The Saga of Palladyne AI (PDYN): An In-Depth Analysis of a Corporate Metamorphosis

Executive Summary

A Radical Transformation

This report analyzes Palladyne AI Corp. (NASDAQ: PDYN). The company has undergone a radical transformation, evolving from a pioneering robotics hardware developer into a pure-play artificial intelligence (AI) software firm.

Formerly known as Sarcos Technology and Robotics Corporation (STRC), the company was renowned for its “big robots.” These included the Guardian® XO powered exoskeleton and the Guardian® Sea Class underwater robot designed for tasks like ship hull cleaning.¹

In early 2024, the company executed a complete pivot. It ceased all hardware operations to focus exclusively on commercializing its advanced AI and machine learning (ML) software platform.² This strategic shift was marked by a name change and a new ticker symbol (PDYN), fundamentally redefining its business model and investment thesis.³

New Focus, New Revenue Model

Palladyne AI’s future revenue now depends entirely on two software products:⁴

Palladyne™ IQ for industrial robots.
Palladyne™ Pilot for drones and other unmanned systems.

The company has transitioned to a pre-revenue stage for these new products. Its business model is now based on software licensing fees.⁵

Key Financial Takeaways

A key financial takeaway is that the company’s reported net income of $15.3 million in the first half of 2025 is misleading. This figure stems from a $29.4 million non-cash, non-operating gain related to changes in the value of warrant liabilities.⁶ This accounting artifact masks the reality that the core business is operating at a loss.⁷

A High-Risk, High-Reward Proposition

This pivot has created a high-risk, high-reward proposition. Palladyne AI is essentially a 40-year-old startup. It leverages a deep history in robotics to compete as a nimble, high-margin software company.

Its success is contingent on its ability to execute its commercialization strategy. The company must achieve market adoption for its novel, hardware-agnostic AI platform. The platform’s goal is to provide the intelligence that makes all robots better, not just its own.

The Sarcos Legacy: A Four-Decade History in Advanced Robotics

To understand Palladyne AI’s current strategy, one must first appreciate the deep and storied history of its predecessor, Sarcos. For nearly four decades, the Sarcos name was synonymous with cutting-edge robotics. The company moved from the fantastical realms of entertainment to the demanding environments of industrial manufacturing and modern warfare.

This history is defined by the ambitious “big robots” that captured public imagination, from humanoid exoskeletons to the ship-cleaning underwater systems the company was known for. This legacy of innovation in the physical world provides the essential context for its radical leap into the purely digital domain of AI software.

From Animatronics to Exoskeletons: The Genesis of Sarcos

The company’s origins trace back to 1983. University of Utah professor Stephen Jacobsen founded Sarcos Research Corporation.⁸ Initially a bioengineering research institution, Sarcos quickly established a core competency in creating sophisticated robotic systems that mimicked biological movement with remarkable fidelity.⁹

This expertise found early commercial success in entertainment. Sarcos became the engineering force behind iconic animatronics, including the robotic dinosaurs for Universal Studios’ Jurassic Park: The Ride and the robotic fountain displays at the Bellagio Hotel in Las Vegas.⁹

This work was a prelude to the company’s defining project. In 2001, the Defense Advanced Research Projects Agency (DARPA) awarded Sarcos a multi-phase research grant.¹⁰ The objective was to design a powered, full-body exoskeleton for military applications. This project would capture the public imagination and become central to the Sarcos identity for the next two decades.¹⁰

The DARPA project’s success attracted the defense industry. In November 2007, defense contractor Raytheon purchased Sarcos to integrate its robotics expertise.¹⁰ From 2007 to 2015, the company operated as “Raytheon Sarcos,” focusing on developing technologies for U.S. government agencies.¹⁰ However, the exoskeleton prototype’s tethered power requirements limited its mobility and prevented it from moving beyond the prototype stage.⁸

In 2015, the company’s trajectory shifted again. A consortium led by Dr. Fraser Smith and Ben Wolff acquired the business back from Raytheon, re-establishing it as an independent entity.⁸ With Wolff as CEO and Smith as Chief Innovation Officer, the newly independent Sarcos set out to bring its advanced robotic systems to the industrial market.⁸

The Guardian Portfolio and the “Big Robots”

Under its new leadership, Sarcos organized its product development around a suite of robotic systems marketed under the “Guardian” brand. These were the “big robots” that defined the company’s public image. The portfolio was designed to augment human workers, allowing them to perform tasks that were physically impossible, dangerous, or inefficient.

The flagship product was the Guardian® XO®. Billed as the world’s first full-body, battery-powered industrial exoskeleton, the Guardian XO was a remarkable feat of engineering.¹¹ It amplified an operator’s strength by a factor of up to 20, enabling the wearer to lift objects weighing up to 200 pounds repeatedly without fatigue.¹¹ Over 120 sensors detected the operator’s movements, making the robot an intuitive extension of the user’s body.¹²

A key variant was the Guardian® XT™. This system was the upper body of the XO mounted on a mobile platform, such as a scissor lift.¹³ The Guardian XT was a teleoperated robotic avatar. It allowed an operator on the ground to perform complex tasks in hazardous environments, particularly at height, keeping the worker out of harm’s way.¹³

The Guardian portfolio was rounded out by other specialized systems, including the Guardian S inspection robot and the Guardian GT heavy-duty manipulator system.¹⁴

Validation of the “Ship Cleaning Robot”

The recollection of a robot designed for cleaning ships is accurate. It points to a key application for Sarcos’s underwater robotics technology.

Sarcos developed the Guardian® Sea Class, a dexterous, dual-armed underwater robotic system.¹⁵ This robot was designed to integrate with existing remotely operated vehicles (ROVs), dramatically expanding their capabilities.¹⁵ The Sea Class system provided human-like manipulation in complex underwater settings.¹⁵

Company specifications explicitly list its intended applications, which include “Ship maintenance” and “Surface cleaning (biofouling removal)”.¹ Biofouling—the accumulation of marine organisms on a ship’s hull—increases fuel consumption and emissions.¹⁶ A robotic solution like the Guardian Sea Class was designed to perform this cleaning work more efficiently and safely.¹

This technology’s viability was not just theoretical. In September 2022, Sarcos participated in the U.S. Navy’s Repair Technology Exercise (REPTX).¹ During these trials, the Sapien Sea Class (a later designation) performed tasks including inspection of a ship’s hull and propeller shaft.¹ This event served as a critical validation of the technology’s utility. Other companies, such as SeaRobotics and Jotun, specialize more narrowly in the hull-cleaning market.¹⁷

The Path to the Public Market and the SPAC Boom

Sarcos pursued a path to the public markets to fund its capital-intensive hardware. The company chose to go public by merging with Rotor Acquisition Corp., a special-purpose acquisition company (SPAC), in 2021.⁸ This transaction occurred at the height of the SPAC boom, a period of intense investor enthusiasm for high-growth technology companies.¹⁸

Upon completing the merger, the company was renamed Sarcos Technology and Robotics Corporation and began trading on Nasdaq under the ticker STRC.⁸ The stock’s performance was extremely volatile, a common characteristic of de-SPAC’d companies from that era. The stock reached an all-time high of $9.98 in December 2021 before declining to a low of $0.30 in July 2023.¹⁹ This trajectory reflects the collision of initial hype with the harsh realities of its pre-commercial status and high cash burn.

Note on Ticker Confusion: The ticker symbol STRC is often incorrectly associated with a security from MicroStrategy Incorporated.²⁰ This is an entirely separate company. This report exclusively uses financial data verified as belonging to Sarcos.

The history of Sarcos is one of remarkable engineering ambition. However, its focus on complex, capital-intensive “hard tech” proved to be a difficult fit for the demands of public markets, setting the stage for the dramatic transformation that was to come.

The Great Pivot: Deconstructing the Shift to a Pure-Play AI Company

By late 2023, it became clear that Sarcos’s path as a hardware-centric robotics company was unsustainable. The immense capital required to manufacture and deploy its physical robots presented a formidable challenge. In a decisive move, the company’s leadership initiated a complete strategic overhaul. They abandoned the hardware legacy to reinvent the company as a pure-play artificial intelligence software firm. This was a corporate rebirth, a high-stakes wager that the true value of Sarcos was not in its robotic “brawn,” but in its digital “brain.”

The Rationale for Transformation

A confluence of financial realities and strategic reassessments drove the decision to pivot. The business model for developing and selling complex robotic systems involved long sales cycles, high production costs, and significant overhead.

The financial strain of this model became increasingly apparent. In November 2023, the company laid off approximately 150 employees and closed its Pittsburgh office.²¹ This action signaled a need to drastically reduce cash burn.

The official narrative framed the move as a strategic choice to focus on the company’s most valuable asset: its proprietary AI and machine learning software, in development since 2020.² CEO Ben Wolff described the change as a pivot to “focus our business on our novel AI software platform”.² The rebranding signaled a deliberate move from capital-intensive manufacturing toward a high-margin, scalable software business model.²

From STRC to PDYN: A Corporate Rebirth and the Sarcos Defense Strategy

The company executed the strategic pivot swiftly in the first half of 2024. On March 18, 2024, the company officially announced its name change from Sarcos Technology and Robotics Corporation to **Palladyne AI Corp.**² Subsequently, on April 8, 2024, the company’s stock ticker on Nasdaq changed from STRC to PDYN.²²

This rebranding accompanied a complete operational restructuring. The company ceased all hardware operations, which directly impacted its revenue streams.⁶ Financial reports following the pivot showed a 100% year-over-year decline in product revenue.⁶

Crucially, the company did not completely abandon its historical identity. It made the strategic decision to retain the “Sarcos” name for its defense-focused business unit, now branded as Sarcos Defense.²

The strategy for Sarcos Defense is to leverage this trusted brand to market and sell the new AI software platforms to the U.S. Department of Defense and allied government agencies. Its goal is to transform commercial products into specialized, mission-ready solutions. Near-term revenue is expected from government development contracts, such as a $13.8 million U.S. Air Force contract.²³ The long-term plan is to generate recurring revenue by licensing the AI software for deployment on a wide range of military robotic systems.²³

Core Technology Deep Dive: The Palladyne AI/ML Platform

At the heart of the new company is the Palladyne AI/ML software platform. This foundational technology is designed to provide robots with a form of generalizable intelligence. The company’s vision is to empower robots to “observe, learn, reason, and act” in a manner more akin to human intelligence.²⁴

A key differentiator is that the software operates **”on the edge.”**²⁵ This means AI processing happens locally on the robotic system itself, rather than relying on a remote cloud server. This feature is critical for many target applications, reducing latency in factories and enabling autonomous operation where network connectivity is unreliable.²⁶

The company claims its neuro-symbolic AI approach is highly efficient.²⁷ According to its 2024 Form 10-K, a robot with Palladyne IQ can typically learn a new task from just one to five human demonstrations.⁴ This rapid, low-data learning process contrasts sharply with traditional machine learning models that require massive datasets.

Perhaps the most crucial aspect of the technology is that it is **”hardware agnostic.”**⁵ The software is intended to be a universal “brain” that can integrate with a wide variety of third-party robotic hardware.⁴ This platform-independent strategy dramatically expands the company’s total addressable market and provides a key competitive advantage.²⁸ This is the central gamble of the pivot: that the software is so valuable and adaptable that the entire robotics industry will want to license it.

This section has detailed the company’s dramatic shift from a hardware manufacturer to an AI software developer. The pivot was a strategic necessity driven by financial pressures, culminating in a complete corporate rebranding while retaining the valuable Sarcos name for its defense unit. The core of the new company is its adaptable, edge-based AI platform, which represents the entirety of its future business prospects.

Financial Analysis and Evolving Revenue Model

The strategic pivot has caused a profound and deliberate disruption to Palladyne AI’s financial profile. An analysis of the company’s financial statements reveals a company in deep transition. Historical performance is no longer a predictor of future results. Current metrics reflect the process of winding down an old business model while investing heavily to build a new one.

Analysis of Historical and Current Financial Performance

The pivot’s most immediate impact is visible in the company’s top-line revenue. For the second quarter of 2025, Palladyne AI reported revenues of just $1.02 million, a steep 62.6% decline from the prior year.⁶ This collapse is a direct consequence of ceasing all hardware sales.⁶ The remaining revenue is primarily from legacy product development contracts.

On an operational basis, the company remains deeply unprofitable. The net loss for Q2 2025 widened to $7.5 million from $5.3 million in the prior-year period.⁶ This was exacerbated by a 33% surge in research and development (R&D) spending.⁶

While the company reported a net income of $15.3 million for the first half of 2025, this figure is highly misleading. It resulted from a $29.4 million non-cash, non-operating gain from changes in the fair value of warrant liabilities.⁶

Understanding Warrant Liabilities: Warrants, which give holders the right to buy stock at a set price, are often treated as liabilities. A drop in the company’s stock price can decrease the value of this liability, forcing the company to record a non-cash “gain” on its income statement. This accounting gain masks underlying operational losses and does not represent any cash inflow or improvement in business performance.⁷

Despite operational losses, the company’s balance sheet remains relatively strong. As of June 30, 2025, Palladyne AI held $62.7 million in cash and marketable securities with no debt.²⁹ This position is the result of aggressive financing activities, including raising $34.8 million through equity offerings and warrant exercises in the first half of 2025.³⁰

The most critical metric is the cash burn rate. Management reported an adjusted monthly cash burn of approximately $2.0 million.³¹ Based on this rate, the company projects a sufficient cash runway for at least two and a half years, providing time to navigate long sales cycles.³¹

The table below summarizes key financial metrics.³²

Metric	FY 2022	FY 2023	FY 2024	H1 2025
Total Revenue	$13.81M	$11.4M	$7.72M	$2.7M
Product Revenue	N/A¹	N/A¹	N/A¹	$0
Contract Revenue	N/A¹	N/A¹	N/A¹	$2.7M
Gross Margin	N/A	N/A	N/A	57.3%
Net Income/(Loss)	($103.8M)	($72.6M)	($63.5M)	$15.3M²
Operating Expenses	$104.5M	$81.5M	$68.9M	$36.4M
R&D Expenses	$53.3M	$36.3M	$27.9M	$14.8M
Cash & Equivalents	$86.7M	$36.9M	$40.1M	$62.7M
Total Debt	$0	$0	$0	$0

¹Note: Historical reports did not provide a consistent breakdown between product and contract revenue.

²Note: H1 2025 Net Income includes a non-operating gain of $29.4 million from changes in warrant liability values.⁶

Revenue Sources: Past, Present, and Future

The company’s revenue composition has completely transformed.

Past Revenue Model (Pre-2024): As Sarcos, revenue came from product development contracts (primarily government) and the sale or lease of its Guardian hardware.⁴
Present Revenue Model (Transition): Revenue is almost exclusively from the tail end of legacy government contracts. The backlog stood at a mere $1.7 million as of June 30, 2025.⁶
Future Revenue Model: The entire future is staked on a pure software licensing model.⁵
- Palladyne™ IQ: Will be offered through a term-based licensing model to create a predictable, recurring revenue stream.⁵
- Palladyne™ Pilot: Will be offered through a device-based licensing model, allowing revenue to scale with partner hardware deployments.⁵

Management expects to generate the first commercial software revenues in the second half of 2025.³¹ This places the company squarely in a pre-revenue stage for its core business.

In essence, Palladyne AI’s financials reflect a company that has intentionally dismantled its old business to build a new one. The current state of declining revenue and operational losses is an expected part of this transition, with the company’s strong cash position providing the necessary runway to pursue its new, software-focused future.

Strategic Outlook and Market Positioning

Having jettisoned its hardware past, Palladyne AI is charting a new course as a focused AI software provider. Its success now hinges on its ability to commercialize its technology, penetrate competitive markets, and leverage key partnerships. The company’s strategy aims to position its software as an essential “intelligence layer” for a new generation of autonomous machines.

Commercialization Strategy and Target Markets

Palladyne AI’s efforts center on its two flagship software products.

Palladyne™ IQ targets the vast industrial automation market, including manufacturing, automotive, and logistics.⁴ Its value proposition is a dramatic reduction in the time and complexity required to program robots.² By enabling robots to learn quickly from demonstration, Palladyne IQ promises to increase the return on investment for automation. The company has demonstrated this capability on a KUKA robot at an industry conference.³³

Palladyne™ Pilot targets the growing market for unmanned systems, particularly drones (UAVs).⁴ This software enables advanced autonomy, allowing a single operator to manage multiple drones for tasks like surveillance and target tracking.³³ The primary markets are defense, public safety, and infrastructure inspection.³¹ A key milestone was achieved when the software successfully demonstrated the ability to autonomously track a moving terrestrial target using a third-party drone.³⁴

A crucial element of the strategy is managing expectations. Management has been transparent about a long and complex sales cycle, estimating it will take 12 to 18 months, or even longer, to convert a potential customer into a paying licensee.³⁵

The Partner Ecosystem

Palladyne AI has adopted a partner-centric go-to-market strategy. The company is focusing on strategic alliances that provide a channel to market and technical validation.

The most significant partnership is with Red Cat Holdings, Inc. (NASDAQ: RCAT) and its subsidiary, Teal Drones.³⁶ This collaboration embeds Palladyne™ Pilot AI software into Teal’s drones. Teal’s systems are “Blue UAS” certified, meaning they are vetted by the U.S. Department of Defense and approved for government procurement.³⁷ This partnership gives Palladyne a credible and direct channel into the lucrative U.S. defense market.³⁶

Another key collaboration is with Mobilicom Limited (NASDAQ: MOB), a provider of cybersecurity solutions.³⁸ This partnership bundles Palladyne’s AI software with Mobilicom’s cybersecurity platform. The goal is to offer a unified solution that delivers both advanced autonomy and robust protection against cyber threats, an attractive offering for defense customers.³⁸

Management’s Vision and Macroeconomic Catalysts

Palladyne AI’s leadership has positioned the company as a key enabler of major economic and geopolitical shifts. The strategy is designed to ride three powerful secular tailwinds:³¹

Manufacturing Reshoring: As U.S. manufacturers bring production back onshore, they will need to invest heavily in automation to remain competitive. Palladyne’s AI software is positioned as a critical tool for this new era of domestic manufacturing.³¹
Increased Defense Spending: The FY2025 National Defense Authorization Act (NDAA) increased appropriations for AI and autonomous systems.³¹ The DoD’s push for greater autonomy aligns directly with the capabilities of the Palladyne Pilot software.
Public Safety Modernization: The company has identified the adoption of autonomous drones by municipalities and private security firms as a near-term growth area.³¹

This reliance on major trends is both a strength and a weakness. It ties the company’s fate to powerful, long-term shifts. However, it also introduces a significant layer of political and policy risk. A shift in political priorities or an economic downturn could weaken these tailwinds, introducing uncertainty beyond the company’s control.⁵

This strategic outlook demonstrates a clear plan for market entry through targeted products and key partnerships. By aligning with major macroeconomic trends, Palladyne AI has positioned itself to capitalize on long-term growth drivers, though this strategy is not without its risks.

Governance, Key Stakeholders, and Technology Infrastructure

The success of Palladyne AI’s transformation rests heavily on its leadership, stakeholder alignment, and technology strategy. The company’s governance reveals a team deeply invested in the outcome, while its “hardware agnostic” approach clarifies its position on semiconductor partnerships.

Leadership and Influential Figures

Palladyne AI is guided by a team that combines deep institutional history with strategic new additions.

Benjamin G. Wolff, President and CEO, is the central figure in the company’s modern history. He co-founded the consortium that bought Sarcos back from Raytheon and has been the architect of its commercial strategy for nearly a decade.⁸, ³⁹
Dr. Fraser Smith, Co-Founder and Chief Innovation Officer, provides a crucial link to the company’s four-decade legacy of technical excellence.⁸, ³⁹
Retired Lieutenant General Stephen M. Twitty was appointed to the Board of Directors in September 2025.⁴⁰ With a distinguished 40-year career in the U.S. Army, Lt. Gen. Twitty brings an invaluable network and deep operational insight into the defense sector.⁴⁰ His appointment signals a “defense-first” commercialization strategy.

Ownership Structure

Insider ownership is notably high at approximately 36.5%.⁴¹ This suggests that the people running the company have significant “skin in the game” and are financially motivated to ensure its long-term success. CEO Ben Wolff’s personal stake is nearly 7%.⁴¹

Institutional ownership is relatively low at around 18-20%.⁴² The largest institutional holders, like BlackRock and Vanguard, hold their positions largely through passive index funds.⁴² An increase in active ownership by institutions would be a strong signal of growing market confidence.

The Semiconductor Question (NVIDIA, Intel, AMD)

There is no evidence of any direct partnership, technological collaboration, or specific integration between Palladyne AI and semiconductor giants like NVIDIA, Intel, or AMD. These chipmakers are mentioned in the available material only in broad, contextual ways, such as general market trends.⁴³

This absence is not an oversight; it is a core element of Palladyne AI’s technology strategy. The company repeatedly describes its AI/ML software platform as being designed to run on a wide variety of computing platforms.⁵ By avoiding dependence on a single chip architecture, Palladyne AI maximizes its total addressable market. It can sell its “brain” to any robotics company, regardless of their hardware components.

Ultimately, the company’s governance is characterized by a deeply invested leadership team augmented with high-level defense expertise. This, combined with a technology infrastructure designed for maximum market compatibility, provides a solid foundation for tackling the commercialization challenges ahead.

Concluding Analysis: Risk and Opportunity Profile

The saga of Palladyne AI is a compelling narrative of corporate reinvention. The company has made a bold break from its 40-year history as a hardware engineering powerhouse to emerge as a focused, pre-revenue AI software startup. This transformation presents a dichotomous profile, characterized by immense opportunities counterbalanced by significant risks.

Opportunities

Large and Growing Addressable Market: Palladyne AI is targeting two of the most dynamic sectors for AI adoption: industrial automation and defense.
Highly Scalable Business Model: A pure software licensing model offers the potential for very high gross margins and recurring revenue streams without proportional increases in production costs.
Strong Secular Tailwinds: The company’s strategy is directly aligned with major government-supported trends, including manufacturing reshoring and increased defense spending on autonomy.
Potentially Differentiated Technology: The company’s focus on edge-based, neuro-symbolic AI that requires minimal training data could be a significant competitive advantage in real-world industrial and military applications.

Risks

Execution and Commercialization Risk: This is the single greatest risk. Palladyne AI has yet to prove that its software can be packaged, sold, and supported at scale. The entire investment thesis rests on its ability to convert potential customers into paying licensees.
Intense Competition: The market for AI and robotics software is fiercely competitive. Palladyne AI will compete against the in-house software of large robotics manufacturers like ABB, FANUC, and KUKA, as well as other specialized AI startups like Anduril and Shield AI.⁴⁴
Lengthy and Uncertain Sales Cycle: Management has guided for a 12-18 month sales cycle. This long lead time means revenue generation will be slow, lumpy, and difficult to forecast.
Financial Profile and Capital Dependency: The company is a pre-revenue entity for its core products. It is currently burning approximately $2 million per month and is dependent on capital markets to fund its operations.
Partner Dependency: The strategy of relying on hardware partners like Red Cat also introduces risk. Palladyne’s success in the drone market is now intrinsically linked to Teal Drones’ ability to win contracts and sell units.

Final Synthesis

Palladyne AI Corp. is a unique investment case: a 40-year-old startup. It possesses the deep technical pedigree of an established contractor, yet it has the financial profile and commercial challenges of an early-stage software company.

The pivot to software was a tacit acknowledgment that building futuristic robots is incredibly difficult to scale profitably. The company is now betting everything on the proposition that its “brain”—the AI software—is more valuable than its former “body.”

Success will require flawless execution. The management team must navigate long sales cycles to convert promising demonstrations into tangible, recurring revenue. The company’s substantial cash runway provides the time necessary to attempt this, but the clock is ticking. If successful, Palladyne AI could become the “Intel Inside” of the robotics world, providing the core intelligence that powers a diverse ecosystem of machines and fundamentally reshaping the landscape of industrial and defense automation.

Glossary of Key Terms

Blue UAS Certified: A designation from the U.S. Department of Defense (DoD) for unmanned aerial systems (drones) that have been vetted and approved for procurement by government agencies, ensuring they meet specific security and performance standards.³⁷
Edge Computing: A distributed computing model where computation and data processing are performed on the local device (the “edge”) itself, rather than being sent to a centralized cloud server.⁴⁵
Hardware Agnostic: Refers to software that is designed to be compatible with and operate on a wide variety of hardware platforms, regardless of the manufacturer or model.²⁸
Neuro-symbolic AI: A hybrid form of artificial intelligence that integrates neural networks (which excel at learning patterns from data) with symbolic AI (which uses logic and rules for reasoning).⁴⁶
SPAC Boom: Refers to the dramatic increase in the popularity and volume of Special Purpose Acquisition Companies (SPACs), particularly during 2020 and 2021. A SPAC is a “blank check” shell company that goes public with the sole purpose of raising capital to acquire an existing private company and take it public.¹⁸

Works Cited

Sarcos Robotics. “Guardian Sea Class Technical Specifications.” VideoRay.(https://videoray.com/wp-content/uploads/2023/07/Sarcos-SeaClass-Final-forweb-1.pdf) and RoboticsTomorrow. “Sarcos Successfully Executes Field Trials Demonstrating Suite of Robotic Technologies for Maintenance, Inspection, and Repair in Shipyard Operations.” October 2022. https://www.roboticstomorrow.com/story/2022/10/sarcos-successfully-executes-field-trials-demonstrating-suite-of-robotic-technologies-for-maintenance-inspection-and-repair-in-shipyard-operations/19674/
Nasdaq. “Sarcos Robotics is Now Palladyne AI.” March 18, 2024. https://www.nasdaq.com/press-release/sarcos-robotics-is-now-palladyne-ai-2024-03-18
Palladyne AI Corp. “Palladyne AI Ticker Symbol now PDYN.” Business Wire. April 8, 2024. https://investor.palladyneai.com/news-releases/news-release-details/palladyne-ai-ticker-symbol-now-pdyn/
Palladyne AI Corp. “Annual Report for Fiscal Year Ending December 31, 2024 (Form 10-K).” Public.(https://www.publicnow.com/view/6684A826940A0F4FF0DBE50E87FDEAFB7DF30EAF)
Palladyne AI Corp. “Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q).” Public. https://www.publicnow.com/view/CC1321409207409008A3F8F53E2FF1A13642FE00?1754516870
Zacks Investment Research. “PDYN Incurs Q2 Loss Amid Revenue Drop, Contract Slowdown.” TradingView News. August 12, 2025. https://www.tradingview.com/news/zacks:e2b54eb5f094b:0-pdyn-incurs-q2-loss-amid-revenue-drop-contract-slowdown/
PKF O’Connor Davies. “SPAC Warrant Valuation: Insights and Considerations.” July 2021.(https://www.pkfod.com/wp-content/uploads/2021/07/SPAC-Warrant-Valuation-Insights-and-Considerations.pdf) and Watchdog Research. “Concern is Warranted: Warrants as Liabilities vs. Equities.” https://blog.watchdogresearch.com/posts/concern-is-warranted-warrants-as-liabilities-vs-equities/
Wikipedia. “Palladyne AI.” https://en.wikipedia.org/wiki/Palladyne_AI
InKnowVation. “Sarcos Research Corporation.” December 14, 2022. https://www.inknowvation.com/sbir/companies/sarcos-research-corporation
Business ABC. “Sarcos Technology and Robotics.” https://businessabc.net/wiki/sarcos
Material Handling 24/7. “Sarcos Robotics: Guardian® XO® Full-Body Powered Exoskeleton.” https://www.materialhandling247.com/product/guardian_xo_full_body_powered_exoskeleton
Exoskeleton Report. “Guardian XO Alpha: Up Close and Personal with the Sarcos Robotics Full-Body Powered Exoskeleton.” December 2019. https://exoskeletonreport.com/2019/12/guardian-xo-alpha-up-close-and-personal-with-the-sarcos-robotics-full-body-powered-exoskeleton/
Robotics 24/7. “Sarcos Completes Beta Development of Guardian XT Teleoperated Robotic Avatar.” January 25, 2022. https://www.robotics247.com/article/sarcos_completes_beta_development_of_guardian_xt_teleoperated_robotic_avatar
Business ABC. “Sarcos.”(https://businessabc.net/wiki/sarcos#:~:text=The%20company%20serves%20healthcare%2C%20life,former%20subsidiary%20of%20Raytheon%20Company.)
Ocean Robotics Planet. “VIDEO: Guardian Sea Class Subsea Robotic System: Dexterous Underwater Manipulation.” October 5, 2023. https://oceanroboticsplanet.com/video-guardian-sea-class-subsea-robotic-system-dexterous-underwater-manipulation-10-05-2023
World Economic Forum. “This underwater robot cleans ships to cut emissions and protect marine ecosystems.” January 14, 2021. https://www.weforum.org/stories/2021/01/biofouling-ship-cleaning-robot/
SeaRobotics. “HULL & TANK CLEANING.” https://searobotics.com/products/hull-and-tank-cleaning/ and maxon group. “Application Note: Robotics.” October 20, 2012. https://www.maxongroup.com/medias/sys_master/8808089911326.pdf
Wikipedia. “Special-purpose acquisition company.” October 3, 2025.(https://en.wikipedia.org/wiki/Special-purpose_acquisition_company) and Investopedia. “What Is a Special Purpose Acquisition Company (SPAC)?” https://www.investopedia.com/terms/s/spac.asp
Companies Market Cap. “Sarcos Technology and Robotics Stock Price History.” https://companiesmarketcap.com/sarcos-technology-and-robotics/stock-price-history/
ADVFN. “Strategy Inc Stock Price (STRC).”(https://www.advfn.com/stock-market/NASDAQ/STRC/stock-price) and TradingView. “Strategy Inc – Variable Rate Series A Perpetual Stretch Preferred Stock.”(https://www.tradingview.com/symbols/NASDAQ-STRC/)
LeadIQ. “Sarcos Robotics.” https://leadiq.com/c/sarcos-robotics/5a1d858a24000024005ffde5
Palladyne AI Corp. “Form 8-K for Palladyne AI Corp filed 04/08/2024.”(https://investor.palladyneai.com/static-files/6a7db231-0b84-4641-af13-9deb4e4480a3#:~:text=On%20March%2018%2C%202024%2C%20Palladyne,LLC%20(%E2%80%9CNasdaq%E2%80%9D)
Nasdaq. “Sarcos Awarded $13.8 Million USD Contract by U.S. Air Force for Advancement of Its Artificial Intelligence and Machine Learning Software.” September 28, 2023. https://www.nasdaq.com/press-release/sarcos-awarded-$13.8-million-usd-contract-by-u.s.-air-force-for-advancement-of-its and Robotics 24/7. “Sarcos Gets $13.8M Air Force Contract to Advance AI and Machine Learning for Guardian Robots.” September 29, 2023. https://www.robotics247.com/article/sarcos_gets_13.8m_air_force_contract_advance_ai_machine_learning_guardian_robots
Palladyne AI Corp. “Corporate Profile.” https://investor.palladyneai.com/
Palladyne AI Corp. “About Palladyne AI.” https://www.palladyneai.com/about-palladyne-ai/
Palladyne AI Corp. “Palladyne AI Corp Provides 2025 Mid-Year Business and Financial Update.” Business Wire. August 6, 2025. https://www.palladyneai.com/press-releases/palladyne-ai-corp-provides-2025-mid-year-business-and-financial-update/
Mobilicom. “Mobilicom and Palladyne AI Partner to Deliver Cybersecure Autonomy for Drones, Industrial Robots and Other Unmanned Systems.” June 26, 2025. https://www.palladyneai.com/press-releases/mobilicom-and-palladyne-ai-partner/
CapSen Robotics. “The Importance of Hardware-Agnostic Software in Robotics.” https://www.capsenrobotics.com/blog/post/the-importance-of-hardware-agnostic-software-in-robotics and Open-E. “How Hardware-agnosticism Enhances Data Storage Solutions.”(https://www.open-e.com/blog/how-hardware-agnosticism-enhances-data-storage-solutions/#:~:text=Flexibility%20and%20Compatibility%3A%20Hardware%2Dagnostic,consistent%20compatibility%20across%20different%20systems.)
Palladyne AI Corp. “Palladyne AI Corp Provides 2025 Mid-Year Business and Financial Update.” August 6, 2025. https://investor.palladyneai.com/news-releases/news-release-details/palladyne-ai-corp-provides-2025-mid-year-business-and-financial/
Palladyne AI Corp. “Palladyne AI Corp Provides 2025 Mid-Year Business and Financial Update.” Business Wire. August 6, 2025.(https://www.businesswire.com/news/home/20250806937271/en/Palladyne-AI-Corp-Provides-2025-Mid-Year-Business-and-Financial-Update)
Palladyne AI Corp. “Palladyne AI Corp Provides 2025 Mid-Year Business and Financial Update.” August 6, 2025. https://www.palladyneai.com/press-releases/palladyne-ai-corp-provides-2025-mid-year-business-and-financial-update/
Data synthesized from various financial reports and press releases including Finviz, FT.com, and Simply Wall St.(https://finviz.com/quote.ashx?t=PDYN&ty=fc),(https://markets.ft.com/data/equities/tearsheet/profile?s=PDYN:NMQ), https://simplywall.st/stocks/us/capital-goods/nasdaq-pdyn/palladyne-ai/past
Stocktitan. “Palladyne AI Selected to Demonstrate Palladyne™ IQ Embodied Intelligence Software at KUKA Connexions Conference.” July 24, 2025.(https://www.stocktitan.net/news/PDYN/)
Investopedia. “Palladyne AI Stock Rises Further as Drone Tracks Moving Target With Its Software.” https://www.investopedia.com/palladyne-ai-stock-rises-further-as-drone-tracks-moving-target-with-its-software-8767404
Palladyne AI Corp. “Sarcos Awarded $13.8 Million USD Contract by U.S. Air Force for Advancement of Its Artificial Intelligence and Machine Learning Software.” September 28, 2023. https://investor.palladyneai.com/news-releases/news-release-details/sarcos-awarded-138-million-usd-contract-us-air-force-advancement/
Palladyne AI Corp. “Palladyne AI and Red Cat Expand Partnership for Teal Drones.” Business Wire. November 20, 2024. https://investor.palladyneai.com/news-releases/news-release-details/palladyne-ai-and-red-cat-expand-partnership-teal-drones/ and Commercial UAV News. “Red Cat and Palladyne AI Partner to Embed Artificial Intelligence into Teal Drones to Enable Autonomous Operation.” October 9, 2024. https://www.commercialuavnews.com/red-cat-and-palladyne-ai-partner-to-embed-artificial-intelligence-into-teal-drones-to-enable-autonomous-operation
DIU. “Blue UAS Cleared Drone List.”(https://www.diu.mil/blue-uas-cleared-list#:~:text=The%20Blue%20UAS%20Cleared%20List,mission%20needs%20of%20DoD%20users.) and Mobilicom. “What is Blue UAS? The Ultimate Guide to Secure Drone Compliance.” https://mobilicom.com/insight/what-is-blue-uas-the-ultimate-guide-to-secure-drone-compliance/
Palladyne AI Corp. “Mobilicom and Palladyne AI Partner to Deliver Cybersecure Autonomy for Drones, Industrial Robots and Other Unmanned Systems.” June 26, 2025. https://www.palladyneai.com/press-releases/mobilicom-and-palladyne-ai-partner/
Simply Wall St. “Palladyne AI Corp. (PDYN) Leadership & Management Team Analysis.” https://simplywall.st/stocks/us/capital-goods/nasdaq-pdyn/palladyne-ai/management and Morningstar. “Palladyne AI Corp Class A Executives.” https://www.morningstar.com/stocks/xnas/pdyn/executive
Palladyne AI Corp. “Palladyne AI Corp. Appoints Retired Lieutenant General Stephen M. Twitty to Board of Directors.” September 23, 2025. https://www.palladyneai.com/press-releases/palladyne-ai-corp-appoints-retired-lieutenant-general-stephen-m-twitty-to-board-of-directors/ and Stock Insights. “PDYN PALLADYNE AI CORP Management Changes 8-K Filing.”(https://www.stockinsights.ai/us/PDYN/8-K/management-changes-20250923-a24)
Finviz. “PDYN – Palladyne AI Corp Stock Price and Quote.”(https://finviz.com/quote.ashx?t=PDYN)
Fintel. “PDYN – Palladyne AI Corp. Stock – Stock Price, Institutional Ownership, Shareholders.” https://fintel.io/so/us/pdyn
Reddit. “NVIDIA and Intel Just Partnered. Is This the End of the Road for AMD or a New Era of Competition?” https://www.reddit.com/r/investing/comments/1nnf3pl/nvidia_and_intel_just_partnered_is_this_the_end/ and Moomoo. “Palladyne AI (PDYN).”(https://www.moomoo.com/stock/PDYN-US)
Zacks Investment Research. “Zacks Initiates Coverage of Palladyne AI With Neutral Recommendation.” Nasdaq. May 21, 2025. https://www.nasdaq.com/articles/zacks-initiates-coverage-palladyne-ai-neutral-recommendationand eWeek. “7 Best Robotics Companies of 2025.” https://www.eweek.com/artificial-intelligence/robotics-companies/
Wikipedia. “Edge computing.” https://en.wikipedia.org/wiki/Edge_computing
Wikipedia. “Neuro-symbolic AI.” https://en.wikipedia.org/wiki/Neuro-symbolic_AI and AllegroGraph. “What is Neuro-Symbolic AI?” https://allegrograph.com/what-is-neuro-symbolic-ai/