Peraso Inc. — Call Transcript 2025

Thank you very much. Good afternoon and welcome to the Peraso Q3 2025 investor presentation. Jumping to a quick summary, Peraso is a fabless semiconductor company focused on high-speed wireless communications. We were incorporated in 2008 and went public on NASDAQ in December of 2021. There are four main markets we focus on, including fixed wireless access, tactical communications, transportation, and video. We've actually shipped over 2 million devices since 2016 and have become the dominant player in our market, which is 60 GHz. We have a strong patent portfolio. We've issued or obtained over 50 patents, so very strong intellectual property, and we have nine essential claims in what we call the 802.11ay standard. We've secured and are expanding our design wins across diverse market applications, including fixed wireless access, defense, transportation, and advanced video delivery. Now, to get a little technical, millimeter wave is a very high-frequency band, typically from the 24 GHz to the 300 GHz spectrum. The really key advantages of millimeter wave is that it can carry more data and has very low latency. Something I'd like to talk about is what we call beamforming. This is really what provides our key advantages. You can see in this diagram the kind of the pictures of our beamforming capability. There are probably two major advantages that the beamforming can provide to our customer base. It can support many users at the same time, so it's ideal for fixed wireless access. Also, it's very hard to detect. In a battlefield environment, i.e., for military applications, it's really turned out to be a very important technology for the company. We were focused on the 24 to 71 GHz spectrum. Specifically, what I'm going to talk today about is our 60 GHz technology, which is in the 57 to 71 GHz spectrum. Millimeter wave is forecast to be one of the most important highest growth opportunities in communications. Here, we're showing a couple of snapshots on the market opportunity. The first is the overall market growth from $5 billion this year to about $30 billion in 2033. This represents a growth rate of 25% compounded annually. Taking back in a little bit, we look at the defense aspect of our growth. The second chart underscores the opportunity for millimeter wave in military applications. This goes back to our stalwarts of our technology. In defense, the growth rate on this marketplace is projected to be 42% compounded annually. Very high growth rate opportunities for us. Peraso, from a technology perspective, is a leader and a key player in this marketplace. Participating in very high growth opportunities in the marketplace. Our initial opportunity is in an area called fixed wireless access. Our lead customer in this space is a company called Ubiquiti. Ubiquiti is a leader in this and an equipment supplier of this marketplace. Now, the tier of a $30 billion valuation. Very, very important first customer for the company. As you can see from the picture at the bottom of the slide, Ubiquiti actually has eight products based on our chip. Basically, this is at a recent trade show. You can see that most of the display, in fact, just about all of the entire display was based on silicon from Peraso. The thing about Ubiquiti is that they are dealing into what we call the rural market. Basically, they've been doing this since about 2020. What that means is that, again, providing high-speed internet to kind of low-density applications and marketplace. Ubiquiti has made a terrific business out of that achievement as a $30 billion valuation. They were our lead customer. Obviously, we're very proud to have them as a lead customer. The thing about the rural market is that it's a bit of a lower volume market, but it was a terrific opportunity for us to actually really start to work on all of the kinks of our technology. Over the years, we've had an opportunity to really, throughout our engagement, improve and perfect our core product offering. That's how we really got started in fixed wireless access. Again, to underscore, fixed wireless access is the ability to provide customers with very high speed and low latency in internet access. What we found over the last couple of years is that our technology is actually able to, because of this beamforming capability that I talked about earlier, move into more what we call dense urban environments. The enabler of this is this beamforming technology that I talked about earlier. We've announced some very, very important design wins around the world. Actually, just last week, we announced our relationship with a company called WeLink. They've announced a major deployment in Los Angeles. As a matter of fact, on the press release what you find is not just Los Angeles, but it's also Las Vegas and Phoenix as well. In America, we're seeing this move from this Ubiquiti kind of based opportunities in the rural environment, moving towards more urban environments in America like Los Angeles and Las Vegas. We call this technology DUNE, or Dense Urban Network Environment. The idea here is to use our beamforming technology to actually reach many users simultaneously. If you look at a market like South Africa, for example, and you can look at the picture that we're showing on this slide, it's an extremely high-density environment. Again, our beamforming technology allows us to really address this market, which traditional wireless technology cannot because it just doesn't have the beamforming capability. Beamforming is an important part of our technology process moving forward. I am moving now to slide eight. Before I move on to slide eight, this is slide eight. Basically, a very important development over the last year or two has been the announcement of what we call the BEAD program by the U.S. government. This is providing all Americans with high-speed internet. It's a $42.45 billion program. The idea here is to provide whatever technology is necessary to give the American public high-speed telecommunications. The important development here is that even though there are many ways to do this, the NTIA leadership has said, look, we just want people to have high-speed internet. This is $42 billion. What this means is that the $42 billion goes to service providers across all 50 states. Basically, on a case-by-case basis, use whatever means necessary to get your customers high-speed internet. Of course, you know that's exactly what we provide. We're optimistic, certainly as we move into 2026, that this will help our business. We haven't really handicapped, I think, specifically what that looks like. Certainly, it's going to help our business. We show this as a very, very positive development in our marketplace, particularly in the continental U.S. This has been confirmed. This was actually started by the Biden administration. It's actually been even more widespread with the Trump administration. We're really thrilled to be taking part of the BEAD process. We look forward to having this help our business in 2026 and moving forward. A new market opportunity for Peraso that's emerged over the last couple of years is the idea of tactical communications. This is basically defense. The idea here is that, again, going back to my first slide, the second slide where I talked about beamforming, one of the most important aspects of beamforming is that it's almost impossible to detect on a battlefield, in a battlefield environment. It's almost not only is it difficult to detect, it's almost impossible to jam as well. This is becoming a very important aspect of military communications. The beauty of our technology is in the 60 GHz, it can be used really anywhere around the world. We're finding that we're now talking to many customers about mission-critical applications. The good news is that this is not just talk. We actually now have a major design win that we announced in April with a Middle East military contractor. The idea here is that, again, this is the number one criteria by this military organization was the fact that this technology could not be detected in the battlefield. We see the military applications as a key aspect beyond fixed wireless in terms of our growth. Usually, people, when we tell them about military applications, they say, oh, this takes years and years. In this case, the opportunity is actually a safety mechanism to really reduce casualties on the battlefield. It's not just casualties of soldiers, by the way. It could be casualties of anybody who's on the battlefield, like medical personnel, journalists, and so on. The good news is that we announced this collaboration in April. We actually started shipping our first volume products in June. The military in the Middle East is even testing as we speak today. This was a very important, so in general, military is an important application for us. Very specifically, this opportunity is an opportunity that we see not just in the Middle East, but really going global for all Western militaries in terms of the opportunity to provide this safety mechanism for military personnel. Moving on to slide 10, transportation is an important opportunity for us. The idea here is that basically, in a train or a bus or a plane, we provide real-time high-performance internet access. The key here is that, again, going back to our beamforming technology, the beams are dynamic. Not only are the beams narrow, but they're also dynamic and they move in real time. These applications are quite ideal for our technology in terms of providing high-speed internet to all modes of transportation. There's even now we're speaking to some customers in the space of autonomous cars. It turns out in autonomous cars, for example, they spend the entire day collecting data. When they go back to their recharging site, they have to upload and download data extremely fast. Our technology is quite ideal for that application. Transportation is becoming an important opportunity for Peraso. Another opportunity for Peraso is professional video delivery. This historically has been a VR application. We still have some customers on VR, but now we're seeing generally in headset applications where people actually have a camera on their headset, and they want that information to be downloaded very quickly. There's only one way to do that, especially in a congested environment, and that's using our technology. Another broad area of application for us is in the medical industry. You can see in this picture, the idea here is that we're actually in an operating room. This is actually a customer of ours whereby they're doing arthroscopic surgery, need real-time video information going back to the monitors, and using our technology to facilitate that. These are two more application areas that we think are very important as we move forward with our business. Now, I'm going to skip to slide 12. We think what's really important is what we call pipeline, really having a look at what our future business looks like. You can see the company is in significant growth mode. In Q4 2023, we had 11 or 7 customers in production. Now, we have 14 customers in production as of Q2 2025, and we're growing that pipeline significantly. Basically, you can see originally, we had companies like Ubiquiti, Raglan, Pakion Networks, and we moved to companies like 8Devices, Zenwell, and Jagroive. One thing that I would say that I think is really important for investors to really understand is that in the unlicensed fixed wireless space, we've become the dominant player significantly. A lot of people have tried and failed. We had a lot of competition. As time goes by, we'll find ourselves more and more unique in that regard. I don't really dwell on it here, but this is an extremely difficult technology to execute on. We've had a lot of battle scars. Again, early relationships with companies like Ubiquiti have made it very important for us to tweak and fine-tune our technology to make it what it is today. It puts us in a position now in the 60 GHz space where we've become the dominant supplier. I think what you'll see over the coming quarters is more and more customer engagements as we continuously convert people to our technology. We think the pipeline is a very important metric in terms of trying to assess what our business looks like moving forward. We're very thrilled with the opportunities that we're seeing present themselves. I always like this next slide because this slide is actually showing some of the customers and some of the products in the marketplace. Right now, we've got actually what we refer to as 59 separate SKUs or different types of devices in the marketplace. You can go to all these websites and you can look up these products. We've been shipping in the order of 59 separate products. This is growing again. You'll see more and more of these products hit the marketplace. Basically, in my opinion, the proof is in the pudding. We can talk all day long about potential. What you're seeing on this slide is customers who have actually executed and put products in the marketplace. You can go buy them. You can put your hands on them. You can test them. We've got a real business on our hands. Again, from a pipeline perspective, even over the course of Q4 2023, over the course of six months, our funnel has gone from 70 customers to 83 customers. Most importantly, the SKUs in production have gone from 31 up to 59, almost double the SKUs in production. We're very, very proud of that metric. We think Peraso is a company that investors should have a look at in terms of just what are the real growth opportunities for our business. As I move on to the summary, we are the premier supplier of what we call 60 GHz semiconductor devices. There's an extremely significant barrier to competition. I can't stress that point enough in terms of what our barrier to competition is. It's taken us several years. Over the last five or six years, we had several competitors who have kind of fallen by the wayside. It will be very, very difficult for any new players to come onto the marketplace. We're shipping into high-growth markets like fixed wireless, like military, like transportation, like video. We have over 100 distinct customer engagement opportunities in the pipeline. Our original business thesis actually was that wireless spectrum is getting saturated and driving the need for millimeter wave spectrum. You can basically see this with things like our opportunities in fixed wireless where traditional wireless technology cannot hold up to the demands of high-density environments. We feel that our original thesis, now mind you, it's been over a decade, but we feel that's a very, very important thesis that's coming true in our marketplace. We feel that Peraso is a terrific investment. We've got a lot on the marketplace and significant growth opportunities. Just looking at this slide, our revenue in 2024 was $14.6 million. Our revenue to date is, but the millimeter wave revenue was only $1.5 million. That was a slow year for the technology, mostly because it was a hangover from kind of a COVID over inventory. This was just like a broad, you know, issue in the semiconductor marketplace that we got hit with that. This year, the revenue to date is $6.1 million for the company. Our specific millimeter wave revenue in the first six months has actually increased to $3.8 million. We see that growing. Our revenue in Q2 was $2.2 million. On our last earnings call, we increased our guidance for Q3 to $2.8 to $3.1 million. We feel we're on track to do that. Whereas 2024 was a slow year for us just because of the inventory correction, we think 2025 is a much better year for millimeter wave revenue. Again, you're starting to see the fruits of those efforts. I will pass on that. From my perspective, that pretty much brings us to the conclusion of the presentation. OK, so I've got several questions. Operator, so we just proceed to answer the questions? Yes, that's right. OK. Can you expand on the opportunities in drone applications and how beamforming technology differentiates Peraso in our market? Very good question. The idea, right off the bat, it's the same thesis, which is that on drone applications, it sells. It's actually, there's two main advantages. One advantage is that you cannot detect the drone. I think a lot of people are starting to use, actually, what we've seen in the battlefield is people are actually using like fiber to control the drone. We're more or less, you can view us as kind of wireless fiber. It's very directed. For drones, actually controlling the drones from using a millimeter wave beam is a very stealthy way to operate a drone in the marketplace. That's one way we're using beamforming in the drone marketplace. The other way is actually, again, the safety mechanism that we're using on the ground with the infantry soldiers can be applied to drone applications as well. As a matter of fact, that's actually in process and being tested right now, again, in the Middle East. The idea there is now you have a drone. That drone, when it's addressing a target, it needs to make damn sure that you're targeting someone who is on the other is an enemy target and not on your same side. We have really two opportunities for drones. One is basically the idea of controlling the drone with a stealth technology. The other is actually applying the safety mechanism to drones so that the drones do not shoot their own soldiers on the ground. Those are the two applications. Second question, you delivered initial production for a tactical defense system. What is the time frame of scaling to larger contracts? Good question. We're going through trials the rest of this year. Over the course of September, October, and November are trials. We really expect, two key things we're doing on our side in terms of the initial production. We have to shrink the system so that it can go on a soldier's gun or helmet. You can imagine the battlefield, we need everything. Everything is obviously battery operated. We need to get the power consumption down. Right now, the timeline for, I would say full-scale large production is Q3 2026. That's the timeline we're on based on basically revising our boards to make sure that they can meet the form-fitting partition requirements, the battery light, and also the testing in the preliminary battlefield environment. Q3 2026 is the timeline we're targeting on that. As far as the strategic review process and how investors should interpret the recent MobileCloud proposal, all I can say on that front is all I can share is what's public. Basically, to be quite frank, what's public is what we know as well. I don't have a lot to share on that front except to say that we obviously feel that the process, the integrity of the process needs to be, our position in general is that the integrity of the process needs to be maintained from a fiduciary responsibility. We intend to do exactly that. That's my comment on that. Obviously, from a public perspective, everything that's in the public domain is fundamentally our position at the moment. GAAP gross margin declined from 248%. The normalized margin that we feel, sorry? No, Ron, I was just going to hop in and take that. Yeah, oh, great. You know, OK, sounds good. Yeah, the decline was really driven by the drop-off in memory integrated circuit revenue. As we had previously announced, we end-of-life the memory products. Q1 2025 was the completion of the end of life. Albeit that said, we still have some left if someone comes knocking. Those products traditionally garnered margins in the high 60% range. The millimeter wave products are a lower margin given the applications, et cetera. We're targeting kind of a, you know, a gross margin there of approximately 50%. We were quite pleased with the 48%. It's obviously hard to achieve your margin profiles with these revenue levels. Now that we've got some consistency and visibility to our backlog, as we commented on our last earnings call, we see a path to hit that 50% target. Thanks for jumping in, Jim. Sure. I wasn't sure what the process was, but thank you. I would have passed it over as well. From our perspective, that's kind of a wrap if there's no other questions. I see we're just four minutes under our timeline. Is that it for today's speaker, moderator? Yep. Are you ready to wrap the call? Yes, thank you very much. I would like to thank everyone on the call today for paying attention. Hopefully, the Peraso story is interesting to you. Thank you very much. Thank you very much, everybody. This does conclude Peraso Inc.'s presentation. You may now disconnect. Please consult the conference agenda for the next presenting company. Thank you.

Speaker 1: Thank you very much. Good afternoon and welcome to the Peraso Q3 2025 investor presentation. Jumping to a quick summary, Peraso is a fabless semiconductor company focused on high-speed wireless communications. We were incorporated in 2008 and went public on NASDAQ in December of 2021. There are four main markets we focus on, including fixed wireless access, tactical communications, transportation, and video. We've actually shipped over 2 million devices since 2016 and have become the dominant player in our market, which is 60 GHz. We have a strong patent portfolio. We've issued or obtained over 50 patents, so very strong intellectual property, and we have nine essential claims in what we call the 802.11ay standard. We've secured and are expanding our design wins across diverse market applications, including fixed wireless access, defense, transportation, and advanced video delivery. Thank you very much. thank you very much Good afternoon and welcome to the Peraso Q3 2025 investor presentation. good afternoon and welcome to the peraso q3 2025 investor presentation Jumping to a quick summary, Peraso is a fabless semiconductor company focused on high-speed wireless communications. jumping to a quick summary peraso is a fabless semiconductor company focused on high-speed wireless communications We were incorporated in 2008 and went public on NASDAQ in December of 2021. we were incorporated in 2008 and went public on nasdaq in december of 2021 There are four main markets we focus on, including fixed wireless access, tactical communications, transportation, and video. there are four main markets we focus on including fixed wireless access tactical communications transportation and video We've actually shipped over 2 million devices since 2016 and have become the dominant player in our market, which is 60 GHz. we've actually shipped over 2 million devices since 2016 and have become the dominant player in our market which is 60 ghz We have a strong patent portfolio. we have a strong patent portfolio We've issued or obtained over 50 patents, so very strong intellectual property, and we have nine essential claims in what we call the 802.11ay standard. we've issued or obtained over 50 patents so very strong intellectual property and we have nine essential claims in what we call the 802.11ay standard We've secured and are expanding our design wins across diverse market applications, including fixed wireless access, defense, transportation, and advanced video delivery. we've secured and are expanding our design wins across diverse market applications including fixed wireless access defense transportation and advanced video delivery Now, to get a little technical, millimeter wave is a very high-frequency band, typically from the 24 GHz to the 300 GHz spectrum. The really key advantages of millimeter wave is that it can carry more data and has very low latency. Something I'd like to talk about is what we call beamforming. This is really what provides our key advantages. You can see in this diagram the kind of the pictures of our beamforming capability. There are probably two major advantages that the beamforming can provide to our customer base. It can support many users at the same time, so it's ideal for fixed wireless access. Also, it's very hard to detect. In a battlefield environment, i.e., for military applications, it's really turned out to be a very important technology for the company. We were focused on the 24 to 71 GHz spectrum. Now, to get a little technical, millimeter wave is a very high-frequency band, typically from the 24 GHz to the 300 GHz spectrum. now to get a little technical millimeter wave is a very high-frequency band typically from the 24 ghz to the 300 ghz spectrum The really key advantages of millimeter wave is that it can carry more data and has very low latency. the really key advantages of millimeter wave is that it can carry more data and has very low latency Something I'd like to talk about is what we call beamforming. something i'd like to talk about is what we call beamforming This is really what provides our key advantages. this is really what provides our key advantages You can see in this diagram the kind of the pictures of our beamforming capability. There are probably two major advantages that the beamforming can provide to our customer base. you can see in this diagram the kind of the pictures of our beamforming capability. there are probably two major advantages that the beamforming can provide to our customer base It can support many users at the same time, so it's ideal for fixed wireless access. it can support many users at the same time so it's ideal for fixed wireless access Also, it's very hard to detect. also it's very hard to detect In a battlefield environment, i.e., for military applications, it's really turned out to be a very important technology for the company. in a battlefield environment i.e for military applications it's really turned out to be a very important technology for the company We were focused on the 24 to 71 GHz spectrum. we were focused on the 24 to 71 ghz spectrum Specifically, what I'm going to talk today about is our 60 GHz technology, which is in the 57 to 71 GHz spectrum. Millimeter wave is forecast to be one of the most important highest growth opportunities in communications. Here, we're showing a couple of snapshots on the market opportunity. The first is the overall market growth from $5 billion this year to about $30 billion in 2033. This represents a growth rate of 25% compounded annually. Taking back in a little bit, we look at the defense aspect of our growth. The second chart underscores the opportunity for millimeter wave in military applications. This goes back to our stalwarts of our technology. In defense, the growth rate on this marketplace is projected to be 42% compounded annually. Very high growth rate opportunities for us. Peraso, from a technology perspective, is a leader and a key player in this marketplace. Specifically, what I'm going to talk today about is our 60 GHz technology, which is in the 57 to 71 GHz spectrum. specifically what i'm going to talk today about is our 60 ghz technology which is in the 57 to 71 ghz spectrum Millimeter wave is forecast to be one of the most important highest growth opportunities in communications. millimeter wave is forecast to be one of the most important highest growth opportunities in communications Here, we're showing a couple of snapshots on the market opportunity. here we're showing a couple of snapshots on the market opportunity The first is the overall market growth from $5 billion this year to about $30 billion in 2033. the first is the overall market growth from $5 billion this year to about $30 billion in 2033 This represents a growth rate of 25% compounded annually. this represents a growth rate of 25% compounded annually Taking back in a little bit, we look at the defense aspect of our growth. taking back in a little bit we look at the defense aspect of our growth The second chart underscores the opportunity for millimeter wave in military applications. the second chart underscores the opportunity for millimeter wave in military applications This goes back to our stalwarts of our technology. this goes back to our stalwarts of our technology In defense, the growth rate on this marketplace is projected to be 42% compounded annually. in defense the growth rate on this marketplace is projected to be 42% compounded annually Very high growth rate opportunities for us. very high growth rate opportunities for us Peraso, from a technology perspective, is a leader and a key player in this marketplace. peraso from a technology perspective is a leader and a key player in this marketplace Participating in very high growth opportunities in the marketplace. Our initial opportunity is in an area called fixed wireless access. Our lead customer in this space is a company called Ubiquiti. Ubiquiti is a leader in this and an equipment supplier of this marketplace. Now, the tier of a $30 billion valuation. Very, very important first customer for the company. As you can see from the picture at the bottom of the slide, Ubiquiti actually has eight products based on our chip. Basically, this is at a recent trade show. You can see that most of the display, in fact, just about all of the entire display was based on silicon from Peraso. The thing about Ubiquiti is that they are dealing into what we call the rural market. Basically, they've been doing this since about 2020. Participating in very high growth opportunities in the marketplace. participating in very high growth opportunities in the marketplace Our initial opportunity is in an area called fixed wireless access. our initial opportunity is in an area called fixed wireless access Our lead customer in this space is a company called Ubiquiti. our lead customer in this space is a company called ubiquiti Ubiquiti is a leader in this and an equipment supplier of this marketplace. ubiquiti is a leader in this and an equipment supplier of this marketplace Now, the tier of a $30 billion valuation. now the tier of a $30 billion valuation Very, very important first customer for the company. very very important first customer for the company As you can see from the picture at the bottom of the slide, Ubiquiti actually has eight products based on our chip. as you can see from the picture at the bottom of the slide ubiquiti actually has eight products based on our chip Basically, this is at a recent trade show. basically this is at a recent trade show You can see that most of the display, in fact, just about all of the entire display was based on silicon from Peraso. you can see that most of the display in fact just about all of the entire display was based on silicon from peraso The thing about Ubiquiti is that they are dealing into what we call the rural market. the thing about ubiquiti is that they are dealing into what we call the rural market Basically, they've been doing this since about 2020. basically they've been doing this since about 2020 What that means is that, again, providing high-speed internet to kind of low-density applications and marketplace. Ubiquiti has made a terrific business out of that achievement as a $30 billion valuation. They were our lead customer. Obviously, we're very proud to have them as a lead customer. The thing about the rural market is that it's a bit of a lower volume market, but it was a terrific opportunity for us to actually really start to work on all of the kinks of our technology. Over the years, we've had an opportunity to really, throughout our engagement, improve and perfect our core product offering. That's how we really got started in fixed wireless access. Again, to underscore, fixed wireless access is the ability to provide customers with very high speed and low latency in internet access. What that means is that, again, providing high-speed internet to kind of low-density applications and marketplace. what that means is that again providing high-speed internet to kind of low-density applications and marketplace Ubiquiti has made a terrific business out of that achievement as a $30 billion valuation. ubiquiti has made a terrific business out of that achievement as a $30 billion valuation They were our lead customer. they were our lead customer Obviously, we're very proud to have them as a lead customer. obviously we're very proud to have them as a lead customer The thing about the rural market is that it's a bit of a lower volume market, but it was a terrific opportunity for us to actually really start to work on all of the kinks of our technology. the thing about the rural market is that it's a bit of a lower volume market but it was a terrific opportunity for us to actually really start to work on all of the kinks of our technology Over the years, we've had an opportunity to really, throughout our engagement, improve and perfect our core product offering. over the years we've had an opportunity to really throughout our engagement improve and perfect our core product offering That's how we really got started in fixed wireless access. that's how we really got started in fixed wireless access Again, to underscore, fixed wireless access is the ability to provide customers with very high speed and low latency in internet access. again to underscore fixed wireless access is the ability to provide customers with very high speed and low latency in internet access What we found over the last couple of years is that our technology is actually able to, because of this beamforming capability that I talked about earlier, move into more what we call dense urban environments. The enabler of this is this beamforming technology that I talked about earlier. We've announced some very, very important design wins around the world. Actually, just last week, we announced our relationship with a company called WeLink. They've announced a major deployment in Los Angeles. As a matter of fact, on the press release what you find is not just Los Angeles, but it's also Las Vegas and Phoenix as well. In America, we're seeing this move from this Ubiquiti kind of based opportunities in the rural environment, moving towards more urban environments in America like Los Angeles and Las Vegas. We call this technology DUNE, or Dense Urban Network Environment. What we found over the last couple of years is that our technology is actually able to, because of this beamforming capability that I talked about earlier, move into more what we call dense urban environments. what we found over the last couple of years is that our technology is actually able to because of this beamforming capability that i talked about earlier move into more what we call dense urban environments The enabler of this is this beamforming technology that I talked about earlier. the enabler of this is this beamforming technology that i talked about earlier We've announced some very, very important design wins around the world. we've announced some very very important design wins around the world Actually, just last week, we announced our relationship with a company called WeLink. actually just last week we announced our relationship with a company called welink They've announced a major deployment in Los Angeles. they've announced a major deployment in los angeles As a matter of fact, on the press release what you find is not just Los Angeles, but it's also Las Vegas and Phoenix as well. as a matter of fact on the press release what you find is not just los angeles but it's also las vegas and phoenix as well In America, we're seeing this move from this Ubiquiti kind of based opportunities in the rural environment, moving towards more urban environments in America like Los Angeles and Las Vegas. in america we're seeing this move from this ubiquiti kind of based opportunities in the rural environment moving towards more urban environments in america like los angeles and las vegas We call this technology DUNE, or Dense Urban Network Environment. we call this technology dune or dense urban network environment The idea here is to use our beamforming technology to actually reach many users simultaneously. If you look at a market like South Africa, for example, and you can look at the picture that we're showing on this slide, it's an extremely high-density environment. Again, our beamforming technology allows us to really address this market, which traditional wireless technology cannot because it just doesn't have the beamforming capability. Beamforming is an important part of our technology process moving forward. I am moving now to slide eight. Before I move on to slide eight, this is slide eight. Basically, a very important development over the last year or two has been the announcement of what we call the BEAD program by the U.S. government. This is providing all Americans with high-speed internet. It's a $42.45 billion program. The idea here is to use our beamforming technology to actually reach many users simultaneously. the idea here is to use our beamforming technology to actually reach many users simultaneously If you look at a market like South Africa, for example, and you can look at the picture that we're showing on this slide, it's an extremely high-density environment. if you look at a market like south africa for example and you can look at the picture that we're showing on this slide it's an extremely high-density environment Again, our beamforming technology allows us to really address this market, which traditional wireless technology cannot because it just doesn't have the beamforming capability. again our beamforming technology allows us to really address this market which traditional wireless technology cannot because it just doesn't have the beamforming capability Beamforming is an important part of our technology process moving forward. beamforming is an important part of our technology process moving forward I am moving now to slide eight. i am moving now to slide eight Before I move on to slide eight, this is slide eight. before i move on to slide eight this is slide eight Basically, a very important development over the last year or two has been the announcement of what we call the BEAD program by the U.S. government. basically a very important development over the last year or two has been the announcement of what we call the bead program by the u.s government This is providing all Americans with high-speed internet. this is providing all americans with high-speed internet It's a $42.45 billion program. it's a $42.45 billion program The idea here is to provide whatever technology is necessary to give the American public high-speed telecommunications. The important development here is that even though there are many ways to do this, the NTIA leadership has said, look, we just want people to have high-speed internet. This is $42 billion. What this means is that the $42 billion goes to service providers across all 50 states. Basically, on a case-by-case basis, use whatever means necessary to get your customers high-speed internet. Of course, you know that's exactly what we provide. We're optimistic, certainly as we move into 2026, that this will help our business. We haven't really handicapped, I think, specifically what that looks like. Certainly, it's going to help our business. We show this as a very, very positive development in our marketplace, particularly in the continental U.S. This has been confirmed. The idea here is to provide whatever technology is necessary to give the American public high-speed telecommunications. the idea here is to provide whatever technology is necessary to give the american public high-speed telecommunications The important development here is that even though there are many ways to do this, the NTIA leadership has said, look, we just want people to have high-speed internet. the important development here is that even though there are many ways to do this the ntia leadership has said look we just want people to have high-speed internet This is $42 billion. this is $42 billion What this means is that the $42 billion goes to service providers across all 50 states. what this means is that the $42 billion goes to service providers across all 50 states Basically, on a case-by-case basis, use whatever means necessary to get your customers high-speed internet. basically on a case-by-case basis use whatever means necessary to get your customers high-speed internet Of course, you know that's exactly what we provide. of course you know that's exactly what we provide We're optimistic, certainly as we move into 2026, that this will help our business. we're optimistic certainly as we move into 2026 that this will help our business We haven't really handicapped, I think, specifically what that looks like. we haven't really handicapped i think specifically what that looks like Certainly, it's going to help our business. certainly it's going to help our business We show this as a very, very positive development in our marketplace, particularly in the continental U.S. we show this as a very very positive development in our marketplace particularly in the continental u.s This has been confirmed. this has been confirmed This was actually started by the Biden administration. It's actually been even more widespread with the Trump administration. We're really thrilled to be taking part of the BEAD process. We look forward to having this help our business in 2026 and moving forward. A new market opportunity for Peraso that's emerged over the last couple of years is the idea of tactical communications. This is basically defense. The idea here is that, again, going back to my first slide, the second slide where I talked about beamforming, one of the most important aspects of beamforming is that it's almost impossible to detect on a battlefield, in a battlefield environment. It's almost not only is it difficult to detect, it's almost impossible to jam as well. This is becoming a very important aspect of military communications. This was actually started by the Biden administration. this was actually started by the biden administration It's actually been even more widespread with the Trump administration. it's actually been even more widespread with the trump administration We're really thrilled to be taking part of the BEAD process. we're really thrilled to be taking part of the bead process We look forward to having this help our business in 2026 and moving forward. we look forward to having this help our business in 2026 and moving forward A new market opportunity for Peraso that's emerged over the last couple of years is the idea of tactical communications. a new market opportunity for peraso that's emerged over the last couple of years is the idea of tactical communications This is basically defense. this is basically defense The idea here is that, again, going back to my first slide, the second slide where I talked about beamforming, one of the most important aspects of beamforming is that it's almost impossible to detect on a battlefield, in a battlefield environment. the idea here is that again going back to my first slide the second slide where i talked about beamforming one of the most important aspects of beamforming is that it's almost impossible to detect on a battlefield in a battlefield environment It's almost not only is it difficult to detect, it's almost impossible to jam as well. it's almost not only is it difficult to detect it's almost impossible to jam as well This is becoming a very important aspect of military communications. this is becoming a very important aspect of military communications The beauty of our technology is in the 60 GHz, it can be used really anywhere around the world. We're finding that we're now talking to many customers about mission-critical applications. The good news is that this is not just talk. We actually now have a major design win that we announced in April with a Middle East military contractor. The idea here is that, again, this is the number one criteria by this military organization was the fact that this technology could not be detected in the battlefield. We see the military applications as a key aspect beyond fixed wireless in terms of our growth. Usually, people, when we tell them about military applications, they say, oh, this takes years and years. In this case, the opportunity is actually a safety mechanism to really reduce casualties on the battlefield. It's not just casualties of soldiers, by the way. The beauty of our technology is in the 60 GHz, it can be used really anywhere around the world. the beauty of our technology is in the 60 ghz it can be used really anywhere around the world We're finding that we're now talking to many customers about mission-critical applications. we're finding that we're now talking to many customers about mission-critical applications The good news is that this is not just talk. the good news is that this is not just talk We actually now have a major design win that we announced in April with a Middle East military contractor. we actually now have a major design win that we announced in april with a middle east military contractor The idea here is that, again, this is the number one criteria by this military organization was the fact that this technology could not be detected in the battlefield. the idea here is that again this is the number one criteria by this military organization was the fact that this technology could not be detected in the battlefield We see the military applications as a key aspect beyond fixed wireless in terms of our growth. we see the military applications as a key aspect beyond fixed wireless in terms of our growth Usually, people, when we tell them about military applications, they say, oh, this takes years and years. usually people when we tell them about military applications they say oh this takes years and years In this case, the opportunity is actually a safety mechanism to really reduce casualties on the battlefield. in this case the opportunity is actually a safety mechanism to really reduce casualties on the battlefield It's not just casualties of soldiers, by the way. it's not just casualties of soldiers by the way It could be casualties of anybody who's on the battlefield, like medical personnel, journalists, and so on. The good news is that we announced this collaboration in April. We actually started shipping our first volume products in June. The military in the Middle East is even testing as we speak today. This was a very important, so in general, military is an important application for us. Very specifically, this opportunity is an opportunity that we see not just in the Middle East, but really going global for all Western militaries in terms of the opportunity to provide this safety mechanism for military personnel. Moving on to slide 10, transportation is an important opportunity for us. The idea here is that basically, in a train or a bus or a plane, we provide real-time high-performance internet access. It could be casualties of anybody who's on the battlefield, like medical personnel, journalists, and so on. it could be casualties of anybody who's on the battlefield like medical personnel journalists and so on The good news is that we announced this collaboration in April. the good news is that we announced this collaboration in april We actually started shipping our first volume products in June. we actually started shipping our first volume products in june The military in the Middle East is even testing as we speak today. the military in the middle east is even testing as we speak today This was a very important, so in general, military is an important application for us. this was a very important so in general military is an important application for us Very specifically, this opportunity is an opportunity that we see not just in the Middle East, but really going global for all Western militaries in terms of the opportunity to provide this safety mechanism for military personnel. very specifically this opportunity is an opportunity that we see not just in the middle east but really going global for all western militaries in terms of the opportunity to provide this safety mechanism for military personnel Moving on to slide 10, transportation is an important opportunity for us. moving on to slide 10 transportation is an important opportunity for us The idea here is that basically, in a train or a bus or a plane, we provide real-time high-performance internet access. the idea here is that basically in a train or a bus or a plane we provide real-time high-performance internet access The key here is that, again, going back to our beamforming technology, the beams are dynamic. Not only are the beams narrow, but they're also dynamic and they move in real time. These applications are quite ideal for our technology in terms of providing high-speed internet to all modes of transportation. There's even now we're speaking to some customers in the space of autonomous cars. It turns out in autonomous cars, for example, they spend the entire day collecting data. When they go back to their recharging site, they have to upload and download data extremely fast. Our technology is quite ideal for that application. Transportation is becoming an important opportunity for Peraso. Another opportunity for Peraso is professional video delivery. This historically has been a VR application. The key here is that, again, going back to our beamforming technology, the beams are dynamic. the key here is that again going back to our beamforming technology the beams are dynamic Not only are the beams narrow, but they're also dynamic and they move in real time. not only are the beams narrow but they're also dynamic and they move in real time These applications are quite ideal for our technology in terms of providing high-speed internet to all modes of transportation. these applications are quite ideal for our technology in terms of providing high-speed internet to all modes of transportation There's even now we're speaking to some customers in the space of autonomous cars. there's even now we're speaking to some customers in the space of autonomous cars It turns out in autonomous cars, for example, they spend the entire day collecting data. it turns out in autonomous cars for example they spend the entire day collecting data When they go back to their recharging site, they have to upload and download data extremely fast. when they go back to their recharging site they have to upload and download data extremely fast Our technology is quite ideal for that application. our technology is quite ideal for that application Transportation is becoming an important opportunity for Peraso. transportation is becoming an important opportunity for peraso Another opportunity for Peraso is professional video delivery. another opportunity for peraso is professional video delivery This historically has been a VR application. this historically has been a vr application We still have some customers on VR, but now we're seeing generally in headset applications where people actually have a camera on their headset, and they want that information to be downloaded very quickly. There's only one way to do that, especially in a congested environment, and that's using our technology. Another broad area of application for us is in the medical industry. You can see in this picture, the idea here is that we're actually in an operating room. This is actually a customer of ours whereby they're doing arthroscopic surgery, need real-time video information going back to the monitors, and using our technology to facilitate that. These are two more application areas that we think are very important as we move forward with our business. Now, I'm going to skip to slide 12. We still have some customers on VR, but now we're seeing generally in headset applications where people actually have a camera on their headset, and they want that information to be downloaded very quickly. we still have some customers on vr but now we're seeing generally in headset applications where people actually have a camera on their headset and they want that information to be downloaded very quickly There's only one way to do that, especially in a congested environment, and that's using our technology. there's only one way to do that especially in a congested environment and that's using our technology Another broad area of application for us is in the medical industry. another broad area of application for us is in the medical industry You can see in this picture, the idea here is that we're actually in an operating room. you can see in this picture the idea here is that we're actually in an operating room This is actually a customer of ours whereby they're doing arthroscopic surgery, need real-time video information going back to the monitors, and using our technology to facilitate that. this is actually a customer of ours whereby they're doing arthroscopic surgery need real-time video information going back to the monitors and using our technology to facilitate that These are two more application areas that we think are very important as we move forward with our business. these are two more application areas that we think are very important as we move forward with our business Now, I'm going to skip to slide 12. now i'm going to skip to slide 12 We think what's really important is what we call pipeline, really having a look at what our future business looks like. You can see the company is in significant growth mode. In Q4 2023, we had 11 or 7 customers in production. Now, we have 14 customers in production as of Q2 2025, and we're growing that pipeline significantly. Basically, you can see originally, we had companies like Ubiquiti, Raglan, Pakion Networks, and we moved to companies like 8Devices, Zenwell, and Jagroive. One thing that I would say that I think is really important for investors to really understand is that in the unlicensed fixed wireless space, we've become the dominant player significantly. A lot of people have tried and failed. We had a lot of competition. As time goes by, we'll find ourselves more and more unique in that regard. We think what's really important is what we call pipeline, really having a look at what our future business looks like. we think what's really important is what we call pipeline really having a look at what our future business looks like You can see the company is in significant growth mode. you can see the company is in significant growth mode In Q4 2023, we had 11 or 7 customers in production. in q4 2023 we had 11 or 7 customers in production Now, we have 14 customers in production as of Q2 2025, and we're growing that pipeline significantly. now we have 14 customers in production as of q2 2025 and we're growing that pipeline significantly Basically, you can see originally, we had companies like Ubiquiti, Raglan, Pakion Networks, and we moved to companies like 8Devices, Zenwell, and Jagroive. basically you can see originally we had companies like ubiquiti raglan pakion networks and we moved to companies like 8devices zenwell and jagroive One thing that I would say that I think is really important for investors to really understand is that in the unlicensed fixed wireless space, we've become the dominant player significantly. one thing that i would say that i think is really important for investors to really understand is that in the unlicensed fixed wireless space we've become the dominant player significantly A lot of people have tried and failed. a lot of people have tried and failed We had a lot of competition. we had a lot of competition As time goes by, we'll find ourselves more and more unique in that regard. as time goes by we'll find ourselves more and more unique in that regard I don't really dwell on it here, but this is an extremely difficult technology to execute on. We've had a lot of battle scars. Again, early relationships with companies like Ubiquiti have made it very important for us to tweak and fine-tune our technology to make it what it is today. It puts us in a position now in the 60 GHz space where we've become the dominant supplier. I think what you'll see over the coming quarters is more and more customer engagements as we continuously convert people to our technology. We think the pipeline is a very important metric in terms of trying to assess what our business looks like moving forward. We're very thrilled with the opportunities that we're seeing present themselves. I always like this next slide because this slide is actually showing some of the customers and some of the products in the marketplace. I don't really dwell on it here, but this is an extremely difficult technology to execute on. i don't really dwell on it here but this is an extremely difficult technology to execute on We've had a lot of battle scars. we've had a lot of battle scars Again, early relationships with companies like Ubiquiti have made it very important for us to tweak and fine-tune our technology to make it what it is today. again early relationships with companies like ubiquiti have made it very important for us to tweak and fine-tune our technology to make it what it is today It puts us in a position now in the 60 GHz space where we've become the dominant supplier. it puts us in a position now in the 60 ghz space where we've become the dominant supplier I think what you'll see over the coming quarters is more and more customer engagements as we continuously convert people to our technology. i think what you'll see over the coming quarters is more and more customer engagements as we continuously convert people to our technology We think the pipeline is a very important metric in terms of trying to assess what our business looks like moving forward. we think the pipeline is a very important metric in terms of trying to assess what our business looks like moving forward We're very thrilled with the opportunities that we're seeing present themselves. we're very thrilled with the opportunities that we're seeing present themselves I always like this next slide because this slide is actually showing some of the customers and some of the products in the marketplace. i always like this next slide because this slide is actually showing some of the customers and some of the products in the marketplace Right now, we've got actually what we refer to as 59 separate SKUs or different types of devices in the marketplace. You can go to all these websites and you can look up these products. We've been shipping in the order of 59 separate products. This is growing again. You'll see more and more of these products hit the marketplace. Basically, in my opinion, the proof is in the pudding. We can talk all day long about potential. What you're seeing on this slide is customers who have actually executed and put products in the marketplace. You can go buy them. You can put your hands on them. You can test them. We've got a real business on our hands. Again, from a pipeline perspective, even over the course of Q4 2023, over the course of six months, our funnel has gone from 70 customers to 83 customers. Right now, we've got actually what we refer to as 59 separate SKUs or different types of devices in the marketplace. right now we've got actually what we refer to as 59 separate skus or different types of devices in the marketplace You can go to all these websites and you can look up these products. you can go to all these websites and you can look up these products We've been shipping in the order of 59 separate products. we've been shipping in the order of 59 separate products This is growing again. this is growing again You'll see more and more of these products hit the marketplace. you'll see more and more of these products hit the marketplace Basically, in my opinion, the proof is in the pudding. basically in my opinion the proof is in the pudding We can talk all day long about potential. we can talk all day long about potential What you're seeing on this slide is customers who have actually executed and put products in the marketplace. what you're seeing on this slide is customers who have actually executed and put products in the marketplace You can go buy them. you can go buy them You can put your hands on them. you can put your hands on them You can test them. you can test them We've got a real business on our hands. we've got a real business on our hands Again, from a pipeline perspective, even over the course of Q4 2023, over the course of six months, our funnel has gone from 70 customers to 83 customers. again from a pipeline perspective even over the course of q4 2023 over the course of six months our funnel has gone from 70 customers to 83 customers Most importantly, the SKUs in production have gone from 31 up to 59, almost double the SKUs in production. We're very, very proud of that metric. We think Peraso is a company that investors should have a look at in terms of just what are the real growth opportunities for our business. As I move on to the summary, we are the premier supplier of what we call 60 GHz semiconductor devices. There's an extremely significant barrier to competition. I can't stress that point enough in terms of what our barrier to competition is. It's taken us several years. Over the last five or six years, we had several competitors who have kind of fallen by the wayside. It will be very, very difficult for any new players to come onto the marketplace. We're shipping into high-growth markets like fixed wireless, like military, like transportation, like video. Most importantly, the SKUs in production have gone from 31 up to 59, almost double the SKUs in production. most importantly the skus in production have gone from 31 up to 59 almost double the skus in production We're very, very proud of that metric. we're very very proud of that metric We think Peraso is a company that investors should have a look at in terms of just what are the real growth opportunities for our business. we think peraso is a company that investors should have a look at in terms of just what are the real growth opportunities for our business As I move on to the summary, we are the premier supplier of what we call 60 GHz semiconductor devices. as i move on to the summary we are the premier supplier of what we call 60 ghz semiconductor devices There's an extremely significant barrier to competition. there's an extremely significant barrier to competition I can't stress that point enough in terms of what our barrier to competition is. i can't stress that point enough in terms of what our barrier to competition is It's taken us several years. it's taken us several years Over the last five or six years, we had several competitors who have kind of fallen by the wayside. over the last five or six years we had several competitors who have kind of fallen by the wayside It will be very, very difficult for any new players to come onto the marketplace. it will be very very difficult for any new players to come onto the marketplace We're shipping into high-growth markets like fixed wireless, like military, like transportation, like video. we're shipping into high-growth markets like fixed wireless like military like transportation like video We have over 100 distinct customer engagement opportunities in the pipeline. Our original business thesis actually was that wireless spectrum is getting saturated and driving the need for millimeter wave spectrum. You can basically see this with things like our opportunities in fixed wireless where traditional wireless technology cannot hold up to the demands of high-density environments. We feel that our original thesis, now mind you, it's been over a decade, but we feel that's a very, very important thesis that's coming true in our marketplace. We feel that Peraso is a terrific investment. We've got a lot on the marketplace and significant growth opportunities. Just looking at this slide, our revenue in 2024 was $14.6 million. Our revenue to date is, but the millimeter wave revenue was only $1.5 million. We have over 100 distinct customer engagement opportunities in the pipeline. we have over 100 distinct customer engagement opportunities in the pipeline Our original business thesis actually was that wireless spectrum is getting saturated and driving the need for millimeter wave spectrum. our original business thesis actually was that wireless spectrum is getting saturated and driving the need for millimeter wave spectrum You can basically see this with things like our opportunities in fixed wireless where traditional wireless technology cannot hold up to the demands of high-density environments. you can basically see this with things like our opportunities in fixed wireless where traditional wireless technology cannot hold up to the demands of high-density environments We feel that our original thesis, now mind you, it's been over a decade, but we feel that's a very, very important thesis that's coming true in our marketplace. we feel that our original thesis now mind you it's been over a decade but we feel that's a very very important thesis that's coming true in our marketplace We feel that Peraso is a terrific investment. we feel that peraso is a terrific investment We've got a lot on the marketplace and significant growth opportunities. we've got a lot on the marketplace and significant growth opportunities Just looking at this slide, our revenue in 2024 was $14.6 million. just looking at this slide our revenue in 2024 was $14.6 million Our revenue to date is, but the millimeter wave revenue was only $1.5 million. our revenue to date is but the millimeter wave revenue was only $1.5 million That was a slow year for the technology, mostly because it was a hangover from kind of a COVID over inventory. This was just like a broad, you know, issue in the semiconductor marketplace that we got hit with that. This year, the revenue to date is $6.1 million for the company. Our specific millimeter wave revenue in the first six months has actually increased to $3.8 million. We see that growing. Our revenue in Q2 was $2.2 million. On our last earnings call, we increased our guidance for Q3 to $2.8 to $3.1 million. We feel we're on track to do that. Whereas 2024 was a slow year for us just because of the inventory correction, we think 2025 is a much better year for millimeter wave revenue. Again, you're starting to see the fruits of those efforts. I will pass on that. That was a slow year for the technology, mostly because it was a hangover from kind of a COVID over inventory. that was a slow year for the technology mostly because it was a hangover from kind of a covid over inventory This was just like a broad, you know, issue in the semiconductor marketplace that we got hit with that. this was just like a broad you know issue in the semiconductor marketplace that we got hit with that This year, the revenue to date is $6.1 million for the company. this year the revenue to date is $6.1 million for the company Our specific millimeter wave revenue in the first six months has actually increased to $3.8 million. our specific millimeter wave revenue in the first six months has actually increased to $3.8 million We see that growing. we see that growing Our revenue in Q2 was $2.2 million. our revenue in q2 was $2.2 million On our last earnings call, we increased our guidance for Q3 to $2.8 to $3.1 million. on our last earnings call we increased our guidance for q3 to $2.8 to $3.1 million We feel we're on track to do that. we feel we're on track to do that Whereas 2024 was a slow year for us just because of the inventory correction, we think 2025 is a much better year for millimeter wave revenue. whereas 2024 was a slow year for us just because of the inventory correction we think 2025 is a much better year for millimeter wave revenue Again, you're starting to see the fruits of those efforts. again you're starting to see the fruits of those efforts I will pass on that. i will pass on that From my perspective, that pretty much brings us to the conclusion of the presentation. OK, so I've got several questions. Operator, so we just proceed to answer the questions? From my perspective, that pretty much brings us to the conclusion of the presentation. from my perspective that pretty much brings us to the conclusion of the presentation OK, so I've got several questions. ok so i've got several questions Operator, so we just proceed to answer the questions? operator so we just proceed to answer the questions

Speaker 2: Yes, that's right. Yes, that's right. yes that's right

Speaker 1: OK. Can you expand on the opportunities in drone applications and how beamforming technology differentiates Peraso in our market? Very good question. The idea, right off the bat, it's the same thesis, which is that on drone applications, it sells. It's actually, there's two main advantages. One advantage is that you cannot detect the drone. I think a lot of people are starting to use, actually, what we've seen in the battlefield is people are actually using like fiber to control the drone. We're more or less, you can view us as kind of wireless fiber. It's very directed. For drones, actually controlling the drones from using a millimeter wave beam is a very stealthy way to operate a drone in the marketplace. That's one way we're using beamforming in the drone marketplace. OK. ok Can you expand on the opportunities in drone applications and how beamforming technology differentiates Peraso in our market? can you expand on the opportunities in drone applications and how beamforming technology differentiates peraso in our market Very good question. very good question The idea, right off the bat, it's the same thesis, which is that on drone applications, it sells. the idea right off the bat it's the same thesis which is that on drone applications it sells It's actually, there's two main advantages. it's actually there's two main advantages One advantage is that you cannot detect the drone. one advantage is that you cannot detect the drone I think a lot of people are starting to use, actually, what we've seen in the battlefield is people are actually using like fiber to control the drone. i think a lot of people are starting to use actually what we've seen in the battlefield is people are actually using like fiber to control the drone We're more or less, you can view us as kind of wireless fiber. we're more or less you can view us as kind of wireless fiber It's very directed. it's very directed For drones, actually controlling the drones from using a millimeter wave beam is a very stealthy way to operate a drone in the marketplace. for drones actually controlling the drones from using a millimeter wave beam is a very stealthy way to operate a drone in the marketplace That's one way we're using beamforming in the drone marketplace. that's one way we're using beamforming in the drone marketplace The other way is actually, again, the safety mechanism that we're using on the ground with the infantry soldiers can be applied to drone applications as well. As a matter of fact, that's actually in process and being tested right now, again, in the Middle East. The idea there is now you have a drone. That drone, when it's addressing a target, it needs to make damn sure that you're targeting someone who is on the other is an enemy target and not on your same side. We have really two opportunities for drones. One is basically the idea of controlling the drone with a stealth technology. The other is actually applying the safety mechanism to drones so that the drones do not shoot their own soldiers on the ground. Those are the two applications. Second question, you delivered initial production for a tactical defense system. The other way is actually, again, the safety mechanism that we're using on the ground with the infantry soldiers can be applied to drone applications as well. the other way is actually again the safety mechanism that we're using on the ground with the infantry soldiers can be applied to drone applications as well As a matter of fact, that's actually in process and being tested right now, again, in the Middle East. as a matter of fact that's actually in process and being tested right now again in the middle east The idea there is now you have a drone. the idea there is now you have a drone That drone, when it's addressing a target, it needs to make damn sure that you're targeting someone who is on the other is an enemy target and not on your same side. that drone when it's addressing a target it needs to make damn sure that you're targeting someone who is on the other is an enemy target and not on your same side We have really two opportunities for drones. we have really two opportunities for drones One is basically the idea of controlling the drone with a stealth technology. one is basically the idea of controlling the drone with a stealth technology The other is actually applying the safety mechanism to drones so that the drones do not shoot their own soldiers on the ground. the other is actually applying the safety mechanism to drones so that the drones do not shoot their own soldiers on the ground Those are the two applications. those are the two applications Second question, you delivered initial production for a tactical defense system. second question you delivered initial production for a tactical defense system What is the time frame of scaling to larger contracts? Good question. We're going through trials the rest of this year. Over the course of September, October, and November are trials. We really expect, two key things we're doing on our side in terms of the initial production. We have to shrink the system so that it can go on a soldier's gun or helmet. You can imagine the battlefield, we need everything. Everything is obviously battery operated. We need to get the power consumption down. Right now, the timeline for, I would say full-scale large production is Q3 2026. That's the timeline we're on based on basically revising our boards to make sure that they can meet the form-fitting partition requirements, the battery light, and also the testing in the preliminary battlefield environment. Q3 2026 is the timeline we're targeting on that. What is the time frame of scaling to larger contracts? what is the time frame of scaling to larger contracts Good question. good question We're going through trials the rest of this year. we're going through trials the rest of this year Over the course of September, October, and November are trials. over the course of september october and november are trials We really expect, two key things we're doing on our side in terms of the initial production. we really expect two key things we're doing on our side in terms of the initial production We have to shrink the system so that it can go on a soldier's gun or helmet. we have to shrink the system so that it can go on a soldier's gun or helmet You can imagine the battlefield, we need everything. you can imagine the battlefield we need everything Everything is obviously battery operated. everything is obviously battery operated We need to get the power consumption down. we need to get the power consumption down Right now, the timeline for, I would say full-scale large production is Q3 2026. right now the timeline for i would say full-scale large production is q3 2026 That's the timeline we're on based on basically revising our boards to make sure that they can meet the form-fitting partition requirements, the battery light, and also the testing in the preliminary battlefield environment. that's the timeline we're on based on basically revising our boards to make sure that they can meet the form-fitting partition requirements the battery light and also the testing in the preliminary battlefield environment Q3 2026 is the timeline we're targeting on that. q3 2026 is the timeline we're targeting on that As far as the strategic review process and how investors should interpret the recent MobileCloud proposal, all I can say on that front is all I can share is what's public. Basically, to be quite frank, what's public is what we know as well. I don't have a lot to share on that front except to say that we obviously feel that the process, the integrity of the process needs to be, our position in general is that the integrity of the process needs to be maintained from a fiduciary responsibility. We intend to do exactly that. That's my comment on that. Obviously, from a public perspective, everything that's in the public domain is fundamentally our position at the moment. GAAP gross margin declined from 248%. The normalized margin that we feel, sorry? As far as the strategic review process and how investors should interpret the recent MobileCloud proposal, all I can say on that front is all I can share is what's public. as far as the strategic review process and how investors should interpret the recent mobilecloud proposal all i can say on that front is all i can share is what's public Basically, to be quite frank, what's public is what we know as well. basically to be quite frank what's public is what we know as well I don't have a lot to share on that front except to say that we obviously feel that the process, the integrity of the process needs to be, our position in general is that the integrity of the process needs to be maintained from a fiduciary responsibility. i don't have a lot to share on that front except to say that we obviously feel that the process the integrity of the process needs to be our position in general is that the integrity of the process needs to be maintained from a fiduciary responsibility We intend to do exactly that. we intend to do exactly that That's my comment on that. that's my comment on that Obviously, from a public perspective, everything that's in the public domain is fundamentally our position at the moment. obviously from a public perspective everything that's in the public domain is fundamentally our position at the moment GAAP gross margin declined from 248%. gaap gross margin declined from 248% The normalized margin that we feel, sorry? the normalized margin that we feel sorry

Speaker 3: No, Ron, I was just going to hop in and take that. No, Ron, I was just going to hop in and take that. no ron i was just going to hop in and take that

Speaker 1: Yeah, oh, great. You know, OK, sounds good. Yeah, oh, great. yeah oh great You know, OK, sounds good. you know ok sounds good

Speaker 3: Yeah, the decline was really driven by the drop-off in memory integrated circuit revenue. As we had previously announced, we end-of-life the memory products. Q1 2025 was the completion of the end of life. Albeit that said, we still have some left if someone comes knocking. Those products traditionally garnered margins in the high 60% range. The millimeter wave products are a lower margin given the applications, et cetera. We're targeting kind of a, you know, a gross margin there of approximately 50%. We were quite pleased with the 48%. It's obviously hard to achieve your margin profiles with these revenue levels. Now that we've got some consistency and visibility to our backlog, as we commented on our last earnings call, we see a path to hit that 50% target. Thanks for jumping in, Jim. Yeah, the decline was really driven by the drop-off in memory integrated circuit revenue. yeah the decline was really driven by the drop-off in memory integrated circuit revenue As we had previously announced, we end-of-life the memory products. as we had previously announced we end-of-life the memory products Q1 2025 was the completion of the end of life. q1 2025 was the completion of the end of life Albeit that said, we still have some left if someone comes knocking. albeit that said we still have some left if someone comes knocking Those products traditionally garnered margins in the high 60% range. those products traditionally garnered margins in the high 60% range The millimeter wave products are a lower margin given the applications, et cetera. the millimeter wave products are a lower margin given the applications et cetera We're targeting kind of a, you know, a gross margin there of approximately 50%. we're targeting kind of a you know a gross margin there of approximately 50% We were quite pleased with the 48%. we were quite pleased with the 48% It's obviously hard to achieve your margin profiles with these revenue levels. it's obviously hard to achieve your margin profiles with these revenue levels Now that we've got some consistency and visibility to our backlog, as we commented on our last earnings call, we see a path to hit that 50% target. now that we've got some consistency and visibility to our backlog as we commented on our last earnings call we see a path to hit that 50% target Thanks for jumping in, Jim. thanks for jumping in jim

Speaker 1: Sure. Sure. sure I wasn't sure what the process was, but thank you. I would have passed it over as well. From our perspective, that's kind of a wrap if there's no other questions. I see we're just four minutes under our timeline. Is that it for today's speaker, moderator? I wasn't sure what the process was, but thank you. i wasn't sure what the process was but thank you I would have passed it over as well. i would have passed it over as well From our perspective, that's kind of a wrap if there's no other questions. from our perspective that's kind of a wrap if there's no other questions I see we're just four minutes under our timeline. i see we're just four minutes under our timeline Is that it for today's speaker, moderator? is that it for today's speaker moderator

Speaker 2: Yep. Are you ready to wrap the call? Yep. yep Are you ready to wrap the call? are you ready to wrap the call

Speaker 1: Yes, thank you very much. I would like to thank everyone on the call today for paying attention. Hopefully, the Peraso story is interesting to you. Thank you very much. Yes, thank you very much. yes thank you very much I would like to thank everyone on the call today for paying attention. i would like to thank everyone on the call today for paying attention Hopefully, the Peraso story is interesting to you. hopefully the peraso story is interesting to you Thank you very much. thank you very much

Speaker 2: Thank you very much, everybody. This does conclude Peraso Inc.'s presentation. You may now disconnect. Please consult the conference agenda for the next presenting company. Thank you. Thank you very much, everybody. thank you very much everybody This does conclude Peraso Inc.'s presentation. this does conclude peraso inc.'s presentation You may now disconnect. you may now disconnect Please consult the conference agenda for the next presenting company. please consult the conference agenda for the next presenting company Thank you. thank you