Palladyne AI (PDYN) CTO sells 17K shares to cover RSU taxes

Rhea-AI Filing Summary

Palladyne AI Corp. (PDYN) reported that its Chief Technology Officer, Denis Garagic, sold 17,255 shares of common stock on August 21, 2026 at a weighted-average price of $6.1589 per share, in multiple trades between $6.1201 and $6.2101. The sale was made pursuant to sell-to-cover arrangements to satisfy income tax liabilities related to the vesting of restricted stock units and is described as not a discretionary transaction by the officer. Following these sales, Garagic directly holds 990,798 shares, which include RSUs; 41,539 RSUs settled on August 20, 2026 and were reduced by the 17,255 shares sold for taxes.

Insider Trade Summary

Net Seller: 17,255 shares

Net Sell 1 txn

Insider GARAGIC DENIS

Role CHIEF TECHNOLOGY OFFICER

Sold 17,255 shs ($106K)

Type	Security	Shares	Price	Value
Sale	Common Stock F1, F2, F3	17,255	$6.1589	$106K

Holdings After Transaction: Common Stock — 990,798 shares (Direct)

Footnotes (3)

1. F1. Represents shares of common stock sold to cover income tax liabilities in connection with the vesting of restricted stock unit awards pursuant to sell-to-cover arrangements implemented by the Issuer, which the Reporting Person may elect to pay in cash, and does not represent discretionary transactions by the Reporting Person.
2. F2. The "Amount" and "Price" reported in this Column 4 reflect the aggregate number and weighted-average price, respectively, of shares sold. These shares were sold in multiple transactions at prices ranging from $6.1201 to $6.2101, inclusive. The reporting person undertakes to provide to the Issuer, any security holder of the Issuer, or the SEC staff, upon request, full information regarding the number of shares sold at each separate price within the range set forth herein.
3. F3. Includes shares represented by RSUs, of which 41,539 settled on August 20, 2026 and were then reduced by the 17,255 shares sold for taxes as reported on this Form 4.

Key Figures

Shares sold: 17,255 shares of Common Stock Weighted-average sale price: $6.1589 per share Sale price range: $6.1201 to $6.2101 per share +2 more

5 metrics

Shares sold 17,255 shares of Common Stock Sold on August 21, 2026 by CTO Denis Garagic

Weighted-average sale price $6.1589 per share Aggregate weighted-average price for the 17,255 shares sold

Sale price range $6.1201 to $6.2101 per share Multiple transactions within this price range

Shares owned after transaction 990,798 shares Direct holdings by Denis Garagic following the sale, including RSUs

RSUs settled 41,539 RSUs RSUs that settled on August 20, 2026 before tax-related share sale

Key Terms

sell-to-cover arrangements, restricted stock unit, weighted-average price

3 terms

sell-to-cover arrangements financial

"shares of common stock sold to cover income tax liabilities in connection"

restricted stock unit financial

"in connection with the vesting of restricted stock unit awards pursuant"

A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.

weighted-average price financial

"reflect the aggregate number and weighted-average price, respectively, of"

Weighted-average price is the average of multiple prices where each price is counted according to its size or importance—larger trades carry more weight than smaller ones, like averaging course grades by credit hours. It matters to investors because it gives a more realistic picture of the true price paid or received, helping assess trade execution, compare performance, calculate cost basis, and value positions more accurately than a simple average.

FAQ

What insider transaction did PDYN report for CTO Denis Garagic?

Palladyne AI Corp. reported that CTO Denis Garagic sold 17,255 shares of common stock on August 21, 2026 at a weighted-average price of $6.1589 per share in connection with RSU vesting-related tax obligations.

Was the PDYN insider sale by Denis Garagic a discretionary trade?

No. The filing states the 17,255 shares were sold under sell-to-cover arrangements to satisfy income tax liabilities from RSU vesting and "does not represent discretionary transactions" by Denis Garagic.

What price range were the PDYN shares sold at by Denis Garagic?

The 17,255 PDYN shares sold by Denis Garagic were executed in multiple transactions at prices ranging from $6.1201 to $6.2101 per share, with a weighted-average price of $6.1589 per share.

How many PDYN shares does Denis Garagic hold after this transaction?

After the reported sale, Denis Garagic holds 990,798 PDYN shares directly, including shares represented by RSUs. This amount reflects the vesting of 41,539 RSUs on August 20, 2026, reduced by the 17,255 shares sold for taxes.

How are RSUs involved in this PDYN Form 4 for Denis Garagic?

The filing explains that 41,539 RSUs settled on August 20, 2026. To cover related income tax liabilities, 17,255 shares from these vested RSUs were sold under sell-to-cover arrangements, with the remaining shares included in Garagic’s 990,798 post-transaction holdings.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Form 4 Insider Transactions: What Each Field Means →

Available on EDGAR 08/21/2026 - 07:52 PM Accepted by SEC EDGAR 08/21/2026 - 07:52 PM Learn about SEC filing dates

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

GARAGIC DENIS

(Last) (First) (Middle)

C/O PALLADYNE AI CORP.

650 SOUTH 500 WEST, SUITE 150

(Street)

SALT LAKE CITY UTAH 84101

(City) (State) (Zip)

UNITED STATES

(Country)

2. Issuer Name and Ticker or Trading Symbol
Palladyne AI Corp. [ PDYN ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	CHIEF TECHNOLOGY OFFICER

2a. Foreign Trading Symbol

3. Date of Earliest Transaction (Month/Day/Year)
08/21/2026

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

4. If Amendment, Date of Original Filed (Month/Day/Year)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	08/21/2026		S(1)		17,255	D	$6.1589(2)	990,798(3)	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. Represents shares of common stock sold to cover income tax liabilities in connection with the vesting of restricted stock unit awards pursuant to sell-to-cover arrangements implemented by the Issuer, which the Reporting Person may elect to pay in cash, and does not represent discretionary transactions by the Reporting Person.

2. The "Amount" and "Price" reported in this Column 4 reflect the aggregate number and weighted-average price, respectively, of shares sold. These shares were sold in multiple transactions at prices ranging from $6.1201 to $6.2101, inclusive. The reporting person undertakes to provide to the Issuer, any security holder of the Issuer, or the SEC staff, upon request, full information regarding the number of shares sold at each separate price within the range set forth herein.

3. Includes shares represented by RSUs, of which 41,539 settled on August 20, 2026 and were then reduced by the 17,255 shares sold for taxes as reported on this Form 4.

	/s/ Stephen Sonne, attorney-in-fact on behalf of Denis Garagic	08/21/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
* Form 4: SEC 1474 (03-26)