6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of June 2021

Commission File Number: 001-38024

BeyondSpring Inc.

BeyondSpring Inc.

28 Liberty Street, 39th Floor

New York, New York 10005

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

On June 16, 2021, BeyondSpring Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information contained in this report, except the second paragraph of Exhibit 99.1, which contain certain quotes by the Chairperson and Chief Executive Officer of BeyondSpring Inc., is hereby incorporated by reference into the Registration Statements on Form F-3, File No. 333-249816, File No. 333-224437 and File No. 333-234193, and the Registration Statements on Form S-8, File No. 333-216639 and File No. 333-240082.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BeyondSpring Inc.
	By:	/s/ Lan Huang
	Name: Lan Huang
	Title: Chairperson and Chief Executive Officer
Date: June 16, 2021

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Press release, dated June 16, 2021.

EX-99.1

Exhibit 99.1

BeyondSpring Announces First Quarter 2021 Financial Results and Provides a Corporate Update

- NDA Filed by U.S. Food and Drug Administration(FDA) and given Priority Review for plinabulin plus G-CSF for the prevention of CIN. A PDUFA date of November 30, 2021 has been assigned by the FDA.

- Highlighted PROTECTIVE-2 Phase 3 data at two scientific conferences – ASCO and FOCIS – showing plinabulin in combination with G-CSF to have superior benefit in reducing the incidence and severity of febrile neutropenia and hospitalization rates and better QoL compared to pegfilgrastim alone

- Advanced clinical development of combination plinabulin + checkpoint inhibitors in PD-1/PD-L1-resistant tumors: presented promising Phase 1 anti-cancer data in PD-1/PD-L1-resistant SCLC at ASCO 2021; dosed first patient in a triple IO combination Phase 1 study in seven advanced solid tumors

NEW YORK, Jun. 16, 2021 – BeyondSpring Inc. (the “Company” or “BeyondSpring”) (NASDAQ: BYSI), a global biopharmaceutical company focused on the development of innovative cancer therapies, today announced its financial results for the first quarter ended March 31, 2021 and provided an update on recent corporate events.

“This quarter was marked by meaningful progress on the road toward building our lead first-in-class asset, plinabulin, as a pipeline in a drug, from treating chemotherapy side effects to treating cancer directly,” said Dr. Lan Huang, co-founder, chairwoman and chief executive officer of BeyondSpring. “We are grateful that our NDA for chemotherapy-induced neutropenia (CIN) prevention was filed by the U.S. FDA with priority review. Our plinabulin and G-CSF combination has the potential to elevate the standard of care in CIN for the first time in 30 years.  In addition, in the coming months, we plan to announce topline anti-cancer overall survival data from the Phase 3 DUBLIN-3 trial in NSCLC. We are building clinical evidence to demonstrate that plinabulin is a potent antigen presenting cell (APC) inducer with potential to be a ‘game changer’ in cancer treatment for severely unmet medical needs.”

Recent Corporate Highlights

Lead Asset Plinabulin, a “Pipeline in a Drug”

Clinical Update

• June 2021: Announced Food and Drug Administration (FDA) filing of New Drug Application with Priority Review for plinabulin and G-CSF combination for the prevention of CIN. The FDA set a Prescription Drug User Fee Act (PDUFA) target action date for November 30, 2021.

• June 2021: Presented three poster presentations at the 2021 Annual Meeting of the American Society of Clinical Oncology (ASCO) highlighting the Company’s PROTECTIVE-2 Phase 3 data demonstrating combination plinabulin + pegfilgrastim offers superior benefit in reducing the incidence and severity of febrile neutropenia (FN) and hospitalization, with better quality-of-life (QoL), compared to pegfilgrastim alone.

• June 2021: Announced late-breaking poster presentation at the Federation of Clinical Immunology Societies (FOCIS) Annual Meeting highlighting data from Phase 3 PROTECTIVE-2 CIN Study showing plinabulin in combination with pegfilgrastim improves CIN prevention and reverses key aspects of the immune suppressive profile of monotherapy pegfilgrastim.

• June 2021: Presented data at ASCO 2021 of plinabulin in combination with nivolumab and ipilimumab, showing a 46% objective response rate (ORR) in 13 evaluable patients with PD-1/PD-L1 naïve or resistant tumors in 2^nd line and beyond in small cell lung cancer (SCLC). Additionally, data demonstrated the plinabulin combination was able to re-sensitize tumors to I/O therapy, that had progressed on prior PD-1/PD-L1 inhibitors, with a 43% ORR.

• June 2021: Dosed first patient in a triple combination study with plinabulin, PD-1/PD-L1 inhibitor and radiotherapy at MD Anderson for the reversal of resistance to PD-1/PD-L1 inhibitors in patients with seven advanced solid tumors.

Upcoming Clinical Milestones

• Mid-2021 (DUBLIN-3): Topline overall survival (OS) data expected in pivotal Phase 3 non-small cell lung cancer (NSCLC) study.

• 2022: (Big Ten Cancer Research Consortium, Investigator Initiated study): Phase 2 Data expected in plinabulin + nivolumab + ipilimumab in checkpoint inhibitor-resistant SCLC.

• 2022: (MD Anderson investigator led study): Phase 1 Data expected in plinabulin + PD-1/PD-L1 inhibitors + radiation in PD-1/PD-L1-failed patients in seven cancers, including bladder cancer, melanoma, Merkel cell cancer, MSI-H Cancers (of any histology), NSCLC, renal cell cancer, and SCLC.

First Quarter 2021 Financial Results

Research and development (“R&D”) expenses were $11.3 million for the quarter ended March 31, 2021, compared to $13.7 million for the quarter ended March 31, 2020. The decrease of $2.4 million was primarily due to a decrease in clinical trial expenses and non-cash stock-based compensation expense, partially offset by an increase in manufacturing costs and the cost of the plinabulin regulatory filings.

General and administrative (“G&A”) expenses were $6.4 million for the quarter ended March 31, 2021, compared to $2.9 million for the quarter ended March 31, 2020. The $3.5 million increase was primarily due to higher personnel costs, non-cash stock-based compensation expense, as well as costs associated with plinabulin pre-commercialization activities.

Net loss attributable to the Company was $17.0 million for the quarter ended March 31, 2021, compared to $16.1 million for the quarter ended March 31, 2020.

As of March 31, 2021, the Company had cash and cash equivalents of $90.6 million on hand. The Company believes it has sufficient cash to support its ongoing clinical programs over the next year, including its immuno-oncology pipeline, and to prepare for a potential launch of plinabulin in CIN in early 2022.

First Quarter 2021 Results Conference Call and Webcast Details

The management of BeyondSpring will host a conference call and webcast for the investment community today, June 16, 2021, at 8:30 am ET. The conference call can be accessed by dialing 855-327-6837 (U.S. and Canada) or +1-631-891-4304 (International). The passcode for the conference call is 10014535 To access the live webcast or subsequent archived recording, click here or visit the “investors” section of the BeyondSpring website at www.beyondspringpharma.com. The webcast will be recorded and available for replay on the company’s website for 90 days.

About BeyondSpring

Headquartered in New York City, BeyondSpring is a global biopharmaceutical company focused on developing innovative cancer therapies to improve clinical outcomes for patients who have high unmet medical needs. BeyondSpring’s first-in-class lead asset plinabulin, a SelectiveImmunomodulating Microtubule-Binding Agent (SIMBA), is being developed a “pipeline in a drug.” It is filed for approval and has received Priority Review in the U.S. and China for the prevention of chemotherapy-induced neutropenia (CIN) with a PDUFA date of November 30, 2021, and has a fully enrolled pivotal study (Dublin-3) to test an anti-cancer benefit with an overall survival primary endpoint in non-small cell lung cancer (NSCLC). Additionally, it is being broadly studied in combination with various immuno-oncology regimens that could boost the effects of PD-1 / PD-L1 antibodies. In addition to plinabulin, BeyondSpring’s extensive pipeline includes three pre-clinical immuno-oncology assets and a subsidiary, SEED Therapeutics, which is leveraging a proprietary targeted protein degradation drug discovery platform.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements that are not historical facts. Words such as “will,” “expect,” “anticipate,” “plan,” “believe,” “design,” “may,” “future,” “estimate,” “predict,” “objective,” “goal,” or variations thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are based on BeyondSpring’s current knowledge and its present beliefs and expectations regarding possible future events and are subject to risks, uncertainties and assumptions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors including, but not limited to, difficulties raising the anticipated amount needed to finance the Company’s future operations on terms acceptable to the Company, if at all, unexpected results of clinical trials, delays or denial in regulatory approval process, results that do not meet our expectations regarding the potential safety, the ultimate efficacy or clinical utility of our product candidates, increased competition in the market, and other risks described in BeyondSpring’s most recent Form 20-F on file with the U.S. Securities and Exchange Commission. All forward-looking statements made herein speak only as of the date of this release and BeyondSpring undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law.

Investor Contact:

Ashley R. Robinson

LifeSci Advisors, LLC

+1 617-430-7577

arr@lifesciadvisors.com

Media Contact:

Darren Opland, Ph.D.

LifeSci Communications

+1 646-627-8387

darren@lifescicomms.com

++++++++

BEYONDSPRING INC.

AUDITED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2020 AND

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2021

(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)

			December 31,			March 31,
	Note		2020			2021
				$			$
						(Unaudited)
Assets
Current assets:
Cash and cash equivalents				109,537			90,574
Advances to suppliers				3,505			3,436
Prepaid expenses and other current assets				358			362
Total current assets				113,400			94,372
Noncurrent assets:
Property and equipment, net		4		184			175
Operating lease right-of-use assets				2,174			1,250
Other noncurrent assets				1,280			1,296
Total noncurrent assets				3,638			2,721
Total assets				117,038			97,093
Liabilities, mezzanine equity and equity
Current liabilities:
Accounts payable				2,216			1,569
Accrued expenses				5,607			5,756
Current portion of operating lease liabilities				787			505
Deferred revenue		3		1,350			1,350
Long-term loans, current portion		5		-			1,526
Other current liabilities		12		3,806			1,924
Total current liabilities				13,766			12,630
Noncurrent liabilities:
Long-term loans		5		2,167			635
Operating lease liabilities				1,359			673
Deferred revenue		3		7,925			7,587
Total noncurrent liabilities				11,451			8,895
Total liabilities				25,217			21,525
Commitments and contingencies		15
Mezzanine Equity
Contingently redeemable noncontrolling interests		14		5,196			5,196
Equity
Ordinary shares ($0.0001 par value; 500,000,000 shares authorized; 39,141,913 and 39,106,476 shares issued and outstanding as of December 31, 2020 and March 31, 2021, respectively)		8		4			4
Additional paid-in capital		8		366,451			367,555
Accumulated deficit		8		(277,818	)		(294,806	)
Accumulated other comprehensive loss		8		(297	)		(247	)
Total BeyondSpring Inc.’s shareholders’ equity				88,340			72,506
Noncontrolling interests		8		(1,715	)		(2,134	)
Total equity				86,625			70,372
Total liabilities, mezzanine equity and equity				117,038			97,093

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

1

BEYONDSPRING INC.

 UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2021

 (Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)

(Unaudited)

			Three months ended March 31,
	Note		2020			2021
				$			$
Revenue		3		-			338
Operating expenses
Research and development				(13,704	)		(11,311	)
General and administrative				(2,928	)		(6,447	)
Loss from operations				(16,632	)		(17,420	)
Foreign exchange loss, net				(74	)		(31	)
Interest income				64			32
Interest expense				(21	)		(24	)
Other income				1			-
Loss before income tax				(16,662	)		(17,443	)
Income tax benefit		7		-			-
Net loss				(16,662	)		(17,443	)
Less: Net loss attributable to noncontrolling interests				(578	)		(455	)
Net loss attributable to BeyondSpring Inc.				(16,084	)		(16,988	)
Net loss per share
Basic and diluted		11		(0.58	)		(0.44	)
Weighted average shares outstanding
Basic and diluted		11		27,732,449			39,004,609
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustment gain				53			73
Comprehensive loss				(16,609	)		(17,370	)
Less: Comprehensive loss attributable to noncontrolling interests				(582	)		(432	)
Comprehensive loss attributable to BeyondSpring Inc.				(16,027	)		(16,938	)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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BEYONDSPRING INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2021

 (Amounts in thousands of U.S. Dollars (“$”))

(Unaudited)

			Three months ended March 31,
	Note		2020			2021
				$			$
Cash flows from operating activities:
Net loss				(16,662	)		(17,443	)
Adjustments to reconcile net loss to cash used in operating activities:
Share-based compensation		13		3,470			1,122
Depreciation expenses		4		15			17
Non-cash operating lease expense				157			99
Loss on disposal of right-of-use assets				-			22
Changes in assets and liabilities:
Advances to suppliers				135			69
Prepaid expenses and other current assets				(42	)		(4	)
Other noncurrent assets				5			(16	)
Accounts payable				2,603			(647	)
Accrued expenses				(1,164	)		187
Operating lease liabilities				(163	)		(165	)
Other current liabilities				596			(1,843	)
Deferred revenue				-			(338	)
Net cash used in operating activities				(11,050	)		(18,940	)
Cash flows from investing activities:
Acquisitions of property and equipment				(9	)		(8	)
Net cash used in investing activities				(9	)		(8	)
Cash flows from financing activities:
Issuance costs of ordinary shares and redeemable noncontrolling interests				-			(82	)
Loans from related parties		6		14			-
Net cash provided by (used in) financing activities				14			(82	)
Effect of foreign exchange rate changes, net				29			67
Net decrease in cash and cash equivalents				(11,016	)		(18,963	)
Cash and cash equivalents at beginning of period				35,933			109,537
Cash and cash equivalents at end of period				24,917			90,574
Supplemental disclosures of cash flow information
Interest paid				21			22
Interest received				117			24
Non-cash activities:
Operating right-of-use assets obtained (released) in exchange for operating lease liabilities				226			(803	)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

3

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

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 focusing 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.

As of March 31, 2021, the subsidiaries of the Company are as follows:

		Date of	Percentage of ownership by the	Principal
Name of company	Place of incorporation	incorporation	Company	activities
BeyondSpring Pharmaceuticals Inc. (“BeyondSpring US ”)	Delaware, United States of America (“U.S.”)	June 18, 2013	100%	Clinical trial activities
BeyondSpring Ltd.	The British Virgin Islands (“BVI”)	December 3, 2014	100%	Holding company
BeyondSpring (HK) Limited (“BeyondSpring HK”)	Hong Kong	January 13, 2015	100%	Holding company
Wanchun Biotechnology Limited (“BVI Biotech”)	BVI	April 1, 2015	100%	Holding company
Wanchun Biotechnology (Shenzhen) Ltd. (“Wanchun Shenzhen”)	The People’s Republic of China (“PRC”)	April 23, 2015	100%	Holding company
Dalian Wanchunbulin Pharmaceuticals Ltd. (“Wanchunbulin”)	PRC	May 6, 2015	57.97%	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	57.97%	Holding company
SEED Therapeutics Inc. (“SEED”)	BVI	June 25, 2019	58.97%	Pre-clinical development activities
SEED Technology Limited (“SEED Technology”)	BVI	December 9, 2019	57.97%	Holding company
SEED Therapeutics US, Inc. (“SEED US”)	Delaware, U.S.	November 25, 2020	58.97%	Pre-clinical development activities

4

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

1. Nature of the business and basis of preparation (continued)

The accompanying unaudited interim condensed consolidated balance sheet as of March 31, 2021, the unaudited interim condensed consolidated statements of comprehensive loss for the three months ended March 31, 2020 and 2021, the cash flows for the three months ended March 31, 2020 and 2021, 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. 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, 2020. 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 Group for each of the periods presented. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of results to be expected for any other interim period or for the full year of 2021. The consolidated balance sheet as of December 31, 2020 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, 2020.

2. Summary of significant accounting policies

Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Going concern

According to Accounting Standards Codification (“ASC”) 205-40, Presentation of Financial Statements - Going Concern (“ASC 205-40”), management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.

The Company has incurred operating losses and negative cash flows from operations since inception. To date, the Company has no product revenue and management expects operating losses to continue for the foreseeable future and has primarily funded these losses through equity financings. The Company incurred a net loss of $17,443 for the three months ended March 31, 2021 and has an accumulated deficit of $294,806 as of March 31, 2021. Net cash used in operations was approximately $18,940 for the three months ended March 31, 2021. As of March 31, 2021, the Company had $81,742 net current assets and $90,574 of cash and cash equivalents on hand.

Based on the Company’s cash and cash equivalents on hand on March 31, 2021, management does not believe that there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued. These financial statements have been prepared on a going concern basis.

5

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

2. Summary of significant accounting policies (continued)

Use of estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period. Areas where management uses subjective judgment include, but are not limited to, share-based compensation, clinical trial accruals, valuation allowance for deferred tax assets, estimating uncertain tax positions, measurement of right-of-use assets and lease liabilities, fair value of financial instruments and estimating of useful life for property and equipment. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

Fair value measurements

The Company applies ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

• Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2—Other inputs that are directly or indirectly observable in the marketplace.

• Level 3—Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash and cash equivalents, accounts payable, redeemable noncontrolling interests, forward liability and long-term loans. The redeemable noncontrolling interests were initially recorded at issuance price net of issuance costs. The Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the redeemable noncontrolling interests to equal the redemption value at the end of each reporting period. The Company measures its forward liability at fair value on a recurring basis. As of December 31, 2020 and March 31, 2021, the fair values of cash and cash equivalents, accounts payable, and current portion of long-term loans approximated their carrying values due to their short-term nature.

As of December 31, 2020 and March 31, 2021, the total carrying amount of long-term loans was $2,167 and $635, compared with an estimated fair value of $2,136 and $634, respectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level 2 fair value measurement).

6

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

2. Summary of significant accounting policies (continued)

Fair value measurements (continued)

Liabilities measured at fair value on a recurring basis as of December 31, 2020 and March 31, 2021 are summarized below:

			Fair value measurement
Recurring fair value measurement	Total Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
		$		$		$		$
As of December 31, 2020 (audited):
Forward liability (Note 3)		278		-		-		278
As of March 31, 2021 (unaudited):
Forward liability (Note 3)		278		-		-		278

The Company determined the fair value of the forward liability with the assistance of an independent third-party valuation firm. The fair value of the forward liability is estimated by a discounted cash flow model considering the fair value of the underlying security at December 31, 2020 and March 31, 2021 and the agreed upon future issuance price per contract. For the three months ended March 31, 2021, the fair value change of the forward liability was not material. 

The following table represents the assumptions used to estimate the fair value of the forward liability.

	Valuation technique	Unobservable inputs	Range
Forward liability	Discounted cash flow	Fair value of underlying security	2.65

The following table presents a reconciliation of the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period presented.

	Forward liability
		$
Balance as of December 31, 2020 (audited)		278
Gains or losses from changes in fair value		-
Balance as of March 31, 2021 (unaudited)		278

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BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

3. Collaboration revenue

On November 12, 2020, the Company’s subsidiary, SEED, entered into a research collaboration and license agreement (the “Collaboration Agreement”) with Eli Lilly and Company (“Lilly”). Under the Collaboration Agreement, SEED controls certain rights to intellectual property and other materials related to a platform technology for ubiquitin ligase agonist screening (the “Ub Platform Technology”), and Lilly and SEED shall use commercially reasonable efforts to conduct a research and development program to generate, identify and/or optimize active compounds (“Lilly Compounds”) directed against no more than three targets selected by Lilly (“Lilly Targets”), using the Ub Platform Technology in accordance with the applicable research plans for each of the Lilly Targets.

Under the Collaboration Agreement, Lilly paid SEED an upfront non-refundable fee of $10,000 in November 2020. In addition, SEED will also be eligible to receive up to approximately $780,000 in potential pre-clinical discovery and clinical development, regulatory development milestone payments, as well as commercial milestones and royalty payments based on net sales of products that result from the collaboration. The Collaboration Agreement is within the scope of ASC 808, as both parties are active participants and are exposed to the risks and rewards dependent on the commercial success of the activities performed under the agreement. The Company further determined the collaboration is reflective of a vendor-customer relationship and therefore within the scope of ASC 606.

Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company determined the license under the Ub Platform Technology is not distinct within the context of the contract because it is used as an input to produce and deliver the combined outputs, i.e. the identification of Lilly Compounds. The Company determined that it has a single performance obligation which is the stand ready obligation to provide the research and development services to Lilly throughout the shorter of the period up to the completion of research and development activities under the research plans for three Lilly Targets or the contract period of 7 years. Transaction price allocated to the research and development services is recognized as revenue over time on a straight-line basis because the customer simultaneously receives and consumes the benefits as the Company performs throughout a fixed term. The preclinical discovery, clinical and regulatory development milestone payments were fully constrained at contract inception, and are not included in the transaction price.

In connection with the Collaboration Agreement, the Company and SEED Technology (collectively, the “BYSI Entities”) transferred certain contracts, know-how, materials and equipment, and documents related to a proprietary technology platform to SEED for 9,631,941 Series A-1 convertible preferred shares (the “Series A-1 Preferred Shares”) of SEED. In addition, SEED, BYSI entities, and Lilly entered into share purchase agreements pursuant to which SEED issued an aggregate of 1,194,030 shares of its Series A-1 Preferred Shares to BYSI Entities, and 1,990,000 shares of its Series A-2 convertible redeemable preferred shares (the “Series A-2 Preferred Shares”, collectively with Series A-1 Preferred Shares, the “Preferred Shares”) to Lilly, each at a cash purchase price of $2.5125 per share. Series A-2 Preferred Shares were recorded as contingently redeemable noncontrolling interests in mezzanine equity (Note 14). Pursuant to the share purchase agreement (the “A2 SPA”) entered into between SEED and Lilly, SEED also agreed to sell and issue to Lilly an additional 1,990,000 Series A-2 Preferred Shares, at a cash purchase price of $2.5125 per share upon the fulfillment, prior to November 12, 2022, of certain conditions under the terms of the A2 SPA (the “Forward”). The fair value of the Series A-2 Preferred Shares and Forward at closing was determined by the Company with the assistance of a third party independent valuation firm. The Company used a discounted cash flow model to determine the total equity value of SEED and further adopted the equity allocation model to determine the fair value of the Series A-2 Preferred Shares as of the date of issuance based on the rights and preferences of those shares over the other classes of equity issued by SEED, which is adjusted for a lack of marketability discount because the shares are subject to certain restrictions. The fair value of the Series A-2 Preferred Shares and the Forward on the closing date was determined to be $5,267 and $278, respectively.

The Company recognized collaboration revenue of nil and $338 related to the Collaboration Agreement for the three months ended March 31, 2020 and 2021, respectively. Revenue recognized for the three months ended March 31, 2021 was from amounts included in contract liabilities at the beginning of the period.

8

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

4. Property and equipment, net

Property and equipment consist of the following:

	December 31, 2020			March 31, 2021
		$			$
				(Unaudited)
Office equipment		181			191
Laboratory equipment		121			120
Motor vehicles		24			24
Leasehold improvements		116			115
		442			450
Less: accumulated depreciation		(258	)		(275	)
Property and equipment, net		184			175

Depreciation expenses for the three months ended March 31, 2020 and 2021 were $15 and $17, respectively.

9

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

5. Loans

On March 28, 2019, the Company borrowed a three-year term loan with a principal amount of $1,493 (RMB10,000) from China Construction Bank, which bears a floating interest rate benchmarking the RMB loan interest rate of financial institution in the PRC. The loan interest rate is 5.45% as of March 31, 2021. The loan is guaranteed by the shareholder of the Company, Shenzhen Sangel Capital Management Limited Company (“Shenzhen Sangel”) and Mr. Mulong Liu, a shareholder of Shenzhen Sangel. The maturity date of the loan is March 28, 2022.

On May 3, 2020, the Company obtained a two-year term loan with a principal amount of $635 from Citibank, North America (“Citibank”) under a Paycheck Protection Program initiated by U.S. Small Business Administration. The loan bears an annual interest rate of 1% and the maturity date is May 3, 2022. Under the Paycheck Protection Program, the Company is eligible to apply for forgiveness of the loan in an amount equal to the sum of certain qualified costs.

The aggregate contractual maturities of all borrowings due subsequent to March 31, 2021 are as follows:

Maturity dates	Amounts
		$
	(Unaudited)
Year ending December 31, 2021		-
Year ending December 31, 2022		2,161
Total		2,161

6. Related party transactions

In February 2020, the Company borrowed 60-day interest-free loans totaling of $14 (RMB100) from Dalian Wanchun Biotechnology Co., Ltd. (“Wanchun Biotech”). The above loans were repaid in September 2020.

7. Income taxes

There is no provision for income taxes because the Company and its subsidiaries were in a cumulative loss position for the three months ended March 31, 2020 and 2021.

The Company recorded a full valuation allowance against deferred tax assets for all periods presented. There were no material changes in unrecognized tax benefits and related interest and penalties for the three months ended March 31, 2021. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly change within the next 12 months.

10

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

8. Equity

The movement of equity is as follows:

	BeyondSpring Inc.’s shareholders
											Accumulated
						Additional					other						Non
	Ordinary share					paid-in		Accumulated			comprehensive						controlling			Total
	Shares			Amount		capital		deficit			(loss) gain			Subtotal			interests			equity
					$		$		$			$			$			$			$
Balances at January 1, 2021 (audited)		39,141,913			4		366,451		(277,818	)		(297	)		88,340			(1,715	)		86,625
Share-based compensation		(35,437	)		-		1,104		-			-			1,104			13			1,117
Foreign currency translation adjustment gain		-			-		-		-			50			50			23			73
Net loss		-			-		-		(16,988	)		-			(16,988	)		(455	)		(17,443	)
Balances at March 31, 2021 (unaudited)		39,106,476			4		367,555		(294,806	)		(247	)		72,506			(2,134	)		70,372
Balances at January 1, 2020 (audited)		27,885,613			3		246,979		(216,845	)		140			30,277			854			31,131
Share-based compensation		3,293			-		3,438		-			-			3,438			32			3,470
Foreign currency translation adjustment gain (loss)		-			-		-		-			57			57			(4	)		53
Net loss		-			-		-		(16,084	)		-			(16,084	)		(578	)		(16,662	)
Balances at March 31, 2020 (unaudited)		27,888,906			3		250,417		(232,929	)		197			17,688			304			17,992

9. Restricted net assets

As a result of PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of December 31, 2020 and March 31, 2021, amounts restricted were the net assets of the Company’s PRC subsidiaries, which amounted to nil.

11

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

10. Employee defined contribution plan

Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company’s PRC subsidiaries make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $26 and $61 for the three months ended March 31, 2020 and 2021, respectively.

11. Net loss per share

Basic and diluted net loss per share attributable to ordinary shareholders was calculated as follows:

	Three months ended March 31,
	2020			2021
	(Unaudited)			(Unaudited)
Numerator:
Net loss attributable to BeyondSpring Inc.—basic and diluted	$	(16,084	)	$	(16,988	)
Denominator:
Weighted average number of ordinary shares outstanding—basic and diluted		27,732,449			39,004,609
Net loss per share —basic and diluted	$	(0.58	)	$	(0.44	)

The effects of unvested restricted shares and share options were excluded from the calculation of diluted loss per share as their effect would have been anti-dilutive during the three months ended March 31, 2020 and 2021.

12. Supplemental balance sheet information

Other current liabilities consist of the following:

	As of December 31,		As of March 31,
	2020		2021
		$		$
			(Unaudited)
Compensation related		2,222		714
Professional services		373		46
Other taxes related		857		876
Forward liability		278		278
Others		76		10
Total		3,806		1,924

12

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 (Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

13. Share-based compensation

During the three months ended March 31, 2021, the Company granted a total of 100,208 share options and 1,426 restricted shares, respectively.

The following table summarizes total share-based compensation expense recognized for the three months ended March 31, 2020 and 2021:

	Three months ended March 31,
	2020		2021
		$		$
		(Unaudited)	(Unaudited)
Research and development		3,183		8
General and administrative		287		1,114
Total		3,470		1,122

14. Contingently redeemable noncontrolling interests

The Company determined that Series A-2 Preferred Shares issued by SEED are contingently redeemable noncontrolling interests classified as mezzanine equity as they may be redeemed at the option of the holders on or after an agreed upon date outside the sole control of SEED. The Company concluded that the Series A-2 Preferred Shares of SEED are not redeemable currently, but it is probable that the they will become redeemable. The Company chose to recognize changes in the redemption value as they occur and adjust the carrying amount of the redeemable noncontrolling interests to equal the redemption value at the end of each reporting period.

The holder of the Series A-2 Preferred Shares of SEED has the ability to convert the instrument into SEED’s ordinary shares. The Company uses the whole instrument approach to determine whether the nature of the host contract in a hybrid instrument is more akin to debt or to equity. The Company evaluated the embedded conversion option in the Series A-2 Preferred Shares of SEED to determine if there were any embedded derivatives requiring bifurcation and to determine if there were any beneficial conversion features (“BCF”). The conversion option of the Series A-2 Preferred Shares of SEED does not qualify for bifurcation accounting because the conversion option is clearly and closely related to the host instrument and the underlying ordinary shares are not publicly traded nor readily convertible into cash. The contingent redemption of the Series A-2 Preferred Shares of SEED does not qualify for bifurcation accounting because the underlying ordinary shares of SEED are not publicly traded nor readily convertible into cash. There are no other embedded derivatives that are required to be bifurcated.

No BCF was recognized for the Series A-2 Preferred Shares of SEED because the fair value per ordinary share of SEED of $0.50 at the commitment date was less than the most favorable conversion price of $2.5125. The Company determined the fair value of SEED’s ordinary shares with the assistance of an independent third party valuation firm.

Since the fair value of the Series A-2 Preferred Shares was higher than the redemption amount as of March 31, 2021, no accretion was recognized for the three months ended March 31, 2021.

13

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 (Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

15. Commitments and contingencies

Legal Proceedings

From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, results of operation, financial condition or cash flows.

14

XML

Document And Entity Information	3 Months Ended
	Mar. 31, 2021
Document Information [Line Items]
Entity Registrant Name	BeyondSpring Inc.
Entity Central Index Key	0001677940
Current Fiscal Year End Date	--12-31
Document Type	6-K
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Audited Consolidated Balance Sheet as of December 31, 2020 and Unaudited Interim Condensed Consolidated Balance Sheet as of March 31, 2021 - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 90,574	$ 109,537
Advances to suppliers	3,436	3,505
Prepaid expenses and other current assets	362	358
Total current assets	94,372	113,400
Noncurrent assets:
Property and equipment, net	175	184
Operating lease right-of-use assets	1,250	2,174
Other noncurrent assets	1,296	1,280
Total noncurrent assets	2,721	3,638
Total assets	97,093	117,038
Current liabilities:
Accounts payable	1,569	2,216
Accrued expenses	5,756	5,607
Current portion of operating lease liabilities	505	787
Deferred revenue	1,350	1,350
Long-term loans, current portion	1,526
Other current liabilities	1,924	3,806
Total current liabilities	12,630	13,766
Noncurrent liabilities:
Long-term loans	635	2,167
Operating lease liabilities	673	1,359
Deferred revenue	7,587	7,925
Total noncurrent liabilities	8,895	11,451
Total liabilities	21,525	25,217
Commitments and contingencies
Mezzanine Equity
Contingently redeemable noncontrolling interests	5,196	5,196
Equity
Ordinary shares ($0.0001 par value; 500,000,000 shares authorized; 39,141,913 and 39,106,476 shares issued and outstanding as of December 31, 2020 and March 31, 2021, respectively)	4	4
Additional paid-in capital	367,555	366,451
Accumulated deficit	(294,806)	(277,818)
Accumulated other comprehensive loss	(247)	(297)
Total BeyondSpring Inc.’s shareholders’ equity	72,506	88,340
Noncontrolling interests	(2,134)	(1,715)
Total equity	70,372	86,625
Total liabilities, mezzanine equity and equity	$ 97,093	$ 117,038

XML

Audited Consolidated Balance Sheet as of December 31, 2020 and Unaudited Interim Condensed Consolidated Balance Sheet as of March 31, 2021 (Parentheticals) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Ordinary shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Ordinary shares, authorized (in shares)	500,000,000	500,000,000
Ordinary shares, issued (in shares)	39,106,476	39,141,913
Ordinary shares, outstanding (in shares)	39,106,476	39,141,913

XML

Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2020 and 2021 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue	$ 338
Operating expenses
Research and development	(11,311)	(13,704)
General and administrative	(6,447)	(2,928)
Loss from operations	(17,420)	(16,632)
Foreign exchange loss, net	(31)	(74)
Interest income	32	64
Interest expense	(24)	(21)
Other income		1
Loss before income tax	(17,443)	(16,662)
Income tax benefit	0	0
Net loss	(17,443)	(16,662)
Less: Net loss attributable to noncontrolling interests	(455)	(578)
Net loss attributable to BeyondSpring Inc.	$ (16,988)	$ (16,084)
Net loss per share
Basic and diluted (in dollars per share)	$ (0.44)	$ (0.58)
Weighted average shares outstanding
Basic and diluted (in shares)	39,004,609	27,732,449
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustment gain	$ 73	$ 53
Comprehensive loss	(17,370)	(16,609)
Less: Comprehensive loss attributable to noncontrolling interests	(432)	(582)
Comprehensive loss attributable to BeyondSpring Inc.	$ (16,938)	$ (16,027)

XML

Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2021 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (17,443)	$ (16,662)
Adjustments to reconcile net loss to cash used in operating activities:
Share-based compensation	1,122	3,470
Depreciation expenses	17	15
Non-cash operating lease expense	99	157
Loss on disposal of right-of-use assets	22
Changes in assets and liabilities:
Advances to suppliers	69	135
Prepaid expenses and other current assets	(4)	(42)
Other noncurrent assets	(16)	5
Accounts payable	(647)	2,603
Accrued expenses	187	(1,164)
Operating lease liabilities	(165)	(163)
Other current liabilities	(1,843)	596
Deferred revenue	(338)
Net cash used in operating activities	(18,940)	(11,050)
Cash flows from investing activities:
Acquisitions of property and equipment	(8)	(9)
Net cash used in investing activities	(8)	(9)
Cash flows from financing activities:
Issuance costs of ordinary shares and redeemable noncontrolling interests	(82)
Loans from related parties		14
Net cash provided by (used in) financing activities	(82)	14
Effect of foreign exchange rate changes, net	67	29
Net decrease in cash and cash equivalents	(18,963)	(11,016)
Cash and cash equivalents at beginning of period	109,537	35,933
Cash and cash equivalents at end of period	90,574	24,917
Supplemental disclosures of cash flow information
Interest paid	22	21
Interest received	24	117
Non-cash activities:
Operating right-of-use assets obtained (released) in exchange for operating lease liabilities	$ (803)	$ 226

XML

Note 1 - Nature of the Business and Basis of Preparation

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Nature of Operations [Text Block]

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 focusing 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.

As of

March 31, 2021,

the subsidiaries of the Company are as follows:

			Percentage of
		Date of	ownership by the	Principal
Name of company	Place of incorporation	incorporation	Company	activities
BeyondSpring
Pharmaceuticals Inc.	Delaware,
(“BeyondSpring US ”)	United States of America (“U.S.”)	June 18, 2013	100%	Clinical trial activities
BeyondSpring Ltd.	The British Virgin Islands (“BVI”)	December 3, 2014	100%	Holding company
BeyondSpring (HK) Limited
(“BeyondSpring HK”)	Hong Kong	January 13, 2015	100%	Holding company
Wanchun Biotechnology
Limited (“BVI Biotech”)	BVI	April 1, 2015	100%	Holding company
Wanchun Biotechnology
(Shenzhen) Ltd.	The People's Republic of China
(“Wanchun Shenzhen”)	(“PRC”)	April 23, 2015	100%	Holding company
Dalian Wanchunbulin
Pharmaceuticals Ltd.
(“Wanchunbulin”)	PRC	May 6, 2015	57.97%	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	57.97%	Holding company
SEED Therapeutics Inc.
(“SEED”)	BVI	June 25, 2019	58.97%	Pre-clinical development activities
SEED Technology Limited
(“SEED Technology”)	BVI	December 9, 2019	57.97%	Holding company
SEED Therapeutics US, Inc.
(“SEED US”)	Delaware, U.S.	November 25, 2020	58.97%	Pre-clinical development activities

The accompanying unaudited interim condensed consolidated balance sheet as of

March 31, 2021,

the unaudited interim condensed consolidated statements of comprehensive loss for the

three

months ended

March 31, 2020

and

2021,

the cash flows for the

three

months ended

March 31, 2020

and

2021,

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. 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, 2020.

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 Group for each of the periods presented. The results of operations for the

three

months ended

March 31, 2021

are

not

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

2021.

The consolidated balance sheet as of

December 31, 2020

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, 2020.

XML

Note 2 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2. Summary of significant accounting policies

Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Going concern

According to Accounting Standards Codification (“ASC”)

205

-

40,

Presentation of Financial Statements - Going Concern

(“ASC

205

-

40”

), management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within

one

year after the date that the financial statements are issued. This evaluation initially does

not

take into consideration the potential mitigating effect of management's plans that have

not

been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company's ability to continue as a going concern. The mitigating effect of management's plans, however, is only considered if both (

1

) it is probable that the plans will be effectively implemented within

one

year after the date that the financial statements are issued, and (

2

) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within

one

year after the date that the financial statements are issued.

The Company has incurred operating losses and negative cash flows from operations since inception. To date, the Company has

no

product revenue and management expects operating losses to continue for the foreseeable future and has primarily funded these losses through equity financings. The Company incurred a net loss of

$17,443

for the

three

months ended

March 31, 2021

and has an accumulated deficit of

$294,806

as of

March 31, 2021.

Net cash used in operations was approximately

$18,940

for the

three

months ended

March 31, 2021.

As of

March 31, 2021,

the Company had

$81,742

net current assets and

$90,574

of cash and cash equivalents on hand.

Based on the Company's cash and cash equivalents on hand on

March 31, 2021,

management does

not

believe that there is substantial doubt about the Company's ability to continue as a going concern within

one

year after the date these financial statements are issued. These financial statements have been prepared on a going concern basis.

Use of estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period. Areas where management uses subjective judgment include, but are

not

limited to, share-based compensation, clinical trial accruals, valuation allowance for deferred tax assets, estimating uncertain tax positions,

 

measurement of right-of-use assets and lease liabilities, fair value of financial instruments and estimating of useful life for property and equipment. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

Fair value measurements

The Company applies ASC

820,

Fair Value Measurements and Disclosures

(“ASC

820”

), in measuring fair value. ASC

820

defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement.

ASC

820

establishes a

three

-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

• Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2—Other inputs that are directly or indirectly observable in the marketplace.

• Level 3—Unobservable inputs which are supported by little or no market activity.

ASC

820

describes

three

main approaches to measuring the fair value of assets and liabilities: (

1

) market approach; (

2

) income approach and (

3

) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash and cash equivalents, accounts payable, redeemable noncontrolling interests, forward liability and long-term loans. The redeemable noncontrolling interests were initially recorded at issuance price net of issuance costs. The Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the redeemable noncontrolling interests to equal the redemption value at the end of each reporting period. The Company measures its forward liability at fair value on a recurring basis. As of

December 31, 2020

and

March 31, 2021,

the fair values of cash and cash equivalents, accounts payable, and current portion of long-term loans approximated their carrying values due to their short-term nature.

As of

December 31, 2020

and

March 31, 2021,

the total carrying amount of long-term loans was

$2,167

and

$635,

compared with an estimated fair value of

$2,136

and

$634,

respectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level

2

fair value measurement).

Liabilities measured at fair value on a recurring basis as of

December 31, 2020

and

March 

31,

2021

are summarized below:

			Fair value measurement
Recurring fair value measurement	Total Fair Value		Quoted prices in active markets for identical assets ( Level 1)		Significant other observable inputs ( Level 2)		Significant unobservable inputs (Level 3)
	$		$		$		$
As of December 31, 2020 (audited):
Forward liability (Note 3)		278		-		-		278
As of March 31, 2021 (unaudited):
Forward liability (Note 3)		278		-		-		278

The Company determined the fair value of the forward liability with the assistance of an independent

third

-party valuation firm. The fair value of the forward liability is estimated by a discounted cash flow model considering the fair value of the underlying security at

December 31, 2020

and

March 31, 2021

and the agreed upon future issuance price per contract.

For the

three

months ended

March 31, 2021,

the fair value change of the forward liability was

not

material. 

The following table represents the assumptions used to estimate the fair value of the forward liability.

	Valuation technique	Unobservable inputs	Range
Forward liability	Discounted cash flow	Fair value of underlying security	2.65

The following table presents a reconciliation of the liability measured at fair value on a recurring basis using significant unobservable inputs (Level

3

) for the period presented.

	Forward liability
	$
Balance as of December 31, 2020 (audited)		278
Gains or losses from changes in fair value		-
Balance as of March 31, 2021 (unaudited)		278

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Note 3 - Collaboration Revenue

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Collaboration Revenue Disclosure [Text Block]

3. Collaboration revenue

On

November 12, 2020,

the Company's subsidiary, SEED, entered into a research collaboration and license agreement (the “Collaboration Agreement”) with Eli Lilly and Company (“Lilly”). Under the Collaboration Agreement, SEED controls certain rights to intellectual property and other materials related to a platform technology for ubiquitin ligase agonist screening (the “Ub Platform Technology”), and Lilly and SEED shall use commercially reasonable efforts to conduct a research and development program to generate, identify and/or optimize active compounds (“Lilly Compounds”) directed against

no

more than

three

targets selected by Lilly (“Lilly Targets”), using the Ub Platform Technology in accordance with the applicable research plans for each of the Lilly Targets.

Under the Collaboration Agreement, Lilly paid SEED an upfront non-refundable fee of

$10,000

in

November 2020.

In addition, SEED will also be eligible to receive up to approximately

$780,000

in potential pre-clinical discovery and clinical development, regulatory development milestone payments, as well as commercial milestones and royalty payments based on net sales of products that result from the collaboration. The Collaboration Agreement is within the scope of ASC

808,

as both parties are active participants and are exposed to the risks and rewards dependent on the commercial success of the activities performed under the agreement. The Company further determined the collaboration is reflective of a vendor-customer relationship and therefore within the scope of ASC

606.

Under ASC

606,

Revenue from Contracts with Customers

(“ASC

606”

)

, the Company determined the license under the Ub Platform Technology is

not

distinct within the context of the contract because it is used as an input to produce and deliver the combined outputs, i.e. the identification of Lilly Compounds. The Company determined that it has a single performance obligation which is the stand ready obligation to provide the research and development services to Lilly throughout the shorter of the period up to the completion of research and development activities under the research plans for

three

Lilly Targets or the contract period of

7

years. Transaction price allocated to the research and development services is recognized as revenue over time on a straight-line basis because the customer simultaneously receives and consumes the benefits as the Company performs throughout a fixed term. The preclinical discovery, clinical and regulatory development milestone payments were fully constrained at contract inception, and are

not

included in the transaction price.

In connection with the Collaboration Agreement, the Company and SEED Technology (collectively, the “BYSI Entities”) transferred certain contracts, know-how, materials and equipment, and documents related to a proprietary technology platform to SEED for

9,631,941

Series A-

1

convertible preferred shares (the “Series A-

1

Preferred Shares”) of SEED. In addition, SEED, BYSI entities, and Lilly entered into share purchase agreements pursuant to which SEED issued an aggregate of

1,194,030

shares of its Series A-

1

Preferred Shares to BYSI Entities, and

1,990,000

shares of its Series A-

2

convertible redeemable preferred shares (the “Series A-

2

Preferred Shares”, collectively with Series A-

1

Preferred Shares, the “Preferred Shares”) to Lilly, each at a cash purchase price of

$2.5125

per share. Series A-

2

Preferred Shares were recorded as contingently redeemable noncontrolling interests in mezzanine equity (Note

14

). Pursuant to the share purchase agreement (the

“A2

SPA”) entered into between SEED and Lilly, SEED also agreed to sell and issue to Lilly an additional

1,990,000

Series A-

2

Preferred Shares, at a cash purchase price of

$2.5125

per share upon the fulfillment, prior to

November 12, 2022,

of certain conditions under the terms of the

A2

SPA (the “Forward”). The fair value of the Series A-

2

Preferred Shares and Forward at closing was determined by the Company with the assistance of a

third

party independent valuation firm. The Company used a discounted cash flow model to determine the total equity value of SEED and further adopted the equity allocation model to determine the fair value of the Series A-

2

Preferred Shares as of the date of issuance based on the rights and preferences of those shares over the other classes of equity issued by SEED, which is adjusted for a lack of marketability discount because the shares are subject to certain restrictions. The fair value of the Series A-

2

Preferred Shares and the Forward on the closing date was determined to be

$5,267

and

$278,

respectively.

The Company recognized collaboration revenue of

nil

and

$338

related to the Collaboration Agreement for the

three

months ended

March 31, 2020

and

2021,

respectively. Revenue recognized for the

three

months ended

March 31, 2021

was from amounts included in contract liabilities at the beginning of the period.

XML

Note 4 - Property and Equipment, Net

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

4. Property and equipment, net

Property and equipment consist of the following:

	December 31, 2020			March 31, 2021
	$			$
				(Unaudited)
Office equipment		181			191
Laboratory equipment		121			120
Motor vehicles		24			24
Leasehold improvements		116			115
		442			450
Less: accumulated depreciation		(258	)		(275	)
Property and equipment, net		184			175

Depreciation expenses for the

three

months ended

March 31, 2020

and

2021

were

$15

and

$17,

respectively.

XML

Note 5 - Loans

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

5. Loans

On

March 28, 2019,

the Company borrowed a

three

-year term loan with a principal amount of

$1,493

(

RMB10,000

) from China Construction Bank, which bears a floating interest rate benchmarking the RMB loan interest rate of financial institution in the PRC. The loan interest rate is

5.45%

as of

March 31, 2021.

The loan is guaranteed by the shareholder of the Company, Shenzhen Sangel Capital Management Limited Company (“Shenzhen Sangel”) and Mr. Mulong Liu, a shareholder of Shenzhen Sangel. The maturity date of the loan is

March 28, 2022.

On

May 3, 2020,

the Company obtained a

two

-year term loan with a principal amount of

$635

from Citibank, North America (“Citibank”) under a Paycheck Protection Program initiated by U.S. Small Business Administration. The loan bears an annual interest rate of

1%

and the maturity date is

May 3, 2022.

Under the Paycheck Protection Program, the Company is eligible to apply for forgiveness of the loan in an amount equal to the sum of certain qualified costs.

The aggregate contractual maturities of all borrowings due subsequent to

March 31, 2021

are as follows:

Maturity dates	Amounts
		$
		(Unaudited)
Year ending December 31, 2021		-
Year ending December 31, 2022		2,161
Total		2,161

XML

Note 6 - Related Party Transactions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

6. Related party transactions

In

February 2020,

the Company borrowed

60

-day interest-free loans totaling of

$14

(

RMB100

) from Dalian Wanchun Biotechnology Co., Ltd. (“Wanchun Biotech”). The above loans were repaid in

September 2020.

XML

Note 7 - Income Taxes

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7. Income taxes

There is

no

provision for income taxes because the Company and its subsidiaries were in a cumulative loss position for the

three

months ended

March 31, 2020

and

2021.

The Company recorded a full valuation allowance against deferred tax assets for all periods presented. There were

no

material changes in unrecognized tax benefits and related interest and penalties for the

three

months ended

March 31, 2021.

The Company does

not

anticipate that the amount of existing unrecognized tax benefits will significantly change within the next

12

months.

XML

Note 8 - Equity

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

8. Equity

The movement of equity is as follows

:

	BeyondSpring Inc.'s shareholders
											Accumulated
						Additional					other						Non
	Ordinary share					paid-in		Accumulated			comprehensive						controlling			Total
	Shares			Amount		capital		deficit			(loss) gain			Subtotal			interests			equity
				$		$		$			$			$			$			$
Balances at January 1, 2021 (audited)		39,141,913			4		366,451		(277,818	)		(297	)		88,340			(1,715	)		86,625
Share-based compensation		(35,437	)		-		1,104		-			-			1,104			13			1,117
Foreign currency translation adjustment gain		-			-		-		-			50			50			23			73
Net loss		-			-		-		(16,988	)		-			(16,988	)		(455	)		(17,443	)
Balances at March 31, 2021 (unaudited)		39,106,476			4		367,555		(294,806	)		(247	)		72,506			(2,134	)		70,372
Balances at January 1, 2020 (audited)		27,885,613			3		246,979		(216,845	)		140			30,277			854			31,131
Share-based compensation		3,293			-		3,438		-			-			3,438			32			3,470
Foreign currency translation adjustment gain (loss)		-			-		-		-			57			57			(4	)		53
Net loss		-			-		-		(16,084	)		-			(16,084	)		(578	)		(16,662	)
Balances at March 31, 2020 (unaudited)		27,888,906			3		250,417		(232,929	)		197			17,688			304			17,992

XML

Note 9 - Restricted Net Assets

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Restricted Assets Disclosure [Text Block]

9. Restricted net assets

As a result of PRC laws and regulations, the Company's PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of

December 31, 2020

and

March 31, 2021,

amounts restricted were the net assets of the Company's PRC subsidiaries, which amounted to

nil

.

XML

Note 10 - Employee Defined Contribution Plan

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

10. Employee defined contribution plan

Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company's PRC subsidiaries make contributions to the government for these benefits based on certain percentages of the employees' salaries. The Company has

no

legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were

$26

and

$61

for the

three

months ended

March 31, 2020

and

2021,

respectively.

XML

Note 11 - Net Loss Per Share

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

11. Net loss per share

Basic and diluted net loss per share attributable to ordinary shareholders was calculated as follows:

	Three months ended March 31,
	2020			2021
	(Unaudited)			(Unaudited)
Numerator:
Net loss attributable to BeyondSpring Inc.—basic and diluted	$	(16,084	)	$	(16,988	)
Denominator:
Weighted average number of ordinary shares outstanding—basic and diluted		27,732,449			39,004,609
Net loss per share —basic and diluted	$	(0.58	)	$	(0.44	)

The effects of unvested restricted shares and share options were excluded from the calculation of diluted loss per share as their effect would have been anti-dilutive during the

three

months ended

March 31, 2020

and

2021.

XML

Note 12 - Supplemental Balance Sheet Information

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

12. Supplemental balance sheet information

Other current liabilities consist of the following:

	As of December 31,		As of March 31,
	2020		2021
		$		$
				( Unaudited)
Compensation related		2,222		714
Professional services		373		46
Other taxes related		857		876
Forward liability		278		278
Others		76		10
Total		3,806		1,924

XML

Note 13 - Share based Compensation

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

13. Share-based compensation

During the

three

months ended

March 31, 2021,

the Company granted a total of

100,208

share options and

1,426

restricted shares, respectively.

The following table summarizes total share-based compensation expense recognized for the

three

months ended

March 31, 2020

and

2021:

	Three months ended March 31,
	2020		2021
	$		$
	(Unaudited)		(Unaudited)
Research and development		3,183		8
General and administrative		287		1,114
Total		3,470		1,122

XML

Note 14 - Contingently Redeemable Noncontrolling Interests

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Noncontrolling Interest Disclosure [Text Block]

14. Contingently redeemable noncontrolling interests

The Company determined that Series A-

2

Preferred Shares issued by SEED are contingently redeemable noncontrolling interests classified as mezzanine equity as they

may

be redeemed

at the option of the holders on or after an agreed upon date outside the sole control of SEED

.

The Company concluded that the Series A-

2

Preferred Shares of SEED are

not

redeemable currently, but it is probable that the they will become redeemable. The Company chose to recognize changes in the redemption value as they occur and adjust the carrying amount of the redeemable noncontrolling interests to equal the redemption value at the end of each reporting period.

The holder of the Series A-

2

Preferred Shares of SEED has the ability to convert the instrument into SEED's ordinary shares. The Company uses the whole instrument approach to determine whether the nature of the host contract in a hybrid instrument is more akin to debt or to equity. The Company evaluated the embedded conversion option in the Series A-

2

Preferred Shares of SEED to determine if there were any embedded derivatives requiring bifurcation and to determine if there were any beneficial conversion features (“BCF”). The conversion option of the Series A-

2

Preferred Shares of SEED does

not

qualify for bifurcation accounting because the conversion option is clearly and closely related to the host instrument and the underlying ordinary shares are

not

publicly traded nor readily convertible into cash. The contingent redemption of the Series A-

2

Preferred Shares of SEED does

not

qualify for bifurcation accounting because the underlying ordinary shares of SEED are

not

publicly traded nor readily convertible into cash. There are

no

other embedded derivatives that are required to be bifurcated.

No

BCF was recognized for the Series A-

2

Preferred Shares of SEED because the fair value per ordinary share of SEED of

$0.50

at the commitment date was less than the most favorable conversion price of

$2.5125.

The Company determined the fair value of SEED's ordinary shares with the assistance of an independent

third

party valuation firm.

Since the fair value of the Series A-

2

Preferred Shares was higher than the redemption amount as of

March 31, 2021,

no

accretion was recognized for the

three

months ended

March 31, 2021.

XML

Note 15 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

15. Commitments and contingencies

Legal Proceedings

From time to time, we

may

become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are

not

presently a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, results of operation, financial condition or cash flows.

XML

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Going Concern, Policy [Policy Text Block]

Going concern

According to Accounting Standards Codification (“ASC”)

205

-

40,

Presentation of Financial Statements - Going Concern

(“ASC

205

-

40”

), management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within

one

year after the date that the financial statements are issued. This evaluation initially does

not

take into consideration the potential mitigating effect of management's plans that have

not

been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company's ability to continue as a going concern. The mitigating effect of management's plans, however, is only considered if both (

1

) it is probable that the plans will be effectively implemented within

one

year after the date that the financial statements are issued, and (

2

) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within

one

year after the date that the financial statements are issued.

The Company has incurred operating losses and negative cash flows from operations since inception. To date, the Company has

no

product revenue and management expects operating losses to continue for the foreseeable future and has primarily funded these losses through equity financings. The Company incurred a net loss of

$17,443

for the

three

months ended

March 31, 2021

and has an accumulated deficit of

$294,806

as of

March 31, 2021.

Net cash used in operations was approximately

$18,940

for the

three

months ended

March 31, 2021.

As of

March 31, 2021,

the Company had

$81,742

net current assets and

$90,574

of cash and cash equivalents on hand.

Based on the Company's cash and cash equivalents on hand on

March 31, 2021,

management does

not

believe that there is substantial doubt about the Company's ability to continue as a going concern within

one

year after the date these financial statements are issued. These financial statements have been prepared on a going concern basis.

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period. Areas where management uses subjective judgment include, but are

not

limited to, share-based compensation, clinical trial accruals, valuation allowance for deferred tax assets, estimating uncertain tax positions,

 

measurement of right-of-use assets and lease liabilities, fair value of financial instruments and estimating of useful life for property and equipment. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair value measurements

The Company applies ASC

820,

Fair Value Measurements and Disclosures

(“ASC

820”

), in measuring fair value. ASC

820

defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement.

ASC

820

establishes a

three

-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

• Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2—Other inputs that are directly or indirectly observable in the marketplace.

• Level 3—Unobservable inputs which are supported by little or no market activity.

ASC

820

describes

three

main approaches to measuring the fair value of assets and liabilities: (

1

) market approach; (

2

) income approach and (

3

) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash and cash equivalents, accounts payable, redeemable noncontrolling interests, forward liability and long-term loans. The redeemable noncontrolling interests were initially recorded at issuance price net of issuance costs. The Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the redeemable noncontrolling interests to equal the redemption value at the end of each reporting period. The Company measures its forward liability at fair value on a recurring basis. As of

December 31, 2020

and

March 31, 2021,

the fair values of cash and cash equivalents, accounts payable, and current portion of long-term loans approximated their carrying values due to their short-term nature.

As of

December 31, 2020

and

March 31, 2021,

the total carrying amount of long-term loans was

$2,167

and

$635,

compared with an estimated fair value of

$2,136

and

$634,

respectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level

2

fair value measurement).

Liabilities measured at fair value on a recurring basis as of

December 31, 2020

and

March 

31,

2021

are summarized below:

			Fair value measurement
Recurring fair value measurement	Total Fair Value		Quoted prices in active markets for identical assets ( Level 1)		Significant other observable inputs ( Level 2)		Significant unobservable inputs (Level 3)
	$		$		$		$
As of December 31, 2020 (audited):
Forward liability (Note 3)		278		-		-		278
As of March 31, 2021 (unaudited):
Forward liability (Note 3)		278		-		-		278

The Company determined the fair value of the forward liability with the assistance of an independent

third

-party valuation firm. The fair value of the forward liability is estimated by a discounted cash flow model considering the fair value of the underlying security at

December 31, 2020

and

March 31, 2021

and the agreed upon future issuance price per contract.

For the

three

months ended

March 31, 2021,

the fair value change of the forward liability was

not

material. 

The following table represents the assumptions used to estimate the fair value of the forward liability.

	Valuation technique	Unobservable inputs	Range
Forward liability	Discounted cash flow	Fair value of underlying security	2.65

The following table presents a reconciliation of the liability measured at fair value on a recurring basis using significant unobservable inputs (Level

3

) for the period presented.

	Forward liability
	$
Balance as of December 31, 2020 (audited)		278
Gains or losses from changes in fair value		-
Balance as of March 31, 2021 (unaudited)		278

XML

Note 1 - Nature of the Business and Basis of Preparation (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Subsidiaries [Table Text Block]

			Percentage of
		Date of	ownership by the	Principal
Name of company	Place of incorporation	incorporation	Company	activities
BeyondSpring
Pharmaceuticals Inc.	Delaware,
(“BeyondSpring US ”)	United States of America (“U.S.”)	June 18, 2013	100%	Clinical trial activities
BeyondSpring Ltd.	The British Virgin Islands (“BVI”)	December 3, 2014	100%	Holding company
BeyondSpring (HK) Limited
(“BeyondSpring HK”)	Hong Kong	January 13, 2015	100%	Holding company
Wanchun Biotechnology
Limited (“BVI Biotech”)	BVI	April 1, 2015	100%	Holding company
Wanchun Biotechnology
(Shenzhen) Ltd.	The People's Republic of China
(“Wanchun Shenzhen”)	(“PRC”)	April 23, 2015	100%	Holding company
Dalian Wanchunbulin
Pharmaceuticals Ltd.
(“Wanchunbulin”)	PRC	May 6, 2015	57.97%	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	57.97%	Holding company
SEED Therapeutics Inc.
(“SEED”)	BVI	June 25, 2019	58.97%	Pre-clinical development activities
SEED Technology Limited
(“SEED Technology”)	BVI	December 9, 2019	57.97%	Holding company
SEED Therapeutics US, Inc.
(“SEED US”)	Delaware, U.S.	November 25, 2020	58.97%	Pre-clinical development activities

XML

Note 2 - Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

			Fair value measurement
Recurring fair value measurement	Total Fair Value		Quoted prices in active markets for identical assets ( Level 1)		Significant other observable inputs ( Level 2)		Significant unobservable inputs (Level 3)
	$		$		$		$
As of December 31, 2020 (audited):
Forward liability (Note 3)		278		-		-		278
As of March 31, 2021 (unaudited):
Forward liability (Note 3)		278		-		-		278

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

	Valuation technique	Unobservable inputs	Range
Forward liability	Discounted cash flow	Fair value of underlying security	2.65

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Forward liability
	$
Balance as of December 31, 2020 (audited)		278
Gains or losses from changes in fair value		-
Balance as of March 31, 2021 (unaudited)		278

XML

Note 4 - Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Property, Plant and Equipment [Table Text Block]

	December 31, 2020			March 31, 2021
	$			$
				(Unaudited)
Office equipment		181			191
Laboratory equipment		121			120
Motor vehicles		24			24
Leasehold improvements		116			115
		442			450
Less: accumulated depreciation		(258	)		(275	)
Property and equipment, net		184			175

XML

Note 5 - Loans (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Maturities of Long-term Debt [Table Text Block]

Maturity dates	Amounts
		$
		(Unaudited)
Year ending December 31, 2021		-
Year ending December 31, 2022		2,161
Total		2,161

XML

Note 8 - Equity (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Stockholders Equity [Table Text Block]

	BeyondSpring Inc.'s shareholders
											Accumulated
						Additional					other						Non
	Ordinary share					paid-in		Accumulated			comprehensive						controlling			Total
	Shares			Amount		capital		deficit			(loss) gain			Subtotal			interests			equity
				$		$		$			$			$			$			$
Balances at January 1, 2021 (audited)		39,141,913			4		366,451		(277,818	)		(297	)		88,340			(1,715	)		86,625
Share-based compensation		(35,437	)		-		1,104		-			-			1,104			13			1,117
Foreign currency translation adjustment gain		-			-		-		-			50			50			23			73
Net loss		-			-		-		(16,988	)		-			(16,988	)		(455	)		(17,443	)
Balances at March 31, 2021 (unaudited)		39,106,476			4		367,555		(294,806	)		(247	)		72,506			(2,134	)		70,372
Balances at January 1, 2020 (audited)		27,885,613			3		246,979		(216,845	)		140			30,277			854			31,131
Share-based compensation		3,293			-		3,438		-			-			3,438			32			3,470
Foreign currency translation adjustment gain (loss)		-			-		-		-			57			57			(4	)		53
Net loss		-			-		-		(16,084	)		-			(16,084	)		(578	)		(16,662	)
Balances at March 31, 2020 (unaudited)		27,888,906			3		250,417		(232,929	)		197			17,688			304			17,992

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Note 11 - Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

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

	Three months ended March 31,
	2020			2021
	(Unaudited)			(Unaudited)
Numerator:
Net loss attributable to BeyondSpring Inc.—basic and diluted	$	(16,084	)	$	(16,988	)
Denominator:
Weighted average number of ordinary shares outstanding—basic and diluted		27,732,449			39,004,609
Net loss per share —basic and diluted	$	(0.58	)	$	(0.44	)

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Note 12 - Supplemental Balance Sheet Information (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Other Current Liabilities [Table Text Block]

	As of December 31,		As of March 31,
	2020		2021
		$		$
				( Unaudited)
Compensation related		2,222		714
Professional services		373		46
Other taxes related		857		876
Forward liability		278		278
Others		76		10
Total		3,806		1,924

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Note 13 - Share based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

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

	Three months ended March 31,
	2020		2021
	$		$
	(Unaudited)		(Unaudited)
Research and development		3,183		8
General and administrative		287		1,114
Total		3,470		1,122

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Note 1 - Nature of the Business and Basis of Preparation - Schedule of Subsidiaries (Details)	Mar. 31, 2021
BeyondSpring Pharmaceuticals Inc. [Member]
Equity method investment, ownership percentage	100.00%
BeyondSpring Ltd. [Member]
Equity method investment, ownership percentage	100.00%
BeyondSpring HK Limited [Member]
Equity method investment, ownership percentage	100.00%
Wanchun Biotechnology Limited [Member]
Equity method investment, ownership percentage	100.00%
Wanchun Biotechnology (Shenzhen) Ltd. [Member]
Equity method investment, ownership percentage	100.00%
Dalian Wanchunbulin Pharmaceuticals Ltd. (“Wanchunbulin”) [Member]
Equity method investment, ownership percentage	57.97%
BeyondSpring Australia [Member]
Equity method investment, ownership percentage	100.00%
Beijing Wanchun Pharmaceutical Technology Ltd. [Member]
Equity method investment, ownership percentage	57.97%
SEED Therapeutics1 Inc. [Member]
Equity method investment, ownership percentage	58.97%
SEED Technology Limited [Member]
Equity method investment, ownership percentage	57.97%
SEED Therapeutics US, Inc. [Member]
Equity method investment, ownership percentage	58.97%

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Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total	$ (17,443)	$ (16,662)
Retained Earnings (Accumulated Deficit), Ending Balance	(294,806)		$ (277,818)
Net Cash Provided by (Used in) Operating Activities, Total	(18,940)	$ (11,050)
Net Current Assets	81,742
Cash and Cash Equivalents, at Carrying Value, Ending Balance	90,574		109,537
Long-term Debt, Excluding Current Maturities, Total	635		2,167
Long-term Debt, Fair Value	634		$ 2,136
Product [Member]
Revenue from Contract with Customer, Excluding Assessed Tax, Total	$ 0

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Note 2 - Summary of Significant Accounting Policies - Schedule of Fair Value of Assets and Liabilities Measured On Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Reported Value Measurement [Member]
Forward liability (Note 3)	$ 278	$ 278
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Forward liability (Note 3)
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Forward liability (Note 3)
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Forward liability (Note 3)	$ 278	$ 278

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Note 2 - Summary of Significant Accounting Policies - Assumptions Used to Estimate the Fair Value of the Forward Liability (Details)	Mar. 31, 2021
Fair Value of Underlying Security [Member] | Valuation, Income Approach [Member]
Forward liability	2.65

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Note 2 - Summary of Significant Accounting Policies - Reconciliation of Changes in Fair Value (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)
Balance	$ 278
Gains or losses from changes in fair value
Balance	$ 278

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Note 3 - Collaboration Revenue (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		31 Months Ended
	Nov. 12, 2020	Nov. 30, 2020	Mar. 31, 2021	Mar. 31, 2020	Nov. 12, 2022
Revenue from Contract with Customer, Including Assessed Tax			$ 338
Research Collaboration and License Agreement with Eli Lilly [Member] | Series A-2 Preferred Shares [Member]
Redeemable Noncontrolling Interest, Equity, Preferred, Fair Value			5,267
Research Collaboration and License Agreement with Eli Lilly [Member] | SEED Therapeutics Inc. [Member]
Collaborative Arrangement, Upfront Cash Payment		$ 10,000
Derivative Liability, Total			278
Revenue from Contract with Customer, Including Assessed Tax			$ 338
Research Collaboration and License Agreement with Eli Lilly [Member] | SEED Therapeutics Inc. [Member] | Series A-1 Convertible Preferred Shares [Member]
Stock Issued for Transfer of Assets, Shares (in shares)	9,631,941
Research Collaboration and License Agreement with Eli Lilly [Member] | SEED Therapeutics Inc. [Member] | Series A-1 Preferred Shares [Member]
Stock Issued During Period, Shares, New Issues (in shares)	1,194,030
Research Collaboration and License Agreement with Eli Lilly [Member] | SEED Therapeutics Inc. [Member] | Series A-2 Preferred Shares [Member]
Stock Issued During Period, Shares, New Issues (in shares)	1,990,000
Shares Issued, Price Per Share (in dollars per share)	$ 2.5125
Research Collaboration and License Agreement with Eli Lilly [Member] | SEED Therapeutics Inc. [Member] | Additional Series A-2 Preferred Shares [Member] | Forecast [Member]
Stock Issued During Period, Shares, New Issues (in shares)					1,990,000
Shares Issued, Price Per Share (in dollars per share)					$ 2.5125
Research Collaboration and License Agreement with Eli Lilly [Member] | SEED Therapeutics Inc. [Member] | Maximum [Member]
Collaborative Arrangement, Equity Investment		$ 780,000

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Note 4 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Depreciation, Total	$ 17	$ 15

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Note 4 - Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property, plant, and equipment, gross	$ 450	$ 442
Less: accumulated depreciation	(275)	(258)
Property and equipment, net	175	184
Office Equipment [Member]
Property, plant, and equipment, gross	191	181
Laboratory Equipment [Member]
Property, plant, and equipment, gross	120	121
Automobiles [Member]
Property, plant, and equipment, gross	24	24
Leasehold Improvements [Member]
Property, plant, and equipment, gross	$ 115	$ 116

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Note 5 - Loans (Details Textual) $ in Thousands, ¥ in Millions	May 03, 2020 USD ($)	Mar. 28, 2019 USD ($)	Mar. 31, 2021 USD ($)	Mar. 28, 2019 CNY (¥)
Long-term Debt, Total			$ 2,161
Term Loan [Member] | China Construction Bank [Member]
Debt Instrument, Term (Year)		3 years
Long-term Debt, Total		$ 1,493		¥ 10
Debt Instrument, Interest Rate, Stated Percentage			5.45%
Paycheck Protection Program CARES Act [Member]
Debt Instrument, Term (Year)	2 years
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Proceeds from Issuance of Long-term Debt, Total	$ 635

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Note 5 - Loans - Schedule of Maturities (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Long term debt, 2021
Long term debt, 2022	2,161
Total	$ 2,161

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Note 6 - Related Party Transactions (Details Textual) - 1 months ended Feb. 29, 2020 $ in Thousands, ¥ in Millions	USD ($)	CNY (¥)
Dalian Wanchun Biotechnology Co., Ltd. [Member]
Proceeds from Short-term Debt, Total	$ 14	¥ 0.1

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Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Expense (Benefit), Total	$ 0	$ 0

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Note 8 - Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Balances	$ 86,625	$ 31,131
Share-based compensation	1,117	3,470
Foreign currency translation adjustment gain	73	53
Net loss	(17,443)	(16,662)
Balances	$ 70,372	$ 17,992
Common Stock [Member]
Balances (in shares)	39,141,913	27,885,613
Balances	$ 4	$ 3
Share-based compensation (in shares)	35,437	3,293
Share-based compensation
Foreign currency translation adjustment gain
Net loss
Balances (in shares)	39,106,476	27,888,906
Balances	$ 4	$ 3
Additional Paid-in Capital [Member]
Balances	366,451	246,979
Share-based compensation	1,104	3,438
Foreign currency translation adjustment gain
Net loss
Balances	367,555	250,417
Retained Earnings [Member]
Balances	(277,818)	(216,845)
Share-based compensation
Foreign currency translation adjustment gain
Net loss	(16,988)	(16,084)
Balances	(294,806)	(232,929)
AOCI Attributable to Parent [Member]
Balances	(297)	140
Share-based compensation
Foreign currency translation adjustment gain	50	57
Net loss
Balances	(247)	197
Parent [Member]
Balances	88,340	30,277
Share-based compensation	1,104	3,438
Foreign currency translation adjustment gain	50	57
Net loss	(16,988)	(16,084)
Balances	72,506	17,688
Noncontrolling Interest [Member]
Balances	(1,715)	854
Share-based compensation	13	32
Foreign currency translation adjustment gain	23	(4)
Net loss	(455)	(578)
Balances	$ (2,134)	$ 304

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Note 9 - Restricted Net Assets (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Restricted Net Assets	$ 0	$ 0

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Note 10 - Employee Defined Contribution Plan (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Defined Contribution Plan, Cost	$ 61	$ 26

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Note 11 - Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net loss attributable to ordinary shareholders	$ (16,988)	$ (16,084)
Weighted average number of ordinary shares outstanding—basic and diluted (in shares)	39,004,609	27,732,449
Net loss per share —basic and diluted (in dollars per share)	$ (0.44)	$ (0.58)

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Note 12 - Supplemental Balance Sheet Information - Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Compensation related	$ 714	$ 2,222
Professional services	46	373
Other taxes related	876	857
Forward liability	278	278
Others	10	76
Total	$ 1,924	$ 3,806

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Note 13 - Share based Compensation (Details Textual)	3 Months Ended
	Mar. 31, 2021 shares
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	100,208
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	1,426

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Note 13 - Share based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Allocated Share-based Compensation Expense	$ 1,122	$ 3,470
Research and Development Expense [Member]
Allocated Share-based Compensation Expense	8	3,183
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense	$ 1,114	$ 287

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Note 14 - Contingently Redeemable Noncontrolling Interests (Details Textual) - Series A-2 Preferred Shares [Member] - Research Collaboration and License Agreement with Eli Lilly [Member] - SEED Therapeutics Inc. [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) $ / shares
Temporary Equity, Stock Issued During Period, Value, New Issues | $	$ 0
Share Price (in dollars per share) | $ / shares	$ 0.50
Convertible Instrument, Conversion Price (in dollars per share) | $ / shares	$ 2.5125
Preferred Stock, Accretion of Redemption Discount | $	$ 0