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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income (loss) before income taxes are as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| $ |  | $ |  | $
U.S. | 201,516 |  |  | 117,446 |  |  | 67,744 |
PRC | (263,159) |  |  | (315,852) |  |  | (583,610) |
Other | (471,358) |  |  | (627,430) |  |  | (1,445,171) |
Total | (533,001) |  |  | (825,836) |  |  | (1,961,037) |
The current and deferred components of the income tax expense (benefit) from continuing operations are as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| $ |  | $ |  | $
Current tax expense (benefit) |  |  |  |  |
U.S. | 57,222 |  |  | 25,170 |  |  | 4,844 |
PRC | 12,331 |  |  | 24,956 |  |  | 27,905 |
Other | 16,225 |  |  | 5,059 |  |  | 6,547 |
Total | 85,778 |  |  | 55,185 |  |  | 39,296 |
Deferred tax expense (benefit) |  |  |  |  |
U.S. | 23,556 |  |  | — |  |  | — |
PRC | 180 |  |  | 687 |  |  | 3,480 |
Other | 2,271 |  |  | — |  |  | 2 |
Total | 26,007 |  |  | 687 |  |  | 3,482 |
Income tax expense (benefit) | 111,785 |  |  | 55,872 |  |  | 42,778 |
The reconciliation of the statutory tax rate to our effective income tax rate is as follow:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| $ |  | $ |  | $
Loss before tax | (533,001) |  |  | (825,836) |  |  | (1,961,037) |
U.S. statutory tax rate | 21 | % |  | 21 | % |  | 21 | %
Expected taxation at U.S. statutory tax rate | (111,930) |  |  | (173,426) |  |  | (411,818) |
Foreign and preferential tax rate differential | 93,741 |  |  | 144,310 |  |  | 209,384 |
Non-deductible expenses | 1,130 |  |  | 19,134 |  |  | 29,223 |
Stock compensation expenses | 53,446 |  |  | 32,581 |  |  | 33,872 |
State tax expense (benefit) | (7,988) |  |  | (5,872) |  |  | 1,683 |
Change in valuation allowance | 157,286 |  |  | 845,811 |  |  | 229,550 |
Tax relief credits | — |  |  | (704,928) |  |  | — |
Research tax credits and incentives | (43,602) |  |  | (64,343) |  |  | (42,844) |
Deductible research expenses | (13,644) |  |  | — |  |  | — |
Tax on unremitted earnings | 23,743 |  |  | — |  |  | — |
Foreign-derived intangible income | (40,397) |  |  | (37,395) |  |  | (6,272) |
Taxation for the year | 111,785 |  |  | 55,872 |  |  | 42,778 |
Effective tax rate | (21.0) | % |  | (6.8) | % |  | (2.2) | %
Significant components of deferred tax assets (liabilities) are as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| $ |  | $ |  | $
Accruals and reserves | 121,549 |  |  | 106,708 |  |  | 97,896 |
Net operating losses carryforward | 1,137,890 |  |  | 996,588 |  |  | 862,214 |
Stock-based compensation | 38,397 |  |  | 26,687 |  |  | 19,700 |
Research tax credits | 34,561 |  |  | 68,117 |  |  | 86,000 |
Tax relief credits | 704,928 |  |  | 704,928 |  |  | — |
Intangible asset amortization | 1,081,442 |  |  | 699,974 |  |  | 813,043 |
Lease liability obligation | 11,882 |  |  | 7,893 |  |  | 10,348 |
R&D and other capitalized costs | 277,061 |  |  | 164,190 |  |  | 63,156 |
Total gross deferred tax assets | 3,407,710 |  |  | 2,775,085 |  |  | 1,952,357 |
Less valuation allowance | (3,403,505) |  |  | (2,771,470) |  |  | (1,943,775) |
Net deferred tax assets | 4,205 |  |  | 3,615 |  |  | 8,582 |
Property, plant and equipment, net | (10,795) |  |  | (12,374) |  |  | (14,480) |
Tax on unremitted earnings | (23,735) |  |  | — |  |  | — |
Right of use asset | (11,682) |  |  | (7,735) |  |  | (10,098) |
Total gross deferred tax liabilities | (46,212) |  |  | (20,109) |  |  | (24,578) |
Net deferred tax assets/(liabilities) | (42,007) |  |  | (16,494) |  |  | (15,996) |
Valuation allowances have been provided on deferred tax assets where, based on all available evidence, it was considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. After consideration of all positive and negative evidence, the Company believes that as of December 31, 2024, it is more likely than not that net deferred tax assets will not be realized. Adjustments may be required in the future if the Company estimates that the amount of deferred tax assets to be realized is more or less than the net amount recorded. The valuation allowances for the years ended December 31, 2024, 2023 and 2022 were as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| $ |  | $ |  | $
Beginning balance, as of January 1 | 2,771,470 |  |  | 1,943,775 |  |  | 1,758,409 |
Additions/(subtractions) charged to income tax provision | 157,286 |  |  | 845,811 |  |  | 229,550 |
Additions/(subtractions) charged to equity | 497,823 |  |  | — |  |  | — |
Currency translation and other | (23,074) |  |  | (18,116) |  |  | (44,184) |
Ending balance, as of December 31 | 3,403,505 |  |  | 2,771,470 |  |  | 1,943,775 |
As of December 31, 2024 and 2023, the Company had net operating losses of approximately $6,720,659 and $5,945,753, respectively. As of December 31, 2024, net operating losses were primarily comprised of: $2,185,546 from entities in the PRC which expire in years 2025 through 2034; and $4,526,020 derived from Switzerland which expires in years 2025 through 2031. The Company has approximately $43,677 of U.S. research tax credits which will expire between 2036 and 2044 and approximately $704,928 of Switzerland tax relief credits which will expire in 2028, if not utilized. The gross unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 were as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| $ |  | $ |  | $
Beginning balance, as of January 1 | 14,264 |  |  | 11,555 |  |  | 9,925 |
Additions based on tax positions related to prior tax years | — |  |  | — |  |  | — |
Reductions based on tax positions related to prior tax years | — |  |  | — |  |  | — |
Additions based on tax positions related to the current tax year | 2,975 |  |  | 2,709 |  |  | 1,630 |
Reductions based on lapse of statute of limitations | — |  |  | — |  |  | — |
Ending balance, as of December 31 | 17,239 |  |  | 14,264 |  |  | 11,555 |
Current and prior year additions include assessment of U.S. federal and state tax credits and incentives. As of December 31, 2024, the Company had $17,239 of unrecognized tax benefits substantially all of which, if recognized, would reduce the effective tax rate. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly change within the next 12 months. The Company has elected to record interest and penalties related to income taxes as a component of income tax expense. For the years ended December 31, 2024, 2023 and 2022, the Company’s accrued interest and penalties, where applicable, related to uncertain tax positions were not material. The Company conducts business in a number of tax jurisdictions and, as such, is required to file income tax returns in multiple jurisdictions globally. As of December 31, 2024, Australia tax matters are open to examination for the years 2013 through 2024, China tax matters are open to examination for the years 2014 through 2024, Switzerland tax matters are open to examination for the years 2021 through 2024, and U.S. federal tax matters are open to examination for years 2015 through 2024. Various U.S. states and other non-US tax jurisdictions in which the Company files tax returns remain open to examination for 2014 through 2024. The Company qualifies for the Technology Advanced Service Enterprises and High and New Technology Enterprise status for certain subsidiaries in China, which begin to expire at the end of 2025. The income tax benefits attributable to this status for the year ended December 31, 2024 is approximately $4,631, or less than $0.01 per share outstanding. During 2024, the Company concluded that a portion of earnings from certain subsidiaries, primarily in the U.S. and Canada, are no longer indefinitely reinvested. As a result, the Company recognized a deferred tax liability of $23,735. The Company continues to assert that earnings in other jurisdictions remain permanently reinvested.

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