Related Parties

6 Months Ended

Jun. 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 $54,000 and $0.1 million during the three and six months ended June 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 $0.2 million as of June 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 $74,000 and $0.1 million during the three and six months ended June 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 June 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 June 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 $22,000 and $0.1 million during the three and six months ended June 30, 2024, respectively, and $47,000 and $0.1 million during the three and six months ended June 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 of 2024. See Note 7, 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 Silvaco Group, Inc., as guarantor, entered into a loan agreement pursuant to which Bank of the West agreed to lend Gu-Guide LP certain amounts of money (the “Loan”). The Loan was secured by a building representing a total of 9,000 square feet located at 4701 Patrick Henry Drive, Santa Clara, California 95054. In the event that the proceeds from the foreclosure of the foregoing collateral are insufficient to repay the outstanding amounts under the Loan, Silvaco Group Inc. had guaranteed the repayment of the outstanding amounts under the Loan. The Loan was repaid in July of 2024.

A member of the Company’s board of directors also serves as chairman of the board for one of Silvaco’s customers. The Company recorded $28,000 and $0.6 million in software revenue from this customer during the three and six months ended June 30, 2024, respectively, and $10,000 and $0.1 million in software revenue from this customer during the three and six months ended June 30, 2023, respectively. As of June 30 2024, the balance of the Company’s contract assets with this customer was $0.3 million.