Core Insights - FatPipe, Inc. is hosting a webinar on August 7, 2025, to discuss its leadership in the software-defined networking market and its high-margin subscription-based business model [1][2][3] - The company has over 2,500 enterprise customers across various sectors, including government, healthcare, and finance, and offers patented technology for secure connectivity [3] - FatPipe's financial performance includes a gross margin of over 90% and a net margin of 24.4% for fiscal 2024, indicating strong profitability and capital efficiency [3] Company Overview - FatPipe, Inc. is a pioneer in software-defined wide area networking (SD-WAN) and has introduced Total Security 360, a comprehensive cybersecurity and network security solution [6] - The company holds 12 U.S. patents related to multipath, software-defined networking and has a global presence with over 200 resellers [6] - The SD-WAN market is projected to exceed $49 billion by 2030, positioning FatPipe for significant growth opportunities [3]

SALT LAKE CITY, July 30, 2025 /PRNewswire/ -- FatPipe, Inc. (NASDAQ: FATN) ("FatPipe" or the "Company"), a pioneer in enterprise-class, application-aware, secure software-defined wide area network ("SD- WAN") solutions that provide the highest levels of reliability, security, and optimization for Wide Area Networks (WANs), today announced its first quarter fiscal year 2026 results for the period ended June 30, 2025. Q1 Highlights "This has been a pivotal quarter for FatPipe, our first as a public company, a ...

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the quarter ended June 30, 2025, reflect significant changes primarily due to its April 2025 IPO, boosting assets and equity [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $32.0 million, driven by a doubling of cash post-IPO, while equity grew significantly Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 (USD) | March 31, 2025 (USD) | | :--- | :--- | :--- | | **Assets** | | | | Cash | $5,906,988 | $2,920,550 | | Total current assets | $16,337,553 | $12,962,684 | | Total assets | $32,018,369 | $28,287,769 | | **Liabilities & Equity** | | | | Total current liabilities | $6,303,286 | $6,489,080 | | Total liabilities | $11,623,144 | $12,362,452 | | Total stockholders' equity | $20,395,225 | $15,925,317 | | Total liabilities and stockholders' equity | $32,018,369 | $28,287,769 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, the company reported a 5.0% increase in revenues to $3.94 million and a 7.0% growth in gross profit Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2025 (USD) | Three Months Ended June 30, 2024 (USD) | | :--- | :--- | :--- | | Revenues | $3,935,923 | $3,750,319 | | Gross Profit | $3,708,989 | $3,466,639 | | Income from Operations | $1,002,677 | $859,843 | | Net Income Attributable to Stockholders | $741,195 | $625,493 | | Net Income per Common Share (basic and diluted) | $0.05 | $0.05 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to $20.4 million, primarily driven by the April 2025 IPO and the period's net income - The company's Initial Public Offering in April 2025 resulted in the issuance of **800,004 shares**, generating proceeds of **$3,935,522** and significantly increasing additional paid-in capital[18](index=18&type=chunk) - As of June 30, 2025, the company had **13,826,468 shares** of common stock issued and outstanding, an increase from 13,026,464 at the end of the previous quarter[18](index=18&type=chunk)[93](index=93&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended June 30, 2025, the company experienced negative operating cash flow but a significant net increase in cash due to IPO proceeds Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Three Months Ended June 30, 2025 (USD) | Three Months Ended June 30, 2024 (USD) | | :--- | :--- | :--- | | Net cash used in operating activities | ($508,604) | ($252,465) | | Net cash used in investing activities | ($42,449) | ($4,955) | | Net cash provided by financing activities | $3,593,250 | $0 | | Net change in cash and cash equivalents | $2,986,438 | ($344,676) | | Cash and cash equivalents, end of period | $5,906,988 | $767,843 | - The company received **$3,784,472** in cash from its initial public offering during the quarter[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the April 2025 IPO, debt structure, and significant customer concentration - The company is a developer of software-defined wide area network (SD-WAN) solutions, holding **thirteen patents**, with core offerings including SD-WAN, SASE, and NMS software solutions[22](index=22&type=chunk)[23](index=23&type=chunk) - The company closed its IPO on April 9, 2025, selling **791,024 shares** and receiving net proceeds of approximately **$3.7 million**, with stock trading on The Nasdaq Capital Market under "FATN"[26](index=26&type=chunk)[27](index=27&type=chunk) Disaggregated Revenue (Three Months Ended June 30) | Revenue Type | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Product revenue | $2,392,303 | $2,105,347 | | Service revenue | $953,287 | $868,231 | | Consulting revenue | $590,333 | $776,742 | | **Total** | **$3,935,923** | **$3,750,319** | - In March 2025, the company obtained a new **$5 million term loan** from Fortis Bank, with an interest rate of Prime Rate plus 1% (**8.75%** at reporting date)[86](index=86&type=chunk) - The company has significant customer concentration, with three major partners accounting for **43.51%** of consolidated revenues for the three months ended June 30, 2025, down from 54.11% in the same period of 2024[78](index=78&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting a 5% year-over-year revenue increase to $3.9 million, improved gross margin, and strengthened liquidity post-IPO [Results of Operations](index=28&type=section&id=Results%20of%20Operations) For the quarter ended June 30, 2025, revenue increased 5% YoY to $3.9 million, driven by product sales, with gross margin expanding to 94% - Net revenue increased by **$185,604 (5%)** YoY, driven by a **$372,012** increase in product and service revenue attributed to core business execution post-IPO[132](index=132&type=chunk) - Gross margin improved to **94%** from 92% in the prior-year period, reflecting higher net revenue and a **20% decrease** in the cost of revenue due to lower hardware costs[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - Product development expenses increased by **$50,957** YoY as the company ramped up development for its cybersecurity products following the IPO[138](index=138&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity was significantly boosted by the April 2025 IPO and a new $5 million term loan, despite negative operating cash flow - The company believes cash generated by operations and cash raised from the IPO are sufficient to meet business requirements for the next **12 months**[144](index=144&type=chunk) - Net cash used in operating activities was **$508,604** for the quarter, an increase from $252,465 in the prior year, partly due to NASDAQ listing fees and related expenses[152](index=152&type=chunk) - Net cash provided by financing activities was **$3,593,250**, consisting of **$3,784,472** in IPO proceeds offset by **$191,222** in debt repayment[154](index=154&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company identifies critical accounting policies and estimates related to intangible assets and deferred taxes, requiring significant judgment - The valuation and amortization of IP-related intangible assets, primarily patents, involve significant judgments regarding projected cash flows and estimated useful lives[161](index=161&type=chunk) - The company continually assesses the need for a valuation allowance against deferred tax assets based on a 'more likely than not' realization threshold, considering forecasts of profitability and other factors[163](index=163&type=chunk)[164](index=164&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "smaller reporting company," FatPipe, Inc. is not required to provide quantitative and qualitative disclosures about market risk - The Company is a "smaller reporting company" and is not required to provide the information for this item[174](index=174&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[177](index=177&type=chunk) - There have been no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[178](index=178&type=chunk) Part II. Other Information [Legal Proceedings](index=38&type=section&id=Item%201%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[184](index=184&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A%20Risk%20Factors) There were no material changes to the risk factors previously disclosed, except concerning ongoing liquidity needs - No material changes in risk factors were disclosed since the Annual Report on Form 10-K filed on June 30, 2025, except concerning on-going liquidity needs[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and confirmed the closing of its April 2025 IPO, which raised approximately $3.7 million net proceeds - The company reported no unregistered sales of equity securities for the period[186](index=186&type=chunk) - The company closed its IPO on April 9, 2025, receiving net proceeds of approximately **$3.7 million** from the sale of **791,024 shares** of common stock[188](index=188&type=chunk) [Other Information](index=38&type=section&id=Item%205%20Other%20Information) The company reported no other information for the period - None[194](index=194&type=chunk) [Exhibits](index=39&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report, including underwriting agreements, articles of incorporation, bylaws, and various certifications - A list of exhibits filed with the report is provided, including governance documents, material contracts, and certifications by the CEO and CFO[196](index=196&type=chunk)

Market Growth and Projections - The SD-WAN market is estimated to be approximately $4.5 billion in 2023, projected to grow to over $17.6 billion by 2030, with a CAGR of 18% in North America and over 60% in APAC[25]. - SASE software and platform revenues are expected to grow from $6.4 billion in 2022 to $27.2 billion by 2030, resulting in a CAGR of almost 20%[26]. - The total NMS market is projected to grow at a CAGR of 10% from $2.0 billion in 2022 to approximately $4.4 billion by 2030, with cloud-based solutions accounting for almost 85% of the total market[27]. Company Overview and Operations - FatPipe has over 2,500 end-user customers across various sectors, with no single customer accounting for over 10% of total revenue in fiscal years 2024 and 2025[53]. - The company is headquartered in Salt Lake City, Utah, with additional operations in Chennai, India, highlighting its international presence[64]. - The company has 154 full-time employees, with 57 in the U.S., 92 in India, and 5 in the Philippines, reflecting a diverse workforce[62]. Financial Performance - For the fiscal year ended March 31, 2025, net revenue was $16,288,881, a decrease of $1,572,028, or 9%, from the prior fiscal year[180]. - Gross profit for the fiscal year ended March 31, 2025, was $15,227,234, a decrease of $1,564,101, or 9%, from the prior fiscal year[182]. - Net income for the fiscal year 2025 was $1,952,895, down from $4,279,681 in 2024, indicating a significant decline[208]. Revenue Sources and Contracts - FatPipe's revenue is derived from software solutions and services, with customer contracts typically ranging from 36 to 60 months[170]. - Recurring billings from monthly and annual subscriptions increased by 23% in 2025, up from a growth of 14% in the previous fiscal year[209]. - The addition of a new cybersecurity product is anticipated to contribute to new revenues and recurring billings going forward[209]. Strategic Partnerships and Market Expansion - Three channel partners accounted for approximately 53.77% of total revenue during fiscal year 2025, highlighting the importance of strategic partnerships[53]. - FatPipe plans to expand its presence in Mexico and Asia markets with geography-specific software license bundles[21]. - The company is in discussions with potential partners to address local market needs in Southeast Asia, excluding China[52]. Intellectual Property and Competitive Edge - The company holds a portfolio of 13 patents covering a range of SD-WAN and related capabilities, enhancing its competitive edge[41]. - As of June 30, 2025, the company holds 13 U.S. patents and seven U.S. trademarks, indicating a strong intellectual property portfolio[58]. Risks and Challenges - The company operates in a highly competitive market, with significant risks related to the introduction of new solutions and the ability to maintain its competitive position[65][66]. - The company faces risks from supply shortages and fluctuating costs of materials, which could adversely affect its financial condition[66][67]. - Increased competition in the market poses risks to the company's ability to acquire new customers and maintain market share[75]. Governance and Management - The company plans to structure employment agreements for co-founders and other employees once independent board members are elected, indicating a focus on governance[63]. - The company is dependent on the continued services of its senior management, and any loss could adversely affect its business and financial condition[80]. Initial Public Offering (IPO) - The company completed its initial public offering on April 9, 2025, selling 791,024 shares at an initial price of $5.75 per share, generating gross proceeds of approximately $4,500,000[59][60]. - The company received net proceeds of approximately $3,700,000 from the IPO after deducting discounts and expenses[60]. Operating Expenses and Financial Management - Operating expenses include marketing and sales, general and administrative, and product development, with expectations for G&A expenses to increase as the company hires more personnel[175]. - The company anticipates continued reliance on operating cash flows and cash raised from the public offering conducted in April 2025 to meet its capital requirements[194]. Cybersecurity and Risk Management - FatPipe's cybersecurity risk management is integrated into its overall risk management framework, ensuring cybersecurity considerations are part of decision-making processes[148]. - The company has not encountered any cybersecurity challenges that materially impaired its operations or financial standing during the year ended March 31, 2025[151]. Compliance and Regulatory Risks - Non-compliance with laws and regulations could result in fines and penalties, negatively impacting the company's ability to contract with public sector clients[123]. - The company relies on various regulatory and contractual requirements when selling solutions to the U.S. government, with non-compliance potentially leading to severe penalties[124].

Company Overview - FatPipe, Inc. has been added to the Russell 3000E™ and Russell Microcap® Indexes, effective after the US market closed on June 27, 2025, as part of the 2025 Russell Indexes annual reconstitution [1][2] - The inclusion in these indexes signifies a milestone for the company, reflecting strong execution and momentum as it scales its high-margin software platform and expands globally [2] Industry Context - Russell indexes are widely utilized by investment managers and institutional investors for index funds and as benchmarks for active investment strategies, serving as a benchmark for approximately $10.6 trillion in assets as of June 2024 [3] - FTSE Russell, the global index provider, calculates thousands of indexes that cover 98% of the investable market globally, with about $18.1 trillion benchmarked to its indexes [5] Product and Innovation - FatPipe pioneered the concept of software-defined wide area networking (SD-WAN) and hybrid WANs, allowing companies to control multi-link network traffic without the need for hardware or cooperation from ISPs [4] - In May 2025, FatPipe introduced Total Security 360, a comprehensive cybersecurity and network security solution that provides control over data within company and sovereign boundaries [4]

Company Overview - FatPipe, Inc. is a pioneer in enterprise-class, application-aware, secure software-defined wide area network (SD-WAN) solutions, providing high levels of reliability, security, and optimization for Wide Area Networks (WANs) [1] - The company holds 12 U.S. patents related to multipath, software-defined networking, and its products are sold by over 200 resellers worldwide [3] Event Announcement - Dr. Ragula Bhaskar, Chairman and CEO of FatPipe, will present at the virtual Northland Capital Markets Growth Conference on June 25, 2025 [2] - Interested participants are encouraged to contact their Northland Capital Markets sales representative for additional details and meeting opportunities [2]

网络软件技术解决方案供应商Fatpipe Inc./UT（FATN）美国IPO首日开盘报6.50美元，此前给出的IPO发 行价为每股5.75美元。 ...