Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001279
Chunk: 127

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 127
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 otherwise not precluded from equity classification based on their settlement provisions. Under the reverse recapitalization method of accounting, the fair value of the Sponsor Earnout Shares was treated as a deemed dividend and, in the absence of retained earnings, credited to additional paid-in capital without any impact on the stockholders’ deficit balances. In July 2024, the number of Sponsor Earnout Shares subject to the market-based vesting condition was reduced to 570,796 shares of the Company’s common stock, as the sponsor parties did not meet the required performance condition for the entire grant. The remaining 1,349,579 shares previously included in the outstanding common stock were forfeited. No adjustments to the stockholders’ deficit were required upon the forfeiture of the share-based awards that contained market conditions.

4. Disaggregation of Revenue

All product revenue presented in the consolidated statements of operations is recognized at a point in time, and all service revenue is recognized over time. Net revenues are categorized by customer location as follows (in thousands):

|               |     | Year Ended   
 December 31, |  2024 |     |   |   2023 |
|:--------------|:----|:-------------|------:|:----|:--|-------:|
| United States |     | $            | 4,167 |     | $ |  5,056 |
| South Korea   |     |              | 3,500 |     |   |  4,260 |
| Germany       |     |              |   944 |     |   |  1,422 |
| China         |     |              |   322 |     |   |  4,745 |
| Taiwan        |     |              |   195 |     |   |    543 |
| Other         |     |              |     — |     |   |      2 |
| Total         |     | $            | 9,128 |     | $ | 16,028 |

Contract Assets and Liabilities Net revenues recognized during the years ended December 31, 2024 and 2023 for the amounts included in the contract liabilities balance at the beginning of the respective annual periods are less than $0.1 million and $0.7 million, respectively. The balances related to contract fulfillment were immaterial as of December 31, 2024 and 2023.

5. Fair Value of Measurements Recurring Fair Value Measurements

The following financial instruments are measured at fair value on