Company: GCTS
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001851961-25-000010
Chunk: 17

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 17
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 class of common stock.LiquidityThe accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. Through June 30, 2025, the Company has incurred operating losses and negative cash flows from operating activities and had an accumulated deficit of $582.5 million as of June 30, 2025. The Company’s existing sources of liquidity as of June 30, 2025 include cash and cash equivalents of $1.3 million. The Company has historically funded operations primarily with issuances of capital stock and the incurrence of debt. The Company is dependent on additional fundraising in order to sustain its ongoing operations.In April 2024, the Company executed a common stock purchase agreement (“Purchase Agreement”) with B. Riley Principal Capital II, LLC (“B. Riley”). Pursuant to the Purchase Agreement, the Company has the right, but not the obligation, to sell, from time to time, B. Riley up to $50.0 million worth of shares of the Company’s common stock at its request, at any time prior to June 2026, subject to compliance with the required conditions and limitations. Through June 30, 2025, the Company utilized $9.9 million of the contractual commitment amount under the Purchase Agreement.On April 1, 2025, the Company executed an at-market issuance sales agreement (“ATM Agreement”) with B. Riley Securities, Inc. and H.C. Wainwright & Co., LLC, acting as sales agents. The ATM Agreement allows the Company to sell its common stock for gross proceeds of up to $75.0 million from time to time, through at-the-market offerings or to the sales agents as principal purchasers (“ATM Offering”). During the three months ended June 30, 2025, the Company received net proceeds of approximately $0.5 million in cash related to the ATM Offering (see Note 8).On May 15, 2025, the Company entered into securities purchase agreements (“RDO Purchase Agreements”) with certain institutional investors (“Purchasers”) pursuant to which, the Company sold shares of common stock and warrants to purchase common stock to the Purchasers and received net proceeds of $9.9 million. The registered direct offering (“RDO”) closed on May 16, 2025 (see Note 8).To fund its operations over the longer term, the Company will need to start