SimulScript breaks down the code snippets into smaller parts such as keywords, variables, and symbols. This process is known as tokenization, which is the first step in converting the text-based code into a numerical format.

In this stage, each token from the tokenization process is assigned a numerical value. These values are then used to create a vector representation of the code snippet in a high-dimensional space. This allows the algorithm to compare and analyze the code snippets more effectively.

The dot product of the vectors is determined, and this value represents the cosine of the angle between the vectors. This value is then normalized by the magnitude of each vector, resulting in a cosine similarity score between -1 and 1. This score indicates the level of similarity between the code snippets, with a higher score indicating a greater degree of similarity.