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INCOME TAX (CREDIT)/EXPENSE (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Creditexpense Schedule Of Statutory Tax Rate  
Schedule of Charge for Tax
The charge for tax based on the profit comprises:
 
 
  
December 31, 2018
US$‘000
    
December 31, 2017
US$‘000
    
December 31, 2016
US$‘000
  
Current tax (credit)/expense
                  
Irish Corporation tax
    
(258
)
    
(51
)
    
(240
)
Foreign taxes (a)
    
195
      
358
      
222
  
Adjustment in respect of prior years
    
(56
)
    
150
      
(271
)
 
                        
Total current tax (credit)/expense
    
(119
)
    
457
      
(289
)
 
                        
Deferred tax credit (b)
                        
Origination and reversal of temporary differences (see Note 14)
    
(2,031
)
    
(5,969
)
    
(2,872
)
Origination and reversal of net operating losses (see Note 14)
    
1,625
      
4,298
      
(396
)
 
                        
Total deferred tax credit
    
(406
)
    
(1,671
)
    
(3,268
)
 
                        
Total income tax credit on continuing operations in statement of operations
    
(525
)
    
(1,214
)
    
(3,557
)
 
                        
Tax (credit)/charge on discontinued operations (see Note 10)
    
(590
)
    
323
      
(4,887
)
 
                        
Total tax credit
    
(1,115
)
    
(891
)
    
(8,444
)
 
(a)
In 2018, the foreign taxes relate primarily to Canada.
(b)
In 2018, there was a deferred tax charge of US$369,000 (2017: credit of US$170,000; 2016: credit of US$1,804,000) recognised in respect of Ireland and a deferred tax credit of US$775,000 (2017: credit of US$1,501,000; 2016: credit of US$1,464,000) recognised in respect of overseas tax jurisdictions.
 
Effective tax rate
  
December 31, 2018
US$‘000
    
December 31, 2017
US$‘000
    
December 31, 2016
US$‘000
  
Loss before taxation
    
(23,183
)
    
(39,875
)
    
(42,140
)
As a percentage of loss before tax:
                        
Current tax
    
(0.51
)%
    
1.14
%
    
(0.69
)%
Total (current and deferred)
    
(2.26
)%
    
(3.05
)%
    
(8.44
)%
 
Schedule of Overseas Tax Jurisdictions
Effective tax rate
  
December 31, 2018
US$‘000
    
December 31, 2017
US$‘000
    
December 31, 2016
US$‘000
  
Loss before taxation
    
(23,183
)
    
(39,875
)
    
(42,140
)
As a percentage of loss before tax:
                        
Current tax
    
(0.51
)%
    
1.14
%
    
(0.69
)%
Total (current and deferred)
    
(2.26
)%
    
(3.05
)%
    
(8.44
)%
Schedule of Statutory Tax Rate
The following table reconciles the applicable Republic of Ireland statutory tax rate to the effective total tax rate for the Group:
 
 
  
December 31, 2018
    
December 31, 2017
    
December 31, 2016
  
Irish corporation tax
    
(12.5
)%
    
(12.5
)%
    
(12.5
)%
Effect of current year net operating losses and temporary differences for which no deferred tax asset was recognised (a)
    
15.76
)%
    
12.05
%
    
6.22
%
Effect of tax rates on overseas earnings
    
(6.10
)%
    
(2.09
)%
    
(1.39
)%
Effect of Irish income taxable at higher tax rate
    
0.05
%
    
-
      
0.05
%
Adjustments in respect of prior years
    
0.94
%
    
0.38
%
    
(0.64
)%
Effect of changes in US tax code (b)
    
-
      
(1.89
)%
    
-
  
R&D tax credits
    
(1.70
)%
    
(0.17
)%
    
(0.65
)%
Other items (c)
    
1.29
%
    
1.17
%
    
0.47
%
 
                        
Effective tax rate
    
(2.26
)%
    
(3.05
)%
    
(8.44
)%
 
(a)
The effect of current year net operating losses and temporary differences for which no deferred tax asset was recognised is analyzed further in the table below (see also Note 14). No deferred tax asset was recognised because there was no reversing deferred tax liability in the same jurisdiction reversing in the same period and no future taxable income in the same jurisdiction.

 (b)
In 2017, a number of changes were made to the USA tax code, the most significant of which was the reduction in the federal corporation tax rate to 21%. This resulted in a once-off tax credit in 2017 of US$753,000 arising from the reduction in deferred tax balances due to the tax rate change, partially offset by the effect of mandatory deemed repatriation of certain deferred foreign earnings. The other changes to the USA tax code did not have a material impact on the Group.

(c)
Other items comprise items not chargeable to tax/expenses not deductible for tax. In 2018, other items mainly comprise the movement in the exchangeable notes’ embedded derivatives value and the accretion of notional interest on the Loan Note’s host contract, both of which are exempt from deferred taxation recognition under IAS 12, Income Taxes.
Schedule of Unrecognised Deferred Tax Assets
Unrecognised deferred tax assets – continuing operations
  
Effect in
2018
US$’000
    
Percentage
effect in
2018
    
Effect in
2017
US$’000
    
Percentage
effect in
2017
  
Increase in net operating losses arising in US
    
2,174
      
9.38
%
    
-
      
-
  
     Temporary differences arising in US
    
19
      
0.08
%
    
68
      
0.17
%
     Decrease in net operating losses arising in Brazil
    
(20
)
    
(0.09
)%
    
(714
)
    
(1.79
)%
Increase in net operating losses arising in Ireland
    
1,482
      
6.39
%
    
5,452
      
13.67
%
 
                                
 
    
3,655
      
15.76
%
    
4,806
      
12.05
%
Schedule of (Loss)/Profit Before Taxes
The distribution of loss before taxes by geographical area was as follows:
 
 
  
December 31, 2018
US$‘000
    
December 31, 2017
US$‘000
    
December 31, 2016
US$‘000
  
Rest of World – Ireland
    
(9,590
)
    
(35,821
)
    
(23,787
)
Rest of World – Other
    
4,809
      
4,809
      
5,241
  
Americas
    
(18,402
)
    
(8,863
)
    
(23,594
)
 
                        
 
    
(23,183
)
    
(39,875
)
    
(42,140
)
 
Schedule of Unutilised Net Operating Losses
At December 31, 2018, the Group had unutilised net operating losses as follows:
 
 
  
December 31, 2018
US$‘000
    
December 31, 2017
US$‘000
    
December 31, 2016
US$‘000
  
USA
    
2,382
      
7,737
      
8,896
  
Ireland
    
60,629
      
57,206
      
40,652
  
Brazil
    
4,001
      
4,060
      
6,159
  
 
                        
 
    
67,012
      
69,003
      
55,707
  
 
Schedule of Unused Tax Losses and Unused Tax Credits
At December 31, 2018, the Group had unrecognised deferred tax assets in respect of unused tax losses and unused tax credits as follows:
 
 
  
December 31, 2018
US$‘000
    
December 31, 2017
US$‘000
    
December 31, 2016
US$‘000
  
Ireland – unused tax losses
    
9,953
      
8,471
      
3,019
  
US – unused tax credits
    
2,538
      
345
      
277
  
Brazil – unused tax losses
    
1,360
      
1,380
      
2,094
  
 
                        
Unrecognised deferred tax asset
    
13,851
      
10,196
      
5,390