Company: ZLAB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008409
Chunk: 44

Company: Zai Lab Ltd
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 44
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2.08 %)(1.40 %)Research and development super deduction5.28 %7.11 %2.51 %Non-deductible expenses(0.77 %)(2.83 %)(2.31 %)Prior year tax filing adjustment(3.05 %)1.32 %6.33 %Effect of different tax rate of subsidiary operation in other jurisdictions(0.73 %)0.02 %(2.85 %)Preferential tax rate(5.05 %)(7.12 %)(6.26 %)Expiration of tax loss(2.72 %)— %— %Expiration of deductible qualified donation (0.78 %)2.28 %— %Changes in valuation allowance(14.08 %)(23.89 %)(21.02 %)Effective income tax rate— %— %— %

F-25

Zai Lab LimitedNotes to the Consolidated Financial StatementsFor the Years Ended December 31, 2024, 2023, and 2022

The following table presents the principal components of deferred tax assets and liabilities ($ in thousands):Year Ended December 31,20242023Deferred tax assets:Depreciation of property and equipment171 131 Research and experimental capitalization38,215 30,429 Share-based compensation3,797 3,422 Accrued expenses1,038 707 Government grants98 467 Deferred revenue3,442 4,354 Qualified donation26,832 22,992 Lease liability3,885 2,967 Net operating loss carry forwards321,068 295,313 Less: valuation allowance(394,778)(357,956)Total Deferred tax assets3,768 2,826 Deferred tax liabilities:Right-of-use assets(3,768)(2,826)Deferred tax assets, net— — ASC 740, Income Taxes, provides for the recognition of deferred tax assets if realization of such assets is more likely than not. The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. In assessing the need for any additional valuation allowance for 2024, the Company considered all available evidence both positive and negative, including potential for prudent and feasible tax planning strategies, recent losses, and forecasts of future profitability. As of December 31