Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 71

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 71
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 disposition of our Common Stock. Any such gain or loss
will be capital gain or loss, and will be long-term capital gain or loss if the U.S. Holder’s holding period for the Common Stock
so disposed of exceeds one year. The amount of gain or loss recognized will generally be equal to the difference between (1) the
sum of the amount of cash and the fair market value of any property received in such disposition and (2) the U.S. Holder’s
adjusted tax basis in its Common Stock so disposed of. A U.S. Holder’s adjusted tax basis in its Common Stock will generally equal
the U.S. Holder’s acquisition cost less any prior distributions treated as a return of capital. The deductibility of capital losses
is subject to limitations.

Redemption of Common Stock

In the
event that a U.S. Holder’s Common Stock is redeemed by us, including pursuant to an open market transaction, the treatment of the
transaction for U.S. federal income tax purposes will depend on whether the redemption qualifies as sale of the Common Stock under Section 302
of the Code. If the redemption qualifies as a sale of Common Stock under the tests described below, the tax consequences to the U.S. Holder
will be the same as described under “U.S. Holders-Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock” above. If the redemption does not qualify as a sale of Common Stock, the U.S. Holder will be treated as receiving a corporate
distribution, the tax consequences of which are described above under “U.S. Holders-Taxation of Distributions.” Whether
the redemption qualifies for sale treatment will depend primarily on the total number of shares of our stock treated as held by the U.S.
Holder (including any stock constructively owned by the U.S. Holder as a result of owning Warrants) both before and after the redemption.
The redemption of Common Stock will generally be treated as a sale of the Common Stock (rather than as a corporate distribution) if the
redemption (1) is “substantially disproportionate” with respect to the U.S. Holder, (2) results in a “complete
termination” of the U.S. Holder’s interest in us or (3) is “not essentially equivalent to a dividend” with
respect to the U.S. Holder. These tests are explained more fully below.

In determining
whether any of the foregoing tests are satisfied, a U.S. Holder takes into