Peraso Inc. Segments Disclosure

Note 7. Business Segments, Concentration of Credit Risk and Significant Customers

 

Segment Information

 

The Company determines its reporting units in accordance with ASC No. 280, Segment Reporting (ASC 280), as amended by ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which the Company adopted effective December 31, 2024. Management evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meet the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated.

 

The Company’s chief executive officer is the chief operating decision maker (CODM), and the CODM evaluates financial performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis, including consolidated net income (loss). Because the CODM evaluates financial performance on a consolidated basis, the Company operates and manages its business as one reportable and operating segment as a fabless semiconductor company focused on the development and sale of mmWave wireless technology, semiconductor devices and antenna modules, the performance of non-recurring engineering, or NRE, services and the licensing of intellectual property. The measure of segment assets is reported on the balance sheet as total consolidated assets.

 

The Company’s reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments.

Significant segment expenses include research and development expenditures, salaries and benefits, stock-based compensation, and software license obligations. Operating expenses include all remaining costs necessary to operate the Company’s business, which primarily include facilities, external professional services and other administrative expenses. The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM:

 

		Year Ended
		December 31,
		2025				2024
Total net revenue		$	12,193			$	14,573
Less:
Cost of net revenue			5,126				7,040
Research and development			2,171				3,303
Salaries			5,829				6,138
Stock-based compensation			522				3,588
Severance and software license obligations			(223	)			2,063
Other operating expenses			3,528				4,876
Other income			(7	)			(1,707	)
Net loss		$	(4,753	)		$	(10,728	)

 

Concentrations

 

The Company recognized revenue from shipments of products, licensing of its technologies and performance of services to customers by geographical destination as follows (in thousands):

 

		Year Ended
		December 31,
		2025				2024
Taiwan		$	5,275			$	238
Europe			3,132				995
North America			2,356				12,478
Hong Kong			14				474
Rest of world			1,416				388
Total net revenue		$	12,193			$	14,573

 

The following is a breakdown of product revenue by category (in thousands):

 

		Years Ended December 31,
Product category		2025				2024
Memory ICs		$	2,720			$	12,914
mmWave ICs			6,734				302
mmWave modules			2,293				1,007
mmWave other products			98				25
		$	11,845			$	14,248

The following table lists significant customers that represented more than 10% of total revenue during each respective period:

 

		Year Ended
		December 31,
		2025				2024
Customer A			29	%			*
Customer B			13	%			61	%
Customer C			13	%			*
Customer D			13	%			*
Customer E			12	%			*
Customer F			*				25	%

 

*

Represents less than 10%

 

The following table lists significant customers that represented more than 10% of the net accounts receivable balance at each respective balance sheet date:

 

		Accounts Receivable
		As of December 31,
		2025				2024
Customer A			78	%			*
Customer B			15	%			*
Customer C			*				58	%
Customer D			*				15	%
Customer E			*				18	%

 

*	Represents less than 10%

 

The following table lists significant vendors that represented more than 10% of the total accounts payable balance at each respective balance sheet date:

 

		Accounts Payable
		As of December 31,
		2025				2024
Vendor A			23	%			*
Vendor B			15	%			*
Vendor C			15	%			*
Vendor D			*				16	%
Vendor E			*				15	%

 

*

Represents less than 10%