Form 4: Palladyne AI CTO Sells Shares for Tax Obligations

Palladyne AI's Chief Technology Officer, Denis Garagic, sold 15,611 shares of common stock to cover tax liabilities related to restricted stock unit vesting.

Summary

• Denis Garagic, Chief Technology Officer of Palladyne AI Corp. (PDYN), reported a transaction on November 21, 2025.
• The transaction involved the sale of 15,611 shares of common stock.
• The shares were sold at a weighted-average price of $5.1129 per share, with prices ranging from $5.0601 to $5.151.
• The sale was executed to cover income tax liabilities associated with the vesting of restricted stock unit (RSU) awards, as part of a sell-to-cover arrangement.
• This was not a discretionary transaction by the reporting person.
• Following the reported transaction, Denis Garagic beneficially owns 569,248 shares of common stock.
• 34,600 RSUs settled on November 20, 2025, which were subsequently reduced by the 15,611 shares sold for taxes.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the transaction is a non-discretionary sale to cover tax liabilities from RSU vesting, which is a routine administrative event and not indicative of management's discretionary view on the company's prospects.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This transaction is a routine insider filing (Form 4) reporting a non-discretionary sale of shares by an executive to cover tax obligations upon the vesting of restricted stock units. It does not provide insights into broader industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: Minimal impact as this is a routine, non-discretionary transaction by an executive to cover tax obligations, not a signal of a change in company fundamentals or executive confidence.
• Employees: No direct impact indicated.

Key Dates

Recommendation

The reported transaction is a routine, non-discretionary sale by an executive to cover tax liabilities associated with the vesting of restricted stock units. This type of transaction does not reflect a change in the executive's confidence in the company's future or its operational performance. Therefore, it provides no new information that would warrant a change in investment recommendation, and a 'hold' stance is maintained based solely on this filing.

Keywords

Palladyne AI Corp, PDYN, Denis Garagic, Chief Technology Officer, Insider Trading, Form 4, Stock Sale, Restricted Stock Units, Tax Liabilities, Sell-to-Cover