Company: GCTS
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0000950170-25-044438
Chunk: 168

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1B
Chunk 168
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, use of materials to repair or replace defective products, and service delivery costs incurred in correcting the product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. During the years ended December 31, 2024 and 2023, the product warranty reserve activity and balances were not material.Concentration of Credit RiskThe Company’s financial instruments subject to credit risk concentration consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents primarily with one financial institution located in the United States and another located in South Korea, where amounts deposited may exceed Federal Deposit Insurance Corporation or Korea Deposit Insurance Corporation limits. The Company’s accounts receivable balances are primarily derived from revenues recognized from customers located in the United States, China, South Korea, Japan, and Taiwan. The Company performs ongoing credit evaluations of the financial condition of its customers and distributors and generally does not require collateral.The Company’s net revenues and accounts receivable are concentrated among a few significant customers, which could expose the Company to financial risk in the event of adverse developments. The following represents the concentration of the Company’s gross accounts receivable among key customers to the extent their share exceeds 10%: 

          Customer
           
          December 31, 2024

          December 31, 2023

          Customer B

          13
          %

          27
          %

          Customer D

          —
          %

          10
          %

          Customer F

          22
          %

          19
          %

          Customer H

          13
          %

          14
          %

          Customer K

          27
          %

          —
          %
         
         The following table includes customers that individually accounted for more than 10% of the Company’s net revenues in the periods indicated: 

          Year EndedDecember 31,

          Customer
           
          2024

          2023

          Customer B

          —
          %

          19
          %

          Customer F

          16
          %

          *%

          Customer G

          —
          %

          19
          %

          Customer K

          22
          %

          —
          %

          Customer L

          10
          %

          *%

          Customer M

          25
          %

          —
          %
         
         *Less than 10%.Management closely monitors the creditworthiness and performance of these key customers and