Tax

12 Months Ended

Dec. 31, 2023

Tax [Abstract]

Tax

13. Tax

The reconciliation of the statutory rate to the effective tax rate is as follows:

Reconciliation of effective tax rate:	2023			2022
Tax computed on the loss before tax at a tax rate of 21.0% for the years ended December 31, 2023 and 2022	$	(2,482	)	$	(3,692	)
Foreign rate differential		(73	)		(260	)
Non-deductible expenses, other		—			1
Tax value of derivative warrants		(1,187	)		(3,597	)
Special tax deduction on research and development expenses		(559	)		(754	)
Loss offset to research and development incentive		798			609
Other adjustments		17			(1	)
Adjustment of tax concerning previous years		45			(871	)
Change in valuation allowance		3,524			7,044
Effective tax rate	$	83		$	(1,521	)

The components of net loss before income taxes were as follows:

	Year ended December 31,
	2023			2022
Denmark	$	(6,234	)	$	(25,336	)
Sweden		—			(3	)
United States		(5,584	)		7,760
	$	(11,818	)	$	(17,579	)

The components of the provision for income taxes from operations were as follows: 

	Year ended December 31,
	2023		2022
Current:
Denmark	$	—	$	—
Sweden		—		—
United States		—		—
Total		—		—
Deferred:
Denmark		83		(1,521	)
Sweden		—		—
United States		—		—
Total		83		(1,521	)
	$	83	$	(1,521	)

Deferred tax comprises:	2023			2022
Property, plant and equipment	$	(25	)	$	20
Intangible assets		(1,405	)		(1,160	)
Stock compensation		790			1,152
Other accruals		16			(44	)
Net operating losses		16,952			12,981
Total deferred tax		16,328			12,949
Valuation allowance		(16,774	)		(13,298	)
Net deferred tax liabilities	$	(446	)	$	(349	)

Tax on profit/loss for the year:	2023		2022
Current income tax (benefit) expense	$	—	$	—
Change in deferred tax		83		(1,521	)
Adjustment of tax concerning previous years		—		—
Tax (benefit) expense	$	83	$	(1,521	)

Tax losses carried forward of approximately $78.1 million can be carried forward indefinitely. Deferred tax has been provided corresponding to the statutory tax rate applied.

The statute of limitations for re-assessment of tax returns in Denmark is three years and five years for transfer pricing. As of December 31, 2023, the tax years that remain subject to examination by the major tax jurisdictions, under the statute of limitations, are from the year ended December 31, 2018, forward. The Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities.