Peraso, Inc. (NASDAQ:PRSO) Q2 2022 Earnings Conference Call August 15, 2022 5:00 PM ET Company Participants James Sullivan - CFO Ron Glibbery - Co-Founder, SVP, Corporate Development, CEO & Director Conference Call Participants David Williams - Benchmark Kevin Liu - K. Liu & Company Operator Good afternoon, and welcome to Peraso Inc.'s Second Quarter 2022 Conference Call [Operator Instructions]. I would now like to turn the call over to Peraso's CFO, Jim Sullivan. Please go ahead. James Sullivan Good aftern ...

WIRELESS UNLEASHED™ UNLEASH THE POWER OF 5G mmWAVE JUNE 2022 Copyright © 2022 Peraso Inc. 1 DISCLAIMER This presentation is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, we makes no representation or warrant with respect to the accuracy of such information. Trademarks and trade names referred to in this presentation are the property of their respectiv ...

```markdown PART I — FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Peraso Inc. as of June 30, 2022, and for the three and six-month periods then ended. It includes the balance sheets, statements of operations, statements of stockholders' equity, and statements of cash flows, along with accompanying notes. These financials reflect the reverse acquisition of MoSys, Inc. by Peraso Technologies Inc., with Peraso Tech being the accounting acquirer - The financial statements are a continuation of Peraso Tech's statements following the reverse acquisition completed on December 17, 2021. For accounting purposes, Peraso Tech is treated as the acquirer[16](index=16&type=chunk) - The company has a history of net losses, including a **$13.8 million loss** for the first six months of 2022, and an accumulated deficit of **$131.0 million**. This raises substantial doubt about its ability to continue as a going concern without raising additional capital[21](index=21&type=chunk)[22](index=22&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2022, shows a decrease in total assets to $37.0 million from $48.0 million at year-end 2021, primarily driven by a reduction in cash, cash equivalents, and investments. Total liabilities remained stable at approximately $5.9 million, while total stockholders' equity decreased from $42.1 million to $31.1 million due to the net loss incurred during the period Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2022 (unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $2,820 | $5,893 | | Short-term investments | $2,094 | $9,267 | | Total current assets | $15,042 | $23,678 | | **Total Assets** | **$36,952** | **$47,951** | | **Total Liabilities** | **$5,871** | **$5,882** | | **Total Stockholders' Equity** | **$31,081** | **$42,069** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the second quarter of 2022, the company reported a significant increase in total net revenue to $4.3 million compared to $0.7 million in Q2 2021. However, operating expenses also rose sharply, leading to a larger loss from operations of $7.0 million versus $4.4 million in the prior-year period. The net loss for Q2 2022 was $7.0 million, or ($0.33) per share Q2 and H1 2022 vs 2021 Performance (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Net Revenue | $4,284 | $697 | $7,687 | $1,798 | | Gross Profit | $1,485 | $262 | $2,940 | $744 | | Loss from Operations | $(7,036) | $(4,429) | $(13,772) | $(8,041) | | Net Loss | $(7,043) | $(5,430) | $(13,797) | $(9,586) | | Net Loss Per Share (Basic & Diluted) | $(0.33) | $(1.03) | $(0.64) | $(1.83) | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Stockholders' equity decreased from $42.1 million at the end of 2021 to $31.1 million as of June 30, 2022. The decline was primarily driven by a net loss of $13.8 million for the six-month period, which was partially offset by $2.9 million in stock-based compensation - The accumulated deficit grew from **$(117.2) million** at December 31, 2021, to **$(131.0) million** at June 30, 2022, reflecting the ongoing net losses[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash used in operating activities was $11.6 million, a significant increase from $5.7 million in the same period of 2021. Net cash provided by investing activities was $8.6 million, mainly from maturities of marketable securities. A net decrease in cash of $3.1 million resulted in an ending cash and cash equivalents balance of $2.8 million Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,562) | $(5,651) | | Net cash provided by (used in) investing activities | $8,574 | $(147) | | Net cash provided by (used in) financing activities | $(85) | $6,127 | | **Net decrease in cash and cash equivalents** | **$(3,073)** | **$329** | | **Cash and cash equivalents at end of period** | **$2,820** | **$2,040** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical details on accounting policies, the reverse acquisition, fair value measurements, customer concentration, and subsequent events. Key highlights include the reclassification of amortization expenses, details on lease obligations, and a significant post-quarter technology licensing agreement with Intel - The company reclassified amortization expense for developed technology to 'cost of net revenue' and for customer relationships to 'SG&A'. This change did not impact net loss or cash flows but adjusted gross profit and operating expense line items[88](index=88&type=chunk)[89](index=89&type=chunk) - Subsequent to the quarter's end, on August 5, 2022, the company entered into a Technology License and Patent Assignment Agreement with Intel, expecting to receive **$3.5 million** in gross proceeds over the next six months[120](index=120&type=chunk)[121](index=121&type=chunk) - For the six months ended June 30, 2022, four customers (A, B, C, D) accounted for **31%**, **12%**, **11%**, and **23%** of total net revenue, respectively, indicating significant customer concentration[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a significant increase in revenue driven by memory IC products from the recent business combination and growth in mmWave module sales. However, this was accompanied by higher costs and operating expenses, leading to increased net losses. The report emphasizes the company's liquidity challenges, stating there is substantial doubt about its ability to continue as a going concern without raising additional capital. The recent Intel agreement is noted as a positive development for future liquidity - The company's primary business objective is to be a profitable, IP-rich, fabless semiconductor company specializing in mmWave technology (60GHz and 5G) and its acquired memory product line[125](index=125&type=chunk)[126](index=126&type=chunk) - Management acknowledges that due to expected operating losses and cash burn, there is substantial doubt about the company's ability to continue as a going concern. The company is actively seeking additional financing[161](index=161&type=chunk) - The August 2022 agreement with Intel is expected to generate **$3.5 million** in gross proceeds and reduce annual operating expenses by approximately **$2.7 million**, providing a near-term liquidity boost[161](index=161&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Net revenue for Q2 2022 increased by 515% year-over-year, primarily due to a $1.9 million contribution from memory IC products (not present in 2021) and a $1.5 million increase in mmWave module sales. Gross margin decreased from 38% to 35% in Q2 due to a higher mix of lower-margin module products. R&D and SG&A expenses increased by 95% and 60% respectively, driven by the inclusion of the former MoSys operations Product Revenue Growth (in thousands) | Period | 2022 | 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Three months ended June 30 | $4,120 | $576 | $3,544 | 615% | | Six months ended June 30 | $7,324 | $1,627 | $5,697 | 350% | Operating Expense Growth (in thousands) | Expense Category (Three Months Ended June 30) | 2022 | 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research & Development (R&D) | $5,643 | $2,892 | $2,751 | 95% | | Selling, General & Administrative (SG&A) | $2,878 | $1,799 | $1,079 | 60% | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2022, the company had $6.0 million in cash, cash equivalents, and investments. Net cash used in operations for the first half of 2022 was $11.6 million. Management states these funds are not sufficient for the next 12 months, raising substantial doubt about the company's ability to continue as a going concern. The company is seeking additional financing and highlights the recent Intel deal as a measure to improve its financial position - The company had cash, cash equivalents and investments of **$6.0 million** and working capital of **$9.9 million** as of June 30, 2022[154](index=154&type=chunk) - Net cash used in operating activities was **$11.6 million** for the first six months of 2022, primarily due to a net loss of **$13.8 million**[155](index=155&type=chunk) - The company has a history of losses and negative cash flows, requiring it to raise substantial additional capital. It expects to continue incurring operating losses for the foreseeable future[159](index=159&type=chunk)[160](index=160&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures. They concluded that as of June 30, 2022, these controls were effective. No material changes to internal control over financial reporting were identified during the six-month period - Management concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective[167](index=167&type=chunk) - There were no changes in internal control over financial reporting during the six months ended June 30, 2022, that materially affected, or are reasonably likely to materially affect, internal controls[168](index=168&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company states that it is not a party to any legal proceeding that it believes is likely to have a material adverse effect on its financial position or results of operations. It may be subject to ordinary course claims from time to time - The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business[96](index=96&type=chunk)[169](index=169&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section highlights significant risks to the business, with no material changes from the last annual report except for updated emphasis. The primary risk is the company's ability to continue as a going concern due to its history of losses and insufficient cash reserves for the next 12 months. Other key risks include the need to raise additional capital, the potential negative impacts of the Russia-Ukraine conflict, and sustained inflation on costs and customer demand - **Going Concern Risk:** The company does not believe its current cash is sufficient for the next 12 months, raising substantial doubt about its ability to continue as a going concern[171](index=171&type=chunk) - **Capital Requirement:** The company has a history of losses and will need to raise additional capital, which may not be available on acceptable terms, if at all[173](index=173&type=chunk) - **Macroeconomic Risks:** The invasion of Ukraine by Russia and sustained inflation are cited as risks that could negatively impact the global economy, the company's costs, and its overall business operations[175](index=175&type=chunk)[176](index=176&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q. Notable exhibits include amendments to employment agreements for executives, CEO and CFO certifications (Rule 13a-14 and Section 1350), and the financial statements formatted in Inline XBRL - Filed exhibits include amendments to employment agreements for Daniel Lewis, James Sullivan, and Brad Lynch[178](index=178&type=chunk) - Standard CEO and CFO certifications under Sarbanes-Oxley (Rule 13a-14 and Section 1350) are included[178](index=178&type=chunk) Signatures - The report was duly signed and authorized on August 15, 2022, by Ronald Glibbery, Chief Executive Officer, and James W. Sullivan, Chief Financial Officer[183](index=183&type=chunk)[184](index=184&type=chunk) ```

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-32929 PERASO INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction (I.R.S. Employer of Incorporation or organization) Identification Number) Del ...

Peraso Inc. (NASDAQ:PRSO) Q1 2022 Earnings Conference Call May 9, 2022 4:30 PM ET Company Participants Jim Sullivan - Chief Financial Officer Ron Glibbery - Chief Executive Officer Conference Call Participants David Williams - Benchmark Operator Good afternoon, and welcome to Peraso, Inc.’s First Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. Following the company’s prepared remarks, instructions will be given for the questions-and-answer session. [Operator Instructi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-32929 PERASO INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 2309 Bering Drive San Jose, California ...

WIRELESS UNLEASHED™ UNLEASH THE POWER OF 5G mmWAVE MARCH 2022 Copyright © 2022 Peraso Inc. 1 SAFE HARBOR AND FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the completion of business combination, the future results of operations, business strategy, timing, capabilities, and likelihood of success of combined company, and plans and objectives of its potenti ...

Peraso, Inc. (NASDAQ:PRSO) Q4 2021 Earnings Conference Call March 8, 2022 5:00 PM ET Company Participants Jim Sullivan - Chief Financial Officer Ron Glibbery - Founder and Chief Executive Officer Conference Call Participants David Williams - Benchmark Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-32929 MOSYS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction (I.R.S. Employer of Inco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-32929 MOSYS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction (I.R.S. Employer of Incorpora ...