SEC Filing Document

Company: Palermo Technologies Inc.
Ticker: 
CIK: 2101355
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-03-05
Accession Number: 0002097570-26-000011
Exchange: 
SIC Code: 4899
SIC Description: Communications Services, NEC
URL: https://www.sec.gov/Archives/edgar/data/2101355/000209757026000011/pale-20260304_s1a1.htm

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trusted global routing standard for lawful digital secrecy, with scalable deployment models and independently certifiable components. This phase also introduces: ● Tiered licensing agreements by jurisdiction ● Sovereign-level support SLAs ● Palermo’s contribution to open standards via ETSI, ISO, and IETF Technical Milestones and R&D Plan Palermo’s roadmap is anchored in aggressive, high-assurance technical progress. Beyond functional delivery, the Company is investing in research initiatives to drive defensibility, certification, and futureproofing. Key milestones and in-progress R&D domains include: 1. Post-Quantum Readiness ● Palermo is adopting hybrid PQC implementations in compliance with NIST final recommendations (Kyber for key exchange, Dilithium/Falcon for signatures). ● Planned: FIPS-140-3 validated cryptographic module and secure enclave-bound key handling logic. 2. AI-Driven Compliance Routing ● PalermoMesh will integrate enclave-sealed ML models to dynamically route traffic based on legal risk vectors (e.g., latency, jurisdictional exposure, threat feeds). ● Planned: Audit-traceable inference logs and override constraints for legal review.

3. Audit Cryptography and Verifiability

●	Palermo is testing zero-knowledge proof frameworks for log disclosure (e.g., zk-STARKs for traffic compliance
without content leakage).

●	Planned: Open-source compliance auditor toolchain and user-verifiable audit forks.

4. Trusted Execution & Side-Channel Mitigation

●	Internal benchmarks include relay node resistance to side-channel attacks (e.g., timing, cache leakages)
under production load.

●	Planned: Formal verification of EnclaveNode logic using tools such as Coq and Verifpal.

5. DID Anchor Extensions

●	Adding support for cross-border credential arbitration, delegated signature chains, and identity escrow.

●	Planned: Integration with EU Digital Wallet and W3C DID methods registry.

These initiatives maintain Palermo’s advantage as a compliance-native
cryptographic platform, not just a secure messaging layer.

We have discussed potential agreements, anticipated pilot programs,
projected metrics, performance targets, and development timelines in this Registration Statement. These items reflect management’s
current plans, objectives, and expectations based on preliminary market research, internal planning and informal discussions with prospective
partners. However, we have no operating history, and none of these potential arrangements, programs, targets, or timelines are binding
or assured.

Our ability to enter into agreements, launch pilot programs, achieve
performance metrics, or meet projected development milestones will depend on numerous factors, including successful platform development,
availability of funding, hiring of qualified personnel, regulatory considerations, market acceptance, and general economic conditions.
There can be no assurance that any such agreements will be executed, that pilot programs will be implemented, that projected metrics or
targets will be achieved, or that anticipated timelines will be met.

Accordingly, investors should not place undue reliance on these
forward-looking statements, which are subject to significant risks and uncertainties, many of which are beyond our control.

We currently estimate that it will take approximately 18 to 24
months to develop and launch a minimum viable product. We estimate that funding of approximately $200,000 will be required to complete
the initial development phase, with an additional $1 million anticipated to support market launch, commercialization efforts, and platform
scaling. These timeline and funding estimates are preliminary and are based on our current expectations and assumptions. However, we cannot
guarantee that we will be able to raise sufficient capital to meet these development milestones or fund our anticipated growth initiatives.
If we are unable to obtain adequate financing on acceptable terms, or at all, we may be required to delay, scale back, or discontinue
aspects of our development and commercialization plans. Actual development timeframes and capital requirements may vary materially depending
on technical challenges, hiring and vendor availability, regulatory considerations, market conditions and other factors beyond our control.

Sales & Marketing

Our go-to-market (“GTM”) strategy is designed
to meet the complex legal, technical, and procurement challenges of entering high-compliance jurisdictions. Unlike traditional enterprise
software vendors, we must win not only technical validation, but legal trust and regulatory endorsement. As such, we have engineered a
multiphase GTM approach built around jurisdictional readiness, compliance-led messaging and strategic pilot deployment.

Our strategy blends enterprise consultative sales,
public-sector procurement playbooks, channel partner enablement, and open-source developer traction. The emphasis is on cultivating trust
in sovereign markets where encryption regulations, data residency mandates, and policy interoperability are business-critical—not
just IT preferences.

The GTM framework is built around four pillars:

1.	Sovereign Pilot Programs to seed long-term deployments with governments and public institutions.

2.	Enterprise Compliance Sales to secure regulated private-sector clients.

3.	Partner Federation Enablement to scale node deployment and local support capacity.

4.	Thought Leadership + Developer Ecosystem to build credibility, standards influence, and network effects.

Customers

We currently have no customers. The services we provide
are tailored for organizations where secure, compliant communication is not optional—but existential. These include:

·	Government agencies and ministries — For encrypted diplomatic channels,
legal compliance under state secrecy acts, and evidence-grade communications.

·	Regulated financial institutions — Banks, fintechs, and insurance
firms managing customer PII and cross-border financial data under overlapping regulatory mandates.

·	Healthcare and life sciences — Research hospitals, genome labs, and
pharmaceutical regulators needing HIPAA/DORA/EMA-aligned auditability.

·	Legal services and arbitration — Global law firms managing client
confidentiality across EU-U.S. data transfer zones.

·	Press and human rights NGOs — Especially in regions experiencing surveillance,
censorship, or political unrest.

·	Critical infrastructure operators — Power, water, and telecom providers
subject to national cybersecurity regulations.

Research and Development; Intellectual Property

As an early-stage company, research and development
forms the foundation of our business strategy and value proposition. Our efforts are centered on designing and validating next-generation
architectures for secure digital communications that combine high performance, zero-trust principles, and resilience against emerging
threats.

We have not yet commercialized
any products or generated revenue. Our primary activities to date have included architectural design, prototype development, pilot testing
with select partners, and intellectual property protection. R&D expenses have comprised the majority of our operating expenditures
since inception and are expected to increase as we expand our engineering team, accelerate prototype validation, and transition toward
limited-scale deployments.

We do not own any patents and trademarks at this time,
but we may pursue patents and or trademarks in the future.

Plan of Operations

Our go-to-market (“GTM”) strategy is designed
to meet the complex legal, technical, and procurement challenges of entering high-compliance jurisdictions. Unlike traditional enterprise
software vendors, we must win not only technical validation, but legal trust and regulatory endorsement. As such, we have engineered a
multiphase GTM approach built around jurisdictional readiness, compliance-led messaging and strategic pilot deployment.

Our strategy blends enterprise consultative sales,
public-sector procurement playbooks, channel partner enablement, and open-source developer traction. The emphasis is on cultivating trust
in sovereign markets where encryption regulations, data residency mandates, and policy interoperability are business-critical—not
just IT preferences.

The GTM framework is built around four pillars:

5.	Sovereign Pilot Programs to seed long-term deployments with governments and public institutions.

6.	Enterprise Compliance Sales to secure regulated private-sector clients.

7.	Partner Federation Enablement to scale node deployment and local support capacity.

8.	Thought Leadership + Developer Ecosystem to build credibility, standards influence, and network effects.

Sovereign Pilot Deployment Framework

Our most critical go-to-market vector is its sovereign pilot
program strategy, which targets public-sector institutions operating under national or supranational regulatory regimes. These pilots
are not positioned as “trials” of a product—they are structured as co-regulatory deployments that allow governments
to validate PalermoMesh under their specific legal and operational mandates.

Objectives of the Pilot Program

• Jurisdictional Legal Review — We collaborate with
local legal teams and regulators to simulate enforcement of local laws (e.g., GDPR, NIS2, HIPAA, LGPD) within our programmable Compliance
Engine.

• Enclave Audit Simulation — EnclaveNode logs and compliance
proof chains are reviewed by internal and third-party auditors for evidentiary admissibility and integrity resilience.

• Crisis Simulation — Palermo is tested in scenarios
involving degraded infrastructure, censorship, and adversarial packet injection to demonstrate resilience under stress.

Each pilot is mapped to a regulatory use case (e.g., cross-border
judicial messaging, health record coordination, state secrets handling) and includes a multi-agency working group composed of IT, legal,
cybersecurity, and compliance stakeholders.

Deployment Timeline (Typical 90–120 Days)

●	Day 0–30: Legal & Compliance Alignment

o	Regulatory sandbox integration

o	DID Anchor provisioning for user roles

o	Sovereign relay route policy tuning

●	Day 31–60: EnclaveNode Deployment & Mesh Activation

o	Relay nodes provisioned in-country

o	Local enclave attestation ceremony with government CA or neutral verifier

●	Day 61–90: Data Flow Simulation & Audit Forking

o	Controlled data flows sent across public-private relay mesh

o	Parallel audit chains exported to regulator for review

o	Policy enforcement and override behavior tested live

Current and Planned Pilots

●	Czech Republic : Ministry of Health and Data Protection Authority — testing metadata-blind
health record transfer and archival compliance.

●	Chile : Cyber Defense Unit and Civil Registry — joint initiative for encrypted communication
between justice and civil services.

●	Germany : Localized relay mesh for inter-municipal legal correspondence using DORA + NIS2 simulators.

These sovereign pilot frameworks enable Palermo to prove alignment
before procurement, shorten time-to-contract, and embed the Company within national digital infrastructure roadmaps.

Enterprise Compliance Sales Motion