America's Cross-Domain Force Multiplier NASDAQ: PDYN / January 2026 Disclaimer This presentation and any related oral statements contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements regarding Palladyne AI's preliminary unaudited revenue for the year ended December 31, 2025, preliminary unaudited backlog and cash and cash equivalents as of December 31, 2025, estimated cash burn for 2026, anticipated growth and ...

Summary of Palladyne AI Conference Call Company Overview - **Company**: Palladyne AI (NasdaqGM:PDYN) - **Industry**: Defense Technology and Artificial Intelligence Key Points and Arguments Strategic Transformation - Palladyne AI is undergoing a strategic transformation to become a fully integrated AI and defense technology company through the acquisitions of GuideTech and Crucis [4][8][20] - The launch of Palladyne Defense marks a significant shift from a pure-play AI company to a vertically integrated defense technology business [7][8][20] Product Offerings - **Palladyne IQ**: Powers robotics automation for commercial and industrial robots [6] - **Palladyne Pilot**: Provides advanced autonomous cooperation for unmanned systems, rebranded as **SwarmOS** for defense applications [6][11] - **Banshee**: A low-cost, reusable precision loitering munition designed for tactical operations [14][15] - **SwarmStrike**: A long-range, intelligent loitering munition that delivers cruise missile capabilities at lower costs [16] Market Demand and Positioning - The Department of Defense (DoD) is shifting focus towards cost per effect, reshoring production, and integrating AI into mission systems [9][10] - Palladyne Defense aims to fill a market gap by providing agile, vertically integrated solutions that can scale production and meet rapid iteration requirements [10][20] Financial Projections - The combined acquisitions are expected to triple Palladyne AI's revenue from approximately $8 million in 2024, with positive adjusted EBITDA contributions [20][21] - An 18-month backlog exceeding $10 million is anticipated, including contracts with the U.S. Air Force and Navy [21][24] Acquisitions and Integration - **GuideTech**: Contributes engineering talent and rapid prototyping capabilities, enabling the transition from concept to prototype in less than six months [12][40] - **Crucis**: A certified U.S. manufacturer that supports major defense programs and aligns with national strategies for reshoring production [18][19] Operational Structure - Palladyne AI will operate through two focused businesses: Palladyne Defense and Palladyne Commercial, both powered by a shared autonomy core [22][23] - The defense segment integrates SwarmOS, GuideTech, and Crucis to serve government and public safety customers [22] Leadership and Expertise - The leadership team has been strengthened with experienced individuals from military and national security backgrounds, enhancing the company's strategic direction [26] Future Outlook - Palladyne AI is positioned for significant growth in 2026, with expectations of increased customer engagement across its portfolio [27] - The company is focused on advancing its technology and integrating new products to meet the evolving demands of the defense sector [27][28] Additional Important Information - The company has a strong financial foundation with $57.1 million in cash and equivalents as of September 30 [24] - A new U.S. patent has been announced covering key elements of embodied AI and autonomous coordination capabilities [24] - The sales cycle for defense products remains uncertain, but the acquisitions are expected to provide more avenues for monetization [48][49] This summary encapsulates the critical aspects of Palladyne AI's conference call, highlighting the company's strategic direction, product offerings, market positioning, financial outlook, and operational structure.