svco-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-42043

Silvaco Group, Inc.

(Exact name of Registrant as specified in its charter)


Delaware	7372	27-1503712
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification Number)

Silvaco Group, Inc.

4701 Patrick Henry Drive, Building #23

Santa Clara, CA 95054

(408) 567-1000

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

SVCO

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of May 5, 2025 the registrant had 29,385,444 shares of common stock, $0.0001 par value per share, outstanding.

Table of Contents

TABLE OF CONTENTS


		Page
PART I.	Financial Information	1

Item 1.	Financial Statements (unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of (Loss) Income	2
	Condensed Consolidated Statements of Comprehensive (Loss) Income	3
	Consolidated Statements of Stockholders' Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to the Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30

PART II.	Other Information	31

Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64

SIGNATURES

SILVACO GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands except share and par value amounts)


	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	29,489	$	19,606
Current marketable securities	45,048		63,071
Accounts receivable, net	5,783		9,211
Contract assets, net	15,102		11,932
Prepaid expenses and other current assets	4,500		3,460
Total current assets	99,922		107,280
Non-current assets:
Non-current marketable securities	—		4,785
Property and equipment, net	890		865
Operating lease right-of-use assets, net	1,534		1,711
Intangible assets, net	9,997		4,369
Goodwill	14,337		9,026
Non-current portion of contract assets	9,860		12,611
Other assets	1,595		1,698
Total non-current assets	38,213		35,065
Total assets	$	138,135	$	142,345
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,137	$	3,316
Accrued expenses and other current liabilities	32,426		19,801
Accrued income taxes	1,728		1,668
Deferred revenue, current	8,618		7,497
Operating lease liabilities, current	644		744
Vendor financing obligation, current	1,191		1,462
Total current liabilities	46,744		34,488
Non-current liabilities:
Deferred revenue, non-current	3,604		3,593
Operating lease liabilities, non-current	866		946
Vendor financing obligation, non-current	2,995		2,928
Other non-current liabilities	333		307
Total liabilities	54,542		42,262
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024	—		—
Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,805,280 and 28,526,615 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	3		3
Additional paid-in capital	132,937		130,360
Accumulated deficit	(47,285)		(28,012)
Accumulated other comprehensive loss	(2,062)		(2,268)
Total stockholders' equity	83,593		100,083
Total liabilities and stockholders' equity	$	138,135	$	142,345

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SILVACO GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(Unaudited, in thousands except share and per share amounts)


	Three Months Ended March 31,
	2025		2024
Revenue:
Software license revenue	$	10,009	$	12,258
Maintenance and service	4,083		3,631
Total revenue	14,092		15,889
Cost of revenue	3,016		1,973
Gross profit	11,076		13,916
Operating expenses:
Research and development	4,800		3,616
Selling and marketing	4,719		3,312
General and administrative	8,120		4,600
Estimated litigation claim	13,069		—
Total operating expenses	30,708		11,528
Operating (loss) income	(19,632)		2,388
Interest income	863		—
Interest and other expense, net	(291)		(205)
(Loss) income before income tax provision	(19,060)		2,183
Income tax provision	213		805
Net (loss) income	$	(19,273)	$	1,378
Net (loss) income per share:
Basic and diluted	$	(0.67)	$	0.07

Weighted average shares used in computing per share amounts:
Basic and diluted	28,694,295		20,000,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SILVACO GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(Unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Net (loss) income	$	(19,273)	$	1,378
Other comprehensive income (loss):
Foreign currency translation adjustments	276		(185)
Unrealized loss on marketable securities	(70)		—
Comprehensive (loss) income	$	(19,067)	$	1,193

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SILVACO GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited, in thousands except share amounts)


	Three Months Ended March 31, 2025
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount
Balance, December 31, 2024	28,526,615	$	3	$	130,360	$	(28,012)	$	(2,268)	$	100,083
Issuance of common stock for share-based award plans	332,444	—		—		—		—		—
Tax withholding on restricted stock unit settlements	(53,779)	—		(253)		—		—		(253)
Stock-based compensation expense	—	—		2,830		—		—		2,830
Other comprehensive income	—	—		—		—		206		206
Net loss	—	—		—		(19,273)		—		(19,273)
Balance, March 31, 2025	28,805,280	$	3	$	132,937	$	(47,285)	$	(2,062)	$	83,593


	Three Months Ended March 31, 2024
	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount
Balance, December 31, 2023	20,000,000	$	2	$	—	$	11,392	$	(1,992)	$	9,402
Other comprehensive loss	—	—		—		—		(185)		(185)
Net income	—	—		—		1,378		—		1,378
Balance, March 31, 2024	20,000,000	$	2	$	—	$	12,770	$	(2,177)	$	10,595

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SILVACO GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net (loss) income	$	(19,273)	$	1,378
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	438		120
Stock-based compensation expense	2,277		—
Provision for credit losses	10		222
Estimated litigation claim	13,069		—
Accretion of discount on marketable securities, net	(261)		—
Change in fair value of contingent consideration	35		(8)
Changes in operating assets and liabilities:
Accounts receivable	3,520		(1,844)
Contract assets	440		(3,679)
Prepaid expenses and other current assets	(1,026)		788
Other assets	119		(274)
Accounts payable	(1,183)		877
Accrued expenses and other current liabilities	55		(729)
Accrued income taxes	58		574
Deferred revenue	567		(21)
Other non-current liabilities	20		24
Net cash used in operating activities	(1,135)		(2,572)
Cash flows from investing activities:
Maturities of marketable securities	23,000		—
Acquisition of Process Proximity Compensation	(11,500)		—
Purchases of property and equipment	(96)		(10)
Net cash provided by (used in) investing activities	11,404		(10)
Cash flows from financing activities:
Proceeds from loan facility	—		4,250
Deferred transaction costs	—		(364)
Payroll taxes related to shares withheld from employees	(252)		—
Contingent consideration	(46)		(13)
Payments of vendor financing obligation	(205)		—
Net cash (used in) provided by financing activities	(503)		3,873
Effect of exchange rate fluctuations on cash and cash equivalents	117		27
Net increase in cash and cash equivalents	9,883		1,318
Cash and cash equivalents, beginning of period	19,606		4,421
Cash and cash equivalents, end of period	$	29,489	$	5,739

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SILVACO GROUP, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Description of Business

Silvaco Group, Inc. (“Silvaco,” 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.

2. 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.

The condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 are unaudited. 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, 2024 and the related notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2025. The condensed consolidated balance sheet as of December 31, 2024 was derived from the audited consolidated financial statements as of that date. In management’s opinion, the condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the condensed consolidated financial statements.

The results of operations for the three months ended March 31, 2025 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.

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 has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act.

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.

Concentrations of credit risk

Accounts receivable from customers representing 10% or more of the Company’s total accounts receivable were as follows:


	March 31,	December 31,
	2025	2024
Customer A	19%	*
Customer B	13%	*
Customer C	12%	*
Customer D	*	21%
Customer E	*	15%

* Customer accounted for less than 10% of total accounts receivable at period end.

Revenue from customers representing 10% or more of the Company’s total revenue was as follows:


	Three Months Ended March 31,
	2025	2024
Customer F	12%	*
Customer G	*	11%

* Customer accounted for less than 10% of total revenue during the period.

In addition to the concentration of credit risk with respect to trade receivables and revenue, 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 March 31, 2025 and December 31, 2024 exceeded insured limits.

As of March 31, 2025, $4.1 million, or 14%, 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 $6.2 million, or 21%, 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.

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 $0.3 million and $(0.2) million for the three months ended March 31, 2025 and 2024, 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, net in the Company’s condensed consolidated statements of (loss) income. The Company recorded net foreign exchange transaction losses of $0.2 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

Net (loss) income per share

Basic net (loss) income per share is computed based on the weighted average number of shares of common stock outstanding. Diluted net (loss) income per share 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 net (loss) income per share because (i) the effect would be anti-dilutive for the three months ended March 31, 2025, and (ii) the securities were contingent upon conditions for issuance which were not satisfied as of March 31, 2024. See Note 8, Stock-based Compensation for additional information.


	March 31,
	2025	2024
RSU Grants	1,474,294	4,302,178

Accounting guidance issued and not yet adopted

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.

3. 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 and is generally recognized upon shipment and delivery of license keys. Maintenance and service revenue consists of both maintenance revenues, which is recognized ratably over the term of the arrangement, and professional services revenues which is recognized based on when the Company delivers the related service pursuant to the terms of the arrangement.

Customer contracts

The Company accounts for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights and payment terms can be identified, the contract has commercial substance, and it is probable the Company will collect substantially all of the consideration it is entitled to. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised software or providing service to a customer.

For multi-year software licenses, the Company generally invoices customers annually at the beginning of each annual coverage period.

Transaction price allocated to the remaining performance obligations

As of March 31, 2025, approximately $33.7 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 45% 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. Deferred revenue also includes contracts for professional services to be performed in the future.

During the three months ended March 31, 2025, the Company recognized revenue of $2.5 million that was included in the total deferred revenue balance as of December 31, 2024. All other activity in deferred revenue is due to the timing of invoices in relation to the timing of revenue recognized during the three months ended March 31, 2025, as described above.

4. Acquisitions

Optical Proximity Correction Suite of Tools

On March 4, 2025, the Company consummated an asset purchase agreement with Cadence Design Systems, Inc. (“Cadence”), pursuant to which, among other things, Silvaco agreed to acquire certain assets and assume certain liabilities comprising Cadence’s Process Proximity Compensation product line, an optical proximity correction (“OPC”) suite of tools, in exchange for $11.5 million in cash.

The acquisition was accounted for as a business combination, and Silvaco recorded the assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition. Silvaco recorded the excess of consideration transferred over the aggregate fair values of acquired assets and assumed liabilities as goodwill. The goodwill recorded was primarily attributable to synergies expected to arise after the acquisition and the value of the acquired workforce, and is expected to be deductible for U.S. income tax purposes. The Company expects that the addition of the OPC suite of tools and expert team, which are complementary to Silvaco’s EDA and TCAD suite, will enhance Silvaco’s ability to offer advanced computational lithography solutions that address the increasing complexity of semiconductor manufacturing at advanced nodes.

The following is a summary of the assets acquired and liabilities assumed in the OPC acquisition.


Asset Type	Weighted Average Amortization Period (Years)	Fair Value
		(in thousands)
Contract asset		$	615
Developed Technology	7	1,000
Customer Relationships	6	4,990
Goodwill		5,311
Deferred revenue		(416)
Net assets acquired and liabilities assumed		$	11,500

The fair value of developed technology was determined using a discounted cash flow model through application of the income approach, using the relief-from-royalty method, which assumed a market-based royalty rate applied to projected revenue. The fair value of customer relationships was determined using a discounted cash flow model under the income approach, specifically the multi-period excess earnings method, which discounts future cash flows attributable to existing customers, net of operating expenses and contributory asset charges.

During the three months ended March 31, 2025, the Company incurred $0.7 million in acquisition-related expenses, recognized as general and administrative expense on the condensed consolidated statements of (loss) income.

The operating results of OPC have been included in the Company's condensed consolidated financial statements since the date of acquisition and were not material for the period presented. Pro forma results of operations have not been presented because the effects of this acquisition were not material to the Company's condensed consolidated financial results.

5. Goodwill and Intangible Assets

During the three months ended March 31, 2025, the Company acquired OPC, which resulted in an increase to goodwill of $5.3 million. Refer to Note 4, Acquisitions, for further information.

As of March 31, 2025 and December 31, 2024, intangible assets were classified as follows:


		March 31, 2025
Intangible assets:	Weighted Average Amortization Period (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
		(in thousands)
Developed technology	6	$	1,800	$	(718)	$	1,082
Customer relationships	6	4,990		(61)		4,929
Non-compete agreements	5	20		(18)		2
Licensed IP	5	4,979		(995)		3,984
Total intangible assets		$	11,789	$	(1,792)	$	9,997


		December 31, 2024
Intangible assets:	Weighted Average Amortization Period (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
		(in thousands)
Developed technology	5	$	800	$	(666)	$	134
Customer relationships	5	90		(90)		—
Non-compete agreements	5	20		(17)		3
Licensed IP	5	4,979		(747)		4,232
Total intangible assets		$	5,889	$	(1,520)	$	4,369

Amortization expense for intangible assets was $0.4 million during the three months ended March 31, 2025, of which $0.2 million was recognized in cost of revenue as the licensed IP relates to recognized sales, 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 during the three months ended March 31, 2024, all of which was recognized in research and development expense in the Company’s condensed consolidated statements of (loss) income.

As of January 1, 2025, the Company removed the carrying value of $0.1 million of fully amortized intangible assets which at time of removal had $0 net book value.

As of March 31, 2025, estimated future amortization expense for the intangible assets reflected above was as follows:


Year Ending December 31,
	Amount
	(in thousands)
Remainder of 2025	$	1,573
2026	1,970
2027	1,970
2028	1,970
2029	1,223
Thereafter	1,291
Total net carrying value of intangible assets	$	9,997

6. Related Parties

The Company has a commercial lease agreement with Kipee International, Inc., a related party controlled by Katherine Ngai-Pesic, who is the Company's founding principal stockholder and chairperson of the Board of Directors, for Silvaco's corporate office in Santa Clara, California. In connection with this lease arrangement, the Company recorded rent expense of $0.1 million during each of the three months ended March 31, 2025 and 2024. The Company's original three year commercial office lease for this property commenced on May 1, 2022, and expired on April 30, 2025. The Company and Kipee International entered into a new commercial lease agreement, effective as of May 1, 2025, for a three year period ending on April 30, 2028.

The Company has two international office leases with New Horizons (Cambridge) LTD (“NHC”) and New Horizons France (“NHF”) in Cambridgeshire, England and Grenoble, France, respectively. NHC and NHF are real estate entities owned and controlled by Ms. Ngai-Pesic. In connection with these lease arrangements, the Company recorded rent expense of $0.1 million during each of the three months ended March 31, 2025 and 2024. The Company's right-of-use asset and operating lease liability under the NHC lease, which expires on December 31, 2029, is $0.9 million as of March 31, 2025. The Company's right-of-use asset and operating lease liability under the NHF lease, which expires on April 30, 2026, is $0.1 million as of March 31, 2025.

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 three months ended March 31, 2024. The outstanding amounts due under the 2022 Credit Line were repaid in full and the 2022 Credit Line was terminated in May 2024.

7. Debt and Financing Obligations

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 and recorded interest expense of $0.1 million on the East West Bank Loan during the three months ended March 31, 2024. In May 2024, the $4.3 million was repaid in full and the East West Bank Loan was terminated.

On April 11, 2024, the Company amended its license to use, perform, display, copy, reproduce, modify, adapt, alter, customize, translate or otherwise create derivative works based on certain technology of NXP Semiconductors Netherlands B.V. to develop and make licensed designs for the Company’s account, and to market, demonstrate, promote, sell, offer to sell, distribute and otherwise dispose of such licensed designs 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 $4.2 million as of March 31, 2025. 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 for the three months ended March 31, 2025. The Company’s vendor financing obligation is comprised of the following payments as of March 31, 2025:


For the year ending December 31,	Amount
	(in thousands)
Remainder of 2025	$	1,200
2026	1,200
2027	1,200
2028	1,200
Total undiscounted cash flows	$	4,800
Less: Imputed interest	614
Present value of vendor financing obligation	$	4,186
Vendor financing obligation, current	1,191
Vendor financing obligation, non-current	$	2,995

8. Stock-Based Compensation

Stock-Based Compensation Plans

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 initial public offering (“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 forfeited shares underlying RSUs granted under the 2014 Plan and shares reserved for future issuance under the 2014 Plan are included in the share reserve under the 2024 Plan. As of March 31, 2025, the number of shares of common stock reserved for future issuance under the 2024 Plan was 4,084,852.

The following table summarizes the Company's RSU activity pursuant to the 2014 Plan and the 2024 Plan for the three months ended March 31, 2025:


	Weighted Average			Number of Awards
	Grant Date Fair Value		Remaining Contract Term (in years)
Balance as of December 31, 2024	$	12.75	8.83	1,503,662
Granted	6.22		9.92	321,846
Vested	10.95		8.82	(332,444)
Forfeited / canceled	12.42		8.32	(18,770)
Balance as of March 31, 2025	$	12.43	8.83	1,474,294

SEC Form 10-Q filed by Silvaco Group Inc.