PDYN — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-06

• our ability to successfully provide vertically integrated aerospace engineering design services, enhanced avionics compute hardware and machining and fabrication services;

• We are positioning our defense business as a mid-tier U.S. technology prime defense contractor aiming to combine innovative autonomy, practical engineering and American production to bring intelligent systems into active service faster, safer and more cost-effectively than legacy approaches. We seek…

• Product revenue was $2.7 million for the three months ended June 30, 2026. Our product revenue during the three months ended June 30, 2026, was derived mainly from the companies that we acquired in November 2025. It includes revenue from the sale of precision machined parts and components from our m…

• Cost of revenue increased by $3.6 million or 765%, from $0.5 million for the three months ended June 30, 2025 to $4.1 million for the three months ended June 30, 2026. Cost of revenue consists of labor, materials and third-party costs associated with our products and services. Cost of revenue increa…

• General and administrative expense increased by $4.0 million, or 95%, from $4.2 million for the three months ended June 30, 2025, to $8.1 million for the three months ended June 30, 2026. General and administrative expense increased primarily due to increased labor and labor related expenses associa…

Text removed vs the prior filing · source: 10-Q · 2026-05-05

• We are positioning our defense business as a mid-tier U.S. technology prime defense contractor aiming to combine innovative autonomy, practical engineering and American production to bring intelligent systems into active service faster, safer and more cost-effectively than legacy approaches. We seek…

• mitigation through rapidly delivering scalable, low-cost, intelligent and collaborative attritable weapons, including by developing proprietary, UAVs incorporating our avionics and AI technologies. We support these efforts and those of other defense contractors and commercial customers through our v…

• Product revenue was $1.7 million for the three months ended March 31, 2026. All of our product revenue during the three months ended March 31, 2026, was from the sale of precision machined parts and components by our Palladyne Manufacturing business, comprised of Warnke Precision Machining and MKR F…

• Cost of revenue increased by $2.1 million, or 601%, from $0.4 million for the three months ended March 31, 2025, to $2.5 million for the three months ended March 31, 2026. Cost of revenue increased primarily due to manufacturing costs from revenue generated by our fabrication and machining businesse…

• General and administrative expense increased by $2.7 million, or 64%, from $4.2 million for the three months ended March 31, 2025, to $6.9 million for the three months ended March 31, 2026. General and administrative expense increased primarily due to legal, and other administrative expenses related…

Text added vs the prior filing · source: 10-Q · 2026-08-06

• Our recent expansion into integrated defense products, autonomous systems and advanced manufacturing exposes us to operational, execution and commercialization risks that differ from those associated with our software business.

• Since our November 2025 acquisitions of GuideTech, Warnke Precision Machining and MKR Fabricators, we have significantly expanded our business beyond our AI software offerings through the development and commercialization of autonomous aerial systems, advanced avionics products, engineering services…

• Our ability to successfully pursue new businesses while continuing to develop and commercialize our AI software offerings is subject to significant operational risk. We may experience delays in production, cost overruns, manufacturing inefficiencies, supplier shortages, quality issues, workforce con…

• potential customers are unwilling or hesitant to adopt new technologies and products such as ours and/or if potential customers are not willing to pay for our products and services at the rates that we currently expect, our ability to generate material revenues will be materially impaired.

• Based on interaction with dozens of potential customers, we believe that the sales cycle for Palladyne IQ is likely to be between 12 and 18 months, or even longer, while the sales cycles for Palladyne Pilot, SwarmOS, BRAIN and IntelliSwarm are unknown. We have limited actual knowledge of or experien…

Text removed vs the prior filing · source: 10-Q · 2026-05-05

• Based on interaction with dozens of potential customers, we believe that the sales cycle for Palladyne IQ is likely to be between 12 and 18 months, or even longer, while the sales cycles for Palladyne Pilot, SwarmOS and IntelliSwarm are unknown. We have limited actual knowledge of or experience with…

• In addition, to build and maintain our business, we must maintain confidence among customers and potential customers in our technologies, products and services, long-term financial viability and prospects. Maintaining such confidence may be particularly complicated by certain factors including those…

• our prospects, we may not be able to raise any needed funding which would materially and adversely affect our financial condition and prospects and ability to continue operations.

• We believe a portion of our business prospects and future growth will come from government contracts, many of which are subject to competitive procurement processes, lengthy evaluation periods and uncertainty as to timing and outcome. Even after we are awarded with a government contract, contracts w…

• condition and results of operations. For example, in the past due to government shutdowns, furloughs or reductions, we have experienced delays in our interactions with certain government agencies and these have affected our collection efforts and our ability to consummate new government contracts an…