| Components of loss before income taxes |
| |
|
Year ended December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| Domestic (U.S.) |
|
$ |
(4,317,585 |
) |
|
$ |
(3,824,673 |
) |
| Foreign (U.K.) |
|
|
(2,302,131 |
) |
|
|
(3,379,268 |
) |
| Foreign (Germany) |
|
|
(3,389,473 |
) |
|
|
(96,517 |
) |
| Foreign (Switzerland) |
|
|
(2,765,836 |
) |
|
|
– |
|
| Loss before income taxes |
|
$ |
(12,775,025 |
) |
|
$ |
(7,300,458 |
) |
|
| Reconciliation of income tax provision (benefit) |
| |
|
Year ended December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| Federal |
|
$ |
(2,682,755 |
) |
|
$ |
(1,533,096 |
) |
| State |
|
|
(284,724 |
) |
|
|
(238,952 |
) |
| Increase in tax losses not recognized |
|
|
1,878,033 |
|
|
|
1,695,482 |
|
| Permanent differences, net |
|
|
1,323 |
|
|
|
40,015 |
|
| Goodwill impairment |
|
|
689,510 |
|
|
|
– |
|
| Foreign rate differential |
|
|
381,190 |
|
|
|
124,294 |
|
| Share-based payments, net |
|
|
11,084 |
|
|
|
20,441 |
|
| Enhanced research and development tax credits |
|
|
(54,148 |
) |
|
|
(108,184 |
) |
| Other items |
|
|
60,487 |
|
|
|
– |
|
| Net provision (benefit) for income taxes |
|
$ |
– |
|
|
$ |
– |
|
|
| Schedule of deferred tax assets and liabilities |
| |
|
Year ended December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| U.K. net operating loss carryforwards |
|
$ |
8,984,851 |
|
|
$ |
8,039,343 |
|
| U.K. capital loss carryforwards |
|
|
1,340,302 |
|
|
|
1,298,303 |
|
| U.S. federal net operating loss carryforwards |
|
|
3,857,973 |
|
|
|
3,184,691 |
|
| Switzerland net operating loss carryforwards |
|
|
23,510 |
|
|
|
– |
|
| IPR&D |
|
|
6,454,240 |
|
|
|
6,108,078 |
|
| Share-based payments |
|
|
2,065,735 |
|
|
|
1,859,357 |
|
| Enhanced research and development tax credits |
|
|
1,219,815 |
|
|
|
1,109,026 |
|
| Germany net operating loss carryforwards |
|
|
545,852 |
|
|
|
524,093 |
|
| U.S. state net operating loss carryforwards |
|
|
1,160,983 |
|
|
|
1,298,745 |
|
| Transaction costs |
|
|
142,013 |
|
|
|
– |
|
| Accrued expenses |
|
|
72,503 |
|
|
|
59,979 |
|
| Depreciation |
|
|
5,070 |
|
|
|
3,283 |
|
| Lease liability |
|
|
5,475 |
|
|
|
– |
|
| Total deferred tax assets before valuation allowance |
|
|
25,878,322 |
|
|
|
23,484,898 |
|
| Valuation allowance for deferred tax assets |
|
|
(25,872,847 |
) |
|
|
(23,484,898 |
) |
| Net deferred tax assets |
|
|
5,475 |
|
|
|
– |
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Indefinite-lived intangible asset |
|
|
(2,918,518 |
) |
|
|
(2,918,518 |
) |
| Right of use asset – leases |
|
|
(5,475 |
) |
|
|
– |
|
| Total deferred tax liabilities |
|
|
(2,923,993 |
) |
|
|
(2,918,518 |
) |
| Net deferred liability |
|
$ |
(2,918,518 |
) |
|
$ |
(2,918,518 |
) |
|