Income Tax (Tables)

12 Months Ended

Dec. 31, 2023

The following table presents loss (income) before income taxes ($ in thousands):

Reconciliations of the differences between the Chinese statutory income tax rate and the Company’s effective income tax rate are as follows:


	Year Ended December 31,
	2023		2022		2021
Statutory income tax rate	25	%	25	%	25	%
Tax-exempted income	0.19	%	—	%	—	%
Share-based compensation	(2.08	%)	(1.40	%)	(0.92	%)
Research and development super deduction	7.11	%	2.51	%	—	%
Non-deductible expenses	(2.83	%)	(2.31	%)	(5.78	%)
Prior year tax filing adjustment	1.32	%	6.33	%	1.50	%
Effect of different tax rate of subsidiary operation in other jurisdictions	0.02	%	(2.85	%)	(4.60	%)
Preferential tax rate	(7.12	%)	(6.26	%)	(4.30	%)

Expiration of deductible qualified donation	2.28	%	—	%	—	%
Changes in valuation allowance	(23.89	%)	(21.02	%)	(10.90	%)
Effective income tax rate	—	%	—	%	—	%

The following table presents the principal components of deferred tax assets and liabilities ($ in thousands):


	Year Ended December 31,
	2023	2022

Deferred tax assets:
Depreciation of property and equipment, net	131	98
Research and experimental capitalization	30,429	22,476
Share-based compensation	3,422	1,787
Accrued expenses	707	1,800
Government grants	467	189
Deferred revenue	4,354	3,378
Qualified donation	22,992	12,947
Lease liability	2,967	3,738
Net operating loss carry forwards	295,313	241,397
Less: valuation allowance	(357,956)	(284,072)
Total Deferred tax assets	2,826	3,738
Deferred tax liabilities:
Right-of-use assets	(2,826)	(3,738)
Deferred tax assets, net	—	—

The following table presents that movement of the valuation allowance on deferred tax assets ($ in thousands):