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Note 7 - Share-based Compensation | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
| 7. | Share based compensation
General On February 24, 2017, in connection with the IPO, the Company’s board of directors and shareholders approved an equity compensation plan, the 2017 Omnibus Incentive Plan (the “2017 Plan”), which became effective on March 9, 2017, to provide an additional incentive to selected officers, employees, non-employee directors, independent contractors and consultants of the Company (the “Participants”) under certain conditions. Under the 2017 Omnibus Incentive Plan, the maximum number of the Company’s ordinary shares reserved for issuance is 2,137,037 shares. During 2017, the Company granted a total of 1,141,477 restricted shares to employee and non-employee under the 2017 Plan, among which 318,700 restricted shares was forfeited during 2017. The restricted shares were subject to various service condition schedule and certain performance conditions with respect to the research and development progress. During 2017, the Company granted up to 600,000 common shares to the Chief Medical Officer of the Company under the 2017 Plan. The common shares were subject to certain performance conditions with respective to the research and development progress, and none of the common shares were vested as of December 31, 2017. Restricted shares The following table summarizes the Company’s employee restricted share activities under the 2017 Plan:
|  | Numbers of shares |  |  | Weighted average grant date fair value |
|  |  |  |  |  |  | $ |
Outstanding at December 31, 2016 |  |  | - |  |  |  | - |
Granted |  |  | 1,141,477 |  |  |  | 20.76 |
Vested |  |  | (434,615 | ) |  |  | 22.19 |
Forfeited |  |  | (318,700 | ) |  |  | 19.80 |
Outstanding at December 31, 2017 |  |  | 388,162 |  |  |  | 19.93 |
Expected to vest at December 31, 2017 |  |  | 358,162 |  |  |  | 19.93 |
As of December 31, 2017, the unrecognized compensation cost related to unvested restricted shares expected to vest was $3,906. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 4.0 years. Share options The following table summarizes the Company’s share option activities under the 2017 Plan:
|  |  |  |  |  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  | Weighted |  |  |  |  |  | average |  |  |  |
|  |  |  |  | average |  |  | Weighted |  |  | remaining |  |  | Average |
|  | Numbers |  |  | exercise |  |  | average grant |  |  | contractual |  |  | intrinsic |
|  | of options |  |  | price |  |  | date fair value |  |  | term |  |  | value |
|  |  |  |  |  |  | $ |  |  |  | $ |  |  |  | Years |  |  |  | $ |
Outstanding at December 31, 2016 |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |  |  |  |  |
Granted |  |  | 343,000 |  |  |  | 29.00 |  |  |  | 19.91 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2017 |  |  | 343,000 |  |  |  | 29.00 |  |  |  |  |  |  |  | 9.98 |  |  |  | 27 |
Exercisable as of December 31, 2017 |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |  |  |  |  |
Vested and expected to vest at December 31, 2017 |  |  | 343,000 |  |  |  | 29.00 |  |  |  |  |  |  |  | 9.98 |  |  |  | 27 |
As of December 31, 2017, the unrecognized compensation cost related to 343,000 unvested share options expected to vest was $1,281. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 2.7 months. Fair value of options The Black-Scholes-Merton formula was applied in determining the estimated fair value of the options granted. The model requires the input of highly subjective assumptions including the estimated expected share price volatility and the expected terms of awards. These estimates involve inherent risk and uncertainties and the application of management's judgment. The Company historically has limited available historical data to demonstrate consistent early exercise behavior. To determine the expected term of the awards, the Company applied a simplified method considering factors including the timing of achieving various performance conditions and their respective probabilities as well as the contractual life of the options. The risk-free interest rates for the periods within the expected term of the option are based on the U.S. Treasury rate. The Company historically has been a private company and lack company-specific historical and implied volatility information share option. Therefore, the Company estimates the expected volatility based on the historical volatility of a group of similar companies, which are publicly-traded. The Company’s management was ultimately responsible for the determination of the estimated fair value of its share options. The following table presents the assumptions used to estimate the fair values of the share options granted for the year ended December 31, 2017:
|  | Year Ended December 31, |
|  | 2017 |
Fair value of ordinary share |  |  | 34.00 |
Risk-free interest rate |  |  | 2.28 | %
Expected term (years) |  |  | 5.5 |
Expected volatility |  |  | 60 | %
Expected dividend yield |  |  | 0 | %
Contractual life (years) |  |  | 10 |
The following table summarizes total share-based compensation expense recognized for the year ended December 31, 2017:
|  | Year Ended |
|  | December 31, |
|  | 2017 |
Research and development |  |  | 17,753 |
General and administrative |  |  | 4,930 |
Total |  |  | 22,683 |

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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