ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2024
Peraso Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2024. The company reported total revenues of $23.1 million, a decrease of 12% compared to the prior year. Net loss for the year was $14.1 million, or $0.29 per share, compared to a net loss of $10.3 million, or $0.21 per share, in the prior year. The company’s cash and cash equivalents decreased to $12.3 million as of December 31, 2024, from $24.1 million as of December 31, 2023. The company’s total assets decreased to $34.4 million as of December 31, 2024, from $44.1 million as of December 31, 2023. The company’s common stock was listed on the Nasdaq Stock Market under the ticker symbol PRSO, and as of March 18, 2025, there were 4,843,041 shares outstanding.
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 its mmWave technology.
Peraso also had a memory product line comprising its Bandwidth Engine IC products, but in May 2023, the company initiated an end-of-life (EOL) for these products after its sole foundry, TSMC, informed Peraso that it would be discontinuing the foundry process used to produce the wafers necessary to manufacture the memory ICs.
Peraso has incurred net losses in recent years, resulting in significant negative cash flows that have required the company to raise substantial additional capital. This raises substantial doubt about Peraso’s ability to continue as a going concern. The company will need to increase revenues substantially beyond past levels in order to generate sustainable operating profit and sufficient cash flows to continue operations without additional capital raises.
Recent Developments
In 2024, Peraso entered into an “at the market” offering program, under which it may issue and sell shares of common stock through Ladenburg Thalmann & Co. Inc. as agent. Peraso also conducted a warrant inducement offering, where it received net proceeds of approximately $2.6 million.
Global economic disruptions due to world unrest, inflation, and recessionary fears have negatively impacted Peraso’s business and access to capital markets.
Critical Accounting Policies and Estimates
Peraso’s significant accounting policies and estimates include revenue recognition, deferred tax valuation allowance, accounting for derivatives and liability-classified instruments, and stock-based compensation.
Results of Operations
Net revenue increased in 2024 compared to 2023, primarily due to higher shipments of Peraso’s memory IC products, which offset declines in mmWave product sales. Gross profit also increased significantly in 2024 due to the product mix shift and lower inventory write-downs.
Research and development expenses decreased in 2024 due to workforce reductions and targeted cuts in long-term projects. Selling, general, and administrative expenses remained relatively flat year-over-year.
Peraso recorded $2.1 million in severance and software license obligations in 2024 related to employee layoffs and the termination of certain software licenses.
Liquidity and Capital Resources; Changes in Financial Condition
Peraso had $3.3 million in cash and cash equivalents as of December 31, 2024, up from $1.6 million at the end of 2023. The company used $4.6 million in cash from operations in 2024, primarily due to its net loss.
Peraso expects to continue incurring operating losses in 2025 as it winds down its memory product line and invests in the development of its mmWave products. The company believes its existing cash will enable it to meet capital needs through at least the second quarter of 2025, but there is substantial doubt about its ability to continue as a going concern if it is unable to raise additional capital.
Peraso is currently seeking additional financing and may need to implement further cost reduction strategies if it is unsuccessful in these efforts. Raising additional capital could result in dilution to existing shareholders or restrictive terms that limit the company’s flexibility.
