Income taxes (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income taxes |
|
| Schedule of loss before income tax expenses |
Loss before income tax expense is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2022 |
U.S. |
|
$ |
(10,695) |
|
$ |
(9,597) |
|
$ |
(3,245) |
U.K. |
|
|
(56,543) |
|
|
(102,938) |
|
|
(159,714) |
Loss before income tax expense |
|
$ |
(67,238) |
|
$ |
(112,535) |
|
$ |
(162,959) |
|
| Schedule of components of income tax expense |
The components of income tax expense are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2022 |
United States: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
3,509 |
|
$ |
1,301 |
|
$ |
2,492 |
State and local |
|
|
67 |
|
|
9 |
|
|
5 |
U.K. |
|
|
— |
|
|
26 |
|
|
— |
Total current tax expense |
|
|
3,576 |
|
|
1,336 |
|
|
2,497 |
|
|
|
|
|
|
|
|
|
|
United States: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
— |
|
|
— |
|
|
— |
State and local |
|
|
— |
|
|
— |
|
|
— |
U.K. |
|
|
— |
|
|
— |
|
|
— |
Total deferred tax expense |
|
|
— |
|
|
— |
|
|
— |
Total income tax expense |
|
$ |
3,576 |
|
$ |
1,336 |
|
$ |
2,497 |
|
| Schedule of deferred tax assets and liabilities |
As of December 31, 2024 and 2023 the tax effects of temporary differences and carry forwards that give rise to deferred tax assets and liabilities were as follows (in thousands):
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
Deferred tax liabilities |
|
|
|
|
|
|
Property, plant and equipment |
|
$ |
(1,010) |
|
$ |
(4,954) |
Operating lease right-of-use assets |
|
|
(1,964) |
|
|
(1,780) |
Other |
|
|
(637) |
|
|
(365) |
Total |
|
|
(3,611) |
|
|
(7,099) |
|
|
|
|
|
|
|
Deferred tax assets |
|
|
|
|
|
|
Share-based compensation expense |
|
|
15,773 |
|
|
15,039 |
Property, plant and equipment |
|
|
183 |
|
|
391 |
Intangible assets |
|
|
1,372 |
|
|
1,392 |
Operating lease liabilities |
|
|
2,658 |
|
|
2,556 |
Net operating loss and tax credit carryforwards |
|
|
248,582 |
|
|
241,337 |
Capitalized research and development expenditure |
|
|
41,805 |
|
|
37,699 |
Other |
|
|
2,726 |
|
|
3,605 |
Total |
|
|
313,099 |
|
|
302,019 |
Valuation allowance |
|
|
(309,488) |
|
|
(294,920) |
|
|
|
3,611 |
|
|
7,099 |
Net deferred tax asset/(liability) |
|
$ |
— |
|
$ |
— |
|
| Schedule of movements in deferred tax asset valuation allowance |
The movements in the deferred tax asset valuation allowance for the year ended December 31, 2024 and 2023 are as follows (thousands):
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
Valuation allowance at January 1, |
|
$ |
294,920 |
|
$ |
160,512 |
Valuation allowance for deferred tax assets acquired from TCR2 |
|
|
— |
|
|
114,294 |
Increase in valuation allowance through net loss |
|
|
14,321 |
|
|
21,076 |
Increase /(decrease ) in valuation allowance through other comprehensive loss |
|
|
2,454 |
|
|
(8,042) |
Foreign currency translation adjustments |
|
|
(2,207) |
|
|
7,080 |
Net change in the valuation allowance |
|
|
14,568 |
|
|
134,408 |
Valuation allowance at December 31, |
|
$ |
309,488 |
|
$ |
294,920 |
|
| Schedule of the effective tax rate reconciliation |
Reconciliation of the U.K. statutory income tax rate, the income tax rate of the country of domicile of the Company, to the Company's effective income tax rate is as follows (in percentages):
|
|
|
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
Year ended |
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2024 |
|
2023 |
|
2022 |
|
U.K. tax rate |
|
25.0 |
% |
23.5 |
% |
19.0 |
% |
Tax-exempt reimbursable tax credits included within pretax Research and development expense |
|
3.5 |
% |
2.5 |
% |
3.6 |
% |
Income not taxable |
|
0.5 |
% |
5.3 |
% |
— |
% |
Surrender of R&D expenditures for R&D tax credit refund |
|
(20.2) |
% |
(13.3) |
% |
(10.5) |
% |
Expenses not deductible |
|
(1.9) |
% |
(2.3) |
% |
(0.3) |
% |
Change in valuation allowances |
|
(21.3) |
% |
(18.9) |
% |
(18.8) |
% |
Difference in tax rates |
|
— |
% |
0.0 |
% |
5.5 |
% |
R&D tax credits generated |
|
4.5 |
% |
3.1 |
% |
2.1 |
% |
Other |
|
4.6 |
% |
(1.0) |
% |
(2.1) |
% |
Effective income tax rate |
|
(5.3) |
% |
(1.1) |
% |
(1.5) |
% |
|