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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2019	May 09, 2019
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 Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		36,113,175
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 12,019	$ 15,823
Prepaid expenses and other current assets	963	1,193
Total current assets	12,982	17,016
Property and equipment, net	26,842	27,329
Total assets	39,824	44,345
Current liabilities:
Accounts payable	1,861	1,653
Accrued expenses	980	1,291
Total current liabilities	2,841	2,944
Long-term liabilities:
Deferred rent		3
Total liabilities	2,841	2,947
Shareholders’ equity:
Preferred stock, no par value, unlimited shares authorized, no shares outstanding	0	0
Common stock, no par value, unlimited shares authorized, 36,090,125 and 35,899,772 shares outstanding at March 31, 2019 and December 31, 2018, respectively	280,664	279,353
Accumulated other comprehensive loss	(117)	(255)
Accumulated deficit	(243,564)	(237,700)
Total shareholders’ equity	36,983	41,398
Total liabilities and shareholders’ equity	$ 39,824	$ 44,345

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares authorized	Unlimited	Unlimited
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares outstanding (in shares)	36,090,125	38,899,772
Common stock, shares authorized	Unlimited	Unlimited

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating expenses:
Research and development	$ 4,527	$ 2,993
General and administrative	1,278	1,157
Total operating expenses	5,805	4,150
Loss from operations	(5,805)	(4,150)
Other income (loss):
Interest income	78	64
Other income	9
Foreign exchange gain (loss)	(146)	17
Total other income (loss)	(59)	81
Net loss	$ (5,864)	$ (4,069)
Net loss per share—basic and diluted (in dollars per share)	$ (0.16)	$ (0.11)
Shares used to compute basic and diluted net loss per share (in shares)	35,977,422	35,447,304

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net loss	$ (5,864)	$ (4,069)
Foreign currency translation adjustment	138	6
Comprehensive loss	$ (5,726)	$ (4,062)

- 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 Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2017	35,439
Balance at Dec. 31, 2017	$ 277,492	$ (768)	$ (216,562)	$ 60,162
Net loss			(4,069)	(4,069)
Foreign currency translation adjustment		6		6
Issuance of common stock under stock option plan (in shares)	81
Issuance of common stock under stock option plan	$ 201			201
Share-based compensation expense	$ 110			110
Balance (in shares) at Mar. 31, 2018	35,520
Balance at Mar. 31, 2018	$ 277,803	(762)	(220,631)	56,410
Balance (in shares) at Dec. 31, 2018	35,900
Balance at Dec. 31, 2018	$ 279,353	(255)	(237,700)	41,398
Net loss			(5,864)	(5,864)
Foreign currency translation adjustment		138		138
Issuance of common stock under stock option plan (in shares)	190
Issuance of common stock under stock option plan	$ 643			643
Stock subscription receivable	(102)			(102)
Collection of stock subscription receivable	200			200
Share-based compensation expense	$ 570			570
Balance (in shares) at Mar. 31, 2019	36,090
Balance at Mar. 31, 2019	$ 280,664	$ (117)	$ (243,564)	$ 36,983

- 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 ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net loss	$ (5,864)	$ (4,069)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	602	588
Share-based compensation expense	570	110
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	230	232
Accounts payable	99	(596)
Accrued expenses	(311)	212
Deferred rent	(3)	(3)
Net cash used in operating activities	(4,677)	(3,526)
Investing activities
Purchase of property and equipment	(6)	(34)
Net cash used in investing activities	(6)	(34)
Financing activities
Issuance of common stock under stock option plan	541	201
Collection of subscription receivable	200
Net cash provided by financing activities	741	201
Effect of foreign exchange rate on cash and cash equivalents	138	7
Net change in cash and cash equivalents	(3,804)	(3,352)
Cash and cash equivalents, beginning of period	15,823	31,768
Cash and cash equivalents, end of period	12,019	28,416
Supplemental Information:
Accrued purchases of property and equipment	109	25
Subscription receivable	$ 102

Note 1 - Organization

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

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 (“U.S.”) 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.

XBiotech Inc. is a pre-market biopharmaceutical company engaged in discovering and developing True Human™ monoclonal antibodies for treating a variety of diseases. True Human™ monoclonal antibodies are those which occur naturally in human beings—as opposed to being derived from animal immunization or otherwise engineered. The Company believes that naturally occurring monoclonal antibodies have the potential to be safer and more effective than their non-naturally occurring counterparts. XBiotech is focused on developing its True Human™ pipeline and manufacturing system. The Company’s pipeline consists of product candidates at various stages of development across an array of indications including oncology, dermatology, other inflammatory conditions, such as peripheral vascular disease, type

diabetes, and infectious diseases.

Note 2 - Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

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”). In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary to present fairly the Company’s financial position at

March 31, 2019

and

December 31, 2018,

the results of its operations and comprehensive loss for the

three

month periods ended

March 31, 2019

and

2018,

and the cash flows for the

three

month periods ended

March 31, 2019

and

2018.

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.

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

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. These nonrefundable advance payments are recorded within other prepaid expenses and other current assets in the consolidated balance sheets. The capitalized amounts are expensed as the related goods are delivered or the services are performed.

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 term of the option, 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. To determine the fair value of its common stock, the Company uses the closing price of the Company’s common stock as reported by NASDAQ. 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. The Company accounts for forfeitures as they occur rather than on an estimated basis.

Share-based compensation expense recognized for the

three

months ended

March 31, 2019

and

2018

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

	Three Months Ended March 31,
	2019		2018
Research and development	$	295	$	88
General and administrative		275		22
Total share-based compensation expense	$	570	$	110

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

	Three Months Ended March 31,
	2019			2018
Dividend yield		-			-
Expected volatility	80%	-	82%	67%	-	80%
Risk-free interest rate	2.46%	-	2.64%	2.38%	-	2.71%
Expected life (in years)	5.75	-	10	6.0	-	10
Weighted-average grant date fair value per share		$3.92			$3.02

Cash and Cash Equivalents

The Company considers highly liquid investments with a maturity of

three

months or less when purchased to be cash equivalents. Cash and cash equivalents consisted primarily of cash on deposit in U.S., German, Swiss, Japanese 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

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 date (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.

March 31, 2019

and

December 31, 2018,

the Company did

not

have any assets or liabilities that are measured 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

March 31, 2019

and

December 31, 2018,

due to their short-term nature.

Property and Equipment

Property and equipment, which consists of land, construction in process, furniture and fixtures, computers and office equipment, scientific equipment, leasehold improvements, vehicles and building are stated at cost and depreciated over the estimated useful lives of the assets, with the exception of land and construction in process which are

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

• Building	39 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.

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

March 31, 2019.

Income Taxes

Income taxes are recorded in accordance with ASC

740,

Accounting for Income Taxes (“ASC

740”

), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. The Company determines its deferred tax assets and liabilities based on differences between financial reporting and tax bases of assets and liabilities, which are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than

not

that some or all of the deferred tax assets will

not

be realized.

ASC

740

clarifies the accounting for uncertainty in income taxes recognized in the financial statements and provides that a tax benefit from an uncertain tax position

may

be recognized when it is more likely than

not

that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods and disclosure. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense.

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

-Q.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements

February 2016,

the FASB established Topic

842,

Leases, by issuing Accounting Standards Update (ASU)

No.

2016

02,

which supersedes ASC

840,

Leases, and requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic

842

was subsequently amended by ASU

No.

2018

01,

Land Easement Practical Expedient for Transition to Topic

842;

ASU

No.

2018

10,

Codification Improvements to Topic

842,

Leases; and ASU

No.

2018

11,

Targeted Improvements. Topic

842,

as amended (the "new lease standard") establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than

months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The effective date of the new guidance is for the Company’s

first

quarter of fiscal year

2019.

The FASB has approved an optional, alternative method to adopt the lease standard by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the new standard effective

January 1, 2019,

using the alternative method. The Company does

not

have a cumulative adjustment impacting retained earnings. Adoption of the lease standard does

not

have a material impact on the Company’s consolidated financial statements.

Note 3 - Property and Equipment

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

Property and equipment consisted of the following as of

December

31,

2019

and

2018

(in thousands):

	March 31, 2019		December 31, 2018
Manufacturing equipment	$	4,567	$	4,937
Winnebago building		19,810		19,945
Other fixed assets		2,465		2,447
Total property and equipment	$	26,842	$	27,329

Note 4 - Common Stock

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Common Stock

Pursuant to its Articles, the Company has an unlimited number of shares available for issuance with

par value.

From

January

through

December 2018,

161

thousand shares of common stock were issued upon the exercise of stock options at a price of

$2.50

per share for a total of

$401

thousand, of which

$200

thousand is subscription receivable.

From

January

through

March 2019,

190

thousand shares of common stock were issued upon the exercise of stock options at a price of

$2.5

$10.00

per share for a total of

$643

thousand.

Note 5 - Common Stock Options

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Common Stock Options

November

11,

2005

and

April 1, 2015,

the board of directors of the Company adopted stock option plans (“the Plans”) pursuant to which the Company

may

grant incentive 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 the Plans 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 Plans is as follows:

	Options			Exercise Price				Weighted-Average Exercise Price
Options outstanding at December 31, 2018		5,535,439			$2.5	-	$21.99		7.30
Granted		215,000			5.15	-	9.84		5.60
Exercised		(190,903	)		2.5	-	10		3.38
Forfeitures		(126,875	)		2.5	-	14.18		8.06
Options outstanding at March 31, 2019		5,432,661			$2.5	-	$21.99		7.36

As of

March 31, 2019,

there was approximately

$3.2

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

2.02

years.

Note 6 - Subsequent Events

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

Subsequent Events

April 30, 2019,

the Company entered into an Equity Distribution Agreement with Piper Jaffray & Co which establishes an at-the-market equity program. The Sales Agreement provides for the sale of up to

4,334,453

shares of our Common Stock (for details see Form

424B5

filed

April 30, 2019).

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

March 31, 2019

and

December 31, 2018,

the results of its operations and comprehensive loss for the

three

month periods ended

March 31, 2019

and

2018,

and the cash flows for the

three

month periods ended

March 31, 2019

and

2018.

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

alternative future use are expensed as incurred as research and development costs.

Share-based Payment Arrangement [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

three

months ended

March 31, 2019

and

2018

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

	Three Months Ended March 31,
	2019		2018
Research and development	$	295	$	88
General and administrative		275		22
Total share-based compensation expense	$	570	$	110

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

	Three Months Ended March 31,
	2019			2018
Dividend yield		-			-
Expected volatility	80%	-	82%	67%	-	80%
Risk-free interest rate	2.46%	-	2.64%	2.38%	-	2.71%
Expected life (in years)	5.75	-	10	6.0	-	10
Weighted-average grant date fair value per share		$3.92			$3.02

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers highly liquid investments with a maturity of

three

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

Concentrations of Credit Risk

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

off-balance sheet concentrations of credit risk, such as foreign currency exchange contracts, option contracts or other hedging arrangements.

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 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

March 31, 2019

and

December 31, 2018,

the Company did

not

March 31, 2019

and

December 31, 2018,

due to their short-term nature.

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

Property and Equipment

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

• Building	39 years

Costs of major additions and betterments are capitalized; maintenance and repairs, which do

not

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

not

recognized any impairment through

March 31, 2019.

Income Tax, Policy [Policy Text Block]

Income Taxes

Income taxes are recorded in accordance with ASC

740,

Accounting for Income Taxes (“ASC

740”

not

that some or all of the deferred tax assets will

not

be realized.

ASC

740

clarifies the accounting for uncertainty in income taxes recognized in the financial statements and provides that a tax benefit from an uncertain tax position

may

be recognized when it is more likely than

not

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

-Q.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements

February 2016,

the FASB established Topic

842,

Leases, by issuing Accounting Standards Update (ASU)

No.

2016

02,

which supersedes ASC

840,

Leases, and requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic

842

was subsequently amended by ASU

No.

2018

01,

Land Easement Practical Expedient for Transition to Topic

842;

ASU

No.

2018

10,

Codification Improvements to Topic

842,

Leases; and ASU

No.

2018

11,

Targeted Improvements. Topic

842,

first

quarter of fiscal year

2019.

January 1, 2019,

using the alternative method. The Company does

not

have a cumulative adjustment impacting retained earnings. Adoption of the lease standard does

not

have a material impact on the Company’s consolidated financial statements.

Note 2 - Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended March 31,
	2019		2018
Research and development	$	295	$	88
General and administrative		275		22
Total share-based compensation expense	$	570	$	110

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

	Three Months Ended March 31,
	2019			2018
Dividend yield		-			-
Expected volatility	80%	-	82%	67%	-	80%
Risk-free interest rate	2.46%	-	2.64%	2.38%	-	2.71%
Expected life (in years)	5.75	-	10	6.0	-	10
Weighted-average grant date fair value per share		$3.92			$3.02

Note 3 - Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Property, Plant and Equipment [Table Text Block]

	March 31, 2019		December 31, 2018
Manufacturing equipment	$	4,567	$	4,937
Winnebago building		19,810		19,945
Other fixed assets		2,465		2,447
Total property and equipment	$	26,842	$	27,329

Note 5 - Common Stock Options (Tables)

3 Months Ended

Mar. 31, 2019

Notes Tables

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Options			Exercise Price				Weighted-Average Exercise Price
Options outstanding at December 31, 2018		5,535,439			$2.5	-	$21.99		7.30
Granted		215,000			5.15	-	9.84		5.60
Exercised		(190,903	)		2.5	-	10		3.38
Forfeitures		(126,875	)		2.5	-	14.18		8.06
Options outstanding at March 31, 2019		5,432,661			$2.5	-	$21.99		7.36

Note 2 - Significant Accounting Policies (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Impairment of Long-Lived Assets Held-for-use	$ 0
Number of Operating Segments	1
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 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
Building [Member]
Property, Plant and Equipment, Useful Life	39 years
Fair Value, Recurring [Member]
Assets, Fair Value Disclosure	$ 0		$ 0
Financial and Nonfinancial Liabilities, Fair Value Disclosure			$ 0	$ 0

Note 2 - Significant Accounting Policies - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based compensation expense	$ 570	$ 110
Research and Development Expense [Member]
Share-based compensation expense	295	88
General and Administrative Expense [Member]
Share-based compensation expense	$ 275	$ 22

Note 2 - Significant Accounting Policies - Stock Option Valuation Assumptions (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Dividend yield
Weighted-average grant date fair value per share (in dollars per share)	$ 3.92	$ 3.02
Minimum [Member]
Expected volatility	80.00%	67.00%
Risk-free interest rate	2.46%	2.38%
Expected life (Year)	5 years 273 days	6 years
Maximum [Member]
Expected volatility	82.00%	80.00%
Risk-free interest rate	2.64%	2.71%
Expected life (Year)	10 years	10 years
Weighted-average grant date fair value per share (in dollars per share)

Note 3 - Property and Equipment - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment, Net	$ 26,842	$ 27,329
Manufacturing Equipment [Member]
Property, Plant and Equipment, Net	4,567	4,937
Winnebago Building [Member]
Property, Plant and Equipment, Net	19,810	19,945
Property, Plant and Equipment, Other Types [Member]
Property, Plant and Equipment, Net	$ 2,465	$ 2,447

Note 4 - Common Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Common Stock, No Par Value	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	190,903	161,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price		$ 2.50
Proceeds from Stock Options Exercised	$ 643	$ 401
Stockholders' Equity Note, Subscriptions Receivable		$ 200
Minimum [Member]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 2.50
Maximum [Member]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 10

Note 5 - Common Stock Options (Details Textual) - The Plan [Member] $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Any One Person [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum	5.00%
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	$ 3.2
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	2 years 7 days

Note 5 - Common Stock Options - Changes in Common Stock Options Issued (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Options outstanding (in shares)	5,535,439
Granted (in shares)	215,000
Exercised (in shares)	(190,903)	(161,000)
Exercised, exercise price (in dollars per share)		$ 2.50
Forfeitures (in shares)	(126,875)
Options outstanding (in shares)	5,432,661	5,535,439
Minimum [Member]
Options outstanding, exercise price (in dollars per share)	$ 2.50
Granted, exercise price (in dollars per share)	5.15
Exercised, exercise price (in dollars per share)	2.50
Forfeitures, exercise price (in dollars per share)	2.50
Options outstanding, exercise price (in dollars per share)	2.50	$ 2.50
Maximum [Member]
Options outstanding, exercise price (in dollars per share)	21.99
Granted, exercise price (in dollars per share)	9.84
Exercised, exercise price (in dollars per share)	10
Forfeitures, exercise price (in dollars per share)	14.18
Options outstanding, exercise price (in dollars per share)	21.99	21.99
Weighted Average [Member]
Options outstanding, exercise price (in dollars per share)	7.30
Granted, exercise price (in dollars per share)	5.60
Exercised, exercise price (in dollars per share)	3.38
Forfeitures, exercise price (in dollars per share)	8.06
Options outstanding, exercise price (in dollars per share)	$ 7.36	$ 7.30

Note 6 - Subsequent Events (Details Textual)	Apr. 30, 2019 shares
Subsequent Event [Member] \| Equity Distribution Agreement with Piper Jaffray &Co [Member]
Stock Issued During Period, Shares, New Issues	4,334,453