{"url_path":"/sec/fatn/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 BUSINESS**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-18","source_url":"https://www.sec.gov/Archives/edgar/data/1993400/0001493152-26-024184-index.html","accession_number":"0001493152-26-024184","cik":"0001993400","ticker":"FATN","issuer_name":"Fatpipe Inc/UT","edgar_url":"https://www.sec.gov/Archives/edgar/data/1993400/0001493152-26-024184-index.html","primary_entity_key":"0001993400","primary_entity_name":"Fatpipe Inc/UT"},"word_count":5717,"has_tables":true,"body_markdown":"**ITEM\n1. BUSINESS**\n\n \n\n**Overview**\n\n \n\nFatPipe\nis a leading developer of enterprise-class, application-aware, secure SD-WAN solutions and integrated single-stack cybersecurity solutions\nfor organizations, including enterprises, communication service providers, security service providers, government organizations, and\nother middle-market companies.\n\n \n\nWe\nstrive to be the global leader in delivering leading-edge enterprise-class networking software technology. We are dedicated to continually\nimproving the way organizations connect, ensuring their networks are secure, reliable, and supporting their continued success. Our commitment\nlies in empowering our customers with a seamless and dependable connectivity infrastructure that safeguards their critical data and fosters\nbusiness continuity. We further aim to ensure our customers have unparalleled insights into their network operations.\n\n \n\nWe\nfocus on enabling organizations to connect, secure, and monitor their networks through a unified software platform. Our solutions are\ndesigned to operate across cloud, hybrid cloud, and on-premise environments, supporting distributed applications, users, and infrastructure.\nBy integrating networking, cybersecurity, and monitoring capabilities within a single software stack, we aim to reduce the complexity\nassociated with deploying and managing multiple point solutions, while providing consistent policy enforcement, centralized visibility,\nand coordinated network and security operations.\n\n \n\nTo\ndeliver on this vision, we hold over a dozen software and technology patents, which we leverage through an integrated suite of software\nsolutions to offer our customers a reliable and secure platform to support mission-critical applications running on cloud, hybrid cloud\nand on-premise networks. Our core offerings include SD-WAN, SASE, single stack cybersecurity (“Cybersecurity”), and network\nmonitoring service (“NMS”) software solutions, each of which is typically offered to our customers as a subscription service.\n\n \n\nOur\nSD-WAN / SASE platform includes integrated traffic management and routing capabilities that address a broad set of network management\nneeds to manage multi-line network traffic and routing. When customers have multiple data lines, and one of the lines fails, FatPipe\nautomatically and dynamically transfers network traffic from one data line to another (failover) without disconnecting the application\nsession. When all lines are functional, FatPipe is able to improve data traffic speed and optimize bandwidth.\n\n \n\nOur\ncybersecurity platform is designed as an integrated component of our software stack and includes a range of security capabilities intended\nto protect network traffic, users, and applications across distributed environments. These capabilities include firewall functionality,\nintrusion detection and prevention, secure web gateway controls, content filtering, encrypted connectivity, secure virtual private network\n(“VPN”) access, and application-aware policy enforcement. Our platform is also designed to support advanced threat protection\ntechniques, including traffic inspection, anomaly detection, and controls intended to mitigate unauthorized access and data exfiltration.\nThese security capabilities are designed to operate consistently across WAN links, cloud environments, and network endpoints, providing\ncoordinated protection across both edge and core network infrastructure.\n\n \n\nIn\naddition to our software capabilities, we provide cybersecurity testing and protection services designed to support customer security\noperations. These services include web application penetration testing, internal network and server penetration testing, vulnerability\nand port scanning of internet-facing assets, and managed web application firewall (“WAF”) services. These services are intended\nto complement our software platform by enabling customers to assess, validate, and enhance their security posture.\n\n \n\nOur\nnetwork monitoring capabilities provide visibility into network performance, device health, and traffic behaviour, enabling customers\nto monitor and manage their environments through centralized reporting and analytics. By integrating monitoring functionality within\nthe same platform as networking and security, we aim to provide customers with a unified operational view of their network and security\nenvironments.\n\n \n\nWe\nservice customers in geographies around the world, with our largest customer populations located in the United States and India. We plan\nto continue expanding our presence throughout North America and parts of Southeast Asia. Further, FatPipe is in discussions with potential\npartners to offer geography specific software license bundles to address these market needs. Customers in different geographies require\ndifferent licenses and network servers specific to their needs and prices. We plan to expand its presence in Mexico and Asia markets\nwith products and services bundles to address geography specific markets.\n\n \n\n4\n\n \n\n \n\n**Industry**\n\n \n\nSD-WAN\nis a network architecture that allows enterprises to utilize software and virtualization technologies to enhance the performance, security,\nand manageability of their WANs that connect offices, data centers, cloud applications, and cloud storage. This innovative architecture\nhas emerged as a force in the world of networking and connectivity, revolutionizing the way organizations manage and optimize their WANs.\nSD-WAN technology enables organizations to leverage multiple types of connection, such as broadband, multiprotocol label switching, and\nLTE, to create a unified and intelligent network that can be centrally managed and orchestrated. This flexibility not only improves network\nefficiency but also reduces costs associated with expensive dedicated circuits, and the technology represents a seismic shift from traditional\nstatic network architectures to dynamic, agile, and cloud-centric solutions. SD-WAN applications have gained tremendous momentum in recent\nyears due to its ability to address many evolving needs of modern businesses.\n\n \n\nSASE\ntechnology enhances network security by enabling centralized policy enforcement and encryption. It allows for granular control over traffic,\nensuring that sensitive data is transmitted securely across the network. This is particularly significant in today’s cyber-threat\nlandscape, where data breaches and network vulnerabilities are constant concerns for businesses of all sizes, and trends such as remote\nwork and distributed organizations have only served to exacerbate potential susceptibility.\n\n \n\nNMS\nallows for the systematic monitoring and management of computer networks. Generally consisting of an integrated set of tools, NMS solutions\nprovide network administrators with the ability to remotely detect and address network issues or anomalies before they affect network\nperformance, integrity, or end-user experience. Many NMS solutions combine multiple data collection methods to offer comprehensive insights\ninto a range of network performance metrics, allowing administrators to continuously and remotely optimize network configurations, troubleshoot\nproblems, manage capacity, identify suspicious network activity and generate analytics for further assessment.\n\n \n\nCybersecurity\nsolutions are designed to protect networks, applications, and data from unauthorized access, disruption, or attack. These solutions may\ninclude a range of capabilities such as firewalling, intrusion detection and prevention, secure access controls, traffic inspection,\nand threat detection. As organizations increasingly operate in distributed, cloud-based environments, cybersecurity has become a critical\ncomponent of network infrastructure, requiring protection across endpoints, network layers, and cloud applications. Enterprises are increasingly\nadopting integrated approaches to cybersecurity that combine multiple security functions within unified platforms in order to reduce\ncomplexity and improve coordination across security operations.\n\n \n\nThe\ncontinued evolution of enterprise IT environments, including increased reliance on cloud computing, remote access, and distributed applications,\nhas contributed to the convergence of networking, security, and monitoring functions. As a result, organizations are increasingly seeking\nsolutions that provide integrated capabilities across these domains, rather than deploying and managing multiple independent systems.\n\n \n\n**Total\nAddressable Market**\n\n \n\n*SD-WAN.*\nThe market for SD-WAN products was estimated to be approximately $4.5 billion in 2023 (according to the research published via the Maia\nResearch Report) with expected market size to grow to over $17.6 billion by 2030. The North America and Asia-Pacific (“APAC”)\nsegments of the market, which represent FatPipe’s primary markets, are expected to achieve continued growth in the near term. According\nto Gartner, Inc., the North America market for SD-WAN solutions will grow at an estimated 18% compound annual growth rate (“CAGR”)\nthrough 2025, while growth in APAC is projected to exceed 60% CAGR. This significant growth trajectory has been attributed to several\nfactors, including the rise in remote work, need for enhanced network security, migration of applications to the cloud, and overall digital\ntransformation efforts of enterprises.\n\n \n\n*SASE.*According to the Maia Research Report, total revenues for SASE software and platform solutions is expected to grow from $6.4 billion\nin 2022 to $27.2 billion by 2030, resulting in a CAGR of almost 20.0% during the forecast period. This is driven by the rise of work-from-home\nmandating secure zero-trust remote connectivity, cloud-adoption broadening the definition of a corporate network, and the convergence\nof cloud and on-premise networks creating the need for a unified solution.\n\n \n\n5\n\n \n\n \n\n*NMS.*\nThe total NMS market, including both cloud-based and on-premise solutions, is projected by the Maia Research Report to grow at a more\nmodest CAGR of 10.0% for the period from 2022 to 2030. Total market revenues for NMS solutions is estimated at $2.0 billion in 2022,\napproximately three-quarters of which is categorized at cloud-based, and is projected to grow to approximately $4.4 billion, when cloud-based\nsolutions will account for almost 85% of the total market.\n\n \n\n*Cybersecurity.*\nAccording to a report by Grand View Research, the global cybersecurity market was valued at approximately $245.6 billion in 2024 and\nis projected to reach approximately $500.7 billion by 2030, representing a CAGR of approximately 12.9% over the forecast period. Growth\nin this market is being driven by increasing adoption of cloud computing, the expansion of connected devices, the growing complexity\nof cyber threats, and evolving regulatory requirements. As organizations continue to operate in distributed and hybrid environments,\ndemand for cybersecurity solutions has expanded beyond traditional perimeter defenses to include protection across endpoints, network\ninfrastructure, and cloud-based applications. In addition, enterprises are increasingly adopting integrated security approaches that\ncombine multiple security functions within unified platforms in order to reduce operational complexity and improve coordination across\nsecurity operations.\n\n \n\n \n\n**FatPipe\nSoftware Solutions**\n\n \n\nOur\nobjective is to offer a suite of solutions to ensure our customers can securely support their networks in this cloud-first world. We\nare committed to driving a trusted customer experience through innovation and a diverse set of capabilities. Our core offerings are based\non a complete, integrated suite of software solutions, including SD-WAN, SASE, NMS, and Cybersecurity capabilities, each of which can\nbe individually licensed to create an experience tailored to a customer’s needs and network configuration. Additionally, all of\nour technologies are available for commercial sale. These capabilities are designed to operate together as part of a single software\nstack, allowing customers to manage networking, security, and monitoring functions through a centralized platform. By integrating these\nfunctions, our solutions are intended to reduce the complexity associated with deploying and maintaining multiple independent systems,\nwhile enabling consistent policy enforcement, centralized visibility, and coordinated network and security operations across distributed\nenvironments. Further, our product pipeline consists of new SD-WAN security features and enhancements to the NMS, as well as single-stack\ncybersecurity features to serve all of a customer’s cybersecurity requirements from a single vendor.\n\n \n\n6\n\n \n\n \n\n \n\nAs\nnetworks become increasingly critical to business operations and more exposed to cyber threats, organizations require continuous monitoring\nand protection across both network infrastructure and application environments. Our platform incorporates built-in and automated capabilities\ndesigned to monitor network status, detect potential intrusion activity, enforce geographic access controls, and regulate external web\naccess based on defined policies.\n\n \n\nOur\nSD-WAN capabilities provide application-aware traffic management and dynamic routing across multiple network connections. When multiple\ndata connections are available, our platform is designed to manage traffic across those connections and, in the event of a disruption,\ntransfer traffic between available links without interrupting application sessions. When multiple links are active, our platform is designed\nto optimize bandwidth utilization and improve overall network performance.\n\n \n\nOur\ncybersecurity capabilities are integrated within the same software platform and are designed to protect network traffic, users, and applications\nacross distributed environments. These capabilities include firewall functionality, intrusion detection and prevention, secure web gateway\ncontrols, content filtering, encrypted connectivity, and secure virtual private network (“VPN”) access. Our platform also\nsupports application-aware policy enforcement, enabling organizations to define and apply security policies based on application behavior\nand traffic characteristics.\n\n \n\nIn\naddition, our cybersecurity functionality is designed to support advanced threat protection techniques, including traffic inspection,\nanomaly detection, and controls intended to mitigate unauthorized access and data exfiltration. These capabilities are designed to operate\nconsistently across WAN links, cloud environments, and network endpoints, providing coordinated protection across both edge and core\nnetwork infrastructure. To support these capabilities, we also provide cybersecurity testing and protection services, including web application\npenetration testing, internal network and server penetration testing, vulnerability and port scanning of internet-facing assets, and\nmanaged web application firewall (“WAF”) services. These services are designed to assist customers in identifying vulnerabilities,\nvalidating security controls, and maintaining the effectiveness of their security environments.\n\n \n\nOur\nnetwork monitoring capabilities provide centralized visibility into network performance, device health, and traffic activity. By integrating\nmonitoring functionality within the same platform as networking and security, our solutions are designed to enable customers to correlate\nperformance metrics with security and traffic patterns, supporting more efficient troubleshooting and operational decision-making. Our\nmonitoring and reporting capabilities may also be utilized in conjunction with our cybersecurity services to provide customers with ongoing\nvisibility into network activity, security events, and system performance.\n\n \n\n7\n\n \n\n \n\n**Software-Defined\nWide Area Network (SD-WAN)**\n\n \n\nOur\nprimary offering is an SD-WAN software platform that integrates a broad array of network traffic management and routing, security, and\nmonitoring functions and is predominately sold on a subscription basis. The platform can be delivered on a dedicated commodity appliance\nor virtual configuration, and can be installed in a variety of network environments, including cloud, hybrid or on-premise.\n\n \n\nOur\nSD-WAN solution is designed to enable organizations to manage multiple network connections simultaneously and dynamically control the\nflow of application traffic across those connections. By supporting multiple connectivity types, including broadband, fiber, and wireless\nnetworks, our platform provides flexibility in network design and supports distributed enterprise environments.\n\n \n\nA\nkey capability of our platform is its ability to maintain continuous application connectivity in the event of network disruptions. When\none connection becomes unavailable, our software is designed to transfer traffic across alternate connections without interrupting active\napplication sessions. This functionality is intended to support business continuity for applications that require persistent connectivity,\nincluding voice, video, and transactional systems.\n\n \n\nWhen\nmultiple connections are active, our platform is designed to distribute traffic across available links in order to improve bandwidth\nutilization and optimize application performance. These capabilities are intended to reduce reliance on higher-cost dedicated circuits\nwhile maintaining performance and reliability across the network.\n\n \n\nOur\nSD-WAN solution offers a number of benefits for managing and maintaining network infrastructure, including:\n\n \n\n●*Enterprise-Class\nReliability and Network Resiliency*: Rapid failover of data, VPN, video and voice over\nIP (“VoIP”) traffic in sub-seconds. The speed at which FatPipe can restore connection\nintegrity minimizes transaction failures and duplicate transactions resulting from disruptions\nto network connectivity.\n\n   \n\n●*Lower\nTotal Cost of Ownership*: Reductions in bandwidth requirements, duplicate traffic, latency\nand jitter lowers overall network costs.\n\n   \n\n●*Highly\nScalable*: Supports over 12 million sessions across land line, satellite and LTE/4G/5G\nnetworks for large scale deployments.\n\n   \n\n●*Secure\nEnvironment*: Incorporates a robust security suite for intrusion detection and prevention\n(“IDS/IPS”), web filtering and firewall solutions. Our patented multi-path security\ntransmission capabilities increase WAN transmission security.\n\n   \n\n●*Ease\nof Use*: Intuitive management interface enables a seamless experience across all customer\nlocations and scalable deployments across varied use cases. We provide customers with the\nability to centrally manage their WAN and branch office configurations.\n\n   \n\n●*Flexible\nDeployments*: Zero-touch deployments with cloud-based or in-band network configuration\nand management.\n\n \n\nOur\nSD-WAN solution is suitable for multi-location, single location with high density, and multi-cloud environments, and offers these features\nin a single device for network end-point (or edge) and branch network needs. The solution enables multi-path VPN for hybrid connectivity,\nintelligent WAN edge management, cloud disaster recovery for hybrid cloud management, and other capabilities, all at enterprise-class\nperformance levels. Its application-aware network optimization capabilities are suitable for virtual machines (“VMs”) for\nall major hypervisors, including AWS, Azure Cloud, Oracle and Google.\n\n \n\n8\n\n \n\n \n\n \n\nAccording\nto research published in 2026 by Software Reviews, an independent research organization and division of Info-Tech Research Group, FatPipe’s\nSD-WAN solutions are the top-ranked solutions for middle-market companies, based on Software Review’s assessment of the complete\nsoftware experience, which includes measurement of product features and satisfaction, as well as vendor experience and capabilities.\nFatPipe has also been previously rated as top-ranked in InfoTech’s 2024 and 2025 reports.\n\n \n\n \n\n9\n\n \n\n \n\n**Secure\nAccess and Service Edge (SASE)**\n\n \n\nOur\nSASE solution seamlessly integrates a WAN-Edge appliance with an SASE software access solution, to provide connectivity, consistent security\nand optimized user experience for hybrid workforce, branch office and retail locations. Our SASE capabilities are designed to operate\nas part of our broader software platform, enabling organizations to apply networking and security policies across users, devices, and\nlocations within a unified architecture. By combining connectivity and security functions, our solution is intended to support secure\naccess to applications and data while reducing the operational complexity associated with managing multiple independent systems. Our\nSASE solution offers virtual network functions, which combine networking and network security services into a single cloud-delivered\nsolution, and are available for major virtual customer premise equipment (vCPE) hardware providers. Additionally, our SASE offerings\ninclude the following features:\n\n \n\n●*Firewall*:\nIncludes Firewall-as-a-Service and traffic management capabilities based on security policies.\n\n   \n\n●*Geo\nFencing and DDoS*: Protects internal networks from external access originating in specific\ngeographic locations and denial of service attacks.\n\n   \n\n●*Encryption*:\nSupports data encryption protocol suite to ensure data security.\n\n   \n\n●*MPSec*:\nOur patented MPSec multi-path security solution manages network security, application flows\nand load balancing across multiple paths connecting remote sites with the data center.\n\n   \n\n●*Selective\nEncryption*: Allows customers to select specific data traffic that needs to be encrypted.\n\n   \n\n●*Web\nFiltering*: Controls access to external websites based on customer-defined security policies.\n\n   \n\n●*Cloud-Hosted\nSecurity*: Provides additional security such as data loss prevention, antivirus, and content\nfiltering.\n\n \n\n \n\n**Network\nMonitoring Service (NMS)**\n\n \n\nOur\nEnterpriseView reporting system for network monitoring provides a platform to monitor customer network environments, including wide area\nnetwork performance and the operation of deployed devices. The system is designed to support centralized visibility across distributed\nnetwork infrastructures, including branch locations and cloud-based environments. Our NMS capabilities are integrated within our broader\nsoftware platform and are designed to operate in conjunction with our SD-WAN and cybersecurity functionality. By incorporating monitoring\nwithin the same platform as networking and security, our solution is intended to enable customers to observe network performance, traffic\nbehavior, and security-related events through a unified interface. This integration is designed to allow customers to correlate network\nperformance metrics with traffic patterns and security activity, supporting more efficient identification of performance issues, anomalous\nbehavior, and potential security concerns.\n\n \n\nOur\nNMS solution is a scalable solution that supports large data loads, maintains seamless connectivity across thousands of branches, boosts\nnetwork performance to handle intensive demands, ensures comprehensive network monitoring and management, and provides real-time insights\ninto a network or device’s health and performance. The platform provides real-time visibility into network and device performance,\nincluding connection status, utilization, and operational health. Device health information is presented through centralized dashboards\nand reporting tools in real time, and a tabular dashboard gives a detailed view of each device’s line condition and utilization\nin real time, enabling administrators to monitor network conditions and performance trends. The system is designed to provide detailed\nviews of network line conditions, traffic utilization, and device status in real time, supporting proactive management and troubleshooting.\n\n \n\n10\n\n \n\n \n\n**Cybersecurity**\n\n \n\nOur\ncybersecurity capabilities are designed as an integrated component of our software platform and are intended to provide protection for\nnetwork traffic, users, and applications across distributed and cloud-based environments. These capabilities are delivered within the\nsame software stack as our SD-WAN, SASE, and network monitoring solutions, enabling coordinated enforcement of security policies and\ncentralized visibility across network and application environments.\n\n \n\nOur\ncybersecurity software functionality includes a range of security controls designed to operate across network infrastructure and endpoints.\nThese capabilities include firewall functionality, intrusion detection and prevention, secure web gateway controls, content filtering,\nencrypted connectivity, and secure virtual private network (“VPN”) access. In addition, our platform supports application-aware\npolicy enforcement, enabling organizations to define and apply security policies based on application behavior, user activity, and traffic\ncharacteristics.\n\n \n\nOur\nplatform is also designed to support advanced threat protection techniques, including traffic inspection, detection of anomalous behavior,\nand controls intended to mitigate unauthorized access and data exfiltration. These capabilities are designed to operate consistently\nacross wide area network connections, cloud environments, and network endpoints, providing coordinated protection across both edge and\ncore network infrastructure.\n\n \n\nBy\nintegrating cybersecurity capabilities within the same platform as networking and monitoring functions, our solutions are designed to\nenable customers to manage security and network operations through a unified interface. This integration is intended to reduce the complexity\nassociated with deploying multiple standalone security products while supporting consistent policy enforcement and improved visibility\nacross network environments.\n\n \n\nIn\naddition to our software-based cybersecurity capabilities, we provide cybersecurity testing and protection services designed to support\ncustomer security operations and risk management efforts. These services include web application penetration testing, internal network\nand server penetration testing, vulnerability and port scanning of internet-facing assets, and managed web application firewall (“WAF”)\nservices.\n\n \n\nThese\nservices are designed to assist customers in identifying potential vulnerabilities, validating the effectiveness of implemented security\ncontrols, and maintaining the integrity of their network and application environments. Our cybersecurity services may be utilized in\nconjunction with our software platform to provide ongoing visibility into security posture and to support continuous monitoring and improvement\nof customer security environments.\n\n \n\n \n\n11\n\n \n\n \n\n**Technology\nand Architecture**\n\n \n\nOur\ncore technology has been developed internally by its founding management team and supported by a long-tenured group of engineers and\nsoftware developers. We hold a portfolio of 13 patents that cover a range of SD-WAN and related capabilities. Specifically, our patented\nclaims cover key SD-WAN and related functionality, including:\n\n \n\n●Combining\nrouters to increase concurrency and redundancy in external network access and supplement\nfault tolerance of WANs. The ability to transmit traffic over multiple paths and to failover\nin sub seconds ensures network reliability and resiliency, which are critical for corporate\nand government networks.\n\n   \n\n●VoIP\nover multiple WAN pathways to ensure that voice traffic is not dropped, which is essential\nfor emergency communications such as 911 centers.\n\n   \n\n●VPN-secure\nsessions over multiple ISPs to ensure transmission security globally.\n\n   \n\n●Dynamic\nmanagement of IP addresses and the ability to manage and load balance incoming traffic over\nmultiple ISPs.\n\n \n\n**FatPipe’s\nServices**\n\n \n\nOur\nsoftware solutions are provided through a subscription-based model. During the fixed term of the subscription, we include a portfolio\nof services, which offer our customers technical support, professional services, training, and cybersecurity services.\n\n \n\n**Technical\nSupport Services**\n\n \n\nWe\nmaintain our own team of technical support specialists to ensure quality control and build and retain trust throughout the entire customer\nexperience. Our technical support services, incorporating both remote and on-site support, include installation services, configuration\nassistance, monitoring and alerts notification, and development of performance reports.\n\n \n\n**Professional\nServices**\n\n \n\nWe\noffer limited professional services to our customers and channel partners. We may also provide more customized services for more complex\nuse cases, such as implementation design, network analysis, and projected capacity requirements.\n\n \n\n**Training\nServices**\n\n \n\nWe\noffer training to our customers and channel partners directly through our support staff. These services are designed to educate end-users\nand partners on implementation, use, functionality, and maintenance of FatPipe solutions.\n\n \n\n**Cybersecurity\nServices**\n\n \n\nWe\nprovide cybersecurity services designed to support customers in identifying vulnerabilities, assessing security controls, and maintaining\nthe effectiveness of their security environments. These services are intended to complement our software platform and may be delivered\nin conjunction with deployments of our networking and cybersecurity solutions.\n\n \n\nOur\ncybersecurity services include web application penetration testing, internal network and server penetration testing, vulnerability and\nport scanning of internet-facing assets, and managed web application firewall (“WAF”) services. These services are designed\nto simulate real-world attack scenarios, identify potential weaknesses in network and application environments, and provide customers\nwith actionable insights to address identified risks.\n\n \n\nWeb\napplication penetration testing is designed to evaluate the security of customer-facing applications by identifying vulnerabilities in\napplication logic, configuration, and underlying systems. Internal network and server penetration testing is intended to assess potential\nrisks associated with internal access, including the ability of unauthorized actors to move laterally within a network environment.\n\n \n\nVulnerability\nand port scanning services are used to identify exposed services, open ports, and known vulnerabilities across internet-facing infrastructure.\nManaged WAF services are designed to provide protection for web-based applications by monitoring and filtering incoming traffic based\non defined security rules and threat patterns.\n\n \n\n12\n\n \n\n \n\n**Technology\nDevelopment Services**\n\n \n\nThrough\nour FatPipe Technologies division, we offer a diverse set of consulting services for the development and deployment of highly optimized\nand often complex wide area network (“WAN”) and local area network (“LAN”) solutions. We provide a host of networking,\nprogramming, and professional services as part of our engagement, which often include a mix of web, software, and application development,\nERP integrations, outsourced staffing assistance and a range of IT consulting services. These services are generally independent of our\ncore software solution offerings, and typically serve enterprises involved with such technologies as telemedicine, university and educational\ninstitution management, kiosk development, and multimedia communications. In addition, network design services further assist in marketing\nFatPipe’s core software solutions.\n\n \n\n**Reseller\nand Channel Partnerships**\n\n \n\nWe\nprimarily offer our software solutions to end-user customers through our distributors, value-added resellers, ISPs, and other third parties,\nwith whom we build and maintain relationships through our territory managers. We leverage a diverse network of over 100 partnerships\nto generate revenues, and have maintained many of these relationships for over a decade.\n\n \n\nOur\nrevenues are primarily generated in the United States, with India generating an increasing share of sales since 2022. FatPipe has invested\nconsiderable resources in developing these relationships, and our distribution arrangements are not exclusive with any partner.\n\n \n\nIn\n2023, we began an extensive program to train our sales force to support domestic and international commercial accounts. The program focused\non enhancing our partners’ product knowledge and technical capabilities, and has been instrumental in driving sales growth. Further,\nto minimize barriers during the sales process, FatPipe software solutions are sold off a pre-approved price list and customer contracts\nbetween FatPipe and the end-user customer are embedded within the partner’s master agreement. After a sale, FatPipe maintains a\ndirect relationship with the end-user by providing installation, maintenance, and support services.\n\n \n\nWe\nplan to replicate our reseller and channel partner model to enter or expand in new markets or geographies. We are currently exploring\noptions to grow our global sales, with emphasis on expansion opportunities within the burgeoning India information technology market.\nWe are in discussions with multiple potential partners in Southeast Asia, which does not include China, to address these local markets.\nFurther, FatPipe is in discussions with potential partners to offer geography specific software license bundles to address these market\nneeds. Customers in different geographies require different licenses and network servers specific to their needs and prices. We plan\nto expand our presence in Mexico and Asia markets with products and services bundles to address geography specific markets.\n\n \n\n**Diverse\nEnd Customers**\n\n \n\nFatPipe’s\nsoftware solutions have been deployed by over 2,500 end-user customers across a diverse set of sectors including education, financial\nservices, government, healthcare, hospitality, legal, manufacturing, retail, and transportation and in various deployment models, including\nhybrid, SaaS, and managed services. The Company’s end-user customers range in size from smaller businesses to Fortune 1000 enterprise\nusers, but its core customer base can be classified as mid-market companies. No end-user customer accounted for over 10% of total revenue\nin fiscal year 2026 or 2025.\n\n \n\nChannel\npartner concentration in our revenue base is significant. For the fiscal year ended March 31, 2026, three channel partners accounted\nfor approximately 39.31% of total revenue (fiscal year 2025: two channel partners accounted for approximately 49.54% of total revenue,\nwith one channel partner accounting for approximately 45.09% of total revenue). Channel partner concentration is described in further\ndetail in Note 1 to the consolidated financial statements.\n\n \n\n**Competition**\n\n \n\nFatPipe\nfaces competition from companies with varying capabilities in SD-WAN, SASE, NMS, and Cybersecurity, some of which are larger companies\nwith greater access to capital and other resources.\n\n \n\n**Sales\nand Marketing**\n\n \n\nOur\nmarketing strategy is focused on building our brand and driving end-user customer awareness for our solutions. Our internal marketing\nteam is responsible for developing marketing materials and allocating our marketing resources across various channels and activities.\nWe supplement our marketing activities with a variety of sales tools, including product literature, awards, technical materials, training,\nseminars, conference attendance, webinars, and various other activities.\n\n \n\n13\n\n \n\n \n\n**Software\nDevelopment (Research and Development)**\n\n \n\nFatPipe\nhas maintained a robust research and development team of employees, many of whom have 15 or more years of experience with us. We continue\nto develop new technologies and features that help us maintain or improve our position in the market. We also have enhanced our support\ndatabase to enable faster resolution of complex problems and to train our engineers to address problems faster, enabling us to grow without\nthe need to linearly add personnel as we scale. We are automating our testing processes to reduce the time to introduce new features\nand new versions of software to control and manage engineering costs.\n\n \n\n**Intellectual\nProperty**\n\n \n\nWe\nprimarily rely upon patent, trademark, copyright, and trade secret laws, confidentiality procedures, and contractual provisions to protect\nour IP and proprietary technology. As of the date of this Annual Report, we had 13 U.S. patents and seven U.S. trademarks for FatPipe,\nInc. and FatPipe Networks Private Limited.\n\n \n\n*Issued\nPatents, per data of the United States Patent and Trademark Office (USPTO) as of March 31, 2026.*\n\n \n\n**Number**\n \n**Issue\nDate**\n \n**Assignee**\n\n6295276\n \n29\nSeptember 2001\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n6493341\n \n10\nDecember 2002\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n6775235\n \n10\nAugust 2004\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n7269143\n \n11\nSeptember 2007\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n7444506\n \n28\nOctober 2008\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n7877510\n \n25\nJanuary 2011\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n8356346\n \n15\nJanuary 2013\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n8780811\n \n15\nJuly 2014\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n8995252\n \n31\nMarch 2015\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n10164822\n \n25\nDecember 2018\n \nFATPIPE,\nINC.\n\n10374830\n \n6\nAugust 2019\n \nFATPIPE,\nINC.\n\n10819536\n \n27\nOctober 2020\n \nFATPIPE,\nINC.\n\n10965649\n \n30\nMarch 2021\n \nFATPIPE,\nINC.\n\n \n\n*Trademark\nRegistrations, per data of the United States Patent and Trademark Office (USPTO) as of March 31, 2026.*\n\n \n\n**Number**\n \n**Reg.\nDate**\n \n**Mark**\n \n**Last\nListed Owner**\n\n2236238\n \n30\nMar 1999\n \nFAT\nPIPE\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n2696702\n \n11\nMar 2003\n \nMPVPN\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n2717874\n \n20\nMay 2003\n \nMPSEC\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n3568580\n \n27\nJan 2009\n \nSPAM\nPOLICE\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n4316990\n \n9\nApr 2013\n \nFATPIPE\n \nFATPIPE\nNETWORKS PRIVATE LIMITED\n\n \n\n14\n\n \n\n \n\n**Recent\nDevelopments**\n\n \n\n**Initial\nPublic Offering**\n\n \n\nOn\nApril 7, 2025, we entered into an underwriting agreement (the “Underwriting Agreement”) with D. Boral Capital LLC, as representative\n(the “Representative”) of the underwriters named therein (the “Underwriters”), pursuant to which the Company\nagreed to sell to the Underwriters, in a firm commitment initial public offering (the “Offering”), an aggregate of 695,656\nshares of the Company’s common stock, no par value per share (the “Common Stock”), at an initial public offering price\nof $5.75 per share. The Common Stock was offered pursuant to a registration statement on Form S-1, as amended (File No. 333-280925),\noriginally filed with the U.S. Securities and Exchange Commission (the “Commission”) on July 19, 2024, as amended, and which\nwas declared effective by the Commission on February 12, 2025. A post-effective amendment to the registration statement related to the\nOffering was filed with the Commission on March 11, 2025, and was declared effective by the Commission on March 17, 2025.\n\n \n\nOn\nApril 9, 2025, the Company closed the Offering and, including the partial exercise of the underwriters’ over-allotment option,\nissued and sold an aggregate of 800,004 shares of common stock. The total gross proceeds to the Company from the Offering, before deducting\ndiscounts and expenses, were approximately $4,600,023. The Company received net proceeds of approximately $3,935,522 pursuant to the\nOffering.\n\n \n\nA\nfinal prospectus relating to the Offering was filed with the Commission on April 7, 2025. The Common Stock was previously approved for\nlisting on The Nasdaq Capital Market and commenced trading under the ticker symbol “FATN” on April 8, 2025.\n\n \n\n**Platform\nand Sales Organization Expansion**\n\n \n\nSince\nour initial public offering, we have expanded our platform capabilities and expanded our sales organization. We introduced an integrated\nsingle-stack architecture that combines our networking, security, and monitoring functionality within a unified software platform. As\npart of this expansion, we enhanced our product offerings to include additional cybersecurity capabilities designed to operate within\nthe same software environment as our SD-WAN, SASE, and network monitoring solutions.\n\n \n\nIn\naddition, we have doubled the headcount of our sales organization, increasing the number of sales personnel, which has resulted in an\nincrease in sales capacity. This expansion has contributed to growth in our sales pipeline and the number of customer opportunities processed\nduring the fiscal year.\n\n \n\nBased\non current business trends and internal expectations, we anticipate continued growth in sales activity and overall revenue. These expectations\nare subject to various risks and uncertainties, including those described in the “Risk Factors” section of this Annual Report.\n\n \n\n**Human\nCapital Management**\n\n \n\nAs\nof March 31, 2025, we had 172 full-time employees, with 56 in the United States, 112 in India, and 4 in the Philippines. None of our\nemployees are represented by labor unions and we consider our employee relations to be good. Due to our consistent presence as an employer\nin India, which dates back to 2002, we believe we enjoy a more stable workforce than many technology companies in the region.\n\n \n\nWe\ndo not currently have any employment agreements with our co-founders or other employees. Compensation arrangements with our executive\nofficers and directors are governed by our Compensation Committee.\n\n \n\n**Facilities**\n\n \n\nFatPipe,\nInc. and FatPipe Technologies, Inc. are headquartered in Salt Lake City, Utah. FatPipe Networks (India) Private Limited is headquartered\nin Chennai, India. We conduct sales, marketing, research and development, and customer support activities from each of these locations.\n\n \n\n**Corporate\nInformation**\n\n \n\nFatPipe,\nInc. was incorporated in Utah on October 14, 2009. Our principal executive offices are located at 392 East Winchester Street, Fifth Floor,\nSalt Lake City, Utah 84107, and our telephone number is (801) 281-3434. Our website address is www.fatpipe.com. The information contained\non, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K, and you should\nnot consider information on our website to be part of this Annual Report.\n\n \n\n**Available\nInformation**\n\n \n\nWe\nmake available, free of charge through our website, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports\non Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as\nreasonably practicable after we electronically file or furnish them to the SEC. The SEC also maintains an Internet website (www.sec.gov)\nthat contains such reports, proxy statements and other information about us.\n\n \n\n15"}