[Form 4] Palladyne AI Corp. Insider Trading Activity

Rhea-AI Filing Summary

Stephen Twitty, a director of Palladyne AI Corp. (ticker shown as PDYN in the filing), reported a grant of 9,078 restricted stock units (RSUs) on 09/22/2025. Each RSU represents the right to one share and the award was reported with a price of $0. Following the grant, the filing shows the Reporting Person beneficially owns 9,765 shares, of which 687 shares are held in a joint brokerage account with the Reporting Person's spouse. The RSUs vest on the earlier of the first anniversary of the award or the day before the next annual meeting, subject to continued service. The Form 4 was signed by an attorney-in-fact on behalf of Mr. Twitty on 09/23/2025.

Positive

• 9,078 RSUs granted reported clearly in the Form 4
• Vesting schedule disclosed (earlier of one‑year anniversary or day before next annual meeting, subject to continued service)
• Post‑transaction beneficial ownership provided (9,765 shares), improving transparency

Negative

• Grant reported at $0, indicating no cash consideration disclosed
• No information on total outstanding shares or dilution impact provided in this filing
• Only limited ownership context (e.g., percentage ownership of the company not disclosed)

Insights

Corporate Governance Expert

TL;DR: Director received time‑based RSUs that vest with continued service, increasing reported beneficial ownership.

The grant of 9,078 restricted stock units is a standard time‑based equity award that vests on performance of continued service to the issuer, with vesting tied to either a one‑year anniversary or the day before the next annual meeting. The disclosure that 687 shares are jointly held clarifies the Reporting Person's direct versus shared holdings. This Form 4 provides clear, routine disclosure of director compensation in equity form without additional cash consideration.

Securities Analyst

TL;DR: Report shows a non‑cash equity grant increasing reported ownership; no derivative transactions disclosed.

The filing records a non‑derivative award (RSUs) with a reported price of $0 and no accompanying options, warrants, or other derivative securities reported in Table II. The post‑transaction beneficial ownership total of 9,765 shares provides a snapshot of the director's stake after the grant. The information is specific and actionable for ownership tracking but does not include broader compensation totals or dilution impact beyond the shares reported.

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

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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^*

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

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

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

3. Date of Earliest Transaction (Month/Day/Year)
09/22/2025

4. 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 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	09/22/2025		A		9,078	A	$0	9,765(1)	D(2)

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. Includes 9,078 restricted stock units ("RSUs"), each RSU representing the right to receive one share of common stock of the Issuer. The RSUs will vest on the earlier of (i) the first anniversary of the date the award is granted or (ii) the day prior to the date of the next annual meeting of the Issuer's stockholders following the date the award was granted, in each case, subject to the Reporting Person continuing to be a Service Provider through the applicable vesting date.

2. 687 of the reported shares are held in a joint brokerage account with the Reporting Person's spouse.

	/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 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.

FAQ

What did Palladyne AI Corp. (PDYN) director Stephen Twitty report on Form 4?

The Form 4 reports a grant of 9,078 restricted stock units (RSUs) to Stephen Twitty on 09/22/2025 and post‑transaction beneficial ownership of 9,765 shares.

When do the RSUs granted to Stephen Twitty vest?

The RSUs vest on the earlier of the first anniversary of the award or the day prior to the next annual meeting, subject to continued service as a Service Provider.

Does the Form 4 show any derivative transactions for PDYN related to Stephen Twitty?

No. Table II for derivative securities contains no reported transactions; the filing only reports non‑derivative RSUs.

How many of Mr. Twitty's shares are jointly held with his spouse?

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

Who signed the Form 4 on behalf of Stephen Twitty and when?

The Form 4 was signed by Stephen Sonne, attorney‑in‑fact, on behalf of Stephen Twitty on 09/23/2025.