Silvaco Group, Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
SVCO$7.03+4.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001628280-25-023248
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsKey Operating Indicators and Non-GAAP Financial Measures—BookingsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001628280-25-038416
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsKey Operating Indicators and Non-GAAP Financial Measures—BookingsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 127 previous paragraphs and 140 current paragraphs.
72 unchanged; 36 reworded; 31 added; 19 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
The following table summarizes stock-based compensation expense by function for the three and six months ended June 30, 2025 and 2024:
Current report
Litigation settlement
Current report
In May 2025, Silvaco and two of our principal stockholders and members of our board of directors (the “Co-Defendants”) agreed to a settlement (the “Settlement Agreement”) in connection with litigation brought by the former shareholders of Nangate, Inc. (“Nangate”) and a third cross-complainant (together, the “Nangate Parties”). The $32.5 million settlement (the “Settlement Payment”) consists of an initial $16.0 million paid on June 17, 2025 and four quarterly installment payments of $4.1 million each, payable on August 15, 2025, November 14, 2025, February 13, 2026, and May 15, 2026. Following the Settlement Agreement, Silvaco and the Co-Defendants also executed an apportionment agreement pursuant to which the Co-Defendants agreed to bear 25% of the of the Settlement Payment, with Silvaco bearing the remaining 75%. In June 2025, we made the initial payment of $16.0 million on behalf of Silvaco and the Co-Defendants, which included a $6.0 million reimbursement from the Co-Defendants in accordance with the apportionment agreement. We recorded a charge to litigation settlement and accrued expenses and other current liabilities of $13.1 million for the six months ended June 30, 2025 related to the Settlement Agreement. We did not record a charge during the three months ended June 30, 2025. As of June 30, 2025, our remaining liability under the Settlement Payment was $14.4 million, which is included in accrued expenses and other current liabilities on the condensed consolidated balance sheet. In the event the Co-Defendants do not satisfy their obligation under the Settlement Agreement, we will assume payment of the Co-Defendants litigation settlement obligation of $2.1 million to avoid a default under the Settlement Agreement. In such unlikely circumstance, we expect to seek remedies from the Co-Defendants under the apportionment agreement. See Note 6 and Note 11 of our condensed consolidated financial statements for further discussion.
Current report
Loss on Debt Extinguishment
Current report
Loss on debt extinguishment includes losses incurred related to the extinguishment of our note purchase agreement with Micron Technology Inc. (the “Micron Note”) and our loan facility with East West Bank (the “East West Bank Loan”). See Note 7 of ourcondensed consolidated financial statements for further discussion.
Current report
For the six months ended June 30, 2025, total revenue decreased by $4.7 million, or 15%, to $26.1 million from $30.8 million for the six months ended June 30, 2024. Revenue associated with our TCAD tools decreased by $6.3 million. This decrease was partially offset by revenue derived from our EDA tools and IP sales which increased by $0.9 million and $0.7 million, respectively. Software license revenue decreased by $6.1 million, or 26%, to $17.2 million for the six months ended June 30, 2025 from $23.3 million for the six months ended June 30, 2024. Maintenance and service revenue increased by $1.3 million, or 18%, to $8.9 million for the six months ended June 30, 2025 from $7.6 million for the six months ended June 30, 2024.
Current report
Gross profit decreased by $1.6 million, or 15%, to $8.5 million for the three months ended June 30, 2025 from $10.1 million for the three months ended June 30, 2024 primarily due to a$2.9 million decrease in revenue driven by a decline in orders due to softer end market demand, partially offset by a$1.4 million decrease in cost of revenue. Cost of revenue during the three months ended June 30, 2024 included $2.1 million of additional stock-based compensation expense primarily related to the consummation of our IPO. This year-over-year decline in stock-based compensation expense waspartially offset by a$0.8 million increase in personnel and overhead costs dedicated to customer support during thethree months ended June 30, 2025. Gross profit margin increasedto 71% for the three months ended June 30, 2025 from 68% for the three months ended June 30, 2024, primarily due to the reduction in stock-based compensation expense.
Current report
For the six months ended June 30, 2025, gross profit decreased by $4.4 million, or 18%, to $19.6 million from $24.0 million for the six months ended June 30, 2024, primarily due to a$4.7 million decrease in revenue, partially offset by a$0.3 million decrease in cost of revenue. Cost of revenue during the six months ended June 30, 2024 included $1.9 million of additional stock-based compensation expense primarily related to the consummation of our IPO. This year-over-year decline in stock-based compensation expense waspartially offset by a$1.3 million increase in personnel and overhead costs dedicated to customer support and$0.2 million of amortization expense associated with acquired intangible assets during the six months ended June 30, 2025. Gross profit margin decreased to 75% for the six months ended June 30, 2025 from 78% for the six months ended June 30, 2024, primarily due to a decline in sales order volume due to softer end market conditions, as discussed above.
Current report
Research and development expenses decreased by $1.8 million, or 23%, to $5.9 million for the three months ended June 30, 2025 from $7.7 million for the three months ended June 30, 2024. This decrease was primarily attributable to $4.1 millionof stock-based compensation expense in the prior period related to the consummation of our IPO, as compared to$0.6 millionof stock-based compensation expense in the current year period. This decrease waspartially offset by a $1.6 million increase in employee compensation and benefits resulting from increased headcount, merit increases, and payroll tax, and a $0.1 million increase in software maintenance expense in the current year period.
Current report
For the six months ended June 30, 2025, research and development expenses decreased by $0.6 million, or 5%, to $10.7 million from $11.3 million for the six months ended June 30, 2024. This decrease was primarily attributable to $4.1 millionof stock-based compensation expense in the prior period related to the consummation of our IPO, as compared to$0.8 millionof stock-based compensation expense in the current year period. This decrease waspartially offset by a $2.1 million increase in employee compensation and benefits resulting from increased headcount, merit increases, and payroll tax, anda $0.4 million increase in software maintenance expense in the current year period.
Current report
Selling and marketing expenses decreased by $2.5 million, or 34%, to $4.7 million for the three months ended June 30, 2025 from $7.2 million for the three months ended June 30, 2024. This decrease was primarily attributable to $3.6 millionof stock-based compensation expense in the prior period related to the consummation of our IPO, as compared to$0.4 millionof stock-based compensation expense recognized in the current year period. This year over year decrease in stock-based compensation expense waspartially offset by a $0.7 million increase in employee compensation and benefits resulting from increased headcount, merit increases, and payroll tax in the current year period.
Current report
For the six months ended June 30, 2025, selling and marketing expenses decreased by $1.1 million, or 10%, to $9.4 million from $10.5 million for the six months ended June 30, 2024. This decrease was primarily attributable to $3.6 millionof stock-based compensation expense in the prior period related to the consummation of our IPO, as compared to$0.7 millionof stock-based compensation expense recognized i the current year period. This year over year decrease in stock-based compensation expense waspartially offset by a $1.8 million increase in employee compensation and benefits resulting from increased headcount, merit increases, and payroll tax in the current year period.
Current report
General and administrative expenses decreased by $10.2 million, or 56%, to $8.1 million for the three months ended June 30, 2025 from $18.3 million for the three months ended June 30, 2024. This decrease was primarily attributable to $11.7 millionof stock-based compensation expense and$0.6 million of IPO preparation costs recognized in the prior year in connection with the consummation of our IPO. This decrease was partially offset by a $1.1 million increase in acquisition-related legal and professional fees, $0.8 millionof stock-based compensation expense, and $0.3 million of amortization expense related to acquired intangible assets in the current year period.
Current report
For the six months ended June 30, 2025, general and administrative expenses decreased by $6.7 million, or 29%, to $16.2 million from $22.9 million for the six months ended June 30, 2024. This decrease was primarily attributable to $11.7 million of stock-based compensation expense and $0.7 million of IPO preparation costs recognized in the prior year in connection with the consummation of our IPO. This decrease was partially offset by a $1.9 million increase in acquisition-related legal and professional fees, a $1.0 million increase in employee compensation and benefits reflecting higher headcount, merit-based salary adjustments, and increased payroll taxes, $2.3 millionof stock-based compensation expense,$0.4 million of amortization expense related to acquired intangible assets, and $0.2 million of software license and maintenance fees in the current year period.
Current report
Litigation Settlement
Current report
Loss on debt extinguishment
Current report
On May 13, 2024, the Micron Note was converted into 294,217 shares of our common stock in connection with the consummation of our IPO. As a result, $5.6 million was recognized in additional paid-in capital and we recognized a loss on debt extinguishment of $0.6 million during the three and six months ended June 30, 2024. We also recognized a loss on debt extinguishment of $0.1 million associated with the settlement of the East West Bank Loan. See Note 7 of ourcondensed consolidated financial statements for further discussion.
Current report
Interest and other expense, net, was$0.4 million and$0.3 million for the three months ended June 30, 2025 and 2024, respectively, and$0.7 million and$0.6 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
Income Tax (Benefit) Provision
Current report
(6)Reflects loss incurred on conversion of the Micron Note to common stock in connection with the consummation of our IPO and the loss incurred on the extinguishment of the East West Bank Loan.
Current report
Our financial commitments for contractual obligations as of June 30, 2025 include our operating leases, our vendor financing obligation, contingent consideration related to the acquisition of Tech-X, and our obligation for the Settlement Agreement with the Nangate Parties.
Current report
As of June 30, 2025 we had:
Current report
◦Operating lease obligations consisted of a current obligation of $0.9 million and a non-current obligation of $1.3 million.
Current report
◦A vendor financing obligation, which includes a current obligation of $1.1 million and a non-current obligation of $1.9 million.
Current report
◦Contingent consideration related to the acquisition of Tech-X, which consisted of a current obligation of $1.0 million and a non-current obligation of $0.7 million.
Current report
◦An obligation to pay the Settlement Payment of $14.4 million, which is classified as current.
Current report
◦A contingent settlement payment obligation of up to $2.1 million, which would become payable in the event the Co-Defendants are unable to fulfill their portion of the Settlement Payment. This amount is not considered probable and therefore is not recognized as a liability as of June 30, 2025.
Current report
For further information, refer to Note 6, Note 7, Note 11 and Note 12 to our condensed consolidated financial statements.
Current report
Litigation Settlement
Current report
In May 2025, Silvaco and the Co-Defendants agreed to the Settlement Agreement in connection with litigation brought by the Nangate Parties. The Settlement Payment consists of an initial $16.0 million payment due on June 18, 2025 and four quarterly installment payments of $4.1 million each, payable on August 15, 2025, November 14, 2025, February 13, 2026, and May 15, 2026. Following the Settlement Agreement, Silvaco and the Co-Defendants also executed an apportionment agreement with us under which the Co-Defendants agreed to bear 25% of the of the Settlement Payment, with Silvaco bearing the remaining 75%. In June 2025, we made the initial payment of $16.0 million on behalf of Silvaco and the Co-Defendants, and received a $6.0 million reimbursement from the Co-Defendants in accordance with the apportionment agreement. We recorded a charge to litigation settlement and accrued expenses and other current liabilities of $13.1 million for the six months ended June 30, 2025 related to the Settlement Agreement. We did not record a charge during the three months ended June 30, 2025. As of June 30, 2025, our remaining liability under the Settlement Payment was $14.4 million, which is included in accrued expenses and other current liabilities on the condensed consolidated balance sheet. In the event that the Co-Defendants do not satisfy their obligation under the Settlement Agreement, we will assume payment of the Co-Defendants litigation settlement obligation of $2.1 million to avoid a default under the Settlement Agreement. In such unlikely circumstance, we expect to seek remedies from the Co-Defendants under the apportionment agreement. See Note 6 and Note 11 of our condensed consolidated financial statements for further discussion.
Current report
As of June 30, 2025, we maintained restricted cash of $16.5 million, which is held to secure an irrevocable standby letter of credit issued in connection with the Settlement Agreement. Of the $16.5 million remaining due under the Settlement Agreement, the Company is obligated to pay $14.4 million. The letter of credit, secured with East West Bank on May 17, 2025, is scheduled to expire on June 30, 2026, unless drawn upon or renewed. As of June 30, 2025, no amounts had been drawn under the letter of credit. Restricted cash is classified as a current asset on the condensed consolidated balance sheets based on the expected expiration date of the letter of credit. See Note 6 and Note 11 of our condensed consolidated financial statements for further discussion.
Removed paragraphs (19)
Previous report
Our Ability to Calibrate Our Product Mix to Enhance Margin Expansion
Previous report
We anticipate that our results will be impacted by the increase or decrease of a given product or service as a percentage of total revenue relative to our other products and services. As higher margin products become a larger part of our product mix, or conversely as low margin products become a smaller part of our product mix, our gross margin will expand. While we may enter into agreements with third parties for lower margin product solutions, we anticipate our focus on higher margin solutions will continue to lead our other products and services within our product mix, which we anticipate may lead to gross margin and operating margin expansion. Our future ability to shape our product mix with higher margin products making up a larger percentage of our total revenue will impact our results of operations.
Previous report
Under certain SIP license agreements, we can also derive revenue through royalties from customers who agree to pay usage-based fees to embed our SIP into their own software offerings. Revenue under SIP royalty agreements is generally recognized during the period in which the customer sells its solutions which incorporate our SIP.
Previous report
Estimated litigation claim
Previous report
Estimated litigation claim expense consists of legal costs that became probable and reasonably estimable associated with our obligations with respect to the earnout payment due to the selling shareholders of Nangate, Inc. (“Nangate”), along with a third cross complainant (collectively, the “Nangate Parties”). 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, 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 “Contract Damages”). As a result, during the year ended December 31, 2024, we recorded a charge to estimated litigation claim and accrued expenses and other current liabilities of $11.3 million for the Contract Damages awarded to the Nangate Parties. The jury also found Silvaco and our board of directors (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 Silvaco 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.
Previous report
The parties have reached preliminary agreement on key terms of a potential settlement, subject to negotiation and execution of a settlement agreement. In connection with the potential settlement, we recorded a charge to estimated litigation claim and accrued expenses and other current liabilities of $13.1 million for the three months ended March 31, 2025. We can give no assurance that a settlement will be finalized. If a settlement is not finalized, we and the Co-Defendants can appeal the judgement, which will require us to collateralize and post an appellate bond of up to $35.4 million. We believe we have strong grounds for appeal and are pursuing post-trial motions. Additionally, we believe that there are strong arguments in support of substantially reducing the punitive damages portion of the Fraud Damages, which we believe 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. See Note 11 of our condensed consolidated financial statements for further discussion.
Previous report
Gross profit decreased by $2.8 million, or 20%, to $11.1 million for the three months ended March 31, 2025 from $13.9 million for the three months ended March 31, 2024, primarily due to a decline in orders from Asia and the Americas. Gross profit margin decreased to 79% for the three months ended March 31, 2025 from 88% for the three months ended March 31, 2024. The decrease was also attributable to$0.3 million of non-cash amortization associated with our acquired intangible assets, $0.2 million of stock-based compensation expense, and an increase in our allocation of labor time and effort dedicated to cost of sales.
Previous report
Research and development expenses were $4.8 million and $3.6 million for the three months ended March 31, 2025 and 2024, respectively. The increase of $1.2 million, or 33%, was primarily due to a $0.6 million increase in employee compensation and benefits due to increased headcount, merit increases, and payroll tax, a $0.3 million increase in software maintenance expense and $0.2 million of stock-based compensation expense recorded during the three months ended March 31, 2025.
Previous report
Selling and marketing expenses were $4.7 million and $3.3 million for the three months ended March 31, 2025 and 2024, respectively. The increase of $1.4 million, or 42%, was primarily due to a $1.1 million increase in employee compensation and benefits due to increased headcount, merit increases, and payroll tax, and $0.3 million of stock-based compensation expense recorded during the three months ended March 31, 2025.
Previous report
General and administrative expenses were $8.1 million and $4.6 million for the three months ended March 31, 2025 and 2024, respectively. The increase of $3.5 million, or 77%, was primarily due to $1.5 million of stock-based compensation expense, a $0.7 million increase in acquisition-related legal fees, a $0.7 million increase in employee compensation and benefits due to increased headcount, merit increases, and payroll tax, a $0.4 million increase in professional consulting fees, and a $0.2 million increase in corporate insurance recorded during the three months ended March 31, 2025.
Previous report
Estimated Litigation Claim
Previous report
Interest and other expense, net, was$0.3 million and$0.2 million for the three months ended March 31, 2025 and 2024, respectively. The increase of $0.1 million was primarily due to a $0.1 million increase in foreign exchange losses recorded during the three months ended March 31, 2025.
Previous report
Income Tax Provision
Previous report
Our financial commitments for contractual obligations as of March 31, 2025, include our operating leases and our vendor financing obligation. Our operating leases include a current obligation of $0.6 million and a non-current obligation of $0.9 million. Our vendor financing obligation, as noted in Note 7 of our condensed consolidated financial statements, includes a current obligation of $1.2 million and a non-current obligation of $3.0 million.
Previous report
Estimated Litigation Claim
Previous report
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, 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 “Contract Damages”). As a result, during the year ended December 31, 2024, we recorded a charge to estimated litigation claim and accrued expenses and other current liabilities of $11.3 million for the Contract Damages awarded to the Nangate Parties.
Previous report
The jury also found Silvaco and our board of directors (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 Silvaco 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.
Previous report
The parties have reached preliminary agreement on key terms of a potential settlement, subject to negotiation and execution of a settlement agreement. In connection with the potential settlement, we recorded a charge to estimated litigation claim and accrued expenses and other current liabilities of $13.1 million for the three months ended March 31, 2025. We can give no assurance that a settlement will be finalized. If a settlement is not finalized, we and the Co-Defendants can appeal the judgement, which will require us to collateralize and post an appellate bond of up to $35.4 million. We believe we have strong grounds for appeal and are pursuing post-trial motions. Additionally, we believe that there are strong arguments in support of substantially reducing the punitive damages portion of the Fraud Damages, which we believe 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. See Note 11 of our condensed consolidated financial statements for further discussion.
Previous report
As of March 31, 2025 and December 31, 2024, we did not have any off-balance sheet arrangements.
Reworded paragraphs (36)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included under Part I, Item 1 in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2024 included in the 2024 Form 10-K. This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks, uncertainties and assumptions set forth in our 2024 Form 10-K. Our actual results could differ materially from those discussed in or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q titled “Risk Factors.” Forward-looking statements may be identified by words including, but not limited to, “may,” “will,” “could,” “would,” “can,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project,” “continue,” “forecast,” "likely," "potential," "seek," or the negatives of such terms and similar expressions. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included under Part I, Item 1 in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2024 included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”). This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks, uncertainties and assumptions set forth in our 2024 Form 10-K. Our actual results could differ materially from those discussed in or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q titled “Risk Factors.” Forward-looking statements may be identified by words including, but not limited to, “may,” “will,” “could,” “would,” “can,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project,” “continue,” “forecast,” "likely," "potential," "seek," or the negatives of such terms and similar expressions. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Previous wording
Our go-to-market strategy centers on selling software solutions and associated maintenance and services. Our software solutions accounted for 71% and 77% of our revenue for the three months ended March 31, 2025 and 2024, respectively. Associated maintenance and services revenue accounted for 29% and 23% of our revenue for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025 and 2024, approximately 76% and 88% of our bookings came from existing customers, respectively, and the remainder came from new customers. See “Key Operating Indicators and Non-GAAP Financial Measures—Bookings” for a description of how we define bookings.
Current wording
Our go-to-market strategy focuses on selling software solutions along with associated maintenance and services. Software solutions represented 60% and 66% of our revenue for the three and six months ended June 30, 2025, respectively, compared to 74% and 75% for the same periods in 2024. Revenue from associated maintenance and services accounted for 40% and 34% of our revenue for the three and six months ended June 30, 2025, respectively, compared to 26% and 25% for the corresponding periods in 2024. Approximately 70% and 73% of our bookings were attributable to existing customers for the three and six months ended June 30, 2025, respectively, compared to 91% and 89% for the same periods in 2024. See “Key Operating Indicators and Non-GAAP Financial Measures—Bookings” for a description of how we define bookings.
Previous wording
Similar to trends observed across the semiconductor industry, we saw a decline in orders from Asia during the three months ended March 31, 2025 primarily driven by economic challenges and the ongoing strain in U.S.-China trade relations. During the three months ended March 31, 2025, our bookings were $13.7 million as compared to $16.1 million for the three months ended March 31, 2024. Our revenue was $14.1 million for the three months ended March 31, 2025, as compared to $15.9 million for the three months ended March 31, 2024.
Current wording
Similar to trends observed across the semiconductor industry, we saw a decline in orders during the three and six ended June 30, 2025 primarily driven by softer end market demand. During the three and six months ended June 30, 2025, our bookings were $12.9 million and $26.6 million, respectively, as compared to $19.5 million and $35.6 million for the same periods in 2024. Our revenue was $12.0 million and $26.1 million for the three and six months ended June 30, 2025, respectively, as compared to $15.0 million and $30.8 million for the corresponding periods in 2024.
Previous wording
On March 4, 2025, we consummated an asset purchase agreement with Cadence Design Systems, Inc. (“Cadence”), pursuant to which, among other things, we 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.
Current wording
On March 4, 2025, we consummated an asset purchase agreement with Cadence Design Systems, Inc. (“Cadence”), pursuant to which, among other things, we agreed to acquire certain assets and assume certain liabilities comprising Cadence’s Process Proximity Compensation product line, an optical proximity correction suite of tools (the “OPC Business”), in exchange for $11.5 million in cash.
Previous wording
On April 29, 2025, we entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with the shareholders of Tech-X Corporation (the “Sellers”) pursuant to which we acquired all of the outstanding shares of Tech-X Corporation for an aggregate purchase price of $5.0 million, payable in cash and shares of the Company. The Stock Purchase Agreement also provides that the Sellers may receive up to $2.0 million in contingent consideration upon achieving certain research and development milestones.
Current wording
On April 29, 2025, we entered into a stock Purchase Agreement with the shareholders of Tech-X Corporation (“Tech-X”), pursuant to which we acquired all of the outstanding shares of Tech-X for an aggregate purchase price of $8.0 million. The purchase consideration consisted of (i) $3.9 million in cash, (ii) 457,666 shares of the Company’s common stock with a fair value of $2.4 million on the closing date, and (iii) contingent consideration, with a maximum payout of $2.0 million, and with an estimated fair value of $1.7 million, payable in cash upon the achievement of specified technical milestones through December 2026.
Previous wording
We believe that trends in the global EDA software market, including growth in the integrated circuits and electronics manufacturing markets, growing complexity of semiconductor and photonics designs, and increasing challenges associated with advanced materials and shrinking process technology nodes across the EDA market, will increase the demand for our software solutions over time, which will have a direct impact on our future revenues and results of operations. In response to this increase in complexity and new challenges facing designers, we have increased investments in our research and development for new software product offerings. For example, our research and development expense was 34% and 23% of revenue for the three months ended March 31, 2025 and 2024, respectively. We plan to continue to invest in our software solutions to establish and expand a leadership position in our target markets. We also plan to use our research and development efforts to continue to cater to strategic customer needs.
Current wording
We believe that trends in the global EDA software market, including growth in the integrated circuits and electronics manufacturing markets, growing complexity of semiconductor and photonics designs, and increasing challenges associated with advanced materials and shrinking process technology nodes across the EDA market, will increase the demand for our software solutions over time, which will have a direct impact on our future revenues and results of operations. In response to this increase in complexity and new challenges facing designers, we have increased investments in our research and development for new software product offerings. For example, our research and development expense was 49% and 41% of revenue for the three and six months ended June 30, 2025, respectively, and 52% and 37% of revenue for the three and six months ended June 30, 2024, respectively. We plan to continue to invest in our software solutions to establish and expand a leadership position in our target markets. We also plan to use our research and development efforts to continue to cater to strategic customer needs.
Previous wording
Revenue from our software licenses is classified as software license revenue. Software license revenue is recognized upfront upon delivery of the licensed product. We also offer licenses of our standard SIP developed in house, and we offer licenses developed in partnership with NXP Semiconductors Netherlands B.V. (“NXP”) (the “NXP IP”). Our SIP licenses provide customers with access to SoC design SIP which meet established industry standards, thus saving customers the time and resources required to develop similar design methodologies. Our standard SIPs are generally ready to use upon delivery, meaning no customization is required for our customers to obtain value from the use of our SIP in their IC designs. We recognize revenue associated with licenses of our SIP at the commencement of the contract upon delivery of the licensed SIP. With respect to the NXP IP, we generally act as a principal to the transaction because we have a license to sell, and therefore control the NXP IP that we deliver to the customer. Consistent with our role as the principal, we recognize SIP revenue of the NXP IP on a gross basis. Any royalty fees based upon unit sales, revenue or flat fees which were paid to NXP were reported in cost of revenue upon delivery pursuant to the terms and conditions of our contractual obligations with the customers.
Current wording
Revenue from our software licenses is classified as software license revenue. Software license revenue is recognized upfront upon delivery of the licensed product. We also offer licenses of our standard SIP developed in house, and we offer licenses developed in partnership with NXP Semiconductors Netherlands B.V. (“NXP”) (the “NXP IP”).
Previous wording
We also recognized an immaterial portion of our revenue from device characterization and modeling services for the three months ended March 31, 2025 and 2024. Revenue is recognized upon the completion of the requested services and, as applicable, satisfaction of customer acceptance terms. Revenue from these services is classified as maintenance and service revenue.
Current wording
We also recognized an immaterial portion of our revenue from device characterization and modeling services for the three and six months ended June 30, 2025 and 2024. Revenue is recognized upon the completion of the requested services and, as applicable, satisfaction of customer acceptance terms. Revenue from these services is classified as maintenance and service revenue.
Previous wording
Cost of revenue consists of personnel costs comprised of salaries and benefits for employees directly involved in our customer support function, such as customer support engineering salary and benefits, costs of our other customer services, allocation of overhead and facility costs, amortization of acquired intangible assets, and royalties related to the recognized revenue. We recognized $0.2 million of stock-based compensation expense in cost of revenue during the three months ended March 31, 2025. We also recognized $0.2 million of amortization associated with our acquired intangible assets in cost of revenue during the three months ended March 31, 2025. Gross profit represents revenue less cost of revenue.
Current wording
Cost of revenue consists of personnel costs comprised of salaries and benefits for employees directly involved in our customer support function, such as customer support engineering salary and benefits, costs of our other customer services, allocation of overhead and facility costs, amortization of acquired intangible assets, and royalties related to the recognized revenue. We recognized $0.4 million and $0.6 million of stock-based compensation expense in cost of revenue during the three and six months ended June 30, 2025, respectively, as compared to $2.5 million for both the three and six months ended June 30, 2024. The decrease was primarily related to stock-based compensation expense recorded during 2024 in connection with the consummation of our initial public offering (“IPO”). We also recognized $0.2 million and $0.5 million of amortization associated with our acquired intangible assets in cost of revenue during the three and six ended June 30, 2025, respectively, compared to $0.2 million for both the three and six months ended June 30, 2024.
Previous wording
Our operating expenses consist of research and development, selling and marketing, general and administrative expenses, and estimated litigation claim. Related personnel costs are the most significant component of our operating expenses and consist of salaries, benefits, stock-based compensation expense, bonuses and commissions. Our operating expenses also include consulting costs, costs of facilities, information technology, depreciation and amortization. We expect our operating expenses to fluctuate as a percentage of revenue over time. During the three months ended March 31, 2025, we recognized $2.1 million in total stock-based compensation expense. Of the total stock-based compensation expense recorded, we recognized approximately $1.5 million, $0.2 million, and $0.3 million in general and administrative expense, research and development expense, and selling and marketing expense, respectively, during the three months ended March 31, 2025.
Current wording
Our operating expenses consist of research and development, selling and marketing, general and administrative expenses, and litigation settlement. Related personnel costs are the most significant component of our operating expenses and consist of salaries, benefits, stock-based compensation expense, bonuses and commissions. Our operating expenses also include consulting costs, costs of facilities, information technology, depreciation and amortization. We expect our operating expenses to fluctuate as a percentage of revenue over time. During the three and six months ended June 30, 2025, we recognized $1.8 million and $3.8 million in total stock-based compensation expense, respectively, as compared to $19.4 million for both the three and six months ended June 30, 2024. The decrease was primarily related to stock-based compensation expense recorded during 2024 in connection with the consummation of our IPO.
Previous wording
The following table sets forth our results of operations for the three months ended March 31, 2025 and 2024:
Current wording
The following table sets forth our results of operations for the three and six months ended June 30, 2025 and 2024:
Previous wording
The following table summarizes our results of operations as a percentage of total revenue for the three months ended March 31, 2025 and 2024:
Current wording
The following table summarizes our results of operations as a percentage of total revenue for the three and six months ended June 30, 2025 and 2024:
Previous wording
Comparison of the Three Months Ended March 31, 2025 and 2024
Current wording
Comparison of the Three and Six Months Ended June 30, 2025 and 2024
Previous wording
Total revenue decreased by $1.8 million, or 11%, to $14.1 million for the three months ended March 31, 2025 from $15.9 million for the three months ended March 31, 2024. The decrease in total revenue for thethree months ended March 31, 2025 is primarily due to softening demand in the Americas, economic challenges in Asia, and the ongoing strain in U.S.-China trade relations. Revenue associated with our TCAD tools decreased by $2.7 million. This decrease was partially offset by revenue derived from our EDA tools and IP sales which increased by $0.4 million and $0.5 million, respectively. Software license revenue decreased by $2.2 million, or 18%, to $10.0 million for the three months ended March 31, 2025 from $12.3 million for the three months ended March 31, 2024. Maintenance and service revenue increased by $0.5 million, or 12%, to $4.1 million for the three months ended March 31, 2025 from $3.6 million for the three months ended March 31, 2024.
Current wording
Total revenue decreased by $2.9 million, or 19%, to $12.0 million for the three months ended June 30, 2025 from $15.0 million for the three months ended June 30, 2024. The decrease in total revenue for thethree months ended June 30, 2025 is primarily due softer end market demand. Revenue associated with our TCAD tools decreased by $3.5 million. This decrease was partially offset by revenue derived from our EDA tools and IP sales which increased by $0.5 million and $0.2 million, respectively. Software license revenue decreased by $3.8 million, or 35%, to $7.2 million for the three months ended June 30, 2025 from $11.0 million for the three months ended June 30, 2024. Maintenance and service revenue decreased by $0.9 million, or 23%, to $4.8 million for the three months ended June 30, 2025 from $3.9 million for the three months ended June 30, 2024.
Previous wording
Estimated litigation claim was $13.1 million for the three months ended March 31, 2025. In connection with a potential settlement, we recorded a charge to estimated litigation claim and accrued expenses and other current liabilities of $13.1 million for the three months ended March 31, 2025. See Note 11 of our condensed consolidated financial statements for further discussion.
Current wording
Litigation settlement was $0 and $13.1 million for the three and six months ended June 30, 2025, as compared to $14.7 million for the three and six months ended June 30, 2024. See Note 6 and Note 11 of our condensed consolidated financial statements for further discussion.
Previous wording
Interest income reflects interest earned and accretion on our cash and cash equivalents and marketable securities.
Current wording
Interest income reflects interest earned and accretion on our cash equivalents and marketable securities.
Previous wording
Income tax provision was $0.2 million and $0.8 million for the three months ended March 31, 2025 and 2024, respectively. See Note 9 of our condensed consolidated financial statements for further discussion.
Current wording
Income tax (benefit) provision was $(0.5) million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively and (benefit) provisions of$(0.3) millionand$1.0 millionfor thesix months ended June 30, 2025 and 2024, respectively. See Note 9 of our condensed consolidated financial statements for further discussion.
Previous wording
We define a booking as a signed contract and related purchase commitment from a customer, based on the value set forth in a purchase order. We believe bookings are a useful metric to measure the success of customer sales and provide an indication of trends in our operating results that are not necessarily reflected in our revenue, because our revenue recognition is based on the satisfaction of our customer obligations, and not of the successful execution of a booking at the time of sale. Reported bookings may be subject to adjustments and potential cancellations prior to the satisfaction of our customer obligations. For the three months ended March 31, 2025, we recorded $13.7 million in bookings as compared to $16.1 million in bookings for the three months ended March 31, 2024.
Current wording
We define a booking as a signed contract and related purchase commitment from a customer, based on the value set forth in a purchase order. We believe bookings are a useful metric to measure whether we are successful in our sales efforts with new and existing customers, and provide an indication of trends in our operating results that are not necessarily reflected in our revenue, because our revenue recognition is based on the satisfaction of our customer obligations, and not of the successful execution of a booking at the time of sale. Reported bookings may be subject to adjustments and potential cancellations prior to the satisfaction of our customer obligations. For the three and six months ended June 30, 2025, we achieved $12.9 million and $26.6 million in bookings, respectively, as compared to $19.5 million and $35.6 million in bookings for the three and six months ended June 30, 2024, respectively.
Previous wording
We define non-GAAP operating income as our GAAP operating (loss) income adjusted to exclude certain costs, including initial public offering (“IPO”) preparation costs, acquisition-related estimated litigation claim and legal costs, acquisition-related professional fees and retention bonus, stock-based compensation expense, and amortization of acquired intangible assets. We define non-GAAP net (loss) income as our GAAP net (loss) income adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, acquisition-related professional fees and retention bonus, stock-based compensation expense, amortization of acquired intangible assets, change in fair value of contingent consideration, foreign exchange (gain) loss, and the income tax effect on non-GAAP items. We monitor non-GAAP operating (loss) income and non-GAAP net (loss) income as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.
Current wording
We define non-GAAP operating income as our GAAP operating (loss) income adjusted to exclude certain costs, including IPO preparation costs, acquisition-related litigation settlement and legal costs, acquisition-related professional fees and retention bonus, stock-based compensation expense, and amortization of acquired intangible assets. We define non-GAAP net (loss) income as our GAAP net (loss) income adjusted to exclude certain costs, including IPO preparation costs, acquisition-related litigation settlement and legal costs, acquisition-related professional fees and retention bonus, stock-based compensation expense, amortization of acquired intangible assets, change in fair value of contingent consideration, foreign exchange (gain) loss, loss on debt extinguishment, and the income tax effect on non-GAAP items. We monitor non-GAAP operating (loss) income and non-GAAP net (loss) income as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.
Previous wording
The following table reconciles operating (loss) income to non-GAAP operating (loss) income.
Current wording
The following table reconciles operating loss to non-GAAP operating (loss) income.
Previous wording
The following table reconciles net (loss) income to non-GAAP net (loss) income.
Current wording
The following table reconciles net loss to non-GAAP net (loss) income.
Previous wording
(1)Reflects litigation-related expenses incurred in connection with our acquisitions and the Nangate estimated litigation claim accrual.
Current wording
(1)Reflects litigation-related expenses incurred in connection with our acquisitions and the Nangate litigation settlement accrual.
Previous wording
(2)Reflects acquisition-related professional fees and retention bonuses related to acquisitions of the OPC business and other potential acquisitions.
Current wording
(2)Reflects acquisition-related professional fees and retention bonuses related to acquisitions of the OPC Business and Tech-X and other potential acquisitions.
Previous wording
(4)Reflects one-time costs including third-party professional services fees and costs incurred in connection with, and in preparation for, the IPO. Such costs do not include those costs that were considered direct and incremental to the IPO and therefore capitalized as deferred transaction costs.
Current wording
(4)Reflects one-time costs including third-party professional services fees and costs incurred in connection with, and in preparation for, the consummation of our IPO. Such costs do not include those costs that were considered direct and incremental to the IPO and therefore capitalized as deferred transaction costs.
Previous wording
(6)Reflects the increase in income tax expenses due to non-GAAP adjustments.
Current wording
(7)Reflects the increase in income tax expenses due to non-GAAP adjustments.
Previous wording
Since inception, we have financed operations primarily through proceeds received from payments from our customers, borrowings from Ms. Ngai-Pesic and other lenders, and the net proceeds from the sale of our common stock in the IPO. Our primary sources of liquidity are cash, cash equivalents and marketable securities including cash generated from operations. As of March 31, 2025, we had $29.5 million in cash and cash equivalents, of which $6.2 million was held by our foreign subsidiaries, and $45.0 million in short-term marketable securities.
Current wording
Since inception, we have financed operations primarily through proceeds received from payments from our customers, borrowings from Ms. Ngai-Pesic and other lenders, and the net proceeds from the sale of our common stock in the IPO. Our primary sources of liquidity are cash, cash equivalents and marketable securities including cash generated from operations. As of June 30, 2025, we had $29.6 million in cash and cash equivalents and restricted cash, of which $4.1 million was held by our foreign subsidiaries, and $25.9 million in short-term marketable securities.
Previous wording
In December 2023, we entered into a loan facility with East West Bank (the “East West Bank Loan”) which provides for borrowings of up to $5.0 million bearing interest at a per annum rate equal to one half of one percent (0.5%) above the greater of (i) the prime rate as reported in The Wall Street Journal or (ii) four and one half percent (4.5%). We drew $4.3 million on the East West Bank Loan during the three months ended March 31, 2024. In May 2024, the East West Bank Loan was repaid in full and terminated.
Current wording
In December 2023, we entered into the East West Bank Loan which provides for borrowings of up to $5.0 million bearing interest at a per annum rate equal to one half of one percent (0.5%) above the greater of (i) the prime rate as reported in The Wall Street Journal or (ii) four and one half percent (4.5%). We drew $4.3 million on the East West Bank Loan during the six months ended June 30, 2024. In May 2024, the East West Bank Loan was repaid in full and terminated.
Previous wording
On April 11, 2024, we amended and restated our license agreement with NXP, pursuant to which we recorded an associated vendor financing obligation. The vendor financing obligation was $4.2 million as of March 31, 2025. We determined that the vendor financing obligation had an imputed interest rate of 9%, which is reflective of our borrowing rate with similar terms to that of the license agreement.
Current wording
On April 11, 2024, we amended and restated our license agreement with NXP, pursuant to which we recorded an associated vendor financing obligation. The vendor financing obligation was $3.1 million as of June 30, 2025. We determined that the vendor financing obligation had an imputed interest rate of 9%, which is reflective of our borrowing rate with similar terms to that of the license agreement.
Previous wording
On April 16, 2024, we entered into a note purchase agreement with Micron Technology, Inc. (“Micron”), a customer of the Company, pursuant to which we issued a senior subordinated convertible promissory note (the “Micron Note”) in the principal amount of $5.0 million. The Micron Note accrued interest at a rate of 8% per annum with principal and interest due upon maturity three years after the date of issuance. On May 13, 2024, the Micron Note was converted into 294,217 shares of our common stock in connection with the consummation of the IPO.
Current wording
On April 16, 2024, we entered into a note purchase agreement with Micron Technology, Inc. (“Micron”), a customer of the Company, pursuant to which we issued the Micron Note in the principal amount of $5.0 million. The Micron Note accrued interest at a rate of 8% per annum with principal and interest due upon maturity three years after the date of issuance. On May 13, 2024, the Micron Note was converted into 294,217 shares of our common stock in connection with the consummation of the IPO.
Previous wording
On May 13, 2024, we sold 6,000,000 shares of common stock in the IPO at a price to the public of $19.00 per share. The gross proceeds from the IPO were $114.0 million, with $106.0 million funded to us after deducting underwriting discounts and commissions of $8.0 million.
Current wording
On May 13, 2024, we sold 6,000,000 shares of common stock in the IPO at a price to the public of $19.00 per share. The gross proceeds from the consummation of our IPO were $114.0 million, with $106.0 million funded to us after deducting underwriting discounts and commissions of $8.0 million.
Previous wording
As of March 31, 2025, $4.1 million, or 13.9%, of our cash and cash equivalents was maintained with one financial institution, where our current deposits are in excess of federally insured limits. Past macroeconomic conditions have resulted in the actual or perceived financial distress of many financial institutions, including the 2023 failures of Silicon Valley Bank, Signature Bank and First Republic Bank and the UBS takeover of Credit Suisse. If the financial institutions with whom we do business were to become distressed or placed into receivership, we may be unable to access the cash we have on deposit with such institutions. If we are unable to access our cash as needed, our financial position and ability to operate our business could be adversely affected.
Current wording
As of June 30, 2025, $19.3 million, or 65%, of our cash and cash equivalents and restricted cash was maintained with one financial institution, where our current deposits are in excess of federally insured limits. Past macroeconomic conditions have resulted in the actual or perceived financial distress of many financial institutions, including the 2023 failures of Silicon Valley Bank, Signature Bank and First Republic Bank and the UBS takeover of Credit Suisse. If the financial institutions with whom we do business were to become distressed or placed into receivership, we may be unable to access the cash we have on deposit with such institutions. If we are unable to access our cash as needed, our financial position and ability to operate our business could be adversely affected.
Previous wording
Net cash used in operating activities for the three months ended March 31, 2025 was $1.1 million compared to $2.6 million of net cash used in operating activities for the three months ended March 31, 2024. The $1.5 million decrease in net cash used in operating activities was primarily due to a $6.9 million decrease in net working capital, primarily due to changes in contract assets and accounts receivable; partially offset by a $5.4 million decrease in net income, after excluding the non-cash effects of stock-based compensation expense, provision for credit losses, estimated litigation claim, change in fair value of contingent consideration, depreciation and amortization, and the accretion of discount on marketable securities.
Current wording
Net cash used in operating activities for the six months ended June 30, 2025 was $16.6 million compared to $8.8 million of net cash used in operating activities for the six months ended June 30, 2024. The $7.8 million decrease in net cash used in operating activities reflects the initial $16.0 million paid for the litigation agreement in June 2025 and an $11.0 million decrease in net income, after excluding the non-cash effects of stock-based compensation expense, provision for credit losses, litigation settlement, change in fair value of contingent consideration, depreciation and amortization, and the accretion of discount on marketable securities. This use of cash was partially offset by $6.0 million of related party funding for the litigation agreement and a $13.2 million decrease in net working capital, primarily due to changes in contract assets and accounts receivable.
Previous wording
Net cash provided by investing activities for the three months ended March 31, 2025 was $11.4 million, as compared to $10,000 used in investing activities for the three months ended March 31, 2024. Cash provided by investing activities during the three months ended March 31, 2025, includes $23.0 million of maturities in marketable securities, partially offset by cash paid to acquire OPC of $11.5 million and $0.1 million in purchases of property and equipment. During the three months ended March 31, 2024, we used $10,000 of cash to purchase property and equipment.
Current wording
Net cash provided by investing activities for the six months ended June 30, 2025 was $27.8 million, as compared to $67.9 million used in investing activities for the six months ended June 30, 2024. Cash provided by investing activities during the six months ended June 30, 2025, includes $32.0 million of maturities in marketable securities and $10.3 million in sales of marketable securities, partially offset by cash paid to acquire the OPC Business and Tech-X of $14.3 million and $0.2 million in purchases of property and equipment. During the six months ended June 30, 2024, we used cash of $67.8 million for purchases of marketable securities and $0.1 million on purchases of property and equipment.
Previous wording
Net cash used in financing activities for the three months ended March 31, 2025 was $0.5 million, as compared to net cash provided by financing activities of $3.9 million for the three months ended March 31, 2024. Net cash used during the three months ended March 31, 2025 includes payroll taxes related to shares withheld from employees of $0.3 million and payments on our vendor financing obligation of $0.2 million. Net cash provided by financing activities for the three months ended March 31, 2024 includes our $4.3 million drawdown on the East West Bank Loan, partially offset by the payment of $0.4 million of transaction costs incurred in connection with the IPO.
Current wording
Net cash used in financing activities for the six months ended June 30, 2025 was $1.6 million, as compared to net cash provided by financing activities of $106.4 million for the six months ended June 30, 2024. Net cash used during the six months ended June 30, 2025 includes payroll taxes related to shares withheld from employees of $0.6 million and payments on our vendor financing obligation of $1.3 million. This use of cash was partially offset by $0.4 million in proceeds from issuance of common stock for share-based awards. During the six months ended June 30, 2024, we received $106.0 million in net proceeds from the consummation of our IPO, $4.9 million in net proceeds from the Micron Note, and $4.3 million from our drawdown on the East West Bank Loan, partially offset by the $4.3 million repayment of the East West Bank Loan, payment of $2.1 million related to deferred transaction costs incurred in connection with the consummation of the IPO, the $2.0 million repayment of the line of credit with Ms. Ngai-Pesic (the “2022 Credit Line”) and $0.3 million of payments for our vendor financing obligation.
Previous wording
The effects of exchange rate fluctuations on cash and cash equivalents were $0.1 million and $27,000 for the three months ended March 31, 2025 and 2024, respectively.
Current wording
The effects of exchange rate fluctuations on cash and cash equivalents were $0.4 million and $0.1 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
There have not been any material changes during the three months ended March 31, 2025 to the methodology applied by management for critical accounting policies previously disclosed in our audited financial statements set forth in our 2024 Form 10-K. For further discussion of our critical accounting policies and estimates, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our 2024 Form 10-K.
Current wording
There have not been any material changes during the six months ended June 30, 2025 to the methodology applied by management for critical accounting policies previously disclosed in our audited financial statements set forth in our 2024 Form 10-K. For further discussion of our critical accounting policies and estimates, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our 2024 Form 10-K.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Gross profit represents revenue less cost of revenue.