Company: GCTS
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0000950170-25-044438
Chunk: 144

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1B
Chunk 144
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2.4 million, or 38%, from $6.2 million for the year ended December 31, 2023 to $3.9 million for the year ended December 31, 2024. The decrease of $2.4 million was primarily due to the conversion of significant amounts of outstanding convertible notes upon the closing of the Business Combination.

Gain on foreign currency transactions, net

Gain on foreign currency transactions increased by $4.4 million, or 1,663%, from $0.3 million for the year ended December 31, 2023 to $4.7 million for the year ended December 31, 2024. This increase of $4.4 million was largely driven by foreign exchange fluctuations, specifically the appreciation of the US dollar against the Korean Won during the fourth quarter of 2024. Since significant amounts of our debt are denominated in Korean Wons, these trends have resulted in significant realized and unrealized gains during the year ended December 31, 2024.

Change in fair value of common stock warrant liabilities

During the year ended December 31, 2024, we recognized a gain of $2.2 million from changes in the fair value of common stock warrant liabilities. This gain was primarily driven by the reduction in our common stock price during this period. There were no gains or losses from the warrant liabilities measurement during the year ended December 31, 2023 since the statements of operations during this period are those of Legacy GCT, which did not have liability-classified warrants.

Change in fair value of convertible promissory notes

Loss from changes in fair value of convertible promissory notes was $1.4 million for the year ended December 31, 2023 and $1.5 million for the year ended December 31, 2024. These losses in each year were derived from the fair value measurement and related assumptions, 

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specifically changes in the probability of different settlement scenarios during the year ended December 31, 2023, and remeasurement of the convertible notes prior to their settlement in our common stock during the year ended December 31, 2024.

Loss from initial recognition of common stock forward liability

We recognized a loss from initial recognition of common stock forward liability of $0.6 million during the year ended December 31, 2024, which represents the initial fair value of the financial instrument issued under the Purchase Agreement with B. Riley. There were no similar transactions during the year ended