Peraso Inc. — FY2022 Form 10-K
Reporting period: Fiscal year ended December 31, 2022; filed March 29, 2023. Peraso is a fabless semiconductor company focused on mmWave chips and antenna modules, alongside legacy memory ICs, engineering services and IP licensing. The 2021 comparison is affected by the December 2021 reverse acquisition: reported results reflect Peraso Technologies as the accounting acquirer and do not include MoSys results before the acquisition date.
Financial performance and liquidity
| Metric | FY2022 | FY2021 |
|---|---|---|
| Total revenue | $14.868 million | $5.679 million |
| Gross profit / gross margin | $5.953 million / 40% | $2.409 million / 42% |
| Operating expenses | $38.265 million | $18.487 million |
| Loss from operations | $32.312 million | $16.078 million |
| Net loss | $32.398 million | $10.911 million |
| Net loss per share | $1.61 | $1.86 |
| Cash used in operating activities | $16.020 million | $12.016 million |
Revenue rose approximately 162%, driven mainly by acquired memory IC sales ($7.722 million versus $0.150 million) and mmWave module sales ($3.170 million versus $1.101 million). Stand-alone mmWave IC revenue declined to $3.289 million from $3.566 million. Gross margin fell two percentage points, primarily because modules carry lower margins than ICs. R&D expense was $19.768 million and SG&A was $11.108 million.
At year-end, cash and cash equivalents were $1.828 million and investments were $1.078 million, totaling approximately $2.906 million, down from $18.088 million a year earlier. Total assets were $22.486 million; current liabilities were $4.680 million. Total liabilities were $7.229 million, including $1.157 million of lease liabilities and a $2.079 million warrant liability. The filing reports no outstanding conventional loan balance at year-end. The company raised $2.1 million net in a November 2022 stock-and-warrant offering.
Material changes and unusual items
- Net loss increased from $10.911 million to $32.398 million, reflecting higher operating expenses and a $9.946 million noncash goodwill impairment charge. Goodwill was reduced to zero.
- The company recorded a $2.557 million gain on the Intel license and patent assignment transaction as a reduction of operating expenses. It received $3.0625 million at closing in August 2022 and received the $437,500 holdback in January 2023.
- A warrant fair-value gain of $1.595 million partially offset expenses; the associated liability is remeasured each reporting period and can make earnings volatile. The offering also generated $1.576 million of warrant issuance financing cost.
- Four customers each accounted for at least 10% of 2022 revenue: Nokia (26%), WeLink (21%), CEAC (16%) and F5 (11%). Four customers represented approximately 79% of year-end receivables.
Outlook, risks and contingencies
Management expected 2023 revenue to increase, principally through mmWave products and the effects of 2022 price increases, while memory product sales were expected to decline. Management also expected lower R&D and SG&A expenses following cost reductions. The filing reports a February 2023 workforce reduction of five positions and announced annualized operating-expense reductions of approximately $5 million. Separately, management expected the Intel transaction to reduce annual operating expenses by approximately $2.7 million; the filing does not clearly state whether these reductions overlap.
The company expects continued operating losses and cash expenditures above receipts for at least the next 12 months. Management and the auditor state that substantial doubt exists about Peraso’s ability to continue as a going concern absent additional capital or improved operating cash flow. The company was seeking financing; availability and terms were uncertain and equity financing could dilute holders. Other significant risks include customer concentration, lengthy design-in and sales cycles, reliance on third-party manufacturers and suppliers, margin pressure, and the uncertain outlook for legacy memory products. Peraso also disclosed a Nasdaq minimum-bid-price deficiency notice received February 1, 2023, with a compliance deadline of July 31, 2023; it had not regained compliance as of the filing date.
Most important facts for investors to verify
- Whether Peraso secured sufficient financing after year-end to address the disclosed going-concern uncertainty, and its subsequent cash burn.
- Whether the 2023 revenue outlook was achieved, including mmWave module demand, customer design wins and the expected decline in memory sales.
- Actual gross-margin trends and the realized impact of pricing changes, cost reductions and any overlap between announced savings.
- Customer and receivables concentration, collections, inventory quality, and exposure to supply-chain constraints.
- Nasdaq listing compliance status and the effect of the outstanding warrants and any further equity financing on dilution and reported earnings.