Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001281
Chunk: 117

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 117
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 | % |
| Customer D |          |     |            — | % |     |     |                10 | % |
| Customer F |          |     |           22 | % |     |     |                19 | % |
| Customer H |          |     |           13 | % |     |     |                14 | % |
| Customer K |          |     |           27 | % |     |     |                 — | % |

The following table includes customers that individually accounted for more than 10% of the Company’s net revenues in the periods indicated:

|            | Customer | Year Ended   
 December 31, | 2024 |   |     |     | 2023 |    |
|:-----------|:---------|:-------------|-----:|:--|:----|:----|-----:|:---|
| Customer B |          |              |    — | % |     |     |   19 | %  |
| Customer F |          |              |   16 | % |     |     |      | *% |
| Customer G |          |              |    — | % |     |     |   19 | %  |
| Customer K |          |              |   22 | % |     |     |    — | %  |
| Customer L |          |              |   10 | % |     |     |      | *% |
| Customer M |          |              |   25 | % |     |     |    — | %  |

* Less than 10%.

Management closely monitors the creditworthiness and performance of these key customers and has established credit limits and terms to mitigate potential credit risks. The Company also continues diversifying its customer base and exploring opportunities to reduce its reliance on a few major customers.

Cost of Net Revenues Cost of net revenues consists of direct and indirect costs related to the manufacture of the Company’s products. Direct costs include wafer costs and costs relating to assembly and testing performed by third-party contract manufacturers. Indirect costs consist of provisions for excess and obsolete inventory, royalties, allocated overhead for employee costs and facility costs, warranty and the amortization of the Company’s production mask sets and certain intangible assets. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of net revenues in the consolidated statements of operations.

56 GCT SEMICONDUCTOR HOLDING, INC. Notes to Consolidated Financial Statements Stock-Based Compensation Compensation costs related to stock