Company: GCTS
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0000950170-25-044438
Chunk: 297

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 8
Chunk 297
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        $
        76,556

        $
        79,078

        Capitalized costs

        8,826

        5,409

        Accruals and reserves

        4,235

        4,610

        Inventory reserves

        391

        267

        Stock compensation

        109

        382

        Loss on unrealized currency translation

        182

        166

        Research and development credits

        2,793

        2,490

        Financial guarantee liabilities

        6,031

        5,410

        Lease liability

        94

        197

        Provision for credit losses

        297

        368

        Gross deferred tax assets

        99,514

        98,377

        Valuation allowance

        (99,200
        )

        (97,628
        )

        Net deferred tax assets

        314

        749

        Deferred tax liabilities

        Revaluation of convertible promissory notes

        (133
        )

        (448
        )

        Contract assets

        (1
        )

        (3
        )

        Right-of-use assets

        (180
        )

        (298
        )

        Gross deferred tax liabilities

        (314
        )

        (749
        )

        Net deferred income tax
         
        $
        —

        $
        —

      Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction-by-jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. The Company’s management believes that, based on a number of factors, it is more likely than not, that all or some portion of the deferred tax assets will not be realized; and accordingly, for the year ended December 31, 2024 and 2023, the Company has provided a valuation allowance against the Company’s U.S. net deferred tax assets. The valuation allowance increased by $1.5 million and $3.2 million for the years ended December 31, 2024 and 2023, respectively.The Company had net operating loss carryforwards (“N