Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.20.4
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)

%