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Share-based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2017
Schedule of Assumptions Used to Estimate Fair Values of Share Options Granted | The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented:
|  | March 2015 |  |  | October 2015 |  |  | March 2016 |  |  | August 2016 |  |  | December 2016 |  |  | May 2017 |  |  | September 2017 |
Risk-free rate of return |  |  | 3.1 | % |  |  | 3.1 | % |  |  | 2.8 | % |  |  | 2.5 | % |  |  | 3.4 | % |  |  | 3.2 | % |  |  | 3.5 | %
Contractual life of option |  | 10 years |  |  | 10 years |  |  | 10 years |  |  | 10 years |  |  | 10 years |  |  | 10 years |  |  | 10 years |
Estimated volatility rate |  |  | 70 | % |  |  | 70 | % |  |  | 70 | % |  |  | 70 | % |  |  | 70 | % |  |  | 70 | % |  |  | 70 | %
Expected dividend yield |  |  | 0 | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
Fair value of underlying ordinary shares |  |  | 1.62 |  |  |  | 1.92 |  |  |  | 7.14 |  |  |  | 8.04 |  |  |  | 8.04 |  |  |  | 9.60 |  |  |  | 27.93 |
Summary of Option Activity | A summary of option activity under the Plan during the years ended December 31, 2015, 2016 and 2017 is presented below:
|  | Number of options |  |  | Weighted average exercise price |  |  | Weighted average remaining contractual term |  |  | Aggregate intrinsic value |
|  |  |  |  |  | $ |  |  | Years |  |  | $ |
Outstanding at January 1, 2015 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Granted |  |  | 4,309,232 |  |  |  | 0.60 |  |  |  | — |  |  |  | — |
Outstanding at December 31, 2015 |  |  | 4,309,232 |  |  |  | 0.60 |  |  |  | 9.68 |  |  |  | 18,874,438 |
Granted |  |  | 2,918,993 |  |  |  | 1.53 |  |  |  | — |  |  |  | — |
Forfeited |  |  | (84 | ) |  |  | 1.74 |  |  |  | — |  |  |  | — |
Outstanding at December 31, 2016 |  |  | 7,228,141 |  |  |  | 0.97 |  |  |  | 9.00 |  |  |  | 53,677,170 |
Granted |  |  | 264,480 |  |  |  | 8.76 |  |  |  | — |  |  |  | — |
Exercised |  |  | (100,834 | ) |  |  | 0.65 |  |  |  | — |  |  |  | — |
Forfeited |  |  | (843,410 | ) |  |  | 1.11 |  |  |  | — |  |  |  | — |
Outstanding at December 31, 2017 |  |  | 6,548,377 |  |  |  | 1.28 |  |  |  | 8.06 |  |  |  | 130,668,851 |
Vested and Exercisable as of December 31, 2017 |  |  | 2,307,319 |  |  |  | 0.80 |  |  |  | 7.84 |  |  |  | 47,134,503 |
Vested or expected to vest as of December 31, 2017 |  |  | 6,548,377 |  |  |  | 1.28 |  |  |  | 8.06 |  |  |  | 130,668,851 |
Allocation of Compensation Expense Related to Option | The weighted-average grant-date fair value of the options granted in 2015, 2016 and 2017 were $1.62, $6.94 and $13.92 per share, respectively. The Group recorded compensation expense related to the options of $419,709, $3,524,733 and $4,751,933 for the year ended December 31, 2015, 2016 and 2017, respectively, which were classified in the accompanying consolidated statements of operations as follows:
|  | Year ended December 31, |
|  | 2015 |  |  | 2016 |  |  | 2017 |
|  | $ |  |  | $ |  |  | $ |
General and administrative |  |  | 124,871 |  |  |  | 1,472,993 |  |  |  | 2,215,282 |
Research and development |  |  | 294,838 |  |  |  | 2,051,740 |  |  |  | 2,536,651 |
Total |  |  | 419,709 |  |  |  | 3,524,733 |  |  |  | 4,751,933 |
Summary of Non-vested Restricted Share Activity | The following table summarized the Group’s non-vested restricted share activity in 2017:
|  | Numbers of non-vested restricted shares |  |  | Weighted average grant date fair value |
|  |  |  |  |  | $ |
Non-vested as of January 1, 2017 |  |  | 2,309,490 |  |  |  | 1.31 |
Granted |  |  | 50,000 |  |  |  | 27.93 |
Vested |  |  | (2,309,490 | ) |  |  | 1.03 |
Transferred from Red Kingdom |  |  | 643,333 |  |  |  | 0.60 |
Non-vested as of December 31, 2017 |  |  | 693,333 |  |  |  | 2.57 |
Allocation of Compensation Expense Related to Restricted Shares | As of December 31, 2017, there was $1,517,160 of total unrecognized compensation expense related to non-vested Restricted Shares. The Group recorded compensation expense related to the restricted shares of $2,281,695, $1,400,545 and $5,179,173 for the year ended December 31, 2015, 2016 and 2017, respectively, which were classified in the accompanying consolidated statements of operations as follows:
|  | Year ended December 31, |
|  | 2015 |  |  | 2016 |  |  | 2017 |
|  | $ |  |  | $ |  |  | $ |
General and administrative |  |  | 964,012 |  |  |  | 825,822 |  |  |  | 3,848,165 |
Research and development |  |  | 1,317,683 |  |  |  | 574,723 |  |  |  | 1,331,008 |
Total |  |  | 2,281,695 |  |  |  | 1,400,545 |  |  |  | 5,179,173 |
Red Kingdom |
Summary of Non-vested Restricted Share Activity | The following table summarized the non-vested restricted shares activities of Red Kingdom in 2017:
|  | Numbers of non-vested restricted shares |  |  | Weighted average grant date fair value |
|  |  |  |  |  | $ |
Non-vested as of January 1, 2017 |  |  | 2,784,999 |  |  |  | 0.60 |
Vested |  |  | (811,667 | ) |  |  | 0.60 |
Forfeited |  |  | (1,329,999 | ) |  |  | 0.60 |
Transferred to the Company |  |  | (643,333 | ) |  |  | 0.60 |
Non-vested as of December 31, 2017 |  |  | — |  |  |  |  |

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