SEC Filing Document

Company: Palermo Technologies Inc.
Ticker: 
CIK: 2101355
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-04-02
Accession Number: 0002097570-26-000013
Exchange: 
SIC Code: 4899
SIC Description: Communications Services, NEC
URL: https://www.sec.gov/Archives/edgar/data/2101355/000209757026000013/pale-20260331_s1a2.htm

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technical vision centers on becoming the global standard for sovereign, regulator-auditable digital communications infrastructure. Beyond its current capabilities, the platform is evolving toward broader integration, greater autonomy, and deeper legal interoperability. Planned milestones include: ● Relay Federation with National Operators — Palermo will offer its protocol to sovereign states and national telecoms under licensing agreements, enabling them to operate independent but interoperable PalermoMesh relay clusters with shared compliance roots. ● Zero-Knowledge Audit Disclosure — Future versions of Palermo’s logging engine will support ZK-SNARKs to allow clients to prove regulatory adherence without revealing underlying message contents or identities. ● Decentralized Key Escrow — For regulated environments requiring lawful access under due process, Palermo will implement multi-party threshold key escrow with cryptographic guardrails and mandatory policy signatures. ● Hardware-Attested Forensics — Clients will gain the ability to produce court-admissible, enclave-signed transcripts of high-risk communications (e.g., regulated trades, political negotiations, war zone coordination).

●	Global Relay Reputation Index  — An open-source relay scoring framework based on enclave
audit consistency, regulatory performance, uptime, and threat history—providing clients with transparent relay selection guidance.

●	AI-Driven Legal Reasoning Models  — Palermo will integrate early-stage LLMs into its
compliance engine to support automated simulation of evolving policy regimes, enabling clients to model international legal change before
rollout.

These roadmap elements reinforce our mission: to offer a communications
substrate that is not only encrypted and decentralized, but governable, auditable, and legally defensible across borders.

Future Plans/Product Roadmaps

We have developed a phased product roadmap designed
to deliver incremental technical milestones, market validation, and regulatory readiness. The roadmap is synchronized with cybersecurity
trends, privacy legislation timelines, and pilot engagements with early adopters. It supports measurable business outcomes across compliance
enforcement, international deployment, and scale.

Phase I — Core Protocol Deployment (2025–2026)

The first phase emphasizes foundational technology development and
validation through real-world pilots. Deliverables include:

●	Release of the PalermoMesh relay node framework

●	Deployment of EnclaveNode attestation with trust anchors

●	Alpha release of SecureMail, Node Chat, and Safe Transfer

●	Launch of Palermo Console for administrative policy management

●	Integration with NIST PQC (post-quantum cryptography) finalist algorithms

●	Controlled pilots in Czechia, Germany, and Chile

The objectives of this phase include red-teaming,
cryptographic audits, and jurisdictional compliance rule testing. KPIs include latency benchmarks, packet loss rate, and audit log propagation
across sovereign relay nodes.

Phase II: Commercial SaaS Rollout (2026–2027)

The second phase focuses on monetization and broader institutional
adoption. Palermo will transition from pilot deployments to fully supported commercial offerings through direct sales, channel partners,
and national-scale RFPs.

Key initiatives include:

●	Release of Palermo’s SaaS offering, hosted in ISO 27001 and HIPAA-compliant data centers
across Europe and North America

●	Federation model for relay node orchestration, allowing enterprises to operate hybrid nodes under
PalermoMesh

●	Support for DORA-aligned audit mode, enabling financial and legal institutions to produce sealed
evidence chains for regulators

●	Rollout of the Palermo Compliance Engine SDK, allowing customers to build and simulate their own
compliance policies

●	Public API access for SIEM, identity management, and sovereign relay registration systems

●	Localization of interfaces and legal templates for Portuguese, Spanish, German, and French jurisdictions

This phase emphasizes ease of deployment for midsize regulated institutions
such as law firms, fintechs, and NGOs, supported by Palermo’s onboarding, training, and documentation programs.

Revenue in this phase will be driven by:

●	Per-seat and per-node license plans

●	Relay bandwidth service fees

●	Policy engine extensions and enterprise integrations

Phase III — Sovereign Relay Federation (2027–2028)

In its third phase, Palermo will expand its infrastructure offering
by licensing the PalermoMesh protocol to qualified government, telecom, and infrastructure partners. The goal is to create a federated
global backbone of regulator-certified relay operators.

Strategic objectives include:

●	Deployment of PalermoMesh by national telecoms and public sector integrators in
LATAM, Southeast Asia, and the EU

●	Establishment of the Palermo Relay Trust Registry, a globally accessible ledger of attested relay
nodes including uptime records, jurisdiction tags, and enclave audit hashes

●	Onboarding of public institutions (ministries of health, justice, finance, and national archives)
for sovereign-grade messaging, audit, and file transfer

●	Integration with state-sponsored identity and credentialing systems for verifiable cross-border
access (e.g., EU Digital Identity Wallet, India's Aadhaar-linked verifiable credentials)

●	Relay path transparency tooling for regulators to verify data residency, routing jurisdiction, and compliance
fidelity in real time

The goal is to position PalermoMesh as a 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.