	Year Ended December 31,
	2020			2019
U.S. operations	$	(50,735,735	)	$	(18,562,738	)
Non-U.S. operations		(3,725,766	)		(2,015,893	)
Net loss before income tax benefit	$	(54,461,501	)	$	(20,578,631	)

The components of the income tax benefit are as follows:

	Year Ended December 31,
	2020		2019
U.S. federal
Current	$	4,706,092	$	—
Deferred		—		45,465
U.S. state and local
Current		710,932		—
Deferred		—		13,035
Income tax benefit	$	5,417,024	$	58,500

Reconciliation between the effect of applying the federal statutory rate and the effective income tax rate used to calculate the Company’s income tax benefit is as follows:

	Year Ended December 31,
	2020			2019
Federal statutory rate		21.00	%		21.00	%
State income taxes, net of federal benefit		4.10			3.12
Research and development tax credit		(0.84	)		(1.51	)
Acquired in process research and development		(6.27	)		(7.03	)
CARES Act U.S. federal and state carryback claim		1.81			—
Other		0.29			(2.81	)
Change in valuation allowance		(10.14	)		(12.49	)
Effective tax rate		9.95	%		0.28	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income and for tax carryforwards. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2020			2019
Deferred tax assets:
Net operating losses	$	18,978,410		$	13,493,760
Accrued expenses		495,301			208,604
Amortization		785,523			947,115
Stock compensation		584,507			622,789
Lease liability		502,151			479,940
Other		106,197			117,713
Valuation allowance		(18,671,086	)		(13,149,779	)
Total deferred tax assets		2,781,003			2,720,142
Deferred tax liabilities:
IPR&D assets		(2,386,667	)		(2,373,304	)
Right of use asset		(248,710	)		(192,160	)
Depreciation		(145,626	)		(154,678	)
Total deferred tax liabilities		(2,781,003	)		(2,720,142	)
Total deferred tax liabilities net	$	—		$	—

The Company assesses the need for a valuation allowance against our deferred tax assets and considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. This determination requires significant judgment, including assumptions about future taxable income that are based on historical and projected information. The increase in the valuation allowance during the year ended December 31, 2020 primarily relates to increases for current year losses in both the U.S. and foreign locations which the Company concluded needed a full valuation allowance, but was partially offset by the utilization of a portion of the U.S. federal and state losses to offset the Company’s 2016 tax liability, due to provisions of the CARES Act enacted in 2020. The Company has recorded a valuation allowance against its gross U.S. deferred tax assets it believes are not more likely than not realizable and the net non-U.S. deferred tax assets, although, a portion of the current year loss was benefited for an additional U.S. Federal carryback from the CARES Act. Deferred tax liabilities, consist primarily of indefinite life IPR&D assets located in a foreign subsidiary, which will be applied in the future to offset against net operating losses (“NOLs”) that have an unlimited life.

The Company has U.S. federal and state net operating loss carryforwards of approximately $45.7 million as of December 31, 2020. Of this amount, $6.6 million has a 20-year carry forward period that will expire at various dates beginning in 2021. Under current law, the remaining amount of $39.1 million has an unlimited life. The Company also has foreign net operating loss carryforward of approximately $30.8 million which carryforward indefinitely.

Under Section 382 of the Internal Revenue Code of 1986, as amended, substantial changes in the Company’s ownership may limit the amount of NOLs that can be utilized annually in the future to offset its U.S. federal and state taxable income. Specifically, this limitation may arise in the event of a cumulative change in ownership of the Company of more than 50% within any three-year period. The amount of the annual limitation is determined based on the value of the Company immediately before the ownership change. The Company has reduced the NOL and related valuation allowance in historical periods and while the Company is in the process of completing its evaluation of whether an equity shift occurred in 2020, it is not expected to require an adjustment to the net NOLs and related valuation allowance. Subsequent ownership changes may further affect the limitation in future years. The Company continues to evaluate its losses for these provisions.

Significant judgment is required in evaluating tax positions and determining the provision for income taxes. The Company establishes liabilities for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes may be due. These liabilities are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable. The Company adjusts these liabilities in light of changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of changes to these liabilities.

The amount of unrecognized tax benefits was $0.7 million and $0.0 million as of December 31, 2020 and 2019, respectively. Any changes in the next twelve months are not anticipated to have a significant impact on the results of operations, financial position or cash flows of the Company. All of the Company’s uncertain tax positions, if recognized, would affect its income tax expense.

The Company has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2020 and 2019, potential interest and penalties on unrecognized tax benefits were not significant.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding related interest and penalties:

	Year Ended December 31,
	2020		2019
Beginning of year	$	—	$	—
Positions taken in the prior year		710,783		—
End of year	$	710,783	$	—

The Company files income tax returns in the United States, various U.S. states, U.K., and Australia. The Company is still open to examination by the applicable taxing authorities from 2009 forward, although tax attributes that were generated prior to 2009 may still be adjusted upon examination by federal, state, foreign, or local tax authorities if they either have been or will be used in a future period.