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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Components of Provision for Income Taxes | The components of the Company’s provision for income taxes for the years ended December 31, 2023 and 2022 consist of the following (in thousands):
| Year Ended December 31, |
| 2023 |  |  | 2022 |
Current income tax provision: |  |  |  |  |
Federal | $ | — |  |  | $ | — |
State |  | 6 |  |  |  | 1 |
Foreign - PRC |  | 9,343 |  |  |  | 5,987 |
Total current income tax provision | $ | 9,349 |  |  | $ | 5,988 |
Deferred income tax provision: |  |  |  |  |
Federal | $ | — |  |  | $ | (91 | )
State |  | — |  |  |  | — |
Foreign - PRC |  | (834 | ) |  |  | (799 | )
Total deferred income tax provision | $ | (834 | ) |  | $ | (890 | )
Total income tax provision | $ | 8,515 |  |  | $ | 5,098 |
Reconciliation of Federal Statutory Income Tax Rate to Company's Effective Tax Rate | The reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2023 and 2022 are as follows:
| Year Ended December 31,
| 2023 |  | 2022
Tax computed at federal statutory rate | 21.00% |  | 21.00%
Rate difference due to different jurisdiction | -2.43% |  | 4.31%
Preferential income tax rate for HNTE | 3.19% |  | -10.37%
Non-deductible expense – Operating | -6.28% |  | 33.06%
Non-deductible expense – One-time expense related to the Contributions | -22.16% |  | 0.00%
R&D Super-deduction | 1.45% |  | -12.42%
Valuation allowance change | -4.37% |  | 0.00%
ESOP | -0.55% |  | 21.81%
Other | -0.76% |  | -2.52%
Effective tax rate | -10.91% |  | 54.87%
Significant Components of the Company's Deferred Tax Assets | Significant components of the Company’s deferred tax assets as of December 31, 2023 and 2022 consist of the following (in thousands):
| Year Ended December 31, |
| 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |
Accruals and reserves | $ | 2,811 |  |  | $ | 183 |
Deferred revenue |  | 39 |  |  |  | — |
Net operating loss carry forwards |  | 40,669 |  |  |  | — |
Other equity investments |  | — |  |  |  | 150 |
Tax credit carry forwards |  | 4,463 |  |  |  | — |
Fixed and intangible assets |  | 15,332 |  |  |  | 3,428 |
Impact from foreign corporations |  | 4,590 |  |  |  | — |
Capitalized transaction costs |  | 658 |  |  |  | 414 |
Lease liabilities |  | 98 |  |  |  | — |
Deferred income tax assets before valuation allowance |  | 68,660 |  |  |  | 4,175 |
Deferred tax liability – ROU assets |  | (108 | ) |  |  | — |
Deferred tax liability – Fixed assets |  | (84 | ) |  |  | (94 | )
Less: valuation allowance |  | (63,773 | ) |  |  | — |
Deferred tax assets, net | $ | 4,695 |  |  | $ | 4,081 |
Movement of Valuation Allowance | The movements of the valuation allowance are as follows (in thousands):
| 2023 |  |  | 2022 |
Balance at the beginning of the year | $ | — |  |  | $ | — |
Changes of valuation allowances |  | (63,773 | ) |  |  | — |
Balance at the end of the year | $ | (63,773 | ) |  | $ | — |
Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of the unrecognized tax benefits is as follows (in thousands):
Beginning Balance on January 1, 2022 | $ | — |
Increase/(Decrease) of unrecognized tax benefits taken in prior years |  | — |
Increase/(Decrease) of unrecognized tax benefits related to current year |  | — |
Ending Balance on December 31, 2022 |  | — |
Increase as a result of the GNI USA Contributions on October 30, 2023 |  | 1,833 |
Increase/(Decrease) of unrecognized tax benefits taken in prior years |  | — |
Increase/(Decrease) of unrecognized tax benefits related to current year |  | — |
Ending Balance on December 31, 2023 | $ | 1,833 |

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