Company: GCTS
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0000950170-25-044438
Chunk: 270

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 8
Chunk 270
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 risk concentration consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents primarily with one financial institution located in the United States and another located in South Korea, where amounts deposited may exceed Federal Deposit Insurance Corporation or Korea Deposit Insurance Corporation limits. The Company’s accounts receivable balances are primarily derived from revenues recognized from customers located in the United States, China, South Korea, Japan, and Taiwan. The Company performs ongoing credit evaluations of the financial condition of its customers and distributors and generally does not require collateral.The Company’s net revenues and accounts receivable are concentrated among a few significant customers, which could expose the Company to financial risk in the event of adverse developments. The following represents the concentration of the Company’s gross accounts receivable among key customers to the extent their share exceeds 10%: 

          Customer
           
          December 31, 2024

          December 31, 2023

          Customer B

          13
          %

          27
          %

          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: 

          Year EndedDecember 31,

          Customer
           
          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 RevenuesCost 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