Income taxes

6 Months Ended

Jun. 30, 2020

Income taxes

Income taxes

9 Income taxes

Deferred tax assets and deferred tax liabilities are recognized based on the expected future tax consequences of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities, using current statutory rates. A valuation allowance is recorded against deferred tax assets if it is more likely than not that some or all the deferred tax assets will not be realized. The Company reassessed the need for a full valuation allowance in conjunction with entering into the CSL Behring Agreement. Closing of the CSL Behring Agreement is contingent on the successful completion of reviews under the antitrust laws in the United States, Australia, and the United Kingdom, which has not occurred to date. Closing of the transaction is dependent on the timing, extent and result of the regulatory review process. In its assessment of whether or not it was more likely than not that the Company’s deferred tax assets will be realized, the Company considered all relevant facts and circumstances, including in particular similar regulatory reviews as well as the three-year cumulative losses reported by the Company. The Company concluded that it should continue to record a full valuation allowance as of June 30, 2020. As of December 31, 2019, the Company’s valuation allowance amounted to $109.9 million.