeitures		(7,625	)	10.00	–	15.00		14.26

Options outstanding at September 30, 2015		4,998,343		0.57	–	21.99		7.77

Note 5 - Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014

Net loss	$	(10,736	)	$	(6,963	)	$	(25,594	)	$	(15,372	)
Weighted-average number of common shares—basic and diluted		32,050,565			24,116,917			30,342,741			23,873,486
Net loss per share—basic and diluted	$	(0.33	)	$	(0.29	)	$	(0.84	)	$	(0.64	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Nine Months Ended September 30,
	2015		2014
Stock options		4,998,343		4,480,665
Warrants to purchase common stock		—		—
Total		4,998,343		4,480,665

Note 1 - Significant Accounting Policies (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Furniture and Fixtures [Member]
Property, Plant and Equipment, Useful Life			7 years
Office Equipment [Member]
Property, Plant and Equipment, Useful Life			5 years
Equipment [Member]
Property, Plant and Equipment, Useful Life			5 years
Vehicles [Member]
Property, Plant and Equipment, Useful Life			5 years
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 0	$ 0	$ 0	$ 0
Assets, Fair Value Disclosure, Recurring	0		0		$ 0
Liabilities, Fair Value Disclosure, Recurring	$ 0		0		$ 0
Impairment of Long-Lived Assets Held-for-use			$ 0
Number of Operating Segments			1

Note 1 - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Research and Development Expense [Member]
Share-based compensation expense	$ 701	$ 2,269	$ 1,677	$ 2,810
General and Administrative Expense [Member]
Share-based compensation expense	185	255	1,678	2,162
Share-based compensation expense	$ 886	$ 2,524	$ 3,355	$ 4,972

Note 2 - Income Taxes (Details Textual)	9 Months Ended
Note 2 - Income Taxes (Details Textual)	Sep. 30, 2015 USD ($)
Income Tax Expense (Benefit)	$ 0

Note 3 - Common Stock (Details Textual) - USD ($)		1 Months Ended					3 Months Ended			5 Months Ended	9 Months Ended
Note 3 - Common Stock (Details Textual) - USD ($)	Apr. 17, 2015	Jul. 31, 2015	Jan. 31, 2015	Dec. 31, 2014	Dec. 31, 2014	Feb. 28, 2014	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Nov. 18, 2014	Sep. 30, 2015	Sep. 30, 2014
Noncash Consideration of Stock Issuance Costs [Member]
Other Significant Noncash Transaction, Value of Consideration Given				$ 400,000
IPO [Member]
Stock Issued During Period, Shares, New Issues	4,000,000
Share Price	$ 19
Class of Warrant or Right, Exercised During Period						1,200,000			164,999
Proceeds from Warrant Exercises						$ 12,000,000		$ 3,100,000	$ 2,400,000
Stock Issued During Period, Shares, New Issues				3,000,000				208,333		601,000
Share Price				$ 15	$ 15					$ 15
Proceeds from Issuance of Common Stock				$ 44,800,000						$ 9,000,000
Class of Warrant or Right, Issued Number of Warrants Per Share										1
Class of Warrant or Right, Expiration Period										180 days
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 15	$ 15				$ 15	$ 15
Class of Warrant or Right, Outstanding				493,000	493,000
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable				$ 410,000	$ 410,000
Payments of Stock Issuance Costs				$ 1,900,000							$ (325,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		12,000	15,000		15,000		12,000	106,000	15,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price		$ 2.50	$ 0.55		$ 10		$ 2.50	$ 6.32	$ 0.56
Proceeds from Stock Options Exercised		$ 30,000	$ 8,000		$ 150,000			$ 700,000
Proceeds from Issuance Initial Public Offering	$ 70,600,000										$ 70,558,000

Note 4 - Common Stock Options (Details Textual) - The Plan [Member] - USD ($) $ in Millions	1 Months Ended		9 Months Ended
	Aug. 31, 2011	Feb. 28, 2011	Sep. 30, 2015
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 40 days
Any One Person [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum			5.00%
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 6

Note 4 - Changes in Common Stock Options Issued (Details) - $ / shares	1 Months Ended			3 Months Ended
	Jul. 31, 2015	Jan. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Minimum [Member]
Options outstanding (in dollars per share)	$ 0.57	$ 0.55		$ 0.57	$ 0.55	$ 0.55
Granted (in dollars per share)					10
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price					2.50
Forfeitures (in dollars per share)				10		0.55
Options outstanding (in dollars per share)			$ 0.55	0.57	0.57	0.55
Maximum [Member]
Options outstanding (in dollars per share)	$ 21.99	$ 15		21.99	15	15
Granted (in dollars per share)					21.99
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price					10
Forfeitures (in dollars per share)				15		15
Options outstanding (in dollars per share)			$ 15	$ 21.99	$ 21.99	$ 15
Options outstanding (in shares)	4,952,068	4,884,165		4,952,068	4,838,540	4,884,165
Options outstanding (in dollars per share)	$ 7.66	$ 7.03		$ 7.66	$ 7.12	$ 7.03
Granted (in shares)				65,900	219,528	65,000
Granted (in dollars per share)				$ 16.91	$ 19.04	$ 15
Exercised (in shares)	(12,000)	(15,000)	(15,000)	(12,000)	(106,000)	(15,000)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 2.50	$ 0.55	$ 10	$ 2.50	$ 6.32	$ 0.56
Forfeitures (in shares)				(7,625)		(95,625)
Forfeitures (in dollars per share)				$ 14.26		$ 8.83
Options outstanding (in shares)			4,884,165	4,998,343	4,952,068	4,838,540
Options outstanding (in dollars per share)			$ 7.03	$ 7.77	$ 7.66	$ 7.12
Options outstanding (in shares)	4,952,068	4,884,165	4,884,165	4,952,068	4,838,540	4,884,165

Note 5 - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net loss	$ (10,736)	$ (6,963)	$ (25,594)	$ (15,372)
Weighted-average number of common shares—basic and diluted (in shares)	32,050,565	24,116,917	30,342,741	23,873,486
Net loss per share—basic and diluted (in dollars per share)	$ (0.33)	$ (0.29)	$ (0.84)	$ (0.64)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note 5 - Potentially Dilutive Securities Outstanding (Details) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Employee Stock Option [Member]
Antidilutive securities (in shares)	4,998,343	4,480,665
Warrant [Member]
Antidilutive securities (in shares)
Antidilutive securities (in shares)	4,998,343	4,480,665

Note 6 - Subsequent Events (Details Textual) - USD ($)	1 Months Ended				3 Months Ended
Note 6 - Subsequent Events (Details Textual) - USD ($)	Nov. 13, 2015	Jul. 31, 2015	Jan. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	131,500
Stock Issued During Period, Value, Stock Options Exercised	$ 359,876.92
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		12,000	15,000	15,000	12,000	106,000	15,000