10. Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of loss before income taxes |
| |
|
Year
ended December 31, |
|
| |
|
2015 |
|
|
2014 |
|
| Domestic (U.S.) |
|
$ |
(7,724,418 |
) |
|
$ |
(4,040,654 |
) |
| Foreign (U.K.) |
|
|
(4,767,363 |
) |
|
|
(10,003,427 |
) |
| Foreign (Germany) |
|
|
(15,690 |
) |
|
|
(263,023 |
) |
| Loss before income taxes |
|
$ |
(12,507,471 |
) |
|
$ |
(14,307,104 |
) |
|
| Reconciliation of income tax provision (benefit) |
| |
|
Year
ended December 31, |
|
| |
|
2015 |
|
|
2014 |
|
| Federal |
|
$ |
(4,252,540 |
) |
|
$ |
(4,860,256 |
) |
| State |
|
|
(276,601 |
) |
|
|
(145,209 |
) |
| Increase in tax losses not recognized |
|
|
2,238,879 |
|
|
|
4,949,805 |
|
| Permanent differences, net |
|
|
800,891 |
|
|
|
(1,529,190 |
) |
| Mark to market |
|
|
722,540 |
|
|
|
– |
|
| Foreign rate differential |
|
|
502,357 |
|
|
|
1,184,770 |
|
| Share-based payments, net |
|
|
308,888 |
|
|
|
505,035 |
|
| Other |
|
|
– |
|
|
|
7,273 |
|
| Enhanced research and development tax credits |
|
|
(44,414 |
) |
|
|
(112,228 |
) |
| Net provision (benefit) for income taxes |
|
$ |
– |
|
|
$ |
– |
|
|
| Schedule of deferred tax assets and liabilities |
| |
|
Year
ended December 31, |
|
| |
|
2015 |
|
|
2014 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| U.K. net operating
loss carryforwards |
|
$ |
9,402,398 |
|
|
$ |
9,198,798 |
|
| U.K. capital loss carryforwards |
|
|
1,775,932 |
|
|
|
1,874,254 |
|
| U.S. federal net operating
loss carryforwards |
|
|
1,659,050 |
|
|
|
923,816 |
|
| Share-based payments |
|
|
1,313,226 |
|
|
|
52,320 |
|
| Enhanced research and development
tax credits |
|
|
852,272 |
|
|
|
786,342 |
|
| Germany net operating loss
carryforwards |
|
|
401,906 |
|
|
|
393,638 |
|
| U.S. state net operating
loss carryforwards |
|
|
422,622 |
|
|
|
233,825 |
|
| Accrued expenses |
|
|
44,557 |
|
|
|
157,329 |
|
| Depreciation |
|
|
25,823 |
|
|
|
37,703 |
|
| Other |
|
|
4,998 |
|
|
|
115,384 |
|
| Total deferred tax assets
before valuation allowance |
|
|
15,902,784 |
|
|
|
13,773,409 |
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Indefinite-lived intangible
asset |
|
|
(2,918,518 |
) |
|
|
(3,080,096 |
) |
| Debt discount |
|
|
(578,346 |
) |
|
|
– |
|
| Total deferred tax liabilities |
|
|
(3,496,864 |
) |
|
|
(3,080,096 |
) |
| Less valuation allowance |
|
|
(15,324,438 |
) |
|
|
(13,773,409 |
) |
| Total net deferred tax liability |
|
$ |
(2,918,518 |
) |
|
$ |
(3,080,096 |
) |
|
| Uncertain tax benefits |
| |
|
Year
ended December 31, |
|
| |
|
2015 |
|
|
2014 |
|
| Uncertain tax benefits as of January 1 |
|
$ |
– |
|
|
$ |
185,961 |
|
| Gross adjustments in tax positions |
|
|
– |
|
|
|
(185,961 |
) |
| Uncertain tax positions as of December 31 |
|
$ |
– |
|
|
$ |
– |
|
|