SCHEDULE 13G/A: Schlumberger Entities Maintain 4.4% Passive Stake in Palladyne AI Corp.

Schlumberger N.V. and its subsidiaries have filed an amended Schedule 13G, reaffirming their passive beneficial ownership of 4.4% of Palladyne AI Corp.'s common stock as of December 31, 2024.

Summary

• Schlumberger N.V. (Schlumberger Limited), Schlumberger B.V., Schlumberger Holdings Corporation, and Schlumberger Technology Corporation (collectively, the "Reporting Persons") jointly filed an Amendment No. 3 to Schedule 13G.
• The filing reports the beneficial ownership of 1,323,293 shares of Palladyne AI Corp.'s common stock.
• This represents 4.4% of Palladyne AI Corp.'s outstanding common shares.
• The percentage is based on 30,112,399 common shares outstanding as of September 30, 2024, as reported by Palladyne AI Corp. in its Form 10-Q filed on November 13, 2024.
• The Reporting Persons hold shared voting power and shared dispositive power over all 1,323,293 shares.
• The filing certifies that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of Palladyne AI Corp.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing reporting beneficial ownership. It is neutral in sentiment as it provides factual information without expressing positive or negative operational or financial outcomes.

Positives

• The continued holding of a significant, albeit passive, stake by a major entity like Schlumberger could be interpreted as a sign of confidence in Palladyne AI Corp.'s long-term prospects.
• The filing confirms a stable ownership structure with no indication of an intent to influence or change control, which can provide stability for the issuer.

Negatives

• The 4.4% stake is below the 5% threshold, indicating a passive investment without active influence or control over Palladyne AI Corp.'s operations or strategic direction.
• As an amendment, this filing primarily confirms existing ownership rather than announcing new investment or significant changes, offering limited new positive catalysts.

Risks

• The document itself does not detail specific risks related to Palladyne AI Corp.'s operations or financial health, as it is a beneficial ownership report.

Future Outlook

This Schedule 13G filing is a disclosure of beneficial ownership and does not contain any forward-looking statements or guidance regarding Palladyne AI Corp.'s future performance or strategic direction.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11."

Industry Context

Schlumberger, a global technology company focused on energy industry solutions, maintaining a stake in Palladyne AI Corp. suggests a potential interest in artificial intelligence applications, possibly for energy sector innovation or broader technology diversification. However, the filing itself does not elaborate on the strategic rationale.

Comparison to Industry Standards

• This filing is a standard Schedule 13G amendment, indicating passive beneficial ownership below the 5% threshold, which is a common practice for institutional investors not seeking control.
• The ownership percentage of 4.4% is consistent with a passive investment strategy, similar to how many large corporations or investment funds hold minority stakes in companies for strategic or financial reasons without direct operational involvement.

Related Party Transactions

• The Reporting Persons (Schlumberger N.V., Schlumberger B.V., Schlumberger Holdings Corporation, and Schlumberger Technology Corporation) are related entities, with Schlumberger N.V. being the ultimate parent, and the others being its direct or indirect wholly-owned subsidiaries. Their joint filing reflects their consolidated beneficial ownership.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional holder's passive stake, confirming no immediate intent for control changes.
• Management: Reassures management that this stake is passive and not intended to influence control, allowing them to focus on current strategic plans.

Next Steps

• No specific future actions or milestones are mentioned in this beneficial ownership filing.

Key Dates

Keywords

Palladyne AI Corp, Schlumberger, Beneficial Ownership, Schedule 13G, Common Stock, Passive Investment, SEC Filing, Institutional Ownership