Peraso(US:PRSO)2025-11-12 11:35Revenue Performance - For the three months ended September 30, 2025, product revenue was $3,062,000, a decrease of 20% compared to $3,811,000 for the same period in 2024[131] - For the nine months ended September 30, 2025, product revenue totaled $9,080,000, down 14% from $10,596,000 in the prior year[131] - Memory IC product revenue for the three months ended September 30, 2025, was $72,000, a significant decline of $3,605,000 from $3,677,000 in 2024[133] - mmWave ICs revenue increased to $2,276,000 for the three months ended September 30, 2025, compared to $67,000 in the same period of 2024, reflecting a growth of $2,209,000[133] - Royalty and other revenue for the three months ended September 30, 2025, increased to $172,000, a 473% increase compared to $30,000 in the same period of 2024[134] Expenses and Losses - The company incurred net losses of approximately $3.5 million for the nine months ended September 30, 2025, and $10.7 million for the year ended December 31, 2024, leading to an accumulated deficit of approximately $180.6 million[114] - Research and development expenses for the three months ended September 30, 2025, decreased to $1,528,000, a 29% decrease from $2,158,000 in the same period of 2024[139] - Selling, general and administrative expenses for the three months ended September 30, 2025, decreased to $1,479,000, a 37% decrease from $2,349,000 in the same period of 2024[142] - Net cash used in operating activities for the first nine months of 2025 was $4.6 million, primarily due to a net loss of $3.5 million[147] - The company expects to continue incurring operating losses during 2025, with cash expenditures expected to exceed receipts for at least the next 12 months[154] Financial Position - Cash and cash equivalents as of September 30, 2025, were $1.9 million, with working capital of $3.1 million[146] - The company had outstanding non-cancelable purchase orders for inventory of approximately $2.7 million as of September 30, 2025[152] - The company expressed substantial doubt about its ability to continue as a going concern, indicating potential financial instability[157] - The company is currently seeking additional financing to meet cash requirements for the foreseeable future[157] - If additional capital cannot be raised on acceptable terms, the company may need to curtail existing operations[160] Corporate Actions - The company received additional purchase orders totaling approximately $452,800 for remaining inventory of memory IC products after initiating an end-of-life process in May 2023[113] - On September 11, 2025, the company entered into an inducement offer agreement resulting in net proceeds of approximately $0.9 million from the exercise of Series C Warrants[126] - The company regained compliance with Nasdaq's minimum bid price requirement on September 19, 2025, after previously receiving a notification of non-compliance[127] - Mobix Labs proposed to acquire all outstanding shares of the company for $1.30 per share, consisting of a mix of cash and common stock[121] - The company is currently evaluating options to enhance stockholder value in response to Mobix Labs' acquisition proposals[125] Capital Management - The company completed warrant inducement offerings in September 2025 and November 2024, raising approximately $0.9 million and $2.6 million, respectively[158] - During the three and nine months ended September 30, 2025, the company sold 733,049 and 2,003,207 shares of common stock for proceeds of approximately $751,200 and $2,270,200, net of commissions[158] - The maximum aggregate offering amount of common stock under the Sales Agreement was increased to $1,750,000 on October 10, 2025[158] - The company implemented workforce reductions, eliminating 19 full-time equivalent positions to preserve cash and reduce operating costs[158] - The company has kept capital expenditures to minimum levels to reduce operating costs and short-term cash needs[158] Financial Reporting - Cost of net revenue for the three months ended September 30, 2025, decreased to $1,417,000, a 30% reduction from $2,034,000 in the same period of 2024[135] - Gross profit for the three months ended September 30, 2025, was $1,817,000, reflecting a 1% increase from $1,807,000 in the same period of 2024[137] - The company does not maintain any off-balance sheet arrangements that could materially affect its financial condition[161] - Indemnification agreements have been entered into with officers and directors, but no material amounts related to these indemnifications are reflected in the financial statements[162]