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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.