Peraso Inc. reported its financial results for the quarter ended September 30, 2024, with a net loss of $2.3 million, compared to a net loss of $1.9 million for the same period in 2023. The company’s revenue decreased by 12% to $2.5 million, primarily due to a decline in sales of its Wi-Fi products. The company’s cash and cash equivalents decreased by $1.4 million to $6.3 million, and its total assets decreased by 10% to $23.4 million. The company’s management attributed the decline in revenue to increased competition and a shift in customer demand towards lower-margin products. Despite the challenges, the company remains focused on developing new products and expanding its sales channels to drive growth and increase its market share.
Overview
Peraso Inc. (formerly known as MoSys, Inc.) is a fabless semiconductor company that specializes in the development of mmWave semiconductors, primarily in the unlicensed 60 GHz spectrum band for 802.11ad/ay-compliant devices and in the 28⁄39 GHz spectrum bands for 5G-compliant devices. The company derives revenue from selling semiconductor devices and antenna modules based on these mmWave technologies.
In December 2021, the company completed the acquisition of Peraso Technologies Inc. and changed its name to Peraso Inc. The company also acquired a memory product line comprising its Bandwidth Engine IC products. However, in May 2023, the company initiated an end-of-life (EOL) for its memory IC products due to the discontinuation of the foundry process used to manufacture these products.
Peraso has incurred significant net losses in recent years, resulting in negative cash flows that have required the company to raise substantial additional capital. As of September 30, 2024, the company had $1.3 million in cash and cash equivalents and $0.4 million in working capital. This raises substantial doubt about the company’s ability to continue as a going concern.
To address its financial challenges, Peraso has implemented cost-reduction initiatives, including headcount reductions, and is seeking additional financing. The company has also entered into an “at-the-market” offering agreement to raise additional capital through the sale of common stock. However, there is no assurance that the company will be able to obtain sufficient capital on acceptable terms to fund its operations and execute its business strategy.
Risks and Uncertainties
Peraso faces a number of risks and uncertainties, including competition in the industry, liquidity requirements, rapidly changing customer requirements, limited operating history, and the volatility of public markets. The company may be unable to access the capital markets, and additional capital may only be available on terms that could be significantly detrimental to existing stockholders and the business.
Critical Accounting Policies and Estimates
Peraso’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP) in the United States. The preparation of these financial statements requires the company to make certain estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. As of September 30, 2024, there have been no material changes to the company’s significant accounting policies and estimates.
Results of Operations
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Liquidity and Capital Resources; Changes in Financial Condition
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Off-Balance Sheet Arrangements and Indemnifications
Peraso does not have any off-balance sheet arrangements, and the company provides standard indemnifications in the ordinary course of business.
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