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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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 delivers 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 includes 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. ● Node Chat — A peer-to-peer ephemeral messaging system optimized for adversarial environments. Messages auto-expire and route through obfuscated relays with forward secrecy. ● Safe Transfer — A tamper-evident, audit-traceable file exchange module with conditional expiry, geo-fencing, and embedded watermarking for evidentiary assurance.

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

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

Each of these modules is integrated at the protocol level into PalermoMesh,
our jurisdiction-aware, sovereign-routing network layer. PalermoMesh allows 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 is 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 offers 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 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 include:

●	Post-Quantum Readiness  — All communications 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 does 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 encrypts 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 routes traffic through diverse geopolitical
and infrastructure paths. Redundant relays ensure high availability and eliminate single points of compromise.

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

Compliance-as-Code Framework

A cornerstone of Palermo’s architecture is the Compliance
Engine, which treats regulatory requirements as computable, enforceable code at the protocol level. Unlike traditional overlay
systems that bolt on compliance via logging or reporting layers, Palermo embeds rule enforcement directly into message routing and relay
behavior.

Key elements include:

●	Regulatory Domain Modules  — Palermo ships with modular templates for GDPR, HIPAA,
DORA, NIS2, Brazil’s LGPD, and the EU AI Act. These can be layered, forked, or combined depending on client geography and sector.

●	Inline Policy Execution  — All traffic through PalermoMesh is inspected against live
compliance rules. Messages that violate jurisdictional controls (e.g., cross-border restrictions, classification mismatches) are automatically
blocked or rerouted.

●	Audit Trail Forking  — Each transaction generates parallel logs: one for internal recordkeeping
and one for regulatory disclosure. Logs are hash-signed, time-stamped, and optionally sealed through notary services or blockchain anchoring.

●	Rule Chain Simulation  — Before deployment, legal teams can simulate how their compliance
rules will behave using test data. This avoids operational disruptions and helps align policy code with real-world regulatory interpretation.

This approach ensures that legal obligations aren’t just “advised”
but actually enforced, measurable, and defensible under audit, litigation, or breach conditions.

PalermoMesh Protocol Internals

The PalermoMesh protocol defines a custom transport format, routing
system, and peer authentication model tailored for dynamic, trustless environments. It is optimized for legal accountability,
cryptographic certainty, and survivability across adversarial infrastructure.

Core mechanics include:

●	Routing Tables  — Each EnclaveNode maintains compact routing tables sorted by latency,
jurisdictional trust scores, and threat reputation. Updates are signed deltas exchanged with trusted peers at defined intervals.

●	Session Handshake  — New sessions initiate a handshake involving mutual enclave attestation,
post-quantum key agreement, and jurisdictional policy agreement. Only attested nodes with aligned compliance domains are allowed to participate.

●	Relay Quorum Paths  — Sensitive communications (e.g., legal or evidentiary materials)
are routed through multiple relays in parallel. Each adds an attested timestamp, jurisdictional proof, and cryptographic signature for
chain-of-custody.

●	Entropy Ledger  — Palermo enforces entropy integrity by requiring nodes to log entropy
source usage and pass randomized tests before key generation. This protects against relay poisoning and predictable session seeds.

●	Obfuscation Layers  — The protocol incorporates random packet padding, dummy session
traffic, and dynamic timing intervals to mask usage patterns and defeat metadata analysis.

Together, these internals ensure that PalermoMesh operates not only
as a communications fabric but also as a trust execution layer with legal-grade verifiability and quantum-hardened privacy.

Routing Intelligence and Optimization

PalermoMesh incorporates an adaptive routing engine powered by enclave-resident
AI models. These models continuously analyze relay health, threat landscapes, and jurisdictional signals to optimize routing while preserving
legal and privacy constraints.

Key components of Palermo’s routing intelligence include:

●	Latency Forecasting  — The engine predicts short-term congestion across relay clusters,
adjusting routes proactively to avoid packet loss or jitter.

●	Jurisdictional Risk Avoidance  — Messages are steered away from regions flagged by
clients or Palermo policy as hostile, surveilled, or legally non-aligned—even if latency would otherwise favor those paths.

●	Relay Reputation Scores  — Each EnclaveNode accumulates a trust score based on uptime,
cryptographic attestation consistency, audit pass rates, and previous routing performance. Low-scoring relays are avoided or assigned
non-sensitive 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.