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Income Tax (Tables)

12 Months Ended

Dec. 31, 2023

Sep. 30, 2023

Changes in our unrecognized tax benefits

The changes in our unrecognized tax benefits for the indicated periods are summarized below:


	2023		2022
	(as restated)		(as restated)
Balance at January 1	$	24,388,433	$	11,811,695
Effect of rate changes		—		—
Additions based on tax positions related to current year		6,882,336		13,857,760
Foreign currency translation		2,483,300		(1,281,022	)
Balance at December 31		33,754,069		24,388,433

The Company and its subsidiaries are liable to income taxes in their respective jurisdiction

The Company and its subsidiaries are liable to income taxes in their respective jurisdiction. The Company has unused tax losses as follows as at December 31, 2023:


Subsidiaries in Jurisdiction	Tax loss carryforward		Expiration date
UK (1)		191,771,010		(1	)
US		5,542,459	Indefinite
Spain		844,411	Indefinite
India		—	N/A
Taiwan		2,359,658	10 years

Current Income Tax Expense (Benefit)

Current Income tax expense (benefit) consists of:


	December 31, 2023		December 31, 2022
	(as restated)		(as restated)
Taiwan		—		10,639
India		63,408		28,126
Total		63,408		38,765

Components of loss (income) before income taxes

The components of our loss (income) before income taxes are as follows:


	December 31, 2023			December 31, 2022
	(as restated)			(as restated)
UK	$	29,427,631		$	107,945,740
US		994,933			634,526
Spain		298,927			381,321
India		(92,982	)		(300,433	)
Taiwan		44,181			2,051,794
Total		30,672,980			110,712,948

Significant portions of our deferred tax assets and liabilities

The tax effects of temporary differences that give rise to the significant portions of our deferred tax assets and liabilities are presented below:


	December 31, 2023			December 31, 2022
	(as restated)			(as restated)
Deferred tax assets:
Net operating loss and other carryforwards	$	33,754,069		$	24,388,433
PP&E		—			2,661
Short-term debt		1,556,454			174,267
Share-based payment liability		327,757			294,404
Convertible debt		8,110,222			6,325,677
Deferred tax assets		43,748,501			31,185,442
Valuation allowance		(43,748,501	)		(31,185,442	)
Deferred tax assets, net of valuation allowance		—			—

Reconciliation of the federal income tax rate to the company's effective tax rate

Income tax benefit attributable to our loss before income taxes differs from the amounts computed using the applicable income tax rate as a result of the following factors:


	December 31, 2023			December 31, 2022
	(as restated)			(as restated)
Loss before income taxes	$	(30,672,690	)	$	(110,712,948	)
Income tax benefit at statutory tax rates (a)		7,208,082			21,035,460
Effect of:
Non-deductible or non-taxable foreign currency exchange results		(88,195	)		(214,299	)
International rate differences (b)		(9,845	)		282,884
Non-deductible expenses		(2,050,426	)		(14,818,455	)
Change in valuation allowance		(4,996,208	)		(6,246,825	)
Income tax expense		63,408			38,765

(a)

The statutory or “expected” tax rates are the U.K. rates of 23.5% for 2023 and 19.0% for 2022 and 2021. The 2023 statutory rate represents that blended rate in effect for the year ended December 31, 2023 based on the 19.0% statutory rate that was in effect for the first quarter of 2023 and the 25.0% statutory rate that was in effect for the remainder of 2023.

(b)

Amounts reflect adjustments (either a benefit or expense) to the “expected” tax expense for statutory rates in jurisdictions in which we operate outside of the UK.

Armada Acquisition Corp I [Member]

Income Tax Disclosure [Line Items]

Significant portions of our deferred tax assets and liabilities

The Company’s net deferred tax assets are as follows:


	September 30,
	2023			2022
Deferred tax asset
Organizational costs/Startup expenses	$	504,667		$	351,592
Stock-based compensation		129,350			83,517
Total deferred tax asset		634,017			435,209
Valuation allowance		(634,017	)		(435,209	)
Deferred tax asset, net of allowance	$	—		$	—

The income tax provision

The income tax provision consists of the following:


	September 30,
	2023			2022
Federal
Current	$	615,284		$	145,621
Deferred		(198,808	)		(336,741	)
State
Current		—			—
Deferred		—			—
Change in valuation allowance		198,808			336,741
Income tax provision	$	615,284		$	145,621

Reconciliation of the federal income tax rate to the company's effective tax rate

A reconciliation of the federal income tax rate to the Company’s effective tax rate at September 30, 2023 and 2022 are as follows:


	September 30,
	2023			2022
Statutory federal income tax rate		21.00	%		21.00	%
State taxes, net of federal tax benefit		0.00	%		0.00	%
Prior year true up		0.99	%		—
Business combination expenses		119.13	%		(15.50	)%
Change in valuation allowance		67.40	%		(9.70	)%
Income tax provision		207.49	%		(4.25	)%