1.	Nature of the business and basis of preparation

BeyondSpring Inc. (the “Company”) was incorporated in the Cayman Islands on

November 21, 2014.

The Company and its subsidiaries (collectively, the “Group”) are principally engaged in clinical stage biopharmaceutical activities focused on the development of innovative cancer therapies. The Company is under the control of Mr. Linqing Jia and Dr. Lan Huang as a couple (collectively, the “Founders”) since its incorporation.

May 21, 2019,

the Company entered into a sales agreement with Jefferies LLC (“Jefferies”) to act as an agent in selling the Company’s ordinary shares in an at-the-market (“ATM”) offering program up to an aggregate offering proceeds of

$30,000

on mutually agreed terms. In

July 2019,

ATM offering was suspended and the Company has received an aggregate gross proceeds of

$13,023

620,753

ordinary shares already sold in respect thereof.

June 14, 2019

and

July 3, 2019,

certain investors led by Shenzhen Efung

9th

Venture Investment Center (Limited Partnership) (“Efung Capital”) entered into investment agreements with Dalian Wanchunbulin Pharmaceuticals Ltd. (“Wanchunbulin”), to invest

$14,537

(

RMB100,000

) for a total of

4.76%

equity interest of Wanchunbulin. To date, the Company has received

$10,083

(

RMB70,000

) from this equity financing.

June 25, 2019,

SEED Therapeutics Inc. (“SEED”) was incorporated in the British Virgin Islands (“BVI”) as a wholly owned subsidiary of the Company.

As at

June 30, 2019,

the subsidiaries of the Company are as follows:

Name of company	Place of incorporation	Date of incorporation	Percentage of ownership by the Company	Principal activities

BeyondSpring Pharmaceuticals Inc.	Delaware, United States of America (“U.S.”)	June 18, 2013	100%	Clinical trial activities

BeyondSpring Ltd.	BVI	December 3, 2014	100%	Holding company

BeyondSpring (HK) Limited	Hong Kong	January 13, 2015	100%	Holding company

Wanchun Biotechnology Limited	BVI	April 1, 2015	100%	Holding company

Wanchun Biotechnology (Shenzhen) Ltd.	The People’s Republic of China (“PRC”)	April 23, 2015	100%	Holding company

Wanchunbulin	PRC	May 6, 2015	60%	Clinical trial activities

BeyondSpring Pharmaceuticals Australia PTY Ltd. (“BeyondSpring Australia”)	Australia	March 3, 2016	100%	Clinical trial activities

Beijing Wanchun Pharmaceutical Technology Ltd. (“Beijing Wanchun”)	PRC	May 21, 2018	60%	Clinical trial activities

SEED	BVI	June 25, 2019	100%	Holding company

The accompanying unaudited interim condensed consolidated balance sheet as of

June 30, 2019,

the unaudited interim condensed consolidated statements of comprehensive loss for the

three

and

six

months ended

June 30, 2018

and

2019,

the cash flows for the

six

months ended

June 30, 2018

and

2019,

and the related footnote disclosures are unaudited. These unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) for interim financial information using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended

December 31, 2018.

Accordingly, these unaudited interim condensed consolidated financial statements do

not

include all of the information and footnotes required by U.S. GAAP for annual financial statements.

In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, operating results and cash flows of the Company for each of the periods presented. The results of operations for the

three

and

six

months ended

June 30, 2019

are

not

necessarily indicative of results to be expected for any other interim period or for the full year of

2019.

The consolidated balance sheet as of

December 31, 2018

was derived from the audited consolidated financial statements at that date but does

not

include all of the disclosures required by U.S. GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended

December 31, 2018.