Annual report pursuant to Section 13 and 15(d)

10. Income Taxes (Tables)

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10. Income Taxes (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Components of loss before income taxes
    Year ended December 31,  
    2017     2016  
Domestic (U.S.)   $ (5,889,926 )   $ (12,253,271 )
Foreign (U.K.)     2,398,830       (41,837,056 )
Foreign (Germany)     (104,036 )     (115,779 )
Loss before income taxes   $ (3,595,132 )   $ (54,206,106 )
Reconciliation of income tax provision (benefit)
    Year ended December 31,  
    2017     2016  
Federal   $ (1,222,345 )     (18,429,763 )
State     (303,315 )     (455,191 )
Increase in tax losses not recognized     (359,833 )     9,751,401  
Permanent differences, net     162,543       780,836  
Mark to market           992,621  
Foreign rate differential     (383,601 )     6,923,116  
Share-based payments, net     (22,087 )     524,131  
Changes per enacted tax reform     2,320,059        
Enhanced research and development tax credits     (191,421 )     (87,151 )
Net provision (benefit) for income taxes   $     $  
Schedule of deferred tax assets and liabilities
    Year ended December 31,  
    2017     2016  
Deferred tax assets:                
U.K. net operating loss carryforwards   $ 7,641,719     $ 6,868,717  
U.K. capital loss carryforwards     1,378,643       1,259,062  
U.S. federal net operating loss carryforwards     2,606,017       3,061,669  
IPR&D     6,776,473       6,630,745  
Share-based payments     1,527,615       1,534,992  
Enhanced research and development tax credits     1,060,200       796,256  
Germany net operating loss carryforwards     516,401       424,432  
U.S. state net operating loss carryforwards     1,057,856       749,812  
Accrued expenses     198,067       174,424  
Depreciation     1,948       3,673  
Other            
Total deferred tax assets before valuation allowance     22,764,939       21,503,782  
Valuation allowance for deferred tax assets     (22,764,939 )     (21,503,782 )
Deferred tax liabilities:                
Indefinite-lived intangible asset     (2,918,518 )     (2,918,518 )
Debt discount            
Total deferred tax liabilities     (2,918,518 )     (2,918,518 )
Net deferred tax assets and liabilities   $ (2,918,518 )   $ (2,918,518 )
Uncertain tax benefits
    Year ended December 31,  
    2017     2016  
Uncertain tax benefits as of January 1   $     $  
Gross adjustments in tax positions            
Uncertain tax positions as of December 31   $     $