SEC Filing Document

Company: Palermo Technologies Inc.
Ticker: 
CIK: 2101355
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0002097570-26-000016
Exchange: 
SIC Code: 4899
SIC Description: Communications Services, NEC
URL: https://www.sec.gov/Archives/edgar/data/2101355/000209757026000016/pale-20260512_s1a3.htm

Chunk 7 of 22
Word Count: 1494
Character Count: 11573

Document Content:

subscriptions should be made payable to “Palermo Technologies Inc.” We intend to engage a transfer agent and issue the shares within 90 after the close of the entire offering, or as soon thereafter as practicable. DESCRIPTION OF OUR BUSINESS OVERVIEW We are a cutting-edge software infrastructure company committed to redefining the architecture of secure digital communications. We operate at the intersection of national sovereignty, cryptographic security, and regulatory compliance. We are building a sovereign-grade, AI-enhanced encrypted communications mesh platform tailored to governments, regulated enterprises, legal professionals, NGOs, and mission-critical users operating under regulatory scrutiny or in high-risk threat environments. HISTORY We were incorporated in the State of Wyoming on July 2, 2025. In anticipation of launching our business, we have incorporated the Company and developed its business plan of operations. Our President has identified prospective customers, identified broad target markets and determined effective ways to market our technology. Current Operation

We are an early-stage company focused on developing
our core secure communications infrastructure platform. To date, our operations have primarily consisted of research, architectural design
and prototype development of our underlying technology. While we have not yet generated any revenue, we have begun initial outreach and
early sales efforts aimed at establishing pilot programs and building our commercial pipeline. Our near-term priorities include completing
functional prototypes, expanding customer evaluations and preparing the foundation for broader commercialization.

We are currently conducting detailed technical specifications
development and overall systems architecture planning for our platform, including evaluating scalability, security, and integration requirements.
In parallel, we are researching and evaluating potential technology partners, third-party service providers and development firms that
may assist us in building, deploying, and maintaining our platform. We are also preparing comprehensive requirements documentation for
our secure communications infrastructure, with a focus on data protection, encryption standards, user authentication protocols and regulatory
compliance considerations. In addition, we are conducting preliminary market research, analyzing competitive offerings and identifying
target customer segments in order to refine our product positioning and inform our go-to-market strategy.

Business Operations

Our vision is to create a verifiable, trustless
communication substrate for the post-cloud, post-quantum world—where single points of failure are eliminated, surveillance
risk is structurally mitigated, and compliance is not a bolt-on but an intrinsic design constraint. The Palermo platform will
deliver secure communications via five converging channels: email, messaging, file transfer, voice/video conferencing, and
decentralized identity. All services run atop our proprietary peer-to-peer infrastructure protocol, PalermoMesh.

Products and Services

The Palermo software stack will include the following composable modules:

●	SecureMail  — A decentralized, post-quantum encrypted email protocol with full content
and metadata protection. Inbox discovery uses zero-knowledge proofs, and header encryption thwarts traffic correlation.

Current Status: Requirements gathering is complete
with email protocol specifications documented. Evaluating end-to-end encryption libraries and key management approaches. UX wireframes
for inbox and composition interfaces are under review, with accessibility standards being incorporated into design documentation.

Based on work completed to date, we estimate SecureMail
has approximately 8 months remaining to reach beta release, with an estimated $24,000 - $39,000 in additional development costs required.

●	Node Chat  — A peer-to-peer ephemeral messaging system optimized for adversarial environments.
Messages auto-expire and route through obfuscated relays with forward secrecy.

Current Status: Real-time messaging protocol requirements have
been defined with WebSocket and WebRTC transport layers identified as primary candidates. Message persistence strategy and synchronization
logic across devices are being architected. Security audit framework for message encryption at rest and in transit is in draft form.

Based on work completed to date, we estimate Node Chat
has approximately 8 months remaining to reach beta release, with an estimated $18,000 - $29,250 in additional development costs required.

●	Safe Transfer  — A tamper-evident, audit-traceable file exchange module with conditional
expiry, geo-fencing, and embedded watermarking for evidentiary assurance.

●	Current Status: File chunking and streaming protocols are being researched with particular attention
to resumable transfer capabilities. Initial work on zero-knowledge proof integration for sender/receiver verification is underway. Compression
algorithms and bandwidth optimization strategies are being benchmarked for various file types and sizes.

Based on work completed to date, we estimate Safe Transfer has
approximately 16-20 months remaining to reach beta release, with an estimated $21,000 - $32,500 in additional development costs required.

●	VoiceShield  — Encrypted video/voice with enclave-governed call logic. Integrates real-time
watermarking and evidentiary journaling suitable for legal admissibility.

Current Status: Voice codec evaluation is ongoing with
focus on low-latency, high-quality options compatible with encryption layers. Signal processing pipeline for real-time voice obfuscation
and caller ID protection is being prototyped. Integration points with existing VoIP standards (SIP, RTP) are being documented to ensure
broad compatibility.

Based on work completed to date, we estimate VoiceShield
has approximately 20-24 months remaining to reach beta release, with an estimated $27,000 - $42,250 in additional development costs required.

●	DID Anchor  — A decentralized identity and credentialing system built around W3C-compliant
verifiable credentials and selective disclosure frameworks.

●	Current Status: Decentralized identifier specification review is complete with W3C DID standards being
adopted as baseline. Blockchain anchor selection criteria have been established, evaluating multiple distributed ledger technologies for
immutability and cost efficiency. Resolver architecture and key recovery mechanisms are in design phase.

Based on work completed to date, we estimate DID Anchor
has approximately 16-20 months remaining to reach beta release, with an estimated $15,000 - $26,000 in additional development costs required.

Each of these modules will be integrated at
the protocol level into PalermoMesh, our jurisdiction-aware, sovereign-routing network layer. PalermoMesh will allow any participating
device or institution to act as a relay node. These nodes form a self-healing communications mesh that dynamically routes encrypted payloads
based on jurisdictional legality, network latency, bandwidth, and real-time threat intelligence.

Key Enabling Technologies

●	EnclaveNode  — Each relay node runs inside a trusted execution environment (TEE), ensuring
sensitive computations are isolated from external threats. The enclave enforces routing logic, compliance policy execution, entropy verification,
and tamper-proof logging.

●	QuantumSafeStack  — Palermo integrates NIST-standard post-quantum cryptographic primitives
(Kyber, Dilithium, Falcon) with hybrid fallback algorithms for legacy compatibility. Key exchange, message encryption, and identity authentication
are all quantum-resistant by default.

●	Compliance Engine  — This programmable layer enables simulation and enforcement of
jurisdiction-specific legal policies. It supports GDPR, HIPAA, NIS2, DORA, LGPD, and the EU AI Act. Institutions can model compliance
logic before deployment and export evidence-grade audit trails to regulatory bodies.

Our core innovation lies in our cryptographically assured, decentralized,
jurisdiction-aware communications infrastructure. We have developed a modular technology stack built for zero-trust environments, post-quantum
threats, and multilateral compliance enforcement. This section provides a detailed breakdown of our proprietary systems, their technical
underpinnings and the architectural choices that distinguish the platform from conventional secure communication offerings.

Architecture Summary

At the heart of our technology is PalermoMesh, a peer-to-peer
encrypted relay protocol that routes messages, files, and identity proofs across a mesh of trusted execution environments (TEEs). The
network is jurisdiction-aware: it avoids routing traffic through geopolitical regions that introduce legal or security risk to the
data payload or to the user.

PalermoMesh will be powered by EnclaveNode, a relay container
built on hardware-backed enclaves (e.g., Intel SGX, ARM TrustZone, AMD SEV). Each node executes routing decisions, compliance filtering,
entropy validation, and secure message handling within the enclave boundary, ensuring that no unencrypted or unverified data touches
the host operating system.

Above the transport layer, Palermo will offer five modular communication
protocols:

●	SecureMail  — A decentralized, SMTP-independent email system with encrypted headers
and inbox obfuscation.

●	Node Chat  — Forward-secret ephemeral chat channels with self-expiring messages and
session-layer anonymization.

●	Safe Transfer  — File transfer with content-based access policies, tamper-evident audit
logs, and relay-chain watermarking.

●	VoiceShield  — Peer-to-peer video/voice streaming with enclave-verified integrity checks,
watermark injection, and call journaling.

●	DID Anchor  — A verifiable identity framework built on Decentralized Identifiers (DIDs),
Verifiable Credentials, and selective disclosure logic.

These protocols are interoperable but deployable
independently depending on the client’s regulatory obligations, privacy threat model, or operational environment.

Security Model

We will implement a layered security model grounded in post-quantum
cryptography, zero-trust networking, and evidence-based trust validation. These principles govern every interaction across PalermoMesh,
including client sessions, relay handoffs, data exchanges, and compliance logic execution.

Key components will include:

●	Post-Quantum Readiness  — All communications will use hybrid encryption combining Kyber,
Dilithium, and Falcon. This ensures future-proofed confidentiality even if state-level quantum decryption becomes available.

●	Zero-Trust by Design  — Palermo will not rely on trusted IP ranges or infrastructure
perimeter assumptions. Every node, relay, and identity assertion must be cryptographically attested prior to each session.

●	Encrypted Metadata and Headers  — PalermoMesh will encrypt not just message contents,
but also routing metadata. Sender identity, destination coordinates, and session identifiers are obfuscated and periodically rekeyed.

●	Redundancy and Relay Diversity  — Palermo will route traffic through diverse geopolitical
and infrastructure paths. Redundant relays will ensure high availability and eliminate single points of compromise.

The system will be designed to preserve confidentiality, integrity,
and legal defensibility even under nation-state surveillance, infrastructure failure, or regulatory collision.

Compliance-as-Code Framework