Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001281
Chunk: 130

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 130
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 HOLDING, INC. Notes to Consolidated Financial Statements

Intangibles, net For the years ended December 31, 2024 and 2023, amortization expense related to the Company’s intangible assets was $0.2 million and $0.4 million, respectively. Leases The Company also has several noncancellable operating leases, primarily for office equipment and office space that expire over the next two years. The Company’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease contracts include fixed payments plus, for many of the Company’s leases, variable payments. For office space leases, variable payments include payments for the Company’s proportionate share of the building’s property taxes, insurance, and common area maintenance. For office equipment leases for which the Company has elected not to separate lease and non-lease components, maintenance services are provided by the lessor at a fixed cost and are included in the fixed lease payments for the single, combined lease component. The Company also elected to discount its office equipment lease liabilities using a risk-free rate. Operating lease expense was $0.8 million for each of the years ended December 31, 2024 and 2023.

Other information related to operating leases was as follows:

|                                       |     | December 31, |      |   |     | December 31, |      |   |
|                                       |     |         2024 |      |   |     |         2023 |      |   |
| Weighted average remaining lease term |     |   1.36 years |      |   |     |   2.25 years |      |   |
| Weighted average discount rate        |     |              | 4.25 | % |     |              | 4.66 | % |

Maturities of operating lease liabilities under noncancellable leases are as follows (in thousands):

|                                   |     | Amount |     |   |
|:----------------------------------|:----|:-------|----:|:--|
| 2025                              |     | $      | 717 |   |
| 2026                              |     |        | 183 |   |
| Total undiscounted lease payments |     |        | 900 |   |
| Less: imputed interest            |     |        | (26 | ) |
| Total operating lease liabilities |     | $      | 874 |   |

Accrued and