Adaptimmune Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income taxes (Tables)

Income taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of loss before income tax expenses

Loss before income tax expense is as follows (in thousands):


	Year ended		Year ended		Year ended
	December 31,		December 31,		December 31,
	2024		2023		2022
U.S.	$	(10,695)	$	(9,597)	$	(3,245)
U.K.		(56,543)		(102,938)		(159,714)
Loss before income tax expense	$	(67,238)	$	(112,535)	$	(162,959)

Schedule of components of income tax expense

The components of income tax expense are as follows (in thousands):


	Year ended		Year ended		Year ended
	December 31,		December 31,		December 31,
	2024		2023		2022
United States:
Federal	$	3,509	$	1,301	$	2,492
State and local		67		9		5
U.K.		—		26		—
Total current tax expense		3,576		1,336		2,497

United States:
Federal		—		—		—
State and local		—		—		—
U.K.		—		—		—
Total deferred tax expense		—		—		—
Total income tax expense	$	3,576	$	1,336	$	2,497

Schedule of deferred tax assets and liabilities

As of December 31, 2024 and 2023 the tax effects of temporary differences and carry forwards that give rise to deferred tax assets and liabilities were as follows (in thousands):


	December 31,		December 31,
	2024		2023
Deferred tax liabilities
Property, plant and equipment	$	(1,010)	$	(4,954)
Operating lease right-of-use assets		(1,964)		(1,780)
Other		(637)		(365)
Total		(3,611)		(7,099)

Deferred tax assets
Share-based compensation expense		15,773		15,039
Property, plant and equipment		183		391
Intangible assets		1,372		1,392
Operating lease liabilities		2,658		2,556
Net operating loss and tax credit carryforwards		248,582		241,337
Capitalized research and development expenditure		41,805		37,699
Other		2,726		3,605
Total		313,099		302,019
Valuation allowance		(309,488)		(294,920)
		3,611		7,099
Net deferred tax asset/(liability)	$	—	$	—

Schedule of movements in deferred tax asset valuation allowance

The movements in the deferred tax asset valuation allowance for the year ended December 31, 2024 and 2023 are as follows (thousands):


	2024		2023
Valuation allowance at January 1,	$	294,920	$	160,512
Valuation allowance for deferred tax assets acquired from TCR²		—		114,294
Increase in valuation allowance through net loss		14,321		21,076
Increase /(decrease ) in valuation allowance through other comprehensive loss		2,454		(8,042)
Foreign currency translation adjustments		(2,207)		7,080
Net change in the valuation allowance		14,568		134,408
Valuation allowance at December 31,	$	309,488	$	294,920

Schedule of the effective tax rate reconciliation

Reconciliation of the U.K. statutory income tax rate, the income tax rate of the country of domicile of the Company, to the Company's effective income tax rate is as follows (in percentages):


	Year ended		Year ended		Year ended
	December 31,		December 31,		December 31,
	2024		2023		2022
U.K. tax rate	25.0	%	23.5	%	19.0	%
Tax-exempt reimbursable tax credits included within pretax Research and development expense	3.5	%	2.5	%	3.6	%
Income not taxable	0.5	%	5.3	%	—	%
Surrender of R&D expenditures for R&D tax credit refund	(20.2)	%	(13.3)	%	(10.5)	%
Expenses not deductible	(1.9)	%	(2.3)	%	(0.3)	%
Change in valuation allowances	(21.3)	%	(18.9)	%	(18.8)	%
Difference in tax rates	—	%	0.0	%	5.5	%
R&D tax credits generated	4.5	%	3.1	%	2.1	%
Other	4.6	%	(1.0)	%	(2.1)	%
Effective income tax rate	(5.3)	%	(1.1)	%	(1.5)	%