Palladyne AI Corp Provides 2024 Year End Business and Financial Update; Year Over Year Revenues Increased By 27% While Operating Expenses Decreased By 73%.

Full Year 2024 Highlights and Recent Developments

• Substantially improved balance sheet, with $40.1 million cash, cash equivalents and marketable securities on hand as of December 31, 2024, and an additional $14.4 million (before commissions and offering expenses) raised between January 1, 2025, and February 12, 2025, with no debt for borrowed money or other long-term financial obligations on the balance sheet other than the Company's long-term office lease.
• Second half 2024 target of $1.6-$2.0 million net cash burn per month achieved, with approximately the same rate expected to continue through 2025.
• Commercial version of Palladyne IQ product for industrial robots and cobots launched, with new customer trials expected to occur in the first half of 2025.
• Commercial version of Palladyne Pilot product for small drones on track for commercial release by end of Q1 2025, with integration on Red Cat drones expected to quickly follow.
• Year over year revenues increased by 27% while operating expenses decreased by 73%.
• New three-year employment contract entered into with President and CEO, with Mr. Ben Wolff to receive targeted 2025 net cash salary received of $1 (after deductions for taxes and employee benefit contributions) for the first year, plus a significant long-term incentive opportunity based on stock value that, subject to certain acceleration provisions, is generally scheduled to vest after three years of continued service.