Stephen Sonne - 17 Apr 2024 Form 4 Insider Report for Palladyne AI Corp. (PDYN)

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	PDYN	Stock Option (right to buy)	Disposed to Issuer		-19,757	-100%		0	17 Apr 2024	Common Stock	19,757	$40.20	Direct	F1, F2
transaction	PDYN	Stock Option (right to buy)	Award		+19,757			19,757	17 Apr 2024	Common Stock	19,757	$1.59	Direct	F2, F3

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Id	Content
F1	25% of the shares subject to the option vested on February 7, 2023, and thereafter 1/12 of the shares subject to the option shall vest on each quarterly vesting date, subject to the Reporting Person's continued service to the Issuer through such date. Due to a clerical error, the expiration date of the option was erroneously reported as April 1, 2032 in the Reporting Person's Form 3 filed on November 8, 2023.
F2	Outstanding options were amended to reduce the exercise price and revise the vesting terms. This amendment was approved by the compensation committee of the Issuer's board of directors and is intended to be exempt pursuant to Rule 16b-3 of the Exchange Act.
F3	The option is fully unvested as of the amendment. 25% of the shares subject to the option will vest on March 29, 2025, and then 1/12 of the shares subject to the option vest on each quarterly vesting date thereafter, subject to the Reporting Person's continued service to the Issuer through such date.