Financial Results - Palladyne AI Corp. reported financial results for the year ended December 31, 2024, with significant updates to be detailed in the press release dated February 20, 2025[7]. - The press release includes key financial metrics, which are expected to reflect the company's performance and growth strategies[7]. - The financial results and strategic outlook will be further elaborated in the attached press release, which is considered material information[7]. Company Classification and Regulatory Environment - The company is classified as an emerging growth company under the Securities Act of 1933, indicating it may benefit from reduced regulatory requirements[5]. Communication and Investor Relations - Palladyne AI Corp. utilizes multiple communication channels, including SEC filings and social media, to disseminate material information to investors and the public[8]. - The company has a dedicated investor relations website to facilitate communication and provide updates on financial performance and strategic initiatives[8]. - The company emphasizes the importance of reviewing publicly available information for insights into its operations and future plans[8]. Market Activity - The trading symbol for Palladyne AI Corp. is PDYN, and it is listed on The Nasdaq Stock Market LLC[5]. - The company has issued redeemable warrants, exercisable for shares of common stock at an exercise price of $69.00 per share[5]. Product Development and Market Expansion - The company is actively engaged in product development and market expansion, although specific details will be provided in the forthcoming press release[7].

Financial Reporting and Updates - Palladyne AI Corp announced financial information for the three and six month periods ended June 30, 2024 [2] - The company provided a mid-year business and financial update in a press release dated August 7, 2024 [6] - The information in Items 2.02 and 7.01 of the Form 8-K is not deemed "filed" under the Exchange Act [5] Investor Communication and Presentations - An investor presentation was posted on the company's website on August 7, 2024, for future investor meetings [3] - The investor presentation contains forward-looking statements subject to risks and uncertainties [3] - The company communicates material information through SEC filings, public conference calls, and its website [4] Social Media and Public Engagement - The company uses social media platforms like X and LinkedIn to share news and developments [4] Company Information and Classification - The company is registered on the Nasdaq Stock Market under the symbols PDYN and PDYNW [1] - The company's principal executive offices are located in Salt Lake City, Utah [1] - The company is classified as an emerging growth company [2]

Revenue Performance - Revenue for the three months ended March 31, 2024, increased by $1.1 million, or 50%, to $3.4 million compared to $2.3 million for the same period in 2023[106] - Product development contract revenue decreased by $1.4 million, or 62%, from $2.3 million in Q1 2023 to $0.9 million in Q1 2024, primarily due to the completion of certain contracts[108] - Revenue from product sales increased by $2.6 million in Q1 2024, attributed mainly to legacy product sales[109] AI/ML Software Platform - The AI/ML Software Platform is expected to be ready for initial customer testing by June 2024, with revenue generation anticipated in 2025[97] - The AI/ML Software Platform is designed to be hardware agnostic, compatible with most industrial robots, enhancing operational efficiency[97] - The company is focusing on its AI/ML Software Platform, suspending the development of hardware products due to limited resources[98] - The market demand for the AI/ML Software Platform remains unproven, with risks related to customer adoption and pricing strategies[102] Operating Expenses - Total operating expenses decreased by $14.7 million, or 58%, from $25.5 million in Q1 2023 to $10.8 million in Q1 2024[110] - Research and development expenses fell by $6.5 million, or 69%, from $9.4 million in Q1 2023 to $2.9 million in Q1 2024, primarily due to reduced labor costs[112] - General and administrative expenses decreased by $4.6 million, or 47%, from $9.7 million in Q1 2023 to $5.1 million in Q1 2024, mainly due to lower labor-related expenses[113] - Sales and marketing expenses dropped by $2.9 million, or 78%, from $3.7 million in Q1 2023 to $0.8 million in Q1 2024, attributed to reduced professional service fees[114] Cash Flow and Liquidity - Net cash used in operating activities improved by $12.9 million, or 64%, from $20.1 million in Q1 2023 to $7.2 million in Q1 2024[126] - Net cash provided by investing activities increased by $5.6 million, or 54%, from $10.3 million in Q1 2023 to $15.9 million in Q1 2024[128] - As of March 31, 2024, the company had $31.8 million in cash, cash equivalents, and marketable securities, sufficient to support operations for at least the next 12 months[120] - The company believes it has sufficient liquidity to operate for at least the next twelve months without needing additional capital[101] - The company may need to seek additional financing to support working capital requirements and potential acquisitions, which could impact its financial condition[122] External Factors - Geopolitical and macroeconomic factors, including inflation and international conflicts, could significantly impact the company's operations and demand for its products[105] Backlog - The backlog as of March 31, 2024, was $4.2 million, with a total estimated contract value of $14.1 million[119] Workforce Management - The company has implemented reductions in force in July and November 2023 to conserve cash and manage operating expenses[101]

Financial Performance - The company incurred a net loss of $115.6 million for the year ended December 31, 2023, compared to a net loss of $157.1 million for the year ended December 31, 2022[78]. - Negative cash flow from operating activities was $76.6 million for the year ended December 31, 2023, up from $65.4 million in 2022[84]. - The company expects to continue incurring significant losses until achieving substantial software licensing revenue[79]. - The company anticipates fluctuations in financial results due to variations in operating costs, revenues, and product demand, particularly as it commercializes its AI/ML Software Platform[142]. - The company incurs significant expenses as a publicly-traded entity, which may adversely affect its financial condition and operating results[147]. - The company does not expect to achieve profitability in the near future, and its ability to utilize tax attributes may be restricted[155]. - The company has recorded a full valuation allowance related to its net operating loss carryforwards and other deferred tax assets due to uncertainty in realizing future benefits[156]. Strategic Focus and Development - The company announced a strategic pivot on November 14, 2023, to focus resources on the development of its AI/ML Software Platform, discontinuing hardware product development[80]. - The anticipated revenue will primarily derive from the development and licensing of the AI/ML Software Platform, which is still under development[87]. - The company expects to incur substantial research and development costs, which could significantly reduce profitability and may not result in revenue[129]. - The company may seek strategic alliances, joint ventures, and acquisitions, but there is no guarantee these will lead to successful business relationships[157]. - The company expects strategic business relationships to be crucial for future growth, but identifying and securing these opportunities may require significant management resources[158]. Market and Competitive Risks - There is uncertainty regarding the market acceptance and commercialization of the AI/ML Software Platform, which may delay anticipated revenue[86]. - The company has no previous experience in commercializing software products, which may hinder effective market entry[85]. - Customer trials and discussions for the AI/ML Software Platform may not lead to purchases, impacting revenue generation[89]. - The evolving market for AI/ML solutions presents risks, and failure to meet customer expectations could adversely affect future revenue[92]. - The company faces challenges in hiring and retaining qualified personnel, which could affect product development timelines[86]. - The company anticipates that many potential customers will be large businesses with significant negotiating power, making sales challenging[102]. - Market demand, pricing, and adoption rates for the software platform are uncertain, which could materially affect business results[99]. - The AI/ML and robotics industries are rapidly evolving, and the company may struggle to keep pace with technological changes and competition[104]. Operational Challenges - The company faces challenges in completing product development and commercialization of the AI/ML Software Platform within expected timelines[110]. - The company has limited negotiating leverage with suppliers, which may lead to unfavorable pricing and terms, impacting costs and component availability[131]. - The company plans to maintain a limited set of suppliers for hardware components, with some being sole or single source suppliers, increasing supply chain risk[130]. - The company faces risks related to supply chain disruptions caused by external factors, which could significantly impact operations[133]. - The company may face challenges in exporting software due to compliance with export control laws, which could hinder revenue generation[184]. Legal and Regulatory Risks - The introduction of AI/ML technologies may result in increased regulatory scrutiny and potential legal liabilities, impacting the company's operations and financial results[160]. - The company is subject to evolving data privacy laws, which may increase compliance costs and potential liabilities[167]. - The company may face stringent penalties under the GDPR and other international data protection laws, impacting its operations and financial condition[169]. - Legal claims and regulatory proceedings could materially affect the company's financial condition and operating results[165]. - Compliance with government contracting laws and regulations poses increased risks, including potential audits and investigations that could adversely affect business operations[178]. - The company is subject to U.S. and foreign anti-corruption laws, with violations potentially leading to significant legal and financial consequences[180]. Intellectual Property Risks - The company's intellectual property protection relies on patents and trade secrets, with uncertainties in patent positions potentially affecting competitive advantage[187]. - The company may face intellectual property infringement claims that could limit its ability to commercialize software products and result in significant litigation costs[197]. - The outcome of patent litigation is often uncertain, and there is no assurance that existing patents do not infringe on others[198]. - The company has taken precautions to protect its proprietary information, but unauthorized use or reverse engineering by competitors could harm its competitive position[191]. - Trademark rights enforcement is complex, and claims of infringement could lead to limitations or loss of trademark rights, resulting in costly litigation[192]. Workforce and Management Changes - The company conducted two reductions in force (RIFs) in the past year, affecting approximately 24% of the workforce in July and 70% in November, as part of a strategic pivot to focus on the AI/ML Software Platform[126]. - The company is highly dependent on key personnel, including its Chief Technology Officer, and any unexpected loss could materially affect product development and business operations[143]. - The company has experienced changes in its senior management team, with a new CEO effective February 23, 2024, which may lead to operational and strategic changes[144]. - The company faces intense competition for qualified AI/ML software engineers, which may increase recruitment costs and affect its ability to execute its strategy[145]. - The company has closed its facility in Pittsburgh, Pennsylvania, as part of a strategic pivot to focus on its AI/ML Software Platform, potentially limiting its ability to attract skilled employees[146]. Financial Market and Stock Risks - The company received a deficiency notice from Nasdaq on October 24, 2023, indicating it no longer meets the minimum bid price requirement, with a closing bid price below $1.00 for 30 consecutive business days[209]. - The company has a market value of publicly held shares at $11.7 million as of February 14, 2024, which is below the $15 million minimum market value requirement[210]. - The company has until April 22, 2024, to regain compliance with the minimum bid price requirement by maintaining a closing bid price of at least $1.00 for 10 consecutive business days[209]. - If compliance is not regained, the company may transfer to the OTC Markets, which typically has lower trading volumes and higher volatility compared to Nasdaq[212]. - The company may consider a reverse stock split as an option to resolve noncompliance with the minimum bid price requirement[211]. - The trading price of the company's securities has been volatile, influenced by various market factors beyond its control[204]. - The company's stock price may decline due to the large number of shares subject to employee equity awards, leading to concentrated selling periods[202]. Security and Compliance Risks - The company is subject to cybersecurity risks that may disrupt operations and compromise sensitive data, with increasing incidents of sophisticated attacks reported in the industry[171]. - The company is implementing additional security measures to protect data and systems, but these measures cannot guarantee complete security[174]. - The company anticipates incurring significant costs to detect and prevent privacy and security breaches, which could impact financial condition and operations[177]. - The company has identified material weaknesses in its internal control over financial reporting and is undertaking remediation efforts, which may increase legal and compliance costs[150]. - Increased scrutiny regarding environmental, social, and governance (ESG) practices may lead to additional costs and impact the company's reputation and customer retention[186].

WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-39897 UNITED STATES SECURITIES AND EXCHANGE COMMISSION SARCOS TECHNOLOGY AND ROBOTICS CORPORATION (Exact Name of Registrant as Specified in its Charter) (Stat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-39897 SARCOS TECHNOLOGY AND ROBOTICS CORPORATION (Exact Name of Registrant as Specified in its Charter) (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-39897 SARCOS TECHNOLOGY AND ROBOTICS CORPORATION (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorporation or organization) 650 South 500 West, Suite 150 Salt L ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39897 SARCOS TECHNOLOGY AND ROBOTICS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR For the transition period from _______ to _______ Commission File Number: 001-39897 (I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (888) 927-7296 Securities registered pursuant to Section 12(b) of the Act: | | Trading | | | --- | --- | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-39897 SARCOS TECHNOLOGY AND ROBOTICS CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 8 ...