v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

18. Income taxes

The Group operates in the U.K. and is subject to income taxes in that jurisdiction. The U.K. tax rate applied for 2025 was 25% (25% for 2024). U.K. deferred tax assets and liabilities have been measured at a rate of 25%. The entire tax expense relates to current tax as shown below. No deferred tax was recognized in the year.

Income (loss) from continuing operations before income taxes:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

$000s

 

(Loss)/Income from continuing operations:

 

 

 

UK

 

 

(89,679

)

Foreign

 

 

1,078

 

Total

 

 

(88,601

)

 

The significant components of income tax expense attributable to income from continuing operations for the years ended December 31, 2025 and December 31, 2024 are as follows:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

$000s

 

 

$000s

 

Current Tax Expense

 

 

 

 

 

 

Current Year

 

 

11

 

 

 

845

 

Changes in estimate related to prior years

 

 

-

 

 

 

-

 

Total current tax

 

 

11

 

 

 

845

 

Deferred Tax Expense

 

 

 

 

 

 

Origination and reversal of temporary differences

 

 

-

 

 

 

-

 

Recognition of previously unrecognized tax losses

 

 

-

 

 

 

-

 

Recognition of previously unrecognized tax losses (derecognition of
   previously recognized) deductible temporary differences

 

 

-

 

 

 

-

 

Taxation

 

 

11

 

 

 

845

 

 

Income tax expense (benefit) attributable to income (loss) from continuing operations for the year ended December 31, 2025 differed from the amounts computed by applying the statutory UK federal income tax rate of 25 percent to pretax income (loss) from continuing operations as a result of the following:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

%

 

 

 

$000s

 

 

 

 

UK Statutory Income Tax (Benefit) at 25%

 

 

(22,150

)

 

 

25.00

%

Domestic Federal

 

 

 

 

 

 

Tax credits

 

 

(1,948

)

 

 

2.20

%

Changes in valuation allowance

 

 

14,857

 

 

 

-16.77

%

Non-taxable and non-deductible items

 

 

 

 

 

 

Stock Compensation

 

 

1,726

 

 

 

-1.95

%

Research and Development costs

 

 

7,881

 

 

 

-8.89

%

Other reconciling items

 

 

(108

)

 

 

0.12

%

Foreign tax effects

 

 

 

 

 

 

Other foreign jurisdictions

 

 

(269

)

 

 

0.30

%

Total

 

 

(11

)

 

 

0.01

%

 

Reconciliation of the income tax credit at standard rate of U.K. corporation tax to the current tax credit for the year ended December 31, 2024 is as follows:

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

 

$000s

 

Loss before tax

 

 

(44,464

)

 

 

 

 

UK Statutory Income Tax (Benefit) at 25%

 

 

11,116

 

Income not taxable

 

 

3,356

 

Foreign Tax Rate Differential

 

 

308

 

Change in valuation allowance

 

 

(15,423

)

Effect of overseas taxes

 

 

(202

)

Total

 

 

(845

)

 

A schedule of income taxes paid by jurisdiction is as follows:

 

 

2025

 

 

$000s

 

UK Federal

 

 

—

 

Foreign

 

 

 

Germany

 

 

637

 

Other

 

 

—

 

Total

 

 

637

 

 

 

The Group did not have any deferred tax liabilities as at December 31, 2025 and 2024. Components of the Group’s deferred tax assets as at December 31, 2025 and 2024 are as follows:

 

 

Year ended December 31,

 

 

Gross

 

 

Gross

 

 

2025

 

 

2024

 

 

$000s

 

 

$000s

 

Deferred tax assets:

 

 

 

 

 

 

Trading Losses 1

 

 

73,529

 

 

 

55,316

 

Share-based payments

 

 

4,233

 

 

 

3,663

 

Capital losses

 

 

2,651

 

 

 

2,467

 

Gross deferred tax asset

 

 

80,413

 

 

 

61,446

 

Valuation allowance

 

 

(80,413

)

 

 

(61,446

)

Total deferred tax, net

 

 

-

 

 

 

-

 

 

(1)
Included in trading losses is $8.2 million of accumulated tax losses as of December 31, 2025 ($7.4 million as of December 31, 2024) related to its operations in Germany for corporate income taxes and $7.1 million of accumulated losses related to trade taxes in its German entity ($6.5 million as of December 31, 2024).

Movements in deferred tax valuation allowance:

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

Valuation allowance at January 1

 

 

61,446

 

 

 

63,739

 

Increase/(decrease) in valuation allowance

 

 

18,967

 

 

 

(2,293

)

Valuation allowance at December 31

 

 

80,413

 

 

 

61,446

 

 

Management has reviewed cumulative tax losses and projections of future taxable losses and determined that it is not more likely than not that they will be realized. Accordingly, valuation allowances have been provided over deferred tax assets.

Since the Group does not have an establishment or place of business in China, the Group is subject to withholding tax on gross income from dividends, interest, lease of property, royalties, and other China-source passive income. In 2021 the Group entered into a collaboration agreement with Hansoh, a biopharmaceutical company in China. In 2024 the Group received a milestone payment of $2.0 million, which required withholding tax of $0.2 million. We did not receive a milestone in 2025.

During the year, the Group had not yet received the research and development tax credit related to the prior year. The Group has recognized $7.5 million in respect of the current year for unfunded projects that are permissible to claim under the SME scheme (2024: $13.2). In addition, in 2024 we have also recognized $0.3 million related to the RDEC scheme which is not applicable for 2025.