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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traffic. ● Threat Signal Integration — Palermo relays subscribe to real-time intelligence feeds that include censorship events, infrastructure degradation, and geopolitical flashpoints. This input directly influences route selection in near real time. ● Auditable AI Constraints — While Palermo uses machine learning to enhance routing, every decision made by the model is logged and cryptographically signed. Clients can request full decision traces to verify lawful behavior. This intelligence layer allows PalermoMesh to maintain seamless operation in unpredictable conditions—without sacrificing security or compliance fidelity. Developer Ecosystem and Extensibility Palermo is designed not just as a closed communications platform, but as a developer-extensible trust framework. Institutions, regulators, and integrators can build directly atop the Palermo architecture via SDKs, APIs, and policy injection hooks. Current extensibility features include: ● Relay SDK — Developers can author custom EnclaveNode modules to enforce regional policy, log to local compliance tools, or integrate with third-party observability stacks.

●	Policy Scripting Interface  — Palermo’s Compliance Engine exposes a declarative
language for composing regulatory rules. Legal engineers can define conditional logic, sensitivity thresholds, data retention constraints,
and jurisdictional overrides.

●	Forensic Logging API  — Clients can request sealed relay logs, policy execution traces,
and encrypted chain-of-custody metadata for integration with audit systems or legal review pipelines.

●	Simulated Enforcement Sandboxes  — Legal and security teams can emulate PalermoMesh
behavior with synthetic traffic, test legal escalation scenarios, or preview outcomes of proposed jurisdictional policies.

●	Third-Party Relay Certification  — Organizations can become verified relay operators
under Palermo’s Trust Federation Program. This allows them to host PalermoMesh traffic with certified enclave conformance and regulatory
integrity.

These tools give institutions control over how Palermo adapts to their
sector, region, and threat model—without compromising on the foundational principles of zero-trust design, decentralized enforcement,
or post-quantum cryptographic certainty.

Scalability and Performance

PalermoMesh is engineered to scale horizontally across institutional
networks, multi-jurisdictional relay clusters, and constrained environments without sacrificing cryptographic assurance or protocol integrity.

Key scalability strategies include:

●	Decentralized Relay Formation  — New EnclaveNodes can be spun up independently and
begin participating in routing immediately after enclave attestation and trust domain alignment. There is no central provisioning bottleneck.

●	Dynamic Relay Assignment  — PalermoMesh uses probabilistic routing tables that adapt
in real time based on network load, latency, and legal constraints. This allows traffic to be load-balanced across trusted paths without
prior topology knowledge.

●	Connection Sharding  — Palermo supports parallel session channels across separate relay
paths for throughput-intensive tasks (e.g., video or large file transfer). These streams are reassembled only at the recipient’s
enclave.

●	Edge-Optimized Encryption  — Palermo’s cryptographic primitives are tuned for
ARM and low-power CPUs, enabling participation by constrained devices (e.g., IoT gateways, mobile phones) without excessive performance
cost.

●	Failover and Partial Network Continuity  — If certain relays or trust domains go offline
(e.g., due to cyberattack, political action, or infrastructure failure), Palermo reroutes traffic via quorum voting and enclave-trusted
fallback paths.

Internal stress testing and live pilot results show PalermoMesh
maintaining 99.995% uptime and <120ms average relay handoff latency across active EU-LATAM test corridors.

Our secure communications infrastructure platform, including the
Palermo software stack and PalermoMesh, is currently in the conceptual and planning stages of development and does not presently exist
as an operational product. vWhile we have conducted architectural planning, technical specifications development, and preliminary design
work, we have not completed development of a functional commercial product. The features, capabilities, and performance characteristics
described in this Registration Statement reflect our current development objectives and conceptual design goals and may not be fully implemented,
may be modified, or may not be developed at all. There can be no assurance that we will successfully develop or commercialize any of the
technologies described herein.

Roadmap and Strategic Direction

Palermo’s long-term 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.