XML 56 R43.htm IDEA: XBRL DOCUMENT
v3.25.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of components of income before income taxes | The components of income before income taxes are as follows:
|  | For the years ended December 31, |
|  | 2022 |  |  | 2023 |  |  | 2024 |
|  | US$ |  |  | US$ |  |  | US$ |
The Cayman Islands |  |  | (2,399,651 | ) |  |  | (700,677 | ) |  |  | (1,334,142 | )
PRC |  |  | 9,105,225 |  |  |  | 12,562,152 |  |  |  | 35,007,671 |
Other |  |  | (4,673,789 | ) |  |  | 34,132,262 |  |  |  | 48,090,120 |
Total income before income taxes |  |  | 2,031,785 |  |  |  | 45,993,737 |  |  |  | 81,763,649 |
Schedule of current and deferred portions of income taxes allocated to continuing operations | The current and deferred portions of income tax expense allocated to continuing operations, all of which was incurred outside the Cayman Islands, were as follows:
|  | For the years ended December 31, |
|  | 2022 |  |  | 2023 |  |  | 2024 |
|  | US$ |  |  | US$ |  |  | US$ |
Current tax (expense) |  |  | (5,552,745 | ) |  |  | (9,779,815 | ) |  |  | (19,580,355 | )
Deferred tax benefit (expense) |  |  | 1,264,080 |  |  |  | (3,206,495 | ) |  |  | (829,366 | )
Income tax expense |  |  | (4,288,665 | ) |  |  | (12,986,310 | ) |  |  | (20,409,721 | )
Schedule of significant components of the Group's deferred tax assets | The significant components of the Group’s deferred tax assets and liabilities were as follows:
|  | As of December 31, |
|  | 2023 |  |  | 2024 |
|  | US$ |  |  | US$ |
Deferred tax assets |  |  |  |  |  |
Net operating loss carryforwards |  |  | 23,177,049 |  |  |  | 22,460,370 |
Share-based compensation |  |  | 2,555,382 |  |  |  | 4,104,367 |
Lease liabilities |  |  | 1,933,001 |  |  |  | 2,019,091 |
Withholding tax credit carryforwards |  |  | 1,042,268 |  |  |  | 1,013,796 |
Advertising expense carryforwards |  |  | 961,816 |  |  |  | 807,824 |
Accrued expenses |  |  | 479,475 |  |  |  | 504,250 |
Financial instruments held, at fair value |  |  | 425,174 |  |  |  | 546,762 |
Allowance for doubtful accounts |  |  | 331,043 |  |  |  | 860,624 |
Long-term investments |  |  | 140,847 |  |  |  | 228,010 |
Total deferred tax assets |  |  | 31,046,055 |  |  |  | 32,545,094 |
Less: valuation allowance |  |  | 18,262,801 |  |  |  | 21,923,356 |
Deferred tax assets, net of valuation allowance |  |  | 12,783,254 |  |  |  | 10,621,738 |
Deferred tax liabilities |  |  |  |  |  |
Intangible assets |  |  | 1,788,555 |  |  |  | 1,788,555 |
Right-of-use assets |  |  | 1,742,996 |  |  |  | 1,945,981 |
Financial instruments held, at fair value |  |  | 1,658,536 |  |  |  | 382,728 |
Total deferred tax liabilities |  |  | 5,190,087 |  |  |  | 4,117,264 |
Deferred tax assets, net |  |  | 10,990,998 |  |  |  | 8,573,135 |
Deferred tax liabilities, net |  |  | 3,397,831 |  |  |  | 2,068,661 |
Schedule of movement of the valuation allowance | The movement of the valuation allowance is as follows:
|  | For the years ended December 31, |
|  | 2022 |  |  | 2023 |  |  | 2024 |
|  | US$ |  |  | US$ |  |  | US$ |
Balance at the beginning of the year |  |  | 5,224,095 |  |  |  | 11,307,489 |  |  |  | 18,262,801 |
Additions of valuation allowance |  |  | 7,192,373 |  |  |  | 7,372,595 |  |  |  | 6,576,529 |
Reversals of valuation allowance |  |  | (858,222 | ) |  |  | (187,483 | ) |  |  | (2,599,680 | )
Foreign currency translation adjustment |  |  | (250,757 | ) |  |  | (229,800 | ) |  |  | (316,294 | )
Net change in the valuation allowance |  |  | 6,083,394 |  |  |  | 6,955,312 |  |  |  | 3,660,555 |
Balance at the end of the year |  |  | 11,307,489 |  |  |  | 18,262,801 |  |  |  | 21,923,356 |
Schedule of expiration status of net operating loss carryforwards | The expiration status of net operating loss carryforwards as of December 31, 2024 is listed below.
Expiration year |  | US$ |
2025 |  |  | 1,027,515 |
2026 |  |  | 6,478,019 |
2027 |  |  | 6,958,289 |
2028 |  |  | 5,774,048 |
2029 through 2044 |  |  | 65,272,224 |
Indefinitely |  |  | 45,906,898 |
Schedule of Reconciliations between the income tax expense computed by applying the PRC's statutory income tax rate to income before income taxes and the actual income tax expense | Reconciliations between the income tax expense computed by applying the PRC's 25% statutory income tax rate, the standard enterprise income tax rate in the jurisdiction of tax domicile of a significant portion of our business, to income before income taxes and the reported income tax expense were as follows:
|  | For the years ended December 31, |
|  | 2022 |  |  | 2023 |  |  | 2024 |
|  | US$ |  |  | US$ |  |  | US$ |
Income before income taxes |  |  | 2,031,785 |  |  |  | 45,993,737 |  |  |  | 81,763,649 |
PRC statutory income tax rate |  | 25% |  |  | 25% |  |  | 25% |
Income tax at statutory income tax rate |  |  | (507,946 | ) |  |  | (11,498,434 | ) |  |  | (20,440,912 | )
Effect of income tax rate difference in other jurisdictions |  |  | (1,118,844 | ) |  |  | 23,195 |  |  |  | 2,527,278 |
Effect of preferential tax rates |  |  | 999,270 |  |  |  | 1,306,561 |  |  |  | 3,226,674 |
Remeasurement of deferred taxes for tax rate change |  |  | (1,269,155 | ) |  |  | — |  |  |  | — |
Super deduction of research and development expense |  |  | 4,725,220 |  |  |  | 5,509,308 |  |  |  | 5,544,966 |
Nondeductible expenses |  |  | (4,142,647 | ) |  |  | (1,998,354 | ) |  |  | (10,651,228 | )
Non-taxable income |  |  | 35,616 |  |  |  | 194,107 |  |  |  | 1,758,388 |
Changes in valuation allowance |  |  | (6,334,151 | ) |  |  | (7,185,112 | ) |  |  | (3,976,849 | )
Excess tax benefits from share-based compensation |  |  | 1,146,536 |  |  |  | 662,419 |  |  |  | 1,601,962 |
Remeasurement of share-based compensation tax attributes (Note) |  |  | 2,177,436 |  |  |  | — |  |  |  | — |
Income tax expense |  |  | (4,288,665 | ) |  |  | (12,986,310 | ) |  |  | (20,409,721 | )

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-3 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration