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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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

Our enterprise sales strategy targets regulated institutions that
operate under strict privacy, data retention, and operational resilience requirements—primarily in finance, healthcare, legal services,
and critical infrastructure. These buyers are not driven solely by feature differentials or pricing, but by assurance, auditability, and
legal defensibility.

To align with this reality, we have developed a compliance-first
sales motion that mirrors the workflows of risk officers, data protection officers (DPOs), and general counsel teams.

Key Attributes of the Sales Process

• Legal-Centric Engagements

Sales cycles are initiated through legal or compliance channels rather than traditional IT buyers. Palermo works closely with clients'
DPOs to map jurisdictional requirements into enforceable policy templates within the Compliance Engine.

• Technical-Compliance Validation

Before procurement discussions begin, Palermo offers simulation workshops where clients test routing policies, metadata minimization behavior,
and enclave-sealed audit chains. This supports early-stage risk analysis and internal approval workflows.

• Procurement Advisory Integration

Palermo provides onboarding documentation tailored to regional procurement law. This includes templates for internal privacy impact assessments
(PIAs), vendor risk assessments, and regulator-facing compliance reports.

• CISO/DPO Co-Buy Models

Palermo targets dual-stakeholder approval from both the Chief Information Security Officer (CISO) and the General Counsel or DPO. Sales
materials include industry-specific audit case studies, threat models, and legal simulation outputs.

Sector-Specific Messaging

●	Financial Services : Palermo positions its audit chain and DORA alignment as a differentiator
for banks and fintechs operating in the EU. Messaging emphasizes verifiable audit trails, MiFID II-aligned communication control, and
metadata blinding to prevent insider trading exposure.

●	Healthcare : Focused on HIPAA, DORA, and GDPR overlays. Palermo highlights relay jurisdictional
fencing, enclave-verified PHI transmission, and forensic journaling for medical record traceability.

●	Legal and Arbitration : Emphasizes evidentiary-grade logs, metadata-shielded discovery processes,
and bar ethics compliance. Palermo offers specific support for privileged communications in cross-border cases.

●	Critical Infrastructure : Emphasizes mesh resilience and regulatory continuity. Palermo supports
air-gapped relay options, incident-triggered call journaling, and legal evidence trails suitable for SCADA environments.

Sales Tools and Resources

●	Regulatory Simulation Reports : Auto-generated simulations demonstrating how Palermo enforces
client-specific regulations in live or synthetic traffic environments.

●	Enclave Compliance Validator : A downloadable utility that allows prospective clients to test
Palermo’s enclave behaviors against their own governance frameworks.

●	Audit Chain Visualizers : Interactive tools showing how communication events are logged, sealed,
and exported for legal review.

Palermo’s enterprise sales process is not volume-based—it
is based on institutional defensibility. Each engagement is a structured compliance exercise with revenue mapped to risk mitigation,
regulatory alignment, and future legal interoperability.

Channel Partner Strategy

While Palermo’s sovereign pilots and enterprise sales drive
early institutional credibility, its long-term scale depends on a robust and jurisdiction-aware channel partner ecosystem. The Company’s
channel program is designed to create geographic, regulatory, and linguistic leverage through trusted in-region intermediaries who can
deploy, support, and extend PalermoMesh.

Rather than relying on generalist IT resellers, Palermo partners with regulator-facing
specialists, including:

●	Cybersecurity systems integrators with government or financial certifications

●	Regional compliance advisory firms (e.g., DPO services, ISO 27001 auditors)

●	Critical infrastructure solution providers (power, telecom, water)

●	Legal technology consultants serving arbitration and cross-border litigation clients

Tiered Partner Framework

Palermo’s
channel program is structured into four ascending tiers:

• Deployment Partner

• Trained to deploy and configure PalermoMesh components (EnclaveNode, Compliance
Engine, Palermo Console)

• Receives direct implementation revenue and Tier 1 support

• Compliance Partner

• Builds custom policy templates and legal rule packs on behalf of regional
clients

• Receives Marketplace royalties and audit services revenue

• Relay Federation Partner

• Operates verified Palermo relays under Trust Federation terms

• Earns traffic-based fees, certification incentives, and routing preference
in local sovereign deployments

• Strategic Integrator

• Works closely with Palermo’s core team to co-develop national-scale
mesh deployments

• May receive joint licensing rights, shared IP access, or cost-plus arrangements

Channel Enablement Infrastructure

To support partners at scale, Palermo provides:

●	Partner Training Portals  — Self-paced technical certification, legal template authoring
guides, and enclave troubleshooting labs

●	Regulatory Sandbox Access  — Simulated PalermoMesh environments where partners can
test country-specific configurations and prove policy enforcement to end clients

●	Revenue Forecasting Dashboards  — Tools that help partners model licensing, relay,
and audit income under varying deployment scenarios

●	Local Language Materials  — Palermo invests in localized UI/UX, training documents,
and regulator-facing policy documentation in Spanish, French, Portuguese, German, and Czech

In-Region Federation Incentives

Palermo offers targeted incentives for partners to establish relay
clusters in underrepresented jurisdictions, especially in:

●	Eastern Europe (e.g., Romania, Slovakia)

●	Latin America (e.g., Colombia, Peru)

●	Southeast Asia (e.g., Malaysia, Vietnam)

These incentives include reduced certification fees, joint R&D
grants, and shared client onboarding revenue.

Program Governance

All partners must adhere to Palermo’s Ethical Relay Operator
Charter, which prohibits data capture, traffic analysis, or unauthorized audit chain manipulation. Palermo enforces this through:

●	Enclave attestation logs

●	Relay trust score reputation systems

●	Periodic red-team simulations conducted by Palermo or third-party auditors

The channel partner strategy ensures Palermo can scale globally
without sacrificing legal trust or relay integrity, enabling local experts to deploy sovereign-grade infrastructure without central gatekeeping.

Developer Ecosystem and Open Standards Alignment

Palermo’s long-term strategic moat is not just in sovereign
deployments or compliance enforcement—but in enabling a global community of developers, auditors, legal technologists, and
protocol integrators to co-build and extend the platform. To that end, the Company has designed a developer ecosystem that is both technically
extensible and legally aware, with a focus on open standards, transparency, and auditable trust.

Core Developer Enablement Tools

Palermo offers a growing suite of tools and APIs designed to support
external contributors, policy authors, and systems integrators:

●	Relay SDK  — A developer framework for building EnclaveNode extensions. Use cases include
jurisdiction-specific routing policies, custom entropy validation logic, and integration with in-country KYC providers.

●	Policy Engine API  — Enables legal engineers to write, simulate, and deploy jurisdictional
rules as code, using a declarative logic format. Includes debugging hooks, policy inheritance, and conflict resolution tracing.

●	Audit Chain Explorer  — Open-source tool to visualize, validate, and verify audit trails
across relay paths. Used by clients, regulators, and independent security firms.

●	Enclave Attestation CLI  — Command-line utility for generating and validating enclave
identity proofs. Useful for DevOps teams and penetration testers validating secure relay nodes.

●	DID Anchor Registry  — Interoperable identity registry for anchoring decentralized
credentials. Supports standard W3C DID methods and verifiable credentials in JSON-LD and JWT formats.

These tools are distributed under hybrid licenses—core
modules under open licenses (Apache 2.0 or MPL 2.0), with commercial usage gates for enterprise plug-ins or regulatory-facing policy
bundles.

Community-Led Contributions

Palermo is cultivating a curated network of developer contributors
across cryptography, governance tech, and RegTech:

●	Cryptographic Research Contributors  — Palermo supports academic partnerships and public
code review grants to validate post-quantum hybrid models, zero-knowledge disclosures, and enclave-bound randomness schemes.

●	Legal Policy Maintainers  — Legal professionals and regulatory analysts are incentivized
to contribute reusable policy templates, jurisdictional rule packs, and audit frameworks to the Policy Marketplace.

●	Auditor Tool Builders  — Palermo offers bounties and infrastructure grants to firms
or individuals who develop visualizations, simulation validators, or export tools for forensic log handling and enclave evidence.

Open Standards Participation

Palermo actively contributes to global technical and regulatory standards
bodies:

●	ETSI ISG-CYBER  — Palermo has proposed metadata-resistant relay protocols for state-adopted
secure messaging use cases.

●	W3C DID Working Group  — Palermo’s identity team contributes to standardization
of privacy-preserving credential issuance and secure selective disclosure.

●	ISO/IEC 27036  — Palermo participates in advisory reviews of secure supply chain communication
standards.

●	IETF Privacy Enhancements and Assessments  — Palermo engages in draft recommendations
for header encryption, forward secrecy enforcement, and jurisdiction-aware routing in modern communications stacks.

By operating within standards bodies, Palermo ensures that its innovations
remain auditable, interoperable, and durable beyond any single company or jurisdiction.

Developer Engagement Metrics and Goals

By Q2 2026, Palermo aims to:

●	Support 1,000+ monthly active developers in testnet and regulatory sandbox environments

●	Onboard 200+ contributed policy packs covering 50+ national frameworks