XML 37 R23.htm IDEA: XBRL DOCUMENT
v3.22.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 16. INCOME TAXES Income (loss) before income taxes by geographic location is as follows:
(in US$ thousands ) |  | 2019 |  |  | 2020 |  |  | 2021 |
Taiwan operations |  | $ | (2,191 | ) |  | $ | (1,129 | ) |  | $ | (1,989 | )
Non-Taiwan operations |  |  | 532 |  |  |  | (164 | ) |  |  | (1,436 | )
|  | $ | (1,659 | ) |  | $ | (1,293 | ) |  | $ | (3,425 | )
The components of income tax benefit (expense) by taxing jurisdiction are as follows:
( in US$ thousands ) |  | 2019 |  |  | 2020 |  |  | 2021 |
Taiwan: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | — |  |  | $ | — |  |  | $ | — |
Non-Taiwan: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | — |  |  | $ | — |  |  | $ | — |
Total current income tax benefit (expense) |  | $ | — |  |  | $ | — |  |  | $ | — |
Total deferred income tax benefit |  | $ | — |  |  | $ | — |  |  | $ | — |
Total income tax benefit |  | $ | — |  |  | $ | — |  |  | $ | — |
Our ultimate parent company is based in Singapore. A reconciliation of our effective tax rate related to the statutory tax rate in Taiwan, where our major operations are based, is as follows:
|  | 2019 |  |  | 2020 |  |  | 2021 |
Taiwan statutory rate, including taxes on income and retained earnings |  |  | 24.00 | % |  |  | 24.00 | % |  |  | 24.00 | %
Foreign tax differential |  |  | 10.14 | % |  |  | (0.47 | )% |  |  | (5.75 | )%
Expiration of net operating loss carryforwards |  |  | — |  |  |  | (31.92 | )% |  |  | (6.47 | )%
Other non-deductible expenses |  |  | (7.01 | )% |  |  | (3.99 | )% |  |  | (1.65 | )%
Cumulative effect of initially applying new accounting standards |  |  | 13.13 | % |  |  | — |  |  |  | — |
Change in deferred tax assets and valuation allowance |  |  | (43.38 | )% |  |  | 10.52 | % |  |  | (10.32 | )%
Other |  |  | 3.12 | % |  |  | 1.86 | % |  |  | 0.19 | %
Effective rate |  |  | — |  |  |  | — |  |  |  | — |
The significant components of our deferred tax assets consist of the following:
(in US$ thousands) |  | December 31 |
|  | 2020 |  |  | 2021 |
Net operating loss carryforwards |  | $ | 12,519 |  |  | $ | 13,079 |
Share-based compensation |  |  | 315 |  |  |  | 324 |
Investments |  |  | 141 |  |  |  | 145 |
Lease right-of-use assets |  |  | 19 |  |  |  | 4 |
Intangible assets and goodwill |  |  | 2 |  |  |  | 1 |
Other |  |  | 50 |  |  |  | 54 |
|  |  | 13,046 |  |  |  | 13,607 |
Less: valuation allowance |  |  | (13,046 | ) |  |  | (13,607 | )
Deferred tax assets - net |  | $ | — |  |  | $ | — |
A reconciliation of the beginning and ending amounts of our valuation allowance on deferred tax assets for the years ended December 31, 2019, 2020 and 2021 are as follows:
(in US$ thousands) |  | 2019 |  |  | 2020 |  |  | 2021 |
Balance at beginning of year |  | $ | 11,765 |  |  | $ | 12,732 |  |  | $ | 13,046 |
Subsequent reversal and utilization of valuation allowance |  |  | (17 | ) |  |  | (87 | ) |  |  | (81 | )
Changes to valuation allowance |  |  | 723 |  |  |  | 1,585 |  |  |  | 575 |
Expirations |  |  | — |  |  |  | (1,720 | ) |  |  | (221 | )
Exchange differences |  |  | 261 |  |  |  | 536 |  |  |  | 288 |
Balance at end of year |  | $ | 12,732 |  |  | $ | 13,046 |  |  | $ | 13,607 |
Under ROC Income Tax Act, the tax loss carryforward in the preceding ten years would be deducted from income tax for Taiwan operations. As of December 31, 2021, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions:
Jurisdiction |  | Amount |  |  | Expiring year
Hong Kong |  | $ | 16,198 |  |  | indefinite
Taiwan |  |  | 43,359 |  |  | 2022~2031
|  | $ | 59,557 |  |  |
Unrecognized Tax Benefits As of December 31, 2019, 2020 and 2021, there were no unrecognized tax benefits that if recognized would affect the effective tax rate. There were no interest and penalties related to income tax liabilities recognized for the years ended December 31, 2019, 2020 and 2021. Our major tax paying components are all located in Taiwan. As of December 31, 2021, the income tax filings in Taiwan have been examined for the years through 2019.

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 The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration