GARAGIC DENIS 4

What Happened

• Denis Garagic, Chief Technology Officer of Palladyne AI Corp. (PDYN), was granted 35,000 restricted stock units (RSUs) reported on 2026-03-10 (award, code A). The Form 4 also reports a sale on 2026-03-12 of 12,945 shares at $7.55 per share for proceeds of $97,735 (sale, code S).
• According to the filing footnotes, 30,000 shares (represented by RSUs) settled on March 10, 2026 and were then reduced by the 12,945 shares sold to cover income tax withholding. The sale was a sell-to-cover tax withholding, not a discretionary open-market trade.

Key Details

• Grant: 35,000 RSUs reported on 2026-03-10 (acquisition at $0.00).
• Sale: 12,945 shares sold on 2026-03-12 at $7.55; proceeds ~$97,735.
• Shares remaining from the settled portion: per footnote F3, 30,000 settled on 3/10/26 and, after the 12,945-share sell-to-cover, 17,055 of those settled shares remained issued to the reporting person (total overall holdings not fully disclosed in the Form 4).
• Vesting: footnote F1 states the RSUs are subject to the 2021 Equity Incentive Plan with 25% vesting on March 10, 2027 and 1/12 of the award vesting quarterly thereafter beginning May 20, 2027 (subject to continued service).
• Tax withholding: the sale was to cover income taxes related to RSU vesting under a sell-to-cover arrangement (footnote F2) — not a discretionary sale.
• Filing timeliness: Form 4 filed 2026-03-12 for transactions on 3/10/26 and 3/12/26 (filed within the normal Form 4 reporting window).

Context

• RSUs are awards that convert to shares subject to vesting; the reported sale was a routine sell-to-cover to meet tax obligations and does not necessarily indicate a broader change in insider sentiment. Purchases typically carry more weight as bullish signals; this filing reflects compensation settlement and tax withholding.