Silvaco Group, Inc. Common Stock (SVCO) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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	No
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		28,463,075
Document Fiscal Year Focus	2024
Entity Central Index Key	0001943289
Amendment Flag	false
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 26,606	$ 4,421
Short-term marketable securities	73,782	0
Accounts receivable, net	5,037	4,006
Contract assets, net	9,949	8,749
Prepaid expenses and other current assets	3,215	2,549
Deferred transaction costs	0	1,163
Total current assets	118,589	20,888
Long-term assets:
Property and equipment, net	843	591
Operating lease right-of-use assets, net	2,045	1,963
Intangible assets, net	4,660	342
Goodwill	9,026	9,026
Long-term portion of contract assets, net	9,456	6,250
Other assets	1,836	1,825
Total long-term assets	27,866	19,997
Total assets	146,455	40,885
Current liabilities:
Accounts payable	4,197	2,495
Accrued expenses and other current liabilities	23,309	10,255
Accrued income taxes	2,445	1,626
Deferred revenue, current	7,784	7,882
Operating lease liabilities, current	855	735
Related party line of credit	0	2,000
Vendor financing obligation, current	1,853	0
Total current liabilities	40,443	24,993
Long-term liabilities:
Deferred revenue, non-current	3,241	5,071
Operating lease liabilities, non-current	1,172	1,198
Vendor financing obligation, non-current	2,738	0
Other long-term liabilities	211	221
Total liabilities	47,805	31,483
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of September 30, 2024; no shares authorized as of December 31, 2023	0	0
Common stock, $0.0001 par value; 500,000,000 shares authorized; 26,294,217 shares issued and outstanding as of September 30, 2024; 25,000,000 shares authorized; 20,000,000 shares issued and outstanding as of December 31, 2023	3	2
Additional paid-in capital	132,244	0
(Accumulated deficit) Retained earnings	(32,169)	11,392
Accumulated other comprehensive loss	(1,428)	(1,992)
Total stockholders' equity	98,650	9,402
Total liabilities and stockholders' equity	$ 146,455	$ 40,885

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	10,000,000	0
Preferred stock, issued (in shares)	0
Preferred stock, outstanding (in shares)	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	500,000,000	25,000,000
Common stock, issued (in shares)	26,294,217	20,000,000
Common stock, outstanding (in shares)	26,294,217	20,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Gross profit
Total revenue	$ 10,972	$ 14,944	$ 41,821	$ 41,760
Cost of revenue	2,786	2,274	9,620	6,672
Gross profit	8,186	12,670	32,201	35,088
Operating expenses:
Research and development	4,134	3,289	15,457	9,833
Selling and marketing	3,834	3,139	14,317	8,874
General and administrative	7,128	4,500	30,042	13,311
Estimated litigation claim	392	0	15,088	0
Total operating expenses	15,488	10,928	74,904	32,018
Operating (loss) income	(7,302)	1,742	(42,703)	3,070
Loss on debt extinguishment	0	0	(718)	0
Interest income	1,217	1	1,899	4
Interest and other (expense) income, net	(278)	37	(832)	(535)
(Loss) income before income tax provision	(6,363)	1,780	(42,354)	2,539
Income tax provision	188	332	1,207	608
Net (loss) income	$ (6,551)	$ 1,448	$ (43,561)	$ 1,931
(Loss) earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.23)	$ 0.07	$ (1.77)	$ 0.10
Diluted (in dollars per share)	$ (0.23)	$ 0.07	$ (1.77)	$ 0.10
Weighted average shares used in computing per share amounts:
Basic (in shares)	29,048,080	20,000,000	24,633,030	20,000,000
Diluted (in shares)	29,048,080	20,000,000	24,633,030	20,000,000
Software license revenue
Gross profit
Total revenue	$ 6,840	$ 11,083	$ 30,121	$ 30,593
Maintenance and service
Gross profit
Total revenue	$ 4,132	$ 3,861	$ 11,700	$ 11,167

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (6,551)	$ 1,448	$ (43,561)	$ 1,931
Other comprehensive income (loss):
Foreign currency translation adjustments	679	(326)	295	(372)
Unrealized gains on marketable securities	269	0	269	0
Comprehensive (loss) income	$ (5,603)	$ 1,122	$ (42,997)	$ 1,559

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	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	(Accumulated Deficit) Retained Earnings	(Accumulated Deficit) Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	(Accumulated Deficit) 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	$ 0	$ 0	$ 11,928	$ (220)	$ 11,708	$ (1,907)	$ (1,907)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(372)										(372)
Net (loss) income	1,931							1,931
Ending balance (in shares) at Sep. 30, 2023				20,000,000
Ending balance at Sep. 30, 2023	11,362			$ 2		0		13,639			(2,279)
Beginning balance (in shares) at Jun. 30, 2023				20,000,000
Beginning balance at Jun. 30, 2023	10,240			$ 2		0		12,191			(1,953)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(326)										(326)
Net (loss) income	1,448							1,448
Ending balance (in shares) at Sep. 30, 2023				20,000,000
Ending balance at Sep. 30, 2023	$ 11,362			$ 2		0		13,639			(2,279)
Beginning balance (in shares) at Dec. 31, 2023	20,000,000			20,000,000
Beginning balance at Dec. 31, 2023	$ 9,402			$ 2		0		11,392			(1,992)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with initial public offering, net of underwriting fees and commissions and net of deferred transaction costs of $3,298 (in shares)				6,000,000
Issuance of common stock in connection with initial public offering, net of underwriting fees and commissions and net of deferred transaction costs of $3,298	102,722			$ 1		102,721
Conversion of Micron Note into common stock (in shares)				294,217
Conversion of Micron Note into common stock	5,589					5,589
Stock-based compensation expense	23,934					23,934
Other comprehensive income (loss)	564										564
Net (loss) income	$ (43,561)							(43,561)
Ending balance (in shares) at Sep. 30, 2024	26,294,217			26,294,217
Ending balance at Sep. 30, 2024	$ 98,650			$ 3		132,244		(32,169)			(1,428)
Beginning balance (in shares) at Jun. 30, 2024				26,294,217
Beginning balance at Jun. 30, 2024	101,846			$ 3		129,837		(25,618)			(2,376)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	2,407					2,407
Other comprehensive income (loss)	948										948
Net (loss) income	$ (6,551)							(6,551)
Ending balance (in shares) at Sep. 30, 2024	26,294,217			26,294,217
Ending balance at Sep. 30, 2024	$ 98,650			$ 3		$ 132,244		$ (32,169)			$ (1,428)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2024
Statement of Stockholders' Equity [Abstract]
Deferred transaction costs		$ 3,298
Accounting standards update [extensible enumeration]	Accounting Standards Update 2016-13 [Member]

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net (loss) income	$ (43,561)	$ 1,931
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	903	456
Stock-based compensation expense	24,388	0
Provision for credit losses	154	198
Estimated litigation claim	15,088	0
Loss on debt extinguishment	718	0
Accretion of discount on marketable securities, net	(905)	0
Change in fair value of contingent consideration	(18)	332
Changes in operating assets and liabilities:
Accounts receivable	(1,336)	(443)
Contract assets	(4,479)	(4,560)
Prepaid expenses and other current assets	(479)	183
Other assets	(12)	0
Accounts payable	1,022	(404)
Accrued expenses	(2,396)	402
Accrued income taxes	836	475
Deferred revenue	(1,887)	1,497
Other current liabilities	1,288	869
Other long-term liabilities	9	(605)
Net cash (used in) provided by operating activities	(10,667)	331
Cash flows from investing activities:
Purchases of marketable securities	(81,608)	0
Maturities of marketable securities	9,000	0
Purchases of property and equipment	(344)	(215)
Net cash used in investing activities	(72,952)	(215)
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriting fees	106,020	0
Proceeds from issuance of convertible note, net of debt issuance costs	4,852	0
Proceeds from loan facility	4,250	0
Repayment of loan facility	(4,250)	0
Repayment of 2022 line of credit	(2,000)	0
Deferred transaction costs	(2,649)	(33)
Contingent consideration	(74)	(986)
Payments of vendor financing obligation	(600)	0
Net cash provided by (used in) financing activities	105,549	(1,019)
Effect of exchange rate fluctuations on cash and cash equivalents	255	(262)
Net increase (decrease) in cash and cash equivalents	22,185	(1,165)
Cash and cash equivalents, beginning of period	4,421	5,478
Cash and cash equivalents, end of period	$ 26,606	$ 4,313

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Silvaco Group, Inc. (“Silvaco,” “us,” “our”, “we,” and the “Company” refers to Silvaco Group Inc. and its subsidiaries, unless the context specifically requires otherwise) 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 of $8.0 million.

Summary of Significant Accounti

Summary of Significant Accounting and Reporting Policies	9 Months Ended
	Sep. 30, 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 the Company’s 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 IPO, dated May 8, 2024, relating to the registration statement on Form S-1 (File No. 333-278666), as amended, 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 condensed consolidated balance sheet as of December 31, 2023 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 and nine months ended September 30, 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 and nine months ended September 30, 2023, general and administrative expenses were understated by $0.1 million and $0.5 million, respectively, in the Company’s condensed consolidated statements of (loss) income and accrued expenses were understated by $0.5 million in the Company’s condensed consolidated balance sheet due to certain accruals for professional services rendered not being recorded. The Company has determined that such errors are immaterial for the three and nine months ended September 30, 2023, and has increased accrued expenses and other current liabilities and general and administrative expenses in the prior periods 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 consummation of the Company’s IPO, (b) in which the Company’s total annual gross revenue is at least $1.235 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 expense, valuation of goodwill and other intangible assets, contingent consideration, derivative valuations, uncertain tax positions, legal contingencies 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 were 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, RSU numbers, 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 September 30, 2024, two customers represented 16% and 15% 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 September 30, 2024, none of the Company’s customers represented more than 10% of the Company’s total revenue. One customer represented 14% of the Company’s total revenue during the nine months ended September 30, 2024. During the three months ended September 30, 2023, two of the Company’s customers represented 20% and 11% of the Company’s total revenue. None of the Company’s customers represented more than 10% of the Company’s total revenue during the nine months ended September 30, 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 is insured through various public and private bank deposit insurance programs, foreign and domestic; however, a significant portion of cash balances held as of September 30, 2024 and December 31, 2023 exceeded insured limits. As of September 30, 2024, $5.0 million, or 18.7%, of the Company’s cash and cash equivalents was maintained with one financial institution, where the Company’s current deposits are in excess of federally insured limits, and $3.4 million, or 12.7%, was held by the Company’s foreign subsidiaries. Accumulated other comprehensive loss Accumulated other comprehensive loss is composed of foreign currency translation adjustments and unrealized gains and losses on marketable securities. Marketable securities The Company’s investments in marketable securities have been classified and accounted for as available-for-sale and are recorded at estimated fair value. The Company’s available-for-sale marketable securities are comprised of money market funds, U.S. treasury securities and U.S. government securities. The Company classifies its investments with original maturities of three months or less when acquired as cash equivalents. The Company classifies its marketable securities with original maturities of longer than three months but within twelve months as of the reporting date as short-term marketable securities. Marketable securities with maturities of twelve months or longer as of the reporting date are classified as long-term marketable securities. Purchase discounts are accreted using the effective interest method over the life of the related security and such accretion is included in interest income in the condensed consolidated statements of (loss) income. For available-for-sale debt securities in an unrealized loss position, the Company evaluates whether it intends to sell the security before the recovery of its amortized cost basis. If both of these criteria are met, the security’s amortized cost basis is written down to fair value and a loss is recorded in interest expense and other, net on the condensed consolidated statements of (loss) income, not to exceed the amount of the unrealized loss. The Company did not recognize any other-than-temporary impairment on its marketable securities during the three and nine months ended September 30, 2024. Unrealized gains and losses (excluding other-than-temporary impairment and credit loss) on available-for-sale marketable securities are reported in other comprehensive loss on the condensed consolidated statements of comprehensive (loss) income. Credit-related unrealized losses are recognized as an allowance on the condensed consolidated balance sheets with a corresponding charge to interest and other (expense) income, net on the condensed consolidated statements of (loss) income. The cost of securities sold is based on the specific identification method and realized gains and losses are reported in interest income and interest and other (expense) income, net on the condensed consolidated statements of (loss) income, respectively. The Company recognized $0.3 million of unrealized gains on available-for-sale marketable securities in other comprehensive loss on the condensed consolidated statements of comprehensive (loss) income during the three and nine months ended September 30, 2024. 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 in the condensed consolidated statements of (loss) income. 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 immaterial for the three months ended September 30, 2024 and a loss of $0.1 million for the nine months ended September 30, 2024, and losses of $0.2 million for the three and nine months ended September 30, 2023. The Company’s allowance for expected credit losses on accounts receivable and contract assets, in the aggregate, was $0.5 million as of September 30, 2024 and December 31, 2023. 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. The Company recorded foreign currency translation adjustments of $0.7 million and $0.3 million for the three and nine months ended September 30, 2024, respectively, and $0.3 million and $0.4 million for the three and nine months ended September 30, 2023, respectively, within accumulated other comprehensive loss. Certain of the Company’s 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) income, net in the Company’s condensed consolidated statements of (loss) income. The Company recorded net foreign exchange transaction losses of $0.2 million and $0.4 million for the three and nine months ended September 30, 2024, respectively, a foreign exchange transaction gain of $0.1 million for the three months ended September 30, 2023, and a foreign exchange transaction loss of $0.3 million for the nine months ended September 30, 2023. Earnings per share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding, including RSUs vested but not yet issued. 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 were excluded from the computation of diluted earnings per share because (i) the effect would be anti-dilutive for the three and nine months ended September 30, 2024, and (ii) the securities were contingent upon conditions for issuance which were not satisfied as of September 30, 2023. See Note 7 , Restricted Stock Units for additional information. September 30, 2024 2023 RSU Grants 1,635,950 3,069,305 Recently adopted accounting pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 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 ASU No. 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. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on the condensed consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) : Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. This ASU 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. In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220) : Disaggregation of Income Statement Expenses. This ASU requires additional disclosure of certain amounts included in the expense captions presented on the statements of (loss) income as well as disclosures about selling expenses. This ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on the condensed consolidated financial statements.

Revenue

Revenue	9 Months Ended
	Sep. 30, 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 is generally recognized upon shipment and delivery of license keys. 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. The 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 September 30, 2024, approximately $32.6 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 48% of these remaining performance obligations over the next 12 months, with the remaining 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.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets There were no changes in goodwill during the three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, intangible assets were classified as follows: September 30, 2024 Intangible assets: Weighted Average Amortization Period (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology 5 $ 800 $ (627) $ 173 Customer relationships 5 90 (88) 2 Non-compete agreements 5 20 (16) 4 Licensed IP 5 4,979 (498) 4,481 Total intangible assets $ 5,889 $ (1,229) $ 4,660 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 On April 11, 2024, the Company amended its license agreement to sell SIP developed in partnership with NXP (the “NXP IP”) for total cash consideration of $6.0 million, to be paid over 5 years. The NXP IP has a net book value of $4.5 million as of September 30, 2024 and a useful life of 5 years, which is the length of the license agreement. The Company recorded a corresponding vendor financing obligation related to the license agreement with NXP. See Note 6 , Debt and Financing Obligations, for further discussion. Amortization expense for intangible assets was $0.3 million and $0.7 million during the three and nine months ended September 30, 2024, respectively, of which $0.3 million and $0.5 million was recognized in cost of revenue for the three and nine months ended September 30, 2024, respectively, with the remainder recognized in research and development expense in the Company’s condensed consolidated statements of (loss) income. Amortization expense for intangible assets was $0.1 million and $0.3 million during the three and nine months ended September 30, 2023, respectively, all of which was recognized in research and development expense in the Company’s condensed consolidated statements of (loss) income. 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 September 30, 2024, estimated future amortization expense for the intangible assets reflected above was as follows: Year Ending December 31, Amount (in thousands) Remainder of 2024 $ 293 2025 1,130 2026 996 2027 996 2028 996 Thereafter 249 Total net carrying value of intangible assets $ 4,660

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 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 and $0.2 million during the three and nine months ended September 30, 2024 and 2023, 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 $0.1 million as of September 30, 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 and $0.2 million during the three and nine months ended September 30, 2024 and 2023, respectively. 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 September 30, 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 September 30, 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 during the nine months ended September 30, 2024, and $47,000 and $0.1 million during the three and nine months ended September 30, 2023, respectively. The outstanding amounts due under the 2022 Credit Line were repaid in full and the 2022 Credit Line was terminated in May 2024. See Note 6 , Debt and Financing Obligations, for further discussion. In February of 2012, Gu-Guide LP, a real estate entity controlled by Ms. Ngai-Pesic, Bank of the West and the Company, 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 was secured by a 9,000 square foot building located in Santa Clara, California. In the event that the proceeds from the foreclosure of the foregoing collateral were insufficient to repay the outstanding amounts under the Loan, the Company guaranteed the repayment of the outstanding amounts under the Loan. The Loan was repaid in full and the Company was released from the guarantee in July of 2024.

Debt and Financing Obligations

Debt and Financing Obligations	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt and Financing Obligations	Debt and Financing Obligations On June 13, 2022, Silvaco entered into the 2022 Credit Line which bore interest at a rate of prime plus 1% per annum. As of December 31, 2023, the principal balance of the 2022 Credit Line was $2.0 million. In May 2024, the outstanding balance under the 2022 Credit Line was repaid in full, and the 2022 Credit Line was terminated. The Company did not recognize any gain or loss on the extinguishment of the 2022 Credit Line. In December 2023, the Company entered into a loan facility with East West Bank (the “East West Bank Loan”) which had a maturity date of December 14, 2025 and provided 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 nine months ended September 30, 2024, and repaid the $4.3 million in full in May 2024. Accordingly, the Company recognized a loss on debt extinguishment of $0.1 million during the nine months ended September 30, 2024. The Company recorded interest expense of $0.2 million during the nine months ended September 30, 2024, with respect to the East West Bank Loan. In May 2024, the East West Bank Loan was terminated. On April 11, 2024, the Company amended its license to sell the NXP IP for total cash consideration of $6.0 million, to be paid over 5 years, pursuant to which the Company recorded an associated vendor financing obligation, which has a balance of $4.6 million as of September 30, 2024. The Company determined that this vendor financing obligation had an imputed interest rate of 9%, which is reflective of its borrowing rate with similar terms to that of the license agreement, and recognized interest expense of $0.1 million and $0.2 million for the three and nine months ended September 30, 2024, respectively. The Company’s vendor financing obligation is comprised of the following payments as of September 30, 2024: For the year ending December 31, Amount (in thousands) Remainder of 2024 $ 300 2025 1,500 2026 1,200 2027 1,200 2028 1,200 Total undiscounted cash flows $ 5,400 Less: Imputed interest 809 Present value of vendor financing obligation $ 4,591 Vendor financing obligation, current 1,853 Vendor financing obligation, non-current $ 2,738 On April 16, 2024, the Company entered into a note purchase agreement with Micron Technology Inc. (“Micron”), 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”) with a maturity date three years after issuance. 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 the Company’s other existing debt and was senior to any new future debt incurred (other than any undrawn amount available under the East West Bank Loan while it was outstanding). The Micron Note accrued interest at a rate of 8% per annum, with principal and accrued interest due upon maturity. Upon the consummation of the IPO, the Micron Note was mandatorily convertible into a number of shares equal to the outstanding principal amount and accrued interest divided by a conversion price equal to (a) the price of the Company’s common stock issued in the IPO, times (b) 0.90. The Company determined that the feature that allowed for settlement of the Micron Note into a variable number of shares required bifurcation as a derivative liability and should be initially measured at fair value. The Company recorded a derivative liability of $0.5 million and a corresponding debt discount of $0.5 million on the issuance date. On May 13, 2024, the Micron Note was converted into 294,217 shares of the Company’s common stock in connection with the consummation of the IPO. The shares issued pursuant to the Micron Note were registered for resale under the Securities Act. Upon the settlement of the Micron Note, the derivative liability was settled and the Company remeasured it to its fair value and recorded a loss on derivative remeasurement of $28,000 during the nine months ended September 30, 2024, which was recorded in interest and other (expense) income, net on the Company’s condensed consolidated statements of (loss) income. As a result, the fair value of the shares issued of $5.6 million was recognized in additional paid-in capital and the Company settled the debt, inclusive of the derivative liability, and recognized a loss on debt extinguishment of $0.6 million during the nine months ended September 30, 2024.

Restricted Stock Units

Restricted Stock Units	9 Months Ended
	Sep. 30, 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 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. On April 26, 2024, in connection with the Company’s IPO, the Company’s board of directors approved and adopted, subject to stockholder approval, the 2024 Stock Incentive Plan (“2024 Plan”), and the Company’s stockholders approved the 2024 Plan on April 29, 2024. The 2024 Plan became effective on May 8, 2024 and supersedes the Company’s 2014 Plan. All shares underlying RSUs granted under the 2014 Plan that are forfeited and shares reserved for future issuance under the 2014 Plan are included in the share reserve under the 2024 Plan. As of September 30, 2024, the number of shares of common stock reserved for future issuance under the 2024 Plan was 3,614,981. The Company issues RSUs to its employees, directors and service providers. The RSUs awarded under the 2014 Plan generally had 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 would 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 Liquidity Event Requirement was satisfied upon the consummation of the IPO on May 13, 2024. 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. The Company recognizes its stock-based compensation expense ratably over the requisite service period, which is generally four years. The following table summarizes the Company's RSU activity pursuant to the 2014 Plan and the 2024 Plan for the nine months ended September 30, 2024: Weighted Average Number of Awards Grant Date Fair Value Remaining Contract Term (in years) Balance as of December 31, 2023 $ 7.20 6.56 3,398,276 Granted 16.09 9.43 1,136,207 Vested (1) 7.27 5.42 (2,774,347) Forfeited / canceled 8.42 6.05 (124,186) Balance as of September 30, 2024 $ 12.56 8.98 1,635,950 (1) Shares issuable in settlement of the vested RSUs as of September 30, 2024 are excluded from the calculation of the Company’s common stock outstanding on the Company’s condensed consolidated balance sheet and condensed consolidated statements of stockholders’ equity as of September 30, 2024, as the shares of common stock are subject to lock-up agreements and will not be issued until the expiration of such lock-up agreements. Prior to January 1, 2024, the Company valued the RSUs granted using historical estimates of the fair value of the Company's common stock. Commencing January 1, 2024 and prior to the IPO, 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. For RSUs granted after the IPO, the Company used the publicly listed closing stock price on the grant date as the grant date fair value. Historically the Company has not recorded stock-based compensation expense for the RSUs, as the Liquidity Event Requirement was not deemed probable. Upon the consummation of the Company’s IPO, the Liquidity Event Requirement was met, and the Company incurred stock-based compensation expense associated with (i) RSUs granted to active employees and service providers, (ii) RSUs granted to certain former employees and service providers whose RSUs 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 the Liquidity Event. In November 2023, the Company issued 30,000 RSUs with certain performance-based conditions, in addition to the Time-Based Requirement, and a grant date fair value of $0.4 million. The Company estimates the probability of achievement of applicable performance goals for performance-based RSUs in each reporting period and recognizes related stock-based compensation expense using the straight-line attribution method. The amount of stock-based compensation expense recognized in any period can vary based on the attainment or expected attainment of the various performance goals. If such performance goals are not ultimately met, no stock-based compensation expense is recognized and any previously recognized compensation expense is reversed. The Company recognized stock-based compensation expense of $18,000 and $0.1 million related to these RSUs during the three and nine months ended September 30, 2024, respectively. In November 2023, the Company issued 75,000 RSUs with certain market-based conditions, in addition to the Time Based Requirement and the Liquidity Event Requirement, and a grant date fair value of $0.6 million. The Company estimated the fair value of market-based RSUs on the grant date using a Monte Carlo simulation model. The vesting of the market-based RSUs is contingent on achieving a minimum volume-weighted average stock price (“VWAP”) prior to the expiration of the RSUs. The assumptions used in the Monte Carlo simulation model to determine the grant date fair value were a daily VWAP of $8.92, a volatility of 50%, and a risk-free rate of 4.3%. The Company recognized stock-based compensation expense of $33,000 and $0.1 million related to these RSUs during the three and nine months ended September 30, 2024, respectively. As of September 30, 2024, the Company had unrecognized stock-based compensation expense of $18.0 million which is expected to be recognized over a weighted average period of 2.6 years. During the three and nine months ended September 30, 2024, the Company recorded stock-based compensation expense of $2.6 million and $24.4 million 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. The following table summarizes stock-based compensation expense by function for the three and nine months ended September 30, 2024: Three Months Ended Nine Months Ended (in thousands) General and administrative $ 1,376 $ 13,121 Research and development 491 4,556 Selling and marketing 379 3,931 Cost of revenue 313 2,780 $ 2,559 $ 24,388 During the nine months ended September 30, 2024, the Company’s compensation committee approved the issuance of a variable number of RSUs as a portion of the employee bonus program for the fiscal year 2024. The number of RSUs issued will be calculated as the volume-weighted average price of the Company’s common stock upon the bonus being finalized after the end of the fiscal year. As the Company has an obligation to issue a variable number of shares for a fixed monetary amount, the RSUs will be accounted for as liability-classified awards and subsequently re-measured to their fair value at each reporting date. The Company recognized stock-based compensation expense of $0.2 million and $0.5 million associated with the liability-classified RSUs during the three and nine months ended September 30, 2024, respectively, with a corresponding increase to accrued expenses of $0.5 million. If the bonus was finalized on September 30, 2024, the Company would have been required to issue an aggregate of 42,293 RSUs to its employees. The Company’s 2024 Employee Stock Purchase Plan (the “2024 ESPP”) allows employees to designate up to 15% of their base compensation, subject to legal restrictions and limitations, to purchase shares of common stock at 85% of the lesser of the fair market value at the beginning of the offering period or the purchase date. Under the 2024 ESPP, the first offering began on August 1, 2024, and the first purchase period ends on the purchase date of November 30, 2024. Under the terms of the 2024 ESPP, if the fair market value on the purchase date is less than the fair market value at the beginning of the offering period, the offering may be terminated and a new offering may be commenced. Stock based compensation expense related to the first offering was immaterial during the three and nine months ended September 30, 2024.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s provision for income taxes consists principally of federal, 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. During the three and nine months ended September 30, 2024, the Company recorded an income tax provision of $0.2 million and $1.2 million, respectively, as compared to an income tax provision of $0.3 million and $0.6 million, respectively, during the three and nine months ended September 30, 2023. The effective tax rate for the three and nine months ended September 30, 2024 was (3)% and (3)%, respectively, as compared to 19% and 24%, respectively, for the three and nine months ended September 30, 2023. 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 primary difference between its effective tax rate and the federal statutory rate is 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. As of September 30, 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 U.S. federal income tax returns, as well as income tax returns in 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	9 Months Ended
	Sep. 30, 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.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 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, Bank of the West and the Company, as guarantor, entered into a loan agreement, which was secured by a 9,000 square foot building located in Santa Clara, California. In the event that the proceeds from the foreclosure of the collateral was insufficient to repay the outstanding amounts under the Loan, the Company guaranteed the repayment of the Loan. The Loan was repaid in full and the Company was released from the guarantee in July of 2024. Contingencies In December 2020, the Company sought declaratory relief in the California Superior Court to clarify its obligations regarding the earnout payments due to the selling shareholders of Nangate, Inc. (“Nangate”) following its acquisition by the Company in 2018. In February 2021, two of the selling shareholders of Nangate, along with a third cross-complainant (collectively, the “Nangate Parties”) filed a cross-complaint against the Company, as well as one current and one former member of the Company’s board of directors (the “Co-Defendants”). The cross-complaint alleged breach of contract, fraud, and negligent misrepresentation among other causes of action. In January 2022, the Nangate Parties filed a third amended cross-complaint against the Company, as well as one current and one former member of the Company’s board of directors, seeking $20.0 million in damages for breach of contract, fraud, and unfair business practices, as well as punitive damages. On July 23, 2024, a jury awarded the Nangate Parties $11.3 million in damages under breach of contract related claims, including breach of contract and breach of the covenant of good faith and fair dealing, along with the potential for an award of statutory pre-judgment interest, and court and litigation related costs and certain expert expenses subject to the Nangate Parties establishing the legal right to them and to be determined by the court. The interest, if awarded, is estimated to be $3.8 million as of September 30, 2024 (collectively with the $11.3 million damages award, the “Contract Damages”). As a result, during the three and nine months ended September 30, 2024, the Company recorded a charge to estimated litigation claim and accrued expenses and other current liabilities of $0.4 million and $15.1 million, respectively, for the Contract Damages awarded to the Nangate Parties. The jury also found the Company and the Co-Defendants liable for certain of the fraudulent and negligent misrepresentation claims and awarded the Nangate Parties $6.6 million. Incremental punitive damages relating to these claims, including $17.0 million payable by the Company and a total of $16.0 million to be paid by the Co-Defendants, were awarded following a hearing on August 16, 2024 (collectively, the “Fraud Damages”). The Nangate Parties have the option to choose either the Contract Damages or the Fraud Damages, but in no circumstances will the Nangate Parties receive both remedies. The Company believes it has strong grounds for appeal and is pursuing post-trial motions. Additionally, the Company believes that there are strong arguments in support of substantially reducing the punitive damages portion of the Fraud Damages, which the Company believes are excessive under California Law, and the United States and California constitutions, particularly given the disproportionate nature of the punitive damages relative to the compensatory damages. Given the uncertainty surrounding the potential reduction of the punitive damages after the appeal, the Company at this time cannot reasonably estimate the possible loss or range of loss, if any, that might arise from the Fraud Damages, and above-mentioned court and litigation related costs and certain expert expenses that may be awarded. Therefore, the Company has not recorded any charges for potential liability related to Fraud Damages, and court and litigation related costs and certain expert expenses that may be awarded in this matter. On August 19, 2021, Aldini AG (“Aldini”) sued Silvaco, Inc., the Company’s French affiliate, a member of the Company’s board of directors and the Company’s CEO, among numerous other noncompany defendants, including the Government of France, 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 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 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 filed a notice of appeal on April 27, 2023 and arguments are scheduled for November 22, 2024. The Company is vigorously defending itself in this litigation and accordingly has not recorded a charge for this contingency. The Company is subject to sanctions laws and regulations and export control and import laws and regulations of the United States and other applicable jurisdictions, including the Export Administration Regulations, U.S. Customs regulations, and economic and trade sanctions regulations administered by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”). Between August 2019 and June 2022, the Company filed voluntary self-disclosures with U.S. 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. BIS requested and the Company agreed to toll, or pause, the statute of limitations on certain of the potential violations while it completes its review of the voluntary self-disclosures. The Company is committed to maintaining a transparent dialogue with BIS in connection with any requests for information regarding its voluntary disclosures. In July and October 2022 and January 2023, the Company also filed voluntary disclosures with OFAC regarding potential violations of certain OFAC sanctions programs, specifically the download of certain Company software modules by users in U.S. embargoed countries. 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. However, due to administrative error, the Local Agent continued to utilize the Bank A accounts to process payroll for the Company’s employees by transferring funds from Bank B to 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 to OFAC in October 2023. In July 2024, OFAC issued a cautionary letter in response to the voluntary self-disclosure instead of pursuing a civil monetary penalty or taking other enforcement action. However, as is common in these instances, OFAC reserved the right to take future enforcement action should additional information warrant renewed attention. On September 22, 2023 and May 3, 2024, the Company received demand letters from a customer related to alleged deficiencies in certain intellectual property licensed by the customer, but at this time, the customer has not asserted any legal or contractual basis for its claim. As a result, 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	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: ■ Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. ■ Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices), such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions. ■ Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Financial instruments measured at fair value on a recurring basis The following tables present the Company's financial assets and liabilities that are measured at estimated fair value on a recurring basis as of September 30, 2024 and December 31, 2023: Fair value measurements as of September 30, 2024 (in thousands) Carrying value Level 1 Level 2 Level 3 Financial assets: Cash equivalents: Money market funds 13,822 13,822 — — U.S. treasury securities 4,489 — 4,489 — Total 18,311 13,822 4,489 — Available-for-sale marketable securities: U.S. treasury securities 51,401 — 51,401 — U.S. government agencies securities 22,381 — 22,381 — Total 73,782 — 73,782 — Total $ 92,093 $ 13,822 $ 78,271 $ — Liabilities: Contingent consideration 20 — — 20 Total $ 20 $ — $ — $ 20 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 The Company's level 1 financial assets were valued using quoted prices in active markets for identical assets as of September 30, 2024. The Company’s level 2 financial assets were determined based on third-party inputs which are either directly or indirectly observable, such as reported trades and broker or dealer quotes. The Company's marketable securities have an amortized cost that approximates fair value as of September 30, 2024. 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 operating income generated by the business and technical achievements. 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 interest and other (expense) income, net in the condensed consolidated statements of (loss) income. 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 for the year ended December 31, 2023 and nine months ended September 30, 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 (18) Earn-out payments (74) Fair value as of September 30, 2024 $ 20

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On November 4, 2024, the Company issued 2,168,858 shares of common stock, net of shares withheld for tax purposes of 724,702, which had been subject to lock-up agreements in connection with the Company’s IPO, to settle RSU’s that have vested under the Company’s 2014 and 2024 Plan.

Summary of Significant Accoun_2

Summary of Significant Accounting and Reporting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of presentation and consolidation	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 the Company’s 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 IPO, dated May 8, 2024, relating to the registration statement on Form S-1 (File No. 333-278666), as amended, 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 condensed consolidated balance sheet as of December 31, 2023 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 and nine months ended September 30, 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 and nine months ended September 30, 2023, general and administrative expenses were understated by $0.1 million and $0.5 million, respectively, in the Company’s condensed consolidated statements of (loss) income and accrued expenses were understated by $0.5 million in the Company’s condensed consolidated balance sheet due to certain accruals for professional services rendered not being recorded. The Company has determined that such errors are immaterial for the three and nine months ended September 30, 2023, and has increased accrued expenses and other current liabilities and general and administrative expenses in the prior periods 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 expense, valuation of goodwill and other intangible assets, contingent consideration, derivative valuations, uncertain tax positions, legal contingencies 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 were 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, RSU numbers, 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 September 30, 2024, two customers represented 16% and 15% 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 September 30, 2024, none of the Company’s customers represented more than 10% of the Company’s total revenue. One customer represented 14% of the Company’s total revenue during the nine months ended September 30, 2024. During the three months ended September 30, 2023, two of the Company’s customers represented 20% and 11% of the Company’s total revenue. None of the Company’s customers represented more than 10% of the Company’s total revenue during the nine months ended September 30, 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 is insured through various public and private bank deposit insurance programs, foreign and domestic; however, a significant portion of cash balances held as of September 30, 2024 and December 31, 2023 exceeded insured limits. As of September 30, 2024, $5.0 million, or 18.7%, of the Company’s cash and cash equivalents was maintained with one financial institution, where the Company’s current deposits are in excess of federally insured limits, and $3.4 million, or 12.7%, was held by the Company’s foreign subsidiaries.
Accumulated other comprehensive loss	Accumulated other comprehensive loss Accumulated other comprehensive loss is composed of foreign currency translation adjustments and unrealized gains and losses on marketable securities.
Marketable securities	Marketable securities The Company’s investments in marketable securities have been classified and accounted for as available-for-sale and are recorded at estimated fair value. The Company’s available-for-sale marketable securities are comprised of money market funds, U.S. treasury securities and U.S. government securities. The Company classifies its investments with original maturities of three months or less when acquired as cash equivalents. The Company classifies its marketable securities with original maturities of longer than three months but within twelve months as of the reporting date as short-term marketable securities. Marketable securities with maturities of twelve months or longer as of the reporting date are classified as long-term marketable securities. Purchase discounts are accreted using the effective interest method over the life of the related security and such accretion is included in interest income in the condensed consolidated statements of (loss) income.
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. The Company recorded foreign currency translation adjustments of $0.7 million and $0.3 million for the three and nine months ended September 30, 2024, respectively, and $0.3 million and $0.4 million for the three and nine months ended September 30, 2023, respectively, within accumulated other comprehensive loss.
Earnings per share	Earnings per share
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”) No. 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 ASU No. 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. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on the condensed consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) : Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. This ASU 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. In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220) : Disaggregation of Income Statement Expenses. This ASU requires additional disclosure of certain amounts included in the expense captions presented on the statements of (loss) income as well as disclosures about selling expenses. This ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on the condensed consolidated financial statements.
Revenue And Customer contracts	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 is generally recognized upon shipment and delivery of license keys. 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. The 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)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following outstanding securities were excluded from the computation of diluted earnings per share because (i) the effect would be anti-dilutive for the three and nine months ended September 30, 2024, and (ii) the securities were contingent upon conditions for issuance which were not satisfied as of September 30, 2023. See Note 7 , Restricted Stock Units for additional information. September 30, 2024 2023 RSU Grants 1,635,950 3,069,305

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	As of September 30, 2024 and December 31, 2023, intangible assets were classified as follows: September 30, 2024 Intangible assets: Weighted Average Amortization Period (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology 5 $ 800 $ (627) $ 173 Customer relationships 5 90 (88) 2 Non-compete agreements 5 20 (16) 4 Licensed IP 5 4,979 (498) 4,481 Total intangible assets $ 5,889 $ (1,229) $ 4,660 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 September 30, 2024, estimated future amortization expense for the intangible assets reflected above was as follows: Year Ending December 31, Amount (in thousands) Remainder of 2024 $ 293 2025 1,130 2026 996 2027 996 2028 996 Thereafter 249 Total net carrying value of intangible assets $ 4,660

Debt and Financing Obligations

Debt and Financing Obligations (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Contractual Obligation, Fiscal Year Maturity	The Company’s vendor financing obligation is comprised of the following payments as of September 30, 2024: For the year ending December 31, Amount (in thousands) Remainder of 2024 $ 300 2025 1,500 2026 1,200 2027 1,200 2028 1,200 Total undiscounted cash flows $ 5,400 Less: Imputed interest 809 Present value of vendor financing obligation $ 4,591 Vendor financing obligation, current 1,853 Vendor financing obligation, non-current $ 2,738

Restricted Stock Units (Tables)

Restricted Stock Units (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following table summarizes the Company's RSU activity pursuant to the 2014 Plan and the 2024 Plan for the nine months ended September 30, 2024: Weighted Average Number of Awards Grant Date Fair Value Remaining Contract Term (in years) Balance as of December 31, 2023 $ 7.20 6.56 3,398,276 Granted 16.09 9.43 1,136,207 Vested (1) 7.27 5.42 (2,774,347) Forfeited / canceled 8.42 6.05 (124,186) Balance as of September 30, 2024 $ 12.56 8.98 1,635,950 (1)
Schedule of Share-Based Payment Arrangement, Expensed and Capitalized, Amount	The following table summarizes stock-based compensation expense by function for the three and nine months ended September 30, 2024: Three Months Ended Nine Months Ended (in thousands) General and administrative $ 1,376 $ 13,121 Research and development 491 4,556 Selling and marketing 379 3,931 Cost of revenue 313 2,780 $ 2,559 $ 24,388

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Liabilities Measured on Recurring Basis	The following tables present the Company's financial assets and liabilities that are measured at estimated fair value on a recurring basis as of September 30, 2024 and December 31, 2023: Fair value measurements as of September 30, 2024 (in thousands) Carrying value Level 1 Level 2 Level 3 Financial assets: Cash equivalents: Money market funds 13,822 13,822 — — U.S. treasury securities 4,489 — 4,489 — Total 18,311 13,822 4,489 — Available-for-sale marketable securities: U.S. treasury securities 51,401 — 51,401 — U.S. government agencies securities 22,381 — 22,381 — Total 73,782 — 73,782 — Total $ 92,093 $ 13,822 $ 78,271 $ — Liabilities: Contingent consideration 20 — — 20 Total $ 20 $ — $ — $ 20 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
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following is a reconciliation of changes in the liability related to contingent consideration for the year ended December 31, 2023 and nine months ended September 30, 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 (18) Earn-out payments (74) Fair value as of September 30, 2024 $ 20

Description of Business (Detail

Description of Business (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2024	Sep. 30, 2024	Sep. 30, 2023
Subsidiary, Sale of Stock [Line Items]
Gross proceeds from initial public offering		$ 106,020	$ 0
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	6,000,000
Sale of stock, price per share (in dollars per share)	$ 19
Sale of stock, consideration received on transaction, including underwriting discounts and commissions	$ 114,000
Gross proceeds from initial public offering	106,000
Payments of underwriting discounts and commissions	$ 8,000

Summary of Significant Accoun_4

Summary of Significant Accounting and Reporting Policies - Narrative (Details)		3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 29, 2024	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Accounting Policies [Line Items]
General and administrative		$ 7,128,000	$ 4,500,000	$ 30,042,000	$ 13,311,000
Accrued expenses and other current liabilities		23,309,000		23,309,000		$ 10,255,000
Stockholders' equity note, stock split, conversion ratio	0.5
Cash and cash equivalents		26,606,000		26,606,000		4,421,000
Unrealized gains on marketable securities		269,000	0	269,000	0
Provision for credit losses, loss (recovery)		0	200,000	100,000	200,000
Allowance for expected credit losses		500,000		500,000		$ 500,000
Foreign currency translation adjustments		700,000	(300,000)	300,000	(400,000)
Foreign exchange gain (loss)		(200,000)	$ 100,000	$ (400,000)	(300,000)
Cash | Financial Institution Risk | One Financial Institution
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)				18.70%
Cash and cash equivalents		5,000,000		$ 5,000,000
Cash | Financial Institution Risk | Foreign Subsidiaries
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)				12.70%
Cash and cash equivalents		$ 3,400,000		$ 3,400,000
Customer One | Accounts Receivable | Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)				16%		20%
Customer One | Revenue Benchmark | Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)			20%	14%
Customer Two | Accounts Receivable | Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)				15%		15%
Customer Two | Revenue Benchmark | Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk, percentage (in percent)			11%
Revision of Prior Period, Adjustment
Accounting Policies [Line Items]
General and administrative			$ 100,000		500,000
Accrued expenses and other current liabilities			$ 500,000		$ 500,000

Summary of Significant Accoun_5

Summary of Significant Accounting and Reporting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Restricted Stock Units (RSUs)
Accounting Policies [Line Items]
RSU Grants (in shares)	1,635,950	3,069,305

Revenue (Details)

Revenue (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 32.6	$ 32.6
Contract with customer, liability, revenue recognized	$ 1.4	$ 5.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation (in percent)	48%	48%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months	12 months

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) - USD ($)			3 Months Ended		9 Months Ended
	Apr. 11, 2024	Jan. 01, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, period increase (decrease)			$ 0	$ 0	$ 0	$ 0
Finite-Lived Intangible Assets [Line Items]
Goodwill, period increase (decrease)			0	0	0	0
Net book value			4,660,000		4,660,000		$ 342,000
Amortization expense for intangible assets			300,000	$ 100,000	700,000	$ 300,000
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Amortization expense for intangible assets			300,000		500,000
Intellectual Property
Finite-Lived Intangible Assets [Line Items]
License agreement, cash consideration	$ 6,000,000
License agreement, term extension (in years)	5 years
Net book value			$ 4,481,000		$ 4,481,000
Useful life (in years)			5 years		5 years
Depreciated Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Net book value		$ 0
Amortized intangible assets		$ 4,300,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 5,889	$ 5,255
Accumulated Amortization	(1,229)	(4,913)
Total net carrying value of intangible assets	$ 4,660	$ 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	(627)	(2,367)
Total net carrying value of intangible assets	$ 173	$ 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	(88)	(2,374)
Total net carrying value of intangible assets	$ 2	$ 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	(16)	(172)
Total net carrying value of intangible assets	$ 4	$ 7
Intellectual Property
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years
Gross Carrying Value	$ 4,979
Accumulated Amortization	(498)
Total net carrying value of intangible assets	$ 4,481

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 293
2025	1,130
2026	996
2027	996
2028	996
Thereafter	249
Total net carrying value of intangible assets	$ 4,660	$ 342

Related Parties (Details)

Related Parties (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 29, 2012 ft²	Sep. 30, 2024 USD ($) lease	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) lease	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jun. 13, 2022 USD ($)	May 01, 2022
Related Party Transaction [Line Items]
Operating lease right-of-use assets, net		$ 2,045		$ 2,045		$ 1,963
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			$ 47	100	$ 100
Related Party | Loan
Related Party Transaction [Line Items]
Debt instrument, collateral, building, number of square feet | ft²	9,000
Kipee | Related Party
Related Party Transaction [Line Items]
Rent expense		100	200	100	200
Operating lease, term of contract (in years)								3 years
Operating lease right-of-use assets, net		100		100
Operating lease liability		100		100
New Horizons (Cambridge) LTD and New Horizons France | Related Party
Related Party Transaction [Line Items]
Rent expense		$ 100	$ 200	$ 100	$ 200
Number of international office leases | lease		2		2
New Horizons (Cambridge) LTD | Related Party
Related Party Transaction [Line Items]
Operating lease right-of-use assets, net		$ 1,000		$ 1,000
Operating lease liability		1,000		1,000
New Horizons France | Related Party
Related Party Transaction [Line Items]
Operating lease right-of-use assets, net		100		100
Operating lease liability		$ 100		$ 100

Debt and Financing Obligation_2

Debt and Financing Obligations - Narrative (Details)					1 Months Ended		3 Months Ended		9 Months Ended
	May 13, 2024 shares	Apr. 16, 2024 USD ($)	Apr. 11, 2024 USD ($)	Jun. 13, 2022	May 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Debt Instrument [Line Items]
Related party line of credit						$ 2,000,000	$ 0		$ 0
Gain (loss) on debt extinguishment							0	$ 0	(718,000)	$ 0
Proceeds from loan facility									4,250,000	0
Repayment of loan facility									4,250,000	$ 0
Present value of vendor financing obligation							$ 4,591,000		$ 4,591,000
Vendor financing obligation, interest rate (in percent)							9%		9%
Vendor financing obligation, interest expense							$ 100,000		$ 200,000
Conversion of Micron Note into common stock									5,589,000
Intellectual Property
Debt Instrument [Line Items]
License agreement, cash consideration			$ 6,000,000
License agreement, term extension (in years)			5 years
Additional Paid-in Capital
Debt Instrument [Line Items]
Conversion of Micron Note into common stock									5,589,000
Micron Technology Inc. (“Micron”)
Debt Instrument [Line Items]
Derivative liability		$ 500,000
Gain (loss) on derivative remeasurement									(28,000)
Convertible Debt | Micron Technology Inc. (“Micron”)
Debt Instrument [Line Items]
Gain (loss) on debt extinguishment									600,000
Interest rate (in percent)		8%
Debt instrument, principal amount		$ 5,000,000
Debt instrument, term (in years)		3 years
Debt discount		$ 500,000
Converted instrument (in shares) | shares	294,217
Convertible Debt | Micron Technology Inc. (“Micron”) | Additional Paid-in Capital
Debt Instrument [Line Items]
Conversion of Micron Note into common stock									5,600,000
Convertible Debt | Micron Technology Inc. (“Micron”) | Debt Conversion Terms One
Debt Instrument [Line Items]
Debt instrument, conversion price, multiplier		0.90
2022 Credit Line | Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)				1%
Related party line of credit						$ 2,000,000
Gain (loss) on debt extinguishment					$ 0
East West Bank Loan | Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)						0.50%
Gain (loss) on debt extinguishment									(100,000)
Line of credit facility, maximum borrowing capacity						$ 5,000,000
Interest rate (in percent)						4.50%
Proceeds from loan facility									4,300,000
Repayment of loan facility					$ 4,300,000
Interest expense, debt									$ 200,000

Debt and Financing Obligation_3

Debt and Financing Obligations - Schedule of Contractual Obligation, Fiscal Year Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Maturities of Long-Term Debt [Abstract]
Remainder of 2024	$ 300
2025	1,500
2026	1,200
2027	1,200
2028	1,200
Total undiscounted cash flows	5,400
Less: Imputed interest	809
Present value of vendor financing obligation	4,591
Vendor financing obligation, current	1,853	$ 0
Vendor financing obligation, non-current	$ 2,738	$ 0

Restricted Stock Units - Narrat

Restricted Stock Units - Narrative (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 18, 2024 requirement shares	Nov. 30, 2023 USD ($) shares	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2024 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance (in shares) | shares			3,614,981	3,614,981
Stock-based compensation expense			$ 2,559	$ 24,388
Unrecognized stock-based compensation expense			18,000	$ 18,000
Unrecognized stock-based compensation expense, period for recognition (in years)				2 years 7 months 6 days
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares reserved (in shares) | shares	4,600,000
Number of vesting requirements | requirement	2
Requisite service period (in years)				4 years
Granted (in shares) | shares				1,136,207
Stock-based compensation expense for liability-classified award			200	$ 500
Recorded liability for liability-classified award			$ 500	$ 500
Grants in period if bonus was finalized (in shares) | shares			42,293	42,293
Restricted Stock Units (RSUs) - Liquidity-Event Based
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
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
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) - Performance-Based And Time-Based
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares) | shares		30,000
Grant date fair value		$ 400
Stock-based compensation expense			$ 18	$ 100
Restricted Stock Units (RSUs) - Market-Based, Liquidity Event-Based, And Time-Based
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares) | shares		75,000
Grant date fair value		$ 600
Stock-based compensation expense			$ 33	$ 100
Volume-weighted average stock price (“VWAP”) (in dollars per share) | $ / shares			$ 8.92	$ 8.92
Volatility (in percent)				50%
Risk-free rate (in percent)				4.30%
Employee Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Contribution rate (in percent)			15%	15%
Purchase price of stock (in percent)				85%

Restricted Stock Units - Schedu

Restricted Stock Units - Schedule of Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted Stock Units (RSUs) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Grant Date Fair Value
Beginning balance (in dollars per share)	$ 7.20
Granted (in dollars per share)	16.09
Vested (in dollars per share)	7.27
Forfeited / canceled (in dollars per share)	8.42
Ending balance (in dollars per share)	$ 12.56	$ 7.20
Remaining Contract Term (in years)
Outstanding, beginning and ending balance (in years)	8 years 11 months 23 days	6 years 6 months 21 days
Granted (in years)	9 years 5 months 4 days
Vested (in years)	5 years 5 months 1 day
Forfeited / canceled (in years)	6 years 18 days
Number of Awards
Beginning balance (in shares)	3,398,276
Granted (in shares)	1,136,207
Vested (in shares)	(2,774,347)
Forfeited / canceled (in shares)	(124,186)
Ending balance (in shares)	1,635,950	3,398,276

Restricted Stock Units - Sche_2

Restricted Stock Units - Schedule of Share-Based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,559	$ 24,388
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,376	13,121
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	491	4,556
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	379	3,931
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 313	$ 2,780

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax provision	$ 188	$ 332	$ 1,207	$ 608
Effective income tax rate reconciliation (in percent)	(3.00%)	19%	(3.00%)	24%

Segment Reporting and Geograp_2

Segment Reporting and Geographical Concentration (Details)	9 Months Ended
	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands				1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 16, 2024 USD ($)	Jul. 23, 2024 USD ($)	Aug. 23, 2022 USD ($)	Jan. 31, 2022 USD ($)	Feb. 29, 2012 ft²	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Loss Contingencies [Line Items]
Estimated litigation claim						$ 392	$ 0	$ 15,088	$ 0
Nangate Parties Cross-Complaint
Loss Contingencies [Line Items]
Damages sought				$ 20,000
Damages awarded		$ 11,300
Estimated litigation interest						3,800		3,800
Estimated litigation claim						$ 400		$ 15,100
Nangate Parties Cross-Complaint | Fraud Damages, Excluding Punitive Damages
Loss Contingencies [Line Items]
Damages awarded		$ 6,600
Nangate Parties Cross-Complaint | Punitive Damages | Silvaco Group, Inc.
Loss Contingencies [Line Items]
Damages awarded	$ 17,000
Nangate Parties Cross-Complaint | Punitive Damages | Co-Defendants
Loss Contingencies [Line Items]
Damages awarded	$ 16,000
Aldini Second Amended Complaint
Loss Contingencies [Line Items]
Damages sought			$ 703,000
Loan | Related Party
Loss Contingencies [Line Items]
Debt instrument, collateral, building, number of square feet | ft²					9,000
Software Licenses
Loss Contingencies [Line Items]
Standard product warranty, term								90 days
Other Tools
Loss Contingencies [Line Items]
Standard product warranty, term								1 year

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Fair Value, Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial assets:
Total	$ 18,311
Available-for-sale marketable securities:	73,782
Total	92,093
Liabilities:
Contingent consideration	20	$ 112
Total	20	112
U.S. treasury securities
Financial assets:
Available-for-sale marketable securities:	51,401
U.S. government agencies securities
Financial assets:
Available-for-sale marketable securities:	22,381
Money market funds
Financial assets:
Total	13,822
U.S. treasury securities
Financial assets:
Total	4,489
Level 1
Financial assets:
Total	13,822
Available-for-sale marketable securities:	0
Total	13,822
Liabilities:
Contingent consideration	0	0
Total	0	0
Level 1 | U.S. treasury securities
Financial assets:
Available-for-sale marketable securities:	0
Level 1 | U.S. government agencies securities
Financial assets:
Available-for-sale marketable securities:	0
Level 1 | Money market funds
Financial assets:
Total	13,822
Level 1 | U.S. treasury securities
Financial assets:
Total	0
Level 2
Financial assets:
Total	4,489
Available-for-sale marketable securities:	73,782
Total	78,271
Liabilities:
Contingent consideration	0	0
Total	0	0
Level 2 | U.S. treasury securities
Financial assets:
Available-for-sale marketable securities:	51,401
Level 2 | U.S. government agencies securities
Financial assets:
Available-for-sale marketable securities:	22,381
Level 2 | Money market funds
Financial assets:
Total	0
Level 2 | U.S. treasury securities
Financial assets:
Total	4,489
Level 3
Financial assets:
Total	0
Available-for-sale marketable securities:	0
Total	0
Liabilities:
Contingent consideration	20	112
Total	20	$ 112
Level 3 | U.S. treasury securities
Financial assets:
Available-for-sale marketable securities:	0
Level 3 | U.S. government agencies securities
Financial assets:
Available-for-sale marketable securities:	0
Level 3 | Money market funds
Financial assets:
Total	0
Level 3 | U.S. treasury securities
Financial assets:
Total	$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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	(18)	325
Earn-out payments	(74)
Foreign exchange		(3)
Ending balance	$ 20	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) - Subsequent Event	Nov. 04, 2024 shares
Subsequent Event [Line Items]
Common stock issued, net of shares withheld for tax purposes (in shares)	2,168,858
Shares withheld for tax purposes (in shares)	724,702