Peraso Inc. (NASDAQ:PRSO), a semiconductor company, has entered into a private stock sale agreement with board member Ian McWalter, according to a recent SEC filing. On Monday, the San Jose-based company sold 100,000 shares of common stock at $1.27 per share to McWalter, generating $127,000 in proceeds.
The shares sold are classified as restricted securities under Rule 144 of the Securities Act of 1933, meaning they are subject to certain resale limitations. Peraso indicated that the proceeds from this transaction would be used for general corporate purposes, which include research and development activities and working capital needs.
The sale was conducted privately, without registration under the Securities Act, utilizing an exemption that applies when sales do not involve a public offering. McWalter, being a sophisticated investor and a member of Peraso's board, acquired the shares for investment purposes and not for resale. The company has taken measures to restrict the transfer of these shares, which are duly noted with a legend on the book-entry records evidencing the securities.
The transaction was made under Section 4(a)(2) and/or Rule 506 of Regulation D of the Securities Act, which allows for the issuance of securities without public offering to qualified individuals who are investing for themselves rather than for resale.
Peraso, formerly known as MoSys Inc., specializes in the semiconductor and related devices industry, with a focus on manufacturing. The company's financial year ends on December 31, and it is incorporated in the state of Delaware.
The information for this article is based on a press release statement filed with the SEC.
In other recent news, Peraso Inc. announced a sequential rise in revenue for Q1 2024, exceeding its previous guidance. This positive development was attributed to increased customer demand and heightened product shipments. The company's financial results also revealed an improved gross margin and a reduction in net loss, with expectations of continued revenue growth and high gross margins in future quarters.
Peraso's CEO, Ron Glibbery, expressed optimism about achieving solid growth throughout 2024, with a particular focus on expanding the company's mmWave customer base. The company also anticipates Q2 2024 total net revenue to fall between $3.7 million and $4 million.
Despite these positive developments, it's important to note that Peraso reported a GAAP net loss of $2 million and a non-GAAP net loss of $1.6 million for Q1 2024. However, the company has secured new engagements and design wins, including Panasonic (OTC:PCRFY)'s adoption of their X710 mmWave chipset.
InvestingPro Insights
In light of Peraso Inc.'s recent private stock sale, insights from InvestingPro reveal a mixed financial landscape for the company. With a market capitalization of just $4.01 million and a significant decline in revenue over the last twelve months, Peraso's financial position appears challenging. The company's revenue dropped by 30.1% during this period, reflecting potential headwinds in its operations. Moreover, the gross profit margin stood at a low 10.85%, underscoring the difficulties in achieving profitability.
InvestingPro Tips suggest that while Peraso holds more cash than debt, which is a positive sign of liquidity, it is also rapidly depleting its cash reserves. Additionally, despite a significant return over the past week, analysts do not expect the company to be profitable this year, and the stock price has experienced a considerable decline over the past year. These factors, combined with the fact that Peraso does not pay dividends, may influence investor decisions.
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