Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 78

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 78
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 such disposition.
We will be classified as a United States real property holding corporation if the fair market value of our “United States real property
interests” equals or exceeds 50% of the sum of the fair market value of our worldwide real property interests plus our other assets
used or held for use in a trade or business, as determined for U.S. federal income tax purposes. We do not believe we currently are or
will become a United States real property holding corporation, however there can be no assurance in this regard. Non-U.S. Holders are
urged to consult their tax advisors regarding the application of these rules.

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Possible Constructive Distributions

The terms
of each Warrant provide for an adjustment to the number of shares of Common Stock for which the Warrant may be exercised or to the exercise
price of the Warrant in certain events, as discussed in the section of this prospectus captioned “Description of Securities - Warrants.” An adjustment which has the effect of preventing dilution is generally not a taxable event. Nevertheless, a non-U.S.
Holder of Warrants would be treated as receiving a constructive distribution from us if, for example, the adjustment increases the holder’s
proportionate interest in our assets or earnings and profits (e.g., through an increase in the number of shares of Common Stock that would
be obtained upon exercise) as a result of a distribution of cash to the holders of shares of our Common Stock which is taxable to such
holders as a distribution, as described under “Non-U.S. Holders-Taxation of Distributions” above. A non-U.S. Holder
would be subject to U.S. federal income tax withholding under that section in the same manner as if such non-U.S. Holder received a cash
distribution from us equal to the fair market value of such increased interest without any corresponding receipt of cash.

Redemption of Common Stock

The characterization
for U.S. federal income tax purposes of the redemption of a non-U.S. Holder’s Common Stock will generally correspond to the U.S.
federal income tax characterization of such a redemption of a U.S. Holder’s Common Stock, as described under “U.S. Holders-Redemption of Common Stock” above, and the consequences of the redemption to the non-U.S. Holder will be as described above under “Non-U.S. Holders-Taxation of Distributions” and “Non-U.S. Holders-Gain on Sale, Exchange or Other Tax