Income taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

a.     Tax provision:

As of January 1, 2022, the effective place of daily management and control of the Company moved to Switzerland and the Company has become a Swiss tax resident. As a result, the income tax disclosures have been presented in accordance with the Company’s current country of tax residency.

Income (loss) before income taxes is as follows:

	Year ended December 31,
	2023		2022		2021
Swiss	$	(281,685)	$	(269,621)	$	(145,591)
Non-Swiss	89,945		187,775		93,516
Total income (loss) before income taxes	$	(191,740)	$	(81,846)	$	(52,075)

The provision (benefit) for income taxes from continuing operations is comprised of:

	Year ended December 31,
	2023		2022		2021
Current:
Swiss	$	2,163	$	469	$	281
Non-Swiss	13,140		10,219		5,995
Total current	$	15,303	$	10,688	$	6,276
Deferred:
Swiss	$	—	—		$	—
Non-Swiss	—		—		—
Total deferred	—		—		—
Total income tax provision	$	15,303	$	10,688	$	6,276

b.     Theoretical tax

The Company's effective tax rate is affected by the tax rates in the various jurisdictions in which the Company operates. Under Swiss law, the Company is subject to income tax at the federal level at a statutory rate of 8.5% as well as at the cantonal and communal levels, resulting in an aggregate corporate tax rate of 11.9%.

For purposes of comparability, the Company used the Swiss federal statutory rate for the 2023, 2022 and 2021 tax years when presenting the Company's reconciliation of the income tax provision. 

A reconciliation of the provision for income taxes compared with the amounts at the Swiss rate was:

	Year ended December 31,
	2023			2022			2021
Income (loss) before income taxes	$	(191,740)		$	(81,846)		$	(52,075)
Swiss federal statutory rate	8.5		%	8.5		%	8.5		%
Income tax at federal Swiss rate	$	(16,298)		$	(6,957)		$	(4,426)
Change in valuation allowance	13,427			(14,238)			11,643
Foreign taxes rate differential	10,620			25,716			1,601
Return to provision true-ups	10,854			(1,020)			2,416
Research and development credits	(6,483)			(4,898)			(2,216)
Share based compensation	2,332			5,318			(4,636)
Withholding Taxes	435			548			273
Effect of tax law change	6			5,681			—
Other	410			538			1,621
Income tax	$	15,303		$	10,688		$	6,276
Effective tax rate	(8.0)		%	(13.1)		%	(12.1)		%

c.     Deferred income tax

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2023		2022
Deferred tax assets:
Unamortized intangible assets	$	153,450	$	153,450
Net operating loss carryforwards	$	99,743	$	65,472
Impact of revenue recognition	$	79,934	$	82,972
Share based compensation	$	32,639	$	30,009
Lease liabilities	$	8,128	$	5,846
Capitalized research and development	$	2,783	$	16,730
Research and development credits	$	1,615	$	8,992
Other temporary differences	$	7,809	$	7,089
Total gross deferred tax assets	$	386,101	$	370,560
Less: valuation allowance	(375,375)		(361,358)
Total deferred tax assets	10,726		9,202
Deferred tax liabilities:
Right of use assets	7,962		5,785
Fixed assets	1,914		1,730
Other liabilities	850		1,687
Total gross deferred tax liabilities	$	10,726	$	9,202
Net deferred taxes assets (liability)	$	—	$	—

d.     Carryforward loss:

In Switzerland, the Company had $821,963 of net operating carryforwards (NOLs) available at the Federal level, of which $794,203 are also available at the cantonal and communal level. These NOLs expire from 2026 through

2030. Additionally, the Company had $29,357 of non-Swiss NOLs as of December 31, 2023, of which $1,968 carry forward indefinitely,and the remainder expire from 2024 through 2042.

e.     Uncertain tax benefits:

A reconciliation of the beginning and ending balances of uncertain tax benefits is as follows:

	December 31,
	2023		2022		2021
Balance at beginning of the year	$	76	$	154	$	297
Additions (reductions) for taxes positions related to prior years	(58)		(78)		(143)
Balance at the end of the year	$	18	$	76	$	154

The Company recognizes interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2023, 2022 and 2021, the Company accrued $2, $2 and $5, respectively, for interest and penalties expenses related to uncertain tax positions.

The Company files income tax returns in the Switzerland and various foreign jurisdictions. Currently, the Company is under examination by the tax authorities in Israel for the tax years 2019 and 2020 and is not under examination by any other tax authority. Additional tax years within the period from 2019 to 2022 remain subject to examination by Swiss, U.S. and other tax authorities.