Parazzo at Planet MicroCap Showcase: Strategic Growth in Millimeter Wave

On Wednesday, 22 October 2025, Parazzo (NASDAQ:PRSO) presented at the Planet MicroCap Showcase: TORONTO 2025. The company highlighted its strategic focus on millimeter wave technology, detailing both promising growth prospects and challenges. While Parazzo faces post-COVID inventory corrections, it remains optimistic about achieving profitability by mid-2026.

Key Takeaways

• Parazzo aims for a 50% gross margin in millimeter wave technology, with profitability targeted by mid-2026.
• The company is expanding its focus on fixed wireless access, tactical communications, and high bandwidth video applications.
• Parazzo is evaluating an unsolicited acquisition offer from Mobix Labs at $1.30 per share.
• Millimeter wave revenue in 2025 has already surpassed 2024’s total by 2.5 times.
• The company is leveraging a $45 billion BEAD program to enhance internet access in the U.S. starting in 2026.

Financial Results

• Fiscal Year 2024 Revenue: $14.5 million
• Millimeter Wave Revenue: $1.5 million in 2024; $3.8 million YTD in 2025
• Gross Margin: 70% for memory, targeted 50% for millimeter wave, reaching 48% in Q2 2025
• Non-GAAP Operating Expenses: $3 million per quarter
• Cash Reserves: $1.8 million as of June 30
• Shares Outstanding: 7.6 million, Fully Diluted: 18.8 million
• Q3 2025 Millimeter Wave Revenue Guidance: $2.8 million to $3 million

Operational Updates

• Fixed Wireless Access: Ubiquiti is a lead customer, with deployments in Los Angeles and South Africa.
• Customer Growth: Increased from 7 in 2023 to 14, with over 60 products in the market.
• Shipments: Several thousand parts shipped to a Middle East company in June.

Future Outlook

• Growth Drivers: Significant opportunities in military, edge AI applications, and internet access on trains in Asia.
• BEAD Program: Expected to positively impact business from 2026.
• Market Position: Parazzo considers itself a leader in the unlicensed spectrum market, with competitors like Qualcomm and MediaTek in licensed spectrum.

Q&A Highlights

• Acquisition Offer: Mobix Labs’ unsolicited offer is under evaluation, with strategic options being considered.
• Competition: Parazzo positions itself as a "lone wolf" in the unlicensed spectrum market.
• Market Size: Estimated serviceable available market is $500 million.

The full transcript of the conference call offers further insights into Parazzo’s strategic plans and market positioning.

Full transcript - Planet MicroCap Showcase: TORONTO 2025:

Ron Liberi, CEO, Parazzo: Good morning. I’m getting over a cold, so my my voice is a little hoarse this morning. I’ll do my best. My name is Ron Liberi. I’m the CEO of Parazzo, and I’m here with my colleague, Jim Sullivan, who’s our our CFO.

Parazzo is actually a Toronto company. We were we our office is about a mile from here in at Fronten University. We were incorporated in 2008 and went public through a merger with Jim’s company in December 2021. Our focus is, our business focus is established semiconductor companies, so same business model as, NVIDIA. We design and sell chips, but we manufacture them at TSMC.

And our focus is on high speed wireless. And specifically, we focus on a technology called millimeter wave. That’s very high frequency. We’re a global leader in the development of these semiconductor devices as well as antenna modules. We have a very strong patent portfolio with 60 issued and pending patents in the field.

We even have nine essential claim patents in a standard called IEEE, eight zero two dot 11 a y. And we have ongoing design wins in four major markets that I’m gonna talk about today, including fixed wireless access, which is high speed Internet, tactical communications, which is military, kind of an emerging market for us, which is high speed bandwidth for edge AI applications, and and transportation. So we move on to the next slide. You can see I’m gonna do have one technical slide. So, basically, on this slide, what we, millimeter wave is where our focus is.

We refer to the frequency band above 24 gigahertz. And, basically, you know, traditional wireless is typically under seven gigahertz. So this this frequency band presents some unique challenges. Because it’s very high frequency, it’s very easy to make mistakes. So So one thing about our company is we did incorporate in 02/2008.

It took us about a decade to really get it right, and most peoples don’t most companies don’t get it right. In our space, we’re really the last man standing because the technology is so difficult to execute on. But as I mentioned in the first slide, we have shipped over 2,000,000 ships worldwide, so we really know what we’re doing from a production perspective and are one of the few players that, that have executed in in this space. So one, you know, quick, note I wanna make. I wish I had a oh, do we have do I have a pointer?

Maybe not. So if you look at these beams, we call these we call this beam forming, and that’s where we concentrate the RF energy into narrow beams. And this confers several advantages to our customer. One is and the main advantage is that it can go a long distance. So for example, some of our customers are actually sending their signals over 25 kilometers, so at very high data rates.

So that’s a key advantage. Another advantage is that we have very low interference. So in high density environments and, you know, very dense urban environments, for example, we operate very well. And another, advantage that we have is certainly in the military is that these beams are very undetectable, and we call them stealthy. So in a military environment, they’re very virtually impossible to detect.

And what we found from the Ukraine war and the war in Gaza is that the enemy is actually triangulating on traditional wireless signals. So our ability to be stealthy in that environment confers a very strong advantage to military environments as well. The millimeter wave forecast is one of the highest growth growth rate for opportunities in communications. Here, we’re showing two important snapshots. The first is the overall market growth from $5,000,000,000 this year to about $30,000,000,000 in 2023, which represents an annual growth rate of about 25%.

The second chart underscores the opportunity for millimeter wave, specifically in the military. This goes back to the stealthy nature of our technology with through the beamforming, and this is the advantage that converts the military environment. In defense, the projected growth rate is actually 42% with millimeter wave technology. So I’m going to talk a little bit about our business. So, the first market that I talked about is what we call fixed wireless access.

So this is providing high speed Internet. So just to clarify this in the, the supply chain, we’re a semiconductor supplier. We get our chips from TSMC, and we sell to original equipment manufacturers. So OEMs that make equipment who sell into service providers. So our first customer excuse me.

And our lead customer is a company called Ubiquiti. So Ubiquiti is a $40,000,000,000 company, listed on New York Stock Exchange. They’re really the pioneer in this space, and they’ve got eight products in the market based on our chips. And so the idea here is that they normally cater to what we call rural customers. So this is where the, you know, the the the large telcos, you know, don’t really operate because of low densities.

So Ubiquiti took up that challenge and now become a $40,000,000,000 company. So the issue there is that this is for farms and for for ranches and so on. So very, very low density. So from a technical perspective, it’s kind of an easy problem to solve. But the other side of the coin is for us, it’s pretty low volume.

So it was a good start to really clean out our process, but we really look for more higher higher volume opportunities. So about two years ago, what we discovered is that we’re as because of that beam forming technology, we operate very well in dense urban environments. And so, basically, on that, what that basically means is that as opposed to having farmers every two miles, now you’ve got, you know, homes every 10 or 20 feet, and that’s a much more difficult problem to solve. But the good news is that it confers much more volume, on our business. So we introduced a platform called Doom.

So Doom stands for dense urban network environment, and the idea there is we use our beamforming technology to really address these very dense urban environments. So we’ve got documented design wins around the world. About two months ago, we did a press release with our partner, WeLink, who has deployed in Los Angeles. We’re actually deploying in the in the townships in South Africa. This is actually quite fascinating.

This is millions and millions of customers who have very, very terrible Internet access today, so we’re actually addressing that market. And we’ve got some very strong customers in South Africa. And as as over the last few months, we’ve actually started deploying in many places, but one of the more notable is Kenya, for example. So we’re really kind of leveraging this ability to work in dense, urban environments. A nice, update for our business in The States anyway is a program called Bead.

This is a $45,000,000,000 program with the mandate to provide every and make sure every American has strong Internet access. So, BEAT stands for broadband equity access and deployment. And so, basically, the idea here is to make sure and to subsidize carriers so that they can provide every American with high speed Internet access. So, you know, one of the one of the developments over the last year is that this program has now become what they call referred to as tech neutral. So the idea here, it can be fiber.

It can be licensed wireless. It can be unlicensed wireless. It can even be satellite. So clearly, Elon Musk is in the risk in in the mix here. So state by state applications are underway.

We really see this having a very positive effect on our business in in starting in 2026. So Bead was a very, very important development for underscoring and and and subsidizing high speed Internet across across America. An opportunity that’s that’s really arisen over the, the last, I guess, couple of years is also in the military, and this goes back to our ability to operate in a stealth environment. And so the idea here is very, very important. So now you can actually have battlefield communications communications without detection on the battlefield.

So usually with mill and we are doing demos with with the US government and also with other governments around the world, but our most important design when we announced this in in the second quarter was with a Middle East company that actually uses our technology. One of the main problems in The Middle East, environment is what they refer to as friendly fire. Okay. So this is the idea that you actually shoot your own soldiers. And, actually, the casualty rate, standard casualty rate is about twenty five to thirty percent, if you can believe it, of of military shooting their own soldiers.

In July, that number was actually fifty percent. So this is a real problem in a military environment. But, of course, you know, using the traditional wireless technology to solve that problem doesn’t really solve the problem because now the enemy can detect where you are, and they, you know, can attack you. So the mill the militaries in The U in in The Middle East are trying to solve this problem using our technology. So we shipped several thousand parts in June, and we have ongoing trials for the next year in the in The Middle East.

And so the idea here is that, you know, basically, as as an infantry man, if you see a target downstream, downfield, you can actually test and make sure that’s not your own guy. So it’s actually kind of a game changer in terms of people have been trying to solve this for for decades, actually. So we think we’ve got the the solution for that problem. So that’s just one example. Other markets in the military that we’re going after are things like drones, for example.

So you could even use this on the same concept on a drone. So if you’re on a drone and you look at a target, you you can actually do friendly fire detection from the drone. They’re using it on tanks, we can apply this across military, personnel, in a in a battlefield environment. So we see we see the military and tactical communications as a very part of our business moving forward. Couple more examples in terms of our of our market opportunities.

This one is actually, you know, in my opinion, quite interesting and timely. We call it high bandwidth video for edge AI. And so the we we actually have done high bandwidth video for years, but primarily focused on VR. Okay? So VR is an application.

Of course, everybody knows you need high speed video link, and you can do gaming and so on. But now what we’re finding is that we’re we’re dealing with customers who wanna use our chips for edge AI. And the idea here is that, you know, at the edge, there’s a lot of information. So for example, self driving cars, factory automation, drones, robotics use video. And what the company what our customers wanna do is process that video in AI and send it back to their edge devices.

The problem is the video is extremely high bandwidth. You cannot solve this problem with traditional wireless. So now these companies I mean, the large companies in The States are coming to us to try to solve this problem. So the idea is that we have several gigabits of data rate, and traditional Wi Fi can’t even come with just one tenth of the the bandwidth they need to solve this problem. So we really feel that, the market to oh, I haven’t.

The market to address high bandwidth video for edge AI is a very important market for us moving forward. And the final market I talked about is basically transportation. So we’re actually in mostly in Asia, I would say, in in let me just go to my next particularly in Asia. Right now, we’re doing trials in Japan, Korea, China, and India where the whereby the the opportunity is to provide Internet access on moving trains. So the idea here is that is and and it kinda works today, but the problem is it’s very sketchy.

It’s very low bandwidth. So with our technology, we’re really trying to solve that problem, and we’re literally in try in trials in all of those countries in Asia. So, really, to summarize, the four markets that we’re going after are fixed wireless access, which is our main primary target market today, military because of our stealth capability, edge AI because of our high bandwidth of video, and transportation. No. Is there a clock?

Let’s see. Oh, not bad. Diving down a little bit. There’s two slides I wanna show you, which I think are important because, you know, basically, like, after fifteen years, you know, you could say, well, is your business growing? You know, we really started, growing, I would say, around the COVID time frame.

Like, may maybe something I should clarify. This technology was very hard to implement and to execute. It took us a long time. The good news about that is that that’s all under water under the bridge now. Very difficult to execute on, but we did it, and we are really the only player in this space.

So, in ’20 oh, 2023, we had seven customers. Now we have 14. It doesn’t seem like a lot, but we’re in the OEM business. So OEMs have thousands of customers. So just to keep in mind, that’s kind of the nature of our business is we sell to manufacturers, and they sell into their marketplace.

So that was, where we got to from q q three of, ’20 or 2023. But if you look at this slide, this is actually the products in the marketplace. We actually have almost today, would say it’s more than 60 individual products in the marketplace. So if you Google 60 gigahertz and you kinda do a web search on the products that are available in the marketplace, a lot of products based on our chips will come up for you. So I always like to show this slide because I think it always adds credibility to our our business in terms of what we’re actually shipping in.

I think what we have to keep in mind for these customers is that, you know, these guys have to go through a lot of trouble to get a mark a product in the marketplace. They have to put engineering resources. They have to do designs. They have to test it. They have to manufacture it, and they have to get all the regulatory approvals.

So getting 60 products in the marketplace took a lot a lot of effort on their part, and, obviously, from our perspective is is a very good opportunity. So our pipeline, you know, again, has doubled over the last eighteen months, and we continue to see that growth in all all of the markets that I specified today. So I’m gonna do one more slide, then I’m gonna have Jim come up and do some financial effort. So, basically, from an investment summary, we are the premier supplier of this technology in the marketplace. I would say premier to almost monopolistic.

There’s very few other suppliers, so we kinda own this space. We’re shipping into high growth markets. We have over a 100 distinct customer engagements. So besides the ones I showed you, there’s other customers who are various aspects of our pipeline. Our original business thesis was we’re gonna run out of spectrum.

That’s exactly what’s happening in every single case. If you look at where we’re seeing high volume business, it’s because traditional technology can’t handle the densities because it’s too it’s crowding itself out. We solve that problem. So that’s really the the core value proposition of our technology. So on that note, I’ll leave it, and I’ll pass it on to mister Sullivan.

Jim Sullivan, CFO, Parazzo: Thanks, Ron. I’ll try to be, you know, very succinct here so we can, leave some time for questions. I think the last point I’d just like to add on Ron’s, you know, thesis and, you know, commentary rather, is, an announcement here in the last, I think, ten days or so where Verizon acquired a company called Starry. And Starry is a fixed wireless access provider using millimeter wave. And as you can imagine, we got a ton of inbound, after that acquisition happened, but we were certainly pleased to see that as a validation of, you know, one of the largest carriers in the world acquiring a fixed wireless access, you know, service provider using millimeter wave.

Oops. How do I scroll down here, Ron?

Ron Liberi, CEO, Parazzo: Oh,

Jim Sullivan, CFO, Parazzo: Thank you. Okay. So I’ll be pretty succinct. Fiscal twenty four, we did about $14,500,000 of revenue. The key there is about 90% of it was from a legacy memory product line when we put Paraso millimeter wave company together with legacy Moses, the NASDAQ company, you know, just almost four years ago.

And our plan always was to cash cow the memory business and allow millimeter wave time to grow. We didn’t anticipate the post COVID inventory correction, having our two largest millimeter wave customers basically, say no mass and stop taking product. We finally saw the pump getting primed in ’twenty four, and now Ubiquiti is back online, and we’ve seen other customers come back on. But I think the key stat is we did about 1,000,000 point dollars in millimeter wave revenue in all of ’twenty four. We beat that number in the ’5 and year to date have 2.5x that at $3,800,000 Our guidance for the next quarter is 2.8 to three.

So you can see that we’re on a trajectory to do somewhere around $10,000,000 of millimeter wave revenue, up from $1,500,000 We still have some memory shipments going out. The memory stuff is a high, kind of close to 70% gross margin products. We’re just shipping inventory that’s left on the shelf. The millimeter wave, we’re targeting kind of a 50% gross margin. We hit about 48% in the second quarter.

Now

Ron Liberi, CEO, Parazzo: that we’ve

Jim Sullivan, CFO, Parazzo: got some scale, we see an ability to kind of ramp that to 55%. From a financial standpoint, we’re not profitable, burning cash. Our non GAAP OpEx is about $3,000,000 a quarter. So obviously, the 50% gross margin, we need about $6,000,000 to hit breakeven. We see the ability to do that kind of by mid-twenty twenty six.

From a cash perspective, at June 30, we reported $1,800,000 We have an ATM in place where NASDAQ listed. We also did a warrant inducement in September that will extend our runway certainly into mid-twenty twenty six at this point. We have no debt, about 7,600,000.0 shares outstanding. TSO, about 18,800,000.0 fully diluted. And I’m probably out of time, so I’m going to stop there.

Thank you all very much for the time and attention this morning.

Unidentified speaker: The other people are, you know, probably involved with that revenue today. So who are who are the big boys in the market?

Ron Liberi, CEO, Parazzo: The market is kinda has two segments. It’s what we call license. So that’s in certain frequencies, and that’s for the carriers, and then unlicensed that we focus on. So in license, the key carrier the key suppliers there are Qualcomm, certainly. Right?

And the company called MediaTek. In unlicensed, we’re the lone wolf. So on that TAM, unlicensed constitutes a a large chunk of it, but our chunk of it is, is really sole supplier. But but really on the on the with the side, I would say Qualcomm and the tech of the large supplier.

Unidentified speaker: So you’re in the you’re Sam, if you will. Correct me if I’m wrong. Your Sam is from the.

Ron Liberi, CEO, Parazzo: Yes. It absolutely is.

Unidentified speaker: What do you think is in terms of the market right now?

Ron Liberi, CEO, Parazzo: Well, it’s certainly our revenue is not a billion, so it’s not a billion today. But I think, you know, I think, you know, our view would be about half a billion dollars in terms of our total opportunity. Yeah. Yes. So, just in

Unidentified speaker: a nutshell, what’s holding this business back?

Ron Liberi, CEO, Parazzo: Well, we’re you know, it’s just, I I would say right now, it’s just people getting used to this. Like, it’s kind of a new technology. So for us, certainly, in fixed wireless, it took, like, at least three years for people to get used to it. Most of big traditionally used the standard Wi Fi, which was kinda easy. But now the problem is, again, the capacity issues and the density issues are are are rendering Wi Fi inoperable.

People like to use what they traditionally use. You know, from our perspective, what we see are people getting used to this technology. They’re not used to this high frequency millimeter wave. So for example, in the military, certainly, they weren’t using it. Now they’re starting to use it, so it takes them some time.

So we just think as people get used to the kind of the issues with millimeter wave and they get used to it, we’ll see that growth materialize.

Unidentified speaker: Alright. So it’s a sales cycle.

Ron Liberi, CEO, Parazzo: That’s It’s it’s yeah.

Unidentified speaker: Because obviously, but never easy.

Ron Liberi, CEO, Parazzo: Never easy, but we I don’t know can dive into the details, but we’ve actually put our we one of the products I mentioned is called an antenna module. So we use technology called a phased array antenna, which we control internally. And, basically, we built that into kind of a, like, like, a PCB device. So we sell really an integrated module, both platform and stuff. So when we did our Ubiquiti deal, it took us two years to get into production because of all the complexities that go in a way.

We’ve tried to encapsulate that in terms of in terms of a new product. And so, really, it’s about twelve to maybe fifteen months now to get into production with with our latest version of our product. But, yeah, it’s not all of that. Any other questions? Do have any customers currently military contact with us?

No. Unfortunately, not. So we’re we’re trying, but we haven’t really had any success in so far. But good question. Leon.

I think our first trial would be for the trial. I think we have a real shot at drone. Like, communication with drones, radar with drones, and also the friendly fire application with drones. But I think drones would be our first or anything from the.

Unidentified speaker: No. Can we directly several cross places ago someone’s trying to acquire you or is going to go hostile or something like that? Is that transfer?

Jim Sullivan, CFO, Parazzo: No. No. Mobix Labs has been very vocal in the in the press about its desire to acquire the company. You know, their current offer is at a dollar 30 a share. You know, we’re trading around a buck 60.

You you know, everything between us and Mobix generally gets announced within a day. They have communicated an intent to go hostile. So they, you know, refused to sign an NDA and through our process because after this, we got received the the inbound from Mobix, our board said, okay. Given this, we should, you know, as a former CEO said, pop off the manhole cover, take a look around. They refused to engage in our process, sign an NDA.

But, you know, right now, their their price is kinda below market, and, you know, we obviously their their stock is under a dollar. Their balance sheet is, you know, not that we live in a glass house, but, you know, we have some questions there. So, the saga continues, but it’s all pretty much reported in the in the press. But certainly, for microcap companies, particularly in the semiconductor space, which is a land of giants, consolidation makes a lot of sense. Scale cut out the G and A, other costs, etcetera.

And that’s obviously something why the board said, hey. We should, you know, start a process, which, you know, we’re working with Craig Hallamont. I think we’re out of time. Thank you all so much for attending. We appreciate it, and look forward to seeing you on one on ones.

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