For the past four years, the Micropropulsion and Nanotechnology Laboratory at the George Washington University has been developing a novel thruster for microsatellites based on an ablative vacuum arc technology, so called micro-cathode arc thruster (µCAT). Ablative microthrusters, such as the µCAT, offer a number of advantages for small satellite missions, especially ones utilizing the CubeSat technology. However, before the thruster can be operated in the space environment, it is necessary to obtain a better understanding of its performance, plume profile, and any potential adverse effects to the host spacecraft. Complicating data collection is the miniature size of the device, which reduces the usefulness of traditional probing methods. In this paper we report on an on-going numerical analysis performed in support of the experimental characterization of the thruster. Namely, we investigate the formation of the discharge beam from the initial cathode spot under an applied magnetic field.