Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of net loss before provision for income taxes

Net loss before the provision for income taxes for the years ended December 31, 2019 and 2018, consisted of the following (in thousands):

	Year Ended
	December 31,
	2019		2018
United Kingdom	$	32,725	$	28,123
United States		10,448		4,357
	$	43,173	$	32,480

Schedule of provision for income taxes

The provision for income taxes for the years ended December 31, 2019 and 2018 consisted of the following (in thousands):

	Year Ended
	December 31,
	2019		2018
Current
Federal	$	—	$	—
State		17		—
Foreign		660		472
Total current		677		472
Deferred
Federal		—		—
State		—		—
Foreign		—		—
Total deferred		—		—
Total income taxes	$	677	$	472

Schedule of reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate

	Year Ended
	December 31,
	2019		2018
Income tax benefit computed at UK statutory tax rate	21.0	%	21.0	%
State taxes, net of federal benefit	6.9		4.6
Foreign rate differential	(3.0)		(3.4)
Disregarded entity	15.9		12.0
Research and development tax credits	1.4		1.4
Permanent difference	0.1		(0.5)
Valuation allowances	(42.4)		(35.1)
Foreign withholding tax	(1.5)		(1.4)
Effective income tax rate	(1.6)	%	(1.4)	%

Schedule of net deferred tax assets

Net deferred tax assets consisted of the following (in thousands):

	As of December 31,
	2019		2018
Deferred tax assets:
Net operating loss carryforwards	$	36,151	$	20,051
Tax credit carryforwards		3,507		2,321
Accrued expenses and other		2,037		1,097
Total deferred tax assets		41,695		23,469
Deferred tax liabilities:
ASC 842 right-of-use asset		(442)		—
Depreciation and amortization		—		(10)
Total deferred tax liabilities		(442)		(10)
Valuation allowance		(41,253)		(23,459)
Net deferred tax assets	$	—	$	—

Schedule of changes in valuation allowance for deferred tax assets

Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2019 and 2018 related primarily to the increases in NOLs and research and development tax credit carryforwards and were as follows (in thousands):

		Year Ended
		December 31,
	2019		2018
Valuation allowance at beginning of year	$	(23,459)	$	(11,724)
Increases recorded to income tax provision		(17,794)		(11,735)
Valuation allowance at end of year	$	(41,253)	$	(23,459)