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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 16. INCOME TAXES

Income (loss) before income taxes by geographic location is as follows:

 

(in US$ thousands )

 

2022

 

 

2021

 

 

2020

 

Taiwan operations

 

$

(1,588

)

 

$

(1,989

)

 

$

(1,129

)

Non-Taiwan operations

 

 

(1,164

)

 

 

(1,436

)

 

 

(164

)

 

 

$

(2,752

)

 

$

(3,425

)

 

$

(1,293

)

 

The components of income tax benefit (expense) by taxing jurisdiction are as follows:

 

( in US$ thousands )

 

2022

 

 

2021

 

 

2020

 

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:

 

 

2022

 

 

2021

 

 

2020

 

Taiwan statutory rate, including taxes on income and
   retained earnings

 

 

24.00

%

 

 

24.00

%

 

 

24.00

%

Foreign tax differential

 

 

(3.03

)%

 

 

(5.75

)%

 

 

(0.47

)%

Expiration of net operating loss carryforwards

 

 

(20.18

)%

 

 

(6.47

)%

 

 

(31.92

)%

Net operating loss carryforwards not utilized due to dissolution of subsidiaries

 

 

(42.73

)%

 

 

—

 

 

 

—

 

Other non-deductible expenses

 

 

(9.79

)%

 

 

(1.65

)%

 

 

(3.99

)%

Cumulative effect of initially applying new accounting standards

 

 

—

 

 

 

—

 

 

 

—

 

Change in deferred tax assets and valuation allowance

 

 

24.94

%

 

 

(10.32

)%

 

 

10.52

%

Loss on investment in subsidiaries dissolved

 

 

26.62

%

 

 

—

 

 

 

—

 

Other

 

 

0.17

%

 

 

0.19

%

 

 

1.86

%

Effective rate

 

 

—

 

 

 

—

 

 

 

—

 

 

The significant components of our deferred tax assets consist of the following:

 

(in US$ thousands)

 

December 31

 

 

 

2022

 

 

2021

 

Net operating loss carryforwards

 

$

11,385

 

 

$

13,079

 

Share-based compensation

 

 

292

 

 

 

324

 

Investments

 

 

131

 

 

 

145

 

Lease right-of-use assets

 

 

6

 

 

 

4

 

Intangible assets and goodwill

 

 

—

 

 

 

1

 

Other

 

 

66

 

 

 

54

 

 

 

 

11,880

 

 

 

13,607

 

Less: valuation allowance

 

 

(11,880

)

 

 

(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, 2022, 2021 and 2020 are as follows:

 

(in US$ thousands)

 

2022

 

 

2021

 

 

2020

 

Balance at beginning of year

 

$

13,607

 

 

$

13,046

 

 

$

12,732

 

Subsequent reversal and utilization of valuation allowance

 

 

(94

)

 

 

(81

)

 

 

(87

)

Changes to valuation allowance

 

 

1,158

 

 

 

575

 

 

 

1,585

 

Expirations

 

 

(1,731

)

 

 

(221

)

 

 

(1,720

)

Exchange differences

 

 

(1,060

)

 

 

288

 

 

 

536

 

Balance at end of year

 

$

11,880

 

 

$

13,607

 

 

$

13,046

 

 

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, 2022, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions:

 

Jurisdiction

 

Amount

 

 

Expiring year

Hong Kong

 

$

15,330

 

 

indefinite

Taiwan

 

 

41,287

 

 

2023~2032

 

 

$

56,617

 

 

 

 

Unrecognized Tax Benefits

 

As of December 31, 2022, 2021 and 2020, 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, 2022, 2021 and 2020.

Our major tax paying components are all located in Taiwan. As of December 31, 2022, the income tax filings in Taiwan have been examined for the years through 2021.