Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001279
Chunk: 97

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 97
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4. This decrease in product costs was driven primarily by the reduction in direct product costs as we sold fewer units. Service costs decreased by $0.4 million, or 22%, from $2.0 million for the year ended December 31, 2023 to $1.5 million for the year ended December 31, 2024. This decrease in service costs was driven primarily by the reduction in direct costs as we were engaged in service projects with lower scope. 39 Our gross margins increased to 56% for the year ended December 31, 2024 compared to 42% for the year ended December 31, 2023 primarily due to changes in the product and revenue offerings mix. Specifically, we increased the share of reference platform sales and generated higher margins from our service offerings during the year ended December 31, 2024. Research and Development Expenses Research and development expenses increased by $6.6 million, or 62% from $10.7 million for the year ended December 31, 2023 to $17.3 million for the year ended December 31, 2024, primarily in connection with our development projects. This increase reflects our 5G development program launched during 2024 and was primarily due to a $4.1 million increase in research and development expenses mainly related to professional services provided by Alpha related to the design of 5G chip products, a $2.0 million increase in development expenses related to our new 5G chip products, a $0.5 million increase in stock-based compensation expense due to issuance and vesting of share-based awards, and a $0.4 million increase in allocated overheads, partially offset by a $0.2 million decrease in pre-production costs and a $0.2 million reduction in support and maintenance. Sales and Marketing Expenses Sales and marketing expenses increased by $0.7 million, or 23%, from $3.2 million for the year ended December 31, 2023 to $3.9 million for the year ended December 31, 2024. This change was primarily due to a $0.2 million increase in temporary services, and a $0.1 million increase in each of personnel related costs, allocations, travel, and stock-based compensation. General and Administrative Expenses General and administrative expenses increased by $3.4 million, or 46%, from $7.4 million for the year ended December 31, 2023 to $10.8 million for