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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 16. INCOME TAXES

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

 

(in US$ thousands )

 

2023

 

 

2022

 

 

2021

 

Taiwan operations

 

$

(1,726

)

 

$

(1,588

)

 

$

(1,989

)

Non-Taiwan operations

 

 

(1,673

)

 

 

(1,164

)

 

 

(1,436

)

 

 

$

(3,399

)

 

$

(2,752

)

 

$

(3,425

)

 

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

 

( in US$ thousands )

 

2023

 

 

2022

 

 

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:

 

 

2023

 

 

2022

 

 

2021

 

Taiwan statutory rate, including taxes on income and
   retained earnings

 

 

24.00

%

 

 

24.00

%

 

 

24.00

%

Foreign tax differential

 

 

0.75

%

 

 

(3.03

)%

 

 

(5.75

)%

Expiration of net operating loss carryforwards

 

 

(27.71

)%

 

 

(20.18

)%

 

 

(6.47

)%

Net operating loss carryforwards not utilized due to dissolution of subsidiaries

 

 

—

 

 

 

(42.73

)%

 

 

—

 

Other non-deductible expenses

 

 

(12.84

)%

 

 

(9.79

)%

 

 

(1.65

)%

Change in deferred tax assets and valuation allowance

 

 

15.79

%

 

 

24.94

%

 

 

(10.32

)%

Loss on investment in subsidiaries dissolved

 

 

—

 

 

 

26.62

%

 

 

—

 

Other

 

 

0.01

%

 

 

0.17

%

 

 

0.19

%

Effective rate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

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

 

(in US$ thousands)

 

December 31

 

 

 

2023

 

 

2022

 

Net operating loss carryforwards

 

$

10,630

 

 

$

11,385

 

Share-based compensation

 

 

292

 

 

 

292

 

Investments

 

 

131

 

 

 

131

 

Lease right-of-use assets

 

 

6

 

 

 

6

 

Other

 

 

5

 

 

 

66

 

 

 

 

11,064

 

 

 

11,880

 

Less: valuation allowance

 

 

(11,064

)

 

 

(11,880

)

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, 2023, 2022 and 2021 are as follows:

 

(in US$ thousands)

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of year

 

$

11,880

 

 

$

13,607

 

 

$

13,046

 

Subsequent reversal and utilization of valuation allowance

 

 

(263

)

 

 

(94

)

 

 

(81

)

Changes to valuation allowance

 

 

405

 

 

 

1,158

 

 

 

575

 

Expirations

 

 

(942

)

 

 

(1,731

)

 

 

(221

)

Exchange differences

 

 

(16

)

 

 

(1,060

)

 

 

288

 

Balance at end of year

 

$

11,064

 

 

$

11,880

 

 

$

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, 2023, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions:

 

Jurisdiction

 

Amount

 

 

Expiring year

Hong Kong

 

$

15,521

 

 

indefinite

Taiwan

 

 

33,414

 

 

2024~2033

 

 

$

48,935

 

 

 

 

Unrecognized Tax Benefits

 

As of December 31, 2023, 2022 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, 2023, 2022 and 2021.

Our major tax paying components are all located in Taiwan. As of December 31, 2023, the income tax filings in Taiwan have been examined for the years through 2021.