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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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

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:

1. Deployment Partner

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

Receives direct implementation revenue and Tier 1 support

2. Compliance Partner

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

Receives Marketplace royalties and audit services revenue

3. Relay Federation Partner

Operates verified Palermo relays under Trust Federation terms

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

4. 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: