Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001279
Chunk: 147

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 147
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200 | ) |     |   | (97,628 | ) |
| Net deferred tax assets                     |     |              |     314 |   |     |   |     749 |   |
| Deferred tax liabilities                    |     |              |         |   |     |   |         |   |
| Revaluation of convertible promissory notes |     |              |    (133 | ) |     |   |    (448 | ) |
| Contract assets                             |     |              |      (1 | ) |     |   |      (3 | ) |
| Right-of-use assets                         |     |              |    (180 | ) |     |   |    (298 | ) |
| Gross deferred tax liabilities              |     |              |    (314 | ) |     |   |    (749 | ) |
| Net deferred income tax                     |     | $            |       — |   |     | $ |       — |   |

Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction-by-jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. The Company’s management believes that, based on a number of factors, it is more likely than not, that all or some portion of the deferred tax assets will not be realized; and accordingly, for the year ended December 31, 2024 and 2023, the Company has provided a valuation allowance against the Company’s U.S. net deferred tax assets. The valuation allowance increased by $1.5 million and $3.2 million for the years ended December 31, 2024 and 2023, respectively. The Company had net operating loss carryforwards (“NOL”) for federal, state and foreign income tax purposes of approximately $323.0 million, $55.4 million and $23.2 million, respectively, as of December 31, 2024. State NOL will begin to expire in 2028, $197.5 million of the Company’s federal NOL’s will begin to expire in 2025, and $125.5 million of the Company’s federal NOL will last indefinitely (limited to 80% of taxable income in a given year