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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income (Loss) Before Income Taxes by Geographic Location | Income (loss) before income taxes by geographic location is as follows:
(in US$ thousands ) |  | 2018 |  |  | 2019 |  |  | 2020 |
Taiwan operations |  | $ | (3,146 | ) |  | $ | (2,191 | ) |  | $ | (1,129 | )
Non-Taiwan operations |  |  | (47 | ) |  |  | 532 |  |  |  | (164 | )
|  | $ | (3,193 | ) |  | $ | (1,659 | ) |  | $ | (1,293 | )
Components of Income Tax Benefit Expense by Taxing Jurisdiction | The components of income tax benefit (expense) by taxing jurisdiction are as follows:
( in US$ thousands ) |  | 2018 |  |  | 2019 |  |  | 2020 |
Taiwan: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | — |  |  | $ | — |  |  | $ | — |
Non-Taiwan: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | — |  |  | $ | — |  |  | $ | — |
Total current income tax benefit (expense) |  | $ | — |  |  | $ | — |  |  | $ | — |
Total deferred income tax benefit |  | $ | — |  |  | $ | — |  |  | $ | — |
Total income tax benefit |  | $ | — |  |  | $ | — |  |  | $ | — |
Reconciliation of Effective Tax Rate Related to Statutory Taiwan Federal Tax Rate | A reconciliation of our effective tax rate related to the statutory tax rate in Taiwan, where our major operations are based, is as follows:
|  | 2018 |  |  | 2019 |  |  | 2020 |
Taiwan statutory rate, including taxes on income and retained earnings |  |  | 24.00 | % |  |  | 24.00 | % |  |  | 24.00 | %
Foreign tax differential |  |  | 3.43 | % |  |  | 10.14 | % |  |  | (0.47 | )%
Expiration of net operating loss carryforwards |  |  | — |  |  |  | — |  |  |  | (31.92 | )%
Tax-exempt income |  |  | — |  |  |  | — |  |  |  | — |
Non-deductible items - bad debts |  |  | (0.22 | )% |  |  | — |  |  |  | — |
Other non-deductible expenses |  |  | (3.50 | )% |  |  | (7.01 | )% |  |  | (3.99 | )%
Changes in unrecognized tax benefits |  |  | 17.17 | % |  |  | — |  |  |  | — |
Cumulative effect of initially applying new accounting standards |  |  | — |  |  |  | 13.13 | % |  |  | — |
Change in deferred tax assets and valuation allowance |  |  | (42.02 | )% |  |  | (43.38 | )% |  |  | 10.52 | %
Change in tax rate |  |  | 0.15 | % |  |  | — |  |  |  | — |
Other |  |  | 0.99 | % |  |  | 3.12 | % |  |  | 1.86 | %
Effective rate |  |  | — |  |  |  | — |  |  |  | — |
Reconciliation of Beginning and Ending Amounts of Valuation Allowance on Deferred Tax Assets | A reconciliation of the beginning and ending amounts of our valuation allowance on deferred tax assets for the years ended December 31, 2018, 2019 and 2020 are as follows:
(in US$ thousands) |  | 2018 |  |  | 2019 |  |  | 2020 |
Balance at beginning of year |  | $ | 9,928 |  |  | $ | 11,765 |  |  | $ | 12,732 |
Subsequent reversal and utilization of valuation allowance |  |  | — |  |  |  | (17 | ) |  |  | (87 | )
Changes to valuation allowance |  |  | 2,107 |  |  |  | 723 |  |  |  | 1,585 |
Expirations |  |  | — |  |  |  | — |  |  |  | (1,720 | )
Exchange differences |  |  | (270 | ) |  |  | 261 |  |  |  | 536 |
Balance at end of year |  | $ | 11,765 |  |  | $ | 12,732 |  |  | $ | 13,046 |
Net Operating Loss Carryforwards Available to Offset Future Income | As of December 31, 2020, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions:
Jurisdiction |  | Amount |  |  | Expiring year
Hong Kong |  | $ | 15,760 |  |  | indefinite
Taiwan |  |  | 41,329 |  |  | 2021~2030
|  | $ | 57,089 |  |  |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits Excluding Effects of Accrued Interest | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding the effects of accrued interest) for the years 2018, 2019 and 2020 are as follows:
(in US$ thousands) |  | 2018 |  |  | 2019 |  |  | 2020 |
Balance at beginning of year |  | $ | 1,110 |  |  | $ | — |  |  | $ | — |
Increase related to prior year tax positions |  |  | — |  |  |  | — |  |  |  | — |
Decrease related to prior year tax positions |  |  | — |  |  |  | — |  |  |  | — |
Settlement of intercompany charge adjustments |  |  | (1,095 | ) |  |  | — |  |  |  | — |
Expiration of statute of limitations |  |  | — |  |  |  | — |  |  |  | — |
Exchange differences |  |  | (15 | ) |  |  | — |  |  |  | — |
Balance at end of year |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred Tax Assets |
Significant Components of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets consist of the following:
(in US$ thousands) |  | December 31 |
|  | 2019 |  |  | 2020 |
Net operating loss carryforwards |  | $ | 12,005 |  |  | $ | 12,519 |
Share-based compensation |  |  | 299 |  |  |  | 315 |
Investments |  |  | 134 |  |  |  | 141 |
Lease right-of-use assets |  |  | 122 |  |  |  | 19 |
Intangible assets and goodwill |  |  | 64 |  |  |  | 2 |
Other |  |  | 108 |  |  |  | 50 |
|  |  | 12,732 |  |  |  | 13,046 |
Less: valuation allowance |  |  | (12,732 | ) |  |  | (13,046 | )
Deferred tax assets - net |  | $ | — |  |  | $ | — |

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