# EDGAR Filing Document

**Accession Number:** 0000890394
**File Stem:** 0001654954-23-003376
**Filing Date:** 2023-3
**Character Count:** 37311
**Document Hash:** cd5569c910193e6197741dd412c10f2c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-23-003376.hdr.sgml**: 20230323

**ACCESSION NUMBER**: 0001654954-23-003376

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230322

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230323

**DATE AS OF CHANGE**: 20230322

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Peraso Inc.
- **CENTRAL INDEX KEY:** 0000890394
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **IRS NUMBER:** 770291941
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-32929
- **FILM NUMBER:** 23754055

**BUSINESS ADDRESS:**
- **STREET 1:** 2309 BERING DRIVE
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95131
- **BUSINESS PHONE:** 408 418 7500

**MAIL ADDRESS:**
- **STREET 1:** 2309 BERING DRIVE
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95131

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MoSys, Inc.
- **DATE OF NAME CHANGE:** 20060530

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MONOLITHIC SYSTEM TECHNOLOGY INC
- **DATE OF NAME CHANGE:** 19960613

?xml version="1.0" encoding="utf-8"?prso_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

______________________

**FORM 8-K**

______________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event Reported): **March 22, 2023**

---

| |
|:---|
| **PERASO INC.** |
| &nbsp;&nbsp;(Exact Name of Registrant as Specified in Charter) |

---

**<u>000-32929</u>**

(Commission File Number)

---

| | |
|:---|:---|
| **Delaware** | **77-0291941**  |
| (State or Other Jurisdiction of Incorporation) | (I.R.S. Employer Identification Number) |

---

**2309 Bering Dr.**

**<u>San Jose, California 95131</u>**

(Address of principal executive offices, with zip code)

&nbsp;&nbsp;&nbsp;&nbsp;**<u>(408) 418-7500</u>**

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Title of each class | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading Symbol(s) | &nbsp;&nbsp;&nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Stock, par value $0.001 per share | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSO | &nbsp;&nbsp;&nbsp;&nbsp;The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, 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. ☐

**Item 2.02 Results of Operations and Financial Condition.**

On March 22, 2023, Peraso Inc. (the "Company") issued a press release announcing its financial results for the three and twelve months ended December 31, 2022. A copy of this press release is furnished as Exhibit 99.1 to this report. The press release should be read in conjunction with the cautionary language regarding forward-looking statements, which are included in the text of the release.

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), management also presents information regarding the Company's performance over comparable periods based on cost of goods sold, operating expenses (research and development and sales, general and administrative), operating income (loss), net income (loss) and net income (loss) per share, exclusive of stock-based compensation, amortization of intangible assets and impairment of goodwill. Because management discloses financial measures calculated without taking into account these items, these financial measures are characterized as "non-GAAP financial measures" under Securities and Exchange Commission rules.

Stock-based compensation charges represent non-cash charges related to equity awards granted by the Company. Although these are recurring charges to the Company's operations, management believes the measurement of these amounts can vary considerably from period to period and depend substantially on factors that are not a direct consequence of operating performance that is within management's control. Thus, management believes that excluding these charges facilitates comparisons of the Company's operational performance in different periods, as well as with similarly determined non-GAAP financial measures of comparable companies.

The Company's non-GAAP financial measures also exclude amortization of intangibles recorded from the Company's acquisition of Peraso Technologies. Management believes the amortization does not represent operating expenses ordinarily incurred by the Company with respect to its core business. Thus, these charges are excluded from the Company's non-GAAP financial measures to provide another basis for evaluating and comparing the Company's performance for the three and twelve months ended December 31, 2022.

The Company's non-GAAP financial measures also exclude amortization of intangibles and business combination transaction costs, that resulted from the business combination consummated with Peraso Technologies Inc. and do not represent operating expenses ordinarily incurred by the Company with respect to its core business. Thus, these charges are excluded from the Company's non-GAAP financial measures to provide another basis for evaluating and comparing the Company's performance for the three and twelve months ended December 31, 2021.

In accordance with its goodwill accounting policy, in December 2022, the Company performed an assessment to identify possible goodwill impairment and concluded the goodwill carrying value was greater than its fair value. Therefore, the Company recorded a non-cash impairment charge of approximately $9.6 million during the three months ended December 31, 2022. The impairment charges has been presented as a separate line item within the consolidated statements of operations and comprehensive loss.

The Company's non-GAAP financial measures also exclude change in fair value of warrant liability. Prior to the business combination, Peraso Technologies Inc. issued detachable warrants with its preferred shares and convertible debentures. The warrants had exercise prices that were denominated in foreign currency (Canadian dollars) that differed from the Company's functional currency (United States dollars) and accordingly were accounted for as a liability. These warrants were initially recorded at fair value and then re-valued at each reporting date, with changes in the fair value reported in the statements of operations.

Adjusted EBITDA is GAAP net income (loss), as reported on the Company's consolidated statements of operations, excluding stock-based compensation, amortization of intangible assets, impairment of goodwill, business combination transaction costs, change in fair value of warrant liability, interest expense, depreciation, and the provision (benefit) for income taxes.

Management and the Company's board of directors will continue to analyze the historical consolidated results of operations and comprehensive income (loss) (revenue, cost of goods sold, research and development expenses, selling, general and administrative expenses, operating income (loss), net income (loss) and net income (loss) per share) and adjusted EBITDA to assess the business and compare operating results to the Company's performance objectives. For example, the Company's budgeting and planning process utilizes these non-GAAP financial measures.

The Company discloses these non-GAAP financial measures to the public as an additional means by which investors can assess the Company's performance and to identify the Company's operating results for investors on the same basis applied by management. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and, therefore, may not be comparable to, similarly titled measures used by other companies. The Company has furnished reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures in the press release furnished as Exhibit 99.1.

Moreover, although these non-GAAP financial measures adjust expense, they should not be viewed as a pro-forma presentation reflecting the elimination of the underlying share-based compensation programs, which are an important element of the Company's compensation structure. GAAP requires that all forms of share-based payments should be valued and included, as appropriate, in results of operations. Management believes these expenses are a material part of the Company's operating results.

The information contained in this Current Report on Form 8-K and Exhibit 99.1 hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference to any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.**  | **Description** |
| [99.1](prso_ex991.htm) | [Press Release by Peraso Inc. dated March 22, 2023](prso_ex991.htm) |
| 104 | The cover page of this Current Report on Form 8-K, formatted in Inline XBRL |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **PERASO INC.** | **PERASO INC.** |
| Date: March 22, 2023 | By: | */s/ James Sullivan* |
|  |  | James Sullivan |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](prso_ex991img5.jpg)

**Peraso Announces Fourth Quarter and Full Year 2022 Results**

***Fourth Quarter Product Revenue Increased 25% Sequentially and Over 100% Year-over-Year***

***Total Revenue for the Full Year Increased 160% Year-over-Year***

**SAN JOSE, Calif., March 22, 2023 –** <u>Peraso Inc</u>. (NASDAQ: PRSO) ("Peraso" or the "Company"), a leader in mmWave technology, today announced financial results for the fourth quarter and full year ended December 31, 2022.

**Management Commentary**

"We delivered another consecutive quarter of strong year-over-year growth to complete our first full year of combined operations," stated Ron Glibbery, CEO of Peraso. "Throughout the year, we continued to build upon Peraso's leadership position in the mmWave fixed wireless access (FWA) market. Also contributing to our robust growth during 2022 was sustained demand and increased shipments of our memory IC products. The year was further highlighted by the introduction of our PERSPECTUS family of integrated 60GHz solutions that provide unique point-to-multipoint capability, as well as multi-gigabit connectivity. Customer adoption and orders for our mmWave solutions have continued to expand with the momentum of FWA, which according to industry reports now accounts for a majority of the net broadband subscription additions in the U.S. We have also received very positive feedback and cultivated new prospective customer engagements for our dual-band 5G mmWave beamformer solution, which we introduced to the market mid-year.

"Looking ahead, we remain encouraged by the expanding growth opportunities in the FWA market, both domestically and abroad, while also acknowledging the broader macroeconomic conditions. In order to prudently manage expenses and preserve cash during this uncertain environment, we recently implemented cost reduction initiatives to optimize our allocation of resources and prioritize near-term opportunities with the highest potential ROI. We anticipate these actions to streamline our organization, reduce operating expenses by approximately $5.0 million annually and position the Company to achieve improved operating results, as we continue to drive top-line growth over the coming year."

**Fourth Quarter 2022 Financial Results**

Total net revenue for the fourth quarter of 2022 was $3.9 million, compared with $3.3 million in the prior quarter and $1.9 million in the same quarter a year ago. Product revenue for the fourth quarter of 2022 was $3.8 million, compared with $3.1 million in the prior quarter and $1.9 million in the same quarter a year ago. The sequential increase in revenue was primarily attributable to increased shipments of the Company's mmWave and memory ICs, and the year-over-year growth in revenue mainly reflected increased shipments of memory IC products.

GAAP gross margin for the fourth quarter of 2022 was 44.2%, compared with 39.3% in the prior quarter and 30.4% in the same quarter a year ago. On a non-GAAP basis, gross margin for the fourth quarter of 2022 was 53.4%, compared with 50.2% in the prior quarter and 30.4% in the same quarter a year ago. The sequential and year-over-year improvement in gross margin for the fourth quarter was primarily the result of increased shipments of the Company's memory IC products. The fourth quarter of 2021 included two weeks of revenue contribution from memory products following the closing of the business combination with MoSys, Inc. in December 2021, as compared with a full quarter of contribution for 2022.

Total operating expenses on a GAAP basis for the fourth quarter of 2022 were $16.2 million, which included a $9.9 million goodwill impairment charge. This compared with operating expenses in the prior quarter of $5.3 million, which included a $2.6 million reduction for a gain related to a license and asset sale, and $5.3 million in the fourth quarter of 2021. Operating expenses on a non-GAAP basis for the fourth quarter of 2022, which exclude stock-based compensation expenses, amortization of intangible assets, and the aforementioned goodwill impairment charge, were $4.8 million, compared with $3.7 million in the prior quarter and $3.7 million in the same quarter a year ago.

GAAP net loss for the fourth quarter of 2022 was $14.6 million, or ($0.71) per share, compared with a net loss of $4.0 million, or ($0.20) per share, in the prior quarter and net income of $2.5 million, or $0.28 per diluted share, in the fourth quarter 0f 2021.

Non-GAAP net loss for the fourth quarter of 2022 was $2.8 million, or ($0.13) per share, compared with a net loss of $2.0 million, or ($0.10) per share, in the prior quarter and a net loss of $3.9 million, or ($0.51) per share, in the fourth quarter of 2021. Adjusted EBITDA for the fourth quarter of 2022 was negative $2.5 million, compared with a negative $1.8 million in the prior quarter and a negative $2.8 million in the same quarter last year.

A reconciliation of GAAP to non-GAAP results and GAAP net income (loss) to Adjusted EBITDA is provided in the financial statement tables following the text of this press release.

**Full Year 2022 Financial Results**

Total net revenue for 2022 was $14.9 million compared to $5.7 million in the prior year, which included only two weeks of revenue contribution from memory products. Product revenue in 2022 was $14.2 million, compared with $4.9 million in 2021. The year-over-year growth in total net revenue and product revenue were primarily attributable to increased shipments of mmWave antenna product solutions and a full year of revenue contribution from memory products.

GAAP gross margin for 2022 was 40.0%, compared with 42.4% for 2021. On a non-GAAP basis, gross margin for 2022 was 49.7%, compared with the same 42.4% for 2021, which reflected no non-GAAP adjustments. The increase in non-GAAP gross margin was primarily the result of increased shipments of the Company's memory IC products.

Total operating expenses on a GAAP basis for 2022 were $38.3 million, compared with operating expenses of $18.5 million for 2021. Total non-GAAP operating expenses for 2022, excluding stock-based compensation expenses, amortization of intangible assets, and the impairment charge, were $22.0 million, compared with $12.3 million in 2021. A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.

GAAP net loss for 2022 was $32.4 million, or ($1.61) per share, compared with net loss of $10.9 million, or ($1.86) per share, for 2021.

Non-GAAP net loss for 2022 was $14.7 million, or ($0.73) per share, compared with a net loss of $12.8 million, or ($2.19) per share, in 2021. Adjusted EBITDA for 2022 was a negative $13.7 million, compared with a negative $8.8 million for 2021.

**Business Outlook**

The Company expects total net revenue for the first quarter of 2023 to be in the range of $4.7 million to $5.0 million.

**Earnings Conference Call and Webcast Information**

Ron Glibbery, CEO, and Jim Sullivan, CFO, will host a conference call and webcast with slides today, March 22, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

Date: **Wednesday, March 22, 2023**

Time: **2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)**

Conference Call Number: **1-888-506-0062**

International Call Number: **+1-973-528-0011**

Passcode: **780298**

**Webcast and Slides:** <u>**Click Here**</u>

For those unable to listen to the live Web broadcast, it will be archived on the Company's website, and can be accessed by visiting the Company's investor page at <u>www.perasoinc.com</u>. A replay of the conference call will also be available through March 29, 2023, and can be accessed by calling 1-877-481-4010, and using passcode 47853. International callers should dial 1-919-882-2331 and enter the same passcode at the prompt. Any supporting materials referenced during the live broadcast will be made available in the Investor Relations section of the Company's website following the conclusion of the conference call.

**Use of Non-GAAP Financial Measures** 

To supplement Peraso's consolidated financial statements presented in accordance with GAAP, Peraso uses non-GAAP financial measures that exclude from the statement of operations the effects of stock-based compensation, amortization of reported intangible assets, business combination transaction costs, and the change in fair value of warrant liability. Peraso's management believes that the presentation of these non-GAAP financial measures is useful to investors and other interested persons because they are one of the primary indicators that Peraso's management uses for planning and forecasting future performance. The press release also makes reference to and reconciles GAAP net income (loss) attributable to common stockholders and adjusted EBITDA, which the Company defines as GAAP net income (loss) before interest expense, income tax provision, and depreciation and amortization, as well as stock-based compensation, amortization of reported intangible assets, business combination transaction costs and the change in fair value of warrant liability. Management believes that the presentation of non-GAAP financial measures that exclude these items is useful to investors because management does not consider these charges part of the day-to-day business or reflective of the core operational activities of the Company that are within the control of management or that would be used to evaluate management's operating performance.

Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the comparable GAAP results, which are provided in tables below the Condensed Consolidated Statements of Operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. For additional information regarding these non-GAAP financial measures, and management's explanation of why it considers such measures to be useful, refer to the Form 8-K dated March 22 , 2023, that the Company filed with the Securities and Exchange Commission.

**Forward-Looking Statements**

This press release may contain forward-looking statements about the Company, including, without limitation, the Company's expectations regarding growth prospects for the Company's products and the Company's 2023 revenue and gross margin trends. Forward-looking statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited, to the following:

· our ability to raise additional capital to fund our operations;

· annual expense savings expected from the Company's cost reduction initiatives;

· the timing of customer orders and product shipments;

· risks related to the COVID-19 pandemic that may have an adverse impact on the Company's business and financial results and result in component shortages and increased lead times that may negatively impact the Company's ability to ship its products;

· inflationary risks;

· customer concentrations and length of billing and collection cycles, which may be impacted in the event of a global recession or economic downturn;

· lengthy sales cycle;

· ability to enhance our existing proprietary technologies and develop new technologies;

· achieving additional design wins for our products through the acceptance and adoption of our technology by potential customers and their suppliers;

· difficulties and delays in the production, testing and marketing of our products;

· reliance on our manufacturing partners to assist successfully with the fabrication of our and production of our products;

· availability of quantities of our products supplied by our manufacturing partners at a competitive cost;

· level of intellectual property protection provided by our patents, the expenses and other consequences of litigation, including intellectual property infringement litigation, to which we may be or may become a party from time to time;

· vigor and growth of markets served by our customers and our operations; and

· other risks identified in the Company's public filings it makes with the Securities and Exchange Commission.

Peraso does not intend to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

**About Peraso Inc.**

Peraso Inc. (NASDAQ: PRSO) is a pioneer in high performance 5G mmWave wireless technology, offering chipsets, antenna modules, software and IP. Peraso supports a variety of applications, including fixed wireless access, immersive video and factory automation. In addition, Peraso's solutions for data and telecom networks focus on Accelerating Data Intelligence and Multi-Access Edge Computing, providing end-to-end solutions from the edge to the centralized core and into the cloud. For additional information, please visit <u>www.perasoinc.com</u>.

**Company Contact:**

Jim Sullivan, CFO

Peraso Inc.

P: 408-418-7500

E: <u>jsullivan@perasoinc.com</u>

**Investor Relations Contacts:**

Shelton Group

Brett L. Perry \| Leanne K. Sievers

P: 214-272-0070\| 949-224-3874

E: <u>sheltonir@sheltongroup.com</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** |
| **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** |
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Net Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Product | $3815 | $1890 | $14199 | $4906 |
| &nbsp;&nbsp;&nbsp;&nbsp; Royalty and other | 72 | (27) | 669 | 773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total net revenue | 3887 | 1863 | 14868 | 5679 |
| **Cost of Net Revenue** | 2168 | 1297 | 8915 | 3270 |
| **Gross Profit** | 1719 | 566 | 5953 | 2409 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development | 4130 | 3096 | 19768 | 11471 |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative | 2172 | 2164 | 11108 | 7016 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on license and asset sale |  |  | (2557) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment of goodwill | 9946 |  | 9946 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 16248 | 5260 | 38265 | 18487 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loss from operations | (14529) | (4694) | (32312) | (16078) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (64) | 7190 | (86) | 5167 |
| **Net income (loss)** | $(14593) | $2496 | $(32398) | $(10911) |
| **Net income (loss) per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | $(0.71) | $0.32 | $(1.61) | $(1.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | $(0.71) | $0.28 | $(1.61) | $(1.86) |
| **Shares used in computing net income (loss) per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | 20534 | 7735 | 20100 | 5869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | 20534 | 9035 | 20100 | 5869 |

---

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| | | |
|:---|:---|:---|
| **PERASO INC.** | **PERASO INC.** | **PERASO INC.** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** |
| **(In thousands, unaudited)** | **(In thousands, unaudited)** | **(In thousands, unaudited)** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and investments | $2906 | $15160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 3244 | 2436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 5348 | 3824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credits and receivables | 41 | 1099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred cost of net revenue | 600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other | 574 | 1159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 12713 | 23678 |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term investments |  | 2928 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 2225 | 2349 |
| &nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 6278 | 8355 |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill |  | 9946 |
| &nbsp;&nbsp;&nbsp;&nbsp; Right-of-use lease assets | 1147 | 617 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 123 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $22486 | $47951 |
| **Liabilities and Stockholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $1844 | $1937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 332 | 375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term lease liabilities | 687 | 379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other | 1817 | 2903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 4680 | 5594 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 470 | 288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Warrant liability | 2079 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 7229 | 5882 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stockholders' equity | 15257 | 42069 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $22486 | $47951 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** |
| **Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share** | **Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share** | **Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share** | **Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share** | **Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share** |
| **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** | **(In thousands, except per share amounts; unaudited)** |
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **GAAP net income (loss)** | $(14593) | $2496 | $(32398) | $(10911) |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Research and development | 767 | 630 | 3342 | 2782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Selling, general and administrative | 606 | 382 | 2388 | 1691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stock-based compensation expense | 1373 | 1012 | 5730 | 4473 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangibles (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Cost of net revenue | 358 |  | 1432 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Research and development |  | 86 |  | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Selling, general and administrative | 160 | - | 639 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total amortization of intangible assets | 518 | 86 | 2071 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment of goodwill | 9946 |  | 9946 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Business combination transaction costs (2) |  | 491 |  | 1628 |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of warrant liability | (19) | (7989) | (19) | (8102) |
| **Non-GAAP net loss** | $(2775) | $(3904) | $(14670) | $(12826) |
| **GAAP net income (loss) per share** | $(0.71) | $0.32 | $(1.61) | $(1.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Reconciling items |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Stock-based compensation expense | 0.07 | 0.13 | 0.29 | 0.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Amortization of intangible assets (1) | 0.03 | 0.01 | 0.10 | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Impairment of goodwill | 0.48 |  | 0.49 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Business combination transaction costs (2) |  | 0.06 |  | 0.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Change in fair value of warrant liability |  | (1.03) |  | (1.38) |
| **Non-GAAP net loss per share** | $(0.13) | $(0.51) | $(0.73) | $(2.19) |
| **Shares used in computing non-GAAP net loss per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | 20534 | 7735 | 20100 | 5869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | 20534 | 7735 | 20100 | 5869 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** |
| **Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit** | **Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit** | **Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit** | **Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit** | **Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit** |
| **(In thousands, except percentages; unaudited)** | **(In thousands, except percentages; unaudited)** | **(In thousands, except percentages; unaudited)** | **(In thousands, except percentages; unaudited)** | **(In thousands, except percentages; unaudited)** |
|  | **Three Months** <br> **Ended** |  | **Twelve Months** <br> **Ended** |  |
|  | **December 31, 2022** | | **December 31, 2022** | |
| **GAAP gross profit** | $1719 | 44.2% | $5953 | 40.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Reconciling items: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Amortization of intangibles | 358 | 9.2% | 1432 | 9.6% |
| **Non-GAAP gross profit** | $2077 | 53.4% | $7385 | 49.7% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** | **PERASO INC.** |
| **Reconciliation of GAAP and Non-GAAP Financial Information** | **Reconciliation of GAAP and Non-GAAP Financial Information** | **Reconciliation of GAAP and Non-GAAP Financial Information** | **Reconciliation of GAAP and Non-GAAP Financial Information** | **Reconciliation of GAAP and Non-GAAP Financial Information** |
| **(In thousands; unaudited)** | **(In thousands; unaudited)** | **(In thousands; unaudited)** | **(In thousands; unaudited)** | **(In thousands; unaudited)** |
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Reconciliation of GAAP income (loss) and adjusted EBITDA** |  |  |  |  |
| **GAAP net income (loss)** | $(14593) | $2496 | $(32398) | $(10911) |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Research and development | 767 | 630 | 3342 | 2782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Selling, general and administrative | 606 | 382 | 2388 | 1691 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 1373 | 1012 | 5730 | 4473 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangibles (1) | 518 | 86 | 2071 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment of goodwill | 9946 |  | 9946 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Business combination transaction costs (2) |  | 491 |  | 1628 |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of warrant liability | (19) | (7989) | (19) | (8102) |
| **Non-GAAP net loss** | (2775) | (3904) | (14670) | (12826) |
| &nbsp;&nbsp;&nbsp;&nbsp; EBITDA adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 250 | 246 | 986 | 1029 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense (3) | 5 | 809 | 16 | 2979 |
| **Adjusted EBITDA** | $(2520) | $(2849) | $(13668) | $(8818) |

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(1) Non-cash charges for amortization of intangibles arising from aquired assets. These charges are included in cost of net revenue and selling, general and administrative expenses.

(2) Business combination transaction costs are included in selling, general and administrative expenses.

(3) Includes amortization of debt discount.

10<br>