Strong balance sheet with $57.1 million in cash, cash equivalents and marketable securities and no debt

Patent progress demonstrates growing strategic relevance in defense applications

Company to host investor call and webcast during the week of November 17 to discuss emerging strategic developments

SALT LAKE CITY--(BUSINESS WIRE)--November 12, 2025-- 

Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) ("Palladyne AI"), a developer of artificial intelligence software for robotic platforms in the industrial and defense sectors, today announced financial results for its third fiscal quarter ended September 30, 2025.

Ben Wolff, President and Chief Executive Officer of Palladyne AI, commented:

"We continue to execute with financial discipline as we move toward commercial expansion. That same discipline guides how we develop and protect our technology. The issuance of U.S. Patent No. 12,452,957 covering our closed loop tasking and control architecture for heterogeneous sensor networks represents a foundational milestone for Palladyne AI. It reinforces our ownership of the core autonomy framework that enables distributed systems to operate collaboratively and strengthens the protection around our AI-driven autonomy platform.

"Building on this news, we're also optimistic about a new potential development award from the Department of War relating to Palladyne Pilot. Together with our collaboration with Draganfly to integrate Palladyne Pilot into their UAV platforms, we are expanding the technology's reach into trusted, real-world defense environments, in-line with current Department of War directives as laid out by Secretary of War Peter Hegseth.

"The addition of Lieutenant General Twitty to our Board of Directors brings exceptional insight into national defense priorities and strengthens our alignment with mission critical needs across the government and defense sectors.

"We also look forward to hosting an investor call next week to discuss recent and important upcoming strategic developments that will provide additional insight into our next phase of growth, including specifically, how Palladyne AI is aligning itself with the current Department of War priorities and initiatives."

Third Quarter Fiscal 2025 Highlights

   --  Ended the quarter with $57.1 million in cash, cash equivalents and 
      marketable securities and no debt, maintaining multi-year operating 
      runway supported by a disciplined capital management strategy; 
 
   --  Operating cash use of approximately $6.3 million, consistent with 
      expectations and prior-quarter levels; 
 
   --  Appointed Lieutenant General (Ret.) Stephen M. Twitty to the Board of 
      Directors, bringing four decades of distinguished military service and 
      extensive defense-sector expertise to the Company's leadership, 
      underscoring Palladyne AI's expanding role in defense and national 
      security applications (Sep. 23, 2025 Press Release); and 
 
   --  Continued evolution and expansion of the Palladyne IQ and Palladyne 
      Pilot software platforms. 

Recent Business Updates

   --  The Company continues to advance the next version of its Palladyne IQ 
      software with a focus on elevating the user experience, accelerating 
      performance and strengthening industrial robustness for early-stage 
      deployments beginning in the first half of 2026; 
 
   --  Palladyne Pilot is expanding integration across additional UAV 
      platforms while progressing internal testing and field evaluations to 
      validate readiness for defense and commercial use; 
 
   --  The Company is optimistic about a potential new Palladyne Pilot related 
      development contract award with the Department of War; 
 
   --  Awarded U.S. Patent No. 12,452,957, Closed Loop Tasking and Control of 
      Heterogeneous Sensor Networks, which protects the architecture that 
      enables multiple autonomous systems and sensors to collaborate as one 
      coordinated network and reinforces the uniqueness of Palladyne's Pilot AI 
      autonomy platform (Nov. 3, 2025 Press Release); 
 
   --  Established collaboration with Draganfly Inc. $(DPRO)$ to 
      integrate Palladyne Pilot with Draganfly UAV platforms aimed at enabling 
      autonomous swarming and enhanced multi-drone coordination for government 
      and defense customers (Oct. 21, 2025 Press Release); and 
 
   --  The Company continues to meet all development milestones on its 
      existing government contracts and is advancing additional IP protection 
      initiatives through ongoing patent filings. 

Strategic Developments Conference Call and Webcast Information

Palladyne AI's management will host an important strategic update conference call next week to discuss the Company's strategic positioning. The Company will put out a press release ahead of time with the specific details.

For more information, please visit www.palladyneai.com and connect with us on LinkedIn at www.linkedin.com/company/palladyneaicorp.

About Palladyne AI Corp.

Palladyne AI Corp. $(PDYN)$ has developed an advanced artificial intelligence (AI) and machine learning (ML) software platform poised to revolutionize the capabilities of robots, enabling them to observe, learn, reason, and act in a manner akin to human intelligence. Our AI and ML software platform empowers robots to perceive variations or changes in the real-world environment, enabling them to autonomously maneuver and manipulate objects accurately in response.

The Palladyne AI software solution operates on the edge and dramatically reduces the significant effort required to program and deploy robots enabling industrial robots and collaborative robots (cobots) to quickly achieve autonomous capabilities even in dynamic and or complex environments. Designed to enable robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing (i.e., learning) from their past experience using dynamic real-time operations "on the edge" (i.e., on the robotic system) without extensive programming and with minimal robot training. Palladyne AI believes its software has wide application, including in industries such as automotive, aviation, construction, defense, general manufacturing, infrastructure inspection, logistics and warehousing. Its applicability extends beyond traditional robotics to include Unmanned Aerial Vehicles (UAVs), Unmanned Ground Vehicles (UGVs), and Remotely Operated Vehicles (ROVs). Palladyne AI's approach is expected to elevate the return on investment associated with a diverse range of machines that are fixed, fly, float, or roll.

By enabling autonomy, reducing programming complexity and enhancing efficiency, we are paving the way for a future where machines can excel in tasks that were once considered beyond their reach.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future cash burn and expenses, timing and growth of future revenues, sufficiency of the Company's capital, software product development, the Company's collaboration efforts with Draganfly, timing of product sales or deployments, the capabilities or future capabilities of the Company's foundational technology and products, the benefits of the software foundational technology and products and the industries that could benefit from them, the applicability of the Company's foundational technology and products to different kinds of machines (such as UAVs, UGVs and ROVs), macroeconomic, political and other structural influences (including the current U.S. government shutdown) or conditions and their impact on our current or future business, contracts and prospects. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends" or "continue" or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Palladyne AI's management's current expectations and beliefs, as well as a number of assumptions concerning future events. However, there can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Palladyne AI is not under any obligation and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

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November 12, 2025 07:00 ET (12:00 GMT)