[Form 3] Palladyne AI Corp. Initial Statement of Beneficial Ownership

Rhea-AI Filing Summary

Palladyne AI Corp. director Stephen Twitty reported initial beneficial ownership in a Form 3 filing. He directly owns 687 shares of common stock (687 held jointly with his spouse) and holds three fully or partially vested stock options covering a total of 4,465 shares of common stock: 1,643 exercisable at $1.59 (original grant May 20, 2023; vested March 29, 2024; repriced April 17, 2024), 322 exercisable at $1.59 (original grant May 20, 2022; vested March 29, 2023; repriced April 17, 2024), and 2,500 exercisable at $1.96 (original grant May 20, 2024; vested March 31, 2025). The Form 3 relates to an event dated 09/22/2025 and was signed on 09/23/2025.

Insights

Securities Analyst

TL;DR: Routine insider ownership disclosure showing modest direct holdings and vested options; no material change to control or capital structure.

Stephen Twitty, identified as a director, filed an initial Form 3 disclosing 687 common shares and options for 4,465 shares with exercise prices of $1.59 and $1.96. The options referenced were granted across 2022-2024 and include repricings in April 2024. This disclosure documents existing ownership and vested equity compensation; it does not report sales, purchases, or transactions that would alter outstanding share counts. For investors, the filing confirms insider alignment through equity but is not a material corporate event.

Corporate Governance Expert

TL;DR: Standard Section 16 filing by a director; shows vested compensation but no governance red flags or material shifts.

The Form 3 establishes the reporting baseline for director Stephen Twitty. It details jointly held shares and several fully or partially vested stock options, including repriced awards. There is no indication of option exercises, transfers, or changes in control. From a governance perspective, this is a routine transparency filing required under Section 16 and supports disclosure compliance.

SEC Form 3

FORM 3

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

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

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

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1. Name and Address of Reporting Person^*

Twitty Stephen

(Last) (First) (Middle)

C/O PALLADYNE AI CORP

650 SOUTH 500 WEST, SUITE 150

(Street)

SALT LAKE CITY UT 84101

(City) (State) (Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
09/22/2025

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

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

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

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

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

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

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	687	D(1)

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	(2)	05/20/2033	Common Stock	1,643	$1.59	D
Stock Option (right to buy)	(3)	05/20/2032	Common Stock	322	$1.59	D
Stock Option (right to buy)	(4)	05/20/2034	Common Stock	2,500	$1.96	D

Explanation of Responses:

1. 687 of the reported shares are held in a joint brokerage account with the Reporting Person's spouse.

2. This option was originally granted May 20, 2023, and the shares subject to the option fully vested on March 29, 2024. This option was repriced on April 17, 2024.

3. This option was originally granted May 20, 2022, and the shares subject to the option fully vested on March 29, 2023. This option was repriced on April 17, 2024

4. The option was originally granted May 20, 2024, and the shares subject to the option fully vested on March 31, 2025.

	/s/ Stephen Sonne, attorney-in-fact on behalf of Stephen Twitty	09/23/2025
	** 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 5 (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.

FAQ

What did Stephen Twitty disclose on the Form 3 for Palladyne AI (PDYNW)?

He disclosed direct ownership of 687 common shares (held jointly with his spouse) and stock options covering 4,465 common shares with exercise prices of $1.59 and $1.96.

When was the event requiring this Form 3 filing for PDYNW?

The date of the event requiring the statement is 09/22/2025, and the form was signed on 09/23/2025.

Are the disclosed stock options vested and what are their terms?

Yes. Options include 1,643 shares exercisable at $1.59 (grant May 20, 2023; vested March 29, 2024), 322 shares exercisable at $1.59 (grant May 20, 2022; vested March 29, 2023), and 2,500 shares exercisable at $1.96 (grant May 20, 2024; vested March 31, 2025).

Does the Form 3 report any sales or purchases of PDYNW stock?

No. The filing reports existing beneficial ownership and options; it does not show any sales or purchases.

What is Stephen Twitty's relationship to Palladyne AI listed on the form?

He is identified as a director of Palladyne AI Corp.