Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

Income taxes are based on the following book income (loss) before income tax expense:


	Year Ended December 31,
	2019		2018
Domestic operations	$	(103,109)	$	(146,247)
Foreign operations	(6,944)		39,589
Loss before provision for income taxes	$	(110,053)	$	(106,658)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense (benefit) at the US federal statutory income tax rate and the income tax provision in the financial statements is as follows:


	Year Ended December 31,
	2019		2018
Income tax expense at statutory rate	21.0	%	21.0	%
Permanent items	(0.8)		0.5
Foreign rate differential	—		(0.8)
Impact of foreign operations	—		(7.2)
State taxes, net of federal benefit	3.0		3.9
Tax rate changes	—		(0.6)
Foreign exchange and other	0.7		(0.6)
Change in valuation allowance	(23.9)		(16.2)
Effective income tax rate	0.0	%	0.0	%

Schedule of Deferred Tax Assets and Liabilities

The principal components of the Company’s deferred tax assets and liabilities are as follows:


	Year Ended December 31,
	2019		2018
Deferred tax assets:
Accrued expenses and other	$	4,349	$	1,674
Prepaid licensing arrangement	11,154		11,562
Interest expense	4,469		1,267
Stock compensation	5,468		3,493
Research and development credits	2,485		2,485
Net operating losses	51,644		32,548
Total deferred tax assets	79,569		53,029
Deferred tax liabilities:
Fixed assets, including leases	(630)		(409)
Total deferred tax liabilities:	(630)		(409)
Less: Valuation allowance	(78,939)		(52,620)
Total net deferred tax assets (liabilities)	$	—	$	—