Financial Data and Key Metrics Changes - In Q4 2024, net revenues were $1.8 million, contributing to a gross margin of 32.3% [6] - Total operating expenses were $7.9 million, resulting in a net loss of $5 million, a 51% reduction compared to Q4 2023 [6] - For the full year 2024, net revenues decreased by $6.9 million or 43% from $16 million in 2023 to $9.1 million [13] - Cost of net revenues decreased by $5.2 million or 56%, leading to an increase in gross margin to 56% from 42% in 2023 [15] Business Line Data and Key Metrics Changes - The decrease in product sales was primarily driven by a reduction of $5 million in LTE product sales and a decrease of $1.2 million in LTE platform sales as the company transitions to 5G [14] - Research and development expenses increased by $6.6 million or 62% due to increased 5G development activities [16] - Sales and marketing expenses increased by $0.7 million or 23% [17] - General and administrative expenses increased by $3.4 million or 46% [18] Market Data and Key Metrics Changes - The company is transitioning from 4G to 5G, with expectations that 5G chipset sales will significantly impact revenues starting in the second half of 2025 [5][8] - The market for 5G chipsets is expected to be transformative, with higher prices compared to 4G [8] Company Strategy and Development Direction - The company has launched the "2025 GCT Year of 5G Program" to focus on the development and mass production of 5G chipsets [7] - The strategy includes reducing debt and aligning the balance sheet with expected sales ramp [9][20] - The company aims to support existing customers transitioning from 4G to 5G while also launching new products [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming 5G chipset launch and its potential to transform the company and industry [10][22] - The company is in advanced discussions with potential investors to address near-term capital funding needs [12][21] - Management expects 4G revenues to persist as a steady revenue source through 2025 and 2026 [32] Other Important Information - The company reduced its debt from $79.9 million at the beginning of 2024 to $42.6 million by year-end [20] - Cash and cash equivalents at year-end were $1.4 million, with net accounts receivable of $5.7 million and net inventory of $3 million [19] Q&A Session Summary Question: Clarification on Q4 product revenues and service mix - In Q4, there were no platform sales, with all $660,000 in product revenue coming from 4G LTE chip sales [26] Question: Insights on 5G ramp and partnerships - The partnership with Aramco Digital is expected to contribute more in 2026, while 2025 will focus on existing partners launching products [30] Question: Expectations for 4G revenue persistence - 4G is expected to continue as a steady revenue source, with additional products supporting industrial applications [32] Question: Future cash burn expectations - Cash burn in Q4 was managed tightly, with expectations for similar levels in Q1, potentially increasing in Q2 with 5G chip shipments [37] Question: Adjusted EBITDA breakeven point - The adjusted EBITDA breakeven point remains modeled at around $25 million in sales [39]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net revenues of $1.8 million, contributing to a gross margin of 32.3% [6] - Total operating expenses were $7.9 million, resulting in a net loss of $5 million, which is a 51% reduction compared to Q4 2023 [6] - For the full year 2024, net revenues decreased by $6.9 million or 43% from $16 million in 2023 to $9.1 million in 2024 [13] - Cost of net revenues decreased by $5.2 million or 56%, leading to an increase in gross margin to 56% for 2024 compared to 42% in 2023 [15] Business Line Data and Key Metrics Changes - The decrease in full-year product sales was primarily driven by a reduction of $5 million in LTE product sales and a decrease of $1.2 million in LTE platform sales as the company transitions to 5G [14] - Research and development expenses increased by $6.6 million or 62% in 2024, primarily due to increased 5G development activities [16] - Sales and marketing expenses increased by $0.7 million or 23% in 2024, attributed to temporary services and personnel-related costs [17] Market Data and Key Metrics Changes - The company is transitioning from 4G to 5G, with expectations that 5G chipset sales will significantly impact revenues starting in the second half of 2025 [5][8] - The company anticipates that the launch of its 5G chipsets will be transformative for both the company and the industry, with higher market prices compared to 4G [8] Company Strategy and Development Direction - The company has introduced the "2025 GCT Year of 5G Program" to focus on the development and mass production of 5G chipsets [7] - The company is reducing debt and extending debt maturities to align with the expected ramp in 5G sales [9][20] - The management emphasizes the importance of the upcoming 5G chipset availability for future growth and profitability [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming 5G sales ramp and the potential for profitable growth [7][22] - The company expects 4G revenues to persist through 2025 and 2026, although it will not be a large contributor to growth [32] - Management is in advanced discussions with potential investors to address near-term capital funding needs [12][21] Other Important Information - The company reduced its debt from $79.9 million at the beginning of 2024 to $42.6 million by the end of the year [20] - Cash and cash equivalents at the end of 2024 were reported at $1.4 million, with net accounts receivable of $5.7 million and net inventory of $3 million [19] Q&A Session Summary Question: Clarification on Q4 product revenues and service mix - The CFO clarified that in Q4, there were no platform sales, and all product revenue of $660,000 came from 4G LTE chip sales [26] Question: Insights on 5G ramp and partnerships - Management indicated that while the partnership with Aramco Digital is further out, they expect contributions from existing partners in 2025 [30] Question: Expectations for 4G revenue persistence - Management confirmed that 4G revenues are expected to continue steadily through 2025 and 2026, with additional product launches planned [32][33] Question: Future cash burn expectations - The CFO noted that cash burn in Q1 is expected to remain at similar levels to Q4, with a potential ramp-up in the second half of 2025 [37] Question: Adjusted EBITDA breakeven point - The CFO stated that the adjusted EBITDA breakeven point remains around $25 million in sales, consistent with previous modeling [39]