Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 75

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 75
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arrants for shares of our Common Stock. Your aggregate tax basis in the shares of
Common Stock received in the redemption should equal your aggregate tax basis in your Warrants redeemed and your holding period for the
shares of Common Stock received in redemption of your Warrants should include your holding period for your surrendered Warrants.

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 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 “U.S. Holders-Taxation of Distributions” above. Such constructive distribution
would be subject to tax as described under that section in the same manner as if such U.S. Holder received a cash distribution from us
equal to the fair market value of such increased interest.

Non-U.S. Holders

Taxation of Distributions

In general,
any distributions (including constructive distributions) we make to a non-U.S. Holder of shares of our Common Stock, to the extent paid
out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends
for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the non-U.S. Holder’s conduct
of a trade or business within the United States, we will be required to withhold tax from the gross amount of the dividend at a rate of
30%, unless such non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides
proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E, as applicable). In the
case of any constructive dividend, it is possible that this tax would be withheld from any amount owed to a non-U.S. Holder