Company: GCTS
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0000950170-25-044438
Chunk: 7

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 7
Chunk 7
---

    %

    Change in fair value of common stock warrant liabilities

    2,208

    —

    2,208

    100
    %

    Change in fair value of convertible promissory notes

    (1,470
    )

    (1,428
    )

    (42
    )

    3
    %

    Loss from initial recognition of common stock forward liability

    (586
    )

    —

    (586
    )

    100
    %

    Other income, net

    213

    38

    175

    461
    %

    Loss before provision for income taxes

    (11,934
    )

    (21,928
    )

    9,994

    (46
    )%

    Provision for income taxes

    445

    541

    (96
    )

    (18
    )%

    Net loss
     
    $
    (12,379
    )
     
    $
    (22,469
    )
     
    $
    10,090

    (45
    )%

Net Revenues

Net revenues decreased by $6.9 million, or 43%, from $16.0 million for the year ended December 31, 2023 to $9.1 million for the year ended December 31, 2024. The decrease was due to a decrease of $6.2 million in product sales and a decrease of $0.7 million in service revenue.

Product sales decreased by $6.2 million, or 57%, from $11.0 million for the year ended December 31, 2023 to $4.8 million for the year ended December 31, 2024. This decrease is driven by a reduction of $5.0 million of LTE product sales and a decrease of $1.2 million in LTE platform sales. This trend was primarily due to the changing priorities of our largest customers that shifted their focus to the next generation 5G products. Our net revenues are expected to increase with these customers after we launch our 5G products. 

Service revenues decreased by $0.7 million, or 14%, from $5.1 million for the year ended December 31, 2023 to $4.4 million for the year ended December 31, 2024. This decrease was due to the timing and scope of our service projects for LTE products.