Company: GCTS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001193125-25-277777
Chunk: 5

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 1A
Chunk 5
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 do not generate sufficient level of revenue or become profitable, we will be required to seek other sources of funding, such as issuance of equity or debt securities to raise capital. Any such financings may not be accessible on acceptable terms, if at all. The failure to raise additional capital or otherwise obtain funding for our operation will have a material adverse effect on our business, results of operations and financial position.

Our indebtedness could adversely affect our operations, including our ability to perform our obligations and fund working capital.

As of September 30, 2025, we have outstanding convertible promissory notes and borrowings with a total principal amount of $64.4 million, of which $64.4 million is contractually due within 12 months from the reporting date. We may also incur substantial additional indebtedness. Our indebtedness could have important consequences, including the following: 

•we may be unsuccessful in refinancing our existing indebtedness on a long-term basis;

•we could have difficulty satisfying our debt obligations, and if we fail to comply with these requirements, an event of default could result;

•we may be required to dedicate a substantial portion of our cash flow from operations to required payments on indebtedness, thereby reducing the cash flow available to fund 5G and other product development, working capital, capital expenditures and other general corporate activities;

•in order to manage our debt and cash flows, we may increase our short-term indebtedness and decrease our long-term indebtedness which may not achieve the desired results;

•covenants relating to our indebtedness may limit our ability to obtain additional financing for working capital, capital expenditures and other general corporate activities, which may limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;

•we may be more vulnerable to general adverse economic and industry conditions;

•we may be placed at a competitive disadvantage compared to our competitors with less debt; and

•we may have difficulty repaying or refinancing our obligations under our senior credit facilities on their respective maturity dates.