Income taxes (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
|---|
| Income taxes |
|
| Schedule of loss before income taxes |
Loss before income taxes is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2018 |
U.S. |
|
$ |
(1,359) |
|
$ |
(494) |
|
$ |
(1,650) |
U.K. |
|
|
(128,571) |
|
|
(136,429) |
|
|
(93,367) |
Loss before income taxes |
|
$ |
(129,930) |
|
$ |
(136,923) |
|
$ |
(95,017) |
|
| Schedule of components of income tax expense (benefit) |
The components of income tax expense are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2018 |
United States: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
162 |
|
$ |
242 |
|
$ |
400 |
State and local |
|
|
— |
|
|
— |
|
|
97 |
U.K. |
|
|
— |
|
|
— |
|
|
— |
Total current tax expense |
|
|
162 |
|
|
242 |
|
|
497 |
|
|
|
|
|
|
|
|
|
|
United States: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
— |
|
|
— |
|
|
— |
State and local |
|
|
— |
|
|
— |
|
|
— |
U.K. |
|
|
— |
|
|
— |
|
|
— |
Total deferred tax expense |
|
|
— |
|
|
— |
|
|
— |
Total income tax expense |
|
$ |
162 |
|
$ |
242 |
|
$ |
497 |
|
| Schedule of deferred tax assets and liabilities |
As of December 31, 2020 and 2019 the tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities were as follows (in thousands):
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
Deferred tax liabilities |
|
|
|
|
|
|
Property, plant and equipment |
|
$ |
(796) |
|
$ |
(1,251) |
Right-of-use assets |
|
|
(2,009) |
|
|
(2,364) |
Other |
|
|
(156) |
|
|
(79) |
Total |
|
|
(2,961) |
|
|
(3,694) |
|
|
|
|
|
|
|
Deferred tax assets |
|
|
|
|
|
|
Share-based compensation expense |
|
|
9,292 |
|
|
9,941 |
Intangibles |
|
|
1,745 |
|
|
1,413 |
Operating lease liabilities |
|
|
2,343 |
|
|
2,550 |
Net operating loss and expenditure credit carryforwards |
|
|
71,742 |
|
|
48,837 |
Other |
|
|
237 |
|
|
125 |
Total |
|
|
85,359 |
|
|
62,866 |
Valuation allowance |
|
|
(82,398) |
|
|
(59,172) |
|
|
|
2,961 |
|
|
3,694 |
Net deferred tax asset (liability) |
|
$ |
— |
|
$ |
— |
|
| Schedule of movements in deferred tax valuation allowance |
The movements in the deferred tax valuation allowance for the year ended December 31, 2020 and 2019 are as follows (thousands):
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
Valuation allowance at January 1, |
|
$ |
59,172 |
|
$ |
40,776 |
Increase in valuation allowance |
|
|
20,329 |
|
|
16,961 |
Foreign exchange translation adjustments |
|
|
2,897 |
|
|
1,435 |
|
|
$ |
82,398 |
|
$ |
59,172 |
|
| Schedule of the effective tax rate reconciliation |
Reconciliation of the U.K. statutory income tax rate to the Company's effective tax rate is as follows (in percentages):
|
|
|
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
Year ended |
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2020 |
|
2019 |
|
2018 |
|
U.K. tax rate |
|
19.0 |
% |
19.0 |
% |
19.0 |
% |
Reimbursable tax credits within Research and development expense |
|
2.8 |
% |
2.8 |
% |
3.5 |
% |
R&D expenditures surrendered for R&D tax credit refund |
|
(8.4) |
% |
(7.7) |
% |
(10.0) |
% |
Expenses not deductible |
|
(1.4) |
% |
— |
% |
(0.2) |
% |
Permanent differences for unrealized foreign exchange on intercompany loans of a long-term investment nature |
|
— |
% |
(1.5) |
% |
— |
% |
Change in valuation allowances |
|
(17.8) |
% |
(12.4) |
% |
(17.5) |
% |
Change in tax rates |
|
4.1 |
% |
— |
% |
— |
% |
Difference in tax rates |
|
— |
% |
(1.2) |
% |
(1.3) |
% |
R&D tax credits generated |
|
1.8 |
% |
1.5 |
% |
5.1 |
% |
Other |
|
(0.1) |
% |
(0.7) |
% |
1.0 |
% |
Effective income tax rate |
|
(0.0) |
% |
(0.2) |
% |
(0.5) |
% |
|