| Components of loss before income taxes |
| |
|
Year ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| Domestic (U.S.) |
|
$ |
(12,253,271 |
) |
|
$ |
(7,724,418 |
) |
| Foreign (U.K.) |
|
|
(41,837,056 |
) |
|
|
(4,767,363 |
) |
| Foreign (Germany) |
|
|
(115,779 |
) |
|
|
(15,690 |
) |
| Loss before income taxes |
|
$ |
(54,206,106 |
) |
|
$ |
(12,507,471 |
) |
|
| Reconciliation of income tax provision (benefit) |
| |
|
Year
ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| Federal |
|
$ |
(18,429,763 |
) |
|
$ |
(4,252,540 |
) |
| State |
|
|
(455,191 |
) |
|
|
(276,601 |
) |
| Increase in tax losses not recognized |
|
|
9,751,401 |
|
|
|
2,238,879 |
|
| Permanent differences, net |
|
|
780,836 |
|
|
|
800,891 |
|
| Mark to market |
|
|
992,621 |
|
|
|
722,540 |
|
| Foreign rate differential |
|
|
6,923,116 |
|
|
|
502,357 |
|
| Share-based payments, net |
|
|
524,131 |
|
|
|
308,888 |
|
| Enhanced research and development tax credits |
|
|
(87,151 |
) |
|
|
(44,414 |
) |
| Net provision (benefit) for income taxes |
|
$ |
– |
|
|
$ |
– |
|
|
| Schedule of deferred tax assets and liabilities |
| |
|
Year
ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| U.K. net operating loss carryforwards |
|
$ |
6,868,717 |
|
|
$ |
9,402,398 |
|
| U.K. capital loss carryforwards |
|
|
1,259,062 |
|
|
|
1,775,932 |
|
| U.S. federal net operating loss carryforwards |
|
|
3,061,669 |
|
|
|
1,659,050 |
|
| IPR&D |
|
|
6,630,745 |
|
|
|
– |
|
| Share-based payments |
|
|
1,534,992 |
|
|
|
1,313,226 |
|
| Enhanced research and development tax credits |
|
|
796,256 |
|
|
|
852,272 |
|
| Germany net operating loss carryforwards |
|
|
424,432 |
|
|
|
401,906 |
|
| U.S. state net operating loss carryforwards |
|
|
749,812 |
|
|
|
422,622 |
|
| Accrued expenses |
|
|
174,424 |
|
|
|
44,557 |
|
| Depreciation |
|
|
3,673 |
|
|
|
25,823 |
|
| Other |
|
|
– |
|
|
|
4,998 |
|
| Total deferred tax assets
before valuation allowance |
|
|
21,503,782 |
|
|
|
15,902,784 |
|
|
Valuation allowance
for deferred tax assets
|
|
|
(21,503,782 |
) |
|
|
(15,324,438 |
) |
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Indefinite-lived intangible asset |
|
|
(2,918,518 |
) |
|
|
(2,918,518 |
) |
| Debt discount |
|
|
– |
|
|
|
(578,346 |
) |
| Total deferred tax liabilities |
|
|
(2,918,518 |
) |
|
|
(3,496,864 |
) |
| Net deferred tax assets and liabilities |
|
$ |
(2,918,518 |
) |
|
$ |
(2,918,518 |
) |
|