| Summary of significant accounting policies (Policies) | 6 Months Ended |
| Jun. 30, 2023 |
| Accounting Policies [Abstract] | |
| Fiscal Year | Fiscal Year The Group’s fiscal year ends on December
31. |
| Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements
include the accounts of SEALSQ Corp. and its wholly owned subsidiaries over which the Group has control. Intercompany income and expenses, including unrealized
gross profits from internal group transactions and intercompany receivables, payables and loans have been eliminated. |
| Use of Estimates | Use of Estimates The preparation of condensed consolidated financial
statements in conformity with US GAAP requires management to make certain estimates, judgments and assumptions. We believe these estimates,
judgements and assumptions are reasonable, based upon information available at the time they were made. These estimates, judgments and
assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported
amounts of revenues and expenses during the periods presented. To the extent there are differences between these estimates, judgments
or assumptions and the actual results, our condensed consolidated financial statements will be affected. In many cases, the accounting
treatment of a particular transaction is specifically dictated by US GAAP and does not require management’s judgment in its application.
There are also areas in which management’s judgment in selecting from available alternatives would not produce a materially different
result. |
| Foreign Currency | Foreign Currency The functional currency of SEALSQ Corp. is USD. In general, the functional currency of a foreign
operation is the local currency. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance
sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. The effects of foreign currency
translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income/loss. The
Group's reporting currency is USD. |
| Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of deposits held at major banks
that are readily available. Cash equivalents consist of highly liquid investments that are readily convertible to cash and with original
maturity dates of three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities
of these instruments. |
| Accounts Receivable | Accounts Receivable Receivables represent rights to consideration
that are unconditional and consist of amounts billed and currently due from customers, and revenues that have been recognized for accounting
purposes but not yet billed to customers. The Group extends credit to customers in the normal course of business and in line with industry
practices. |
| Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We recognize an allowance for credit losses to
present the net amount of receivables expected to be collected as of the balance sheet date. The allowance is based on the credit losses
expected to arise over the asset’s contractual term taking into account historical loss experience, customer-specific data as well
as forward-looking estimates. Expected credit losses are estimated individually. Accounts receivables are written off when deemed
uncollectible and are recognized as a deduction from the allowance for credit losses. Expected recoveries, which are not to exceed the
amount previously written off, are considered in determining the allowance balance at the balance sheet date. |
| Inventories | Inventories Inventories are stated at the lower of cost or
net realizable value. Costs are calculated using standard costs, approximating average costs. Finished goods and work-in-progress inventories
include material, labor and manufacturing overhead costs. The Group records write-downs on inventory based on an analysis of obsolescence
or a comparison to the anticipated demand or market value based on a consideration of marketability and product maturity, demand forecasts,
historical trends and assumptions about future demand and market conditions. |
| Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment Minimum Maximum Property, plant and equipment are stated at cost,
net of accumulated depreciation. Depreciation is computed using the straight-line method based on estimated useful lives which range from
1 5 |
| Intangible Assets | Intangible Assets Intangible Assets Those intangible assets that are considered to
have a finite useful life are amortized over their useful lives, which generally range from 1 10 |
| Leases | Leases In line with ASC 842, the Group, as a lessee,
recognizes right-of-use assets and related lease liabilities on its balance sheet for all arrangements with terms longer than twelve months,
and reviews its leases for classification between operating and finance leases. Obligations recorded under operating and finance leases
are identified separately on the balance sheet. Assets under finance leases and their accumulated amortization are disclosed separately
in the notes. Operating and finance lease assets and operating and finance lease liabilities are measured initially at an amount equal
to the present value of minimum lease payments during the lease term, as at the beginning of the lease term. The Group has elected the short-term lease practical
expedient whereby we do not present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months
or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. We have also elected the practical expedients related
to lease classification of leases that commenced before the effective date of ASC 842. |
| Revenue Recognition | Revenue Recognition The Group’s policy is to recognize revenue
to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services. To achieve that core principle, the group applies the following steps:
- Step 1: Identify the contract(s) with a customer.
- Step 2: Identify the performance obligations in the contract.
- Step 3: Determine the transaction price.
- Step 4: Allocate the transaction price to the performance obligations in the contract.
- Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. Revenue is measured based on the consideration
specified in a contract with a customer and excludes amounts collected on behalf of third parties. We typically allocate the transaction
price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised
in the contract. If a standalone price is not observable, we use estimates. The Group recognizes revenue when it satisfies
a performance obligation by transferring control over goods or services to a customer. The transfer may be done at a point in time (typically
for goods) or over time (typically for services). The amount of revenue recognized is the amount allocated to the satisfied performance
obligation. For performance obligations satisfied over time, the revenue is recognized over time, most frequently on a prorata temporis If the Group determines that the performance obligation
is not satisfied, it will defer recognition of revenue until it is satisfied. We present revenue net of sales taxes and any
similar assessments. The Group delivers products and records revenue
pursuant to commercial agreements with its customers, generally in the form of an approved purchase order or sales contract. Where products are sold under warranty, the customer
is granted a right of return which, when exercised, may result in either a full or partial refund of any consideration received, or a
credit that can be applied against amounts owed, or that will be owed, to the Group. For any amount received or receivable for which we
do not expect to be entitled to because the customer has exercised its right of return, we recognize those amounts as a refund liability. |
| Contract Assets | Contract Assets Contract assets consist of accrued revenue where
the Group has fulfilled its performance obligation towards the customer but the corresponding invoice has not yet been issued. Upon invoicing,
the asset is reclassified to trade accounts receivable until payment. |
| Deferred Revenue | Deferred Revenue Deferred revenue consists of amounts that have
been invoiced and paid but have not been recognized as revenue. Deferred revenue that will be realized during the succeeding 12-month
period is recorded as current and the remaining deferred revenue recorded as non-current. This would relate to multi-year certificates
or licenses. |
| Contract Liability | Contract Liability Contract liability consists of either:
- amounts that have been invoiced and not yet paid, nor recognized as revenue. Upon payment, the liability
is reclassified to deferred revenue if the amounts still have not been recognized as revenue. Contract liability that will be realized
during the succeeding 12-month period is recorded as current and the remaining contract liability recorded as non-current. This would
relate to multi-year certificates or licenses.
- advances from customers not supported by invoices. |
| Sales Commissions | Sales Commissions Sales commission expenses where revenue is recognized
are recorded in the period of revenue recognition. |
| Cost of Sales and Depreciation of Production Assets | Cost of Sales and Depreciation of Production
Assets Our cost of sales consists primarily of expenses
associated with the delivery and distribution of products. These include expenses related to the license to the Global Cryptographic ROOT
Key, the global Certification authorities as well as the digital certificates for people, servers and objects, expenses related to the
preparation of our secure elements and the technical support provided on the Group's ongoing production and on the ramp-up phase, including
materials, labor, test and assembly suppliers, and subcontractors, freights costs, as well as the amortization of probes, wafers and other
items that are used in the production process. This amortization is disclosed separately under depreciation of production assets on the
face of the income statement. |
| Research and Development and Software Development Costs | Research and Development and Software Development
Costs All research and development costs and software
development costs are expensed as incurred. |
| Advertising Costs | Advertising Costs All advertising costs are expensed as incurred. |
| Pension Plan | Pension Plan In the six months ended June 30, 2023, the Group
maintained one defined benefit post retirement plans covering the French employees of WISeKey Semiconductors SAS. In accordance with ASC 715-30, Defined Benefit
Plans – Pension, |
| Income Taxes | Income Taxes Taxes on income are accrued in the same period
as the revenues and expenses to which they relate. Deferred taxes are calculated on the temporary
differences that arise between the tax base of an asset or liability and its carrying value in the balance sheet of our companies prepared
for consolidation purposes, with the exception of temporary differences arising on investments in foreign subsidiaries where the Group
has plans to permanently reinvest profits into the foreign subsidiaries. Deferred tax assets on tax loss carry-forwards
are only recognized to the extent that it is “more likely than not” that future profits will be available and the tax loss
carry-forward can be utilized. Changes to tax laws or tax rates enacted at the
balance sheet date are taken into account in the determination of the applicable tax rate provided that they are likely to be applicable
in the period when the deferred tax assets or tax liabilities are realized. The Group is required to pay income taxes in a
number of countries. The Group recognizes the benefit of uncertain tax positions in the financial statements when it is more likely than
not that the position will be sustained on examination by the tax authorities. The benefit recognized is the largest amount of tax benefit
that is greater than 50 percent likely of being realized on settlement with the tax authority, assuming full knowledge of the position
and all relevant facts. The Group adjusts its recognition of these uncertain tax benefits in the period in which new information is available
impacting either the recognition or measurement of its uncertain tax positions. |
| Research Tax Credits | Research Tax Credits Research tax credits are provided by the French
government to give incentives for companies to perform technical and scientific research. WISeKey Semiconductors SAS is eligible to receive
such tax credits. These research tax credits are presented as a
reduction of research & development expenses in the income statement when companies that have qualifying expenses can receive such
grants in the form of a tax credit irrespective of taxes ever paid or ever to be paid, the corresponding research and development efforts
have been completed and the supporting documentation is available. The credit is deductible from the entity’s income tax charge
for the year or payable in cash the following year, whichever event occurs first. The tax credits are included in noncurrent deferred
tax credits in the balance sheet in line with ASU 2015-17. |
| Earnings per Share | Earnings per Share Basic earnings per share are calculated using
the two-class method required for companies with multiple classes of common stock. The two-class method determines net earnings per common
share for each class of common stock according to dividends declared or accumulated and participation rights in distributed and undistributed
earnings or losses. The two-class method requires income available to common stockholders for the period to be allocated between each
class of common stock based upon their respective rights to receive dividends as if all income for the period had been distributed. For SEALSQ, the dividend rights of the holders
of ordinary and Class F common stock (collectively, the “common stock”) differ. The dividend rights of a Class F Share are
five times greater than the dividend rights of an ordinary share. Undistributed earnings are allocated to the classes of common stock
proportionately to their dividend rights and the resulting net results per share will, therefore, vary for each class of common stock.
In line with ASC 260-10-45, the Group has presented the net earnings attributed to its common stock for each class of common stock. The
earnings per share calculation is based on the weighted average number of shares in issue of each class. When the effects are not antidilutive, diluted
earnings per share is calculated using the weighted-average outstanding common shares and the dilutive effect of stock options as determined
under the treasury stock method. |
| Segment Reporting | Segment Reporting Our chief operating decision maker, who is also
our Chief Executive Officer, regularly reviews information related to one operating segment, secure microcontrollers, for purposes of
allocating resources and assessing budgets and performance. We report our financial performance based on this segment structure described
in Note 28. |
| Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of new FASB Accounting Standard in
the current year – Prior-Year Financial Statements not restated: As of January 1, 2023, the Group adopted Accounting
Standards Update (ASU) 2021-08, Business Combinations (topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts
with Customers. ASU 2021-08 amends ASC 805 to “require
acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination.”
Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. ASU 2021-08 requires contract assets
and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance
with ASC 606 (meaning the acquirer should assume it has entered the original contract at the same date and using the same terms as the
acquiree). This new ASU applies to contract assets and contract liabilities acquired in a business combination and to other contracts
that directly/indirectly apply the requirements of ASC 606. There was no impact on the Group's results upon
adoption of the standard. New FASB Accounting Standard to be adopted
in the future: In March 2023, The FASB issued ASU No. 2023-01, Leases
(Topic 842): Common Control Arrangements, which requires all companies to amortize leasehold improvements associated with common
control leases over the asset’s useful life to the common control group regardless of the lease term. Summary: The amendments allow a private company Effective Date: ASU 2023-01 is effective for public
business entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. An entity should
apply the amendments prospectively to business combinations occurring on or after the effective dates. Early adoption is permitted. The Group expects to adopt all the aforementioned
guidance when effective. Management is assessing the impact of the aforementioned guidance on its consolidated financial statements but
does not expect it to have a material impact. In June 2023, The FASB issued ASU No. 2023-03,
Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which
clarifies how the fair value of equity securities subject to contractual sale restrictions is determined. Summary: The ASU clarifies that a contractual
sale restriction should not be considered in measuring fair value. It also requires entities with investments in equity securities subject
to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. Effective Date: ASU 2023-03 is effective for public
business entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. An entity should
apply the amendments prospectively to business combinations occurring on or after the effective dates. Early adoption is permitted. The Group expects to adopt all the aforementioned
guidance when effective. Management is assessing the impact of the aforementioned guidance on its consolidated financial statements but
does not expect it to have a material impact. |
