Peraso pivots to mmWave as cash runs low; board weighs Mobix $1.20 bid

Peraso Inc (NASDAQ: MOSY) - quick read on what's happening inside

Peraso (formerly MoSys) has completed the end-of-life for its memory IC line and is transitioning revenue toward mmWave ICs and modules. Management cut costs (headcount, office footprint, software licenses), raised cash via an ATM program and a warrant inducement, and has launched a formal strategic review after an unsolicited buy proposal. However liquidity is tight and auditors have previously flagged substantial doubt about the company's ability to continue as a going concern.

Key facts & figures (as reported)
- Cash & cash equivalents: $1,761 (in thousands) as of June 30, 2025.
- Total assets: $5,531; Total liabilities: $2,544; Stockholders' equity: $2,987 (all in thousands).
- Total net revenue (Q2 '25): $2,220 vs $4,238 in Q2 '24. Six months: $6,089 vs $7,054.
- Product revenue (Q2 '25): $2,218; Memory ICs = $0 in Q2 '25 (ended EOL March 2025).
- mmWave product growth (Q2 '25): mmWave ICs $1,318 (Q2 '24: $127); mmWave modules $886 (Q2 '24: $553).
- Gross profit (Q2 '25): $1,073 (48% margin) vs $2,351 (55%) prior year quarter. Six months gross profit $3,753 (62% margin) vs $3,657 (52%).
- Cost of net revenue (Q2): $1,147; R&D (Q2): $1,662; SG&A (Q2): $1,411; Total operating expenses (Q2): $2,850.
- Loss from operations (Q2): $(1,777); Net loss (Q2): $(1,829); Net loss per share (basic & diluted) Q2: $(0.31).
- Shares used in Q2 loss per share: 5,977 (vs 2,358 prior year) - substantial dilution from equity issuances/warrants.
- Cash used in operations (six months): $(3,007); Cash provided by financing (six months): $1,469; Ending cash: $1,761.
- Working capital: ~$2.4M (current assets $4,796 − current liabilities $2,363).
- Accumulated deficit: $(179,420) (in thousands).
- Outstanding equity-classified warrants: 8,770 (thousand shares). Purchase warrants (liability-classified): 235 (thousand) with fair value $49 (in thousands).

What's working (positives)
- Clear product pivot: mmWave ICs and modules are scaling - mmWave IC revenue rose sharply (Q2: $1,318 vs $127).
- Cost discipline: R&D and SG&A down 41% and 29% year-over-year (six months), lowering burn and narrowing operating loss vs prior periods.
- Gross margin improving on six-month basis (62% vs 52% prior year) - reflects mix shift and lower amortization (intangible assets fully amortized).
- Nasdaq minimum bid compliance restored (notification June 18, 2025).
- Board is actively exploring strategic alternatives and retained Craig-Hallum; received unsolicited Mobix proposal (~$1.20/share) - potential catalyst for transaction or financing.

Main risks and negatives
- Liquidity crunch: only $1.76M cash; management says runway into Q4 2025 and must raise capital or cut further.
- Going-concern doubt: auditors expressed substantial doubt for FY2024; company says substantial doubt remains if financing not secured.
- Revenue decline Q2 driven by memory EOL (memory represented ~38% of six-month revenue in 2025 vs 86% in 2024) - lost a historically higher-margin product line.
- Customer concentration: Customer A = 32% of Q2 revenue and 71% of accounts receivable - receivable / customer risk is high.
- Purchase obligations: non-cancelable inventory POs (wafers/substrates) of ~$3.1M - potential cash draw.
- Significant potential dilution: large outstanding warrants (8.77M) and prior equity raises; shares used in EPS calculation jumped from 2,358 to 5,977 in Q2.
- Net loss persists: $(2.3M) YTD (six months) and accumulated deficit of $(179.4M).

Near-term catalysts / items to watch
- Outcome of strategic review and any transaction with Mobix or other bidders; advisor engagement and possible M&A/financing announcements.
- Additional financing (equity, warrants, debt or ATM sales) - company is actively raising cash; ATM provided $1.512M net in six months and further ATM sales occurred after period end.
- Revenue ramp from mmWave production shipments and new customers (management expects mmWave sales to increase in 2025 based on backlog).
- Cash flow and working capital management vs $3.1M purchase commitments - any delays or extra payments will stress liquidity.
- Warrant expirations / amendments (Series C extension activity noted) and potential dilution if exercised.

Bottom line: Peraso has trimmed costs and is pivoting into mmWave products with improving gross margins on a six-month basis, but the company remains small, loss-making and cash-constrained. The strategic review and near-term financing are the critical next steps - they will determine whether the company can convert mmWave momentum into a sustainable business or will need deeper restructuring/dilution.