| Components of loss before income taxes |
| |
|
Year ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Domestic (U.S.) |
|
$ |
(4,368,330 |
) |
|
$ |
(4,317,585 |
) |
| Foreign (U.K.) |
|
|
(61,867 |
) |
|
|
(2,302,131 |
) |
| Foreign (Germany) |
|
|
(9,357,256 |
) |
|
|
(3,389,473 |
) |
| Foreign (Switzerland) |
|
|
(24,531 |
) |
|
|
(2,765,836 |
) |
| Loss before income taxes |
|
$ |
(13,811,984 |
) |
|
$ |
(12,775,025 |
) |
|
| Reconciliation of income tax provision (benefit) |
| |
|
Year ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Federal |
|
$ |
(2,900,517 |
) |
|
$ |
(2,682,755 |
) |
| State |
|
|
(230,238 |
) |
|
|
(284,724 |
) |
| Change in valuation allowance |
|
|
3,089,617 |
|
|
|
1,878,033 |
|
| Permanent differences, net |
|
|
1,399 |
|
|
|
1,323 |
|
| Goodwill impairment |
|
|
– |
|
|
|
689,510 |
|
| Foreign rate differential |
|
|
(985,231 |
) |
|
|
381,190 |
|
| Share-based payments, net |
|
|
22,267 |
|
|
|
11,084 |
|
| Enhanced research and development tax credits |
|
|
(56,564 |
) |
|
|
(54,148 |
) |
| Rate change |
|
|
(2,015,683 |
) |
|
|
– |
|
| Other items |
|
|
156,432 |
|
|
|
60,487 |
|
| Net benefit for income taxes |
|
$ |
(2,918,518 |
) |
|
$ |
– |
|
|
| Schedule of deferred tax assets and liabilities |
| |
|
Year ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| U.K. net operating loss carryforwards |
|
$ |
10,733,568 |
|
|
$ |
8,984,851 |
|
| U.K. capital loss carryforwards |
|
|
1,550,659 |
|
|
|
1,340,302 |
|
| U.S. federal net operating loss carryforwards |
|
|
4,671,789 |
|
|
|
3,857,973 |
|
| Switzerland net operating loss carryforwards |
|
|
72,614 |
|
|
|
23,510 |
|
| IPR&D |
|
|
7,020,109 |
|
|
|
6,454,240 |
|
| Share-based payments |
|
|
1,961,112 |
|
|
|
2,065,735 |
|
| Enhanced research and development tax credits |
|
|
1,375,136 |
|
|
|
1,219,815 |
|
| Germany net operating loss carryforwards |
|
|
636,378 |
|
|
|
545,852 |
|
| U.S. state net operating loss carryforwards |
|
|
1,408,866 |
|
|
|
1,160,983 |
|
| Transaction costs |
|
|
122,892 |
|
|
|
142,013 |
|
| Accrued expenses |
|
|
91,118 |
|
|
|
72,503 |
|
| Depreciation |
|
|
– |
|
|
|
5,070 |
|
| Lease liability |
|
|
17,082 |
|
|
|
5,475 |
|
| Total deferred tax assets before valuation allowance |
|
|
29,661,323 |
|
|
|
25,878,322 |
|
| Valuation allowance for deferred tax assets |
|
|
(29,644,241 |
) |
|
|
(25,872,847 |
) |
| Net deferred tax assets |
|
|
17,082 |
|
|
|
5,475 |
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Indefinite-lived intangible asset |
|
|
– |
|
|
|
(2,918,518 |
) |
| Right of use asset – leases |
|
|
(17,082 |
) |
|
|
(5,475 |
) |
| Total deferred tax liabilities |
|
|
(17,082 |
) |
|
|
(2,923,993 |
) |
| Net deferred liability |
|
$ |
– |
|
|
$ |
(2,918,518 |
) |
|