v3.26.1
Taxation
 6 Months Ended
Jun. 30, 2026
Taxation [Abstract]  
TAXATION

14. TAXATION

 

a. Income taxes

 

Cayman Islands

 

Under the current laws of the Cayman Islands, the Company and its subsidiaries incorporated in the Cayman Islands are not subject to tax on income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed.

 

US

 

Significant components of the income taxes benefit on earnings for the six months ended June 30, 2025 and 2026 are as follows:

 

   Six months ended
June 30		 
   2025   2026 
         
Current:        
Federal  $
—
    
—
 
State and local   47    14 
Foreign   
—
    
—
 
Total current portion of income tax expense   47    14 
Deferred:          
Federal  $
—
    
—
 
State and local   
—
    
—
 
Foreign   
—
    
—
 
Total deferred portion of income tax expense   
—
    
—
 
           
Total income tax expense  $47   $14 

 

The following is a reconciliation of the differences between the U.S. federal statutory income tax rate and the Company’s effective income tax rate for the six months ended June 30, 2025 and 2026:

 

   Six months ended
June 30,		 
   2025   2026 
         
Statutory federal income tax rate   21.0%   21.0%
States taxes, net of federal benefit   (2)%   0.4%
Foreign income taxed at different rates   
—
%   16.5%
Return-to-provision adjustment   —%   4.0%
Changes in valuation allowance   (17)%   (32.8)%
Tax Credits   
—
%   (4.6)%
Effect of tax amendment   
—
%   
—
%
Tax Provision   2%   4.5%