Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001279
Chunk: 141

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 141
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 of its liability to Samsung. During the first quarter of 2024, the parties mutually agreed that the agreement had expired and there were no remaining obligations of either party under the agreement. Alpha Foundry Product Development Agreement In February 2024, the Company and Alpha Holdings Co., Ltd. (“Alpha”) entered into a foundry product development agreement related to 5G chip development for a total fee of $7.6 million. The Company bears the risk of R&D failure and is obligated to pay the fee based on milestones defined in the agreement. The Company recognizes R&D expenses based on an estimate of the percentage completion of services provided by Alpha during the respective financial reporting period. For the year ended December 31, 2024, the Company recorded $6.7 million in R&D expenses related to services provided by Alpha. As of December 31, 2024, the outstanding short-term purchase obligations to Alpha were $0.9 million. The aggregate unpaid amount related to this agreement was $4.0 million as of December 31, 2024. 68 GCT SEMICONDUCTOR HOLDING, INC. Notes to Consolidated Financial Statements

Assets Pledged as Collateral The Company has provided collateral to Anapass, Inc., a related party (see Note 14), for borrowings from KEB Hana Bank, IBK Industrial Bank and Anapass, Inc. in the amount of $6.1 million, $6.3 million and $12.2 million, respectively, as of December 31, 2024, and $7.0 million, $7.1 million and $10.1 million, respectively, as of December 31, 2023 (see Note 7).

The following table includes a summary of the carrying amounts related to collateral provided to Anapass, Inc. (in thousands):

|                             |     | 2024 | December 31, |     | 2023 | December 31, |
|:----------------------------|:----|:-----|-------------:|:----|:-----|-------------:|
| Cash and cash equivalents   |     | $    |          654 |     | $    |          254 |
| Accounts receivable         |     |      |        5,927 |     |      |        4,920 |
| Inventory                   |     |      |        2,977 |     |      |        1,486 |
| Property and equipment      |     |      |