Silvaco Group, Inc. Common Stock (SVCO) 10-Q 20 Jun 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	Jun. 17, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-42043
Entity Registrant Name	Silvaco Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1503712
Entity Address, Address Line One	4701 Patrick Henry Drive
Entity Address, Address Line Two	Building #23
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	408
Local Phone Number	567-1000
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	SVCO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,294,217
Document Fiscal Year Focus	2024
Entity Central Index Key	0001943289
Amendment Flag	false
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash	$ 5,739	$ 4,421
Accounts receivable, net	5,562	4,006
Contract assets, net	9,240	8,749
Prepaid expenses and other current assets	1,748	2,549
Deferred transaction costs	1,943	1,163
Total current assets	24,232	20,888
Long-term assets:
Property and equipment, net	656	591
Operating lease right-of-use assets, net	2,157	1,963
Intangible assets, net	273	342
Goodwill	9,026	9,026
Long-term portion of contract assets, net	8,961	6,250
Other assets	2,057	1,825
Total long-term assets	23,130	19,997
Total assets	47,362	40,885
Current liabilities:
Accounts payable	3,332	2,495
Accrued expenses and other current liabilities	9,945	10,255
Accrued income taxes	2,185	1,626
Deferred revenue, current	7,935	7,882
Operating lease liabilities, current	817	735
Related party line of credit	2,016	2,000
Total current liabilities	26,230	24,993
Long-term liabilities:
Deferred revenue, non-current	4,737	5,071
Operating lease liabilities, non-current	1,320	1,198
Long-term loan facility	4,283	0
Other long-term liabilities	197	221
Total liabilities	36,767	31,483
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, $0.0001 par value; 25,000,000 shares authorized; 20,000,000 shares issued and outstanding	2	2
Retained earnings	12,770	11,392
Accumulated other comprehensive loss	(2,177)	(1,992)
Total stockholders' equity	10,595	9,402
Total liabilities and stockholders' equity	$ 47,362	$ 40,885

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	25,000,000	25,000,000
Common stock, issued (in shares)	20,000,000	20,000,000
Common stock, outstanding (in shares)	20,000,000	20,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Gross profit
Total revenue	$ 15,889	$ 14,291
Cost of revenue	1,973	2,025
Gross profit	13,916	12,266
Operating expenses:
Research and development	3,616	3,375
Selling and marketing	3,312	2,805
General and administrative	4,600	4,553
Total operating expenses	11,528	10,733
Operating income	2,388	1,533
Interest and other expense, net	205	331
Income before income tax provision	2,183	1,202
Income tax provision	805	388
Net income	$ 1,378	$ 814
Earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.07	$ 0.04
Diluted (in dollars per share)	$ 0.07	$ 0.04
Weighted average shares used in computing per share amounts:
Basic (in shares)	20,000,000	20,000,000
Diluted (in shares)	20,000,000	20,000,000
Software license revenue
Gross profit
Total revenue	$ 12,258	$ 10,665
Maintenance and service
Gross profit
Total revenue	$ 3,631	$ 3,626

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 1,378	$ 814
Other comprehensive (loss) income:
Foreign currency translation adjustments	(185)	88
Comprehensive income	$ 1,193	$ 902

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (in shares) at Dec. 31, 2022				20,000,000	20,000,000
Beginning balance at Dec. 31, 2022	$ 10,023	$ (220)	$ 9,803	$ 2	$ 2	$ 11,928	$ (220)	$ 11,708	$ (1,907)	$ (1,907)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	88								88
Net income	814					814
Ending balance (in shares) at Mar. 31, 2023				20,000,000
Ending balance at Mar. 31, 2023	$ 10,705			$ 2		12,522			(1,819)
Beginning balance (in shares) at Dec. 31, 2023	20,000,000			20,000,000
Beginning balance at Dec. 31, 2023	$ 9,402			$ 2		11,392			(1,992)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(185)								(185)
Net income	$ 1,378					1,378
Ending balance (in shares) at Mar. 31, 2024	20,000,000			20,000,000
Ending balance at Mar. 31, 2024	$ 10,595			$ 2		$ 12,770			$ (2,177)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 1,378	$ 814
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	120	166
Gain on disposal of fixed assets	(10)	0
Provision for credit losses	222	21
Change in fair value of contingent consideration	(8)	265
Changes in operating assets and liabilities:
Accounts receivable	(1,844)	(3,718)
Contract assets	(3,679)	889
Prepaid and other current assets	788	(232)
Other assets	(274)	0
Accounts payable	877	513
Accrued expenses	(670)	(1,248)
Accrued income taxes	574	242
Deferred revenue	(21)	2,888
Other current liabilities	(49)	146
Other long-term liabilities	24	(245)
Net cash (used in) provided by operating activities	(2,572)	501
Cash flows from investing activities:
Purchases of property and equipment	(10)	(177)
Net cash used in investing activities	(10)	(177)
Cash flows from financing activities:
Proceeds from loan facility	4,250	0
Contingent consideration	(13)	(582)
Deferred transaction costs	(364)	0
Net cash provided by (used in) financing activities	3,873	(582)
Effect of exchange rate fluctuations on cash	27	75
Net increase (decrease) in cash	1,318	(183)
Cash, beginning of period	4,421	5,478
Cash, end of period	$ 5,739	$ 5,295

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Silvaco Group, Inc. (“Silvaco,” and together with its subsidiaries, the “Company”) was incorporated as a Delaware corporation on November 18, 2009. The Company is a provider of technology computer aided design (“TCAD”) software, electronic data automation (“EDA”) software and semiconductor intellectual property (“SIP”). TCAD, EDA and SIP solutions enable semiconductor and photonics companies to increase productivity, accelerate their products’ time-to-market and reduce their development and manufacturing costs. The Company has decades of expertise developing the “technology behind the chip” and providing solutions that span from atoms to systems, starting with providing software for the atomic level simulation of semiconductor and photonics material for devices, to providing software and SIP for the design and analysis of circuits and system level solutions. The Company provides SIP for system-on-a-chip (“SoC”), integrated circuits (“ICs”) and SIP management tools to enable team collaborations on complex SoC designs. The Company’s customers include semiconductor manufacturers, original equipment manufacturers (“OEMs”) and design teams who deploy the Company’s solutions in production flows across the Company’s target markets, including display, power devices, automotive, memory, high performance computing (“HPC”), internet of things (“IoT”) and 5G/6G mobile markets. Initial Public Offering In May 2024, the Company completed its initial public offering (“IPO”), in which it issued and sold 6,000,000 shares of its common stock at the public offering price of $19.00 per share. The Company received gross proceeds of $114.0 million, with $106.0 million funded to the Company after deducting underwriting discounts and commissions. See Note 13 , Subsequent Events, for further discussion.

Summary of Significant Accounti

Summary of Significant Accounting and Reporting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting and Reporting Policies	Summary of Significant Accounting and Reporting Policies Basis of presentation and consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") and include the accounts of Silvaco and all of the Company's wholly owned subsidiaries with operations in North America, Europe, Asia and South America. All intercompany transactions and balances have been eliminated upon consolidation. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted from these condensed consolidated financial statements, as permitted by Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with its audited consolidated financial statements for the year ended December 31, 2023 and the related notes thereto included in the Company’s final prospectus relating to the initial public offering, dated May 8, 2024 (the “Prospectus”), relating to the Registration Statement on Form S-1 (File No. 333-278666), as amended (“Registration Statement”), filed with the SEC on May 10, 2024, pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (“Securities Act”). The December 31, 2023 condensed consolidated balance sheet was derived from the audited consolidated financial statements as of that date. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the condensed consolidated financial statements. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the Company’s operating results to be expected for the full fiscal year or any other future interim or annual period. Revision of Prior Financial Statements For the three months ended March 31, 2023, accrued expenses and general and administrative expenses were understated by $0.2 million in the Company’s condensed consolidated balance sheet and condensed consolidated statement of income, respectively, due to certain accruals for professional services rendered not being recorded. The Company has determined that such errors are immaterial and has increased accrued expenses and other current liabilities and general and administrative expenses to correct these immaterial errors. Emerging growth company status The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company will remain an emerging growth company until the earliest of (i) the last day of the first fiscal year (a) following the fifth anniversary of the completion of the Company’s initial public offering (“IPO”), (b) in which the Company’s total annual gross revenue is at least $1.2 billion, or (c) when the Company is deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the prior June 30th and (ii) the date on which the Company has issued more than $1.0 billion in non-convertible debt securities during the prior three-year period. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the amounts of revenue and expenses during the reported periods. The Company’s most significant estimates relate to revenue recognition. Other estimates include, but are not limited to, accounts receivable allowances, stock-based compensation, valuation of goodwill and other intangible assets, contingent consideration, uncertain tax positions and income taxes. Actual results could differ from those estimates. Stock split On April 29, 2024, the Company effected a 1-for-2 reverse split of its common stock. Upon the effectiveness of the reverse stock split, (i) every two shares of outstanding common stock was combined into a single share of common stock, (ii) the number of shares of common stock to be granted upon the vesting of each outstanding restricted stock unit (“RSU”) was proportionally decreased on a 2-for-1 basis, and (iii) the fair value of each outstanding RSU was proportionately increased on a 1-for-2 basis. All of the outstanding common stock share numbers, RSUs, RSU fair values and per share amounts have been adjusted, on a retroactive basis, to reflect this 1-for-2 reverse stock split for all periods presented. The par value per share and authorized number of shares of common stock were not adjusted as a result of the reverse stock split. Concentrations of credit risk As of March 31, 2024, none of the Company’s customers represented more than 10% of the Company’s accounts receivable. As of December 31, 2023, two customers represented 20% and 15% of the Company’s accounts receivable. During the three months ended March 31, 2024 one customer represented 11% of the Company’s total revenue. None of the Company’s customers represented more than 10% of the Company’s total revenue for the three months ended March 31, 2023. In addition to the concentration of credit risk with respect to trade receivables, the Company's cash on deposit with financial institutions is also exposed to concentration risk. The Company's cash on deposit with financial institutions are insured through various public and private bank deposit insurance programs, foreign and domestic; however, a significant portion of cash balances held as of March 31, 2024 and December 31, 2023 exceeded insured limits. As of March 31, 2024, $3.0 million, or 52%, of the Company’s cash was maintained with one financial institution, where the Company’s current deposits are in excess of federally insured limits. Past macroeconomic conditions have resulted in the actual or perceived financial distress of many financial institutions, including the failures of Silicon Valley Bank, Signature Bank, First Republic Bank and the UBS takeover of Credit Suisse. If the financial institutions with whom the Company does business were to be placed into receivership, the Company may be unable to access the cash it has on deposit with such institutions. If the Company is unable to access its cash as needed, the Company’s financial position and ability to operate its business could be adversely affected. Allowance for credit losses The Company assesses its ability to collect outstanding receivables and contract assets and provides customer-specific allowances, allowances for credit losses for the portion of receivables and contract assets that are estimated to be uncollectible. Allowances for credit losses are based on historical collection experience and expected credit losses, customer specific financial condition, current economic trends in the customer's industry and geographic region, changes in customer demand and the overall economic climate in the market the Company serves. Provisions for the allowance for expected credit losses attributable to bad debt are recorded as general and administrative expenses. Account balances deemed uncollectible are written off, net of actual recoveries. If circumstances related to specific customers or the market the Company serves change, the Company’s estimate of the recoverability of its accounts receivable and contract assets could be further adjusted. The Company does not have any material account receivable or contract asset balances that are past due and has not written off any significant balances in its portfolio against the allowance for credit losses for the periods presented. The Company’s provision for credit losses was $0.2 million and $21,000 for the three months ended March 31, 2024 and 2023, respectively. The Company’s allowance for expected credit losses on accounts receivable and contract assets, in the aggregate, was $0.8 million and $0.5 million as of March 31, 2024 and December 31, 2023, respectively. Foreign currencies The financial statements of Silvaco's international subsidiaries with local functional currencies are translated to U.S. dollars upon consolidation. Assets and liabilities are translated at the effective exchange rate on the balance sheet date. Results of operations are translated at average exchange rates, which approximate rates in effect when the underlying transactions occur. For the three months ended March 31, 2024 and 2023, the Company recorded foreign currency translation adjustments of $(0.2) million and $0.1 million, respectively, within accumulated other comprehensive loss. Certain sales and intercompany transactions are denominated in foreign currencies. These transactions are recorded in functional currency at the appropriate exchange rate on the transaction date. Monetary assets and liabilities denominated in a currency other than the Company's functional currency or its subsidiaries' functional currencies are remeasured at the effective exchange rate on the balance sheet date. Gains and losses resulting from foreign exchange transactions are included in interest and other expense, net. The Company recorded net foreign exchange transaction losses of $0.1 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively. Accumulated other comprehensive loss Accumulated other comprehensive loss is composed entirely of foreign currency translation adjustments. Earnings per share (EPS) Basic EPS is computed based on the weighted average number of shares of common stock outstanding. Diluted EPS is computed based on the weighted average number of common shares outstanding increased by dilutive common stock equivalents, attributable to RSU grants. The following outstanding securities for the three months ended March 31, 2024 and 2023 were excluded from the computation of diluted earnings per share because the issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied as of March 31, 2024. See Note 8 , Restricted Stock Units for additional information. March 31, 2024 2023 RSU Grants 4,302,178 3,047,234 Recently adopted accounting pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The Company adopted this standard on January 1, 2024 and the adoption did not impact the condensed consolidated financial statements. Accounting guidance issued and not yet adopted In November 2023, the FASB issued Accounting Standards Update ASU 2023-07, Segment Reporting (Topic 280) : Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an interim and annual basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal periods beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the guidance on the condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740) : Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on the condensed consolidated financial statements and related disclosures.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company's revenue is derived principally from contracts which promise to deliver combinations of software licensing and related maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns. The transaction price is allocated to each distinct performance obligation based on the relative standalone selling price. Software license revenue consists of the Company’s software sold under a software license. Revenue related to stand-alone software applications are generally recognized upon shipment and delivery of license keys. For certain arrangements revenue is recognized based on usage or ratably over the term of the arrangement. Maintenance and service revenue consists of both maintenance revenues and professional services revenues which is recognized based on usage or ratably over the term of the arrangement. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a contract asset when revenue is recognized prior to invoicing, an accounts receivable upon invoicing or deferred revenue when invoicing precedes revenue recognition. Customer contracts The Company accounts for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights and payment terms can be identified, the contract has commercial substance, and it is probable the Company will collect substantially all of the consideration it is entitled to. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised software or providing service to a customer. For multi-year software licenses, the Company generally invoices customers annually at the beginning of each annual coverage period. Transaction Price Allocated to the Remaining Performance Obligations As of March 31, 2024, approximately $29.1 million of revenue is expected to be recognized from remaining performance obligations. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. The Company's backlog represents installment billings for periods beyond the current billing cycle. The Company expects to recognize revenue on approximately 49% of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. Deferred Revenue Deferred revenue is comprised mainly of unearned revenue related to maintenance and service on software licenses and pending software license deliveries. Maintenance and service revenue is recognized ratably over the coverage period. Software license revenue is recognized upfront upon delivery of the licensed software. Deferred revenue also includes contracts for professional services to be performed in the future which are recognized as revenue when the company delivers the related service pursuant to the terms of the customer arrangement. During the three months ended March 31, 2024, the Company recognized revenue of $2.3 million that was included in the total deferred revenue balance at December 31, 2023. All other activity in deferred revenue is due to the

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	Leases The Company’s headquarters are located in Santa Clara, California, where the Company has an operating lease covering its corporate office expiring in March of 2025. The Company also has operating leases in Duluth, Georgia, and abroad, in Japan, France, China, the United Kingdom, Taiwan, Singapore, and Korea, among other countries. The expiration dates for these operating leases range from 2024 through 2029. As of March 31, 2024 and December 31, 2023, the Company’s operating lease right-of-use assets and operating lease liabilities were as follows: March 31, December 31, 2024 2023 (in thousands) Operating lease right-of-use assets, net $ 2,157 $ 1,963 Operating lease liabilities, current 817 735 Operating lease liabilities, non-current $ 1,320 $ 1,198 The components of operating lease cost during the periods presented were as follows: Three Months Ended March 31, 2024 2023 (in thousands) Operating lease cost $ 230 $ 256 Variable lease cost (1) 60 24 Total operating lease cost $ 290 $ 280 (1) Variable lease cost includes common area maintenance, utilities, security, insurance and property taxes. Additional information related to the Company’s operating leases for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, 2024 2023 (in thousands) Cash paid for operating lease liabilities $ 222 $ 256 Right-of-use assets obtained in exchange for lease obligations $ 567 $ — Weighted average remaining lease term (in years) 3.85 4.47 Weighted average discount rate 3.83 % 4.13 % As of March 31, 2024 maturities of operating lease liabilities were as follows: Year Ending December 31, Amount (in thousands) Remainder of 2024 $ 622 2025 652 2026 382 2027 219 2028 194 Thereafter 194 Total lease payments $ 2,263 Less: imputed interest (126) Total operating lease liabilities $ 2,137 Current portion of lease liability $ 817 Non-current portion of lease liability $ 1,320

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets There were no changes in goodwill during the three months ended March 31, 2024 and 2023. As of March 31, 2024 intangible assets were classified as follows: March 31, 2024 Intangible assets: Weighted Average Amortization Period (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology 5 $ 800 $ (547) $ 253 Customer relationships 5 90 (77) 13 Non-compete agreements 5 20 (13) 7 Total intangible assets $ 910 $ (637) $ 273 December 31, 2023 Intangible assets: Weighted Average Amortization Period (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology 5 $ 2,660 $ (2,367) $ 293 Customer relationships 5 2,416 (2,374) 42 Non-compete agreements 5 179 (172) 7 Total intangible assets $ 5,255 $ (4,913) $ 342 Amortization expense for intangible assets was $0.1 million during each of the three months ended March 31, 2024 and 2023. As of January 1, 2024, the Company removed the carrying value of $4.3 million of fully amortized intangible assets which at time of removal had nil net book value. As of March 31, 2024, estimated future amortization expense for the intangible assets reflected above was as follows: Year Ending December 31, Amount (in thousands) Remainder of 2024 $ 136 2025 137 Total net carrying value of intangible assets $ 273

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Parties	Related Parties The Company has a commercial lease agreement with Kipee International, Inc., a related party controlled by Katherine Ngai-Pesic, who is the Company's founding principal stockholder and chairperson of the Board of Directors, for Silvaco's corporate office in Santa Clara, California. In connection with this lease arrangement, the Company recorded rent expense of $0.1 million during each of the three months ended March 31, 2023 and 2024, respectively. The Company's right-of-use asset and operating lease liability under this three year arrangement, which commenced on May 1, 2022 and expires on March 31, 2025, is $0.2 million as of March 31, 2024. The Company has two international office leases with New Horizons (Cambridge) LTD (“NHC”) and New Horizons France (“NHF”) in Cambridgeshire, England and Grenoble, France, respectively. NHC and NHF are real estate entities owned and controlled by Ms. Ngai-Pesic. In connection with these lease arrangements, the Company recorded rent expense of $0.1 million during each of the three months ended March 31, 2024 and 2023. The Company's right-of-use asset and operating lease liability under the NHC lease, which expires on December 31, 2029, is $1.0 million as of March 31, 2024. The Company's right-of-use asset and operating lease liability under the NHF lease, which expires on April 30, 2026, is $0.1 million as of March 31, 2024. On June 13, 2022, Silvaco entered into a $4.0 million line of credit with Ms. Ngai-Pesic (the “2022 Credit Line”). In connection with this line of credit, the Company recorded interest expense of $0.1 million and $44,000 during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the principal balance of this line of credit was $2.0 million. See Note 7 , Debt, and No te 13 , Subsequent Events, for further discussion. In February of 2012, Gu-Guide LP, a real estate entity controlled by Ms. Ngai-Pesic, Bank of the West and Silvaco Group, Inc., as guarantor, entered into a loan agreement pursuant to which Bank of the West agreed to lend Gu-Guide LP certain amounts of money (the “Loan”). The Loan is secured by a building representing a total of 9,000 square feet located at 4701 Patrick Henry Drive, Santa Clara, California 95054. In the event that the proceeds from the foreclosure of the foregoing collateral are insufficient to repay the outstanding amounts under the Loan, Silvaco Group Inc. has guaranteed the repayment of the outstanding amounts under the Loan. As of March 31, 2024, $0.8 million is outstanding under the Loan which matures on August 1, 2024. A member of the Company’s board of directors also serves as chairman of the board for one of Silvaco’s customers. During the three months ended March 31, 2024, the Company recorded $0.5 million in software revenue from this customer. As of March 31, 2024, the balance of the Company’s accounts receivable and contract assets with this customer was $0.2 million and $0.3 million, respectively.

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt On June 13, 2022, Silvaco entered into the 2022 Credit Line which bears interest at a rate of prime plus 1% per annum. As of March 31, 2024 and December 31, 2023, the principal balance of the 2022 Credit Line was $2.0 million. Subsequent to the Company’s IPO on May 13, 2024, the 2022 Credit Line was repaid in full and is set to expire on June 13, 2024. See N ote 13 for further discussion. In December 2023, the Company entered into a loan facility with East West Bank (the “East West Bank Loan”) which has a maturity date of December 14, 2025 and provides for borrowings of up to $5.0 million bearing interest at a per annum rate equal to one half of one percent (0.5%) above the greater of (i) the prime rate or (ii) four and one half percent (4.5%). The Company drew $4.3 million on the East West Bank Loan during the three months ended March 31, 2024. The balance on the East West Bank Loan as of March 31, 2024 was $4.3 million, and the Company was in compliance with all covenants. During the three months ended March 31, 2024, the Company recorded interest expense of $0.1 million on the East West Bank Loan. Subsequent to the Company’s IPO, on May 13, 2024, the East West Bank Loan was repaid in full and terminated. See Note 13 for further discussion.

Restricted Stock Units

Restricted Stock Units	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Restricted Stock Units	Restricted Stock Units On March 18, 2024, the number of shares of common stock reserved for issuance of RSU under the Company’s 2014 Stock Incentive Plan (the “2014 Plan”) was increased to 4.6 million and the term of the 2014 Plan was extended to March 18, 2034. The RSUs generally have two vesting requirements, a time and service-based requirement (the “Time-Based Requirement”) and a liquidity event requirement (the “Liquidity Event Requirement”). The Liquidity Event Requirement will be satisfied as to any then-outstanding RSUs on the first to occur of: (1) a change in control event (as defined in the award agreement) or (2) the first sale of common stock pursuant to an underwritten IPO, in either case, within 10 years of the grant date. The Time-Based Requirement generally requires four years for full vesting of the grants, with 25% vesting after one year and quarterly vesting over the subsequent three years. Certain grants have had modified time-based vesting requirements, including certain grants that have been issued with the Time-Based Requirement satisfied on the grant date. On April 26, 2024, in connection with the Company’s IPO, our board of directors approved and adopted, subject to stockholder approval, the 2024 Stock Incentive Plan (“2024 Plan”), and our stockholders approved the 2024 Plan on April 29, 2024. The 2024 Plan became effective on May 8, 2024 and supersedes our 2014 Plan. The following table summarizes the Company's RSU activity for the three months ended March 31, 2024: Weighted Average Restricted Stock Units Grant Date Fair Value Remaining Contract Term (in years) Granted Time Vested Time Non-Vested Balance as of December 31, 2023 $ 7.20 6.56 3,398,276 2,060,651 1,337,625 Granted 15.65 9.87 957,525 — 957,525 Vested 5.85 9.17 — 94,474 (94,474) Forfeited / canceled 8.25 5.36 (53,623) — (53,623) Balance as of March 31, 2024 $ 9.09 7.12 4,302,178 2,155,125 2,147,053 During the three months ended March 31, 2024, the grant date fair value of the RSU awards was derived from an interpolation based on the contemplated listing price of the Company’s anticipated IPO. Historically the Company has not recorded stock-based compensation expense for the RSUs, due to the Liquidity Event Requirement not being probable. The Company has valued the unrecorded stock-based compensation expense, using historical estimates of the fair value of the Company's common stock. Should the Liquidity Event Requirement (“Liquidity Event”) become probable, the Company would incur stock-based compensation expense associated with (i) active employees and service providers who have fulfilled or are in the process of fulfilling the Time Based Requirement, (ii) certain former employees and service providers whose RSUs become vested in connection with the Liquidity Event, and (iii) the acceleration of the Time Based Requirement for certain awards to executive officers, senior management and directors as a result of Liquidity Event. As of March 31, 2024, the Company had 4,302,178 outstanding RSUs. The total grant date fair value of such outstanding RSUs in unrecognized stock-based compensation expense is $39.1 million. The 2,155,125 RSUs which have contractually met the Time-Based Requirement as of March 31, 2024, have a grant date fair value of $12.8 million. The remaining 2,147,053 RSUs which have not met the Time-Based Requirement as of March 31, 2024, have a grant date fair value of $26.3 million. On May 13, 2024, the Liquidity Event Requirement was satisfied with the completion of the Company’s IPO. See Note 13 for further discussion. As a result, effective with the Company’s IPO, the Company will record cumulative stock-based compensation expense for the service period through such date using the straight-line attribution method, net of actual forfeitures, based on the grant-date fair value of the RSU awards. Had the IPO and Liquidity Event been completed on March 31, 2024, the Time Based Requirement would be accelerated in accordance with their terms for an additional

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s provision for income taxes consists principally of state and local, and foreign taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. For the three months ended March 31, 2024 and 2023 the Company recorded an income tax provision of $0.8 million and $0.4 million, respectively. The effective tax rate for the three months ended March 31, 2024 and 2023 was 37% and 32%, respectively. The Company determines its income tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items occurring during the periods presented. The difference between its effective tax rate and the federal statutory rate is primarily attributable to state income taxes, foreign income taxes, the effect of certain permanent differences, and a full valuation allowance against net deferred tax assets. Management establishes a valuation allowance for those deductible temporary differences when it is more likely than not that the benefit of such deferred tax assets will not be recognized. The ultimate realization of deferred tax assets is dependent upon the Company's ability to generate taxable income during periods in which the temporary differences become deductible. Management regularly reviews the deferred tax assets for recoverability and establishes a valuation allowance based on historical taxable income, projected future taxable income, and the expected timing of the reversals of existing temporary differences. Through the quarter ended March 31, 2024, management believes that it is more likely than not that the deferred tax assets will not be realized, such that a full valuation allowance has been recorded. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and certain foreign jurisdictions. The Company is not currently under audit by the Internal Revenue Service or other similar state, local, and foreign authorities. All tax years remain open to examination by major taxing jurisdictions to which the Company is subject for a period of three years for federal and four years for states, after the utilization of net operating losses and credits.

Segment Reporting and Geographi

Segment Reporting and Geographical Concentration	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Segment Reporting and Geographical Concentration	Segment Reporting and Geographical Concentration The Company manages its operations through an evaluation of a consolidated business segment that solves semiconductor design challenges by offering affordable and competitive TCAD software, EDA software and design IP to support engineers and researchers across the globe. The chief operating decision maker, who is the Company’s Chief Executive Officer, reviews financial information presented on a consolidated basis for the purpose of allocating resources and evaluating financial performance. As such, the Company’s operations constitute a single operating segment and one reportable segment. Revenue is attributed to geography based upon the country in which the software license is used, or maintenance and services are delivered. The Company's single reportable segment recorded customer revenue from the following geographical areas for the three months ended March 31, 2024 and 2023: March 31, Region 2024 2023 (in thousands) Japan $ 4,755 $ 2,310 United States 4,062 4,865 China 1,731 2,680 Korea 1,092 1,178 All other 4,249 3,258 Total revenue $ 15,889 $ 14,291 Property and equipment are attributed to geography based on the country where the assets are located. The following table presents a summary of property and equipment by region as of March 31, 2024 and December 31, 2023: March 31, December 31, Region 2024 2023 (in thousands) United States $ 221 $ 242 Japan 179 74 China 143 152 All other countries 113 123 Total property and equipment $ 656 $ 591

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Warranties The Company typically provides its customers a warranty on its software licenses for a period of no more than 90 days and on its other tools for a period of no more than one year. Such warranties are accounted for in accordance with the authoritative guidance issued by the FASB on contingencies. For the three months ended March 31, 2024 and 2023, the Company has not incurred any costs related to warranty obligations. Indemnification Under the terms of substantially all of its license agreements, the Company has agreed to indemnify its customers for costs and damages arising from claims against such customers based on, among other things, allegations that the Company’s software infringes the intellectual property rights of a third party. In most cases, in the event of an infringement claim, the Company retains the right to (i) procure for the customer the right to continue using the software; (ii) replace or modify the software to eliminate the infringement while providing substantially equivalent functionality; or (iii) if neither (i) nor (ii) can be reasonably achieved, the Company may terminate the license agreement and refund to the customer a pro-rata portion of the license fee paid to the Company. Such indemnification provisions are accounted for in accordance with the authoritative guidance issued by the FASB on guarantees. From time to time, in the ordinary course of business, the Company receives claims for indemnification. Guarantees In February of 2012, Gu-Guide LP, a real estate entity controlled by the Company’s founding principal stockholder, Bank of the West and Silvaco Group, Inc., as guarantor, entered into a loan agreement pursuant to which Bank of the West agreed to lend Gu-Guide LP certain amounts of money. The Loan is secured by a building representing a total of 9,000 square feet located at 4701 Patrick Henry Drive, Santa Clara, California 95054. In the event that the proceeds from the foreclosure of the foregoing collateral are insufficient to repay the outstanding amounts under the Loan, Silvaco Group Inc. has guaranteed the repayment of the outstanding amounts under the Loan. As of March 31, 2024, $0.8 million is outstanding under the Loan which matures on August 1, 2024. Contingencies The Company is involved in routine legal proceedings in the ordinary course of business. The outcome of such matters is not expected to have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. However, each of these matters is subject to various uncertainties and it is possible that an unfavorable resolution of one or more of these proceedings could materially affect the Company's results of operations, cash flows or financial position. In an effort to clarify its obligations with respect to the earnout payment due to the selling shareholders of Nangate, Inc. (“Nangate”) following the Company’s acquisition of Nangate in 2018, the Company sought declaratory relief in the California Superior Court in December 2020. In February 2021, two of the selling shareholders of Nangate (together with a third cross-complainant who joined later, the “Nangate Parties”) filed a cross-complaint against the Company and two members of the Company’s board of directors, alleging, among other causes of action, breach of contract, fraud, and negligent misrepresentation. In January 2022, the Nangate Parties filed a third amended cross-complaint against Silvaco, Inc. and certain of its board members alleging breach of contract, fraud, and unfair business practices and is seeking $20.0 million in damages, along with punitive damages. A jury trial in connection with this litigation commenced in the second quarter of 2024. The Company is vigorously defending itself in this litigation. The Company accordingly has not recorded a charge for this contingency. On August 19, 2021, Aldini AG (“Aldini”) sued the Company, the Company’s French affiliate, a member of the Company’s board of directors and the Company’s CEO, among numerous other noncompany defendants, in connection with the Company’s interactions with Dolphin Design SAS (“Dolphin”). Aldini’s allegations center around the bankruptcy and reorganization of Dolphin in 2018 and Silvaco, Inc.’s acquisition of certain memory assets of Dolphin, which Aldini alleges was done in violation of its rights as a shareholder of Dolphin. Aldini’s First Amended Complaint asserts various tort claims against Silvaco, Inc., Silvaco France, and officers Iliya Pesic and Babak Taheri, including claims for trade secret theft, conspiracy, and intentional interference with a prospective economic advantage. Silvaco, Inc. filed a motion to dismiss; the trade secret theft and conspiracy claims were dismissed with prejudice and the intentional tort claims were dismissed with leave to amend. On August 23, 2022, Aldini filed a Second Amended Complaint against Silvaco, Inc., Silvaco France, and officers Iliya Pesic and Babak Taheri that included similar claims of trade secret theft, conspiracy, and intentional interference with a prospective economic advantage in relation to Silvaco, Inc.’s acquisition of certain assets of Dolphin. Aldini seeks $703.0 million and punitive damages. On March 17, 2023, the Second Amended Complaint was dismissed on all counts, subject to a right of appeal. Aldini has filed a notice of appeal on April 27, 2023. The Company is vigorously defending itself in this litigation. The Company accordingly has not recorded a charge for this contingency. The Company’s software solutions and technology are subject to export control and import laws and regulations of applicable jurisdictions. Certain of the Company’s software solutions are subject to U.S. export controls and sanctions, including the Export Administration Regulations, U.S. Customs regulations, and the economic and trade sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”). Between August 2019 and June 2022, the Company filed various voluntary disclosures with United States Department of Commerce Bureau of Industry and Security (“BIS”) regarding potential violations of U.S. export control laws and regulations, specifically, the export of the Company’s licenses to certain parties designated on BIS’s Entity List and Unverified List, and the export of certain software modules without a license which was required at the time of the transaction. Such software modules were declassified by BIS in October 2020 to a lesser controlled export classification, meaning that such software generally no longer requires an export license. In July and October 2022 and January 2023, the Company also filed voluntary disclosures with OFAC regarding potential violations of OFAC sanctions programs, specifically the download of certain Company software modules by users in U.S. embargoed countries. The matters described in these voluntary disclosures remain pending before BIS and OFAC. The Company cannot estimate any reasonable possible loss at this time and has not recorded a charge for this contingency. However, if either organization chose to bring an enforcement action against the Company such actions could result in significant penalties. After establishing its branch office in Russia in 2017, the Company used a local bank (“Bank A”) as its primary financial institution and engaged a local service provider (“Local Agent”) to act as its tax, accounting and legal consultant to advise with respect to matters affecting the branch office. As a result of the conflict in Ukraine, Bank A was sanctioned by OFAC on April 6, 2022, and, based on the recommendation from the Local Agent, the Company established replacement bank accounts at another local bank (“Bank B”), which were opened on June 2, 2022. Following the opening of the new accounts at Bank B, the Local Agent used the Bank B accounts to receive injections of funds from the Company’s US bank accounts; transferred the funds from Bank B to Bank A and paid compensation of certain of the Company’s employees and other expenses using the Company’s bank accounts at Bank A. The discovery of transactions involving the Company’s funds through Bank A following the establishment of the Company’s accounts at Bank B led to the Company’s subsequent voluntary self-disclosure in October 2023. The Company cannot estimate any reasonable possible loss at this time and has not recorded a charge for this contingency. However, if OFAC chose to bring an enforcement action against the Company such actions could result in significant penalties. On September 22, 2023 and May 3, 2024, the Company received demand letters from a customer related to alleged deficiencies in certain intellectual property used by the customer. Management is in initial discussions with the customer regarding the nature of the claims set forth in the letter. Given the early stages of the matter and the unknown financial impact, the Company cannot estimate any reasonable range of loss. The Company accordingly has not recorded a charge for this contingency.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Financial Instruments Measured at Fair Value on a Recurring Basis The following tables present the Company's liabilities that are measured at estimated fair value on a recurring basis as of March 31, 2024 and December 31, 2023: Fair value measurements as of March 31, 2024 (in thousands) Carrying value Level 1 Level 2 Level 3 Liabilities: Contingent consideration 91 — — 91 Total $ 91 $ — $ — $ 91 Fair value measurements as of December 31, 2023 (in thousands) Carrying value Level 1 Level 2 Level 3 Liabilities: Contingent consideration 112 — — 112 Total $ 112 $ — $ — $ 112 Pursuant to the Company’s stock purchase agreements for the acquisition of Nangate in March of 2018 and PolytEDA Cloud LLC (“PolytEDA”) in January of 2021, the selling shareholders are entitled to additional milestone and earn out consideration based on net revenues, operating income and technical achievement. The milestone consideration and earn-out liabilities are classified as contingent consideration as the obligations are due in cash. As such the obligations are recorded at their fair value and re-valued period to period with any changes recorded to other income (expense). The Company's contingent consideration is valued using a discounted cash flow model, and the assumptions used in preparing the discounted cash flow model include estimates for interest rates and the amount of cash flows, in addition to the expected net revenue, operating income and technical achievement of the acquired technology. The following is a reconciliation of changes in the liability related to contingent consideration as of December 31, 2023 and March 31, 2024: (in thousands) Fair value as of January 1, 2023 $ 792 Change in fair value 325 Earn-out payments (502) Milestone achievement (500) Foreign exchange (3) Fair value as of December 31, 2023 $ 112 Change in fair value (8) Earn-out payments (13) Fair value as of March 31, 2024 $ 91 Nonfinancial assets such as property and equipment, intangibles assets, and goodwill are evaluated for impairment and adjusted to fair value using Level 3 inputs only when impairment is recognized.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 11, 2024, the Company amended its license agreement to offer SIP developed in partnership with NXP. The amended license agreement has a term of five years starting April 11, 2024. On April 16, 2024, the Company entered into a note purchase agreement with Micron Technology Inc. (“Micron”), which has been and is a customer of the Company, pursuant to which the Company issued to Micron a senior subordinated convertible promissory note in the principal amount of $5.0 million (the “Micron Note”). The Micron Note was contractually subordinated to the East West Bank Loan through a subordination agreement with East West Bank, but was senior to all of our other existing debt and was senior to any new future debt incurred (other than any undrawn amount available under the current East West Bank Loan) while it was outstanding. The Micron Note accrued interest at the rate of 8% annually, with principal and interest due upon maturity three years after the date of issuance. The Micron Note was mandatorily convertible into a number of shares equal to (i) the outstanding principal amount and accrued interest divided by (ii) a conversion price equal to (a) the price of the Company’s common stock issued in an initial public offering, times (b) 0.90 if the initial public offering of common stock was consummated on or prior to May 31, 2024; 0.85 if the initial public offering of common stock was consummated between June 1, 2024 and April 16, 2025; and 0.80 if the initial public offering of common stock was consummated after April 16, 2025. On May 13, 2024, the Micron Note was converted into 294,217 shares of the Company’s common stock in connection with the closing of the IPO. The shares issued pursuant to the Micron Note have been registered for resale under the Securities Act. On April 26, 2024, in connection with the IPO, the Company’s board of directors approved and adopted, subject to stockholder approval, the 2024 Plan. The Company’s stockholders approved the 2024 Plan on April 29, 2024, and the 2024 Plan became effective on May 8, 2024. The 2024 Plan provides for incentive stock options (“ISOs”), non-qualified stock options, restricted share awards, stock unit awards, other stock-based awards, performance-based stock awards, (collectively, “Stock Awards”) and cash-based awards (Stock Awards and cash-based awards are collectively referred to as “awards”). ISOs may be granted only to employees, including officers. All other awards may be granted to employees, officers, our non-employee directors, and consultants and the employees and consultants of our subsidiaries, and affiliates. The aggregate number shares that may be issued pursuant to stock awards under the 2024 Plan will not exceed 3,425,278 shares which may be adjusted based on certain provisions in the 2024 Plan, including forfeitures, unissued Stock Awards from the 2014 Plan, and up to 3% annual increases to the 2024 Plan. On May 13, 2024, the Company completed the sale of an aggregate of 6,000,000 shares of Common Stock to the public at a price of $19.00 per share in the IPO. The gross proceeds to the Company from the IPO were $114.0 million, with $106.0 million funded to the Company after deducting underwriting discounts and commissions. Following the completion of the IPO, in May 2024 the outstanding amounts under the 2022 Credit Line and the East West Bank Loan of $2.0 million and $4.3 million, respectively, were repaid in full and the East West Bank Loan was terminated. With the consummation of the IPO, the Company expects to incur significant stock-based compensation expense associated with certain restricted stock awards that either fully or partially vest upon a Liquidity Event, refer to Note 8 for further discussion. On May 13, 2024, the Company filed its amended and restated certificate of incorporation with the Secretary of State of the State of Delaware and its amended and restated bylaws became effective in connection with the closing of the IPO.

Summary of Significant Accoun_2

Summary of Significant Accounting and Reporting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of presentation and consolidation and Emerging growth company status	Basis of presentation and consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") and include the accounts of Silvaco and all of the Company's wholly owned subsidiaries with operations in North America, Europe, Asia and South America. All intercompany transactions and balances have been eliminated upon consolidation. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted from these condensed consolidated financial statements, as permitted by Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with its audited consolidated financial statements for the year ended December 31, 2023 and the related notes thereto included in the Company’s final prospectus relating to the initial public offering, dated May 8, 2024 (the “Prospectus”), relating to the Registration Statement on Form S-1 (File No. 333-278666), as amended (“Registration Statement”), filed with the SEC on May 10, 2024, pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (“Securities Act”). The December 31, 2023 condensed consolidated balance sheet was derived from the audited consolidated financial statements as of that date. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the condensed consolidated financial statements. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the Company’s operating results to be expected for the full fiscal year or any other future interim or annual period.
Revision of Prior Financial Statements	Revision of Prior Financial Statements For the three months ended March 31, 2023, accrued expenses and general and administrative expenses were understated by $0.2 million in the Company’s condensed consolidated balance sheet and condensed consolidated statement of income, respectively, due to certain accruals for professional services rendered not being recorded. The Company has determined that such errors are immaterial and has increased accrued expenses and other current liabilities and general and administrative expenses to correct these immaterial errors.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the amounts of revenue and expenses during the reported periods. The Company’s most significant estimates relate to revenue recognition. Other estimates include, but are not limited to, accounts receivable allowances, stock-based compensation, valuation of goodwill and other intangible assets, contingent consideration, uncertain tax positions and income taxes. Actual results could differ from those estimates.
Stock split	Stock split On April 29, 2024, the Company effected a 1-for-2 reverse split of its common stock. Upon the effectiveness of the reverse stock split, (i) every two shares of outstanding common stock was combined into a single share of common stock, (ii) the number of shares of common stock to be granted upon the vesting of each outstanding restricted stock unit (“RSU”) was proportionally decreased on a 2-for-1 basis, and (iii) the fair value of each outstanding RSU was proportionately increased on a 1-for-2 basis. All of the outstanding common stock share numbers, RSUs, RSU fair values and per share amounts have been adjusted, on a retroactive basis, to reflect this 1-for-2 reverse stock split for all periods presented. The par value per share and authorized number of shares of common stock were not adjusted as a result of the reverse stock split.
Concentrations of credit risk	Concentrations of credit risk As of March 31, 2024, none of the Company’s customers represented more than 10% of the Company’s accounts receivable. As of December 31, 2023, two customers represented 20% and 15% of the Company’s accounts receivable. During the three months ended March 31, 2024 one customer represented 11% of the Company’s total revenue. None of the Company’s customers represented more than 10% of the Company’s total revenue for the three months ended March 31, 2023. In addition to the concentration of credit risk with respect to trade receivables, the Company's cash on deposit with financial institutions is also exposed to concentration risk. The Company's cash on deposit with financial institutions are insured through various public and private bank deposit insurance programs, foreign and domestic; however, a significant portion of cash balances held as of March 31, 2024 and December 31, 2023 exceeded insured limits. As of March 31, 2024, $3.0 million, or 52%, of the Company’s cash was maintained with one financial institution, where the Company’s current deposits are in excess of federally insured limits. Past macroeconomic conditions have resulted in the actual or perceived financial distress of many financial institutions, including the failures of Silicon Valley Bank, Signature Bank, First Republic Bank and the UBS takeover of Credit Suisse. If the financial institutions with whom the Company does business were to be placed into receivership, the Company may be unable to access the cash it has on deposit with such institutions. If the Company is unable to access its cash as needed, the Company’s financial position and ability to operate its business could be adversely affected.
Allowance for credit losses	Allowance for credit losses
Foreign currencies	Foreign currencies The financial statements of Silvaco's international subsidiaries with local functional currencies are translated to U.S. dollars upon consolidation. Assets and liabilities are translated at the effective exchange rate on the balance sheet date. Results of operations are translated at average exchange rates, which approximate rates in effect when the underlying transactions occur. For the three months ended March 31, 2024 and 2023, the Company recorded foreign currency translation adjustments of $(0.2) million and $0.1 million, respectively, within accumulated other comprehensive loss.
Accumulated other comprehensive loss	Accumulated other comprehensive loss Accumulated other comprehensive loss is composed entirely of foreign currency translation adjustments.
Earnings per share (EPS)	Earnings per share (EPS)
Recently adopted accounting pronouncements and Accounting guidance issued and not yet adopted	Recently adopted accounting pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The Company adopted this standard on January 1, 2024 and the adoption did not impact the condensed consolidated financial statements. Accounting guidance issued and not yet adopted In November 2023, the FASB issued Accounting Standards Update ASU 2023-07, Segment Reporting (Topic 280) : Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an interim and annual basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal periods beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the guidance on the condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740) : Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on the condensed consolidated financial statements and related disclosures.
Revenue	The Company's revenue is derived principally from contracts which promise to deliver combinations of software licensing and related maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns. The transaction price is allocated to each distinct performance obligation based on the relative standalone selling price. Software license revenue consists of the Company’s software sold under a software license. Revenue related to stand-alone software applications are generally recognized upon shipment and delivery of license keys. For certain arrangements revenue is recognized based on usage or ratably over the term of the arrangement. Maintenance and service revenue consists of both maintenance revenues and professional services revenues which is recognized based on usage or ratably over the term of the arrangement. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a contract asset when revenue is recognized prior to invoicing, an accounts receivable upon invoicing or deferred revenue when invoicing precedes revenue recognition. Customer contracts The Company accounts for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights and payment terms can be identified, the contract has commercial substance, and it is probable the Company will collect substantially all of the consideration it is entitled to. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised software or providing service to a customer. For multi-year software licenses, the Company generally invoices customers annually at the beginning of each annual coverage period.

Summary of Significant Accoun_3

Summary of Significant Accounting and Reporting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following outstanding securities for the three months ended March 31, 2024 and 2023 were excluded from the computation of diluted earnings per share because the issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied as of March 31, 2024. See Note 8 , Restricted Stock Units for additional information. March 31, 2024 2023 RSU Grants 4,302,178 3,047,234

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Assets And Liabilities, Lessee	As of March 31, 2024 and December 31, 2023, the Company’s operating lease right-of-use assets and operating lease liabilities were as follows: March 31, December 31, 2024 2023 (in thousands) Operating lease right-of-use assets, net $ 2,157 $ 1,963 Operating lease liabilities, current 817 735 Operating lease liabilities, non-current $ 1,320 $ 1,198
Lease, Cost	The components of operating lease cost during the periods presented were as follows: Three Months Ended March 31, 2024 2023 (in thousands) Operating lease cost $ 230 $ 256 Variable lease cost (1) 60 24 Total operating lease cost $ 290 $ 280 (1) Variable lease cost includes common area maintenance, utilities, security, insurance and property taxes. Additional information related to the Company’s operating leases for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, 2024 2023 (in thousands) Cash paid for operating lease liabilities $ 222 $ 256 Right-of-use assets obtained in exchange for lease obligations $ 567 $ — Weighted average remaining lease term (in years) 3.85 4.47 Weighted average discount rate 3.83 % 4.13 %
Lessee, Operating Lease, Liability, to be Paid, Maturity	As of March 31, 2024 maturities of operating lease liabilities were as follows: Year Ending December 31, Amount (in thousands) Remainder of 2024 $ 622 2025 652 2026 382 2027 219 2028 194 Thereafter 194 Total lease payments $ 2,263 Less: imputed interest (126) Total operating lease liabilities $ 2,137 Current portion of lease liability $ 817 Non-current portion of lease liability $ 1,320

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	As of March 31, 2024 intangible assets were classified as follows: March 31, 2024 Intangible assets: Weighted Average Amortization Period (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology 5 $ 800 $ (547) $ 253 Customer relationships 5 90 (77) 13 Non-compete agreements 5 20 (13) 7 Total intangible assets $ 910 $ (637) $ 273 December 31, 2023 Intangible assets: Weighted Average Amortization Period (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology 5 $ 2,660 $ (2,367) $ 293 Customer relationships 5 2,416 (2,374) 42 Non-compete agreements 5 179 (172) 7 Total intangible assets $ 5,255 $ (4,913) $ 342
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of March 31, 2024, estimated future amortization expense for the intangible assets reflected above was as follows: Year Ending December 31, Amount (in thousands) Remainder of 2024 $ 136 2025 137 Total net carrying value of intangible assets $ 273

Restricted Stock Units (Tables)

Restricted Stock Units (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following table summarizes the Company's RSU activity for the three months ended March 31, 2024: Weighted Average Restricted Stock Units Grant Date Fair Value Remaining Contract Term (in years) Granted Time Vested Time Non-Vested Balance as of December 31, 2023 $ 7.20 6.56 3,398,276 2,060,651 1,337,625 Granted 15.65 9.87 957,525 — 957,525 Vested 5.85 9.17 — 94,474 (94,474) Forfeited / canceled 8.25 5.36 (53,623) — (53,623) Balance as of March 31, 2024 $ 9.09 7.12 4,302,178 2,155,125 2,147,053

Segment Reporting and Geograp_2

Segment Reporting and Geographical Concentration (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	Revenue is attributed to geography based upon the country in which the software license is used, or maintenance and services are delivered. The Company's single reportable segment recorded customer revenue from the following geographical areas for the three months ended March 31, 2024 and 2023: March 31, Region 2024 2023 (in thousands) Japan $ 4,755 $ 2,310 United States 4,062 4,865 China 1,731 2,680 Korea 1,092 1,178 All other 4,249 3,258 Total revenue $ 15,889 $ 14,291
Long-Lived Assets by Geographic Areas	Property and equipment are attributed to geography based on the country where the assets are located. The following table presents a summary of property and equipment by region as of March 31, 2024 and December 31, 2023: March 31, December 31, Region 2024 2023 (in thousands) United States $ 221 $ 242 Japan 179 74 China 143 152 All other countries 113 123 Total property and equipment $ 656 $ 591

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value, Liabilities Measured on Recurring Basis	The following tables present the Company's liabilities that are measured at estimated fair value on a recurring basis as of March 31, 2024 and December 31, 2023: Fair value measurements as of March 31, 2024 (in thousands) Carrying value Level 1 Level 2 Level 3 Liabilities: Contingent consideration 91 — — 91 Total $ 91 $ — $ — $ 91 Fair value measurements as of December 31, 2023 (in thousands) Carrying value Level 1 Level 2 Level 3 Liabilities: Contingent consideration 112 — — 112 Total $ 112 $ — $ — $ 112
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following is a reconciliation of changes in the liability related to contingent consideration as of December 31, 2023 and March 31, 2024: (in thousands) Fair value as of January 1, 2023 $ 792 Change in fair value 325 Earn-out payments (502) Milestone achievement (500) Foreign exchange (3) Fair value as of December 31, 2023 $ 112 Change in fair value (8) Earn-out payments (13) Fair value as of March 31, 2024 $ 91

Description of Business (Detail

Description of Business (Details) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	May 13, 2024 USD ($) $ / shares shares	May 31, 2024 USD ($) $ / shares shares	Mar. 31, 2024 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments | segment			1
Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Sale of stock, price per share (in dollars per share) | $ / shares	$ 19	$ 19
IPO | Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares	6,000,000	6,000,000
Sale of stock, consideration received on transaction, including stock issuance costs	$ 114	$ 114
Sale of stock, consideration received on transaction	$ 106	$ 106

Summary of Significant Accoun_4

Summary of Significant Accounting and Reporting Policies - Narrative (Details) $ in Thousands		3 Months Ended		12 Months Ended
	Apr. 29, 2024	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Accounting Policies [Line Items]
General and administrative		$ 4,600	$ 4,553
Accrued expenses and other current liabilities		9,945		$ 10,255
Cash		5,739		4,421
Provision for credit losses		222	21
Accounts receivable, allowance for credit loss, current		800		$ 500
Foreign currency translation adjustments		(200)	100
Foreign exchange gain (loss)		$ (100)	(200)
Subsequent Event
Accounting Policies [Line Items]
Stockholders' equity note, stock split, conversion ratio	0.5
Cash | Financial Institution Risk | One Financial Institution
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)		52%
Cash		$ 3,000
Customer One | Accounts Receivable | Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)				20%
Customer One | Revenue Benchmark | Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)		11%
Customer Two | Accounts Receivable | Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)				15%
Revision of Prior Period, Adjustment
Accounting Policies [Line Items]
General and administrative			200
Accrued expenses and other current liabilities			$ 200

Summary of Significant Accoun_5

Summary of Significant Accounting and Reporting Policies - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restricted Stock Units (RSUs)
Accounting Policies [Line Items]
RSU Grants (in shares)	4,302,178	3,047,234

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 29.1
Contract with customer, liability, revenue recognized	$ 2.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, remaining performance obligation, percentage	49%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period
Revenue, remaining performance obligation, percentage	51%

Leases - Operating Lease Right-

Leases - Operating Lease Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease right-of-use assets, net	$ 2,157	$ 1,963
Operating lease liabilities, current	817	735
Operating lease liabilities, non-current	$ 1,320	$ 1,198

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 230	$ 256
Variable lease cost	60	24
Total operating lease cost	$ 290	$ 280

Leases - Additional Information

Leases - Additional Information Related to Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Cash paid for operating lease liabilities	$ 222	$ 256
Right-of-use assets obtained in exchange for lease obligations	$ 567	$ 0
Weighted average remaining lease term (in years)	3 years 10 months 6 days	4 years 5 months 19 days
Weighted average discount rate	3.83%	4.13%

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Remainder of 2024	$ 622
2025	652
2026	382
2027	219
2028	194
Thereafter	194
Total lease payments	2,263
Less: imputed interest	(126)
Total operating lease liabilities	2,137
Current portion of lease liability	817	$ 735
Non-current portion of lease liability	$ 1,320	$ 1,198

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease, expense	$ 0.3	$ 0.3

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 910	$ 5,255
Accumulated Amortization	(637)	(4,913)
Net Carrying Value	$ 273	$ 342
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years	5 years
Gross Carrying Value	$ 800	$ 2,660
Accumulated Amortization	(547)	(2,367)
Net Carrying Value	$ 253	$ 293
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years	5 years
Gross Carrying Value	$ 90	$ 2,416
Accumulated Amortization	(77)	(2,374)
Net Carrying Value	$ 13	$ 42
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years	5 years
Gross Carrying Value	$ 20	$ 179
Accumulated Amortization	(13)	(172)
Net Carrying Value	$ 7	$ 7

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Narrative (Details) - USD ($)		3 Months Ended
	Jan. 01, 2024	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, period increase (decrease)		$ 0	$ 0
Amortization expense for intangible assets		100,000	$ 100,000
Finite-Lived Intangible Assets [Line Items]
Net Carrying Value		$ 273,000		$ 342,000
Depreciated Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Amortized intangible assets	$ 4,300,000
Net Carrying Value	$ 0

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 136
2025	137
Net Carrying Value	$ 273	$ 342

Related Parties (Details)

Related Parties (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 29, 2012 ft²	Mar. 31, 2024 USD ($) lease	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jun. 13, 2022 USD ($)	May 01, 2022 USD ($)
Related Party Transaction [Line Items]
Operating lease, expense		$ 300	$ 300
Operating lease right-of-use assets, net		2,157		$ 1,963
Related party line of credit		2,016		2,000
Revenue from contract with customer		15,889	14,291
Accounts receivable, net		5,562		4,006
Contract assets, net		9,240		8,749
Total operating lease liabilities		2,137
Software license revenue
Related Party Transaction [Line Items]
Revenue from contract with customer		12,258	10,665
2022 Credit Line | Line of Credit
Related Party Transaction [Line Items]
Related party line of credit		2,000		$ 2,000
Related Party | 2022 Credit Line | Line of Credit
Related Party Transaction [Line Items]
Line of credit facility, maximum borrowing capacity					$ 4,000
Interest expense, debt		100	44
Related Party | Loan
Related Party Transaction [Line Items]
Debt instrument, collateral, building, number of square feet | ft²	9,000
Long-term loan facility		800
Director
Related Party Transaction [Line Items]
Accounts receivable, net		200
Contract assets, net		300
Director | Software license revenue
Related Party Transaction [Line Items]
Revenue from contract with customer		500
Kipee | Related Party
Related Party Transaction [Line Items]
Operating lease, expense		100	100
Operating lease, term of contract (in years)						3 years
Operating lease right-of-use assets, net						$ 200
Total operating lease liabilities						$ 200
New Horizons (Cambridge) LTD and New Horizons France | Related Party
Related Party Transaction [Line Items]
Operating lease, expense		$ 100	$ 100
Number of international office leases | lease		2
New Horizons (Cambridge) LTD | Related Party
Related Party Transaction [Line Items]
Operating lease right-of-use assets, net		$ 1,000
Total operating lease liabilities		1,000
New Horizons France | Related Party
Related Party Transaction [Line Items]
Operating lease right-of-use assets, net		100
Total operating lease liabilities		$ 100

Debt (Details)

Debt (Details) - USD ($) $ in Thousands			3 Months Ended
	Dec. 31, 2023	Jun. 13, 2022	Mar. 31, 2024
Debt Instrument [Line Items]
Related party line of credit	$ 2,000		$ 2,016
2022 Credit Line | Line of Credit
Debt Instrument [Line Items]
Related party line of credit	2,000		2,000
2022 Credit Line | Line of Credit | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1%
East West Bank Loan | Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 5,000
Interest rate (in percent)	4.50%
Proceeds from loan			4,300
Long-term loan facility			4,300
Interest expense, debt			$ 100
East West Bank Loan | Line of Credit | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%

Restricted Stock Units - Narrat

Restricted Stock Units - Narrative (Details) $ in Millions		3 Months Ended
	Mar. 18, 2024 requirement shares	Mar. 31, 2024 USD ($) shares	Dec. 31, 2023 shares
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares reserved (in shares)	4,600,000
Number of vesting requirements | requirement	2
Expiration period (in years)	10 years
Restricted Stock Units (RSUs) - Time-Based
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period (in years)	4 years
Outstanding (in shares)		4,302,178	3,398,276
Unrecognized stock-based compensation expense | $		$ 39.1
Liquidity event, number of additional shares authorizable (in shares)		228,043
Liquidity event, stock-based compensation expense | $		$ 16.5
Restricted Stock Units (RSUs) - Time-Based | Share-Based Payment Arrangement, Tranche One
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period (in years)	1 year
Award vesting rights (in percent)	25%
Restricted Stock Units (RSUs) - Time-Based | Share-Based Payment Arrangement, Tranche Two
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period (in years)	3 years
Restricted Stock Units (RSUs), Time Vested
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (in shares)		2,155,125	2,060,651
Grant date fair value | $		$ 12.8
Restricted Stock Units (RSUs), Time Nonvested
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (in shares)		2,147,053	1,337,625
Grant date fair value | $		$ 26.3

Restricted Stock Units - RSU Ac

Restricted Stock Units - RSU Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Restricted Stock Units (RSUs) - Time-Based
Weighted Average Fair Value
Beginning balance (in dollars per share)	$ 7.20
Granted (in dollars per share)	15.65
Vested (in dollars per share)	5.85
Forfeited / canceled (in dollars per share)	8.25
Ending balance (in dollars per share)	$ 9.09	$ 7.20
Weighted Average Remaining Contract Term
Outstanding, beginning and ending balance (in years)	7 years 1 month 13 days	6 years 6 months 21 days
Granted (in years)	9 years 10 months 13 days
Vested (in years)	9 years 2 months 1 day
Forfeited / canceled (in years)	5 years 4 months 9 days
Restricted Stock Units
Beginning balance (in shares)	3,398,276
Granted (in shares)	957,525
Vested (in shares)	0
Forfeited / canceled (in shares)	(53,623)
Ending balance (in shares)	4,302,178	3,398,276
Restricted Stock Units (RSUs), Time Vested
Restricted Stock Units
Beginning balance (in shares)	2,060,651
Granted (in shares)	0
Vested (in shares)	(94,474)
Forfeited / canceled (in shares)	0
Ending balance (in shares)	2,155,125	2,060,651
Restricted Stock Units (RSUs), Time Nonvested
Restricted Stock Units
Beginning balance (in shares)	1,337,625
Granted (in shares)	957,525
Vested (in shares)	(94,474)
Forfeited / canceled (in shares)	(53,623)
Ending balance (in shares)	2,147,053	1,337,625

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax provision	$ 805	$ 388
Effective income tax rate reconciliation, percent	37%	32%

Segment Reporting and Geograp_3

Segment Reporting and Geographical Concentration (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | segment	1
Number of operating segments | segment	1
Revenue from contract with customer	$ 15,889	$ 14,291
Total property and equipment	656		$ 591
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	4,755	2,310
Total property and equipment	179		74
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	4,062	4,865
Total property and equipment	221		242
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	1,731	2,680
Total property and equipment	143		152
Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	1,092	1,178
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	4,249	$ 3,258
Total property and equipment	$ 113		$ 123

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions		1 Months Ended		3 Months Ended
	Aug. 23, 2022 USD ($)	Jan. 31, 2022 USD ($)	Feb. 29, 2012 ft²	Mar. 31, 2024 USD ($)
Loan | Related Party
Loss Contingencies [Line Items]
Debt instrument, collateral, building, number of square feet | ft²			9,000
Long-term loan facility				$ 0.8
Other Tools
Loss Contingencies [Line Items]
Standard product warranty, term				1 year
Software Licenses
Loss Contingencies [Line Items]
Standard product warranty, term				90 days
Nangate Parties Cross-Complaint
Loss Contingencies [Line Items]
Damages sought		$ 20
Aldini Second Amended Complaint
Loss Contingencies [Line Items]
Damages sought	$ 703

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Liabilities Measured On A Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 91	$ 112
Total	91	112
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Total	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Total	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	91	112
Total	$ 91	$ 112

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Reconciliation Of Changes In Liability (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 112	$ 792
Change in fair value	(8)	325
Earn-out payments	(13)
Foreign exchange		(3)
Ending balance	$ 91	112
Earn-out payments
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Earn-out payments		(502)
Milestone achievement
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Earn-out payments		$ (500)

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Thousands				1 Months Ended
	May 13, 2024 USD ($) $ / shares shares	Apr. 16, 2024 USD ($)	Apr. 11, 2024	May 31, 2024 USD ($) $ / shares shares	Apr. 26, 2024 shares	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Subsequent Event [Line Items]
Related party line of credit						$ 2,016	$ 2,000
Line of Credit | 2022 Credit Line
Subsequent Event [Line Items]
Related party line of credit						2,000	$ 2,000
Line of Credit | East West Bank Loan
Subsequent Event [Line Items]
Interest rate (in percent)							4.50%
Long-term loan facility						$ 4,300
Subsequent Event
Subsequent Event [Line Items]
Sale of stock, price per share (in dollars per share) | $ / shares	$ 19			$ 19
Subsequent Event | Stock And Cash-Based Awards
Subsequent Event [Line Items]
Number of shares reserved (in shares) | shares					3,425,278
Maximum annual increase (in percent)					3%
Subsequent Event | Micron Technology Inc. (“Micron”) | Convertible Debt
Subsequent Event [Line Items]
Debt instrument, principal amount		$ 5,000
Interest rate (in percent)		8%
Debt instrument, term (in years)		3 years
Converted instrument (in shares) | shares	294,217
Subsequent Event | Micron Technology Inc. (“Micron”) | Convertible Debt | Debt Conversion Terms One
Subsequent Event [Line Items]
Debt instrument, conversion price, multiplier		0.90
Subsequent Event | Micron Technology Inc. (“Micron”) | Convertible Debt | Debt Conversion Terms Two
Subsequent Event [Line Items]
Debt instrument, conversion price, multiplier		0.85
Subsequent Event | Micron Technology Inc. (“Micron”) | Convertible Debt | Debt Conversion Terms Three
Subsequent Event [Line Items]
Debt instrument, conversion price, multiplier		0.80
Semiconductor Intellectual Property ("SIP") | Subsequent Event
Subsequent Event [Line Items]
License agreement, term extension (in years)			5 years
IPO | Subsequent Event
Subsequent Event [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares	6,000,000			6,000,000
Sale of stock, consideration received on transaction, including stock issuance costs	$ 114,000			$ 114,000
Sale of stock, consideration received on transaction	$ 106,000			$ 106,000

Uncategorized Items - svco-2024

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]