THATCHER TREVOR 4

What Happened Trevor Thatcher, Chief Financial Officer of Palladyne AI (PDYN), had 17,500 previously granted RSUs settle on March 10, 2026 and sold 7,649 of those settled shares in an open‑market, sell‑to‑cover transaction on March 12, 2026 for $7.55 each, generating $57,750. Separately, Thatcher was granted 25,000 restricted stock units (RSUs) on March 10, 2026 (no cash paid); those RSUs are subject to a future vesting schedule.

Key Details

• Transactions: 25,000 RSU grant (A) on 2026-03-10; sale (S) of 7,649 shares on 2026-03-12 at $7.55 for $57,750.
• Net settled shares: 17,500 RSUs settled on March 10, 2026; after selling 7,649 for taxes, 9,851 settled shares remained.
• New grant vesting: the 25,000 RSU grant vests 25% on March 10, 2027 and then 1/12 each quarter beginning May 20, 2027, subject to continued service. (See Footnote F1.)
• Sale reason: sell‑to‑cover for tax withholding related to RSU vesting (sell-to-cover; not a discretionary sale by the reporting person). (Footnotes F2 & F3.)
• Filing timeliness: Form 4 filed 2026-03-12 for transactions reported on 2026-03-10–03-12 (filed within the standard Form 4 reporting window).

Context The sale was a routine sell‑to‑cover transaction to satisfy tax obligations from RSU vesting and does not necessarily indicate the CFO’s view on the company’s prospects. The 25,000 RSUs granted on March 10 are unvested and will vest over time per the stated schedule.