v3.25.1
Pension Liability
 12 Months Ended
Dec. 31, 2024
Pension Liability [Abstract]  
Pension Liability

Note 8

Pension Liability:

The Company joined a collective pension plan operated by an insurance company as of 2016 which covers the employees in Switzerland.

Both the Company and the participants provide monthly contributions to the pension plan which are based on the covered salary. The respective saving parts of premiums are credited to employees’ accounts. In addition, interest is credited to employees’ accounts at the rate provided in the plan. The pension plan provides for retirement benefits as well as benefits on long-term disability and death.

The following table provides information on the pension plan for the years ended December 31, 2024, 2023 and 2022:

 

2024

  

2023

  

2022

Service cost

  

$

69,716

 

  

$

53,920

 

  

$

39,667

 

Interest cost

  

 

24,375

 

  

 

14,416

 

  

 

2,743

 

Expected return on assets

  

 

(32,364

)

  

 

(14,767

)

  

 

(12,196

)

Effect of settlement, curtailment, plan amendment

  

 

(44,236

)

  

 

—

 

  

 

(72,600

)

Actuarial loss outside corridor recognized

  

 

5,231

 

  

 

—

 

  

 

3,091

 

Past service cost recognized in year

  

 

3,094

 

  

 

3,031

 

  

 

2,855

 

Administrative expenses

  

 

1,861

 

  

 

2,926

 

  

 

2,298

 

Net periodic pension cost

  

$

27,677

 

  

$

59,525

 

  

$

(34,142

)

The reconciliation of the projected benefit obligation and the changes to the fair value of the plan assets of the pension plan are shown in the following table:

 

2024

  

2023

Projected benefit obligation, beginning of period

  

$

809,028

 

  

$

584,737

 

Service cost and plan amendments

  

 

26,283

 

  

 

53,920

 

Interest cost

  

 

24,375

 

  

 

14,416

 

Employer contributions

  

 

14,777

 

  

 

(3,759

)

Transfers-in and (-out), net

  

 

1,342,430

 

  

 

42,413

 

Actuarial (gain)/loss

  

 

21,240

 

  

 

123,388

 

Currency conversion adjustments

  

 

(24,956

)

  

 

(6,087

)

Projected benefit obligation, end of period

  

$

2,213,177

 

  

$

809,028

 
   

 

  

 

  

 

  

 

Plan assets, beginning of period

  

$

548,343

 

  

$

448,615

 

Actual return on plan assets

  

 

32,364

 

  

 

27,844

 

Employer contributions

  

 

33,300

 

  

 

38,737

 

Participant contributions

  

 

14,777

 

  

 

20,655

 

Actuarial (gain)/loss

  

 

178,872

 

  

 

—

 

Transfers-in and (-out), net

  

 

1,445,453

 

  

 

17,999

 

Administration expenses

  

 

(1,861

)

  

 

(2,926

)

Currency conversion adjustments

  

 

(38,071

)

  

 

(2,581

)

Plan assets, end of period

  

$

2,213,177

 

  

$

548,343

 

Accrued pension liability

  

$

—

 

  

$

260,685

 

As of December 31, 2024, the Company does not have any active employees participating in a defined benefit pension plan. However, the Company continues to maintain a capped pension obligation related to survivor benefits payable to orphans of a former employee. This obligation is fully covered by existing plan assets and does not give rise to any unfunded liability. All other obligations and liabilities associated with the Company’s prior pension plan have been fully settled and transferred. As a result, the Company has no net pension-related liability or associated pension expense recognized on its balance sheet as of December 31, 2024.

The pension assets are measured at fair value and are invested in a collective pension foundation with pooled investments. Plan assets mainly consist of cash and cash equivalents, equity funds, equity securities, corporate bonds, government bonds, and real estate funds classified as Level 1 and Level 2 under the fair value hierarchy.

The Company records net gains/losses, consisting of actuarial gains/losses, curtailment gains/losses and differences between expected and actual returns on plan assets, in other comprehensive income/loss. Such net gains/losses are amortized to the statements of operations to the extent that they exceed 10% of the greater of projected benefit obligations or pension assets. The Company further records prior service costs/credits from plan amendments in other comprehensive income/loss in the period of the respective plan amendment and amortizes such amounts to

the statement of operations over the future service period of the plan participants. For the years ended December 31, 2024 and 2023, the amortization was $0. As of December 31, 2024, and 2023, the accumulated other comprehensive (income) loss includes unrecognized pension costs of $(108,853) and $158,073, respectively.

The following table shows the components of unrecognized pension cost in accumulated other comprehensive income/loss that have not yet been recognized as components of net periodic pension cost:

 

2024

  

2023

Net loss, beginning of period

  

$

158,073

 

  

$

50,791

 

Other (gain)/loss during the period

  

 

(47,413

)

  

 

110,313

 

Other prior year (gain)/loss recognized in period

  

 

(157,632

)

  

 

—

 

Effect of settlement, curtailment

  

 

(58,787

)

  

 

—

 

Amortization of pension related net loss

  

 

—

 

  

 

—

 

Net (gain)/loss, end of period

  

 

(105,759

)

  

 

161,104

 
   

 

  

 

  

 

  

 

Prior service cost, beginning of period

  

 

—

 

  

 

—

 

Amortization of prior service cost

  

 

(3,094

)

  

 

(3,031

)

Prior service cost end of period

  

 

(3,094

)

  

 

(3,031

)

Total unrecognized pension (credit) cost, end of period

  

$

(108,853

)

  

$

158,073

 

The weighted average of the key assumptions used to compute the benefit obligations were as follows:

 

2024

  

2023

Discount rate

  

0.95

%

  

1.45

%

Rate of increase in compensation level

  

0.65

%

  

0.65

%

Interest credit rate on savings accounts

  

1.25

%

  

1.45

%

Expected long-term rate of return on plan assets

  

2.15

%

  

2.30

%

Inflation rate

  

1.25

%

  

1.25

%

The assumption of the expected long-term rate of return on plan assets was based on the long-term historical rates of returns for the different investment categories which were adjusted, where appropriate, to reflect financial market developments. The investment risk is borne by the insurer and the reinsurer respectively, and the investment decision is taken by the board of trustees of the collective insurance. The accumulated benefit obligation as of December 31, 2024, and 2023 amounted to $2,213,177 and $809,028, respectively.