Peraso Inc. 10-K

Item 9A. Controls and Procedures. Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our management concluded that as of December 31, 2025, our disclosure controls and procedures were effective. Management’s Annual Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls. Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control-Integrated Framework (2013 Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2025. Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting during the fourth fiscal quarter of 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information. None of the Company’s directors or officers adopted , modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended December 31, 2025, as such terms are defined under Item 408(a) of Regulation S-K. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not Applicable 40 Part III Item 10. Directors, Executive Officers and Corporate Governance. The names of our directors and certain information about each of them are set forth below. Name Age Position(s) with the Company Ronald Glibbery 64 Chief Executive Officer and Director Daniel Lewis 77 Director Cornelis Links(1) 68 Director Andreas Melder(1)(2) 67 Director Robert Newell(1)(2) 77 Director (1) Member of Audit Committee (2) Member of Compensation Committee The principal occupations and positions for at least the past five years of our directors are described below. There are no family relationships among any of our directors or executive officers. Ronald Glibbery. Mr. Glibbery was appointed as our chief executive officer and to our board of directors in December 2021. He founded Peraso Technologies Inc. (Peraso Tech) in 2008 and served as its chief executive officer. In June 2020, Peraso Tech applied for and obtained an order under the Companies’ Creditors Arrangement Act (the CCAA), providing certain relief. Pursuant to the Initial Order issued by the Ontario Superior Court of Justice (Commercial List) (the Court), Ernst & Young Inc. was appointed as the Monitor of Peraso Tech. In addition, the Monitor, in its capacity as Foreign Representative, filed a voluntary petition in the United States under Chapter 15 of the U.S. Bankruptcy Code, seeking recognition of the CCAA proceeding. In October 2020, the Court granted an order authorizing the termination of Peraso Tech’s CCAA proceedings upon the completion of certain defined steps. In December 2020, the United States Bankruptcy Court for the Southern District of New York issued an Order that: (i) recognized and gave full force and effect in the United States to the Court’s order approving the Settlement Agreement; and (ii) terminated the Chapter 15 Proceedings. Mr. Glibbery has over 25 years of experience in the semiconductor industry. Prior to co-founding Peraso Tech, Mr. Glibbery held executive positions at Kleer Semiconductor, a fabless semiconductor company focused on wireless audio technology and Intellon Corporation (Intellon), a pioneer and leader in the development of semiconductor devices used for powerline communications. He has held other executive roles at Cogency Semiconductor, LSI Logic Canada, Inc. and LSI Logic Corporation. Mr. Glibbery holds a B.E.Sc. in Electrical and Electronics Engineering from the University of Western Ontario. We believe that Mr. Glibbery’s qualifications to serve on the board of directors include his service as an officer of ours and his extensive general management and technical expertise in the semiconductor industry, as well as his experience as a chief executive officer. Daniel Lewis. Mr. Lewis, who is currently retired, has served as a member of the board of directors since September 2017. He served as our Vice President, General Manager of Memory Products from April 2022 until his retirement in December 2022. Mr. Lewis previously served as our President from August 2018 until April 2022 and chief executive officer from August 2018 until the business combination with Peraso Tech in December 2021. Before joining MoSys, Mr. Lewis served as the managing member and an owner of GMS Manufacturing Solution LLC, a firm focused on providing engineering services to manufacturing companies. He previously held various executive and leadership roles at View Box Group, Xicor, Integrated Device Technology, Accelerant Networks, Intel Corporation, Zilog and Digital Equipment Corporation. Mr. Lewis holds a B.S. in Electrical Engineering from the University of Michigan. We believe that Mr. Lewis’s qualifications to serve on the board of directors include his service as an officer of ours and his extensive business experience, having held senior management positions at several companies in the semiconductor, computer and networking industries, which brings strategic and operational insight to the board of directors. 41 Cornelis Links. Mr. Links was appointed to our board of directors in December 2025. Since January 2024, Mr. Links has served as chief executive officer of SuperLight Photonics B.V., a Netherlands-based photonics semiconductor company engaged in the development of broadband light sources for imaging applications that was declared bankrupt in September 2025; following a restructuring, the company restarted under the name Integrated Laser Photonics B.V. in October 2025. In 2004, Mr. Links founded GreenPeak Technologies B.V., a fabless semiconductor company focused on low-power wireless solutions for smart-home and Internet of Things (IoT) applications, and served as its chief executive officer until the company was acquired by Qorvo, Inc. in 2016. Following the acquisition, he served in leadership roles at Qorvo, Inc. involving Wi-Fi and IoT technology integration and related strategic initiatives. Prior to founding GreenPeak Technologies B.V., Mr. Links held various management and technical positions at other technology companies including NCR Corporation, AT&T, Lucent Technologies and Agere Systems. Mr. Links holds an M.Sc. degree in Applied Mathematics and a B.Sc. degree in Electrical Engineering from the University of Twente in the Netherlands. We believe that Mr. Links’ qualifications to serve on the board of directors include his extensive business experience, having held senior management positions at several companies in the field of wireless business communications, which brings strategic and operational insight to the board of directors. Andreas Melder. Mr. Melder was appointed to our board of directors in December 2021. He is a veteran technology executive in the semiconductor, communications and consumer electronics industries. In February 2021, Mr. Melder co-founded Cercle.ai, an AI technology company focused on advancing healthcare for women, and serves on its board of directors and, in October 2025, was appointed its chief executive officer. Previously, he served as vice president of business development at Gigle Networks, which was acquired in 2011 by Broadcom, where he continued to serve in executive marketing roles. Prior to Broadcom, Mr. Melder served as senior vice president of sales, marketing and business development for Intellon, which was acquired by Atheros Communications, Inc., which was subsequently acquired by Qualcomm Inc. (Qualcomm), and held similar positions with Atheros and Qualcomm. Previously, he was founder and vice president of marketing and business development for Microtune, a designer of RF integrated circuits and subsystem modules, which was acquired by Zoran Semiconductor, and vice president of sales and marketing for Tripath, an audio controller company acquired by Etelos. Additionally, Mr. Melder was a senior executive for companies that were acquired by Broadcom, Cirrus Logic and RFMD. Mr. Melder earned a B.S. in Electrical Engineering/Business from Carnegie-Mellon University and a M.S. in Electrical Engineering and Operations Research from Southern Methodist University. We believe that Mr. Melder’s qualifications to serve on the board of directors include his extensive business experience, having held senior management positions at several companies in the semiconductor, computer and networking industries. Additionally, he brings additional operational, and fund-raising expertise, and business development, mergers and acquisitions and public markets experience. Robert Newell. Mr. Newell has served as a member of our board of directors since October 2018 and is currently a consultant and advisor to emerging technology and healthcare companies. He has held financial management positions for companies in Silicon Valley for over 25 years. From 2003 to 2018, Mr. Newell was chief financial officer of Dextera Surgical, Inc. (Dextera) a developer of advanced surgical stapling and medical devices. In December 2017, after entering into an agreement to sell substantially all of its assets, Dextera filed a voluntary petition for reorganization under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware. He served on the board of directors of ARI Network Services, a leading publicly traded supplier of SaaS and data as a service solutions. Previously, Mr. Newell served as chief financial officer of Omnicell, an automated medication and hospital supply management company, and prior to 2000, he held executive positions with the Beta Group and Cardiometrics. Prior to his business career, he was a pilot in the United States Air Force. Mr. Newell holds a B.A. in mathematics from the College of William & Mary and an MBA from Harvard Business School. We believe that Mr. Newell’s qualifications to serve on the board of directors include his substantial financial and public-company experience, as he has served as chief financial officer at multiple medical device and other technology companies. He also has previous experience serving as a director on public-company boards of directors. The names of our executive officers and certain information about them are set forth either above or below, as the case may be: Name Age Position(s) with the Company Ronald Glibbery 64 Chief Executive Officer and Director James Sullivan 57 Chief Financial Officer Bradley Lynch 53 Chief Operating Officer Alexander Tomkins 43 Chief Technology Officer 42 James Sullivan. Mr. Sullivan has served as our chief financial officer since January 2008. From July 2006 until January 2008, Mr. Sullivan served as Vice President of Finance and Chief Financial Officer at Apptera, Inc., a venture-backed company providing software for mobile advertising, search and commerce. From July 2002 until June 2006, Mr. Sullivan was the chief financial officer at 8x8, Inc., a publicly-traded SAAS provider of VoIP and unified communication solutions. Mr. Sullivan’s prior experience includes various positions at 8x8, Inc. and PricewaterhouseCoopers LLP. He received a Bachelor of Science degree in Accounting from New York University and is a certified public accountant. Bradley Lynch . Mr. Lynch has served as chief operating officer since December 2021. He co-founded Peraso Tech in 2009 and served as executive vice president of engineering and operations. In June 2020, Peraso Tech applied for and obtained an order under the Companies’ Creditors Arrangement Act (the CCAA), providing certain relief. Pursuant to the Initial Order issued by the Ontario Superior Court of Justice (Commercial List) (the Court), Ernst & Young Inc. was appointed as the Monitor of Peraso Tech. In addition, the Monitor, in its capacity as Foreign Representative, filed a voluntary petition in the United States under Chapter 15 of the U.S. Bankruptcy Code, seeking recognition of the CCAA proceeding. In October 2020, the Court granted an order authorizing the termination of Peraso Tech’s CCAA proceedings upon the completion of certain defined steps. In December 2020, the United States Bankruptcy Court for the Southern District of New York issued an Order that: (i) recognized and gave full force and effect in the United States to the Court’s order approving the Settlement Agreement; and (ii) terminated the Chapter 15 Proceedings. Prior to founding Peraso Tech, Mr. Lynch worked as a system architect at Kleer Semiconductor, a fabless company focused on wireless audio technology. Before Kleer, he was director of software engineering at Intellon Corporation, a pioneer and leader in the development of semiconductor devices used for powerline communications. Previously, Mr. Lynch held various technical roles at Cogency Semiconductor and Power Trunk. Mr. Lynch holds a B.A.Sc in Computer Engineering from the University of Waterloo. Alexander Tomkins . Mr. Tomkins has served as our chief technology officer since December 2021. He co-founded Peraso Tech in 2009 and served as its chief technology officer. In June 2020, Peraso Tech applied for and obtained an order under the Companies’ Creditors Arrangement Act (the CCAA), providing certain relief. Pursuant to the Initial Order issued by the Ontario Superior Court of Justice (Commercial List), Ernst & Young Inc. was appointed as the Monitor of Peraso Tech. In addition, the Monitor, in its capacity as Foreign Representative, filed a voluntary petition in the United States under Chapter 15 of the U.S. Bankruptcy Code, seeking recognition of the CCAA proceeding. In October 2020, the Court granted an order authorizing the termination of Peraso Tech’s CCAA proceedings upon the completion of certain defined steps. In December 2020, the United States Bankruptcy Court for the Southern District of New York issued an Order that: (i) recognized and gave full force and effect in the United States to the Court’s order approving the Settlement Agreement; and (ii) terminated the Chapter 15 Proceedings. Mr. Tomkins holds a Masters of Applied Science from the University of Toronto and a B.S. in Engineering Physics from Carleton University. He also attended the University of Toronto as a doctoral candidate in Applied Science. Audit Committee Our board of directors established the Audit Committee for the purpose of overseeing the accounting and financial reporting processes and audits of our financial statements. The Audit Committee also is charged with reviewing reports regarding violations of our code of ethics and complaints with respect thereto, and internal control violations under our whistleblower policy are directed to the members of the Audit Committee. The responsibilities of our Audit Committee are described in the Audit Committee Charter adopted by our board of directors, a current copy of which can be found on the investors section of our website, www.perasoinc.com. Cornelis Links, Andreas Melder and Robert Newell are the current members of the Audit Committee. All are independent, as determined in accordance with Rule 5605(a)(2) of the Nasdaq listing rules and Rule 10A-3 of the Exchange Act. Mr. Newell serves as the chair and has been designated by the board of directors as the “audit committee financial expert,” as defined by Item 407(d)(5) of Regulation S-K under the Securities Act and the Exchange Act. That status does not impose duties, liabilities or obligations that are greater than the duties, liabilities or obligations otherwise imposed on him as a member of the Audit Committee and the board of directors, however. The Audit Committee has delegated authority to Mr. Newell for review and pre-approval of services proposed to be provided by our independent registered public accounting firm. 43 Compensation Committee Andreas Melder and Robert Newell are the current members of the Compensation Committee, and Mr. Melder serves as the chair. The Compensation Committee is responsible for reviewing, recommending and approving our compensation policies and benefits, including the compensation of all of our executive officers and directors. Our Compensation Committee also has the principal responsibility for the administration of our equity plans. The responsibilities of our Compensation Committee are described in the Compensation Committee Charter adopted by our board of directors, a current copy of which can be found on the investors section of our website, www.perasoinc.com. Nominations Process We do not have a nominating committee, as we are a small company and currently only have five directors. Instead of having such a committee, historically, our board of directors has appointed all of the independent directors on our board to search for and evaluate qualified individuals to become nominees for director and board committee members. The independent directors recommend candidates for nomination for election or reelection at each annual meeting of stockholders and, as necessary, to fill vacancies and newly created directorships, and evaluate candidates for appointment to and removal from committees. The independent directors operate in this capacity under authority granted by resolution of the board of directors, rather than by charter. When new candidates for our board of directors are sought, the independent directors evaluate each candidate for nomination as a director within the context of the needs and the composition of the board of directors as a whole. The independent directors conduct any appropriate and necessary inquiries into the backgrounds and qualifications of candidates. When evaluating director nominees, our board of directors generally seeks to identify individuals with diverse, yet complementary business backgrounds. Although we have no formal policy regarding diversity, our directors consider both the personal characteristics and experience of director nominees, including each nominee’s independence, diversity, age, skills, expertise, time availability and industry background in the context of the needs of the board of directors and the Company. Further, when evaluating nominations, the board of directors also looks for depth and breadth of experience within our industry and otherwise, outside time commitments, special areas of expertise, accounting and finance knowledge, business judgment, leadership ability, experience in developing and assessing business strategies, corporate governance expertise, and for incumbent members of the board of directors, the past performance of the incumbent director. The board of directors believes that director nominees should exhibit proven leadership capabilities and experience at a high level of responsibility within their chosen fields and must have the experience and ability to analyze the complex business issues facing us, and specifically, the issues inherent in the semiconductor industry. In addition to business expertise, the board of directors requires that director nominees have the highest personal and professional ethics, integrity and values and, above all, are committed to representing the long-term interests of our stockholders and other stakeholders. To date, we have not paid any fee to a third party to assist in the process of identifying or evaluating director candidates. Our independent directors will consider candidates for nomination as director who are recommended by a stockholder and will not evaluate any candidate for nomination for director differently because the candidate was recommended by a stockholder. To date, we have not received or rejected any suggestions for a director candidate recommended by any stockholder or group of stockholders owning more than 5% of our common stock. The recommendation must include the information specified in our bylaws for stockholder nominees to be considered at an annual meeting, including the following: ● The stockholder’s name and address and the beneficial owner, if any, on whose behalf the nomination is proposed; ● The stockholder’s reason for making the nomination at the annual meeting, and the signed consent of the nominee to serve if elected; ● The number of shares owned by, and any material interest of, the record owner and the beneficial owner, if any, on whose behalf the record owner is proposing the nominee; ● A description of any arrangements or understandings between the stockholder, the nominee and any other person regarding the nomination; and ● Information regarding the nominee that would be required to be included in our proxy statement by the rules of the SEC, including the nominee’s age, business experience for the past five years and any other directorships held by the nominee. 44 The information listed above is not a complete list of the information required by our bylaws. The secretary will forward any timely recommendations containing the required information to our independent directors for consideration. Board of Directors Leadership Structure Our bylaws provide the board of directors with flexibility to combine or separate the positions of chair of the board of directors and chief executive officer in accordance with its determination that utilizing one or the other structure is in the best interests of our company. Currently, the board of directors has not appointed a chair or lead independent director. From time to time, each of the independent directors works with our chief executive officer to perform a variety of functions related to our corporate governance, including coordinating activities of the board of directors, setting the agenda for meetings (in consultation with our chief executive officer, as necessary or appropriate) and ensuring adequate communication between the board of directors and management. Our Audit Committee oversees critical matters such as our relationship with our auditors, our financial reporting practices, system of disclosure controls and procedures and internal controls over financial reporting. Our Compensation Committee oversees our executive compensation program. Each of these committees consists entirely of independent directors. Risk Oversight The board of directors is actively involved in the oversight of risks — including strategic, credit, liquidity, operational and other risks — which could affect our business. The board of directors does not have a standing risk management committee and administers this oversight function directly through the board of directors as a whole and through its committees, which oversee risks relevant to their respective functions. For example, in addition to the oversight matters described in the preceding paragraph, the Audit Committee also assists the board of directors in its risk oversight function by reviewing and discussing with management our compliance with accounting principles and the treasury function, including management of our cash and investments. The Compensation Committee assists the board of directors in its risk oversight function by considering risks relating to the design of our executive compensation programs and arrangements and employee benefit plans. The full board of directors considers strategic risks and opportunities and receives reports from the committees regarding risk oversight in their areas of responsibility as necessary. The board of directors and each committee administers its respective risk oversight function by evaluating management’s monitoring, assessment and management of risks, including steps taken to limit our exposure to known risks, through regular interaction with our senior management and in board and committee deliberations that are closed to members of management. The interaction with management occurs not only at formal board and committee meetings but also periodically through other written and oral communications. Compensation Committee Interlocks and Insider Participation During 2025, none of our executive officers served as a member of the board of directors or compensation committee of any entity that had one or more of its executive officers serving as a member of our board of directors or Compensation Committee. Messrs. Melder and Newell, the current members of the Compensation Committee, and Dr. Ian McWalter, a former member of our board of directors and the Compensation Committee, were not officers or employees of ours during 2025 or at any other time. Delinquent Section 16(a) Reports Section 16(a) of the Exchange Act requires our directors, executive officers and persons who own more than 10% of a registered class of our equity securities to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities of ours. Directors, executive officers and greater than 10% holders are required by SEC regulation to furnish us with copies of all Section 16(a) reports they file. Based solely on our review of Forms 3 and 4 filed during 2025 (and any written representations to us by such persons), we believe that all directors, executive officers and 10% stockholders complied with all applicable Section 16(a) filing requirements during 2025, except that (i) Cornelis Links filed a late Form 3 on January 29, 2026 in connection with his appointment to our board of directors on December 22, 2025, (ii) Mark Lunsford filed a late Form 4 on April 25, 2025 with respect to common stock withheld to satisfy his tax obligation in connection with the settlement of shares of common stock underlying the portion of RSUs that vested on April 15, 2025, and (iii) Daniel Lewis, Ian McWalter, Andreas Melder and Robert Newell each filed a late Form 4 on January 23, 2025 with respect to RSUs granted on January 17, 2025. 45 Code of Ethics We have adopted a code of ethics that applies to all of our employees and directors. The code of ethics is designed to deter wrongdoing and to promote, among other things, honest and ethical conduct, full, fair, accurate, timely, and understandable disclosures in reports and documents submitted to the SEC and other public communications, compliance with applicable governmental laws, rules and regulations, the prompt internal reporting of violations of the code to an appropriate person or persons identified in the code and accountability for adherence to such code. The code of ethics is available on our website, www.perasoinc.com. If we make any substantive amendments to the code of ethics or grant any waiver, including any implicit waiver, from a provision of the code to our chief executive officer or chief financial officer, or persons performing similar functions, where such amendment or waiver is required to be disclosed under applicable SEC rules, we intend to disclose the nature of such amendment or waiver on our website. Insider Trading Policy, Employee, Officer, and Director Hedging We have adopted an insider trading policy that governs the purchase, sale, and other dispositions of our securities by directors, officers, employees and other covered persons, which policy is reasonably designed to promote compliance with insider trading laws, rules and regulations, and the Nasdaq listing standards applicable to us. As part of this policy, we prohibit all directors, officers or other employees from engaging in any short sales of our securities, transactions in puts, calls or other derivative securities on an exchange or in any other organized market and hedging transactions. A copy of our insider trading policy is filed as Exhibit 19.1 to this Annual Report. Item 11. Executive Compensation. Overview of Compensation Program The Compensation Committee of the board of directors has responsibility for establishing, implementing and monitoring adherence to our compensation philosophy. The board of directors has delegated to the Compensation Committee the responsibility for determining our compensation policies and procedures for senior management, including the named executive officers, periodically reviewing these policies and procedures, and making recommendations concerning executive compensation to be considered by the full board of directors, when such approval is required under any of our plans or policies or by applicable laws. The compensation received by our named executive officers is set forth in the Summary Compensation Table, below. For 2025, our named executive officers included Ronald Glibbery, our chief executive officer, James Sullivan, our chief financial officer and secretary, and Bradley Lynch, our chief operating officer. Compensation Philosophy In general, our executive compensation policies are designed to recruit, retain and motivate qualified executives by providing them with a competitive total compensation package based in large part on the executive’s contribution to our financial and operational success, the executive’s personal performance and increases in stockholder value, as measured by the price of our common stock. We believe that the total compensation paid to our executives should be fair, reasonable and competitive. We seek to have a balanced approach to executive compensation with each primary element of compensation (base salary, variable compensation and equity incentives) designed to play a specific role. Overall, we design our compensation programs to allow for the recruitment, retention and motivation of the key executives and high-level talent required in order for us to: ● supply high-value and high-quality integrated circuit solutions to our current and prospective customer base; ● achieve or exceed our annual financial plan and be profitable; ● make continuous progression towards achieving our long-term strategic objectives to be a high-growth company with growing profitability; and ● increase our share price to provide greater value to our stockholders. 46 Role of Executive Officers in Compensation Decisions The chief executive officer (the “CEO”) makes recommendations for equity and non-equity compensation for executives to be approved by the Compensation Committee. The Compensation Committee reviews these guidelines annually. The CEO annually reviews the performance of our executives (other than himself) and presents his recommendations for proposed salary adjustments, bonuses and equity awards to the Compensation Committee once a year. In its discretion, the Compensation Committee may accept, modify or reject the CEO’s recommendations. The Compensation Committee evaluates the compensation of the CEO on its own without the participation or involvement of the CEO. Only the Compensation Committee and the board of directors are authorized to approve the compensation for any named executive officer. Compensation of new executives is based on hiring negotiations between the individuals and our CEO and/or Compensation Committee. Elements of Compensation Consistent with our compensation philosophy and objectives, we offer executive compensation packages consisting of the following three components: ● base salary; ● annual incentive compensation; and ● equity awards. In each fiscal year, the Compensation Committee determines the amount and relative weighting of each component for all executives, including the named executive officers. Base salaries are paid in fixed amounts and thus do not encourage risk taking. Our widespread use of long-term compensation, consisting of stock options and restricted stock units (the “RSUs”), focuses recipients on the achievement of our longer-term goals and conserves cash for other operating expenses. The equity awards granted to our executives generally vest over 36 months from the date of grant. The Compensation Committee does not believe that these awards encourage unnecessary or excessive risk taking because the ultimate value of the awards is tied to our stock price, and the use of multi-year vesting schedules helps to align our employees’ interests even more closely with those of our long-term investors. Base Salary Because our compensation philosophy stresses performance-based awards, base salary is intended to be a smaller portion of total executive compensation relative to long-term equity. The Compensation Committee takes into account the executive’s scope of responsibility and significance to the execution of our long-term strategy, past accomplishments, experience and personal performance and compares each executive’s base salary with those of the other members of senior management. The Compensation Committee may give different weighting to each of these factors for each executive, as it deems appropriate. The Compensation Committee did not retain a compensation consultant or determine a compensation peer group for 2025. There were no changes to the annual base salaries of our executive officers in 2025. Annual Incentive Compensation There were no changes to the incentive compensation targets for our named executive officers in 2025. 47 Equity Awards Although we do not have a mandated policy regarding the ownership of shares of common stock by officers and directors, we believe that granting equity awards to executives and other key employees on an ongoing basis gives them a strong incentive to maximize stockholder value and aligns their interests with those of our other stockholders on a long-term basis. Our Amended and Restated 2019 Stock Incentive Plan, as amended (the “2019 Plan”), which was approved by our stockholders and became effective in August 2019, enables us to grant equity awards, as well as other types of stock-based compensation, to our executive officers and other employees. The Compensation Committee reviews and approves all equity awards granted under the 2019 Plan to the named executive officers. We grant equity awards to achieve retention and motivation: ● upon the hiring of key executives and other personnel; ● annually, when we review progress against corporate and personal goals; and ● when we believe that competitive forces or economic conditions threaten to cause our key executives to lose their motivation and/or where retention of these key executives is in jeopardy. With the Compensation Committee’s approval, we grant equity awards to acquire shares of common stock when we initially hire executives and other employees, as a long-term performance incentive. The Compensation Committee has determined the size of the initial equity awards to newly hired executives with reference to equity awards held by existing executives, the percentage that such award represents of our total shares outstanding and hiring negotiations with the individual. In addition, the Compensation Committee would consider other relevant information regarding the size and type of compensation package considered necessary to enable us to recruit, retain and motivate the executive. Typically, when we hire an executive, the equity awards vest over a three-year period. The options granted to executives in connection with annual performance reviews typically vest monthly over a three-year period, and RSUs granted typically vest over a period of three years, as the Compensation Committee may decide. As matters of policy and practice, we grant stock options with an exercise price equal to fair market value, although the 2019 Plan allows us to use a different exercise price. In determining fair market value, we use the closing price of the common stock on the Nasdaq on the grant date. Historically, no executive has been eligible for an annual performance grant until the employee has been employed for at least six months. Annual performance reviews are generally conducted in the first half of each fiscal year. Our CEO conducts the performance review of all other executives, and he makes his recommendations to the Compensation Committee. The Compensation Committee also reviews the CEO’s annual performance and determines whether he should receive additional equity awards. Aside from equity award grants in connection with annual performance reviews, we do not have a policy of granting additional awards to executives during the year. The board of directors and Compensation Committee have not adopted a policy with respect to setting the dates of award grants relative to the timing of the release of material non-public information. Our policy with respect to prohibiting insider trading restricts sales of shares during specified black-out periods, including at all times that our insiders are considered to possess material non-public information. In determining the size of equity awards in connection with the annual performance reviews of our executives, the Compensation Committee takes into account the executive’s current position with and responsibilities to us, and current and past equity awards to the executive. During 2025, our Compensation Committee and management elected to use stock options as our primary form of equity award, as in the past we had primarily used restricted stock units. During 2025, we granted each of our named executive officers common stock purchase options for 125,000 shares. Going forward, we intend to continue to evaluate and consider equity grants to our executives on an annual basis. We expect to consider potential equity awards for executives at the same time as we annually review our employees’ performance and determine whether to award grants for all employees. 48 Accounting and Tax Considerations Our Compensation Committee has reviewed the impact of tax and accounting treatment on the various components of our executive compensation program. Section 162(m) of the Internal Revenue Code, as amended (the “Code”), generally disallows a tax deduction to publicly-held companies for compensation paid to “covered” executive officers, to the extent that compensation paid to such an officer exceeds $1 million during the taxable year. The Tax Cuts and Jobs Act repealed the performance-based exception to the deduction limit for remuneration that is deductible in tax years commencing after December 31, 2017. However, certain remuneration is specifically exempt from the deduction limit under a transition rule to the extent that it is “performance-based,” as defined in Section 162(m) of the Code, and subject to a “written binding contract” in effect as of November 2, 2017 that is not later modified in any material respect. We endeavor to award compensation that will be deductible for income tax purposes, though other factors will also be considered. None of the compensation paid to our covered executive officers for the year ended December 31, 2025 that would be taken into account for purposes of Section 162(m) exceeded the $1 million limitation. Because of ambiguities and uncertainties as to the application and interpretation of Section 162(m) of the Code and the regulations issued thereunder, including the uncertain scope of the transition relief under the Tax Cuts and Jobs Act, no assurance can be given that compensation intended to satisfy the requirements for exemption from Section 162(m) of the Code in fact will satisfy such requirements. Our Compensation Committee may authorize compensation payments that do not comply with the exemptions to Section 162(m) when we believe that such payments are appropriate to attract and retain executive talent. Say-on-Pay and Say-on-Frequency We gave our stockholders an opportunity to provide feedback on our executive compensation through an advisory vote at our 2023 annual stockholder meeting (the “2023 Meeting”), which was held on December 15, 2023. Stockholders were asked to approve, on an advisory basis, the compensation paid to our named executive officers. A majority of stockholders indicated approval of the compensation of the named executive officers, with approximately 81% of the shares that voted on such matter voting in favor of the proposal. Additionally, at the 2023 Meeting, stockholders were asked to approve, on an advisory basis, in favor of having a stockholder vote to approve the compensation of our named executive officers every three years. A majority of stockholders indicated approval of having a stockholder vote to approve the compensation of our named executive officers every three years, with approximately 71% of the shares that voted on such matter voting in favor of the proposal. Based on these results and consistent with the previous recommendation and determination of our board of directors, we will hold non-binding advisory votes on executive compensation every three years until the next vote on the frequency of the stockholder advisory vote on executive compensation. In light of the results of the advisory vote, the Compensation Committee intends to continue to apply principles that were substantially similar to those applied historically in determining compensation policies and decisions with respect to 2025 executive compensation. SUMMARY COMPENSATION TABLE The following table sets forth compensation information for fiscal years 2025 and 2024 for each of our named executive officers. Name and principal position Year Salary ($) Stock Option Awards ($)(1) Restricted Stock Awards ($)(1) Non-Equity Incentive Plan Compensation ($) Total ($) Ronald Glibbery 2025 400,000 99,000 — — 499,000 Chief Executive Officer 2024 400,000 — — — 400,000 James Sullivan 2025 305,000 99,000 — — 404,000 Chief Financial Officer 2024 305,000 — — — 305,000 Bradley Lynch 2025 275,000 99,000 — — 374,000 Chief Operating Officer 2024 275,000 — — — 275,000 (1) Award amounts reflect the aggregate grant date fair value with respect to awards granted during the years indicated, as determined pursuant to FASB ASC Topic 718. The assumptions used to calculate the aggregate grant date fair value of option and stock awards are set forth in the notes to the consolidated financial statements included in item 15 of this Report. These amounts do not reflect actual compensation earned or to be earned by our named executive officers. 49 GRANTS OF PLAN-BASED AWARDS The following table provides information on plan-based awards granted in 2025 to each of the named executive officers: Name Grant Date All Other Stock Awards: Number of Shares of Stock or Units (#) All Other Option Awards: Number of Securities Underlying Options (#)(1) Exercise or Base Price of Option Awards ($/Share) Grant Date Fair Value of Stock and Option Awards ($) Ronald Glibbery 2/11/2025 — 100,000 0.78 78,000 8/7/2025 — 25,000 0.84 21,000 James Sullivan 2/11/2025 — 100,000 0.78 78,000 8/7/2025 — 25,000 0.84 21,000 Bradley Lynch 2/11/2025 — 100,000 0.78 78,000 8/7/2025 — 25,000 0.84 21,000 (1) Represents stock options granted pursuant to the 2019 Plan. During the fiscal year ended December 31, 2025, we did not award any options to a named executive officer in the period beginning four business days before the filing of a periodic report on Form 10-Q or Form 10-K, or the filing or furnishing of a current report on Form 8-K that discloses material nonpublic information, and ending one business day after the filing or furnishing of such report other than as set forth in the table below. Name Grant date Number of securities underlying the award Exercise price of the award ($/Sh) Grant date fair value of the award Percentage change in the closing market price of the securities underlying the award between the trading day ending immediately prior to the disclosure of material nonpublic information and the trading day beginning immediately following the disclosure of material nonpublic information Ronald Glibbery 8/7/2025 25,000 $ 0.84 $ 21,000 7.08 % James Sullivan 8/7/2025 25,000 $ 0.84 $ 21,000 7.08 % Bradley Lynch 8/7/2025 25,000 $ 0.84 $ 21,000 7.08 % 50 OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END The following table and accompanying footnotes set forth information regarding the outstanding equity awards held by our named executive officers as of December 31, 2025. Option Awards Stock Awards Name Number of Securities Underlying Unexercised Options (#) Exercisable Number of Securities Underlying Unexercised Options (#) Unexercisable Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) Option Exercise Price($) Option Expiration Date(1) Number of Units That Have Not Vested (#) Market Value of Units That Have Not Vested ($) Ron Glibbery 6,973 (2) — — 103.60 9/17/2030 — — 2,740 (2) — — 103.60 12/16/2031 — — 27,777 (6) 72,223 — 0.78 2/11/2035 — — 2,779 (7) 22,221 — 0.84 8/7/2035 — — James Sullivan 20 (3) — — 5,760.00 8/23/2026 — — 138 (4) — — 156.80 2/6/2029 — — 500 (5) — — 62.80 11/20/2029 — — 27,777 (6) 72,223 — 0.78 2/11/2035 — — 2,779 (7) 22,221 — 0.84 8/7/2035 — — Bradley Lynch 4,365 (2) — — 103.60 9/17/2030 — — 1,644 (2) — — 103.60 12/16/2031 — — 27,777 (6) 72,223 — 0.78 2/11/2035 — — 2,779 (7) 22,221 — 0.84 8/7/2035 — — (1) The standard option term is generally ten years, but all of the options expire automatically unless exercised within 90 days after the cessation of service as an employee, director or consultant. (2) The stock options were acquired on December 17, 2021 as consideration for the person’s securities of Peraso Technologies Inc., which we acquired by way of a reverse takeover. (3) The stock option was granted on August 23, 2016, and the shares subject to this option vested monthly over 48 months subject to continued service as an employee, director or consultant. (4) The stock option was granted on February 6, 2019, and the shares subject to this option vested monthly over three years subject to continued service as an employee, director or consultant. (5) The stock option was granted on November 20, 2019, and the shares subject to this option vested monthly over three years subject to continued service as an employee, director or consultant. (6) The stock option was granted on February 11, 2025, and the shares subject to this option vest monthly over three years subject to continued service as an employee, director or consultant . (7) The stock option was granted on August 7, 2025, and the shares subject to this option vest monthly over three years subject to continued service as an employee, director or consultant . 51 OPTION EXERCISES AND STOCK VESTED There were no option exercises by and vesting of stock awards attributable to our named executive officers during the year ended December 31, 2025. Employment and Change-in-Control Arrangements and Agreements Our Executive Change-in-Control and Severance Policy (the “Policy”) provides benefits that are intended to encourage the continued dedication of our executive officers and to mitigate potential disincentives to the consideration of a transaction that would result in a change in control, particularly where the services of our named executive officers may not be required by a potential acquirer. The Policy provides for benefits for our named executive officers in the event of a “Change-in-Control,” which is generally defined as: ● an acquisition of 45% or more of our common stock or voting securities by any “person,” as defined under the Exchange Act; or ● consummation of a complete liquidation or dissolution of the Company or a merger, consolidation, reorganization or sale of all or substantially all of our assets (collectively, a “Business Combination”) other than a Business Combination in which (A) our stockholders receive 50% or more of the stock of the corporation resulting from the Business Combination and (B) at least a majority of the board of directors of such resulting corporation were our incumbent directors immediately prior to the consummation of the Business Combination, and (C) after which no individual, entity or group (excluding any corporation or other entity resulting from the Business Combination or any employee benefit plan of such corporation or of ours) who did not own 45% or more of the stock of the resulting corporation or other entity immediately before the Business Combination owns 45% or more of the stock of such resulting corporation or other entity. Under the Policy, the following compensation and benefits are to be provided to our chief executive officer upon the occurrence of a Change-in-Control, and in the case of our other named executive officers, upon a Change-in-Control combined with a termination of the named executive officer’s employment without cause, or due to disability or resignation for good reason (as defined in the Policy) in connection with the Change-in-Control or within 24 months after it: ● any base salary earned but not yet paid through the date of termination; ● any annual or discretionary bonus earned but not yet paid to him for any calendar year prior to the year in which his termination occurs; ● any compensation under any deferred compensation plan of ours or deferred compensation agreement with us then in effect; ● a single lump sum payment equal to the sum of (a) one year of his or her then-current base salary plus (b) the average of his or her annual bonus payments in the preceding three years or such shorter time as he or she has been employed by us (with prorated weighting assigned to any bonus earned for a partial year of employment), which payment will be made within 60 days following the Change-in-Control (in the case of the chief executive officer), or 60 days following the date of employment termination (in the case of all other named executive officers). ● vesting in 100% of all outstanding equity awards as of the date of the Change-in-Control for the chief executive officer, or as of the date of termination of employment for all other named executive officers; ● reimbursement of any business expenses incurred by him through the date of termination but not yet paid; ● reimbursement of the cost of continuation of medical benefits for a period of 12 months; and ● outstanding equity awards that are structured as stock options, stock appreciation rights or similar awards shall be amended effective as of the date of termination to provide that such awards will remain outstanding and exercisable until the earlier of (a) 12 months following the date of the Change-in-Control for the chief executive officer, or the termination of employment for the other named executive officers, and (b) the expiration of the award’s initial term. Under the Policy, “cause” means the executive’s: ● willful failure to attend to the executive’s duties that is not cured by the executive within 30 days of receiving written notice from the CEO (or, in the case of the CEO, from the board of directors) specifying such failure; ● material breach of the executive’s then-current employment agreement (if any) that is not cured by the executive within 30 days of receiving written notice from the CEO (or, in the case of the CEO, from the board of directors) specifying such breach; ● conviction of (or plea of guilty or nolo contendere to) any felony or any misdemeanor involving theft or embezzlement; or ● misconduct resulting in material harm to our business or reputation, including fraud, embezzlement, misappropriation of funds or a material violation of the executive’s employment, confidential information, non-disclosure, invention assignment and arbitration agreement. 52 Under the Policy, “good reason” means the occurrence of any of the following conditions without the executive’s consent, but only if such condition is reported by the executive within 90 days of the executive’s knowledge of such condition and remains uncured 30 days after written notice from the executive to the board of directors of said condition: ● a material reduction in the executive’s then-current base salary or annual target bonus (expressed as a percentage of Executive’s then-current base salary), except for a reduction proportionate to reductions concurrently imposed on all other members of the Company’s executive management; ● a material reduction in the executive’s then-current employee benefits package, taken as a whole, except for a reduction proportionate to reductions concurrently imposed on all other members of executive management; ● a material reduction in the executive’s responsibilities with respect to our overall operations, such that continuity of responsibilities with respect to business operations existing prior to a corporate transaction will serve as a material reduction in responsibilities if such business operations represent only a subsidiary or business unit of the larger enterprise after the corporate transaction; ● a material reduction in the responsibilities of the executive’s direct reports, including a requirement for the chief executive officer to report to another officer as opposed to our board of directors or a requirement for any other executive to report to any officer other than our chief executive officer; ● a material breach by us of any material provision of the executive’s then-current employment agreement (if any); ● a requirement that the executive relocate to a location more than 35 miles from the executive’s then-current office location, unless such office relocation results in the distance between the new office and Executive’s home being closer or equal to the distance between the prior office and the executive’s home; ● a failure of a successor or transferee to assume our obligations under this Policy; or ● a failure to nominate the executive for election as a board of directors director, if, at the proper time for nomination, the executive is a member of the board of directors. Notwithstanding the above, in lieu of the payments and benefits payable under the Policy to Mr. Glibbery as the Company’s chief executive officer, Mr. Glibbery will receive change-in control payments and benefits in accordance with the terms and conditions of his employment agreement. The table below summarizes the payments Mr. Glibbery would be entitled to depending on the respective type of termination of his employment. Termination Type Payments and Benefits Termination for Cause or Voluntary Resignation (i) accrued and unpaid base salary and any other payments required by law, including those in connection with accrued vacation; and (ii) reimbursement for business expenses. Termination Without Cause, for Good Reason, upon Change of Control, Death or Disability (i) accrued and unpaid base salary and any other payments required by law including those in connection with accrued vacation; (ii) reimbursement for business expenses; (iii) the payment of the greater of (A) the sum of: (x) pay in lieu of notice of termination, in the amount required pursuant to the ESA (as defined in Mr. Glibbery’s employment agreement), and (y) statutory severance pay (if applicable) in the amount required to be provided pursuant to the ESA; or (B) twenty-four (24) months of base salary in lieu of notice, calculated solely by reference to the base salary except and only to the extent as otherwise minimally required by the ESA, to be paid in the form of a lump sum; (iv) any bonus awarded but not yet paid in respect of the fiscal year preceding the termination date; (v) bonus for the year in which the employment terminates, prorated pursuant to the employment agreement; (vi) all benefits (as existed on the date notice of termination is provided) for the duration of the Severance Period (as defined in the employment agreement); (vii) any unvested equity and equity-related compensation that has been issued pursuant to the Plan will be immediately accelerated and vested as of the termination date; (viii) any vested equity and equity-related compensation that has been issued under the Plan will remain exercisable until 24 months following such termination; and (ix) any other benefits and/or perquisites shall continue until the end of the ESA Notice Period (as defined in the employment agreement). 53 The information below describes the severance benefits payable to (i) Mr. Glibbery under his employment agreement and (ii) Messrs. Sullivan and Lynch under the Policy, as if such arrangements had been in effect and a Change-in-Control occurred on December 31, 2025, and the employment of each of our named executive officers was terminated without cause immediately following the Change-in-Control. The information below assumes that there was no compensation that was earned but unpaid as of December 31, 2025. Name Cash Severance($)(1) Bonus($)(2) Continuation of Benefits($)(3) Stock Option Vesting($)(4) Stock Award Vesting($)(5) Total($) Ronald Glibbery 800,000 300,000 13,012 7,342 — 1,120,354 James Sullivan 305,000 — 14,524 7,342 — 326,866 Bradley Lynch 275,000 — 6,506 7,342 — 288,848 (1) Represents cash severance payments based on the executive’s salary at December 31, 2025, in an amount equal to two years of base salary for Mr. Glibbery and one year of base salary for each of Messrs. Sullivan and Lynch. The Policy provides that each of Messrs. Sullivan and Lynch are also entitled to receive an amount equal to the average of his respective annual bonus payments in the preceding three years as part of their respective cash severance payments; however, the table does not include any additional amount in respect of such bonus component because no annual bonuses were awarded to Messrs. Sullivan and Lynch during that period. (2) For Mr. Glibbery, the amount represents payment of his annual target bonus amount. The Policy does not provide for additional bonus payments to Messrs. Sullivan and Lynch. (3) Represents the aggregate amount of all premiums payable for the continuation of the executive’s health benefits for one or two years, as applicable, based on the amounts of such premiums at December 31, 2025. (4) The value is calculated as the intrinsic value per share, multiplied by the number of shares that would become fully vested upon the Change-in-Control. The intrinsic value per share would be calculated as the excess of the closing price of our common stock on the Nasdaq of $0.87 on December 31, 2025 over the exercise price of the option. If the value is less than zero, it is deemed to be zero for the purposes of these calculations. (5) The value is calculated as the intrinsic value per share, multiplied by the number of shares that would become fully vested upon the Change-in-Control. The intrinsic value per share is considered as the closing price of our common stock on the Nasdaq of $0.87 on December 31, 2025. If a Change-in-Control occurred on December 31, 2025, under the Policy, the following numbers of option and award shares would have vested immediately as a result of acceleration on December 31, 2025: Name Number of Accelerated Option and Award Shares Ronald Glibbery 94,615 James Sullivan 94,444 Bradley Lynch 94,546 54 Employment Agreements In addition to the agreements containing the Change-in-Control provisions summarized above, we have entered into our standard form of employment, confidential information, invention assignment and arbitration agreement with each of the named executive officers. We also have entered into agreements to indemnify our current and former directors and certain executive officers, in addition to the indemnification provided for in our certificate of incorporation and bylaws. These agreements, among other things, provide for indemnification of our directors and certain executive officers for many expenses, including attorneys’ fees, judgments, fines and settlement amounts incurred by any such person in any action or proceeding, including any action by or in the right of the Company, arising out of such person’s services as a director or executive officer of the Company, any subsidiary of the Company or any other company or enterprise to which the person provided services at our request. Director Compensation The following table summarizes the compensation earned by our non-employee directors in the year ended December 31, 2025: Name Fee Compensation ($) Restricted Stock Awards ($)(1) All Other Compensation ($) Total ($) Robert Newell 45,000 500 — 45,500 Ian McWalter (2) 44,000 500 — 44,500 Cornelis Links (3) 929 — — 929 Andreas Melder 40,000 500 — 40,500 Daniel Lewis 35,000 500 — 35,500 (1) Dr. McWalter and Messrs. Newell, Melder and Lewis were each granted 500 restricted stock units on January 17, 2025. Award amounts reflect the aggregate grant date fair value as determined pursuant to FASB ASC Topic 718. For these restricted stock unit awards, the fair value is equal to the underlying value of the stock and is calculated using the closing price of our common stock on the award date. The actual value realized by a non-employee director related to restricted stock unit awards will depend on the market value of our common stock on the date the underlying stock is sold following vesting of the awards. (2) In connection with his planned retirement, Ian McWalter did not stand for re-election upon the expiration of his term on December 22, 2025. (3) Cornelis Links was appointed to our board of directors, effective immediately following our 2025 annual meeting of stockholders. Director Fee Compensation As a small company, it can be challenging for us to attract new non-employee directors. Nasdaq and SEC regulations require that a majority of the directors on our board of directors and its committees be independent, non-employee directors, as defined by each entity. In December 2021, we amended our director compensation structure and adopted our Outside Director Compensation Plan (the “Director Plan”). Under the Director Plan, we pay the following annual cash retainer fees, payable in quarterly installments, to our non-employee directors for their service on our board of directors and, as applicable, for service on committees of our board of directors: ● $35,000 for service on the board of directors; ● $8,000 for service as chairperson of the Audit Committee; ● $3,000 for service as a member of the Audit Committee; ● $6,000 for service as chairperson of the Compensation Committee; and ● $2,000 for service as a member of the Compensation Committee. 55 Director Equity Compensation Under the Director Plan, upon initial appointment to our board of directors, each non-employee director will receive a stock option with a value of $100,000, calculated by dividing the $100,000 by the closing trading price of our common stock on the date of grant. The initial stock option will have an exercise price equal to the closing price of our common stock on the date of grant and will vest as to one-third of the shares on the first annual anniversary of the grant and the remaining shares quarterly over the subsequent two years, provided the non-employee director continues to serve on the board of directors. In the event of a merger, sale of substantially all of our assets or similar transaction, vesting of all director options would accelerate as to 100% of the unvested shares subject to the award. Non-employee directors will also receive an annual equity award of restricted stock units of common stock equal to $50,000 of value per non-employee director. The restricted stock unit award will be made upon initial appointment to our board of directors and then subsequently at the first scheduled meeting of the board of directors following our annual meeting of stockholders. The number of restricted stock units will be calculated by dividing $50,000 by the closing trading price of our common stock on the date of the award. The restricted stock unit award will vest in full on the earlier to occur of the next annual meeting of stockholders or the one-year anniversary of the award. All equity awards granted under the Director Plan will be made from the 2019 Plan. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The table below sets forth certain information as of March 13, 2026 concerning the ownership of our common stock by: ● each stockholder known by us to be the beneficial owner of more than 5% of the outstanding shares of our common stock (currently our only class of voting securities); ● each of our directors; ● each of our executive officers; and ● all directors and executive officers as a group. Beneficial ownership is determined in accordance with Rule 13d-3 of the Exchange Act and includes all shares over which the beneficial owner exercises voting or investment power. Shares that are issuable upon the exercise of options, warrants and other rights to acquire common stock that are presently exercisable or exercisable within 60 days of March 13, 2026 are reflected in a separate column in the table below. These shares are taken into account in the calculation of the total number of shares beneficially owned by a particular holder and the total number of shares outstanding for the purpose of calculating percentage ownership of the particular holder. We have relied on information supplied by our officers, directors and certain stockholders and on information contained in filings with the SEC. Except as otherwise indicated, and subject to community property laws where applicable, we believe, based on information provided by these persons, that the persons named in the table have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them. The percentage of beneficial ownership is based on 12,628,485 shares of our common stock and exchangeable shares outstanding as of March 13, 2026. 56 Unless otherwise stated, the business address of each of our directors and executive officers listed in the table is 2033 Gateway Place, Suite 500, San Jose, California 95110. Amount and Nature of Beneficial Ownership Name Number of Shares Beneficially Owned (Excluding Outstanding Options)(1) Number of Shares Issuable on Exercise of Outstanding Options or Convertible Securities(2) Percent of Class More than 5% Beneficial Owners: Iroquois Capital Management, LLC — (3) 1,401,606 (3) 9.99 % Ionic Ventures, LLC — (4) 952,380 (4) 7.01 % Directors and Officers: Ronald Glibbery 4,308 62,632 * Daniel Lewis 4,292 1,875 * Robert Newell 3,947 494 * Cornelis Links 25 — * Andreas Melder 1,851 494 * James Sullivan 1,893 53,578 * Bradley Lynch 1,573 58,928 * Alexander Tomkins 6,083 59,070 * All current directors and executive officers as a group (8 persons) 23,972 237,071 2.0 % * Represents holdings of less than one percent. (1) Excludes shares subject to outstanding options, warrants, convertible securities or other rights to acquire common stock that are exercisable within 60 days of March 13, 2026. (2) Represents the number of shares subject to outstanding options, restricted stock units, convertible securities or other rights to acquire common stock that are exercisable within 60 days of March 13, 2026. (3) Based on information reported on a Schedule 13G/A filed with the SEC on August 14, 2025 by Iroquois Capital Management LLC (“Iroquois Capital”), Richard Abbe and Kimberly Page. The filing reflects that (i) Iroquois Capital, Mr. Abbe and Ms. Page share voting and dispositive power over 371,424 shares of common stock issuable upon exercise of warrants that are directly held by Iroquois Master Fund Ltd. (“Iroquois Master Fund”), and (ii) Mr. Abbe has sole voting and dispositive power over 1,057,146 shares of common stock issuable upon exercise of warrants directly held by Iroquois Capital Investment Group LLC (“ICIG”). The table above excludes 26,964 shares of common stock issuable upon exercise of the warrants because the warrants are subject to a 9.99% beneficial ownership blocker. Mr. Abbe shares authority and responsibility for the investments made on behalf of Iroquois Master Fund with Ms. Kimberly Page, each of whom is a director of the Iroquois Master Fund. As such, Mr. Abbe and Ms. Page may each be deemed to be the beneficial owner of all shares of common stock held by and underlying the warrants held by, Iroquois Master Fund. Iroquois Capital is the investment advisor for Iroquois Master Fund and Mr. Abbe is the President of Iroquois Capital. Mr. Abbe has the sole authority and responsibility for the investments made on behalf of ICIG. As such, Mr. Abbe may be deemed to be the beneficial owner of all shares of common stock held by and underlying the warrants held by Iroquois Master Fund and ICIG. The principal business address for Iroquois Capital, Mr. Abbe and Ms. Page is 2 Overhill Road, Scarsdale, NY 10583. (4) Based on information available to the Company and information reported on a Schedule 13G/A filed with the SEC on November 14, 2024 by Ionic Ventures, LLC (“Ionic”), Ionic Management, LLC (“Ionic Management”), Brendan O’Neil and Keith Coulston, which each report shared voting and dispositive power with respect to the shares. The shares of common stock shown to be beneficially owned by Ionic consist of 952,380 shares of common stock issuable upon the exercise of Series A warrants, which warrants are subject to a 9.99% beneficial ownership blocker. Ionic has the power to dispose of and the power to vote the shares beneficially owned by it, which power may be exercised by its manager, Ionic Management. Each of the managers of Ionic Management, Mr. O’Neil and Mr. Coulston, has shared power to vote and/or dispose of the shares beneficially owned by Ionic and Ionic Management. The principal business address of Ionic, Ionic Management, Mr. O’Neil and Mr. Coulston is 3053 Fillmore St, Suite 256, San Francisco, CA 94123. 57 Securities Authorized for Issuance under Equity Compensation Plans The following table provides information as of December 31, 2025 regarding equity compensation plans approved by our security holders. As of December 31, 2025, we had no awards outstanding under equity compensation plans that have not been approved by our security holders. Plan Category Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted Average Exercise Price of Outstanding Options, Warrants and Rights Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding Securities reflected in Column (a))(1) (a) (b) (c) Equity compensation plans approved by security holders 1,347,402 (2) $ 3.34 1,188,962 (1) Consists of shares of common stock available for future issuance under the 2019 Plan. (2) Consists of 694 shares of common stock subject to outstanding equity awards under our 2010 Equity Incentive Plan, 1,320,931 shares of common stock subject to outstanding equity awards under our 2019 Plan and 25,777 shares of common stock subject to outstanding options assumed by us in connection with the business combination with Peraso Technologies Inc. completed in December 2021. Item 13. Certain Relationships and Related Transactions and Director Independence. Related Party Transactions Below we describe any transactions to which we have been a participant, in which the amount involved in the transaction exceeds or will exceed the lesser of $120,000 or one percent of the average of our total assets at year end for each of the last two completed fiscal years and in which any of our directors, director nominees, executive officers, or holders of more than 5% of our capital stock, or any immediate family member of, or person sharing the household with, any of these individuals, had or will have a direct or indirect material interest since January 1, 2024. On June 11, 2024, we entered into a stock purchase agreement with Ian McWalter, who was then a member of our board of directors, pursuant to which we sold and Dr. McWalter purchased 100,000 restricted shares of common stock at a price per share of $1.27. A family member of one of our executive officers is employed by us. During the years ended December 31, 2025 and 2024, we paid the employee approximately $129,300 and $113,800, respectively, which includes the aggregate grant date fair values, as determined pursuant to FASB ASC Topic 718, of any stock option granted during each period. Policies and Procedures for Review and Approval of Related Party Transactions Pursuant to its charter, our Audit Committee has the responsibility to review and approve any transactions with a related party. In considering whether to approve any such transaction, the Audit Committee considers such factors as it deems appropriate, and generally focuses on whether the terms of the transaction are at least as favorable to us as terms we would receive on an arm’s-length basis from an unaffiliated third party and whether any such transaction might impair the independence of a director or present a conflict of interest for a director or executive officer. Each of the transactions described above that was required to be reviewed and approved by the Audit Committee in accordance with its charter was so reviewed and approved. Director Independence Our board of directors has determined that each of the current directors, with the exception of Ronald Glibbery, is “independent,” as defined by the Nasdaq listing rules and the rules and regulations of the SEC. Our board of directors has standing Audit and Compensation Committees, each of which is comprised solely of independent directors in accordance with the Nasdaq listing rules. No director qualifies as independent unless the board of directors affirmatively determines that he has no direct or indirect relationship with us that would impair his independence. We independently review the relationship of the Company to any entity employing a director or on whose board of directors he is serving currently. 58 Item 14. Principal Accountant Fees and Services. Weinberg & Co., P.A. (“Weinberg”) was our independent registered public accounting firm for the years ended December 31, 2025 and 2024. The following table shows the fees billed (in thousands of dollars) to us by Weinberg for the financial statement audits and other services provided for fiscal 2025 and 2024. 2025 2024 Audit Fees(1) $ 223 $ 205 Audit-Related Fees(2) 37 94 Total(3) $ 260 $ 299 (1) Audit fees consisted of fees for professional services rendered for the audit of our annual consolidated financial statements, review of our quarterly financial statements and services normally provided in connection with statutory and regulatory filings. (2) Audit-related fees consisted of fees related to the issuance of SEC registration statements and sales of our securities under registration statements. (3) Weinberg did not provide any non-audit or other services other than those reported under “Audit Fees” and “Audit-Related Fees.” The Audit Committee meets with our independent registered public accounting firm at least four times a year. At such times, the Audit Committee reviews both audit and non-audit services performed by the independent registered public accounting firm, as well as the fees charged for such services. The Audit Committee is responsible for pre-approving all auditing services and non-auditing services (other than non-audit services falling within the de minimis exception set forth in Section 10A(i)(1)(B) of the Exchange Act and non-audit services that independent auditors are prohibited from providing to us) in accordance with the following guidelines: (1) pre-approval policies and procedures must be detailed as to the particular services provided; (2) the Audit Committee must be informed about each service; and (3) the Audit Committee may delegate pre-approval authority to one or more of its members, who shall report to the full committee, but shall not delegate its pre-approval authority to management. Among other things, the Audit Committee examines the effect that performance of non-audit services may have upon the independence of the auditors. 59 Part IV Item 15. Exhibits. (a)(1) Consolidated Financial Statements: The following documents are filed as part of this Report: Consolidated Financial Statements and Report of Independent Registered Public Accounting Firm, all of which are set forth on pages F-1 through F-34 of this Report. (2) Financial Statement Schedules: Financial statement schedules are omitted because they are not required, not applicable or because the required information is shown in the consolidated financial statements or notes thereto. (3) Exhibits: Required exhibits are incorporated by reference or are filed with this Report. Reference Filed or Exhibit No. Exhibit Description Form File No. Form Exhibit Filing Date Furnished Herewith 2.1** Arrangement Agreement with Peraso Technologies Inc. 8-K 000-32929 2.1 September 15, 2021 2.2 First Amending Agreement dated October 21, 2021 8-K 000-32929 2.1 October 22, 2021 3.1 Restated Certificate of Incorporation of the Company 8-K 000-32929 3.6 November 12, 2010 3.1.1 Certificate of Amendment to Restated Certificate of Incorporation of the Company 8-K 000-32929 3.1 February 14, 2017 3.1.2 Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, filed with the Secretary of State of the State of Delaware on August 27, 2019 8-K 000-32929 3.1 August 27, 2019 3.1.3 Certificate of Amendment to Articles of Incorporation (Name Change) 8-K 000-32929 3.1 December 20, 2021 3.1.4 Certificate of Designation of Series A Special Voting Preferred Stock 8-K 000-32929 3.2 December 20, 2021 3.1.5 Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company, filed with the Secretary of State of the State of Delaware on December 15, 2023 8-K 000-32929 3.1 December 19, 2023 3.2 Amended and Restated Bylaws of the Company 8-K 000-32929 3.1 November 23, 2021 4.1 Specimen Common Stock Certificate S-1/A 333-43122 4.1 September 14, 2000 4.2 Description of the Registrant’s Securities 10-K 000-32929 4.2 March 28, 2025 4.3* Amended and Restated Peraso Inc. 2010 Equity Incentive Plan S-8 333-229728 4.8 February 15, 2019 4.4* Peraso Inc. Amended and Restated 2019 Stock Incentive Plan, as amended 8-K 000-32929 10.1 December 23, 2025 4.5* Form of Agreement for Stock Option Grant pursuant to the Peraso Inc. Amended and Restated 2010 Equity Incentive Plan S-8 333-168358 4.10 July 28, 2010 4.6* Form of Notice of Grant of Stock Option Award and Agreement pursuant to the Peraso Inc. 2019 Stock Incentive Plan S-8 333-234675 4.10 November 13, 2019 4.7* Form of Notice of Grant of Restricted Stock Unit Award and Agreement under the Peraso Inc. 2019 Stock Incentive Plan S-8 333-234675 4.13 November 13, 2019 60 4.8* Amended Peraso Technologies Inc. 2009 Share Option Plan S-8 333-262062 4.5 January 7, 2022 4.9 Form of Common Stock Purchase Warrant 8-K 000-32929 4.2 November 30, 2022 4.10 Form of Purchase Warrant 8-K 000-32929 4.2 June 2, 2023 4.11 Form of Placement Agent Warrant 8-K 000-32929 4.3 June 2, 2023 4.12 Form of Series A Warrant S-1/A 333-276247 4.15 February 5, 2024 4.13 Form of Representative Warrant S-1/A 333-276247 4.17 January 23, 2024 4.14 Form of Series C Warrant 8-K 000-32929 4.1 November 5, 2024 4.15 Form of Series D Warrant 8-K 000-32929 4.2 November 5, 2024 4.16 Form of Placement Agent Warrant 8-K 000-32929 4.3 November 5, 2024 4.17 Form of Series E Warrant 8-K 000-32929 4.1 September 12, 2025 4.18 Form of Placement Agent Warrant dated September 12, 2025 8-K 000-32929 4.2 September 12, 2025 10.1* Employment Offer Letter Agreement between the Company and James Sullivan dated December 21, 2007 10-K 000-32929 10.26 March 17, 2008 10.2* Form of New Employee Inducement Grant Stock Option Agreement (revised February 2012) 10-K 000-32929 10.19 March 15, 2012 10.3 Form of Indemnification Agreement used from June 2012 to present 10-Q 000-32929 10.22 August 9, 2012 10.4* Executive Change-in-Control and Severance Policy SC TO-I 005-78033 99.(D)(7) July 26, 2016 10.5 Intercompany Services Agreement 8-K 000-32929 10.2 December 20, 2021 10.6* Employment Agreement (Ronald Glibbery) 8-K 000-32929 10.3 December 20, 2021 10.7* Employment offer letter agreement between the Company and Mark Lunsford dated October 4, 2022 10-K 000-32929 10.17 March 29, 2023 10.8* Employment Agreement (Brad Lynch) X 10.9* Employment Agreement (Alexander Tomkins) X 10.10* Amendment to offer of employment between the Company and James Sullivan dated April 15, 202 2 10-Q 000-32929 10.2 August 15, 2022 10.11* Amendment to employment agreement between Peraso Technologies Inc. and Brad Lynch dated April 15, 2022 10-Q 000-32929 10.3 August 15, 2022 10.12* Amendment to offer of employment between the Company and Alex Tomkins dated April 19, 2023 S-1 333-272729 10.21 June 16, 2023 10.13* Amendment to offer of employment between the Company and Ronald Glibbery dated April 19, 2023 S-1 333-272729 10.22 June 16, 2023 10.14* Second Amendment to offer of employment between the Company and Brad Lynch dated April 19, 2023 S-1 333-272729 10.23 June 16, 2023 10.15* Technology License and Patent Assignment Agreement By and Between Intel Corporation and the Company dated August 5, 2022 10-Q 000-32929 10.1 November 14, 2022 10.16 First Amendment to Executive Change-in-Control and Severance Policy 10-Q 000-32929 10.23 May 13, 2021 10.17* Amendment No. 1 to Peraso Inc. Common Stock Purchase Warrant 8-K 000-32929 10.3 June 2, 2023 10.18 Warrant Agency Agreement, dated February 8, 2024, by and between the Company and Equiniti Trust Company, LLC 8-K 000-32929 10.2 February 9, 2024 10.19 Amendment to the Warrant Agency Agreement dated February 8, 2024 by and between Peraso Inc. and Equiniti Trust Company, LLC, as Warrant Agent, dated August 6, 2024 8-K 000-32929 10.1 August 7, 2024 10.20 At The Market Offering Agreement, dated August 30, 2024, by and between Peraso Inc. and Ladenburg Thalmann & Co. Inc. 8-K 000-32929 10.1 August 30, 2024 10.21 Amendment #2 to the Warrant Agency Agreement dated February 8, 2024 by and between Peraso Inc. and Equiniti Trust Company, LLC, as Warrant Agent, dated October 3, 2024 8-K 000-32929 10.1 October 4, 2024 Form of Inducement Letter 8-K 000-32929 10.1 November 5, 2024 10.22 Form of Amendment to Series C Common Stock Purchase Warrant 8-K 000-32929 10.1 May 2, 2025 10.23 Form of Amendment No. 2 to Series C Common Stock Purchase Warrant 8-K 000-32929 10.1 August 5, 2025 10.24 Form of Inducement Letter dated September 11, 2025 8-K 000-32929 10.1 September 12, 2025 61 10.25 Form of Amendment No. 3 to Series C Common Stock Purchase Warrant 8-K 000-32929 10.1 December 9, 2025 19.1 Insider Trading Policy 10-K 000-32929 19.1 March 28, 2025 21.1 List of Subsidiaries 10-K 000-32929 21.1 March 29, 2023 23.1 Consent of Independent Registered Public Accounting Firm-Weinberg & Co., P.A. X 24.1 Power of Attorney (see signature page) X 31.1 Rule 13a-14 Certification X 31.2 Rule 13a-14 Certification X 32 Section 1350 Certification X 97.1 Company Clawback Policy 10-K 000-32929 97.1 March 29, 2024 101.INS Inline XBRL Instance Document X 101.SCH Inline XBRL Taxonomy Extension Schema Document X 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document X 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document X 101.LAB Inline XBRL Taxonomy Extension Labels Linkbase Document X 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document X 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) X * Management contract, compensatory plan or arrangement. ** Certain schedules, exhibits and similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish copies of such omitted materials supplementally upon request by the SEC. Item 16. Form 10-K Summary Not applicable. 62 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 30 th day of March 2026. PERASO INC. By: /s/ Ronald Glibbery Ronald Glibbery Chief Executive Officer POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints each of Ronald Glibbery and James Sullivan as his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments to this Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in- fact and agents, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ Ronald Glibbery Chief Executive Officer and Director March 30, 2026 Ronald Glibbery (principal executive officer) /s/ James Sullivan Chief Financial Officer James Sullivan (principal financial and accounting officer) March 30, 2026 /s/ Daniel Lewis Director March 30, 2026 Daniel Lewis /s/ Cornelis Links Director March 30, 2026 Cornelis Links /s/ Andreas Melder Director March 30, 2026 Andreas Melder /s/ Robert Newell Director March 30, 2026 Robert Newell 63 PERASO INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm (PCAOB ID 572 ) F-2 Consolidated Balance Sheets F-4 Consolidated Statements of Operations F-5 Consolidated Statements of Stockholders’ Equity F-6 Consolidated Statements of Cash Flows F-7 Notes to Consolidated Financial Statements F-8 - F-34 F- 1 Report of Independent Registered Public Accounting Firm Board of Directors and Stockholders Peraso Inc. San Jose, California Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Peraso Inc. (the “Company”) and subsidiaries as of December 31, 2025 and 2024, the related consolidated statements of operations, stockholders’ equity, and cash flows for the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company and its subsidiaries as of December 31, 2025 and 2024, and the results of their operations and their cash flows for the years then ended , in conformity with accounting principles generally accepted in the United States of America. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, during the year ended December 31, 2025, the Company incurred a net loss and used cash in operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate these conditions are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. F- 2 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Issuance of warrants during the period As described in Note 10 to the consolidated financial statements, during the year ended December 31, 2025, the Company issued certain common stock warrants in various financing transactions. The Company evaluated the terms of the common stock warrants under ASC 815, including the scope exception in ASC 815-40, and concluded the instruments qualified for equity classification. We identified the assessment of the accounting for the common stock warrants as a critical audit matter because of the complexity in applying the accounting framework and the significant judgments made by management in the determination of the classification of the warrants. This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate the reasonableness of management’s classification. The primary procedures we performed to address this critical audit matter included, among others: ● We obtained and read the agreements related to the common stock warrants and evaluated the key contractual terms, including exercise prices, expiration dates and settlement provisions. ● We evaluated management’s accounting analysis and assessed the appropriateness of the equity classification conclusion by reference to the criteria in ASC 815-40. ● Utilizing personnel with specialized knowledge and skill in the relevant technical accounting guidance to evaluate the appropriateness of the Company’s application of the relevant technical accounting guidance in determining whether the Common Stock Warrants require liability accounting treatment. We have served as the Company’s auditor since 2020. /s/ Weinberg & Company Los Angeles, California March 30, 2026 F- 3 PART I—FINANCIAL INFORMATION Item 1. Financial Statements PERASO INC. CONSOLIDATED BALANCE SHEETS (In thousands, except par value) December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 2,886 $ 3,344 Accounts receivable, net 1,219 682 Inventories, net 1,168 2,079 Prepaid expenses and other 195 188 Total current assets 5,468 6,293 Property and equipment, net 363 512 Right-of-use lease assets 143 267 Intangible assets, net 6 13 Other 99 121 Total assets $ 6,079 $ 7,206 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 679 $ 1,036 Accrued expenses and other 540 1,987 Deferred revenue 8 341 Short-term lease liabilities 95 139 Total current liabilities 1,322 3,503 Long-term lease liabilities 97 182 Warrant liabilities 24 55 Total liabilities 1,443 3,740 Commitments and contingencies (Note 5) Stockholders’ equity Preferred stock, $ 0.01 par value; 20,000 shares authorized; none issued and outstanding — — Series A, special voting preferred stock, $ 0.01 par value; one share authorized, issued and outstanding at December 31, 2025 and 2024 — — Common stock, $ 0.001 par value; 120,000 shares authorized; 10,055 shares and 4,474 shares issued and outstanding at December 31, 2025 and 2024, respectively 9 3 Exchangeable shares, no par value; unlimited shares authorized; 56 shares and 60 shares outstanding at December 31, 2025 and 2024, respectively — — Issuable shares, 137 and 917 shares at December 31, 2025 and 2024, respectively 162 1,193 Additional paid-in capital 186,338 179,390 Accumulated deficit ( 181,873 ) ( 177,120 ) Total stockholders’ equity 4,636 3,466 Total liabilities and stockholders’ equity $ 6,079 $ 7,206 The accompanying notes are an integral part of these consolidated financial statements. F- 4 PERASO INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Year Ended December 31, 2025 2024 Net revenue Product $ 11,845 $ 14,248 Royalty and other 348 325 Total net revenue 12,193 14,573 Cost of net revenue 5,126 7,040 Gross profit 7,067 7,533 Operating expenses Research and development 6,245 9,232 Selling, general and administrative 5,805 8,673 Severance and software license obligations ( 223 ) 2,063 Total operating expenses 11,827 19,968 Loss from operations ( 4,760 ) ( 12,435 ) Interest expense ( 1 ) ( 10 ) Change in fair value of warrant liabilities 31 1,693 Other income (expense), net ( 23 ) 24 Net loss $ ( 4,753 ) $ ( 10,728 ) Net loss per share Basic and diluted $ ( 0.67 ) $ ( 3.57 ) Shares used in computing net loss per share Basic and diluted 7,064 3,002 The accompanying notes are an integral part of these consolidated financial statements. F- 5 PERASO INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands) Additional Total Common Stock Issuable Shares Exchangeable Shares Paid-In Accumulated Stockholders’ Shares Amount Shares Amount Shares Amount Capital Deficit Equity Balance as of December 31, 2023 673 $ 1 — $ — 95 $ — $ 170,474 $ ( 166,392 ) $ 4,083 Shares issued for reverse stock split 51 — — — — — — — — Exchange of exchangeable shares 35 — — — ( 35 ) — — — — Issuance of common stock under stock plans, net of taxes paid related to net share settlements of restricted stock units 7 — — — — — ( 6 ) — ( 6 ) Sale of common stock and warrants, net 562 — — — — — 3,431 — 3,431 Issuance of common stock and warrants from warrant inducement offering, net 1,329 — 917 1,193 — — 1,389 — 2,582 Sale of common stock 100 — — — — — 127 — 127 Issuance of common stock upon exercise of pre-funded warrants 1,425 2 — — — — — — 2 At-the market sales of stock, net 252 — — — — — 333 — 333 Shares issued for services 40 — — — — — 54 — 54 Stock-based compensation — — — — — — 3,588 — 3,588 Net loss — — — — — — — ( 10,728 ) ( 10,728 ) Balance as of December 31, 2024 4,474 3 917 1,193 60 — 179,390 ( 177,120 ) 3,466 At-the market sales of stock, net 3,714 4 — — — — 4,347 — 4,351 Issuance of abeyance shares 1,618 2 ( 1,617 ) ( 2,019 ) — — 2,017 — — Exchange of exchangeable shares 4 — — — ( 4 ) — — — — Issuance of common stock and warrants from warrant inducement offering, net 115 — 837 988 — — ( 55 ) — 933 Issuance of common stock under stock plans 40 — — — — — 28 — 28 Shares issued for services 90 — — — — — 90 — 90 Stock-based compensation — — — — — — 521 — 521 Net loss — — — — — — — ( 4,753 ) ( 4,753 ) Balance as of December 31, 2025 10,055 $ 9 137 $ 162 56 $ — $ 186,338 $ ( 181,873 ) $ 4,636 The accompanying notes are an integral part of these consolidated financial statements. F- 6 PERASO INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2025 2024 Cash flows from operating activities: Net loss $ ( 4,753 ) $ ( 10,728 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 263 3,911 Stock-based compensation 521 3,588 Change in fair value of warrant liabilities ( 31 ) ( 1,693 ) Inventory write downs 36 359 Shares issued for services 90 54 Allowance for bad debt ( 21 ) ( 2 ) Accrued interest on debt obligation and other — ( 7 ) Changes in assets and liabilities Accounts receivable ( 516 ) 51 Inventories 875 168 Prepaid expenses and other assets 15 432 Accounts payable ( 357 ) ( 1,412 ) Right-of-use assets 124 348 Lease liabilities - operating ( 76 ) ( 260 ) Accrued expenses and other ( 1,447 ) 1,376 Deferred revenue ( 333 ) ( 764 ) Net cash used in operating activities ( 5,610 ) ( 4,579 ) Cash flows from investing activities: Purchases of property and equipment ( 107 ) — Net cash used in investing activities ( 107 ) — Cash flows from financing activities: Proceeds from at-the-market sales of stock, net 4,351 333 Proceeds from warrant inducement, net 933 2,582 Proceeds from sale of common stock and warrants, net 28 3,559 Repayment of financing lease ( 53 ) ( 128 ) Taxes paid to net share settle equity awards — ( 6 ) Net cash provided by financing activities 5,259 6,340 Net increase (decrease) in cash and cash equivalents ( 458 ) 1,761 Cash and cash equivalents at beginning of year 3,344 1,583 Cash and cash equivalents at end of year $ 2,886 $ 3,344 The accompanying notes are an integral part of these consolidated financial statements. F- 7 PERASO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. The Company and Summary of Significant Accounting Policies Peraso Inc., formerly known as MoSys, Inc. (the Company), was incorporated in California in 1991 and reincorporated in 2000 in Delaware. The Company is a fabless semiconductor company specializing in the development of millimeter wave (mmWave), which is generally described as the frequency band from 24 Gigahertz (GHz) to 300 GHz, wireless technology. The Company derives revenue from selling its semiconductor devices and modules, performance of non-recurring engineering services and licensing of its technology. On September 14, 2021, the Company and its subsidiaries, 2864552 Ontario Inc. (Callco) and 2864555 Ontario Inc. (Canco), entered into an Arrangement Agreement (the Arrangement Agreement) with Peraso Technologies Inc. (Peraso Tech), a corporation existing under the laws of the province of Ontario, to acquire all of the issued and outstanding common shares of Peraso Tech (the Peraso Shares), including those Peraso Shares to be issued in connection with the conversion or exchange of secured convertible debentures and common share purchase warrants of Peraso Tech, as applicable, by way of a statutory plan of arrangement (the Arrangement) under the Business Corporations Act (Ontario). On December 17, 2021, following the satisfaction of the closing conditions set forth in the Arrangement Agreement, the Arrangement was completed and, the Company changed its name to “Peraso Inc.” and began trading on the Nasdaq Stock Market (the Nasdaq) under the symbol “PRSO.” Liquidity and Going Concern The Company incurred net losses of approximately $ 4.8 million and $ 10.7 million for the years ended December 31, 2025 and 2024, respectively, and had an accumulated deficit of approximately $ 181.9 million as of December 31, 2025. These and prior year losses have resulted in significant negative cash flows and have required the Company to raise substantial amounts of additional capital. To date, the Company has primarily financed its operations through multiple offerings of common stock and warrants and the issuance of convertible notes and loans to investors and affiliates. As disclosed in Note 10, in September 2025, the Company completed a warrant inducement offering for net proceeds of approximately $ 0.9 million. Additionally, as disclosed in Note 9, on August 30, 2024, the Company entered into the Sales Agreement with Ladenburg, pursuant to which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock through Ladenburg as agent and/or principal (subject to the limitations of General Instruction I.B.6 of Form S-3) through an at-the-market program. During the year ended December 31, 2025, the Company sold 3,713,939 shares of common stock for net proceeds of $ 4.4 million pursuant to the Sales Agreement. The Company expects to continue to incur operating losses for the foreseeable future as it secures additional customers and continues to invest in the commercialization of its products. The Company will need to increase revenues substantially beyond levels that it has attained in the past in order to generate sustainable operating profit and sufficient cash flows to continue doing business without raising additional capital from time to time. As a result of the Company’s expected operating losses and cash burn for the foreseeable future, as well as recurring losses from operations, management has concluded that there is substantial doubt regarding the Company’s ability to continue as a going concern for a period of at least 12 months beyond the filing of this Annual Report on Form 10-K. These consolidated financial statements do not include any adjustments that might result from this uncertainty. There can be no assurance that the Company can raise additional capital, whether in the form of debt or equity financing, that will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company. The Company’s primary focus is producing and selling its products. If the Company is unsuccessful in these efforts, it will need to implement additional cost reduction strategies, which could further affect its near- and long-term business plan. These efforts may include, but are not limited to, reducing headcount and curtailing business activities. F- 8 Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on December 31 of each calendar year. Certain prior year amounts have been reclassified for consistency with the current-period presentation. These reclassifications had no effect on the reported results of operations or cash flows. Reverse Stock Split On December 15, 2023, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to effect a 1-for-40 reverse stock split of the Company’s shares of common stock. Further, on January 2, 2024, Canco filed a certificate of amendment to its amended and restated certificate of incorporation under the Ontario Business Corporations Act to effect a 1-for-40 reverse stock split of the outstanding exchangeable shares. Such amendments and ratio were previously approved by the Company’s stockholders and board of directors. As a result of the reverse stock split, which was effective for trading purposes on January 3, 2024, every 40 shares of the Company’s pre-reverse split outstanding common stock and exchangeable shares were combined and reclassified into one share of common stock. Proportionate voting rights and other rights of holders of common stock and exchangeable shares were not affected by the reverse stock split. Any fractional shares of common stock and exchangeable shares resulting from the reverse stock split were rounded up to the nearest whole share. All stock options and restricted stock units outstanding and common stock reserved for issuance under the Company’s equity incentive plans and warrants outstanding immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by 40 and, as applicable, multiplying the exercise price by 40, as a result of the reverse stock split. All share and per-share amounts in these consolidated financial statements have been restated to reflect the reverse stock split as if it had occurred at the beginning of the earliest period presented. Risks and Uncertainties The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, the volatility of public markets, rapidly changing customer requirements, limited operating history, tariffs, pandemics, wars and acts of terrorism. The Company may be unable to access the capital markets, and additional capital may only be available to the Company on terms that could be significantly detrimental to its existing stockholders and to its business. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses recognized during the reported period. Material estimates may include assumptions made in determining reserves for uncollectible receivables, inventory write-downs, impairment of long-term assets, purchase price allocations, valuation allowance on deferred tax assets, accruals for potential liabilities and assumptions made in valuing equity instruments and warrant liabilities. Actual results could differ from those estimates. Cash Equivalents and Investments The Company may invest its excess cash in money market accounts, certificates of deposit, corporate debt, government-sponsored enterprise bonds and municipal bonds and considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. Management generally determines the appropriate classification of securities at the time of purchase. All securities are classified as available-for-sale. The Company’s available-for-sale short-term and long-term investments are carried at fair value, with the unrealized holding gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses and declines in the value judged to be other-than-temporary are included in the other income, net line item in the consolidated statements of operations. The cost of securities sold is based on the specific identification method. F- 9 Fair Value Measurements The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 —Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 —Pricing is provided by third party sources of market information obtained through the Company’s investment advisors, rather than models. The Company does not adjust for, or apply, any additional assumptions or estimates to the pricing information it receives from advisors. The Company’s Level 2 securities include cash equivalents and available-for-sale securities, which consisted primarily of certificates of deposit, corporate debt, and government agency and municipal debt securities from issuers with high-quality credit ratings. The Company’s investment advisors obtain pricing data from independent sources, such as Standard & Poor’s, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. Level 3 —Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment are used to measure fair value. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The determination of fair value for Level 3 investments and other financial instruments involves the most management judgment and subjectivity. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, accounts payable and other payables, approximate their fair values because of the short maturity of these instruments. The carrying values of lease obligations and long-term financing obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest rates. The Company measures the fair value of its warrant liabilities using Level 3 inputs. Allowance for Credit Losses The Company establishes an allowance for credit losses to ensure that its trade receivables balances are not overstated due to uncollectibility. The Company performs ongoing customer credit evaluations within the context of the industry in which it operates and generally does not require collateral from its customers. A specific allowance of up to 100 % of the invoice value is provided for any problematic customer balances. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The Company grants credit only to customers deemed creditworthy in the judgment of management. The allowance for credit losses was not material as of December 31, 2025 and 2024. F- 10 Inventories The Company values its inventories at the lower of cost, which approximates actual cost on a first-in, first-out basis, or net realizable value. Costs of inventories primarily consisted of material and third party assembly costs. The Company records write-downs for estimated obsolescence or unmarketable inventories based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those expected by management, additional adjustments to inventory valuation may be required. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow moving inventory items. The Company recorded write-downs of inventory of approximately $ 36,000 and $ 0.4 million during the years ended December 31, 2025 and 2024, respectively. Property and Equipment Property and equipment are originally recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to six years . Depreciation is recorded in cost of sales and operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and related amortization is recorded in operating expenses in the consolidated statements of operations. Intangible and Long-lived Assets Intangible assets are recorded at cost and amortized on a straight-line method over their estimated useful lives of three to ten years . Amortization of developed technology and other intangibles directly related to the Company’s products is included in cost of net revenue, while amortization of customer relationships and other intangibles not associated with the Company’s products is included in selling, general and administrative expenses in the consolidated statements of operations. The Company regularly reviews the carrying value and estimated lives of its long-lived assets and finite-lived intangible assets to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objective. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the long-lived asset group over the asset’s fair value. F- 11 Purchased Intangible Assets Intangible assets acquired in business combinations are accounted for based on the fair value of assets purchased and are amortized over the period in which economic benefit is estimated to be received. Intangible assets subject to amortization, including those acquired in business combinations were as follows (amounts in thousands): December 31, 2025 Gross Net Carrying Accumulated Other Carrying Amount Amortization Impairment Amount Developed technology $ 5,726 $ ( 5,726 ) $ — $ — Customer relationships 2,556 ( 2,556 ) — — Other 186 ( 74 ) ( 106 ) 6 Total $ 8,468 $ ( 8,356 ) $ ( 106 ) $ 6 December 31, 2024 Gross Net Carrying Accumulated Other Carrying Amount Amortization Impairment Amount Developed technology $ 5,726 $ ( 5,726 ) $ — $ — Customer relationships 2,556 ( 2,556 ) — — Other 186 ( 67 ) ( 106 ) 13 Total $ 8,468 $ ( 8,349 ) $ ( 106 ) $ 13 Developed technology primarily consisted of MoSys’ products that had reached technological feasibility and primarily related to its memory semiconductor products and technology. The value of the developed technology was determined by discounting estimated net future cash flows of these products. Amortization related to developed technology of $ 2.3 million for the year ended December 31, 2024, was included in cost of net revenue in the consolidated statements of operations. There was no amortization related to developed technology for the year ended December 31, 2025, as the purchased intangible assets were fully amortized as of December 31, 2024. Customer relationships relate to the Company’s ability to sell existing and future versions of its products to MoSys’ customers existing at the time of the arrangement. The fair value of the customer relationships was determined by discounting estimated net future cash flows from the customer relationships. Amortization related to customer relationships of $ 1.0 million for the year ended December 31, 2024, was included in selling, general and administrative expense in the consolidated statements of operations. There was no amortization related to customer relationships for the year ended December 31, 2025, as the purchased intangible assets were fully amortized as of December 31, 2024. Leases ASC 842, Leases (ASC 842), requires an entity to recognize a right-of-use asset and a lease liability for all leases with terms longer than 12 months. The Company adopted ASC 842 utilizing the modified retrospective transition method. The Company elected the practical expedient afforded in ASC 842 in which the Company did not reassess whether any contracts that existed prior to adoption have or contain leases or the classification of its existing leases. Warrants The Company accounts for common stock warrants as either equity-classified or liability-classified instruments based on an assessment of the specific terms of the warrants and the guidance provided by the Financial Accounting Standards Board (FASB) in Accounting Standards Codification (ASC) 480, Distinguishing Liabilities from Equity (ASC 480) and ASC 815, Derivatives and Hedging (ASC 815). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own stock and whether the holders of the warrants could potentially require net cash settlement in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, and its amendments (ASC 606). As described below, the analysis of contracts under ASC 606 supports the recognition of revenue at a point in time, resulting in revenue recognition timing that is materially consistent with the Company’s historical practice of recognizing product revenue when title and risk of loss pass to the customer. The Company generates revenue primarily from sales of integrated circuits and module products, performance of engineering services and licensing of its intellectual property. Revenues are recognized when control is transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. F- 12 Product revenue Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company’s contracts have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when title and risk of loss have been transferred to the customer, generally at the time of shipment of products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated, formula, list or fixed price. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically 60 days or less. The Company may record an estimated allowance, at the time of shipment, for future returns and other charges against revenue consistent with the terms of sale. Royalty and other Historically, the Company’s licensing contracts for its memory technology typically provided for royalties based on the licensee’s use of the Company’s memory technology in its currently shipping commercial products. The Company estimates its royalty revenue in the calendar quarter in which the licensee uses the licensed technology. Payments are received in the subsequent quarter. The Company also generates revenue from licensing its mmWave technology. The Company recognizes license fees as revenue at the point of time when the control of the license has been transferred and the Company has no continuing performance obligations to the customer. Engineering services revenue Engineering and development contracts with customers generally contain a single performance obligation that is delivered over time. Revenue is recognized using an output method that is consistent with the satisfaction of the performance obligation as a measure of progress. Contract liabilities – deferred revenue The Company’s contract liabilities consist of advance customer payments and deferred revenue. The Company classifies advance customer payments and deferred revenue as current or non-current based on the timing of when the Company expects to recognize revenue. As of December 31, 2025 and 2024, contract liabilities were in a current position and included in deferred revenue. During the year ended December 31, 2025, the Company recognized approximately $ 333,400 of revenue that had been included in deferred revenue as of December 31, 2024. See Note 7 for disaggregation of revenue by geography. The Company does not have significant financing components, as payments from customers are typically due within 60 days of invoicing, and the Company has elected the practical expedient to not value financing components that are less than one year. Shipping and handling costs are generally incurred by the customer, and, therefore, are not recorded as revenue. Cost of Net Revenue Cost of net revenue consists primarily of direct and indirect costs of product sales, including amortization of intangible assets and depreciation of production-related fixed assets. Advertising Costs Advertising costs are expensed as incurred. Advertising costs were not material for the years ended December 31, 2025 and 2024. F- 13 Research and Development Engineering costs are recorded as research and development expense in the period incurred. Stock-Based Compensation The Company periodically issues stock options and restricted stock units (RSUs) to employees and non-employees. The Company accounts for such awards based on ASC 718, whereby the value of the award is measured on the date of award and recognized as compensation expense on a straight-line basis over the vesting period. The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing (Black-Scholes) model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes model. The assumptions used in the Black-Scholes model could materially affect compensation expense recorded in future periods. The fair value of restricted stock awards, restricted stock units, and performance-based restricted stock units is based on the closing price of the Company’s common stock on the date of grant. Recognition of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services. Foreign Currency Transactions The functional currency of the Company is the U.S. dollar. All foreign currency transactions are initially measured and recorded in an entity’s functional currency using the exchange rate on the date of the transaction. All monetary assets and liabilities are remeasured at the end of each reporting period using the exchange rate at that date. All non-monetary assets and related expense, depreciation or amortization are not subsequently remeasured and are measured using the historical exchange rate. An average exchange rate may be used to recognize income and expense items earned or incurred evenly over a period. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the statement of operations, except for the gains and losses arising from the conversion of the carrying amount of the foreign currency denominated convertible preferred shares into the functional currency that are presented as adjustment to the net loss to arrive at net loss attributable to common stockholders. Per-Share Amounts Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of exchangeable shares and shares of common stock outstanding during the period. In addition, the Company includes the number of issuable shares and shares of common stock issuable upon exercise of pre-funded warrants as outstanding. Diluted net loss per share gives effect to all potentially dilutive exchangeable and common shares outstanding during the period. Potentially dilutive common shares consist of incremental exchangeable shares and shares of common stock issuable upon the achievement of escrow terms, exercise of stock options, vesting of stock awards and exercise of warrants. The following table sets forth securities outstanding that were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive (in thousands): December 31, 2025 2024 Escrow shares - exchangeable shares 33 33 Escrow shares - common stock 13 13 Options to purchase common stock 1,347 30 Unvested restricted common stock units — 3 Warrants classified as equity 8,837 8,770 Warrants classified as liabilities 235 235 Total 10,465 9,084 F- 14 Income Taxes The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2021 through 2025 tax years generally remain subject to examination by U.S. federal and state tax authorities, and the 2022 through 2025 tax years generally remain subject to examination by foreign tax authorities. At December 31, 2025, the Company did not have any material unrecognized tax benefits, except for the Sec. 382 limitation for loss carryforwards as discussed in Note 8, nor expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest related to unrecognized tax benefits as income tax expense and penalties related to unrecognized tax benefits as other income and expense. During the years ended December 31, 2025 and 2024, the Company did not recognize any interest or penalties related to unrecognized tax benefits. Comprehensive loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the years ended December 31, 2025 and 2024, the Company’s comprehensive loss was the same as its net loss. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The standard is effective for the Company for annual periods beginning January 1, 2027 and interim periods beginning January 1, 2028, with early adoption permitted. The standard may be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. The Company is evaluating the impact that this ASU will have on the presentation of its consolidated financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (the “Update”), an amendment to improve the guidance in Topic 270, Interim Report ing, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments add to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this Update clarify interim disclosure requirements and the applicability of Topic 270 apply to all entities that provide interim financial statements and notes in accordance with GAAP. In addition, the amendments in this Update result in a comprehensive list of interim disclosures that are required by GAAP with the objective to provide clarity about the current requirements. The Update is effective for the Company for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Update can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is evaluating the impact that the Update will have on the presentation of its consolidated financial statements. Other recent authoritative guidance issued by the FASB (including technical corrections to the ASCs), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission (the SEC) did not, or is not expected to, have a material impact on the Company’s consolidated financial statements and related disclosures. F- 15 Note 2. Fair Value of Financial Instruments The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024 and the basis for that measurement (in thousands): December 31, 2025 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 1 $ — $ — $ — Liabilities: Warrant liability $ 24 $ — $ — $ 24 December 31, 2024 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 1 $ — $ — $ — Liabilities: Warrant liability $ 55 $ — $ — $ 55 (1) Included in cash and cash equivalents The following table represents the Company’s determination of fair value for its financial assets (cash equivalents and investments) (in thousands): December 31, 2025 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 2,886 $ — $ — $ 2,886 December 31, 2024 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 3,344 $ — $ — $ 3,344 F- 16 Note 3. Balance Sheet Detail December 31, 2025 2024 (in thousands) Inventories: Raw materials $ 342 $ 627 Work-in-process 361 473 Finished goods 465 979 $ 1,168 $ 2,079 Prepaid expenses and other: Prepaid inventory and production costs $ 31 $ 9 Prepaid insurance 36 41 Prepaid software 46 39 Other 82 99 $ 195 $ 188 Property and equipment, net: Machinery and equipment $ 4,946 $ 4,848 Computer equipment and software 413 377 Furniture and fixtures 92 93 Leasehold improvements 428 428 Total property and equipment 5,879 5,746 Less: Accumulated depreciation and amortization ( 5,516 ) ( 5,234 ) $ 363 $ 512 December 31, 2025 2024 (in thousands) Accrued Expenses & Other: Accrued wages and employee benefits $ 280 $ 457 Professional fees, legal and consulting 175 223 Software license obligations — 1,118 Severance benefits — 118 Warranty accrual 12 34 Other 73 37 $ 540 $ 1,987 F- 17 Note 4. Severance and Software License Obligations In November 2023, the Company implemented an employee lay-off and terminated certain consulting positions (the Reductions) to reduce operating expenses and cash burn, as the Company prioritized business activities and projects that it believes will have a higher return on investment. As part of the Reductions, the Company implemented a temporary lay-off that impacted 16 employees (the Employees) of Peraso Tech. During 2024, the Company determined that it would not recall any of the 11 Employees that remained on the Company’s payroll and commenced notifying the remaining Employees that their employment would be terminated. As a result of the termination of the Employees’ employment, the Company recorded severance charges of approximately $ 446,000 during the six months ended June 30, 2024. The severance liabilities were fully paid as of December 31, 2025. As a result of the decision to not recall the Employees, the Company determined that it was probable that a number of its non-cancelable licenses for computer-aided design software would not be utilized during the remaining license terms. During the three months ended June 30, 2024, the Company accrued the value of the remaining contractual liabilities of approximately $ 1,617,000 . During the three months ended June 30, 2025, a licensor terminated one of the license agreements and initiated a refund of approximately $ 56,300 for amounts previously paid by the Company. As a result, the Company reversed approximately $ 222,600 of expense and approximately $ 166,300 of related contractual liabilities during the three months ended June 30, 2025. As of December 31, 2025, the remaining contractual liabilities had been fully paid. Note 5. Commitments and Contingencies Leases The Company has operating leases for its facilities in Toronto and Markham, Ontario, Canada and recognizes lease expense on a straight-line basis over the respective lease terms. The Company had an operating lease for its corporate headquarters facility in San Jose, California that was not renewed when the lease term expired on January 14, 2025. In May 2022, the Company entered into a lease for the facility in Markham with a 60 -month term, which commenced June 21, 2022. The initial right-of-use asset and corresponding liability of approximately CAD$ 1.0 million for the Markham facility lease were measured at the present value of the future minimum lease payments. The discount rate used to measure the lease assets and liabilities was 8 %. The Markham landlord also provided a lease incentive of approximately CAD$ 286,200 (the Incentive). In 2023, the Company received payment of CAD$ 143,100 from the Markham landlord of the first installment of the Incentive. The remaining balance of the Incentive is paid to the Company in the form of an adjustment to rent during the last three months of each calendar year during the remaining lease term. As of December 31, 2025, the pending Incentive to be received was CAD$ 35,775 . In December 2023, the Company renewed the Toronto office lease for a reduced amount of square footage for a one-year term, which commenced January 1, 2024. Upon the renewal of the Toronto lease in December 2023, the Company recognized a right-of-use asset of approximately $ 137,700 . The discount rate used to measure the lease assets and liabilities for the renewal was 8 %. In December 2024, the Company renewed the Toronto office lease for a one-year term, which commenced January 1, 2025, and the Company ceased accounting for the lease under ASC 842. On March 1, 2022, the Company entered into a 36-month finance lease agreement for the lease of equipment resulting in the recognition of a right-of-use asset and lease liability of approximately $ 274,000 . On March 1, 2025, the finance lease expired, and the Company took ownership of the equipment and the related right of use asset and liability was fully amortized. On November 1, 2022, the Company entered into a 36-month finance lease agreement for the lease of equipment resulting in the recognition of a right-of-use asset of approximately $ 124,000 and lease liability of approximately $ 117,000 . The final invoice was dated August 15, 2025. The finance lease expired and the Company took ownership of the equipment. The related right-of-use asset and liability was fully amortized on October 15, 2025. F- 18 The following table provides the details of right-of-use assets and lease liabilities as of December 31, 2025 (in thousands): Year Ended December 31, 2025 2024 Right-of-use assets: Operating leases $ 143 $ 213 Finance leases — 54 Total right-of-use assets $ 143 $ 267 Lease liabilities: Operating leases $ 192 $ 266 Finance leases — 55 Total lease liabilities $ 192 $ 321 Future minimum payments under the leases at December 31, 2025 are listed in the table below (in thousands): Year ending December 31, 2026 $ 106 2027 99 Total future lease payments 205 Less: imputed interest ( 13 ) Present value of lease liabilities $ 192 The following table provides the details of supplemental cash flow information (in thousands): Year Ended December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for leases $ 161 $ 487 Rent expense was approximately $ 0.5 million and $ 0.7 million for the years ended December 31, 2025 and 2024, respectively. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and certain other operating costs related to the leased facilities. Indemnification In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has also entered into indemnification agreements with its officers and directors. No material amounts were reflected in the Company’s consolidated financial statements for the years ended December 31, 2025 and 2024 related to these indemnifications. The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any payments related to these indemnification agreements. F- 19 Product Warranties The Company warrants certain of its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of net revenues. Warranty costs were not material for the years ended December 31, 2025 and 2024. Legal Matters The Company is not a party to any legal proceeding that the Company believes is likely to have a material adverse effect on its consolidated financial position or results of operations. From time to time the Company may be subject to legal proceedings and claims in the ordinary course of business. These claims, even if not meritorious, could result in the expenditure of significant financial resources and diversion of management efforts. Purchase Obligations The Company’s primary purchase obligations include non-cancelable purchase orders for inventory. At December 31, 2025, the Company had outstanding non-cancelable purchase orders for inventory, primarily wafers and substrates, and related expenditures of approximately $ 2.7 million. Note 6. Retirement Savings Plan Effective January 1997, the Company adopted the Peraso 401(k) Plan (the Savings Plan), which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. Full-time and part-time employees who are at least 21 years of age are eligible to participate in the Savings Plan at the time of hire. Participants may contribute up to 15 % of their earnings to the Savings Plan. No matching contributions were made by the Company during the years ended December 31, 2025 and 2024. Note 7. Business Segments, Concentration of Credit Risk and Significant Customers Segment Information The Company determines its reporting units in accordance with ASC No. 280, Segment Reporting (ASC 280), as amended by ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which the Company adopted effective December 31, 2024. Management evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meet the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company’s chief executive officer is the chief operating decision maker (CODM), and the CODM evaluates financial performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis, including consolidated net income (loss). Because the CODM evaluates financial performance on a consolidated basis, the Company operates and manages its business as one reportable and operating segment as a fabless semiconductor company focused on the development and sale of mmWave wireless technology, semiconductor devices and antenna modules, the performance of non-recurring engineering, or NRE, services and the licensing of intellectual property. The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company’s reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments. F- 20 Significant segment expenses include research and development expenditures, salaries and benefits, stock-based compensation, and software license obligations. Operating expenses include all remaining costs necessary to operate the Company’s business, which primarily include facilities, external professional services and other administrative expenses. The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM: Year Ended December 31, 2025 2024 Total net revenue $ 12,193 $ 14,573 Less: Cost of net revenue 5,126 7,040 Research and development 2,171 3,303 Salaries 5,829 6,138 Stock-based compensation 522 3,588 Severance and software license obligations ( 223 ) 2,063 Other operating expenses 3,528 4,876 Other income ( 7 ) ( 1,707 ) Net loss $ ( 4,753 ) $ ( 10,728 ) Concentrations The Company recognized revenue from shipments of products, licensing of its technologies and performance of services to customers by geographical destination as follows (in thousands): Year Ended December 31, 2025 2024 Taiwan $ 5,275 $ 238 Europe 3,132 995 North America 2,356 12,478 Hong Kong 14 474 Rest of world 1,416 388 Total net revenue $ 12,193 $ 14,573 The following is a breakdown of product revenue by category (in thousands): Years Ended December 31, Product category 2025 2024 Memory ICs $ 2,720 $ 12,914 mmWave ICs 6,734 302 mmWave modules 2,293 1,007 mmWave other products 98 25 $ 11,845 $ 14,248 F- 21 The following table lists significant customers that represented more than 10% of total revenue during each respective period: Year Ended December 31, 2025 2024 Customer A 29 % * Customer B 13 % 61 % Customer C 13 % * Customer D 13 % * Customer E 12 % * Customer F * 25 % * Represents less than 10% The following table lists significant customers that represented more than 10% of the net accounts receivable balance at each respective balance sheet date: Accounts Receivable As of December 31, 2025 2024 Customer A 78 % * Customer B 15 % * Customer C * 58 % Customer D * 15 % Customer E * 18 % * Represents less than 10% The following table lists significant vendors that represented more than 10% of the total accounts payable balance at each respective balance sheet date: Accounts Payable As of December 31, 2025 2024 Vendor A 23 % * Vendor B 15 % * Vendor C 15 % * Vendor D * 16 % Vendor E * 15 % * Represents less than 10% F- 22 Note 8. Income Tax Provision The income tax provision consisted of the following (in thousands): Year Ended December 31, 2025 2024 Current portion: Federal and state $ — $ — Deferred portion: Federal 3,903 ( 381 ) State 946 83 Foreign ( 35,136 ) ( 34,793 ) ( 30,287 ) ( 35,091 ) Change in valuation allowance 30,287 35,091 Provision for income taxes $ — $ — Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were (in thousands): Year Ended December 31, 2025 2024 Deferred tax assets: Federal, state and foreign loss carryforwards $ 34,616 $ 34,231 Reserves, accruals and other 588 1,195 Depreciation and amortization 44 1,792 Deferred stock-based compensation 39 2,450 Capitalized research and development costs 464 595 Research and development credit carryforwards 11,170 11,165 Total deferred tax assets 46,921 51,428 Less: Valuation allowance ( 46,921 ) ( 51,428 ) Net deferred tax assets, net $ — $ — Utilization of the Company’s net operating losses (NOLs) and tax credit carryforwards is subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code (IRC) and similar state provisions. Section 382 of the IRC (Section 382) imposes limitations on a corporation’s ability to utilize its NOL and tax credit carryforwards, if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership percentage of certain stockholders in the stock of the corporation by more than 50 % over a three-year period. In the event of an ownership change, utilization of the NOLs would be subject to an annual limitation under Section 382 determined by multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term tax-exempt rate. While a formal study has not been performed, the Company believes that Section 382 ownership changes occurred as a result of financing transaction in 2018 and the Arrangement. The Company believes the Section 382 limitations will result in approximately 91 % and 89 % of the federal and state NOLs, respectively, expiring before they can be utilized, and approximately 100 % of the federal tax credit carryforwards expiring before they can be utilized. F- 23 As of December 31, 2025, the Company had NOLs of approximately $ 214.1 million for federal income tax purposes, approximately $ 132.4 million for state income tax purposes and approximately $ 114.2 million for foreign income tax purposes. Only approximately $ 20.3 million of the federal NOLs and $ 14.8 million of the state NOLs are expected to be available before expiration due to the Section 382 limitation. These NOLs are available to reduce future taxable income and will expire at various times from 2026 through 2045, except federal NOLs from 2018 and later which have no expiration date. As of December 31, 2025, the Company also had federal research and development tax credit carryforwards of approximately $ 8.0 million that will expire at various times through 2042, California research and development credits of approximately $ 8.5 million, which do not have an expiration date, and foreign research and development tax credit carryforwards of approximately $ 4.4 million that will expire at various times through 2040. During the preparation of the 2025 consolidated financial statements, the Company identified an adjustment related to its 2024 income tax accounting footnote. Accordingly, the Company has adjusted the 2024 income tax footnote to reflect increases to both the deferred tax asset and the associated valuation allowance by approximately $ 34.8 million. This adjustment had no impact on the Company’s consolidated balance sheet, statement of operations, or statement of cash flows. A reconciliation of income taxes provided at the federal statutory rate to the actual income tax provision is as follows (in thousands): Year Ended December 31, 2025 2024 Income tax benefit computed at U.S. statutory rate $ ( 998 ) $ 359 Foreign taxes in excess of U.S. rates 79 — Amortization of intangible assets — ( 60 ) Change in fair value of warrant liabilities ( 6 ) ( 356 ) Change in state rate 846 — Valuation allowance changes affecting tax provision 106 62 Other ( 27 ) ( 5 ) Income tax provision $ — $ — Note 9. Stockholders’ Equity Exchangeable Shares and Preferred Stock As discussed in Note 1, on December 17, 2021, following the satisfaction of the closing conditions set forth in the Arrangement Agreement, the Arrangement was completed. Pursuant to the completion of the Arrangement, each Peraso Share that was issued and outstanding immediately prior to December 17, 2021 was converted into either newly issued shares of common stock of the Company or shares of Canco, which are exchangeable for shares of the Company’s common stock (Exchangeable Shares), at the election of each former Peraso Tech stockholder. Of the shares issued to the holders of Peraso Tech Shares, pursuant to the terms of the Agreement, the Company held in escrow an aggregate of 32,822 Exchangeable Shares and 12,564 shares of common stock (collectively, the Escrow Shares). The Escrow Shares are escrowed pursuant to the terms of an escrow agreement on a pro rata basis from the aggregate consideration received by the holders of Peraso Shares, subject to the offset by the Company for any losses in accordance with the Agreement. Such Escrow Shares shall be released, subject to any offset claim, upon the satisfaction of the earlier of: (a) any date following the first anniversary of December 17, 2021 and prior to December 17, 2024 where the volume weighted average price of the common stock for any 20 trading days within a period of 30 consecutive trading days is at least $ 342.80 per share, subject to further adjustment for stock splits or other similar transactions; (b) the date of any sale of all or substantially all of the assets or shares of the Company; or (c) the date of any bankruptcy, insolvency, restructuring, receivership, administration, wind-up, liquidation, dissolution, or similar event involving the Company. All and any voting rights and other stockholder rights, other than with respect to dividends and distributions, with respect to the Escrow Shares are suspended until the Escrow Shares are released from escrow. F- 24 The Exchangeable Share structure is commonly used for cross-border transactions of this nature so as to provide non-tax-exempt Canadian shareholders with the same economic rights and benefits as holders of the Company’s shares into which the Exchangeable Shares are exchangeable, while allowing those Canadian shareholders to benefit from the tax-rollover available on the issuance of the Exchangeable Shares. In general terms, by choosing to acquire Exchangeable Shares from Canco, such a former Peraso Tech shareholder was able to rely on a rollover rule in the Income Tax Act (Canada) in order to defer any capital gain that he/she/it would have otherwise realized. Callco was incorporated to exercise the call rights, while Canco was incorporated to acquire the shares of Peraso Tech from Canadian shareholders that wished to receive Exchangeable Shares as consideration, so it was a tax deferred transaction for such Canadian shareholders. The use of a separate entity, Callco, helps maximize cross border paid-up capital, which represents the amount that can generally be distributed free of Canadian withholding tax. The call rights also allow Callco to “purchase” the Exchangeable Shares rather than having them redeemed by Canco on a redemption or retraction or in connection with a liquidity event, thus avoiding the adverse deemed dividend tax consequences to shareholders that may arise from a redemption or retraction of Exchangeable Shares. Holders of Exchangeable Shares have the right at any time (the Retraction Right) to retract or redeem any or all of the Exchangeable Shares owned by them for an amount per share equal to the market price of a share of the Company’s common stock plus the full amount of all declared and unpaid dividends on such Exchangeable Share (the Exchangeable Share Purchase Price). The Exchangeable Share Purchase Price is payable only by the Company delivering or causing to be delivered to the relevant holder one share of the Company’s common stock for each Exchangeable Share purchased plus a cash amount equal to the amount of any accrued and unpaid dividends on such Exchangeable Share. The Company and Callco each have an overriding right, in the event that a holder of Exchangeable Shares exercises its Retraction Right, to redeem from such holder all, but not less than all, of the Exchangeable Shares tendered for redemption. The Exchangeable Shares are subject to redemption by the Company, Callco and Canco at the Exchangeable Share Purchase Price, on the “Redemption Date,” which date shall be no earlier than the seventh anniversary of the date on which Exchangeable Shares are first issued, unless: (a) less than 10 % of the aggregate number of Exchangeable Shares issued remain outstanding; (b) there is a change in control of the Company (defined generally as (i) any merger, amalgamation, arrangement, takeover bid or tender offer, material sale of shares or rights or interests that results in the holders of outstanding voting securities of the Company directly or indirectly owning, or exercising control or direction over, voting securities representing less than 50 % of the total voting power of all of the voting securities of the surviving entity; or (ii) any sale or disposition of all or substantially of the Company’s assets), and (c) upon the occurrence of certain other events. The Exchangeable Share Purchase Price is payable only by the Company delivering or causing to be delivered to the relevant holder one share of the Company’s common stock for each Exchangeable Share purchased plus a cash amount equal to the amount of any accrued and unpaid dividends on such Exchangeable Share. In the event of the liquidation, dissolution or winding-up of Canco, holders of Exchangeable Shares have the right to receive in respect of each Exchangeable Share held by such holder, an amount per share equal to the Exchangeable Share Purchase Price, which shall be satisfied in full by Canco by delivering to such holder one Company Share, plus an amount equal to the Dividend Amount. The Company and Callco each have an overriding right to purchase from all holders all but not less than all of the Exchangeable Shares upon the occurrence of such events. In addition, the Company and Callco have the right to purchase all outstanding Exchangeable Shares at the Exchangeable Share Purchase Price if there is a change of law that permits holders of Exchangeable Shares to exchange their Exchangeable Shares for shares of common stock on a basis that will not require holders to recognize any gain or loss or any actual or deemed dividend for Canadian tax purposes. The holders of Exchangeable Shares have an “automatic exchange right” in the event of any insolvency, liquidation, dissolution or winding-up or in general, related proceedings, of the Company for an amount per share equal to the Exchangeable Share Purchase Price. It is expected that Callco will exercise its call rights, as that is more beneficial to the holders of the Exchangeable Shares. Once Callco acquires the Exchangeable Shares from a holder, it (Callco and the Company) is obligated to deliver the Company shares to the holder. Callco discharges this obligation by arranging for the Company to issue and deliver those shares to the holders on behalf of Callco. As consideration for satisfying the delivery obligation, Callco would issue its own shares to the Company. F- 25 There are no cash redemption features, as all redemption and exchange scenarios are payable in a share of the Company’s common stock. Neither Canco, Callco, or the Company assume any tax liabilities of a former Peraso Tech shareholder who acquired Exchangeable Shares under the plan of arrangement. The purchase price computed upon the exercise of rights pertaining to retraction, redemption, or liquidation, or otherwise giving rise to a purchase or cancellation of an Exchangeable Share, will, in all cases, consist of a 1:1 exchange involving the Company’s common stock, regardless of the market price of a share of the Company’s common stock. In connection with the Arrangement, on December 15, 2021, the Company filed the Certificate of Designation of Series A Special Voting Preferred Stock (the Certificate) with the Secretary of State of the State of Delaware to designate Series A Special Voting Preferred Stock (the Special Voting Share) in accordance with the terms of the Arrangement Agreement in order to enable the holders of Exchangeable Shares to exercise their voting rights. The Special Voting Share was issued to a third-party administrative agent (the Agent) solely to facilitate the exercise of rights by holders of Exchangeable Shares. The rights of the Agent, as holder of the Special Voting Share, are limited to effecting the rights of the holders of the Exchangeable Shares; the Special Voting Share does not confer any independent rights to the Agent. Under the Certificate, when all of the Exchangeable Shares have been converted into shares of the Company’s common stock, the Special Voting Share shall be automatically cancelled and shall not be reissued. Each Exchangeable Share is exchangeable for one share of common stock of the Company and while outstanding, the Special Voting Share enables holders of Exchangeable Shares to cast votes on matters for which holders of the common stock are entitled to vote, and by virtue of the share terms relating to the Exchangeable Shares, enable the Exchangeable Shares to receive dividends that are economically equivalent to any dividends declared with respect to the shares of common stock. As the Special Voting Share does not participate in dividends (only the Exchangeable Shares participate in dividends) and is not entitled to participate in the residual interest of the Company, it is not classified as an equity instrument in the Company’s financial statements. The Exchangeable Shares, which can be converted into common stock at the option of the holder and have the same voting and dividend rights as common stock, are similar in substance to shares of common stock. Further, Canco and Callco are non-substantive entities, which are looked through with the Exchangeable Shares being, in substance, common stock of the Company. Therefore, the Exchangeable Shares have been included in the determination of outstanding common stock. The Special Voting Share was issued to a third-party administrative agent (the Agent) solely to facilitate the exercise of rights by holders of Exchangeable Shares. The rights of the Agent, as holder of the Special Voting Share, are limited to effecting the rights of the holders of the Exchangeable Shares; the Special Voting Share does not confer any independent rights to the Agent. Under the Certificate, when all of the Exchangeable Shares have been converted into shares of the Company’s common stock, the Special Voting Share shall be automatically cancelled and shall not be reissued. Reverse Stock Split As disclosed in Note 1, effective January 2, 2024, the Company effected a 1-for-40 reverse stock split of its outstanding common stock. February 2024 Public Offering On February 6, 2024, the Company entered into an underwriting agreement (the Underwriting Agreement) with Ladenburg Thalmann & Co. Inc. (Ladenburg), as the sole underwriter, relating to the issuance and sale in a public offering (the Offering) of: (i) 480,000 shares of common stock, (ii) pre-funded warrants to purchase up to 1,424,760 shares of common stock, (iii) Series A warrants to purchase up to 3,809,520 shares of common stock, (iv) Series B warrants to purchase up to 3,809,520 shares of common stock, and (v) up to 285,714 additional shares of common stock, Series A warrants to purchase up to 571,428 shares of common stock and Series B warrants to purchase up to 571,428 shares of common stock that may be purchased pursuant to a 45-day option to purchase additional securities granted to Ladenburg by the Company. Ladenburg partially exercised this option on February 7, 2024 for 82,500 shares of common stock, Series A warrants to purchase up to 165,000 shares of common stock and Series B warrants to purchase up to 165,000 shares of common stock. The combined public offering price of each share of common stock, together with the accompanying Series A warrants and Series B warrants, was $ 2.10 , less underwriting discounts and commissions. The combined public offering price of each pre-funded warrant, together with the accompanying Series A warrants and Series B warrants, was $ 2.099 , less underwriting discounts and commissions. The Offering, including the additional shares of common stock, Series A warrants and Series B warrants sold pursuant to the partial exercise of Ladenburg’s option, closed on February 8, 2024. F- 26 The net proceeds from the Offering, including the additional shares of common stock, Series A warrants and Series B warrants sold pursuant to the partial exercise of Ladenburg’s option, after deducting underwriting discounts and commissions and other estimated Offering expenses payable by the Company and excluding any proceeds from the exercise of the Series A warrants, Series B warrants and pre-funded warrants, were approximately $ 3.4 million. The Series A warrants have an exercise price of $ 2.25 , were immediately exercisable upon issuance, and expire on February 8, 2029 . The Series B warrants had an original exercise price of $ 2.25 per share, were immediately exercisable upon issuance, and expired on November 8, 2024 . The Series B warrants had an initial expiration date of August 8, 2024, which was extended to November 8, 2024 pursuant to amendments to the Warrant Agency Agreement dated as of February 8, 2024 by and between the Company and the warrant agent, Equiniti Trust Company, LLC (the Warrant Agency Agreement) (see Note 10). The pre-funded warrants have an exercise price of $ 0.001 per share, were exercisable immediately and may be exercised at any time until all of the pre-funded warrants are exercised in full. As of December 31, 2024, the holders exercised all of the pre-funded warrants for 1,424,760 shares of common stock. The exercise price and number of shares of common stock issuable upon exercise of the warrants is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting the common stock and the exercise price. Subject to limited exceptions, a holder may not exercise any portion of its warrants to the extent that the holder would beneficially own more than 9.99 % or 4.99 % (at the election of the holder) of the Company’s outstanding common stock after exercise. On February 8, 2024, pursuant to the Underwriting Agreement, the Company paid Ladenburg a cash fee of 9 % of the gross proceeds received from the Offering and issued Ladenburg and its designees warrants to purchase up to an aggregate of 139,108 shares of common stock at an exercise price of $ 2.625 , subject to adjustments, which were exercisable immediately and have substantially similar terms to the Series A warrants. June 2024 Private Sale In June 2024, the Company entered into a Stock Purchase Agreement (the Purchase Agreement) with a member of the Company’s board of directors, pursuant to which the Company sold and the board member purchased 100,000 shares (the Shares) of common stock resulting in net proceeds of $ 127,000 . The Shares sold pursuant to the Purchase Agreement were issued as restricted securities, as defined in Rule 144 of the Securities Act of 1933, as amended. Shares Issued for Services In January 2025, the Company issued 40,000 unregistered shares of common stock with a fair value of approximately $ 40,000 to a service provider. In December 2025, the Company issued 50,000 unregistered shares of common stock with a fair value of approximately $ 50,000 to a service provider. ATM Offering On August 30, 2024, the Company entered into an At The Market Offering Agreement (the Sales Agreement) with Ladenburg with respect to an “at the market” offering program, under which the Company may, from time to time, in its sole discretion, issue and sell through Ladenburg, acting as agent or principal, shares of the Company’s common stock. On November 21, 2025, the Company filed a prospectus supplement to increase the maximum number of shares of the Company’s common stock up to an aggregate of $ 3,150,000 of shares, which did not include the shares having an aggregate gross sales price of approximately $ 4,095,176 that had previously been sold under the Sales Agreement. The Sales Agreement provides that Ladenburg will be entitled to compensation for its services equal to 3.0 % of the gross proceeds from sales of any shares of common stock pursuant to the Sales Agreement in addition to the reimbursement of certain expenses. The Company has no obligation to sell any shares pursuant to the Sales Agreement and either the Company or Ladenburg may terminate the Sales Agreement in accordance with its terms. During the year ended December 31, 2024, the Company sold 251,621 shares of common stock for net proceeds of approximately $ 336,000 pursuant to the Sales Agreement. During the year ended December 31, 2025, the Company sold 3,713,939 shares of common stock for net proceeds of approximately $ 4,351,100 pursuant to the Sales Agreement. F- 27 Note 10. Warrants 2024 Warrant Inducement Offering On August 6, 2024, the Company extended the expiration date of the Series B warrants issued in the Offering to October 7, 2024, by entering into an amendment to the Warrant Agency Agreement. On October 3, 2024, the Company extended the expiration date of the Series B warrants to November 8, 2024, by entering into a further amendment to the Warrant Agency Agreement. On November 5, 2024, the Company entered into inducement offer letter agreements (the Inducement Letters) with certain holders (the Holders) of existing Series B warrants (the Existing Warrants) to purchase up to an aggregate of 2,246,030 shares of the Company’s common stock. Pursuant to the Inducement Letters, the Holders agreed to exercise for cash their Existing Warrants at a reduced exercise price of $ 1.30 per share in consideration for the Company’s agreement to issue in a private placement (i) new Series C common stock purchase warrants (the Series C Warrants) to purchase an aggregate of 2,246,030 shares of common stock and (ii) new Series D common stock purchase warrants (the Series D Warrants) to purchase an aggregate of 2,246,030 shares of common stock. The Series C Warrants have an exercise price of $ 1.61 per share, were exercisable upon issuance and originally expired on the six-month anniversary of the date of issuance. The Series D Warrants have an exercise price of $ 1.61 per share, were exercisable upon issuance and expire on the five-year anniversary of the date of issuance. The expiration date of the Series C Warrants was subsequently extended pursuant to amendments, as described below. The warrant inducement offering closed on November 6, 2024. Upon exercise of the Existing Warrants, the Company issued 1,328,650 shares of its common stock while the remaining 917,380 shares (the Issuable Shares) remained under abeyance, pending issuance instructions from the Holders, pursuant to the terms of the Inducement Letters. The Company accounted for the issuance of the: i) shares of its common stock, ii) the Series C Warrants, iii) the Series D Warrants, and iv) the remaining Issuable Shares as a single equity transaction for gross proceeds of approximately $ 2.92 million. The fair value of the unissued Issuable Shares at each balance sheet date has been presented separately as issuable shares on the consolidated balance sheets and statements of stockholders’ equity. As of December 31, 2025, all of the Issuable Shares with a fair value of $ 1.2 million had been issued and no shares remained under abeyance. In relation to the above warrant inducement offering, the Company engaged Ladenburg as placement agent and paid cash compensation of 9 % of the gross proceeds. In addition, the Company issued Ladenburg and its designees warrants to purchase up to an aggregate of 157,223 shares of common stock at an exercise price of $ 1.625 , which were exercisable upon issuance, expire on the five-year anniversary of the date of issuance, and other than the foregoing terms, have substantially similar terms to the Series C Warrants. Amendments to Series C Warrants On May 2, 2025, the Company extended the expiration date of its Series C Warrants to purchase an aggregate of 2,246,030 shares of common stock from May 6, 2025 to August 4, 2025, by entering into an amendment with each holder of the Series C Warrants. On August 4, 2025, the Company extended the expiration date of its outstanding Series C Warrants to purchase an aggregate of 2,246,030 shares of common stock from August 4, 2025 to December 5, 2025, by entering into a second amendment with each holder of the Series C Warrants. On December 5, 2025, the Company extended the expiration date of its outstanding Series C Warrants to purchase an aggregate of 2,246,030 shares of common stock from December 5, 2025 to January 7, 2026, by entering into a third amendment with each holder of the Series C Warrants. F- 28 2025 Warrant Inducement Offering On September 11, 2025, the Company entered into an inducement offer letter agreement (the 2025 Inducement Letter) with a holder (the Series C Holder) of Series C Warrants to purchase up to an aggregate of 952,380 shares of common stock. Pursuant to the 2025 Inducement Letter, the Series C Holder agreed to exercise for cash its Series C Warrants at a reduced exercise price of $ 1.18 per share in consideration for the Company’s agreement to issue in a private placement new Series E common stock purchase warrants (the Series E Warrants) to purchase an aggregate of 952,380 shares of common stock. The Series E Warrants have an exercise price of $ 1.25 per share, will be exercisable upon the six-month anniversary of the date of issuance and will have a term of exercise of 5.5 years from the initial exercise date. The warrant inducement offering closed on September 12, 2025. Upon exercise of the Series C Warrants, the Company issued 115,000 shares of common stock while the remaining 837,380 shares (the 2025 Issuable Shares) remained under abeyance, pending issuance instructions from the Series C Holder, pursuant to the terms of the 2025 Inducement Letter. The Company accounted for the issuance of the: i) shares of common stock, ii) the Series E Warrants and iii) the remaining 2025 Issuable Shares as a single equity transaction for gross proceeds of approximately $ 1.1 million. The fair value of the unissued 2025 Issuable Shares has been presented separately as issuable shares on the consolidated balance sheets and statements of stockholders’ equity. As of December 31, 2025, 700,000 shares of the Issuable Shares with a fair value of $ 0.8 million had been issued and 137,380 shares with a fair value of $ 0.2 million remained under abeyance. In relation to the above warrant inducement offering, the Company engaged Ladenburg as placement agent and paid cash compensation of 9 % of the gross proceeds. In addition, the Company issued Ladenburg and its designees warrants to purchase up to an aggregate of 66,667 shares of common stock at an exercise price of $ 1.475 , which will be exercisable on the six-month anniversary of the date of issuance, expire on the five-year anniversary of the date of issuance, and include piggyback registration rights that are triggered if there is not an effective registration statement covering the resale of all of the shares issuable upon the exercise of the warrants while the warrants are outstanding. The remaining material terms of the warrants issued to Ladenburg and its designees are substantially similar to those of the Series E Warrants. Warrants Classified as Liabilities The securities purchase agreements governing warrants issued in registered direct offerings completed in November 2022 and June 2023 (collectively, the Purchase Warrants) provide for a value calculation for such warrants using the Black-Scholes model in the event of certain fundamental transactions. The fair value calculation provides for a floor on the volatility amount utilized in the value calculation at 100 % or greater. The Company has determined this provision introduces leverage to the holders of the Purchase Warrants that could result in a value that would be greater than the settlement amount of a fixed-for-fixed option on the Company’s own equity shares. Therefore, pursuant to ASC 815, the Company has classified the Purchase Warrants as liabilities in its consolidated balance sheet. The classification of the Purchase Warrants, including whether the Purchase Warrants should be recorded as liabilities or as equity, is evaluated at the end of each reporting period with changes in the fair value reported in other income (expense) in the consolidated statements of operations. As of December 31, 2025, the Company had the following liability-classified warrants outstanding (share amounts in thousands): Number of Shares Exercise Price Expiration Date Warrants issued - November 2022 92 $ 40.00 May 29, 2028 Warrants issued - June 2023 143 $ 28.00 June 2, 2028 235 F- 29 The following table sets forth changes in the fair value of the Purchase Warrants outstanding (amounts in thousands): Number of warrants on common shares Amount Balance as of December 31, 2023 235 $ 1,748 Change in fair value of warrants — ( 1,693 ) Balance as of December 31, 2024 235 55 Change in fair value of warrants — ( 31 ) Balance as of December 31, 2025 235 $ 24 The outstanding liability-classified warrants had no intrinsic value at December 31, 2025. The fair value of the Purchase Warrants at December 31, 2025 was determined using the Black-Scholes model with the assumptions in the following table. The table also includes the total fair value determined as of December 31, 2025 based on these assumptions. 2022 Purchase Warrant 2023 Purchase Warrant Expected term based on contractual term 2.4 years 2.4 years Interest rate (risk-free rate): 3.71 % 3.71 % Expected volatility 129 % 129 % Expected dividend — — Fair value of warrants (in thousands) $ 11 $ 13 The fair value of the Purchase Warrants at December 31, 2024 was determined using the Black-Scholes model with the assumptions in the following table. The table also includes the total fair value determined at December 31, 2024 based on these assumptions. 2022 Purchase Warrant 2023 Purchase Warrant Expected term based on contractual term 3.4 years 3.4 years Interest rate (risk-free rate): 4.38 % 4.38 % Expected volatility 115 % 117 % Expected dividend — — Fair value of warrants (in thousands) $ 25 $ 30 F- 30 Warrants Classified as Equity As of December 31, 2025, the Company had the following equity-classified warrants outstanding (share amounts in thousands): Warrant Type Number of Shares Exercise Price Expiration Common stock warrants 7 $ 28.00 June 2, 2028 Series A warrants issued 3,975 $ 2.250 February 8, 2029 Series A warrants issued 139 $ 2.625 February 8, 2029 Series C warrants issued 2,246 $ 1.610 January 7, 2026 Series C warrants exercised ( 952 ) $ 1.610 — Series C warrants issued 157 $ 1.625 November 6, 2029 Series D warrants issued 2,246 $ 1.610 November 6, 2029 Series E warrants issued 952 $ 1.250 September 12, 2031 Series E warrants issued 67 $ 1.475 September 12, 2030 Balance as of December 31, 2025 8,837 The outstanding equity-classified warrants had no intrinsic value at December 31, 2025. Note 11. Stock-Based Compensation Common Stock Equity Plans In 2010, the Company adopted the 2010 Equity Incentive Plan and later amended it in 2014, 2017 and 2018 (the Amended 2010 Plan). The Amended 2010 Plan was terminated in August 2019 and remains in effect as to outstanding equity awards granted prior to the date of expiration. No new awards may be made under the Amended 2010 Plan. In August 2019, the Company’s stockholders approved the 2019 Stock Incentive Plan (the 2019 Plan) to replace the Amended 2010 Plan. The 2019 Plan authorizes the board of directors or the compensation committee of the board of directors to grant a broad range of awards including stock options, stock appreciation rights, restricted stock, performance-based awards, and restricted stock units. Under the 2019 Plan, 4,563 shares were initially reserved for issuance. In November 2021, December 2024 and December 2025, the Company’s stockholders approved amendments increasing the number of shares reserved for issuance under the 2019 Plan by 77,674 , 1,500,000 and 1,000,000 shares, respectively. Under the 2019 Plan, the term of all incentive stock options granted to a person who, at the time of grant, owns stock representing more than 10 % of the voting power of all classes of the Company’s stock may not exceed five years . The exercise price of stock options granted under the 2019 Plan must be at least equal to the fair market value of the shares on the date of grant. Generally, awards under the 2019 Plan will vest over a three to four-year period, and options will have a term of 10 years from the date of grant. In addition, the 2019 Plan provides for automatic acceleration of vesting for options granted to non-employee directors upon a change of control of the Company. In December 2021, the Company assumed the Peraso Technologies Inc. 2009 Share Option Plan (the 2009 Plan) and all outstanding options granted pursuant to the terms of the 2009 Plan. Each outstanding, unexercised and unexpired option under the 2009 Plan, whether vested or unvested, was assumed by the Company and converted into options to purchase shares of the Company’s common stock and became exercisable by the holder of such option in accordance with its terms. No further awards will be made under the 2009 Plan. The 2009 Plan, the Amended 2010 Plan and the 2019 Plan are referred to collectively as the “Plans.” F- 31 Stock-Based Compensation Expense The Company reflected compensation costs related to the vesting of stock options of approximately $ 488,600 and $ 2.8 million during the years ended December 31, 2025 and 2024, respectively. At December 31, 2025, the unamortized compensation cost was approximately $ 0.6 million related to stock options and is expected to be recognized as expense over a weighted average period of approximately 2.0 years. The Company reflected compensation costs of approximately $ 32,500 and $ 0.8 million related to the vesting of restricted stock units during the years ended December 31, 2025 and 2024, respectively. The unamortized compensation cost at December 31, 2025 was approximately $ 2,000 related to restricted stock units and is expected to be recognized as expense over a weighted average period of less than 1.0 year. No stock options were granted or exercised during the year ended December 31, 2024. Valuation Assumptions and Expense Information for Stock-Based Compensation The fair value of the Company’s share-based payment awards granted during the year ended December 31, 2025 was estimated on the grant dates using the Black-Scholes model with the following assumptions: Option Grants Grant Date 02/11/25 08/07/25 Interest rate (risk-free rate) 4.34 % 3.79 % Expected volatility 119 % 118 % Expected term 4.38 years 4.75 years Expected dividend 0 % 0 % Fair value (in thousands) $ 832 $ 69 The risk-free interest rate was derived from the U.S. Treasury Yield Curve Rates as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. The expected volatility was based on the historical volatility of the Company’s stock price over the expected term of the options. The expected term of options granted was derived from historical data based on employee exercises and post-vesting employment termination behavior. A dividend yield of zero is applied because the Company has never paid dividends and has no intention to pay dividends in the near future. The Company accounts for forfeitures as they occur. Common Stock Options and Restricted Stock The term of all incentive stock options granted to a person who, at the time of grant, owns stock representing more than 10 % of the voting power of all classes of the Company’s stock may not exceed five years. The exercise price of stock options granted under the 2019 Plan must be at least equal to the fair market value of the shares on the date of grant. Generally, options granted under the 2019 Plan will vest over a three to four-year period and have a term of 10 years from the date of grant. In addition, the 2019 Plan provides for automatic acceleration of vesting for options granted to non-employee directors upon a change of control (as defined in the 2019 Plan) of the Company. F- 32 The following table summarizes the activity in the shares available for grant under the Plans during the years ended December 31, 2025 and 2024 and options outstanding as of December 31, 2025 and 2024 (in thousands, except exercise price): Options Outstanding Weighted Shares Average Available Number of Exercise for Grant Shares Prices Balance as of December 31, 2023 39 36 $ 127.00 Additional shares authorized under the 2019 Plan 1,500 — — RSUs granted ( 2 ) — — RSUs cancelled and returned to the 2019 Plan 7 — — Options cancelled — ( 6 ) $ 110.88 Balance as of December 31, 2024 1,544 30 $ 130.14 Additional shares authorized under the 2019 Plan 1,000 — — RSUs granted ( 2 ) — — RSUs cancelled and returned to the 2019 Plan 1 — — Options granted ( 1,450 ) 1,450 $ 0.78 Options exercised — ( 37 ) $ 0.78 Options cancelled and returned to the 2019 Plan 96 ( 96 ) $ 0.78 Balance as of December 31, 2025 1,189 1,347 $ 3.34 The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2025 (in thousands, except contractual life and exercise price): Options Outstanding Options Exercisable Weighted Average Remaining Weighted Weighted Contractual Average Average Aggregate Number Life Exercise Number Exercise Intrinsic Range of Exercise Price Outstanding (in Years) Price Exercisable Price value $ 0.00 - $ 1.00 1,317 9.16 $ 0.78 326 $ 0.78 $ 31 $ 1.01 - $ 62.90 2 3.89 $ 62.80 2 $ 62.80 $ — $ 62.81 - $ 599.60 28 4.93 $ 110.17 28 $ 110.17 $ — $ 0.00 - $ 599.60 1,347 9.06 $ 3.34 356 $ 10.44 $ 31 F- 33 A summary of RSU activity under the Plans is presented below (in thousands, except for fair value): Weighted Average Number of Grant-Date Shares Fair Value Non-vested shares as of December 31, 2023 15 $ 69.63 Granted 2 $ 1.55 Vested ( 12 ) $ 1.24 Cancelled ( 3 ) $ 63.10 Non-vested shares as of December 31, 2024 2 $ 37.69 Granted 2 $ 1.00 Vested ( 3 ) $ 15.40 Cancelled ( 1 ) $ 65.20 Non-vested shares as of December 31, 2025 — Note 12. Related Party Transactions A family member of one of the Company’s executive officers is an employee of the Company. During the years ended December 31, 2025 and 2024, the Company paid the family member approximately $ 129,300 and $ 113,800 , respectively, which includes the aggregate grant date fair values, as determined pursuant to FASB ASC Topic 718, of any stock options during each period. Note 13. Memory IC Product End-of-Life Taiwan Semiconductor Manufacturing Corporation, the sole foundry that manufactured the wafers used to produce the Company’s memory IC products, discontinued the foundry process used to produce such wafers. As a result, the Company commenced an end-of-life (EOL) of its memory products in 2023. In March 2025, the Company fulfilled all then-outstanding EOL orders for its memory IC products. Since March 2025, the Company received additional purchase orders totaling approximately $ 452,800 from customers for remaining inventory. The Company recorded approximately $ 72,200 and $ 380,600 of product revenue from these purchase orders during the three months ended September 30, 2025 and the three months ended December 31, 2025, respectively. Note 14. Subsequent Events Issuance of Common Stock under ATM Offering Program Subsequent to December 31, 2025, the Company sold 2,371,943 shares of common stock for net proceeds of approximately $ 2,303,000 pursuant to the Sales Agreement (see Note 9). F- 34