View Filing Data

Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2016	Mar. 15, 2017
Document Information [Line Items]
Entity Registrant Name	XBiotech Inc.
Entity Central Index Key	0001626878
Trading Symbol	xbit
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		35,148,812
Entity Public Float	$ 330,192,230
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 34,324	$ 91,051
Prepaid expenses and other current assets	2,606	1,990
Total current assets	36,930	93,041
Property and equipment, net	10,142	5,946
Building construction in progress	19,978	10,371
Total assets	67,050	109,358
Current liabilities:
Accounts payable	4,431	4,825
Accrued expenses	3,532	1,466
Total current liabilities	7,963	6,291
Long-term liabilities:
Deferred rent	23	17
Total liabilities	7,986	6,308
Shareholders’ equity:
Preferred Stock, no par value, unlimited shares authorized, no shares outstanding	0	0
Common stock, no par value, unlimited shares authorized, 32,627,691 and , 32,279,106 shares outstanding at December 31, 2016 and December 31, 2015, respectively	242,419	233,902
Accumulated other comprehensive loss	57	(201)
Accumulated deficit	(183,412)	(130,651)
Total shareholders’ equity	59,064	103,050
Total liabilities and shareholders’ equity	$ 67,050	$ 109,358

Consolidated Balance Sheets (Parentheticals) - $ / shares $ / shares in Thousands	Dec. 31, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares outstanding (in shares)	32,627,691	32,279,106

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating expenses:
Research and development	$ 42,486	$ 31,310	$ 14,329
General and administrative	10,277	6,200	7,449
Total operating expenses	52,763	37,510	21,778
Loss from operations	(52,763)	(37,510)	(21,778)
Other income (loss):
Interest income	49		1
Other income		21
Foreign exchange gain (loss)	(47)	6	53
Total other income (loss)	2	27	54
Net loss	$ (50,722)	$ (37,483)	$ (21,724)
Net loss per share—basic and diluted (in dollars per share)	$ (1.63)	$ (1.22)	$ (0.90)
Shares used to compute basic and diluted net loss per share (in shares)	32,403,391	30,801,994	24,162,700

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net loss	$ (50,722)	$ (37,483)	$ (21,724)
Foreign currency translation adjustment	258	(48)	(18)
Comprehensive loss	$ (52,503)	$ (37,531)	$ (21,742)

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2013	22,752
Balance at Dec. 31, 2013	$ 81,807	$ (135)	$ (71,444)	$ 10,228
Net loss			(21,724)	(21,724)
Foreign currency translation adjustment		(18)		(18)
Issuance of common stock, net of issuance cost (in shares)	4,780
Issuance of common stock, net of issuance cost	$ 63,784			63,784
Issuance of common stock under stock option plan (in shares)	15
Issuance of common stock under stock option plan	$ 150			150
Stock subscription receivable	(410)			(410)
Share-based compensation expense	$ 7,020			7,020
Balance (in shares) at Dec. 31, 2014	27,547
Balance at Dec. 31, 2014	$ 152,351	(153)	(93,168)	59,030
Net loss			(37,483)	(37,483)
Foreign currency translation adjustment		(48)		(48)
Issuance of common stock, net of issuance cost (in shares)	4,373
Issuance of common stock, net of issuance cost	$ 75,386			75,386
Issuance of common stock under stock option plan (in shares)	359
Issuance of common stock under stock option plan	$ 1,348			1,348
Share-based compensation expense	$ 4,407			4,407
Balance (in shares) at Dec. 31, 2015	32,279
Balance at Dec. 31, 2015	$ 233,902	(201)	(130,651)	103,050
Collection of stock subscription receivable	410			410
Net loss			(52,761)	(50,722)
Foreign currency translation adjustment		258		258
Issuance of common stock, net of issuance cost (in shares)	145
Issuance of common stock, net of issuance cost	$ 1,808			1,808
Issuance of common stock under stock option plan (in shares)	204
Issuance of common stock under stock option plan	$ 1,136			1,136
Share-based compensation expense	$ 5,573			5,573
Balance (in shares) at Dec. 31, 2016	32,628
Balance at Dec. 31, 2016	$ 242,419	$ 57	$ (183,412)	$ 59,064

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities
Net loss	$ (50,722,000)	$ (37,483,000)	$ (21,724,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	698,000	699,000	664,000
Share-based compensation expense	5,573,000	4,407,000	7,020,000
Gain on disposal of property and equipment		(157,000)
Changes in operating assets and liabilities:
Prepaid expenses and other current	(617,000)	(1,579,000)	38,000
Accounts payable	(981,000)	840,000	1,068,000
Accrued expenses	2,066,000	(52,000)	1,234,000
Deferred rent	7,000	17,000
Net cash used in operating activities	(46,015,000)	(33,308,000)	(11,700,000)
Investing activities
Purchase of property and equipment	(4,746,000)	(2,322,000)	(1,397,000)
Expenditures on building construction	(9,168,000)	(8,070,000)
Net cash used in investing activities	(13,914,000)	(10,392,000)	(1,397,000)
Financing activities
Issuance of common stock and warrants, net	1,808,000	75,712,000	63,374,000
Issuance of common stock under stock option plan	1,136,000	1,348,000	150,000
Collection of subscription receivable		410,000
Deferred offering costs			(324,000)
Net cash provided by financing activities	2,944,000	77,470,000	63,200,000
Effect of foreign exchange rate on cash and cash equivalents	(258,000)	48,000	18,000
Net change in cash and cash equivalents	(56,727,000)	33,722,000	50,085,000
Cash and cash equivalents, beginning of period	91,051,000	57,329,000	7,244,000
Cash and cash equivalents, end of period	34,324,000	91,051,000	57,329,000
Supplemental Information:
Accrued purchases of property and equipment	148,000	940,000	19,000
Accrued expenditures on building construction	$ 439,000	$ 1,416,000	$ 224,000

Note 1 - Organization	12 Months Ended
Note 1 - Organization	Dec. 31, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Organization XBiotech Inc. (XBiotech or the Company) was incorporated in Canada on March 22, 2005. XBiotech USA, Inc., a wholly-owned subsidiary of the Company, was incorporated in Delaware, United States in November 2007. XBiotech Switzerland AG, a wholly-owned subsidiary of the Company, was incorporated in Zug, Switzerland in August 2010. XBiotech Japan K.K., a wholly-owned subsidiary of the Company, was incorporated in Tokyo, Japan in March 2013. XBiotech Germany GmbH, a wholly-owned subsidiary of the Company, was incorporated in Germany in January 2014. The Company’s headquarters are located in Austin, Texas. Since its inception, XBiotech has focused on advancing technology to rapidly identify and clone antibodies from individuals that have resistance to disease. At the heart of the Company is a proprietary technical knowhow to translate natural human immunity into therapeutic product candidates. In 2005, the Company began to develop a new framework for commercial manufacturing, using technology that required less capital, fewer operators and provided greater flexibility than standard industry practices. With the manufacturing capability to produce its True Human ™ antibody therapy, in 2010 the Company began a clinical trial program. The first clinical trial program at MD Anderson Cancer Center began treating the sickest cancer patients irrespective of tumor type. Soon thereafter, the Company used the same antibody therapy in various clinical studies at treatment centers around the United States (U.S.) and abroad to investigate the antibody effect in patients that had vascular disease, leukemia, type 2 diabetes, psoriasis or acne. The Company continues to be subject to a number of risks common to companies in similar stages of development. Principal among these risks are the uncertainties of technological innovations, dependence on key individuals, development of the same or similar technological innovations by the Company’s competitors and protection of proprietary technology. The Company’s ability to fund its planned clinical operations, including completion of its planned trials, is expected to depend on the amount and timing of cash receipts from future collaboration or product sales and/or financing transactions. The Company believes that its cash and cash equivalents of $34.3 million at December 31, 2016, and the proceeds of $31.6 million from the issuance of common stock in March 2017 (See Note 11) will enable the Company to achieve several major inflection points, including potential marketing authorization in Europe, completion of ongoing clinical studies in oncology and infectious disease, as well as launching its new manufacturing center. We expect to have sufficient cash through one year from the report issuance date.

Note 2 - Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

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 (US GAAP).

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 U.S. 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. After the initial public offering, the fair market value is calculated by using the closing price of the Company’s common stock as reported by NASDAQ.

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.

The GAAP guidance requires recognition of the impact of a tax position in our financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense. Determining the consolidated provision for income taxes involves judgments, estimates and the application of complex tax regulations. We are required to provide for income taxes in each of the jurisdictions where we operate, including estimated liabilities for uncertain tax positions. Although we believe that we have provided adequate liabilities for uncertain tax positions, the actual liability resulting from examinations by taxing authorities could differ from the recorded income tax liabilities and could result in additional income tax expense having a material impact on our consolidated results of operations. Changes of estimates in our income tax liabilities are reflected in our income tax provision in the period in which the factors resulting in the change to our estimate become known to us. We benefit from the tax credit incentives under the U.S. research and experimentation tax credit extended to taxpayers engaged in qualified research and experimental activities while carrying on a trade or business.

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 years ended

December

31,

2016,

2015

and

2014

was included in the following line items on the Consolidated Statements of Operations (in thousands).

	Year Ended December 31,
	2016		2015		2014

Research and development	$	2,095	$	2,204	$	1,303
General and administrative		3,478		2,203		5,717

Total share-based compensation expense	$	5,573	$	4,407	$	7,020

related tax benefits were recognized for the years ended

December

31,

2016,

2015

and

2014.

The fair value of each option is estimated on the date of grant using the Black-Scholes method with the following assumptions:

	Year Ended December 31,
	2016			2015			2014

Weighted-average grant date fair value per share		$7.29			$17.95			$8.23
Expected volatility	65%	-	70%	66%	-	71%	70%	-	73%
Risk-free interest rate	1.09%	-	2.44%	1.07%	-	2.42%	0.69%	-	2.73%
Expected life (in years)	5	-	10	3	-	10	3	-	10
Dividend yield		—			—			—

We based our estimate of pre-vesting forfeitures, or forfeiture rate, on historical forfeiture rates. We apply the estimated forfeiture rate to the total estimated fair value of the awards, as derived from the Black-Scholes model, to compute the share-based compensation expenses, net of pre-vesting forfeitures, to be recognized in our consolidated statements of operations.

Cash and Cash Equivalents

The Company considers highly liquid investments with a maturity of

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.

December

31,

2016

and

2015,

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

December

31,

2016

and

2015,

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	7 years

•	Office equipment	5 years

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

•	Scientific equipment	5 years

•	Vehicles	5 years

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 clearing, architecture design, engineering services, city permits, installation of utilities, construction materials and labor and construction management. The office place in the building will be placed in service and the Company will start to commence depreciation in

January

2017.

The manufacturing facility is still in the process of validation. The Company will commence depreciation over its estimated useful life once it is placed into service.

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

December

31,

2016.

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

-K.

Recent Accounting Pronouncements

August

2014,

the FASB issued ASU

2014

, 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.

The adoption of this standard did not have a material effect on the Company’s financial statements or disclosures.

February

2016

the FASB issued final guidance that will change the accounting for leases. The FASB issued final guidance that requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance also eliminates today’s real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. All entities classify leases to determine how to recognize lease-related revenue and expense. Classification continues to affect what lessors record on the balance sheet. For calendar-year public business entities and certain calendar-year not-for-profit entities and employee benefit plans, the guidance is effective in

2019,

and interim periods within that year. For other calendar-year entities, it is effective in

2020,

and interim periods in

2021.

Early adoption is permitted for all entities. The adoption of this standard will require the Company to record its operating leases on the balance sheet.

November

2015,

the FASB issued ASU

2015

17,

Balance Sheet Classification of Deferred Taxes. We adopted these accounting changes on a prospective basis during the

three

months ended

December

31,

2016.

To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update apply to all entities that present a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods. The adoption of this standard did not have a material effect on the Company’s financial statements or disclosures.

Note 3 - Property and Equipment

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment and Building Construction in Progress

Property and equipment consisted of the following as of

December

31,

2016

and

2015

(in thousands):

	2016			2015
Computer and office equipment	$	456		$	335
Furniture and fixtures		132			132
Land		1,418			1,418
Leasehold improvements		794			770
Scientific equipment		6,116			5,595
Vehicle		30			30
Construction in process		6,645			2,417
Accumulated depreciation		(5,449	)		(4,751	)
	$	10,142		$	5,946

Depreciation expenses related to property and equipment amounted to approximately

$698,000,

$699,000,

and

$664,000

and for the years ended

December

31,

2016,

2015

and

2014,

respectively. Construction in process is related to research and development and manufactory equipment.

Building construction in progress

19,978

10,371

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 clearing, architecture design, engineering services, city permits, installation of utilities, construction materials and labor and construction management. The office space in the building will be placed in service and the Company will start to commence depreciation in

January

2017.

The manufacturing facility is still in the process of validation. The Company will commence depreciation over its estimated useful life once it is placed into service.

Note 4 - Accrued Expenses

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Accrued Expenses

Accrued expenses consist of the following as of

December

31,

2016,

and

2015

(in thousands):

	2016		2015
Accrued compensation and related	$	413	$	319
Accrued professional fees		95		119
Accrued new building construction fees		521		421
Accrued clinical trial		2,402		278
Other		101		329
	$	3,532	$	1,466

Note 5 - Common Stock	12 Months Ended
Note 5 - Common Stock	Dec. 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	5. Common Stock Pursuant to its Articles, the Company has an unlimited number of shares available for issuance with no par value. 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, warrants to purchase a total of 164,999 shares of common stock were exercised at $15.00 per share for a total of $2.5 million. Also, the Company received approximately $8,000 in January 2015 from 15,000 exercised stock 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 issued 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. From October through December 31, 2015, 226,141 shares of common stock were issued upon the exercise of stock options at the price between $0.53 to $10 per share for total proceeds of $639,253. From January through December 2016, 204 thousand shares of common stock were issued upon the exercise of stock options at a price of $ 0.74 to $19.09 per share for a total of $1.1 million. From November through December 2016, under the Common Stock Sales Agreement with H.C. Wainwright & Co. LLC, the Company sold 145 thousand shares of common stock at a price between $13.60 to $14.17 per share for total proceeds of $1.8 million.

- 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 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

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 210
-SubTopic 10
-Section S99
-Paragraph 1
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+ Details

Note 6 - Common Stock Options

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

Common Stock Options

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.

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

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 an 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. Options held by non-employee Directors have an exercise period coterminous with the term of the options.

The number of common shares reserved for issuance to any

one

person pursuant to this Plan shall not, in aggregate, exceed

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, 2013		3,393,499			$0.60–$15.00	$	6.02
Granted		1,563,666			1.00–15.00		11.23
Exercised		(15,000	)		10.00		10.00
Forfeitures		(58,000	)		2.50–15.00		10.63
Options outstanding at December 31, 2014		4,884,165			$0.55-$15.00	$	7.03
Granted		375,928			8.47-21.99		17.95
Exercised		(359,141	)		0.53-10.00		3.75
Forfeitures		(114,375	)		0.55-20.93		11.05
Options outstanding at December 31, 2015		4,786,577			$0.53-$21.99	$	8.56
Granted		1,059,990			7.71-19.10		11.72
Exercised		(204,159	)		0.74-19.09		5.56
Forfeitures		(453,750	)		0.52-16.91		12.79
Options outstanding at December 31, 2016		5,188,658			$0.52- $21.99	$	8.49

The weighted average fair value of the options issued to directors, employees and consultants during the fiscal years ended

December

31,

2016,

2015

and

2014,

was

$7.29,

$17.95

and

$8.23,

respectively. Options with an intrinsic value of

$1.63,

$2.86

and

$2.90,

became vested during

2016,

2015

and

2014,

respectively. The total intrinsic value of options exercisable and total options outstanding at

December

31,

2016

was

$15,398,000

and

$15,588,000,

respectively. The total fair value of options vested during the years ended

December

31,

2016,

2015

and

2014

was

$5,728,000,

$5,463,000

and

$6,999,000,

respectively.

As of

December

31,

2016,

there was approximately

$3.8

million of unrecognized compensation cost, related to stock options granted under the Plan which will be amortized to stock compensation expense over the next

2.19

years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Note 7 - Net Loss Per Share

12 Months Ended

Dec. 31, 2016

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 years ended

December

31,

2016,

2015

and

2014

(in thousands, except share and per share data):

	Year Ended December 31,
	2016			2015			2014
Net loss	$	(52,761	)	$	(37,483	)	$	(21,724	)
Weighted-average number of common shares—basic and diluted		32,403,391			30,801,994			24,162,700
Net loss per share—basic and diluted	$	(1.63	)	$	(1.22	)	$	(0.90	)

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.

	Year Ended December 31,
	2016		2015		2014
Stock options		5,188,658		4,786,577		4,884,165
Warrants to purchase common stock		-		-		493,000
Total		5,188,658		4,786,577		5,377,165

Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Income Taxes

The Company recorded

provision for income taxes for the years ended

December

31,

2016,

2015

and

2014

due to the reported net losses in each year.

A reconciliation of the Company’s Canadian federal statutory income tax rate to the Company’s effective income tax rate is as follows for the years ended

December

31,

2016,

2015

and

2014:

	2016			2015			2014
Income tax benefit computed at federal tax rate		26.0	%		26.0	%		26	%
Change in valuation allowance		( 22.1	%)		(27.2	)%		(18	)%
Stock compensation and other		(3.9	%)		1.20	%		(8	)%
Total		—	%		—	%		—	%

During the years ended

December

31,

2016,

2015

and

2014,

the Company had

interest and penalties related to income taxes.

As of

December

31,

2016,

and

2015,

the Company has unused net operating losses of approximately

$133.0

million.(approximately

$108.9

million in Canada,

$18.6

million in the U.S.,

$4.8

million in Germany and

$0.6

million in Switzerland and Japan) and

$87.1

million.(approximately

$70.8

million in Canada,

$11.7

million in the U.S.,

$4.0

million in Germany and

$0.6

million in Switzerland and Japan) respectively available to reduce taxable income of future years. The tax benefit of net operating losses begin to expire in

2025

in Canada,

2028

in U.S.,

2034

in Germany

2018

in Switzerland, and

2022

in Japan.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company has established a valuation allowance due to uncertainties regarding the realization of deferred tax assets based upon the Company’s lack of earnings history. Significant components of the Company’s deferred tax assets and liabilities as of

December

31,

2016,

2015

and

2014

as follows (in thousands):

	2016			2015			2014
Deferred tax assets:
Noncapital losses	$	35,064		$	23,038		$	16,901
Qualifying research and development credits		2,408			1,591			1,311
Stock based compensation		2,737			3,982			312
Share issue costs		27			30			4
Accrued liabilities		286			356			160
Deferred Rent		8			6			—
Depreciation		—			—			—

Total deferred tax assets		40,530			29,003			18,688
Deferred tax liabilities:
Stock Option Exercised		—
Depreciation		31			13			40
Accrued liabilities		—			—			—
Share issuance costs		16			23			—
Total deferred tax liabilities		47			36			40
Net deferred tax asset		40,483			28,967			18,648
Valuation allowance for deferred tax assets		(40,483	)		(28,967	)		(18,648	)
Net deferred tax asset including valuation allowance	$	—		$	—		$	—

Due to additional current year loses, the valuation allowance increased by approximately

$11.5

and

$10.3

million during the year ended

December

31,

2016

and

2015

respectively.

The Company applies the accounting guidance in ASC

740

related to accounting for uncertainty in income taxes. The Company’s reserves related to taxes are based on a determination of whether, and how much of, a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. As of

December

31,

2016

and

2015,

the Company had

unrecognized tax benefits.

The Company files federal income tax returns in Canada, US, Switzerland, Germany, and Japan. The Company also files income tax returns in the state of Texas in the US. The statute of limitations for assessment by local taxing authorities is open for tax years ended after

December

2011.

There are currently no federal or state income tax audits in progress.

The components of income before income taxes are as follows:

(In thousands)	Years Ended December 31,
	2016			2015			2014
Domestic	$	(8,749	)	$	(6,544	)	$	(3,494	)
Canada		(41,625	)		(28,129	)		(17,189	)
Other Foreign		(2,387	)		(2,810	)		(1,041	)
Total	$	(52,761	)	$	(37,483	)	$	(21,724	)

November

2015,

the FASB issued ASU

2015

17,

Balance Sheet Classification of Deferred Taxes. We adopted these accounting changes on a prospective basis during the

three

months ended

December

31,

2016.

December

15,

2016,

and interim periods within those annual periods. The adoption of this standard did not have a material effect on the Company’s financial statements or disclosures.

Note 9 - Related-party Transactions	12 Months Ended
Note 9 - Related-party Transactions	Dec. 31, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	9. Related-Party Transactions Legal fees of approximately $37,000 were incurred to a law firm for legal services rendered in which a former director of the Company is a senior partner in 2014. There are no related-party transactions in 2015 and 2016.

Note 10 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments Disclosure [Text Block]

10.

Commitments and Contingencies

January

12,

2008,

the Company entered a lease agreement to lease its facility in Austin, Texas, U.S. On

September

15,

2010,

the Company entered into a

second

lease agreement to lease additional space in Austin, TX, U.S. Both leases expired in

2013.

March

20,

2013,

the company extended the lease for another

months with the same terms and rental rates as the current leases. On

February

28,

2015,

the Company extended the leases for another

four

years with

two

years early termination right. The future minimum lease payments are as follows as of

December

31,

2016

(in thousands):


2017	$	460
2018	$	470
2019	$	79

Rent expense was approximately

$761,000,

$688,000

and

$535,000

for the years ended

December

31,

2016,

2015

and

2014,

respectively.

XBiotech Corporate officers, Queena Han (VP of Finance) and John Simard (President and CEO), XBiotech Inc., and certain directors were named defendants in securities class action civil suits filed in federal court at the U.S. District Court for the Western District of Texas, in Austin, Texas and state court at the Los Angeles County Superior Court, in California. In the California action, the underwriter WR Hambrecht & Co., LLC is also named as a defendant. These civil suits were filed on

December

2015.

The foundation for both suits are similar in that the plaintiffs allege the officers of the Company made false and misleading statements, violating the securities laws, in the IPO documents in

April

2015.

Specifically, these alleged false statements in the IPO documents are in relation to the European Phase III clinical trial for Xilonix™. The allegations focus on a press release posted by XBiotech on

November

23,

2015,

explaining certain issues with patient data. Plaintiffs allege the company knew of these issues during the IPO and neglected to disclose them in supporting documentation filed with the Security and Exchange Commission (SEC). As a result of the news release, XBiotech (traded on the NASDAQ) stock tumbled. The resulting securities class action lawsuits are seeking relief for plaintiffs who report financial losses due to the alleged false and misleading statements. In

September

2016,

a stay was granted in the California case. Plaintiffs were, at that time, left with the opportunity to re-file in Texas prior to the decision on the motion to dismiss. Plaintiffs did not re-file in Texas before the case was dismissed with prejudice in

October

2016.

Plaintiffs are seeking to re-open the case in California. A

tentative

hearing date of

April

14,

2017

has been set.

Note 11 - Subsequent Events	12 Months Ended
Note 11 - Subsequent Events	Dec. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	11. Subsequent Events During February 2017, the Company sold 87,326 shares of common stock at an average price of $12.23 per share. Net cash proceeds from these transactions totaled approximately $1 million after deducting commissions and fees. Sales of shares under the Sales Agreement are made pursuant to the registration statement on Form S- 3, which was declared effective by the U.S. SEC on September 1, 2016, and a related Prospectus Supplement filed with the SEC on September 26, 2016. On March 3, 2017, the Company entered into subscription agreements with accredited investors providing for the issuance and sale by the Company of approximately 2,433,795 common shares in a registered direct offering at $13 per share. The Company received gross proceeds of approximately $31,639,335. Sales of shares under the Subscription Agreements are made pursuant to the registration statement on Form S- 3, which was declared effective by the U.S. Securities and Exchange Commission on September 1, 2016, and related Prospectus Supplement filed with the SEC on March 3, 2017.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

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 (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

Prior to its initial public offering on

April

15,

2015,

third

Research and Development Expense, Policy [Policy Text Block]

Research and Development Costs

Income Tax, Policy [Policy Text Block]

Income Taxes

may

recognize a benefit from income taxes in its statement of operations in that period.

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

(“ASC

718”).

ASC

718

Share-based compensation expense recognized for the years ended

December

31,

2016,

2015

and

2014

was included in the following line items on the Consolidated Statements of Operations (in thousands).

	Year Ended December 31,
	2016		2015		2014

Research and development	$	2,095	$	2,204	$	1,303
General and administrative		3,478		2,203		5,717

Total share-based compensation expense	$	5,573	$	4,407	$	7,020

No related tax benefits were recognized for the years ended

December

31,

2016,

2015

and

2014.

The fair value of each option is estimated on the date of grant using the Black-Scholes method with the following assumptions:

	Year Ended December 31,
	2016			2015			2014

Weighted-average grant date fair value per share		$7.29			$17.95			$8.23
Expected volatility	65%	-	70%	66%	-	71%	70%	-	73%
Risk-free interest rate	1.09%	-	2.44%	1.07%	-	2.42%	0.69%	-	2.73%
Expected life (in years)	5	-	10	3	-	10	3	-	10
Dividend yield		—			—			—

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers highly liquid investments with a maturity of

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

Concentrations of Credit Risk

one

financial institution. These amounts at times

may

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The Company follows ASC Topic

820,

Fair Value Measurements and Disclosures

three

levels:

•

Level

1—Unadjusted

quoted prices in active markets for identical assets or liabilities.

•

Level

2—Quoted

•

Level

3—Unobservable

December

31,

2016

and

2015,

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

December

31,

2016

and

2015,

due to their short-term nature.

Building Construction in Progress Policy [Policy Text Block]

Building Construction in Progress

January

2017.

The manufacturing facility is still in the process of validation. The Company will commence depreciation over its estimated useful life once it is placed into service.

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

. Potential impairment is assessed when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset

may

December

31,

2016.

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

one

operating segment. Substantially all of the Company’s operations are in the U.S. geographic segment.

Earnings Per Share, Policy [Policy Text Block]

Net Loss per Share

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

-K.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

August

2014,

the FASB issued ASU

2014

, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

December

15,

2016

and interim periods within annual periods beginning after

December

15,

2016.

The adoption of this standard did not have a material effect on the Company’s financial statements or disclosures.

February

2016

2019,

and interim periods within that year. For other calendar-year entities, it is effective in

2020,

and interim periods in

2021.

Early adoption is permitted for all entities. The adoption of this standard will require the Company to record its operating leases on the balance sheet.

November

2015,

the FASB issued ASU

2015

17,

Balance Sheet Classification of Deferred Taxes. We adopted these accounting changes on a prospective basis during the

three

months ended

December

31,

2016.

December

15,

2016,

and interim periods within those annual periods. The adoption of this standard did not have a material effect on the Company’s financial statements or disclosures.

Note 2 - Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

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

	Year Ended December 31,
	2016		2015		2014

Research and development	$	2,095	$	2,204	$	1,303
General and administrative		3,478		2,203		5,717

Total share-based compensation expense	$	5,573	$	4,407	$	7,020

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year Ended December 31,
	2016			2015			2014

Weighted-average grant date fair value per share		$7.29			$17.95			$8.23
Expected volatility	65%	-	70%	66%	-	71%	70%	-	73%
Risk-free interest rate	1.09%	-	2.44%	1.07%	-	2.42%	0.69%	-	2.73%
Expected life (in years)	5	-	10	3	-	10	3	-	10
Dividend yield		—			—			—

Note 3 - Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Property, Plant and Equipment [Table Text Block]

	2016			2015
Computer and office equipment	$	456		$	335
Furniture and fixtures		132			132
Land		1,418			1,418
Leasehold improvements		794			770
Scientific equipment		6,116			5,595
Vehicle		30			30
Construction in process		6,645			2,417
Accumulated depreciation		(5,449	)		(4,751	)
	$	10,142		$	5,946

Building Construction in Progress [Table Text Block]

Building construction in progress

19,978

10,371

Note 4 - Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Schedule of Accrued Liabilities [Table Text Block]

	2016		2015
Accrued compensation and related	$	413	$	319
Accrued professional fees		95		119
Accrued new building construction fees		521		421
Accrued clinical trial		2,402		278
Other		101		329
	$	3,532	$	1,466

Note 6 - Common Stock Options (Tables)

12 Months Ended

Dec. 31, 2016

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, 2013		3,393,499			$0.60–$15.00	$	6.02
Granted		1,563,666			1.00–15.00		11.23
Exercised		(15,000	)		10.00		10.00
Forfeitures		(58,000	)		2.50–15.00		10.63
Options outstanding at December 31, 2014		4,884,165			$0.55-$15.00	$	7.03
Granted		375,928			8.47-21.99		17.95
Exercised		(359,141	)		0.53-10.00		3.75
Forfeitures		(114,375	)		0.55-20.93		11.05
Options outstanding at December 31, 2015		4,786,577			$0.53-$21.99	$	8.56
Granted		1,059,990			7.71-19.10		11.72
Exercised		(204,159	)		0.74-19.09		5.56
Forfeitures		(453,750	)		0.52-16.91		12.79
Options outstanding at December 31, 2016		5,188,658			$0.52- $21.99	$	8.49

Note 7 - Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

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

	Year Ended December 31,
	2016			2015			2014
Net loss	$	(52,761	)	$	(37,483	)	$	(21,724	)
Weighted-average number of common shares—basic and diluted		32,403,391			30,801,994			24,162,700
Net loss per share—basic and diluted	$	(1.63	)	$	(1.22	)	$	(0.90	)

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

	Year Ended December 31,
	2016		2015		2014
Stock options		5,188,658		4,786,577		4,884,165
Warrants to purchase common stock		-		-		493,000
Total		5,188,658		4,786,577		5,377,165

Note 8 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2016			2015			2014
Income tax benefit computed at federal tax rate		26.0	%		26.0	%		26	%
Change in valuation allowance		( 22.1	%)		(27.2	)%		(18	)%
Stock compensation and other		(3.9	%)		1.20	%		(8	)%
Total		—	%		—	%		—	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2016			2015			2014
Deferred tax assets:
Noncapital losses	$	35,064		$	23,038		$	16,901
Qualifying research and development credits		2,408			1,591			1,311
Stock based compensation		2,737			3,982			312
Share issue costs		27			30			4
Accrued liabilities		286			356			160
Deferred Rent		8			6			—
Depreciation		—			—			—

Total deferred tax assets		40,530			29,003			18,688
Deferred tax liabilities:
Stock Option Exercised		—
Depreciation		31			13			40
Accrued liabilities		—			—			—
Share issuance costs		16			23			—
Total deferred tax liabilities		47			36			40
Net deferred tax asset		40,483			28,967			18,648
Valuation allowance for deferred tax assets		(40,483	)		(28,967	)		(18,648	)
Net deferred tax asset including valuation allowance	$	—		$	—		$	—

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

(In thousands)	Years Ended December 31,
	2016			2015			2014
Domestic	$	(8,749	)	$	(6,544	)	$	(3,494	)
Canada		(41,625	)		(28,129	)		(17,189	)
Other Foreign		(2,387	)		(2,810	)		(1,041	)
Total	$	(52,761	)	$	(37,483	)	$	(21,724	)

Note 10 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Notes Tables

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]


2017	$	460
2018	$	470
2019	$	79

Note 1 - Organization (Details Textual) - USD ($)		1 Months Ended		2 Months Ended	5 Months Ended
Note 1 - Organization (Details Textual) - USD ($)	Mar. 03, 2017	Feb. 28, 2017	Dec. 31, 2014	Dec. 31, 2016	Nov. 18, 2014	Dec. 31, 2015	Dec. 31, 2013
Cash and Cash Equivalents, at Carrying Value			$ 57,329,000	$ 34,324,000		$ 91,051,000	$ 7,244,000
Proceeds from Issuance of Common Stock			$ 44,800,000	$ 1,800,000	$ 9,000,000
Subsequent Event [Member]
Proceeds from Issuance of Common Stock	$ 31,639,335	$ 1

Note 2 - Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 0	$ 0	$ 0
Assets, Fair Value Disclosure, Recurring	0	0
Liabilities, Fair Value Disclosure, Recurring	0	$ 0
Impairment of Long-Lived Assets Held-for-use	$ 0
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

Note 2 - Significant Accounting Policies - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based compensation expense	$ 5,573	$ 4,407	$ 7,020
Research and Development Expense [Member]
Share-based compensation expense	2,095	2,204	1,303
General and Administrative Expense [Member]
Share-based compensation expense	$ 3,478	$ 2,203	$ 5,717

Note 2 - Significant Accounting Policies - Stock Option Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Weighted-average grant date fair value per share (in dollars per share)	$ 7.29	$ 17.95	$ 8.23
Dividend yield
Minimum [Member]
Expected volatility	65.00%	66.00%	70.00%
Risk-free interest rate	1.09%	1.07%	0.69%
Expected life (in years) (Year)	5 years	3 years	3 years
Maximum [Member]
Expected volatility	70.00%	71.00%	73.00%
Risk-free interest rate	2.44%	2.42%	2.73%
Expected life (in years) (Year)	10 years	10 years	10 years

Note 3 - Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Depreciation	$ 698,000	$ 699,000	$ 664,000

Note 3 - Property and Equipment - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accumulated depreciation	$ (5,449)	$ (4,751)
	10,142	5,946
Office Equipment [Member]
Property, plant, and equipment, gross	456	335
Furniture and Fixtures [Member]
Property, plant, and equipment, gross	132	132
Land [Member]
Property, plant, and equipment, gross	1,418	1,418
Leasehold Improvements [Member]
Property, plant, and equipment, gross	794	770
Scientific Equipment [Member]
Property, plant, and equipment, gross	6,116	5,595
Vehicles [Member]
Property, plant, and equipment, gross	30	30
Construction in Progress [Member]
Property, plant, and equipment, gross	$ 6,645	$ 2,417

Note 3 - Property and Equipment - Building Construction in Progress (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Building construction in progress	$ 19,978	$ 10,371
Building Construction in Process [Member]
Building construction in progress	$ 19,978	$ 10,371

Note 4 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrued compensation and related	$ 413	$ 319
Accrued professional fees	95	119
Accrued new building construction fees	521	421
Accrued clinical trial	2,402	278
Other	101	329
	$ 3,532	$ 1,466

Note 5 - Common Stock (Details Textual) - USD ($)		1 Months Ended					2 Months Ended	3 Months Ended			5 Months Ended	12 Months Ended
Note 5 - Common Stock (Details Textual) - USD ($)	Apr. 17, 2015	Jul. 31, 2015	Jan. 31, 2015	Dec. 31, 2014	Dec. 31, 2014	Feb. 28, 2014	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Nov. 18, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class of Warrant or Right, Exercised During Period						1,200,000				164,999
Proceeds from Warrant Exercises						$ 12,000,000			$ 3,100,000	$ 2,500,000
Stock Issued During Period, Shares, New Issues				3,000,000			145		208,333		601,000
Share Price				$ 15	$ 15						$ 15			$ 15
Proceeds from Issuance of Common Stock				$ 44,800,000			$ 1,800,000				$ 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			$ 15
Class of Warrant or Right, Outstanding				493,000	493,000									493,000
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable				$ 410,000	$ 410,000									$ 410,000
Payments of Stock Issuance Costs				1,900,000										$ 324,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		12,000	15,000		15,000			226,141	106,000			204,159	359,141	15,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price		$ 2.50	$ 0.55		$ 10									$ 10
Proceeds from Stock Options Exercised		$ 30,000	$ 8,000		$ 150,000			$ 639,253	$ 700,000			$ 1,100,000
Proceeds from Issuance Initial Public Offering	$ 70,600,000
Common Stock, No Par Value							$ 0	$ 0				$ 0	$ 0
Minimum [Member]
Share Price							13.60					13.60
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price								0.53				0.74	0.53
Maximum [Member]
Share Price							$ 14.17					14.17
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price								$ 10				$ 19.09	$ 10
IPO [Member]
Stock Issued During Period, Shares, New Issues	4,000,000
Share Price	$ 19
Noncash Consideration of Stock Issuance Costs [Member]
Other Significant Noncash Transaction, Value of Consideration Given				$ 400,000

Note 6 - Common Stock Options (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 7.29	$ 17.95	$ 8.23
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			1,563,666
The Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	7.29		8.23
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		17.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Intrinsic Value, Amount Per Share	$ 1.63	$ 2.86	$ 2.90
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 15,398,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	15,588,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	5,728,000	$ 5,463,000	$ 6,999,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 3,800,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 69 days
The Plan [Member] \| Any One Person [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum	5.00%
The Plan [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years

Note 6 - Common Stock Options - Changes in Common Stock Options Issued (Details) - $ / shares	1 Months Ended			3 Months Ended		12 Months Ended
	Jul. 31, 2015	Jan. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Options outstanding (in shares)		4,884,165				4,786,577	4,884,165	3,393,499
Options outstanding (in dollars per share)								$ 3,393,499
Granted (in shares)						1,059,990	375,928	1,563,666
Granted (in dollars per share)								$ 1,563,666
Exercised (in shares)	(12,000)	(15,000)	(15,000)	(226,141)	(106,000)	(204,159)	(359,141)	(15,000)
Exercised (in dollars per share)	$ 2.50	$ 0.55	$ 10					$ 10
Forfeitures (in shares)						(453,750)	(114,375)	(58,000)
Options outstanding (in shares)			4,884,165	4,786,577		5,188,658	4,786,577	4,884,165
Minimum [Member]
Options outstanding (in dollars per share)		0.55				$ 0.53	$ 0.55	$ 0.60
Granted (in dollars per share)						7.71	8.47	1
Exercised (in dollars per share)				$ 0.53		0.74	0.53
Forfeitures (in dollars per share)						0.52	0.55	2.50
Options outstanding (in dollars per share)			$ 0.55	0.53		0.52	0.53	0.55
Maximum [Member]
Options outstanding (in dollars per share)		15				21.99	15	15
Granted (in dollars per share)						19.10	21.99	15
Exercised (in dollars per share)				10		19.09	10
Forfeitures (in dollars per share)						16.91	20.93	15
Options outstanding (in dollars per share)			15	21.99		21.99	21.99	15
Weighted Average [Member]
Options outstanding (in dollars per share)		$ 7.03				8.56	7.03	6.02
Granted (in dollars per share)						11.72	17.95	11.23
Exercised (in dollars per share)						5.56	3.75	10
Forfeitures (in dollars per share)						12.79	11.05	10.63
Options outstanding (in dollars per share)			$ 7.03	$ 8.56		$ 8.49	$ 8.56	$ 7.03

Note 7 - Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net loss	$ (50,722)	$ (37,483)	$ (21,724)
Weighted-average number of common shares—basic and diluted (in shares)	32,403,391	30,801,994	24,162,700
Net loss per share—basic and diluted (in dollars per share)	$ (1.63)	$ (1.22)	$ (0.90)

Note 7 - Net Loss Per Share - Potentially Dilutive Securities Outstanding (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive securities (in shares)	5,188,658	4,786,577	5,377,165
Employee Stock Option [Member]
Antidilutive securities (in shares)	5,188,658	4,786,577	4,884,165
Warrant [Member]
Antidilutive securities (in shares)			493,000

Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 11,500	$ 10,300
Income Tax Expense (Benefit)	0	0	$ 0
Income Tax Examination, Penalties and Interest Expense	0	0	$ 0
Unrecognized Tax Benefits	0	0
Domestic Tax Authority [Member]
Operating Loss Carryforwards	133,000	87,100
Domestic Tax Authority [Member] \| Canada Revenue Agency [Member]
Operating Loss Carryforwards	108,900	70,800
Foreign Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards	18,600	11,700
Foreign Tax Authority [Member] \| Federal Ministry of Finance, Germany [Member]
Operating Loss Carryforwards	4,800	4,000
Foreign Tax Authority [Member] \| Swiss Federal Tax Administration (FTA) [Member]
Operating Loss Carryforwards	600	600
Foreign Tax Authority [Member] \| National Tax Agency, Japan [Member]
Operating Loss Carryforwards	$ 600	$ 600

Note 8 - Income Taxes - Reconciliation of Canadian Federal Statutory Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income tax benefit computed at federal tax rate	26.00%	26.00%	26.00%
Change in valuation allowance	(22.10%)	(27.20%)	(18.00%)
Stock compensation and other	(3.90%)	1.20%	(8.00%)
Total

Note 8 - Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Noncapital losses	$ 35,064	$ 23,038	$ 16,901
Qualifying research and development credits	2,408	1,591	1,311
Stock based compensation	2,737	3,982	312
Share issue costs	27	30	4
Accrued liabilities	286	356	160
Deferred Rent	8	6
Depreciation
Total deferred tax assets	40,530	29,003	18,688
Deferred tax liabilities:
Stock Option Exercised
Depreciation	31	13	40
Accrued liabilities
Share issuance costs	16	23
Total deferred tax liabilities	47	36	40
Net deferred tax asset	40,483	28,967	18,648
Valuation allowance for deferred tax assets	(40,483)	(28,967)	(18,648)
Net deferred tax asset including valuation allowance

Note 8 - Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Domestic	$ (8,749)	$ (6,544)	$ (3,494)
Total	(52,761)	(37,483)	(21,724)
CANADA
Canada	(41,625)	(28,129)	(17,189)
Other Foreign [Member]
Canada	$ (2,387)	$ (2,810)	$ (1,041)

Note 9 - Related-party Transactions (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction, Amounts of Transaction	$ 0	$ 0
Former Director [Member]
Legal Fees			$ 37,000

Note 10 - Commitments and Contingencies (Details Textual) - USD ($)			12 Months Ended
	Feb. 28, 2015	Mar. 20, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Lessee Leasing Arrangements, Operating Leases, Renewal Term	4 years	1 year 270 days
Lessee Leasing Arrangements, Operating Leases, Early Termination Right	2 years
Operating Leases, Rent Expense, Net			$ 761,000	$ 688,000	$ 535,000

Note 10 - Commitments and Contingencies - Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 460
2018	470
2019	$ 79

Note 11 - Subsequent Events (Details Textual) - USD ($)		1 Months Ended		2 Months Ended	3 Months Ended	5 Months Ended
Note 11 - Subsequent Events (Details Textual) - USD ($)	Mar. 03, 2017	Feb. 28, 2017	Dec. 31, 2014	Dec. 31, 2016	Jun. 30, 2015	Nov. 18, 2014
Stock Issued During Period, Shares, New Issues			3,000,000	145	208,333	601,000
Proceeds from Issuance of Common Stock			$ 44,800,000	$ 1,800,000		$ 9,000,000
Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues	2,433,795	87,326
Shares Issued, Price Per Share	$ 13	$ 12.23
Proceeds from Issuance of Common Stock	$ 31,639,335	$ 1