Components of loss before income taxes |
|
|
Year ended December 31, |
|
|
|
2018 |
|
|
2017 |
|
Domestic (U.S.) |
|
$ |
(3,824,673 |
) |
|
$ |
(5,889,926 |
) |
Foreign (U.K.) |
|
|
(3,379,268 |
) |
|
|
2,398,830 |
|
Foreign (Germany) |
|
|
(96,517 |
) |
|
|
(104,036 |
) |
Loss before income taxes |
|
$ |
(7,300,458 |
) |
|
$ |
(3,595,132 |
) |
|
Reconciliation of income tax provision (benefit) |
|
|
Year ended December 31, |
|
|
|
2018 |
|
|
2017 |
|
Federal |
|
$ |
(1,533,096 |
) |
|
$ |
(1,222,345 |
) |
State |
|
|
(238,952 |
) |
|
|
(303,315 |
) |
Increase in tax losses not recognized |
|
|
1,695,482 |
|
|
|
(359,833 |
) |
Permanent differences, net |
|
|
40,015 |
|
|
|
162,543 |
|
Foreign rate differential |
|
|
124,294 |
|
|
|
(383,601 |
) |
Share-based payments, net |
|
|
20,441 |
|
|
|
(22,087 |
) |
Changes per enacted tax reform |
|
|
– |
|
|
|
2,320,059 |
|
Enhanced research and development tax credits |
|
|
(108,184 |
) |
|
|
(191,421 |
) |
Net provision (benefit) for income taxes |
|
$ |
– |
|
|
$ |
– |
|
|
Schedule of deferred tax assets and liabilities |
|
|
Year ended December 31, |
|
|
|
2018 |
|
|
2017 |
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
U.K. net operating loss carryforwards |
|
$ |
8,039,343 |
|
|
$ |
7,641,719 |
|
U.K. capital loss carryforwards |
|
|
1,298,303 |
|
|
|
1,378,643 |
|
U.S. federal net operating loss carryforwards |
|
|
3,184,691 |
|
|
|
2,606,017 |
|
IPR&D |
|
|
6,108,078 |
|
|
|
6,776,473 |
|
Share-based payments |
|
|
1,859,357 |
|
|
|
1,527,615 |
|
Enhanced research and development tax credits |
|
|
1,109,026 |
|
|
|
1,060,200 |
|
Germany net operating loss carryforwards |
|
|
524,093 |
|
|
|
516,401 |
|
U.S. state net operating loss carryforwards |
|
|
1,298,745 |
|
|
|
1,057,856 |
|
Accrued expenses |
|
|
59,979 |
|
|
|
198,067 |
|
Depreciation |
|
|
3,283 |
|
|
|
1,948 |
|
Other |
|
|
– |
|
|
|
– |
|
Total deferred tax assets before valuation allowance |
|
|
23,484,898 |
|
|
|
22,764,939 |
|
Valuation allowance for deferred tax assets |
|
|
(23,484,898 |
) |
|
|
(22,764,939 |
) |
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 liability |
|
$ |
(2,918,518 |
) |
|
$ |
(2,918,518 |
) |
|