XML 32 R14.htm IDEA: XBRL DOCUMENT
v3.25.1

FAIR VALUE MEASUREMENTS | 12 Months Ended
--- | ---
Dec. 31, 2024
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | NOTE 4. FAIR VAL UE MEASUREMENTS The following table presents the carrying amounts and estimated fair values of our Company’s financial instruments at December 31, 2024 and 2023.
(in US$ thousands) |  | 2024 |  |  | 2023 |
|  | Carrying amount |  |  | Fair value |  |  | Carrying amount |  |  | Fair value |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 34,781 |  |  | $ | 34,781 |  |  | $ | 38,470 |  |  | $ | 38,470 |
Accounts receivable |  |  | 141 |  |  |  | 141 |  |  |  | 227 |  |  |  | 227 |
Restricted cash |  |  | 313 |  |  |  | 313 |  |  |  | 313 |  |  |  | 313 |
Refundable deposits |  |  | 182 |  |  |  | 182 |  |  |  | 193 |  |  |  | 193 |
Investment in securities - noncurrent |  |  | 5,441 |  |  |  | 5,441 |  |  |  | 5,777 |  |  |  | 5,777 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 38 |  |  |  | 38 |  |  |  | 44 |  |  |  | 44 |
Accrued expenses |  |  | 745 |  |  |  | 745 |  |  |  | 1,182 |  |  |  | 1,182 |
Lease liabilities - current and noncurrent |  |  | 500 |  |  |  | 500 |  |  |  | 970 |  |  |  | 970 |
The carrying amounts shown in the table are included in the consolidated balance sheets under the indicated captions. The fair values of the financial instruments shown in the above table as of December 31, 2024 and 2023 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an arm’s length transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. In situations where there is little market activity for the asset or liability at the measurement date, the fair value measurement reflects our Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by us based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued expenses: The carrying amounts, at face value or cost plus accrued interest, approximate fair value because of the short maturity of these instruments. • Refundable deposits: Measurement of refundable deposits with no fixed maturities is based on carrying amounts. • Investment in securities – current and noncurrent: Valuation techniques are applied for measurement of debt and equity securities. • Lease liabilities: Measured at discounted amounts of lease payments. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Our Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Assets and liabilities measured at fair value on a recurring basis are summarized as below:
(in US$ thousands) |  | Fair Value Measurement Using |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | At December 31, 2024 |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash - time deposits |  | $ | — |  |  | $ | 313 |  |  | $ | — |  |  | $ | 313 |
Investment in securities - noncurrent |  |  | — |  |  |  | — |  |  |  | 5,441 |  |  |  | 5,441 |
|  | $ | — |  |  | $ | 313 |  |  | $ | 5,441 |  |  | $ | 5,754 |
(in US$ thousands) |  | Fair Value Measurement Using |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | At December 31, 2023 |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash - time deposits |  | $ | — |  |  | $ | 313 |  |  | $ | — |  |  | $ | 313 |
Investment in securities - noncurrent |  |  | — |  |  |  | — |  |  |  | 5,777 |  |  |  | 5,777 |
|  | $ | — |  |  | $ | 313 |  |  | $ | 5,777 |  |  | $ | 6,090 |
Our Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 3 for the years ended December 31, 2024 and 2023. Level 2 measurements: Cash equivalents – time deposits and restricted cash – time deposits are interest-earning deposits in banks, and the cash flows are estimated based on the terms of the contracts and discounted using the market interest rates applicable to the maturity of the contracts, which are adjusted to reflect credit risks on counterparties. As the inputs into the valuation techniques are readily observable, these deposits are classified in Level 2 of the fair value hierarchy. Level 3 measurements: For assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2024 and 2023, a reconciliation of the beginning and ending balances are presented as follows:
(in US$ thousands) |  | 2024 |
|  | Investment in debt securities |  |  | Investment in equity securities |
Balance at beginning of year |  | $ | 5,548 |  |  | $ | 229 |
Purchase |  |  | 1,063 |  |  |  | — |
Disposal or repayment |  |  | — |  |  |  | — |
Total gains or (losses) (realized/unrealized) |  |  |  |  |  |
included in earnings |  |  | — |  |  |  | (161 | )
included in other comprehensive income - unrealized gain (loss) on security |  |  | (865 | ) |  |  | — |
included in other comprehensive income - foreign currency items |  |  | (362 | ) |  |  | (11 | )
Balance at end of year |  | $ | 5,384 |  |  | $ | 57 |
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date. |  | $ | — |  |  | $ | (161 | )
(in US$ thousands) |  | 2023 |
|  | Investment in debt securities |  |  | Investment in equity securities |
Balance at beginning of year |  | $ | 7,950 |  |  | $ | 2,371 |
Purchase |  |  | 105 |  |  |  | — |
Disposal or repayment |  |  | (1,000 | ) |  |  | — |
Total gains or (losses) (realized/unrealized) |  |  |  |  |  |
included in earnings |  |  | — |  |  |  | (2,110 | )
included in other comprehensive income - unrealized gain (loss) on security |  |  | (1,453 | ) |  |  | — |
included in other comprehensive income - foreign currency items |  |  | (54 | ) |  |  | (32 | )
Balance at end of year |  | $ | 5,548 |  |  | $ | 229 |
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date. |  | $ | — |  |  | $ | (2,110 | )
The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as of December 31, 2024 and 2023 are shown below: Investment in securities - Level 3 financial assets Sensitivity of the Input to Fair Value
|  |  |  |  | Changes of Fair Value (in US$ thousands)
Calculation Date | Valuation Technique | Significant Unobservable Inputs | Rate for debt investment | Rate for equity investment | If the Rate of Input changes by -1% | If the Rate of Input changes by +1%
December 31, 2024 | The discounted cash flow analysis to estimate the enterprise value, and then the option pricing method to allocate equity value among various classes of stakeholders. | Discount rate for future cash flows | 38.5% | 38.5% | Debt securities: +$324 Equity securities: +$28 | Debt securities: -$352 Equity securities: -$20
Discount for lack of marketability | 13% | From 13.0% to 48.0% for different scenarios | Debt securities: +$62 Equity securities: +$1 | Debt securities: -$62 Equity securities: -$1
Volatility | 29% | 29% | Debt securities: +$99 Equity securities: -$1 | Debt securities: -$36 Equity securities: +$2
December 31, 2023 | The discounted cash flow analysis to estimate the enterprise value, and then the option pricing method to allocate equity value among various classes of stakeholders. | Discount rate for future cash flows | 38.5% | 38.5% | Debt securities: +$90 Equity securities: +$67 | Debt securities: -$121 Equity securities: -$58
Discount for lack of marketability | 12% | From 12.0% to 30.0% for different scenarios | Debt securities: +$63 Equity securities: +$4 | Debt securities: -$63 Equity securities: -$3
Volatility | 29% | 29% | Debt securities: +$22 Equity securities: +$3 | Debt securities: -$86 Equity securities: -$2
When estimating the value of the early stage enterprise, in the absence of observable market prices or a recent financing transaction, we obtained sufficient financial and operational information from the issuer’s company, using the income approach as our primary method, which reflects the close relationship between the future cash generating ability of the issuer’s company and respective enterprise value. As the issuer’s company was still at its early stage of development with limited historical track record, market multiples were conducted for supplementary reference only. The derived enterprise value was then served as a reasonable basis for the subsequent equity value allocation exercise to estimate the portion assignable to the issuer’s convertible note and respective share categories as of the measurement date by applying a hybrid method of Probability Weighted Expected Return Method (“PWERM”) and Option Pricing Method (“OPM”). Such hybrid method estimates the probability weighted value across multiple scenarios, using OPM to estimate the allocation of value within one or more of those scenarios. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities measured at fair value on a nonrecurring basis include measuring impairment when required for long-lived assets. Our Company's long-lived assets measured at fair value on a nonrecurring basis include property, plant, and equipment, intangible assets, operating lease ROU assets, and prepaid licensing and royalty fees. No assets and liabilities measured at fair value on a nonrecurring basis were determined to be impaired as of December 31, 2024 and 2023.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration