UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 20-F





(Mark One)



|☐ |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
|- |  | ------------------------------------------------------------------------------------------------



or



|☒ |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- |  | ------------------------------------------------------------------------------------



Special Financial Report Pursuant to Rule 15d-2
of the Securities Act of 1934, as amended, reporting Financial Statements for the fiscal year ended December 31, 2022



or



|☐ |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- |  | ----------------------------------------------------------------------------------------

or



|☐ |  | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- |  | --------------------------------------------------------------------------------------------



For the transition period from _____________________
to _____________________.



Commission file number: 001-41709





SEALSQ CORP

(Exact name of Registrant as specified in its
charter)





|British Virgin Islands                         
|-----------------------------------------------
|(Jurisdiction of incorporation or organization)



Avenue Louis-Casaï 58
1216 Cointrin, Switzerland

(Address of principal executive offices)





Peter Ward

Chief Financial Officer

SEALSQ Corp

Craigmuir Chambers, Road Town

Tortola, British Virgin Islands 1110

Tel: 011-41-22-594-3000

Fax: 011-41-22-594-3001

(Name, Telephone, E-mail and/or Facsimile
number and Address of Company Contact Person)



Copies to:



Herman H. Raspé, Esq.
Patterson Belknap Webb & Tyler LLP

1133 Avenue of the Americas
New York, New York 10036
Tel: (212) 336-2000





Securities registered or to be registered pursuant
to Section 12(b) of the Act.*



|Title of each class                          |  | Trading Symbols |  | Name of each exchange and on which registered
|-------------------------------------------- |  | --------------- |  | ---------------------------------------------
|Ordinary Shares, US$0.01 par value per share |  | LAES            |  | The Nasdaq Stock Market LLC                  



*Registered pursuant to Section 12(b) of the
Act as of May 18, 2023.



Securities registered or to be registered pursuant
to Section 12(g) of the Act: None



Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act: None



Indicate the number of outstanding shares of each
of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 100 Ordinary Shares
as of December 31, 2022



Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒



If this report is an annual or transition report,
indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or (15)(d) of the Securities Exchange
Act of 1934. Yes ☐ No ☒



Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes ☒ No ☐



Indicate by check mark whether the
registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to
submit such files). Yes ☒ No ☐



Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "accelerated
filer," "large accelerated filer" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):



|Large Accelerated Filer ☐ |  | Accelerated Filer ☐ |  | Non-Accelerated Filer ☐  
|------------------------- |  | ------------------- |  | -------------------------
|                          |  |                     |  | Emerging Growth Company ☒



If an emerging growth company
that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use
the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section
13(a) of the Exchange Act. ☐



† The term "new
or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting
Standards Codification after April 5, 2012.



Indicate by check mark
whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report. ☐



If securities are registered
pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. ☐



Indicate by check mark whether
any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the
registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐



Indicate by check mark which
basis of accounting the registrant has used to prepare the financial statements included in this filing:



|U.S. GAAP ☒ |  | International Financial Reporting Standards
as issued by the International Accounting Standards Board ☐ |  | Other ☐
|----------- |  | ------------------------------------------------------------------------------------------------------- |  | -------

If "Other" has been
checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 ☐ Item 18 ☐



If this is an annual
report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐
No ☒



(APPLICABLE ONLY TO ISSUERS
INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)



Indicate by check mark whether
the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of
1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐













EXPLANATORY NOTE



On March 29, 2023, the
Securities and Exchange Commission (the “SEC”) declared effective the Registration Statement on Form F-1 (SEC File
No. 333-269710) (“Form F-1 Registration Statement”) of SEALSQ Corp, a company with limited liability organized under the law
of the British Virgin Islands.



Rule 15d-2 (“Rule
15d-2”) under the Securities Exchange Act of 1934, as amended, provides generally that if a company’s registration statement
under the Securities Act of 1933, as amended, does not contain certified financial statements for the company’s last full fiscal
year preceding the year in which the registration statement becomes effective then the company must, within the later of 90 days after
the effective date of the registration statement or four months following the end of the registrant’s latest full fiscal year, file
a special financial report furnishing certified financial statements for the last full fiscal year, meeting the requirements of the form
appropriate for annual reports of that company. Rule 15d-2 further provides that the special financial report is to be filed under cover
of the facing sheet of the form appropriate for annual reports of the company.



As contemplated by
Rule 15d-2, SEALSQ Corp is hereby filing the certified financial statements of WISeKey Semiconductors SAS, the SEALSQ Corp
Predecessor, with the SEC under cover of the facing page of an annual report on Form 20-F.













Consolidated Financial Statements

of WISeKey Semiconductors SAS,

SEALSQ Corp Predecessor



As at December
31, 2022



The page numbers below refer only to the F pages
of the annual report.



|1.   Report of the Independent Registered Public Accounting Firm | F-2
|---------------------------------------------------------------- | ---
|2.   Consolidated Statements of Comprehensive Income/(Loss)      | F-3
|3.   Consolidated Balance Sheets                                 | F-4
|4.   Consolidated Statements of Changes in Shareholders’ Equity  | F-5
|5.   Consolidated Statements of Cash Flows                       | F-6
|6.   Notes to the Consolidated Financial Statements              | F-7













| | Tél. : 04 72
61 05 76

www.bdo.fr | 28 rue de la République

69002 LYON
| | --------------------------------- | -----------------------------------









| | 1. | Report of the Independent Registered Public Accounting Firm
| | -- | -----------------------------------------------------------



Report of Independent Registered
Public Accounting Firm



Shareholders and Board of Directors

WISeKey Semiconductors
SAS -Arteparc de Bachasson, Bâtiment A, rue de la Carrière de Bachasson

13590 Meyreuil
- FRANCE



Opinion
on the Consolidated Financial Statements



We have audited
the accompanying consolidated balance sheets of WISeKey Semiconductors SAS Group (the “Company”) as of December 31, 2022
and 2021, the related consolidated statements of comprehensive income/loss, stockholders’ equity, and cash flows for each of 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 at December 31,
2022 and 2021, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles
generally accepted in the United States of America.



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 audit. 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.



Lyon (France), April 20, 2023

BDO Rhône-Alpes



/s/ Justine GAIRAUD

Represented by Justine GAIRAUD

We have served as the Company's auditor since 2016.







|Siège
                         social : BDO Rhône-Alpes – Le Pixel – 10bis avenue des FTPF - 38130 Echirolles



SAS
au capital de 3 000 000 Euros - SIREN 061 500 542 RCS Grenoble - N°TVA Intracommunautaire FR 720 615 00542

Société
d’Expertise Comptable inscrite au Tableau de l’Ordre de la Région AURA



Société
de Commissaires aux Comptes Compagnie Régionale Dauphiné Savoie | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 















|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------









| | 2. | Consolidated Statements of Comprehensive Income/(Loss)
| | -- | ------------------------------------------------------



|                                                 |  | 12 months ended December 31, |         |     
|------------------------------------------------ |  | ---------------------------- | ------- | ----
|USD'000                                          |  | 2022                         |         | 2021
|                                                 |  |                              |         |     
|Net sales                                        |  |                              | 23,198  |     
|Cost of sales                                    |  |                              | (13,267 | )   
|Depreciation of production assets                |  |                              | (132    | )   
|Gross profit                                     |  |                              | 9,799   |     
|                                                 |  |                              |         |     
|Other operating income                           |  |                              | 2,007   |     
|Research & development expenses                  |  |                              | (2,308  | )   
|Selling & marketing expenses                     |  |                              | (3,824  | )   
|General & administrative expenses                |  |                              | (3,091  | )   
|Total operating expenses                         |  |                              | (7,216  | )   
|Operating income / (loss)                        |  |                              | 2,583   |     
|                                                 |  |                              |         |     
|Non-operating income                             |  |                              | 935     |     
|Interest and amortization of debt discount       |  |                              | (355    | )   
|Non-operating expenses                           |  |                              | (638    | )   
|Income / (loss) before income tax expense        |  |                              | 2,525   |     
|                                                 |  |                              |         |     
|Income tax income (expense)                      |  |                              | 3,245   |     
|                                                 |  |                              |         |     
|Net income / (loss)                              |  |                              | 5,770   |     
|                                                 |  |                              |         |     
|Earnings per share (USD)                         |  |                              |         |     
|Basic                                            |  |                              | 3.92    |     
|Diluted                                          |  |                              | 3.92    |     
|                                                 |  |                              |         |     
|Other comprehensive income / (loss), net of tax: |  |                              |         |     
|Foreign currency translation adjustments         |  |                              | (15     | )   
|Defined benefit pension plans:                   |  |                              |         |     
|Net gain (loss) arising during period            |  |                              | 170     |     
|Other comprehensive income / (loss)              |  |                              | 155     |     
|Comprehensive income / (loss)                    |  |                              | 5,925   |     



The accompanying notes are an integral part of
these consolidated financial statements.





F-3









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | 3. | Consolidated Balance Sheets
| | -- | ---------------------------



|                                                                 |  | As at December 31, |         | As at December 31, |  |          
|---------------------------------------------------------------- |  | ------------------ | ------- | ------------------ |  | ---------
|USD'000, "except par value"                                      |  | 2022               |         | 2021               |  | Note ref.
|ASSETS                                                           |  |                    |         |                    |  |          
|Current assets                                                   |  |                    |         |                    |  |          
|Cash and cash equivalents                                        |  |                    | 4,057   |                    |  |          
|Accounts receivable, net of allowance for doubtful accounts      |  |                    | 2,219   |                    |  |          
|Inventories                                                      |  |                    | 7,510   |                    |  |          
|Prepaid expenses                                                 |  |                    | 394     |                    |  |          
|Other current assets                                             |  |                    | 1,252   |                    |  |          
|Total current assets                                             |  |                    | 15,432  |                    |  |          
|                                                                 |  |                    |         |                    |  |          
|Noncurrent assets                                                |  |                    |         |                    |  |          
|Deferred income tax assets                                       |  |                    | 3,296   |                    |  |          
|Deferred tax credits                                             |  |                    | 692     |                    |  |          
|Property, plant and equipment net of accumulated depreciation    |  |                    | 782     |                    |  |          
|Intangible assets, net of accumulated amortization               |  |                    | 1       |                    |  |          
|Operating lease right-of-use assets                              |  |                    | 1,379   |                    |  |          
|Other noncurrent assets                                          |  |                    | 77      |                    |  |          
|Total noncurrent assets                                          |  |                    | 6,227   |                    |  |          
|TOTAL ASSETS                                                     |  |                    | 21,659  |                    |  |          
|                                                                 |  |                    |         |                    |  |          
|LIABILITIES                                                      |  |                    |         |                    |  |          
|Current Liabilities                                              |  |                    |         |                    |  |          
|Accounts payable                                                 |  |                    | 6,735   |                    |  |          
|Indebtedness to related parties, current                         |  |                    | 3,374   |                    |  |          
|Current portion of obligations under operating lease liabilities |  |                    | 324     |                    |  |          
|Income tax payable                                               |  |                    | 47      |                    |  |          
|Other current liabilities                                        |  |                    | 148     |                    |  |          
|Total current liabilities                                        |  |                    | 10,628  |                    |  |          
|                                                                 |  |                    |         |                    |  |          
|Noncurrent liabilities                                           |  |                    |         |                    |  |          
|Bonds, mortgages and other long-term debt                        |  |                    | 1,489   |                    |  |          
|Operating lease liabilities, noncurrent                          |  |                    | 988     |                    |  |          
|Indebtedness to related parties, noncurrent                      |  |                    | 7,946   |                    |  |          
|Employee benefit plan obligation                                 |  |                    | 396     |                    |  |          
|Total noncurrent liabilities                                     |  |                    | 10,819  |                    |  |          
|TOTAL LIABILITIES                                                |  |                    | 21,447  |                    |  |          
|                                                                 |  |                    |         |                    |  |          
|                                                                 |  |                    |         |                    |  |          
|Commitments and contingent liabilities                           |  |                    |         |                    |  |          
|                                                                 |  |                    |         |                    |  |          
|SHAREHOLDERS' EQUITY                                             |  |                    |         |                    |  |          
|Common stock                                                     |  |                    | 1,955   |                    |  |          
|EUR 1 par value                                                  |  |                    |         |                    |  |          
|Authorized - 1,473,162 and 1,298,162 shares                      |  |                    |         |                    |  |          
|Issued and outstanding - 1,473,162 and 1,298,162 shares          |  |                    |         |                    |  |          
|Additional paid-in capital                                       |  |                    | 14,926  |                    |  |          
|Accumulated other comprehensive income / (loss)                  |  |                    | 775     |                    |  |          
|Accumulated deficit                                              |  |                    | (17,444 | )                  |  |          
|Total shareholders' equity                                       |  |                    | 212     |                    |  |          
|TOTAL LIABILITIES AND EQUITY                                     |  |                    | 21,659  |                    |  |          



The accompanying notes are an integral part of
these consolidated financial statements.





F-4









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | 4. | Consolidated Statements of Changes in Shareholders’ Equity
| | -- | ----------------------------------------------------------



|USD'000                                               |  | Number of
    common shares |           | Common Share
    Capital |  | Additional
    paid-in capital |       | Accumulated
    deficit |  | Accumulated
    other comprehensive income / (loss) |        | Total
    equity (deficit)
|----------------------------------------------------- |  | --------------------------- | --------- | ------------------------ |  | ------------------------------ | ----- | ----------------------- |  | --------------------------------------------------- | ------ | --------------------------
|As
    at December 31, 2020                           |  |                             | 1,298,162 |                          |  |                                | 1,772 |                         |  |                                                     | 6,755  |                           
|Indebtedness to related parties                       |  |                             | —         |                          |  |                                | —     |                         |  |                                                     | 503    |                           
|Comprehensive income / (loss)                         |  |                             | —         |                          |  |                                | —     |                         |  |                                                     | —      |                           
|As at December
    31, 2021                           |  |                             | 1,298,162 |                          |  |                                | 1,772 |                         |  |                                                     | 7,258  |                           
|Recapitalization by WISeKey International Holding Ltd |  |                             | 175       |                          |  |                                | 183   |                         |  |                                                     | 7,165  |                           
|LT loan debt discount                                 |  |                             | —         |                          |  |                                | —     |                         |  |                                                     | 511    |                           
|Indebtedness to related parties                       |  |                             | —         |                          |  |                                | —     |                         |  |                                                     | (8     | )                         
|Comprehensive income / (loss)                         |  |                             | —         |                          |  |                                | —     |                         |  |                                                     | —      |                           
|As at December
    31, 2022                           |  |                             | 1,473,162 |                          |  |                                | 1,955 |                         |  |                                                     | 14,926 |                           
|(a)  Adjusted for rounding                            |  |                             |           |                          |  |                                |       |                         |  |                                                     |        |                           



The Recapitalization by WISeKey International
Holding Ltd that occurred in 2022 is further detailed in Note 18.



The accompanying notes are an integral part of
these consolidated financial statements.





F-5









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | 5. | Consolidated Statements of Cash Flows
| | -- | -------------------------------------



|                                                                                            |  | 12 months ended December 31, |       
|------------------------------------------------------------------------------------------- |  | ---------------------------- | ------
|USD'000                                                                                     |  | 2022                         |       
|                                                                                            |  |                              |       
|Cash Flows from operating activities:                                                       |  |                              |       
|Net Income (loss)                                                                           |  |                              | 5,770 
|Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |                              |       
|Depreciation of property, plant & equipment                                                 |  |                              | 404   
|Amortization of intangible assets                                                           |  |                              | 4     
|Interest and amortization of debt discount                                                  |  |                              | 355   
|Inventory obsolescence impairment                                                           |  |                              | 554   
|Income tax expense / (recovery) net of cash paid                                            |  |                              | (3,250
|Release of provision                                                                        |  |                              | —     
|Other non cash expenses /(income)                                                           |  |                              |       
|Expenses accrued under noncurrent liabilities                                               |  |                              | 882   
|Unrealized and non cash foreign currency transactions                                       |  |                              | —     
|Other                                                                                       |  |                              | —     
|                                                                                            |  |                              |       
|Changes in operating assets and liabilities, net of effects of businesses acquired          |  |                              |       
|Decrease (increase) in accounts receivables                                                 |  |                              | 387   
|Decrease (increase) in inventories                                                          |  |                              | (5,354
|Decrease (increase) in other current assets and prepaids, net                               |  |                              | (778  
|Decrease (increase) in deferred research & development tax credits, net                     |  |                              | 154   
|Decrease (increase) in other noncurrent assets, net                                         |  |                              | 5     
|Increase (decrease) in accounts payable                                                     |  |                              | (521  
|Increase (decrease) in deferred revenue, current                                            |  |                              | —     
|Increase (decrease) in income taxes payable                                                 |  |                              | 44    
|Increase (decrease) in other current liabilities                                            |  |                              | (31   
|Increase (decrease) in defined benefit pension liability                                    |  |                              | (179  
|Net cash provided by (used in) operating activities                                         |  |                              | (1,554
|                                                                                            |  |                              |       
|Cash Flows from investing activities:                                                       |  |                              |       
|Sale / (acquisition) of property, plant and equipment                                       |  |                              | (299  
|Acquisition of a business, net of cash and cash equivalents acquired                        |  |                              | —     
|Net cash provided by (used in) investing activities                                         |  |                              | (299  
|                                                                                            |  |                              |       
|Cash Flows from financing activities:                                                       |  |                              |       
|Proceeds from debt                                                                          |  |                              | 3,750 
|Repayments of debt                                                                          |  |                              | —     
|Net cash provided by (used in) financing activities                                         |  |                              | 3,750 
|                                                                                            |  |                              |       
|Effect of exchange rate changes on cash and cash equivalents                                |  |                              | 96    
|                                                                                            |  |                              |       
|Cash and cash equivalents                                                                   |  |                              |       
|Net increase (decrease) during the period                                                   |  |                              | 1,993 
|Balance, beginning of period                                                                |  |                              | 2,064 
|Balance, end of period                                                                      |  |                              | 4,057 
|                                                                                            |  |                              |       
|                                                                                            |  |                              |       
|Supplemental cash flow information                                                          |  |                              |       
|Cash paid for incomes taxes                                                                 |  |                              | 4     
|Recapitalization by WISeKey International Holding Ltd                                       |  |                              | 7,348 
|ROU assets obtained from operating lease                                                    |  |                              | 56    



The accompanying notes are an integral part of these
consolidated financial statements.



F-6











|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | 6. | Notes to the Consolidated Financial Statements
| | -- | ----------------------------------------------



| | Note |  | 1.The Semiconductors Group
| | ---- |  | --------------------------



WISeKey Semiconductors SAS, together with its
consolidated subsidiaries (the “Group” or the “Semiconductors Group”), has its headquarters in
France. WISeKey Semiconductors SAS, the parent of the Semiconductors Group, was incorporated in July 2010 and is a private joint stock
company (French Simplified Joint Stock Company).



In 2020, the Group acquired WISeCoin France R&D
Lab SAS, a private French company which was spun off from the Group in 2019. The primary activity of WISeCoin France R&D Lab SAS
is to carry out research and development on hardware and software components of semiconductors and integrated circuits with a focus on
authentication and security solutions. On January 1, 2021, WISeCoin France R&D Lab SAS’ assets and liabilities were transferred
to WISeKey Semiconductors SAS and WISeCoin France R&D Lab SAS was dissolved.



The Group designs, develops and markets secure
semiconductors worldwide as a fabless manufacturer. It provides added security and authentication layers on its semiconductors which
can be tailored to customers’ needs. As an advanced chip designer, the Group holds the intellectual property (“IP”)
for the semiconductors it sells.



The Group anticipates being able to generate profits
in the near future thanks to the increased focus on the security and authentication of IT components and networks.



| | Note |  | 2.Future operations and going concern
| | ---- |  | -------------------------------------



The Group recorded an income from operations in
this reporting period and the accompanying consolidated financial statements have been prepared assuming that the Group will continue
as a going concern.





The Group recorded a net operating income of USD 2.6
million in the year ended December 31, 2022 and a net operating loss of USD 5.0 million in the year ended December 31, 2021,
and had positive working capital of, respectively, USD 6.2 million and USD 0.5 million as at December 31, 2022
and 2021, both calculated as the difference between current assets and current liabilities. Based on the Group’s cash projections
up to April 30, 2024, it has sufficient liquidity to fund operations. Historically, the Group has been dependent on financing from its
parent, WISeKey International Holding Ltd, to augment the operating cash flow to cover its cash requirements.



Based on the foregoing, Management believe it
is correct to present these figures on a going concern basis.



| | Note |  | 3.Basis of presentation
| | ---- |  | -----------------------



The consolidated financial statements are prepared
in accordance with the Generally Accepted Accounting Principles in the United States of America (“US GAAP”) as set
forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC). All amounts are in United States
dollars (“USD”) unless otherwise stated.



| | Note |  | 4.Summary of significant accounting policies
| | ---- |  | --------------------------------------------



Fiscal Year

The Group’s fiscal year ends on December
31.



Principles of Consolidation

The consolidated financial statements include
the accounts of WISeKey Semiconductors SAS and its wholly-owned subsidiaries over which the Group has control.



Intercompany income and expenses, including unrealized
gross profits from internal group transactions and intercompany receivables, payables and loans have been eliminated.



Use of Estimates

The preparation of consolidated financial statements
in conformity with US GAAP requires management to make certain estimates, judgments and assumptions. We believe these estimates, judgements
and assumptions are reasonable, based upon information available at the time they were made. These estimates, judgments and assumptions
can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of
revenues and expenses during the periods presented. To the extent there are differences between these estimates, judgments or assumptions
and the actual results, our consolidated financial statements will be affected. In many cases, the accounting treatment of a particular
transaction is specifically dictated by US GAAP and does not require management’s judgment in its application. There are also areas
in which management’s judgment in selecting from available alternatives would not produce a materially different result.



Foreign Currency

The functional currency of WISeKey Semiconductors
SAS is USD.



In general, the functional currency of a foreign
operation is the local currency. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance
sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. The effects of foreign currency
translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income/loss. The
Group's reporting currency is USD.





F-7









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





Cash and Cash Equivalents

Cash consists of deposits held at major banks
that are readily available. Cash equivalents consist of highly liquid investments that are readily convertible to cash and with original
maturity dates of three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities
of these instruments.



Accounts Receivable

Receivables represent rights to consideration
that are unconditional and consist of amounts billed and currently due from customers, and revenues that have been recognized for accounting
purposes but not yet billed to customers. The Group extends credit to customers in the normal course of business and in line with industry
practices.



Allowance for Doubtful Accounts

We recognize an allowance for credit losses to
present the net amount of receivables expected to be collected as of the balance sheet date. The allowance is based on the credit losses
expected to arise over the asset’s contractual term taking into account historical loss experience, customer-specific data as well
as forward looking estimates. Expected credit losses are estimated individually.



Accounts receivables are written off when deemed
uncollectible and are recognized as a deduction from the allowance for credit losses. Expected recoveries, which are not to exceed the
amount previously written off, are considered in determining the allowance balance at the balance sheet date.



Inventories

Inventories are stated at the lower of cost or
net realizable value. Costs are calculated using standard costs, approximating average costs. Finished goods and work-in-progress inventories
include material, labor and manufacturing overhead costs. The Group records write-downs on inventory based on an analysis of obsolescence
or a comparison to the anticipated demand or market value based on a consideration of marketability and product maturity, demand forecasts,
historical trends and assumptions about future demand and market conditions.



Property, Plant and Equipment

Property, plant and equipment are stated at cost,
net of accumulated depreciation. Depreciation is computed using the straight-line method based on estimated useful lives which range from
1 to 10 years. Leasehold improvements are amortized over the lesser of the estimated useful lives of the improvements or the lease terms,
as appropriate. Property, plant and equipment are periodically reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable.



Intangible Assets

Those intangible assets that are considered to
have a finite useful life are amortized over their useful lives, which generally range from 1 to 10 years. Each period we evaluate the
estimated remaining useful lives of intangible assets and whether events or changes in circumstances require a revision to the remaining
periods of amortization or that an impairment review be carried out.



Leases

In line with ASC 842, the Group, as a lessee,
recognizes right-of-use assets and related lease liabilities on its balance sheet for all arrangements with terms longer than twelve months,
and reviews its leases for classification between operating and finance leases. Obligations recorded under operating and finance leases
are identified separately on the balance sheet. Assets under finance leases and their accumulated amortization are disclosed separately
in the notes. Operating and finance lease assets and operating and finance lease liabilities are measured initially at an amount equal
to the present value of minimum lease payments during the lease term, as at the beginning of the lease term.



The Group has elected the short-term lease practical
expedient whereby we do not present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months
or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise.



We have also elected the practical expedients related
to lease classification of leases that commenced before the effective date of ASC 842.



Revenue Recognition

The Group’s policy is to recognize revenue
to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps:



| | - | Step 1: Identify the contract(s) with a customer.
| | - | -------------------------------------------------



| | - | Step 2: Identify the performance obligations in the contract.
| | - | -------------------------------------------------------------



| | - | Step 3: Determine the transaction price.
| | - | ----------------------------------------



| | - | Step 4: Allocate the transaction price to the performance obligations in the contract.
| | - | --------------------------------------------------------------------------------------



| | - | Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
| | - | ------------------------------------------------------------------------------------





F-8









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





Revenue is measured based on the consideration
specified in a contract with a customer and excludes amounts collected on behalf of third parties. We typically allocate the transaction
price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised
in the contract. If a standalone price is not observable, we use estimates.



The Group recognizes revenue when it satisfies
a performance obligation by transferring control over goods or services to a customer. The transfer may be done at a point in time (typically
for goods) or over time (typically for services). The amount of revenue recognized is the amount allocated to the satisfied performance
obligation. For performance obligations satisfied over time, the revenue is recognized over time, most frequently on a prorata temporisbasis as most of the services provided by the Group relate to a set performance period.



If the Group determines that the performance
obligation is not satisfied, it will defer recognition of revenue until it is satisfied.

We present revenue net of sales taxes and any
similar assessments.



The Group delivers products and records revenue
pursuant to commercial agreements with its customers, generally in the form of an approved purchase order or sales contract.



Where products are sold under warranty, the customer
is granted a right of return which, when exercised, may result in either a full or partial refund of any consideration received, or a
credit that can be applied against amounts owed, or that will be owed, to the Group. For any amount received or receivable for which we
do not expect to be entitled to because the customer has exercised its right of return, we recognize those amounts as a refund liability.



Contract Assets

Contract assets consists of accrued revenue where
the Group has fulfilled its performance obligation towards the customer but the corresponding invoice has not yet been issued. Upon invoicing,
the asset is reclassified to trade accounts receivable until payment.



Deferred Revenue

Deferred revenue consists of amounts that have
been invoiced and paid but have not been recognized as revenue. Deferred revenue that will be realized during the succeeding 12-month
period is recorded as current and the remaining deferred revenue recorded as non-current. This would relate to multi-year certificates
or licenses.



Contract Liability

Contract liability consists of either:



| | - | amounts that have been invoiced and not yet paid, nor recognized as revenue. Upon payment, the liability
is reclassified to deferred revenue if the amounts still have not been recognized as revenue. Contract liability that will be realized
during the succeeding 12-month period is recorded as current and the remaining contract liability recorded as non-current. This would
relate to multi-year certificates or licenses.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | advances from customers not supported by invoices.
| | - | --------------------------------------------------



Sales Commissions

Sales commission expenses where revenue is recognized
are recorded in the period of revenue recognition.



Cost of Sales and Depreciation of Production
Assets

Our cost of sales consists primarily of expenses
associated with the delivery and distribution of products. These include expenses related to the license to the Global Cryptographic ROOT
Key, the global Certification authorities as well as the digital certificates for people, servers and objects, expenses related to the
preparation of our secure elements and the technical support provided on the Group's ongoing production and on the ramp-up phase, including
materials, labor, test and assembly suppliers, and subcontractors, freights costs, as well as the amortization of probes, wafers and other
items that are used in the production process. This amortization is disclosed separately under depreciation of production assets on the
face of the income statement.



Research and Development and Software Development
Costs

All research and development costs and software
development costs are expensed as incurred.



Advertising Costs

All advertising costs are expensed as incurred.



Pension Plan

In 2022, the Group maintained one defined benefit
post retirement plans covering the employees of WISeKey Semiconductors SAS.



In accordance with ASC 715-30, Defined Benefit
Plans – Pension,the Group recognizes the funded status of the plan in the balance sheet. Actuarial gains and losses are recorded
in accumulated other comprehensive income / (loss).



Income Taxes

Taxes on income are accrued in the same period
as the revenues and expenses to which they relate.



Deferred taxes are calculated on the temporary
differences that arise between the tax base of an asset or liability and its carrying value in the balance sheet of our companies prepared
for consolidation purposes, with the exception of temporary differences arising on investments in foreign subsidiaries where the Group
has plans to permanently reinvest profits into the foreign subsidiaries.



Deferred tax assets on tax loss carry-forwards
are only recognized to the extent that it is “more likely than not” that future profits will be available and the tax loss
carry-forward can be utilized.



F-9











|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





Changes to tax laws or tax rates enacted at the
balance sheet date are taken into account in the determination of the applicable tax rate provided that they are likely to be applicable
in the period when the deferred tax assets or tax liabilities are realized.



The Group is required to pay income taxes in a
number of countries. The Group recognizes the benefit of uncertain tax positions in the financial statements when it is more likely than
not that the position will be sustained on examination by the tax authorities. The benefit recognized is the largest amount of tax benefit
that is greater than 50 percent likely of being realized on settlement with the tax authority, assuming full knowledge of the position
and all relevant facts. The Group adjusts its recognition of these uncertain tax benefits in the period in which new information is available
impacting either the recognition or measurement of its uncertain tax positions.



Research Tax Credits

Research tax credits are provided by the French
government to give incentives for companies to perform technical and scientific research. WISeKey Semiconductors SAS is eligible to receive
such tax credits.



These research tax credits are presented as a
reduction of Research & development expenses in the income statement when companies that have qualifying expenses can receive such
grants in the form of a tax credit irrespective of taxes ever paid or ever to be paid, the corresponding research and development efforts
have been completed and the supporting documentation is available. The credit is deductible from the entity’s income tax charge
for the year or payable in cash the following year, whichever event occurs first. The tax credits are included in noncurrent deferred
tax credits in the balance sheet in line with ASU 2015-17.



Earnings per Share

Basic earnings per share are calculated using
WISeKey Semiconductors SAS’ weighted-average outstanding common shares. When the effects are not antidilutive, diluted earnings
per share is calculated using the weighted-average outstanding common shares and the dilutive effect of stock options as determined under
the treasury stock method.



Segment Reporting

Our chief operating decision maker, who is also
our Chief Executive Officer, regularly reviews information related to one operating segment, secure microcontrollers, for purposes of
allocating resources and assessing budgets and performance. We report our financial performance based on this segment structure described
in Note 32.



Recent Accounting Pronouncements



Adoption of new FASB Accounting Standard in
the current year – Prior-Year Financial Statements not restated:



As of January 1, 2022, the Group adopted Accounting
Standards Update (ASU) 2020-06, 'Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—
Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own
Equity.



ASU 2020-06 simplifies accounting for convertible
instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will
be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting
for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for
the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings
per share (EPS) calculation in certain areas.



There was no material impact on the Group's results
upon adoption of the standard.



As of January 1, 2022, the Group also adopted
ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options —
a consensus of the FASB Emerging Issues Task Force.



The ASU provides a principles-based framework
to determine whether an issuer should recognize the modification or exchange as an adjustment to equity or an expense. The ASU is to
clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written
call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in the ASU affect all
entities that issue freestanding written call options that are classified in equity.



There was no material impact on the Group's results
upon adoption of the standard.



As of January 1, 2022, the Group also adopted
ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance.



The ASU provides an update to increase the transparency
of government assistance including the disclosure of the types of assistance, an entity’s accounting for the assistance, and the
effect of the assistance on an entity’s financial statements. ASC 832 requires the following disclosures in the notes: information
about the nature of the transactions, the accounting policies used to account for the transactions, and balance sheet and income statement
affected by the transactions. The duration, commitments, provisions, and other contingencies are required to be disclosed.



There was no material impact on the Group's results
upon adoption of the standard.



New FASB Accounting Standard to be adopted
in the future:



In October 2021, The FASB issued ASU No. 2021-08, Business
Combinations (topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.





F-10









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





Summary: The ASU amends ASC 805 to “require
acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination.”
Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. ASU 2021-08 requires contract
assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date
in accordance with ASC 606 (meaning the acquirer should assume it has entered the original contract at the same date and using the same
terms as the acquiree). This new ASU applies to contract assets and contract liabilities acquired in a business combination and to other
contracts that directly/indirectly apply the requirements of ASC 606.



Effective Date: ASU 2021-08 is effective for
public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. An
entity should apply the amendments prospectively to business combinations occurring on or after the effective dates. Early adoption is
permitted.



The Group expects to adopt all the aforementioned
guidance when effective. Management is assessing the impact of the aforementioned guidance on its consolidated financial statements but
does not expect it to have a material impact.



| | Note |  | 5.Concentration of credit risks
| | ---- |  | -------------------------------



Financial instruments that are potentially subject
to credit risk consist primarily of cash and cash equivalents and trade accounts receivable. Our cash is held with large financial institutions.
Management believes that the financial institutions that hold our investments are financially sound and accordingly, are subject to minimal
credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits.



The Group sells to large, international customers
and, as a result, may maintain individually significant trade accounts receivable balances with such customers during the year. We generally
do not require collateral on trade accounts receivable. Summarized below are the clients whose revenue were 10% or higher than the respective
total consolidated net sales for fiscal years 2022, 2021 or 2020, and the clients whose trade accounts receivable balances were 10% or
higher than the respective total consolidated trade accounts receivable balance for fiscal years 2022 and 2021. In addition, we note that
some of our clients are contract manufacturers for the same companies; should these companies reduce their operations or change contract
manufacturers, this would cause a decrease in our customer orders which would adversely affect our operating results.



|                                                                     |  | Revenue concentration (% of total net sales) |    | Receivables concentration  (% of total accounts receivable)
|-------------------------------------------------------------------- |  | -------------------------------------------- | -- | -----------------------------------------------------------
|                                                                     |  | 12 months ended December 31,                 |    | As at December 31,                                         
|                                                                     |  | 2022                                         |    | 2021                                                       
|IoT operating segment                                                |  |                                              |    |                                                            
|Multinational electronics contract manufacturing company             |  |                                              | 16 | %                                                          
|International equipment and software manufacturer                    |  |                                              | 6  | %                                                          
|Semiconductor equipment and electronic devices manufacturing company |  |                                              | 4  | %                                                          
|International telecommunication company                              |  |                                              | 5  | %                                                          
|International digital security company                               |  |                                              | 10 | %                                                          



| | Note |  | 6.Fair value measurements
| | ---- |  | -------------------------



ASC 820 establishes a three-tier fair value hierarchy
for measuring financial instruments, which prioritizes the inputs used in measuring fair value. These tiers include:

·Level 1, defined as observable inputs such as quoted prices in active markets;

·Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

·Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.



|                                            |  | As at December 31, 2022 |       | As at December 31, 2021 |  | Fair value level |       |           
|------------------------------------------- |  | ----------------------- | ----- | ----------------------- |  | ---------------- | ----- | ----------
|USD'000                                     |  | Carrying amount         |       | Fair value              |  | Carrying amount  |       | Fair value
|Nonrecurring fair value measurements        |  |                         |       |                         |  |                  |       |           
|Accounts receivable                         |  |                         | 2,219 |                         |  |                  | 2,219 |           
|Accounts payable                            |  |                         | 6,735 |                         |  |                  | 6,735 |           
|Indebtedness to related parties, current    |  |                         | 3,374 |                         |  |                  | 3,374 |           
|Bonds, mortgages and other long-term debt   |  |                         | 1,489 |                         |  |                  | 1,489 |           
|Indebtedness to related parties, noncurrent |  |                         | 7,946 |                         |  |                  | 7,946 |           





F-11









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





In addition to the methods and assumptions we
use to record the fair value of financial instruments as discussed in the Fair Value Measurements section above, we used the following
methods and assumptions to estimate the fair value of our financial instruments:



| | - | Accounts receivable – carrying amount approximated fair value due to their short-term nature.
| | - | ---------------------------------------------------------------------------------------------



| | - | Accounts payable – carrying amount approximated fair value due to their short-term nature.
| | - | ------------------------------------------------------------------------------------------



| | - | Indebtedness to related parties, noncurrent - carrying amount approximated fair value.
| | - | --------------------------------------------------------------------------------------



| | Note |  | 7.Cash and cash equivalents
| | ---- |  | ---------------------------



Cash consists of deposits held at major banks.



| | Note |  | 8.Accounts receivable | 
| | ---- |  | --------------------- | 



The breakdown of the accounts receivable balance
is detailed below:



|                                                                 |  | As at December 31, |       | As at December 31,
|---------------------------------------------------------------- |  | ------------------ | ----- | ------------------
|USD'000                                                          |  | 2022               |       | 2021              
|Trade accounts receivable                                        |  |                    | 2,269 |                   
|Allowance for doubtful accounts                                  |  |                    | (50   | )                 
|Total accounts receivable net of allowance for doubtful accounts |  |                    | 2,219 |                   



| | Note |  | 9.Inventories
| | ---- |  | -------------



Inventories consisted of the following:



|                  |  | As at December 31, |       | As at December 31,
|----------------- |  | ------------------ | ----- | ------------------
|USD'000           |  | 2022               |       | 2021              
|Raw materials     |  |                    | 4,523 |                   
|Work in progress  |  |                    | 2,987 |                   
|Total inventories |  |                    | 7,510 |                   



In the years ended December 31, 2022, 2021 and
2020, the Group recorded inventory obsolescence charges in the income statement of respectively USD 204,211, USD 57,302 and USD 156,188
on raw materials, and USD 349,623, USD 404,509 and USD 301,215 on work in progress.



The inventory obsolescence provisions as at December
31, 2022, and 2021 are, respectively, USD 44,290 and USD 79,846 for raw materials, and USD 270,552 and USD 507,090
for work in progress.



| | Note |  | 10.Other current assets
| | ---- |  | -----------------------



Other current assets consisted of the following:



|                              |  | As at December 31, |       | As at December 31,
|----------------------------- |  | ------------------ | ----- | ------------------
|USD'000                       |  | 2022               |       | 2021              
|Value-Added Tax Receivable    |  |                    | 224   |                   
|Advanced payment to suppliers |  |                    | 1,025 |                   
|Deposits, current             |  |                    | 3     |                   
|Other currrent assets         |  |                    | —     |                   
|Total other current assets    |  |                    | 1,252 |                   



| | Note |  | 11.Deferred tax credits
| | ---- |  | -----------------------



WISeKey Semiconductors SAS is eligible for research
tax credits provided by the French government (see Note 4 Summary of significant accounting policies). As at December 31, 2022 and 2021,
the receivable balances in respect of these research tax credits owed to the Group were respectively USD 692,314 and USD 846,808.
The credit is deductible from the entity’s income tax charge for the year or payable in cash the following year, whichever event
occurs first.





F-12









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | Note |  | 12.Property, plant and equipment
| | ---- |  | --------------------------------



Property, plant and equipment, net consisted of
the following.



|                                          |  | As at December 31, |         | As at December 31,
|----------------------------------------- |  | ------------------ | ------- | ------------------
|USD'000                                   |  | 2022               |         | 2021              
|Machinery & equipment                     |  |                    | 10,410  |                   
|Office equipment and furniture            |  |                    | 2,320   |                   
|Computer equipment and licences           |  |                    | 558     |                   
|Total property, plant and equipment gross |  |                    | 13,288  |                   
|                                          |  |                    |         |                   
|Accumulated depreciation for:             |  |                    |         |                   
|Machinery & equipment                     |  |                    | (9,985  | )                 
|Office equipment and furniture            |  |                    | (2,028  | )                 
|Computer equipment and licences           |  |                    | (493    | )                 
|Total accumulated depreciation            |  |                    | (12,506 | )                 
|Total property, plant and equipment, net  |  |                    | 782     |                   
|Depreciation charge for the year          |  |                    | 404     |                   



In 2022 and 2021, WISeKey Semiconductors SAS did
not identify any events or changes in circumstances indicating that the carrying amount of any asset may not be recoverable. As a result,
the Group did not record any impairment charge on Property, plant and equipment in the years 2022 and 2021.



The useful economic life of property plant and
equipment is as follow:

| | · | Office equipment and furniture:	2 to 5 years
| | - | --------------------------------------------



| | · | Production masks	5 years
| | - | ------------------------



| | · | Production tools	3 years
| | - | ------------------------



| | · | Licenses	3 years
| | - | ----------------



| | · | Software	1 year
| | - | ---------------





| | Note |  | 13.Intangible assets | 
| | ---- |  | -------------------- | 



Intangible assets and future amortization expenses
consisted of the following:



|                                                     |  | As at December 31, |        | As at December 31,
|---------------------------------------------------- |  | ------------------ | ------ | ------------------
|USD'000                                              |  | 2022               |        | 2021              
|Intangible assets subject to amortization:           |  |                    |        |                   
|Patents                                              |  |                    | 2,281  |                   
|License agreements                                   |  |                    | 1,699  |                   
|Other intangibles                                    |  |                    | 923    |                   
|Total intangible assets gross                        |  |                    | 4,903  |                   
|Accumulated amortization for:                        |  |                    |        |                   
|Patents                                              |  |                    | (2,281 | )                 
|License agreements                                   |  |                    | (1,698 | )                 
|Other intangibles                                    |  |                    | (923   | )                 
|Total accumulated amortization                       |  |                    | (4,902 | )                 
|Total intangible assets subject to amortization, net |  |                    | 1      |                   
|Total intangible assets, net                         |  |                    | 1      |                   
|Amortization charge for the year to December 31,     |  |                    | 4      |                   



The useful economic life of intangible assets
is as follow:

| | · | Patents:	5 to 10 years
| | - | ----------------------



| | · | License agreements: 	1 to 3 years
| | - | ---------------------------------



| | · | Other intangibles:	5 years
| | - | --------------------------





F-13









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





Future amortization charges are detailed below:



|Future estimated aggregate amortization expense      |        
|---------------------------------------------------- | -------
|Year                                                 | USD'000
|2023                                                 | 1      
|Total intangible assets subject to amortization, net | 1      



| | Note 14. | Leases
| | -------- | ------



The Group has historically entered into a number
of lease arrangements under which it is the lessee. As at December 31, 2022, the Semiconductors Group holds five operating leases. The
operating leases relate to premises. We do not sublease. All of our operating leases include multiple optional renewal periods which are
not reasonably certain to be exercised.



In the years 2022, 2021 and 2020 we recognized
rent expenses associated with our leases as follows:



|                                               | 12 months ended December 31, |  | 12 months ended December 31, |  | 12 months ended December 31,
|---------------------------------------------- | ---------------------------- |  | ---------------------------- |  | ----------------------------
|USD'000                                        | 2022                         |  | 2021                         |  | 2020                        
|Operating lease cost:                          |                              |  |                              |  |                             
|Fixed rent expense                             | 332                          |  | 378                          |  | 339                         
|Short-term lease cost                          | -                            |  | 3                            |  | 15                          
|Net lease cost                                 | 332                          |  | 381                          |  | 354                         
|Lease cost - Cost of sales                     | -                            |  | -                            |  | -                           
|Lease cost - General & administrative expenses | 332                          |  | 381                          |  | 354                         
|Net lease cost                                 | 332                          |  | 381                          |  | 354                         



In the years 2022 and 2021, we had the following
cash and non-cash activities associated with our leases:



|                                                                        | As at December 31, |  | As at December 31,
|----------------------------------------------------------------------- | ------------------ |  | ------------------
|USD'000                                                                 | 2022               |  | 2021              
|Cash paid for amounts included in the measurement of lease liabilities: |                    |  |                   
|Operating cash flows from operating leases                              | 328                |  | 380               
|Non-cash investing and financing activities :                           |                    |  |                   
|Net lease cost                                                          | 328                |  | 380               
|Additions to ROU assets obtained from:                                  |                    |  |                   
|New operating lease liabilities                                         | 56                 |  | 33                



The following table provides the details of right-of-use
assets and lease liabilities as of December 31, 2022:



|                          | As at December 31,
                                                                                2022
|------------------------- | -------------------------------------------------------------------------------------------------------
|USD'000                  
|Right-of-use assets:      |                                                                                                        
|Operating leases          | 1,379                                                                                                  
|Total right-of-use assets | 1,379                                                                                                  
|Lease liabilities:        |                                                                                                        
|Operating leases          | 1,312                                                                                                  
|Total lease liabilities   | 1,312                                                                                                  





F-14









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





As at December 31, 2022, future minimum annual
lease payments were as follows:



|     |                                                              | USD'000   |  | USD'000    |       | USD'000 |  | USD'000
|---- | ------------------------------------------------------------ | --------- |  | ---------- | ----- | ------- |  | -------
|Year |                                                              | Operating |  | Short-term |       | Finance |  | Total  
|     | 2023                                                         |           |  |            | 313   |         |  |        
|     | 2024                                                         |           |  |            | 293   |         |  |        
|     | 2025                                                         |           |  |            | 285   |         |  |        
|     | 2026                                                         |           |  |            | 285   |         |  |        
|     | 2027 and beyond                                              |           |  |            | 442   |         |  |        
|     | Total future minimum operating and short-term lease payments |           |  |            | 1,618 |         |  |        
|     | Less effects of discounting                                  |           |  |            | (306  | )       |  |        
|     | Lease liabilities recognized                                 |           |  |            | 1,312 |         |  |        



In line with ASU 2018-11, future minimum lease
payments under legacy ASC 840 are disclosed in the table below:



|Year                                                         | USD'000
|------------------------------------------------------------ | -------
|2023                                                         | 313    
|2024                                                         | 293    
|2025                                                         | 285    
|2026                                                         | 285    
|2027 and beyond                                              | 442    
|Total future minimum operating and short-term lease payments | 1,618  
|Less effects of discounting                                  | (306)  
|Lease liabilities recognized                                 | 1,312  



As of December 31, 2022, the weighted-average
remaining lease term was 5.92 years for operating leases.



For our operating leases, we calculated an estimate
rate based upon the estimated incremental borrowing rate of the entity holding the lease. The weighted average discount rate associated
with operating leases as of December 31, 2022 was 3.02%.



| | Note |  | 15.Other noncurrent assets
| | ---- |  | --------------------------



Other noncurrent assets consisted of noncurrent
deposits. Deposits are primarily made up of rental deposits on the premises rented by the Group.



| | Note |  | 16.Accounts payable
| | ---- |  | -------------------



The accounts payable balance consisted of the
following:



|                                                           | As at December 31, |  | As at December 31,
|---------------------------------------------------------- | ------------------ |  | ------------------
|USD'000                                                    | 2022               |  | 2021              
|Trade creditors                                            | 5,001              |  | 5,680             
|Factors or other financial institutions for borrowings     | -                  |  | 27                
|Accounts payable to underwriters, promoters, and employees | 1,071              |  | 792               
|Other accounts payable                                     | 663                |  | 757               
|Total accounts payable                                     | 6,735              |  | 7,256             



Accounts payable to underwriters, promoters and
employees consist primarily of payable balances to employees in relation to holidays, bonus and 13th month accruals across the Group.



Other accounts payable are mostly accruals of
social charges in relation to the accrued liability to employees.





F-15









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | Note |  | 17.Other current liabilities
| | ---- |  | ----------------------------



Other current liabilities consisted of the following:



|                                     | As at December 31, |  | As at December 31,
|------------------------------------ | ------------------ |  | ------------------
|USD'000                              | 2022               |  | 2021              
|Other tax payable                    | 28                 |  | 22                
|Customer contract liability, current | 84                 |  | 111               
|Other current liabilities            | 36                 |  | 47                
|Total other current liabilities      | 148                |  | 180               



| | Note |  | 18.Indebtedness to related parties
| | ---- |  | ----------------------------------



On October 1, 2016, the Group entered into a Revolving
Credit Agreement (the “Revolving Credit”) with its parent WISeKey International Holding AG (“WISeKey”)
to borrow funds within a credit period starting on October 1, 2016 and ending on December 31, 2017 when all outstanding funds would become
immediately due and payable. Outstanding loan amounts bear an interest rate of 3% per annum. Repayments before the end of the credit period
are permitted. On November 1, 2017, the Group and WISeKey entered into the First Amendment to the Revolving Credit Agreement extending
the credit period by 2 years to December 31, 2019. On March 16, 2021, the Group and WISeKey entered into the Second Amendment to the Revolving
Credit Agreement extending the credit period by another 2 years to December 31, 2022. On November 1, 2022, the Group and WISeKey entered
into the Third Amendment to the Revolving Credit Agreement pursuant to which the interest rate was amended to 2.5% per annum.



On November 12, 2020, WISeKey provided a Funding
Commitment to extend shareholder loans (each the “Shareholder Loan”) to the Group for a maximum aggregate amount of
USD 4 million to be drawn down over six months from the date of the commitment, in instalments of between USD 1 million and USD 1.5 million.
The Shareholder Loans bare interest of 3% per annum. There are not set repayment dates for the Shareholder Loans.



All entities in the Semiconductors Group are subject
to management fees from WISeKey and WISeKey’s affiliates. There is no set payment date for these fees, as a result they have been
classified as noncurrent.



On April 1, 2021, the Group entered into a Debt
Remission Agreement (the “Debt Remission”) with WISeKey pursuant to which an outstanding amount of EUR 5 million
(USD 5,871,714) owed to WISeKey was remitted without any compensation from the Group. Per the terms of the Debt Remission, WISeKey will
have the right to reinstate the debt and ask for repayment in fiscal years when WISeKey Semiconductors SAS achieves a positive income
before income tax expense, in an amount calculated based on the income before income tax expense. As such, because of the repayment clause,
the loan amounts covered by the Debt Remission continue to be shown as noncurrent liabilities under the line Indebtedness to related parties,
noncurrent.



On June 28, 2021, the Group entered into a Debt
Transfer Agreement with its parent WISeKey International Holding AG (“WISeKey”) and an affiliate of WISeKey, WISeKey
SA, pursuant to which WISeKey extended a loan of USD 1,463,664 to the Group to repay an overdue creditor balance in that same amount owed
to WISeKey SA. The loan bears interest at the rate of 3% per annum and is repayable by December 31, 2022.



On December 31, 2021, the Group entered into a
Debt Transfer Agreement with WISeKey pursuant to which WISeKey extended a loan of USD 1,910,754 to the Group with an interest rate of
3% per annum, repayable on December 31, 2023.



On June 30, 2022, the Group entered into a Debt
Transfer Agreement with WISeKey pursuant to which WISeKey extended a loan of USD 444,542 to the Group with an interest rate of 3%
per annum, repayable on December 31, 2024.



On August 31, 2022, the Group entered into a Debt
Transfer Agreement with WISeKey and WISeKey SA pursuant to which WISeKey extended a loan of USD 381,879 to the Group with an interest
rate of 3% per annum, repayable on December 31, 2024.



On December 15, 2022, and in view of the negative
equity position of the Group, WISeKey as sole shareholder of the Semiconductors Group resolved to recapitalize the Group by forfeiting
EUR 7 million (USD 7,348,397) out of the loans outstanding in exchange for the issuance of 175,000 new shares in WISeKey
Semiconductors SAS, par value EUR 1. Under French law, such a recapitalization is only possible if the loans to be forfeited are
immediately repayable. Therefore, respectively on November 1, 2022 and November 3, 2022, the Group entered into a First Amendment to
the Debt Transfer Agreements and into the Fourth Amendment to the Revolving Credit Agreement pursuant to which the loans owed under the
Debt Transfer Agreements dated June 28, 2021, December 31, 2021, June 30, 2022 and August 31, 2022 as well as all amounts due under the
Revolving Credit became due and payable on November 30, 2022.



Because of the requirement under French law, we
analyzed the amendment of the maturity of the loans and Revolving Credit as being part of the substance of the recapitalization transaction.
We assessed the recapitalization as a capital transaction between related parties in line with ASC 470-50 and, therefore, recorded
a credit entry of USD 183,710 in share capital corresponding to the new issue of 175,000 shares and a credit of USD 7,164,687
to additional paid-in capital, with a total debit entry of USD 7,348,397 to Indebtedness to related parties, noncurrent.





F-16









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





On December 31, 2022, the Group entered into a
Debt Transfer Agreement with WISeKey pursuant to which WISeKey extended a loan of USD 283,754 to the Group with an interest rate
of 3% per annum, repayable on December 31, 2024.



As at December 31, 2022, the Semiconductors Group
owed WISeKey and WISeKey’s affiliates a total of USD 11,354,925 and the unamortized debt discount balance was USD 35,340,
hence a carrying value of USD 11,319,585 as at December 31, 2022, made up of Shareholder Loans and unpaid management fees.
In 2021, an aggregate debt discount charge of USD 355,327 was amortized to the income statement.



| | Note |  | 19.Employee benefit plans
| | ---- |  | -------------------------



Defined benefit post-retirement plan

In 2022, the Group maintained one defined benefit
post retirement plan for the employees of WISeKey Semiconductors SAS.



The plans are and were considered defined benefit
plans and accounted for in accordance with ASC 715 Compensation – Retirement Benefits. This model allocates pension costs
over the service period of employees in the plan. The underlying principle is that employees render services ratably over this period,
and therefore, the income statement effects of pensions should follow a similar pattern. ASC 715 requires recognition of the funded
status or difference between the fair value of plan assets and the projected benefit obligations of the pension plan on the balance sheet,
with a corresponding adjustment recorded in the net loss. If the projected benefit obligation exceeds the fair value of the plan assets,
then that difference or unfunded status represents the pension liability.



The Group records net service cost as an operating
expense and other components of defined benefit plans as a non-operating expense in the statement of comprehensive loss.



The liabilities and annual income or expense
of the pension plan are determined using methodologies that involve several actuarial assumptions, the most significant of which are
the discount rate and the long-term rate of asset return (based on the market-related value of assets). The fair value of plan assets
is determined based on prevailing market prices.



The defined benefit pension plan maintained by
WISeKey Semiconductors SAS, and their obligations to employees in terms of retirement benefits, is limited to a lump sum payment based
on remuneration and length of service, determined for each employee. The plan is not funded.



The pension liability calculated as at December
31, 2022 is based on annual personnel costs and assumptions as of December 31, 2022.



|Personnel Costs               | As at December 31, |  | As at December 31, |  | As at December 31,
|----------------------------- | ------------------ |  | ------------------ |  | ------------------
|USD'000                       | 2022               |  | 2021               |  | 2020              
|Wages and Salaries            | 4,286              |  | 4,345              |  | 4,955             
|Social security contributions | 1,940              |  | 2,049              |  | 2,250             
|Net service costs             | 42                 |  | 68                 |  | 75                
|Total                         | 6,268              |  | 6,462              |  | 7,280             



|                                       | As at December 31,
|-------------------------------------- | ------------------
|Assumptions                            | 2022              
|                                       | France            
|Discount rate                          | 3.65%             
|Expected rate of return on plan assets | n/a               
|Salary increases                       | 3%                



As at December 31, 2022 the Group’s accumulated
benefit obligation amounted to USD 395,786.





F-17









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





|Reconciliation to Balance Sheet start of year                                         |  |      |      |      |  |     
|------------------------------------------------------------------------------------- |  | ---- | ---- | ---- |  | ----
|USD'000                                                                               |  |      |      |      |  |     
|Fiscal year                                                                           |  | 2022 |      | 2021 |  | 2020
|                                                                                      |  |      |      |      |  |     
|Projected benefit obligation                                                          |  |      | 575  |      |  |     
|Surplus/deficit                                                                       |  |      | 575  |      |  |     
|                                                                                      |  |      |      |      |  |     
|Opening balance sheet asset/provision (funded status)                                 |  |      | 575  |      |  |     
|                                                                                      |  |      |      |      |  |     
|Reconciliation of benefit obligation during the year                                  |  |      |      |      |  |     
|Projected benefit obligation at start of year                                         |  |      | 575  |      |  |     
|Net Service cost                                                                      |  |      | 43   |      |  |     
|Interest expense                                                                      |  |      | 4    |      |  |     
|Net benefits paid to participants                                                     |  |      | (24  | )    |  |     
|Actuarial losses/(gains)                                                              |  |      | (170 | )    |  |     
|Curtailment & Settlement                                                              |  |      | 0    |      |  |     
|Currency translation adjustment                                                       |  |      | (32  | )    |  |     
|Projected benefit obligation at end of year                                           |  |      | 396  |      |  |     
|                                                                                      |  |      |      |      |  |     
|Reconcilation to balance sheet end of year                                            |  |      |      |      |  |     
|Defined benefit obligation - funded plans                                             |  |      | 396  |      |  |     
|Surplus/deficit                                                                       |  |      | 396  |      |  |     
|                                                                                      |  |      |      |      |  |     
|Closing balance sheet asset/provision (funded status)                                 |  |      | 396  |      |  |     
|                                                                                      |  |      |      |      |  |     
|Amounts recognized in accumulated OCI                                                 |  |      |      |      |  |     
|Net loss (gain)                                                                       |  |      | (364 | )    |  |     
|Deficit                                                                               |  |      | (364 | )    |  |     
|                                                                                      |  |      |      |      |  |     
|Estimated amount to be amortized from accumulated OCI into NPBC over next fiscal year |  |      |      |      |  |     
|Net loss (gain)                                                                       |  |      | 52   |      |  |     





F-18









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





|Movement in Funded Status                                                           |  |      |      |      |  |     
|----------------------------------------------------------------------------------- |  | ---- | ---- | ---- |  | ----
|USD'000                                                                             |  |      |      |      |  |     
|Fiscal year                                                                         |  | 2022 |      | 2021 |  | 2020
|                                                                                    |  |      |      |      |  |     
|Opening balance sheet liability (funded status)                                     |  |      | 575  |      |  |     
|                                                                                    |  |      |      |      |  |     
|Net Service cost                                                                    |  |      | 43   |      |  |     
|Interest cost/(credit)                                                              |  |      | 4    |      |  |     
|Settlement / curtailment cost / (credit)                                            |  |      | —    |      |  |     
|Currency translation adjustment                                                     |  |      | 0    |      |  |     
|Total Net Periodic Benefit Cost/(credit)                                            |  |      | 47   |      |  |     
|                                                                                    |  |      |      |      |  |     
|Actuarial (gain)/loss on liabilities due to experience                              |  |      | (170 | )    |  |     
|Total gain/loss recognized via OCI                                                  |  |      | (170 | )    |  |     
|                                                                                    |  |      |      |      |  |     
|Employer contributions paid in the year + Cashflow required to pay benefit payments |  |      | (24  | )    |  |     
|Total cashflow                                                                      |  |      | (24  | )    |  |     
|                                                                                    |  |      |      |      |  |     
|Currency translation adjustment                                                     |  |      | (32  | )    |  |     
|Closing balance sheet liability (funded status)                                     |  |      | 396  |      |  |     
|                                                                                    |  |      |      |      |  |     
|                                                                                    |  |      |      |      |  |     
|Reconciliation of Net Gain / Loss                                                   |  |      |      |      |  |     
|Amount at beginning of year                                                         |  |      | (205 | )    |  |     
|Liability (gain) / loss                                                             |  |      | (170 | )    |  |     
|Currency translation adjustment                                                     |  |      | 11   |      |  |     
|Amount at year-end                                                                  |  |      | (364 | )    |  |     



The table below shows the breakdown of expected
future contributions payable to the plan:



|Period
USD'000 | France
|-------------- | ------
|2023           | 26    
|2024           | 8     
|2025           | 29    
|2026           | 50    
|2027           | 49    
|2028 to 2032   | 331   



The Group expects to make contributions of approximately
$26,000 in 2023.





F-19









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | Note |  | 20.Commitments and contingencies
| | ---- |  | --------------------------------



Lease commitments



The future payments due under leases are shown
in Note 14.



Guarantees



Our software and hardware product sales agreements
generally include certain provisions for indemnifying customers against liabilities if our products infringe a third party’s intellectual
property rights. Certain of our product sales agreements also include provisions indemnifying customers against liabilities in the event
we breach confidentiality or service level requirements. It is not possible to determine the maximum potential amount under these indemnification
agreements due to our lack of history of prior indemnification claims and the unique facts and circumstances involved in each particular
agreement. To date, we have not incurred any costs as a result of such indemnifications and have not accrued any liabilities related to
such obligations in our consolidated financial statements.



| | Note |  | 21.Stockholders’ equity
| | ---- |  | -----------------------



Stockholders’ equity consisted of the following:



|WISeKey Semiconductors SAS                       | As at December 31, 2022 | As at December 31, 2021
|------------------------------------------------ | ----------------------- | -----------------------
|Share Capital                                    | Common stock            | Common stock           
|Par value per share (in EUR)                     | 1.00                    | 1.00                   
|Share capital (in USD)                           | 1,955,441               | 1,771,732              
|                                                 |                         |                        
|Total number of authorized shares                | 1,473,162               | 1,298,162              
|Total number of fully paid-in issued shares      | 1,473,162               | 1,298,162              
|Total number of fully paid-in outstanding shares | 1,473,162               | 1,298,162              



| | Note |  | 22.Accumulated other comprehensive income, net of tax
| | ---- |  | -----------------------------------------------------



|USD'000                                                        |                                                        |     
|-------------------------------------------------------------- | ------------------------------------------------------ | ----
|Accumulated other comprehensive income as at December 31, 2020 |                                                        | 487 
|                                                               | Total net foreign currency translation adjustments     | (8) 
|                                                               | Total defined benefit pension adjustment               | 142 
|Total other comprehensive income/(loss), net                   |                                                        | 134 
|Accumulated other comprehensive income as at December 31, 2021 |                                                        | 621 
|                                                               | Total net foreign currency translation adjustments (1) | (16)
|                                                               | Total defined benefit pension adjustment               | 170 
|Total other comprehensive income/(loss), net                   |                                                        | 154 
|Accumulated other comprehensive income as at December 31, 2022 |                                                        | 775 
|(1) Adjusted for rounding                                      |                                                        |     



There is no income tax expense or benefit allocated
to other comprehensive income.



| | Note |  | 23.Revenue
| | ---- |  | ----------



Nature of goods and services

The following is a description of the principal
activities from which the Group generates its revenue.





F-20









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





The Group recognizes revenue when a customer takes
possession of the chips, which usually occurs when the goods are delivered. Customers typically pay once goods are delivered.



Disaggregation of revenue



The following table shows the Group’s revenues
disaggregated by product or service type:



|Disaggregation of revenue             | Typical payment | At one point in time |        | Total 
|------------------------------------- | --------------- | -------------------- | ------ | ------
|USD'000                               |                 | 2022                 | 2021   | 2020  
|Secure Microcontrollers Segment       |                 |                      |        |       
|Secure chips                          | Upon delivery   | 18,336               | 14,850 | 11,289
|Total Secure Microcontrollers Segment | 18,336          | 14,850               | 11,289 |       
|All Other Segment                     |                 |                      |        |       
|Secure chips                          | Upon delivery   | 4,862                | 2,145  | 3,028 
|Total All Other Segment               | 4,862           | 2,145                | 3,028  |       
|Total Revenue                         | 23,198          | 16,995               | 14,317 |       



For the years ended December 31, 2022, 2021 and
2020 the Group recorded no revenues related to performance obligations satisfied in prior periods.



The following table shows the Group’s revenues
disaggregated by geography, based on our customers’ billing addresses:



|Net sales by region                           | 12 months ended December 31,
|--------------------------------------------- | ----------------------------
|USD'000                                       | 2022                        
|Secure Microcontrollers Segment               |                             
|France                                        | 147                         
|Rest of EMEA                                  | 2,775                       
|North America                                 | 13,408                      
|Asia Pacific                                  | 1,939                       
|Latin America                                 | 67                          
|Total Secure Microcontrollers segment revenue | 18,336                      
|All Other Segment                             |                             
|France                                        | 64                          
|Rest of EMEA                                  | 3,791                       
|North America                                 | 201                         
|Asia Pacific                                  | 806                         
|Latin America                                 | -                           
|Total All Other segment revenue               | 4,862                       
|Total Net sales                               | 23,198                      
|*EMEA means Europe, Middle East and Africa    |                             





F-21









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





Contract assets, deferred revenue
and contract liability

Our contract assets, deferred revenue and contract
liability consist of:



|                                                                                                            | As at December 31, |  | As at December 31,
|----------------------------------------------------------------------------------------------------------- | ------------------ |  | ------------------
|USD'000                                                                                                     | 2022               |  | 2021              
|Trade accounts receivables                                                                                  |                    |  |                   
|Trade accounts receivable - Secure Microcontrollers Segment                                                 | 1,794              |  | 2,321             
|Trade accounts receivable - All Other Segment                                                               | 475                |  | 335               
|Total trade accounts receivables                                                                            | 2,269              |  | 2,656             
|Contract liabilities - current                                                                              | 84                 |  | 111               
|Total contract liabilities                                                                                  | 84                 |  | 111               
|Revenue recognized in the period from amounts included in the deferred revenue at the beginning of the year | -                  |  | 150               



Increases or decreases in trade accounts receivable,
contract assets, deferred revenue and contract liability were primarily due to normal timing differences between our performance and customer
payments.



Remaining performance obligations

As of December 31, 2021, approximately USD 2,083,589
is expected to be recognized from remaining performance obligations for contracts. We expect to recognize revenue for these remaining
performance obligations during the next year approximately as follows:



|Estimated revenue from remaining performance obligations
as at December 31, 2022 (USD'000) | Total
|------------------------------------------------------------------------------------------ | -----
|2023                                                                                       | 84   
|Total remaining performance obligation 
from continuing operations                         | 84   



| | Note |  | 24.Other operating income
| | ---- |  | -------------------------



|                               | 12 months ended December 31,
|------------------------------ | ----------------------------
|USD'000                        | 2022                        
|Accounts payable write-off     | 1,899                       
|Other operating income - other | 108                         
|Total other operating income   | 2,007                       

The accounts payable write-off relates to a liability
recorded in 2013 by WISeKey Semiconductors SAS which the creditor in insolvency can no longer claim.



| | Note 25. | Non-operating income
| | -------- | --------------------



Non-operating income consisted of the following:



|                           | 12 months ended December 31,
|-------------------------- | ----------------------------
|USD'000                    | 2022                        
|Foreign exchange gain      | 926                         
|Financial income           | 9                           
|Other                      | -                           
|Total non-operating income | 935                         





F-22









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | Note |  | 26.Non-operating expenses
| | ---- |  | -------------------------



Non-operating expenses consisted of the following:



|                             | 12 months ended December 31,
|---------------------------- | ----------------------------
|USD'000                      | 2022                        
|Foreign exchange losses      | 383                         
|Financial charges            | 1                           
|Interest expense             | 250                         
|Other                        | 4                           
|Total non-operating expenses | 638                         



| | Note |  | 27.Income taxes
| | ---- |  | ---------------



The components of income before income taxes are
as follows:



|Income / (Loss)                 | 12 months ended December 31,
|------------------------------- | ----------------------------
|USD'000                         | 2022                        
|France                          | 2,879                       
|Foreign                         | (354)                       
|Income/(loss) before income tax | 2,525                       



The components of income taxes relating to the
Group are as follows:



|Income taxes                  | 12 months ended December 31,
|----------------------------- | ----------------------------
|USD'000                       | 2022                        
|France                        | (3,250)                     
|Foreign                       | 5                           
|Income tax expense / (income) | (3,245)                     



The difference between the income tax recovery
(expense) at the local statutory rate compared to the Group’s income tax recovery (expense) as reported is reconciled below:



|                                                           | 12 months ended December 31,
|---------------------------------------------------------- | ----------------------------
|USD'000                                                    | 2022                        
|Net income/(loss) before income tax                        | 2,525                       
|Statutory tax rate                                         | 25%                         
|Expected income tax (expense)/recovery                     | (631)                       
|Change in valuation allowance                              | 2,185                       
|Change in tax loss carryforwards                           | (41)                        
|Add back of loss carryforwards used for the debt remission | 1,342                       
|Permanent difference                                       | 390                         
|Income tax (expense) / recovery                            | 3,245                       



The Group assesses the recoverability of its deferred
tax assets and, to the extent recoverability does not satisfy the “more likely than not” recognition criterion under ASC 740,
records a valuation allowance against its deferred tax assets. The Group considered its recent operating results and anticipated future
taxable income in assessing the need for its valuation allowance.



In the years up until and including 2021, the
Group recorded a valuation allowance for the full amount of its deferred tax assets. However, in view of the Group’s income before
income tax in the year ended December 31, 2022, and of the anticipated future taxable income per management’s forecast, the Group
assessed that the recoverability of its deferred tax assets partially satisfied the “more likely than not” recognition criterion
under ASC 740 as at December 31, 2022 and, therefore, partially reversed the valuation allowance previously recorded.





F-23









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





The Group’s deferred tax assets and liabilities
consist of the following:



|Deferred income tax assets/(liabilities) | As at December 31, |  | As at December 31,
|---------------------------------------- | ------------------ |  | ------------------
|USD'000                                  | 2022               |  | 2021              
|France                                   | 3,296              |  | -                 
|Foreign                                  | -                  |  | -                 
|Deferred income tax assets/(liabilities) | 3,296              |  | -                 



|Deferred tax assets and liabilities                     | As at December 31, |  | As at December 31,
|------------------------------------------------------- | ------------------ |  | ------------------
|USD'000                                                 | 2022               |  | 2021              
|Defined benefit accrual                                 | (29)               |  | 161               
|Tax loss carryforwards                                  | 3,599              |  | 3,640             
|Add back loss carryforwards used for the debt remission | 1,342              |  | -                 
|Valuation allowance                                     | (1,616)            |  | (3,801)           
|Deferred tax assets / (liabilities)                     | 3,296              |  | -                 



As of December 31, 2022, the Group’s operating
cumulated loss carry-forwards of all jurisdictions are as follows:



|Operating loss-carryforward |       
|--------------------------- | ------
|USD'000                     | France
|As of December 31, 2022     | 14,396



In France, operating losses may be carried forward
indefinitely, but may be offset against the taxable profits of a given fiscal year only up to an amount of €1 million, plus 50% of
the taxable result in excess of that threshold.



The following tax years remain subject to examination:



|Significant jurisdictions | Open years 
|------------------------- | -----------
|France                    | 2020 - 2022
|Japan                     | 2022       
|Taiwan                    | 2022       



As at December 31, 2020, the Group had a tax provision
of USD 118,294, initially recorded in 2019 following a tax audit started in 2018 in relation to prior years, which was neither utilized
nor released. There was no additional accrual in the year 2020. In 2021, the Group had decrease its tax provision to USD 47,368.



As at December 31, 2022, the Group had decrease
its tax provision to USD 39,901. Although the final conclusions have not yet been communicated formally, management believes that it is
more probable than not that the entity will have to pay additional taxes and has calculated the provision based on preliminary discussions
with the tax authorities.



The Group has no unrecognized tax benefits.



| | Note |  | 28.Earnings/(Loss) per share
| | ---- |  | ----------------------------



The computation of basic and diluted net earnings/(loss)
per share for the Group is as follows:



|                                                                               | 12 months ended December 31,
|------------------------------------------------------------------------------ | ----------------------------
|Earnings / (loss) per share                                                    | 2022                        
|Net income (USD'000)                                                           | 5,770                       
|Effect of potentially dilutive instruments on net gain (USD'000)               | n/a                         
|Net income / (loss) after effect of potentially dilutive instruments (USD'000) | 5,770                       
|Shares used in net earnings / (loss) per share computation:                    |                             
|Weighted average shares outstanding - basic                                    | 1,473,162                   
|Effect of potentially dilutive equivalent shares                               | n/a                         
|Weighted average shares outstanding - diluted                                  | 1,473,162                   
|Net earnings / (loss) per share                                                |                             
|Basic weighted average loss per share (USD)                                    | 3.92                        
|Diluted weighted average loss per share (USD)                                  | 3.92                        



For the years 2020, 2021 and 2022, the group had
no dilutive instruments to be considered for the computation of diluted earnings per share.





F-24









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------



| | Note |  | 29.Legal proceedings
| | ---- |  | --------------------



We are currently not party to any legal proceedings
and claims that are not provided for in our financial statements.



| | Note |  | 30.Related parties disclosure
| | ---- |  | -----------------------------



Subsidiaries



As at December 31, 2022, the consolidated financial
statements of the Group include the entities listed in the following table:



|Group Company Name   |  | Country of incorporation |        | Year of incorporation |  | Share Capital |      | % ownership as at December 31, 2022 |  | % ownership as at December 31, 2021 |                 | Nature of business
|-------------------- |  | ------------------------ | ------ | --------------------- |  | ------------- | ---- | ----------------------------------- |  | ----------------------------------- | --------------- | ------------------
|WISeKey IoT Japan KK |  |                          | Japan  |                       |  |               | 2017 |                                     |  |                                     | JPY   1,000,000 |                   
|WISeKey IoT Taiwan   |  |                          | Taiwan |                       |  |               | 2017 |                                     |  |                                     | TWD   100,000   |                   



Related party transactions and balances



|  |                                  | Receivables as at | Payables as at | Net expenses to | Net income from
|- | -------------------------------- | ----------------- | -------------- | --------------- | ---------------
|  | Related Parties                  | December 31,      | December 31,   | December 31,    | December 31,   
|  | (in USD'000)                     | 2022              | 2021           | 2022            | 2021           
|1 | WISeKey International Holding AG | -                 | -              | 7,122           | 10,899         
|2 | Wisekey SA                       | -                 | -              | -               | 382            
|3 | WISeKey USA Inc                  | -                 | -              | 154             | 883            
|4 | WISeKey Semiconductors GmbH      | -                 | -              | 773             | 615            
|5 | WISeCoin AG                      | -                 | -              | 3,306           | 3,238          
|  | Total                            | -                 | -              | 11,355          | 16,017         





F-25









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





1. The Semiconductors group is wholly owned by
WISeKey International Holding AG, which provides financing and management services, including, but not limited to, sales and marketing,
accounting, finance, legal, taxation, business and strategy consulting, public relations, marketing, risk management, information technology
and general management. The expenses in relation to WISeKey International Holding AG in 2022, 2021 and 2020 relate to interest on the
outstanding loans and the recharge of management services.



2. WISeKey SA is a subsidiary of the group headed
by WISeKey International Holding AG (the “WISeKey Group”) and provides management services to the Semiconductors Group,
including, but not limited to, sales and marketing, accounting, business and strategy consulting, public relations, marketing, risk management
and information technology. The expenses in relation to WISeKey SA in 2022, 2021 and 2020 relate to interest on the outstanding loans
and the recharge of management services.



3. WISeKey USA Inc is part of the WISeKey Group
and employs sales employees who work for the Semiconductors Group. The expenses in relation to WISeKey USA Inc. in 2022 and 2021 relate
to the recharge of employee costs.



4. WISeKey Semiconductors GmbH is part of the
WISeKey Group and employs sales employees who work for the Semiconductors Group. The expenses in relation to WISeKey Semiconductors GmbH
in 2022, 2021 and 2020 relate to the recharge of employee costs.



5. WISeCoin AG was the parent of WISeCoin France
R&D Lab SAS until it was acquired by the Semiconductors Group. WISeCoin AG is part of the WISeKey Group. The expenses recorded in
2020 relate to interest on the outstanding loans and the recharge of management services. The expenses recorded in 2022 and 2021 relate
to interest on the outstanding loans.



| | Note |  | 31.Subsequent events
| | ---- |  | --------------------



Reverse Acquisition

On January 1, 2023, the Semiconductors Group was
sold by WISeKey International Holding Ltd to its wholly owned subsidiary SEALSQ Corp. in exchange for a consideration of 1,499,700
SEALSQ Class F shares, par value USD 0.05 and 7,501,4000 SEALSQ ordinary shares.



The acquisition by SEALSQ Corp. of the Semiconductors
Group is a transaction under common control in line with ASC 805-50 because both entities were wholly owned by WISeKey. The combination
will be accounted for as a reverse acquisition from January 1, 2023, in line with ASC 805-40 “Reverse Acquisitions” because
SEALSQ Corp., then a so-called empty shell private company with no operating activities that was not considered a business under US GAAP
standards, acquired the Semiconductors Group, a private operating company and its affiliates. This transaction being a capital transaction
in substance, it qualifies as a reverse acquisition that is considered a recapitalization under common control whereby SEALSQ is the legal
acquirer and accounting acquiree, whereas the Semiconductors Group is the legal acquiree and accounting acquirer.



Indebtedness to related parties

On January 1, 2023, the Group entered into a Loan
Agreement (the “New Loan Agreement”) with WISeKey pursuant to which all loans outstanding are replaced with the New
Loan Agreement, meaning that all outstanding loan amounts are governed by the terms and conditions of the New Loan Agreement. Under the
New Loan Agreement, the Group may borrow funds up to an aggregate amount of USD 5 million in instalments of no more than USD 1 million
each. The New Loan Agreement loan bears interest at the rate of 2.5% per annum and is repayable by December 31, 2024.





F-26









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





| | Note |  | 32.Segment reporting
| | ---- |  | --------------------



The Group has one operating segment that meets
the criteria set in ASC 280-10-50: Secure Microcontrollers. The Group’s chief operating decision maker, who is its Chief Executive
Officer, reviews financial performance of this operating segment for purposes of allocating resources and assessing budgets and performance.



The remaining non-reportable operating segments
and other business activities that are not identified as operating segments are combined and disclosed in an “all other” standalone
category.



The Secure Microcontrollers segment encompasses
the design, manufacturing, sales and distribution of high-end, Common Criteria EAL5+ & FIPS 140-3-certified secure microprocessors.



|12 months ended December 31,               |  | 2022                    |        | 2021      |  | 2020 
|------------------------------------------ |  | ----------------------- | ------ | --------- |  | -----
|USD'000                                    |  | Secure Microcontrollers |        | All Other |  | Total
|Revenues from external customers           |  |                         | 18,336 |           |  |      
|Intersegment revenues                      |  |                         | —      |           |  |      
|Interest revenue                           |  |                         | 7      |           |  |      
|Interest expense                           |  |                         | 200    |           |  |      
|Depreciation and amortization              |  |                         | 319    |           |  |      
|Segment income /(loss) before income taxes |  |                         | 526    |           |  |      
|Profit / (loss) from intersegment sales    |  |                         | —      |           |  |      
|Income tax recovery /(expense)             |  |                         | 2,565  |           |  |      
|Segment assets                             |  |                         | 18,340 |           |  |      



|12 months ended December 31,                   | 2022   |         | 2021    |         | 2020   
|---------------------------------------------- | ------ | ------- | ------- | ------- | -------
|                                               |        | USD'000 |         | USD'000 |        
|Revenue reconciliation                         |        |         |         |         |        
|Total revenue for reportable segment           | 23,566 |         | 17,410  |         | 19,247 
|Elimination of intersegment revenue            | (368)  |         | (415)   |         | (4,930)
|Total consolidated revenue                     |        | 23,198  |         | 16,995  |        
|                                               |        |         |         |         |        
|Loss reconciliation                            |        |         |         |         |        
|Total profit / (loss) from reportable segments | 2,543  |         | (4,801) |         | (8,961)
|Elimination of intersegment profits            |        | (18)    |         | (20)    |        
|Income /(Loss) before income taxes             | 2,525  |         | (4,821) |         | (9,196)



|As at December 31,                      |        | 2022    |        | 2021   
|--------------------------------------- | ------ | ------- | ------ | -------
|                                        |        | USD'000 |        | USD'000
|Asset reconciliation                    |        |         |        |        
|Total assets from reportable segments   | 21,734 |         | 12,022
|Elimination of intersegment receivables | (75)   |         | (178) 
|Consolidated total assets               |        | 21,659  |        | 11,844 





F-27









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





Revenue and property, plant and equipment
by geography



The following tables summarize geographic information
for net sales based on the billing address of the customer, and for property, plant and equipment.



|Net sales by region                         |        |  | 12 months ended December 31,
|------------------------------------------- | ------ |  | ----------------------------
|USD'000                                     | 2022   |  | 2021                        
|France                                      | 211    |  | 457                         
|Rest of EMEA*                               | 6,566  |  | 3,798                       
|North America                               | 13,609 |  | 10,631                      
|Asia Pacific                                | 2,745  |  | 2,062                       
|Latin America                               | 67     |  | 47                          
|Total net sales                             | 23,198 |  | 16,995                      
|* EMEA means Europe, Middle East and Africa |        |  |                             



|Property, plant and equipment, net of depreciation, by region | As at December 31, |  | As at December 31,
|------------------------------------------------------------- | ------------------ |  | ------------------
|USD'000                                                       | 2022               |  | 2021              
|France                                                        | 782                |  | 886               
|Total Property, plant and equipment, net of depreciation      | 782                |  | 886               



| | Note |  | 33.Bonds, mortgages and other long-term debt
| | ---- |  | --------------------------------------------



Production Capacity Investment Loan Agreement

In November 2022, WISeKey Semiconductors SAS entered
into a loan agreement with a third party client to borrow funds for the purpose of increasing their production capacity.  Under the
terms of the Agreement, the client has lent to WISeKey Semiconductors SAS a total of USD 2,000,000. The loan will be reimbursed by
way of a volume rebate against future sales volumes from the Semiconductors Group to the client during the period from July 1, 2023, through
to December 31, 2025.  The volume rebate is based upon quarterly sales volumes in excess of a base limit on a yearly projected basis.
Any amount still outstanding as at December 31, 2025 falls due for repayment on this date.  The loan does not bear any interest and
there were no fees or costs attributed to the loan.



An unamortized debt discount totaling USD 511,128
was calculated and booked to APIC in 2022.  WISeKey Semiconductors SAS has not repaid any amount as at December 31, 2022, and no
debt discount charge was recorded to the income statement in 2022. The amortization of the debt will start in 2023.



Therefore, as at December 31, 2022, the loan
balance was USD 2,000,000 and the unamortized debt discount balance was USD 511,128, leaving a carrying value of USD 1,488,872.



| | Note |  | 34.Business Update Related to COVID-19
| | ---- |  | --------------------------------------



In March 2020, the World Health Organization declared
the Coronavirus (COVID-19) a pandemic. The outbreak spread quickly around the world, including in every geography in which the Group operates.
The pandemic has created uncertainty around the impact of the global economy and has resulted in impacts to the financial markets and
asset values. Governments implemented various restrictions around the world, including closure of non-essential businesses, travel, shelter-in-place
requirements for citizens and other restrictions.



The Group took a number of precautionary steps
to safeguard its businesses and colleagues from COVID-19, including implementing travel restrictions, working from home arrangements and
flexible work policies. The Group started to return to offices around the world, in line with the guidelines and orders issued by national,
state and local governments, implementing a phased approach in its main office in France. We continue to prioritize the safety and well-being
of our colleagues during this time.



The Group’s major production centers, located
in Taiwan and Vietnam, were quick to implement controls and safeguards around their processes that enabled us to continue delivering products
with minimal interruption to our clients. In 2022, the impact upon the Group has been limited and we remain confident that we are able
to fulfil all current client orders.



The Group retains a strong liquidity position
and believes that it has sufficient cash reserves to support the entity for the foreseeable future (see note 2 for further details.) The
Group continues to review its costs and suspended its share buy-back programs in order to reduce the cash burn. The Group has applied
for, and received, support under the schemes announced by the Swiss government. Currently the Group remains able to meet its commitments
and does not foresee any significant challenges in the near future. The Group currently does not anticipate any material impact on its
liquidity position and outlook.





F-28









|WISeKey Semiconductors SAS, SEALSQ Corp Predecessor |  | Consolidated
Financial Statements as at December 31, 2022
|--------------------------------------------------- |  | ---------------------------------------------------------





At this stage it remains impossible to predict
the extent of the impact of the COVID-19 pandemic as this will depend on numerous evolving factors and future developments that the Group
is not able to predict.



| | Note |  | 35.Impacts of the war in Ukraine
| | ---- |  | --------------------------------



Following the outbreak of the war in Ukraine in
late February 2022, several countries imposed sanctions on Russia, Belarus and certain regions in Ukraine. There has been an abrupt change
in the geopolitical situation, with significant uncertainty about the duration of the conflict, changing scope of sanctions and retaliation
actions including new laws.



The Semiconductors Group does not have any operation
or customer in Russia, Belarus or Ukraine, and, as such, does not foresee any direct impact of the war on its operations.



However, the war has also contributed to an increase
in volatility in currency markets, energy prices, raw material and other input costs, which may impact the Group’s supply chain
in the future.



As at December 31, 2022, the Semiconductors Group
has assessed the consequences of the war for its financial disclosures and considered the impacts on key judgements and significant estimates,
and has concluded that no changes were required. The Semiconductors Group will continue to monitor these areas of increased risk for material
changes.





F-29







SIGNATURES



The registrant hereby certifies
that it meets all of the requirements for filing of Form 20-F and that it has duly caused and authorized the undersigned to sign this
annual report on its behalf.



| | SEALSQ CORP         |                                       
| | ------------------- | --------------------------------------
| | By:                 | /s/ Peter Ward                        
| |                     | Peter Ward
    Chief Financial Officer
| |                     |                                       
| | Date: June 27, 2023 |                                       













EXHIBIT INDEX



|12.1 | Certification of Carlos Moreira, Chief Executive Officer of SEALSQ Corp, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                       
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                           
|12.2 | Certification of Peter Ward, Chief Financial Officer of SEALSQ Corp, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                           
|     |                                                                                                                                                                                           
|13.1 | Certification of Carlos Moreira, Chief Executive Officer of SEALSQ Corp, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|     |                                                                                                                                                                                           
|13.2 | Certification of Peter Ward, Chief Financial Officer of SEALSQ Corp, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.