Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001279
Chunk: 148

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 148
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). As of December 31, 2024, the Company had federal and state research credit carryforwards of approximately $2.7 million and $2.5 million, respectively. The federal research credit carryforwards will begin to expire in 2025 while the California research credits carryforward have an indefinite life. The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions. The Company may, in the future, experience one or more additional Section 382 “ownership changes.” If so, the Company may not be able to utilize some of its carryforwards or other tax attributes, even if the Company achieves profitability in the jurisdiction of the carryforwards or other tax attributes. The Company has not completed a study to assess whether a change of ownership has occurred, or whether there have been multiple ownership changes since its formation, due to the significant cost and complexity associated with such a study. Any limitation may

74 GCT SEMICONDUCTOR HOLDING, INC. Notes to Consolidated Financial Statements

result in expiration of a portion of the NOL carryforwards before utilization. Further, until a study is completed by the Company and any limitation is known, no amounts are being presented as an uncertain tax position.

A reconciliation of the unrecognized tax benefits as of December 31, 2024 and 2023 is as follows (in thousands):

|                                                                                    |     | Year Ended   
 December 31, |   2024 |   |     |   |   2023 |   |
|:-----------------------------------------------------------------------------------|:----|:-------------|-------:|:--|:----|:--|-------:|:--|
| Beginning gross unrecognized tax benefits                                          |     | $            |  3,083 |   |     | $ |  3,203 |   |
| Additions for tax position taken in a prior year                                   |