AI Earnings Predictions for Palladyne AI Corp (PDYNW)

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Exhibit 99.1

Palladyne AI Reports Second Quarter 2026 Results

Revenue increased 470% year-over-year and 63% sequentially to $5.8 million, driven by both acquisitions and organic growth

Backlog of $24.6 million as of June 30, 2026, net of revenue recognized, reflects approximately $13.0 million in new contract awards during the quarter

Reiterates full-year 2026 revenue guidance of $24 million to $27 million (357% - 415% growth); expects sequential revenue growth in Q3

SALT LAKE CITY – August 6, 2026 – Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) (“Palladyne AI” or “the Company”), a U.S.-based aerospace, defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services, today announced financial results for the second quarter ended June 30, 2026.

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

“The headline this quarter is the $13 million of new contract awards, and it is why we are comfortable reiterating guidance for the year. Backlog stands at nearly $25 million even after we recognized a record quarter of revenue, and it remains the number I watch most closely because it is the foundation the next several quarters are built on.

“From a product standpoint, the milestone was executing Ivy Mass and hitting every objective we set for it. Ivy Mass was the first in a series of 4th Infantry Division exercises we were competitively selected for under the Army's Disruptive Applications program. Over the course of three weeks, we integrated SwarmOS with the Army's Next-Generation Command and Control prototype ecosystem. SwarmOS enabled us to operate drones from four different manufacturers, including our own Gremlin-X mini bomber, under a single operator. We also just completed another major DoW exercise in late July, and we have been invited to five more over the next 8 months, starting with Northern Strike, which is underway now.

“We also signed our partnership with Israel Aerospace Industries (IAI) during the quarter, which gives us exclusive U.S. rights to Americanize, manufacture, integrate and market IAI’s HARPY, HAROP and Mini HARPY loitering munitions to the Department of War. These are long-range, battle-proven systems for suppressing and destroying enemy air defenses, and they fill a capability gap that the U.S. arsenal has today. I believe systems like these could not only reduce the kind of aircraft losses we have seen in recent operations in the Middle East, but also do it far more cost-effectively than current methods for eliminating enemy air defenses. Since signing, we have been working alongside IAI

Exhibit 99.1

on the strategy and planning for bringing the Department of War on board with these systems, including Americanization requirements and manufacturing readiness.

“Financially, every part of the business grew this quarter. Our operating cash burn1 ran higher than last quarter. That increase reflects two things: we are still early in scaling revenue against our cost base, and we made deliberate investments ahead of that ramp. We made some one-time capital expenditures, added business development and program management headcount in our Aerospace and Defense division to pursue and support Department of War work, and brought on additional engineers to support existing contracts and advance programs, including Gremlin-X. Those are costs we are taking on against contracts we can already see, and we expect quarterly cash usage to come down as revenue and margins ramp through the second half.”

1The Company defines operating cash burn as cash used in operations plus capital expenditures (capex).

Second Quarter 2026 Strategic and Operational Highlights

• Signed an exclusive partnership with IAI covering U.S. rights to the HARPY, HAROP and Mini HARPY long-range loitering munitions, with no upfront payment and up to ten years of exclusivity;

• Competitively selected for two U.S. Army contracts under the Disruptive Applications Broad Agency Announcement to operationally validate SwarmOS and Gremlin-X with 4th Infantry Division warfighters;

• Secured $2.6 million in orders for BRAIN flight computers from a defense prime, including a $2.3 million contract supporting a low-cost kinetic counter-UAS interceptor;

• Commenced previously announced $4.2 million Air Force Research Laboratory HANGTIME contract, integrating satellites into a coordinated sensor network for the first time;

• Received a $2.9 million U.S. Air Force STRATFI option exercise for the Palladyne IQ embodied AI architecture, bringing total program value to over $10.6 million;

• Demonstrated SwarmOS and Gremlin-X at the Army's Ivy Mass exercise, subsequently participated in an additional Department of War exercise in July, and have been invited to five more through March 2027;

• Selected as one of 14 companies i

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Exhibit 99.1

Palladyne AI Announces Preliminary Second Quarter 2026 Revenue of Approximately $5.8 Million and Backlog of Approximately $24.0 Million

Preliminary second quarter revenue expected to be approximately $5.8 million, up approximately 480% year over year and 66% sequentially

Backlog grew to approximately $24.0 million from $17.3 million at the end of the first quarter

Cash, cash equivalents and marketable securities remained roughly flat from the first quarter at approximately $44.0 million

SALT LAKE CITY – July 8, 2026 – Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) (“Palladyne AI” or “the Company”), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services, today announced preliminary financial results for its second fiscal quarter ended June 30, 2026.

Select Preliminary 2Q26 Results

In $M

2Q FY26

2Q FY25

2Q FY26 vs. 2Q FY 25

1Q FY26

2Q FY26 Vs. 1QFY 26

Revenue

~$5.8

$1.0

~480%

$3.5

~66%

Backlog

~$24.0

$1.7

~1312%

$17.3

~39%

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

"The second quarter was another quarter where we delivered on our stated plan. Revenue grew substantially again, both year over year and sequentially vs Q1, and we continued to win new business across all of our operations.

“Our plan for this year has been straightforward from the start. We had spent years building the underlying autonomy technology. With the acquisitions we completed in November, we became a vertically integrated, autonomy-based defense technology company, with the engineering, manufacturing and program capability that laid the groundwork for what we announced on June 8.

"That announcement, our partnership with Israel Aerospace Industries, the largest Israeli defense company and pioneer of the loitering munition category more than 40 years ago, was a major step forward for us. This partnership gives us exclusive U.S. rights to a family of combat-proven systems, the HARPY, HAROP and Mini HARPY, that fill gaps in the U.S.

arsenal for which there is no direct domestic equivalent. Despite hundreds of millions of dollars invested by others in this space, no other company has replicated what this family of loitering munitions systems delivers, particularly when it comes to battle-tested capabilities to suppress and destroy enemy air defenses. This partnership, together with the battlefield exercises we participated in this past quarter with SwarmOS™ and Gremlin-X™ and the first large purchase of our BRAIN flight computer by a defense prime for use on a counter-UAS system, has given us even greater optimism about the long-term prospects for our aerospace and defense business."

Second Quarter 2026 Preliminary Financial Highlights

• Revenue of approximately $5.8 million, an increase of approximately 480% compared to $1.0 million in the second quarter of 2025;

o Sequential revenue growth of approximately 66% compared to $3.5 million in the first quarter of 2026;

• Backlog of approximately $24.0 million as of June 30, 2026, up from $17.3 million as of March 31, 2026;

o Gross new contracts added during the quarter of approximately $12.5 million;

• Cash, cash equivalents and marketable securities of approximately $44.0 million as of June 30, 2026, roughly flat compared to March 31, 2026.

Backlog and Contracted Demand

As of June 30, 2026, backlog was approximately $24.0 million, up from $17.3 million as of March 31, 2026, reflecting approximately $12.5 million in new customer programs and contract awards secured across the Company’s operations during the quarter, net of revenue recognized. Backlog represents the total value of committed customer contracts and purchase orders. Palladyne AI expects a majority of this backlog to be recognized as revenue over the next 12 to 18 months.

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About Palladyne AI

Palladyne AI is a U.S.-based technology company developing patented embodied artificial intelligence, collaborative autonomy solutions, advanced avionics, autonomous systems, advanced UAV engineering services, and precision-manufactured components for defense and industrial markets. Palladyne AI delivers secure, American-developed and operated platforms designed to meet the stringent requirements of U.S. government and public-sector customers, including data sovereignty, security, and compliance.

Palladyne AI’s embodied AI is designed to operate in complex, contested, and high-risk environments, enabling distributed tasking, human-on-the-loop decision-making, degraded-communications resilience, and multi-domain coordination. Its platform-agnostic autonomy stack combines real-time sensor fusion, adaptive AI models, and edge-native orchestration, without vendor lock-in, to support autonomous and collaborative systems across air, ground, maritime, and indu

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Exhibit 99.1

Palladyne AI Reports First Quarter 2026 Results

First full quarter as a vertically integrated defense and industrial AI company; revenue increased 107% year-over-year to $3.5 million

Backlog of approximately $17 million as of March 31, 2026, net of revenue recognized, reflects approximately $7 million in new contract awards during the quarter

Reiterates full-year 2026 revenue guidance of $24 million to $27 million (357% - 415% growth); expects sequential revenue growth each quarter with ramp accelerating in the second half of the year

SALT LAKE CITY – May 5, 2026 – Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) (“Palladyne AI” or “the Company”), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services, today announced financial results for the first quarter ended March 31, 2026.

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

“Q1 was our first full quarter as a vertically integrated defense and industrial AI company. Revenue increased 107% year-over-year to $3.5 million, and the quarter saw broad-based activity across defense programs, commercial deployment and intellectual property development. That activity is reflected in our backlog, which grew to approximately $17 million as of March 31, and we remain on track to achieve our 2026 revenue guidance of $24 million to $27 million.

“The Department of War is committing historic resources to autonomous systems, collaborative swarming, counter-UAS, long-range precision fires and missile defense, and Palladyne AI is actively pursuing opportunities across those programs. We are executing on multiple fronts simultaneously with contracted backlog, deployed product and published intellectual property that together reflect the progress we are making and the category we are defining.”

First Quarter 2026 Strategic and Operational Highlights

Defense, Space and Autonomy

• Demonstrated collaborative autonomous swarming among the Gremlin-X (formerly Project Banshee) platform utilizing IntelliSwarm and multiple Red Cat (NASDAQ: RCAT) platforms operating with SwarmOS;

Exhibit 99.1

• Progressed development of new BRAIN flight computer variants; received follow-on orders from an existing defense prime customer for the commercialized X2 variant for approximately $500,000;

• Expanded the Draganfly partnership, successfully testing SwarmOS across Draganfly’s defined mission-ready drone components and validated the system through completion of a successful flight simulation;

• Expanded into the space domain through the Air Force Research Lab (AFRL) HANGTIME award, deploying SwarmOS as the foundational technology to coordinate autonomous systems across satellite, aerial and ground domains, marking the first planned integration of Palladyne's collaborative autonomy platform with space-based assets;

• Secured a contract with Portal Space Systems, through GuideTech, to support development of next-generation maneuverable spacecraft platforms, providing navigation, guidance, spacecraft modeling, embedded software and avionics support across civil, defense and commercial applications;

• Secured a contract with a major U.S. defense prime contractor, through Palladyne Defense, to deliver a mission-critical propulsion subsystem for an existing U.S. missile system program, expected to contribute nearly $1 million in 2026 revenue.

Commercial and Industrial

• Hired Matt Muta as President of Commercial and Industrial to focus on capturing commercial opportunities;

• Initiated active deployment of Palladyne IQ 2.0 with the Company’s first commercial customer, with the initial robot systems integration underway;

• Continued advancing the IQ 2.0 pipeline and product roadmap to support expanded use cases and customer deployments.

Thought Leadership and Intellectual Property

• Published “Cloud AI Thinks. Edge Autonomy Acts.,” introducing the Decentralized Embodied Collaborative Autonomy (DECA) framework and establishing the biological and architectural case for edge-native AI as a distinct platform class;

• Published “From Remote Control to Collaborative Swarm Intelligence,” applying the SAE automotive autonomy framework to drone swarming and establishing

Exhibit 99.1

Oracle-Class Wolf Pack Swarming as the highest level of collaborative autonomous capability – where SwarmOS operates;

• Strengthened intellectual property portfolio through a new patent issuance supporting advanced swarming and decentralized autonomy architectures, and filed two new patent applications related to Palladyne AI’s AI software products and technologies.

First Quarter 2026 Financial Highlights (vs. first quarter 2025)

• Revenue increased 107% to $3.5 million compared to $1.7 million;

• Operating loss of ($11.9) million compared to ($6.9) million, r

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Exhibit 99.1

Palladyne AI Reports Fourth Quarter and Full Year 2025 Results and Reiterates 2026 Revenue Guidance of $24 to $27 Million

2026 revenue guidance implies 357% to 415% year-over-year growth, with backlog increasing more than 30% since year-end to nearly $18 million midway through the first quarter

2025 culminated in structural repositioning following November acquisitions

Launch of Palladyne Defense and commercialization of Palladyne IQ 2.0 position Company for execution in 2026

SALT LAKE CITY – March 5, 2026– Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) (“Palladyne AI”), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services today announced financial results for the fourth quarter and full year ended December 31, 2025.

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

“2025 was a year of operational validation that culminated in structural transformation. In November, we completed the acquisitions of GuideTech, Warnke Precision Machining and MKR Fabricators and launched Palladyne Defense. That repositioning expanded our capabilities beyond autonomy software to include advanced avionics, engineering services, proprietary airframe and missile development and certified U.S.-based manufacturing. We exited 2025 as a fundamentally different company, with expanded backlog, deeper defense engagement and an integrated autonomy-to-manufacturing stack aligned with evolving Department of War priorities.

“Over the past few months, we have moved decisively to execute across the defense and commercial parts of our business. We commercially released Palladyne IQ 2.0, integrating feedback from potential customers into its development, and recently signed our first customer for the product. We also introduced IntelliSwarm, integrating SwarmOS into the BRAIN X2 flight module, and demonstrated collaborative autonomy between our recently re-branded Gremlin-X™ (formerly Project Banshee) platform running IntelliSwarm and multiple Red Cat platforms operating with SwarmOS, validating distributed, multi-platform collaboration in real-world environments.

“We also established our presence in the space domain. Through our satellite-related development work with the Air Force Research Laboratory, we are extending SwarmOS capabilities to integrate communications with space-based systems. Separately, our engagement with Portal Space Systems advances propulsion design for next-generation space platforms and establishes a foundation for potential future collaboration surrounding collaborative autonomy.”

Exhibit 99.1

Recent Strategic and Operational Highlights

• Launched Palladyne Defense following the acquisitions of GuideTech, Warnke Precision Machining and MKR Fabricators, integrating autonomy software, advanced avionics engineering and design, components, proprietary UAVs and missile systems, and certified U.S.-based manufacturing;

• Commercially released Palladyne IQ 2.0 and signed an initial customer following customer-driven refinement throughout 2025;

• Hired Matt Muta as President of Commercial and Industrial to focus on capturing commercial opportunities;

• Branded Project Banshee next-generation autonomous UAV mini-bomber platform (currently under development) as Gremlin-X;

• Demonstrated collaborative autonomous swarming between the Gremlin-X platform utilizing IntelliSwarm, and multiple Red Cat platforms operating with SwarmOS;

• Expanded into the space domain through satellite-related development work with the Air Force Research Laboratory and propulsion design engagement with Portal Space Systems;

• Progressed development milestones across Gremlin-X and new BRAIN variants;

• Secured missile propulsion subsystem contract from a new defense prime customer; and

• Strengthened intellectual property portfolio through a new patent issuance supporting advanced swarming and decentralized autonomy architectures and filed four new patent applications related to Palladyne's AI software products and technologies.

Fourth Quarter 2025 Financial Highlights (vs. fourth quarter 2024)

• Revenue increased 118% to $1.7 million compared to $0.8 million;

• Operating loss of ($9.3) million compared to ($6.5) million;

• GAAP net loss and basic and diluted loss per share (EPS) of ($1.5) million, and ($0.04), compared to ($53.0) million, and ($1.75);

• *Non-GAAP net loss and Non-GAAP EPS of ($6.9) million, and ($0.16), compared to ($5.2) million, and ($0.17);

• Cash, cash equivalents and marketable securities totaled $47.0 million at December 31, 2025;

• Backlog as of December 31, 2025 was $13.5 million.

Full Year 2025 Financial Highlights (vs. full year 2024)

• Revenue decreased 33% to $5.2 million compared to $7.8 million;

• Operating loss of ($32.4) million compared to ($26

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Exhibit 99.1

Palladyne AI Corp. Signals Operating Inflection With Increase to Full Year 2026 Revenue Guidance to $24 - $27 Million

Represents 336% to 440% Year-Over-Year Increase Driven By Late 2025 Acquisitions

Contracted demand and recent acquisitions support transition into higher revenue tier

Backlog at the end of 2025 increased to more than $13 million from $10 million in mid-November

SALT LAKE CITY– January 13, 2025 – Palladyne AI Corp. (Nasdaq: PDYN and PDYNW) (“Palladyne”), a U.S.-based defense and industrial technology company delivering embedded AI powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services, today provided revenue guidance for the full year 2026, reflecting a significant step-change in operating scale following the integration of recent acquisitions and expanding contracted customer demand.

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

“Palladyne is entering 2026 at an operating inflection. Over the past year, we have moved beyond capability-building and are now executing as an integrated platform with active customers, expanding backlog and line of sight into higher revenue. The pace at which we integrated SwarmOS™ with GuideTech’s BRAIN X2 to form IntelliSwarm™ in roughly three weeks is one example of the execution discipline now in place. More broadly, we believe we are building the operational foundation to evolve into a new mid-tier prime. As we move through 2026, we believe incremental progress will be reflected in potential milestones such as signing initial defense and homeland security customers for SwarmOS and BRAIN X2, securing first commercial deployments of Palladyne™ IQ 2.0 and Palladyne™ Pilot, advancing government development programs, moving systems like Banshee, SwarmStrike and ALRRM closer to operational readiness, and continuing to identify and execute strategic acquisitions with a disciplined focus on valuation. We view these milestones as leading indicators of the next phase of growth beginning in 2027.”

Full Year 2026 Revenue Guidance Indicates Step-Change in Scale

For the full year ending December 31, 2026, Palladyne expects to recognize revenue in the range of $24.0 million to $27.0 million, up from the approximately $24 million provided in mid-November of 2025 when the Company acquired GuideTech, Warnke Precision Machining and MKR Fabricators. The guidance is supported by contracts, customer activity and the integration of these recently-acquired operations and represents growth of 336% -

440% over preliminary full year 2025 revenue (which only includes approximately 6-weeks of revenue from the GuideTech, Warnke Precision and MKR acquisitions) of $5.0 to $5.5 million. The Company’s 2026 guidance reflects a higher operating scale compared to its preliminary expectations for full year 2025 revenue (which will primarily reflect legacy operations, mainly government development contracts).

Contracted Demand Supports Revenue Visibility

As of December 31, 2025, Palladyne reported backlog of more than $13.0 million, representing the total value of signed and fully funded or committed customer contracts and purchase orders.

Backlog, which is primarily acquisition related, increased from approximately $10.0 million in mid-November 2025, when the Company announced its acquisitions, reflecting additional customer programs secured during the fourth quarter. Palladyne expects a majority of this backlog to be recognized as revenue over the next 12 months, supporting near-term conversion and execution.

Liquidity Position Supports Near-Term Execution

As of December 31, 2025, Palladyne AI held approximately $47.0 million in cash and cash equivalents. The Company believes its current liquidity supports near-term operational requirements, integration activities and execution of existing customer programs as it enters fiscal year 2026.

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About Palladyne AI

Palladyne AI is a U.S.-based technology company developing patented embodied artificial intelligence, collaborative autonomy solutions, advanced avionics, autonomous systems, advanced UAV engineering services, and precision-manufactured components for defense and industrial markets. Palladyne AI delivers secure, American-developed and operated platforms designed to meet the stringent requirements of U.S. government and public-sector customers, including data sovereignty, security, and compliance.

Palladyne AI’s embodied AI is designed to operate in complex, contested, and high-risk environments, enabling distributed tasking, human-on-the-loop decision-making, degraded-communications resilience, and multi-domain coordination. Its platform-agnostic autonomy stack combines real-time sensor fusion, adaptive AI models, and edge-native orchestration—without vendor lock-in—to support autonomous and collaborative systems across air, ground, maritime, an

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Exhibit 99.1

Palladyne AI Reports Third Quarter Fiscal 2025 Results and Provides Update on Recent Developments

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 – 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 IQsoftware 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. (NASDAQ: 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. (NASDAQ: PDYN) h

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Exhibit 99.1

Palladyne AI Corp Provides 2025 Mid-Year Business and Financial Update

First Half 2025 Financial and Product Development Objectives Met; Focus Shifts to Completion of Version 2 of Palladyne™ IQ, Demonstrating Enhanced Capabilities for Palladyne™ Pilot with Defense Community and Securing Customers

SALT LAKE CITY – August 6, 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 key business and financial achievements to date for 2025 in conjunction with the filing of its 2025 second quarter Form 10-Q.

Mid-2025 Highlights and Recent Developments

• Continued strengthening of the balance sheet, with $62.7 million in cash, cash equivalents, and marketable securities on hand as of June 30, 2025, working capital of $62.0 million, and no debt for borrowed money or other long-term financial obligations on the balance sheet other than the Company’s long-term office lease.

• Raised $34.8 million, net of commissions and offering expenses, during the first half of 2025 through at-the-market offerings and the exercise of warrants.

• First half 2025 cash burn of $2.0 million per month, adjusted for net cash raised during the year, with approximately the same rate expected for the second half of 2025, at the upper end of the $1.6 - $2.0 million range previously communicated.

• Initial Commercial versions of Palladyne™ IQ and Palladyne™ Pilot products for sale.

• Version 2 of Palladyne IQ scheduled for release in second half 2025 to incorporate user experience and other improvements based on continued testing and customer feedback.

CEO Commentary

The intensifying tariff and foreign policy landscape, especially with ongoing U.S.-China tensions, is prompting a re-evaluation of local manufacturing and global supply chains. Manufacturing reinvention in 2025 is no longer speculative—it is federal policy. President Trump’s reshoring agenda, matched with defense-driven stimulus and AI-centric automation, will fuel a new era of digitally enabled, domestically anchored industrial growth. American manufacturers are expected to accelerate reshoring efforts and investments in automation to remain competitive. This will lead to a significant increase in demand for AI-driven robotics that can offset labor costs, optimize throughput, and increase margins.

Additionally, the Trump administration’s 2025 policies—especially the Golden Dome missile defense initiative and expanded drone security measures—will drive a significant structural increase in defense spending, with implications across aerospace, autonomy, and AI ecosystems.

We believe that in the medium and long term, reshoring of manufacturing creates a substantially larger market opportunity for our products. However, in the near term, market uncertainty has temporarily slowed sales momentum for Palladyne IQ. Systems integrators and potential customers of Palladyne IQ have indicated that recent changes in U.S. trade policy have caused some of them to re-evaluate their automation priorities. In several cases, this re-evaluation is leading to discussions about substantially larger potential engagements with prospective customers compared to the scope that was under discussion before the policy changes. Based on interaction with dozens of potential customers during the first half of 2025, we believe that the sales cycle for our products is likely to be between 12 and 18 months, or even longer. We expect that the second half of 2025 will bring greater clarity on our potential customers’ automation priorities, planning, and initiatives.

Fortunately, we believe we are well-positioned to capitalize on strong structural drivers that will accelerate over the coming years:

• Manufacturing Reinvention: The Trump administration’s second term is doubling down on a “Made in America” economic strategy, emphasizing domestic production, strategic autonomy, and AI-enabled automation to modernize U.S. manufacturing. We believe reshoring and labor shortages will trigger long-term investment in domestic smart factories, accelerating demand for AI-driven automation platforms.

• Public Safety Modernization: The private sector is stepping into roles traditionally held by public agencies. One of the most exciting near-term growth areas lies at the intersection of drones and public safety. Across the United States, municipalities and private security firms will invest in autonomous aerial surveillance, emergency response, and infrastructure inspection. Security firms, utilities, and logistics providers are adopting drone-based AI for surveillance, response, and monitoring.

• Government & Defense AI Spending: The FY2025 National Defense Authorization Act (NDAA) reflects an increase in total defense spending exceeding $950 billion, with a large share of new appropriations earmarked for missile defense

8-K

0001826681false00018266812025-03-312025-03-310001826681us-gaap:CommonStockMember2025-03-312025-03-310001826681pdyn:RedeemableWarrantMember2025-03-312025-03-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 31, 2025

Palladyne AI Corp.

(Exact name of Registrant as Specified in Its Charter)

Delaware

001-39897

85-2838301

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

650 South 500 West, Suite 150

Salt Lake City, Utah

84101

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (888) 927-7296

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

PDYN

The Nasdaq Stock Market LLC

Redeemable warrants, exercisable for shares of Common Stock at an exercise price of $69.00 per share

PDYNW

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

Palladyne AI Corp. (the “Company”) presents in this Item 2.02 certain information for the quarter ended March 31, 2025.

As of March 31, 2025, we had cash, cash equivalents and marketable securities of approximately $46.5 million. During March 2025, we released the initial commercial version of Palladyne Pilot which continues to undergo reliability testing, debugging and other stabilizing improvements as we continue internal testing and learn from customer trials.

The Company’s actual financial statements as of and for the quarter ended March 31, 2025 are not yet available. The actual amounts that the Company reports will be subject to the Company’s financial closing procedures and any final adjustments that may be made prior to the time its financial results for the quarter ended March 31, 2025 are finalized and filed with the SEC. The Company’s independent registered public accounting firm has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary financial data. This estimate should not be viewed as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States and it is not necessarily indicative of the results to be achieved in any future period.

The information in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this report that are not historical facts may be considered “forward-looking statements,” including, but not limited to, statements regarding the Company’s preliminary unaudited cash, cash equivalents as of March 31, 2025. Forward-looking statements are typically, but not always, identified by the use of words such as “may,” “would,” “believe,” “intend,” “plan,” “anticipate,” “estimate,” “expect,” and other similar terminology. Forward-looking statements are based on current expectations of management and upon what management believes to be reasonable assumptions based on information currently available to it, and are subject to risks and uncertainties. Such risks and uncertainties may cause actual results to differ materially from the expectations

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Exhibit 99.1

Palladyne AI Corp Provides 2024 Year End Business and Financial Update

2024 Financial and Product Development Objectives Met; Focus Turns to Securing Customers for 2025

SALT LAKE CITY – February 20, 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 key business and financial achievements for 2024 in conjunction with the filing of its 2024 Annual Report on Form 10-K.

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.

CEO Commentary

“2024 was a transformative year for the Company. We set out early in 2024 with an objective to commercialize our novel AI/ML software products which are designed to enable robots and other remote controlled machines to learn, reason, and act in a manner similar to humans. I’m delighted to report that we achieved this objective, with an improved commercial version of Palladyne IQ -- which is ready for on-site customer trials and purchase -- and our Palladyne Pilot drone product, which is expected to be commercially available by the end of the first quarter of 2025. Another key milestone for 2024 was to materially extend our financial runway by substantially reducing costs and opportunistically raising capital. Again, we achieved this objective, hitting our internal targets for expense reductions while also raising capital at valuations that were many multiples of the Company’s valuation at the beginning of the year.

Palladyne IQ

Palladyne IQ is a closed-loop, full-stack, AI software product built on our AI/ML foundational technology intended to make robots smarter so that they can perform jobs that have historically been too complex to automate. It is designed to enhance the utility and functionality of third-party robotic systems by enabling these systems to quickly observe, learn, reason and act in structured, unstructured and dynamic environments. It incorporates our artificial intelligence (AI) and machine learning (ML) foundational technologies that 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.

We are frequently asked whether we compete with the likes of OpenAI and whether the advancements of companies like DeepSeek have any impact on our business opportunity. The simple answer is “No” for a number of key reasons.

First, companies such as OpenAI and DeepSeek focus on what we refer to as digital world AI by building foundation models that leverage decades of internet-based information to provide humans with insights and information that would be virtually impossible for humans to develop at the same speed on their own. In contrast, we focus on what we refer to as physical world AI, where our AI is being applied to robotics to manipulate real objects in the real world. There is no existing massive repository or database of robot movements or actions that can be fed into a foundation model that will enable a robot to autonomously function in the real world. Furthermore, every robot is different – they come in a wide variety of shapes, sizes, and forms, and every environment is different. The diversity of robot designs means that data would need to be collected for each robot type, not to mention data from every environment in which ea

8-K

false000182668100018266812024-12-312024-12-310001826681us-gaap:CommonStockMember2024-12-312024-12-310001826681pdyn:RedeemableWarrantMember2024-12-312024-12-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 31, 2024

Palladyne AI Corp.

(Exact name of Registrant as Specified in Its Charter)

Delaware

001-39897

85-2838301

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

650 South 500 West, Suite 150

Salt Lake City, Utah

84101

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (888) 927-7296

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

PDYN

The Nasdaq Stock Market LLC

Redeemable warrants, exercisable for shares of Common Stock at an exercise price of $69.00 per share

PDYNW

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On December 31, 2024, Palladyne AI Corp. (the “Company”) filed the December Prospectus Supplement (as defined below) with the Securities and Exchange Commission (“SEC”). The Company included the following disclosure in the December Prospectus Supplement:

“As of December 31, 2024, we had cash and cash equivalents of approximately $40 million, which includes $23.3 million in net proceeds from the equity financings noted above.”

The Company’s actual financial statements as of and for the year ended December 31, 2024 are not yet available. The actual amounts that the Company reports will be subject to the Company’s financial closing procedures and any final adjustments that may be made prior to the time its financial results for the year ended December 31, 2024 are finalized and filed with the SEC. The Company’s independent registered public accounting firm has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary financial data. This estimate should not be viewed as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States and it is not necessarily indicative of the results to be achieved in any future period.

The information in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On November 13, 2024, the Company entered into an Open Market Sale AgreementSM (the “Sales Agreement”) with Jefferies LLC (“Jefferies”) to sell shares of the Company’s common stock, par value $0.0001 per share (“Shares”), from time to time, through an “at the market offering” program under which Jefferies acts as sales agent. The Shares are issued pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-268399), filed with the SEC on November 15, 2022 and declared effective on November 23, 2022. On November 13, 2024, the Company filed a prospectus supplement (the “November Prospectus Supplement”) with the SEC in connection with the offer and sale of $18.0 million of Shares pursuant to the Sales Agreement. As of December 27, 2024, the Company had sold 3,680,543 of Shares for gross proceeds of approximately $18.0 million, before deducting commissions to Jefferies and other expenses, under the Novem

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Exhibit 99.1

PALLADYNE AI CORP Provides Mid-Year Business and Financial Update

Key Milestones for Commercialization of Artificial Intelligence Software Platform for Industrial Robots and Cobots Achieved on Schedule with Substantially Improved Financial Results

SALT LAKE CITY– August 7, 2024 – Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) (“Palladyne AI”), a developer of artificial intelligence software for robotic platforms in the commercial and defense sectors, today announced recent key business and financial achievements.

Highlights

• Minimal viable product (MVP) version of Palladyne IQ released for customer evaluation and trials -- expect commercial launch of Palladyne IQ during the second half of 2024.

• Successful completion of first on-site trial of Palladyne IQ at a customer location.

• Revenues increased by 112% in the second quarter 2024 as compared to the second quarter of 2023 and increased 72% in the first half of 2024 as compared to the first half of 2023.

• 73% decrease in operating expenses, including restructuring charges, and 81% decrease in net loss in the second quarter 2024 as compared to the second quarter 2023.

• 66% decrease in operating expenses, including restructuring charges and 75% decrease in net loss in the first half 2024 as compared to the first half 2023.

• Key executives and business leaders with prior experience at ABB, Delta Airlines, iRobot and Softbank have joined the company to drive commercialization and customer acquisition.

“Palladyne AI makes robots smarter to do jobs that have historically been too complex to automate. While it is early days, we are seeing strong interest from companies globally that are looking to accelerate operations while driving efficiency by expanding the jobs done by robots,” said Ben Wolff, President and Chief Executive Officer of Palladyne AI Corp.

Our AI/ML Software Platform enhances the utility and functionality of third-party stationary and mobile robotic systems by enabling these systems to quickly observe, learn, reason and act in structured, unstructured and dynamic environments. Our software platform is designed with artificial intelligence (AI) and machine learning (ML) technologies that 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. We are developing two products based on our AI/ML Software Platform: Palladyne IQ for use with both stationary industrial robots and cobots, and Palladyne Pilot for use with mobile robotic platforms such as drones and unmanned ground vehicles. During the second quarter 2024, we released our MVP version (i.e., a version of the product that is capable of performing the minimal functions necessary but that does not have all the features of and has not been fully tested, debugged or refined into our planned product for general commercial release) of Palladyne IQ and have had our first trial of Palladyne IQ at a customer location.

We believe our software’s closed-loop autonomy approach is the key to expedite robot training, expand the tasks that a robot can perform, reduce costly workflow stoppages, mitigate downtimes and reduce human labor requirements. We anticipate that this “human-like” ability to learn and adapt will be a key differentiator in helping our customers achieve and maintain optimal productivity in dynamic or unstructured environments, where new situations and unexpected challenges are more likely to cause delays and costly downtime.

“We have designed our AI/ML Software Platform to be hardware agnostic in order to be compatible with most industrial robots being sold today,” continued Mr. Wolff. “We have so far met our key product development milestones on time in 2024, and expect to release the commercial version of Palladyne IQ in the second half of this year. We intend to continue product testing, enhance product features and functionality and work with prospective customers throughout the remainder of this year with a goal of generating revenues from Palladyne IQ product sales beginning in the first half of 2025.”

Financial Performance

We are pleased to announce that our efforts to reduce expenses, including our decision to focus on our AI/ML Software Platform and suspend our hardware product development efforts and the two reductions in force announced in 2023, have resulted in a 73% decrease in operating expenses, including restructuring charges, and 81% decrease in net loss in the second quarter 2024 as compared to the second quarter 2023, and a 66% decrease in operating expenses, including restructuring charges, and 75% decrease in net loss in the first half 2024 as compared to the first half 2023. As a result, we have been able to dramatically reduce our use of cash, ending th

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Exhibit 99.1

Sarcos Technology and Robotics Corporation Announces Third Quarter 2023 Financial Results

Pivots to Artificial Intelligence, Machine Learning Software Business

SALT LAKE CITY – November 14, 2023 – Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW, a leader in advanced robotic technology designed to increase the intelligence, efficiency, capability and productivity of advanced robotic systems through applied autonomy, today announced financial results for the quarter ended September 30, 2023.

Highlights

• Laura Peterson appointed as President and CEO; Ben Wolff, co-founder and Board member named Executive Vice Chairman

• Sarcos artificial intelligence (AI) and machine learning (ML) software business bolstered by $13.8 million contract from the U.S. Air Force to advance its AI/ML software

• Pivoting business to focus on robotic AI/ML software platform; aligning cost structure with business priorities

CEO Commentary

“Since I assumed the role of CEO in May, our leadership team has conducted an ongoing rigorous, data-driven analysis and review of our business, market opportunities, products and development programs,” said Laura Peterson, President and Chief Executive Officer of Sarcos.

“With the consideration of our cash position, as well as third party dependencies, customer decision timing, and the cost and time to achieve a significant and steady revenue stream from our hardware products, it was clear that we should adjust course rapidly to right size the company and get our cash usage down to a level that we believe will provide the best opportunity for success with our available resources. We made the decisions to suspend our hardware commercialization efforts, implement a significant reduction in force and focus our resources on our AI/ML platform.

“By de-coupling our advanced AI/ML software from our own robotic systems, we believe we have the opportunity to reach a much broader market more quickly by targeting existing deployed robotic systems and new sales of third-party systems. We can provide customers with the solutions they need through the intellectual capital that Sarcos brings to the table, but without requiring significant investment in hardware development and production.

“In addition, as previously announced, we already have AI software-related contracts with various U.S. government agencies, including a $13.8 million, four-year development contract with the U.S. Airforce to advance artificial intelligence and machine learning software. The contract supports the development, integration and validation of our AI and ML software framework for success-based learning, which will allow robots to perceive their environment, determine reasonable behavior in unforeseen situations, and quickly change their actions.

“In connection with our plans to focus on robotic AI/ML software, we are realigning our resources, including taking steps to reduce our headcount and operating expenses, which we expect to result in a significant reduction in our monthly cash usage after the restructuring is completed.”

Q3 Financial Results

Third quarter 2023 total revenue was $1.8 million, compared to $4.7 million during the third quarter of 2022. Revenues decreased on a year-over-year basis as a result of fewer product development contracts being worked during the current year, offset slightly by an increase in product revenue.

Total operating expenses for the third quarter of 2023 were $32.6 million, compared to operating expenses of $31.9 million during the third quarter of 2022. In connection with the July 12, 2023, announced restructuring, the Company incurred charges of $5.5 million in the third quarter of 2023, including $1.1 million in severance and benefit payments and $4.4 million due to the acceleration of stock-based compensation expense resulting from the early termination of the Company's redemption right over certain shares held by the Company's former Chief Operating Officer in connection with the termination of his employment. Further, reflecting the restructuring actions announced today, the Company incurred $5.7 million of restructuring costs in the third quarter 2023, including a write-down of inventory of $5.2 million and $0.5 million related to the write-down of certain assets. Cost of revenue decreased to $1.2 million in the third quarter 2023 as compared to $3.6 million in the third quarter 2022, mainly due to decreased labor and material expenses charged to product development contracts. Third quarter 2023 gross margin was 33%, compared to 23% in the third quarter of 2022.

Research and development expenses decreased to $10.0 million in the third quarter 2023 as compared to $10.5 million in the third quarter of 2022, due mainly to reduced third party professional service expenses connected with our prioritization of efforts. General and administrative expenses decreased to $7.6 million in Q3 2023 as

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Exhibit 99.1

Sarcos Technology and Robotics Corporation Announces Second Quarter 2023 Financial Results

SALT LAKE CITY— August 9, 2023—Sarcos Technology and RoboticsCorporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the design, development, and manufacture of advanced robotic systems, solutions and software that redefine human possibilities, today announced financial results for the quarter ended June 30, 2023.

Second Quarter and Recent Highlights

• Optimized ongoing operations, taking steps to improve efficiency and reduce cash spend

• Formed new Advanced Technologies software business division to drive emerging artificial intelligence (AI) SaaS revenue opportunities; bolstered by an expanded contract from the Air Force Research Laboratory (AFRL) for continued development of AI driven technologies

• Announced an agreement with Blattner Company to develop an autonomous robotic solar construction system

“As we announced on July 12, 2023, we are realigning the business and focusing our operations to capitalize on our most promising revenue opportunities, including Guardian® Sea Class, aviation and solar solutions, and our newly announced Advanced Technologies division,” said Laura Peterson, Interim President and Chief Executive Officer at Sarcos. “Additionally, we made the difficult, but strategic decision to reduce our workforce by approximately 25% and optimize our manufacturing facilities by consolidating our Pittsburgh manufacturing into our Salt Lake City location.

“I am confident these strategic decisions are right for Sarcos at this point in its growth as evidenced by recent milestones including our agreement with Blattner Company to develop an autonomous robotic solar construction system, our extended agreement with the Air Force Research Laboratory to continue to develop AI and software and services, and our agreement with VideoRay to develop underwater robotic systems.

“In addition, we have taken steps to significantly reduce our future cash usage and ended the quarter with $75 million in cash. We believe we have sufficient liquidity to operate into 2025 without additional financing.”

Financial results

Second quarter 2023 total revenue was $1.3 million, compared to $3.0 million during the second quarter of 2022.

Total operating expenses for the second quarter of 2023 were $31.2 million, compared to operating expenses of $32.0 million during the second quarter of 2022. In connection with the July 12, 2023, announced restructuring, the Company incurred charges of $5.1 million in the second quarter of 2023, including $4.4 million due to the write-down of inventory and $0.7 million related to the impairment of certain fixed assets. Cost of revenue decreased to $0.9 million in Q2 2023 as compared to $3.1 million in Q2 2022, mainly due to decreased labor and material expenses charged to product development contracts. Second quarter 2023 gross margin was 26%, compared to negative 4% in the second quarter of 2022.

Research and development expenses increased to $11.7 million as compared to $7.6 million in the second quarter of 2022, due to increased labor and overhead expense as a result of increased headcount (due in part to the RE2 acquisition) and increased direct materials charges. General and administrative expenses decreased

to $8.3 million in Q2 2023 as compared to $18.1 million in Q2 2022, primarily due to decreased stock-based compensation.

Second quarter 2023 net loss was $28.7 million or $1.12 per share, compared to a net loss of $23.1 million or $0.95 per share in the second quarter of the prior year.

Second quarter 2023 non-GAAP net loss was $21.9 million or $0.86 per diluted share. Reconciliation of net loss to non-GAAP net loss is included at the end of this release.

Please note, on July 5, 2023, Sarcos effected a 1-for-6 reverse stock of the Company's outstanding shares of common stock. All share and per share amounts have been retroactively adjusted for all periods presented to reflect the reverse stock split.

Sarcos ended the quarter with $75.1 million in unrestricted cash, cash equivalents, and marketable securities.

Financial guidance

Sarcos believes that its third quarter 2023 total revenue will range between $1.1 and $1.4 million. The Company anticipates incurring additional restructuring expense related to the reduction of headcount of approximately $6.0 million, net, during the third quarter of 2023, which includes approximately $1.5 million in cash severance and benefit payments. The restructuring is expected to reduce personnel related cash usage by approximately $14.6 million annually beginning in 2024.

The Company estimates cash used in operating activities to average approximately $5.5 million per month during the third quarter of 2023. Sarcos intends to manage its average monthly cash usage to approximately $3.0 million in 2024.

Conference call and webcast

A conference call and audio webcast with analys

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Exhibit 99.1

Sarcos Technology and Robotics Corporation Announces First Quarter 2023 Financial Results

Momentum building as company nears commercialization

SALT LAKE CITY— May 10, 2023—Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the design, development, and manufacture of advanced robotic systems, solutions and software that redefine human possibilities, today announced financial results for the quarter ended March 31, 2023.

First Quarter and Recent Highlights

• Participated in successful demos of Guardian® XT™ and Guardian® XM at ConExpo-Con/AGG 2023, the largest construction equipment tradeshow in North America

• Signed a manufacturing services agreement with Jabil, a leading manufacturing services provider, to expand Sarcos’ production capacity as the company scales

• Participated in the Aviation & Robotics Summit, a three-day event bringing together aviation and robotics industry professionals with the goal of solving aviation business and operational challenges with robotics solutions

• Participated in the Offshore Technology Conference and Exhibition for the energy industry to demonstrate subsea capabilities with the Guardian® Sea Class

• Signed an agreement with VideoRay to sell integrated underwater robotic systems combining VideoRay remotely operated vehicles and Sarcos Guardian® Sea Class systems

“We continue to refine our focus and gain momentum as we push toward commercialization of our robotic systems and solutions,” said Kiva Allgood, President and CEO, Sarcos. “We had successful demonstrations of our Guardian systems to attendees at ConExpo in March, the Aviation & Robotics Summit in April and the Offshore Technology Conference in May. Our participation in these events reinforce our commitment to the opportunities we continue to pursue in the Aerospace, Construction, and Underwater industries, which we estimate represent a collective global TAM opportunity of approximately $185 billion in 2025. I have tremendous confidence that our key end markets are ready for our products and are excited about how robotics will revolutionize labor utilization and worker safety.

“We are guiding for full year 2023 revenue to increase by 64% at the midpoint of our guidance, and will continue to optimize operating expenses, all leading to our goal of exiting 2024 on pace to be cash flow positive in 2025.”

Financial results

First quarter 2023 total revenue was $2.3 million, compared to $0.7 million during the first quarter of 2022. The increase was due to Product Development Contract revenue increases.

Total operating expenses for the first quarter of 2023 were $25.5 million, compared to operating expenses of $26.4 million during the first quarter of 2022. The overall decrease was mainly due to reduced stock-based compensation. Research and development expenses increased to $9.4 million as compared to $5.9 million in the first quarter of 2022, due to increased labor and overhead expense as a result of increased headcount (due in part to the RE2 acquisition) and increased direct materials charges. Cost of revenue increased to $1.8 million in Q1 2023 as compared to $0.5 million in Q1 2022, mainly due to the costs associated with Product Development Contracts and the addition of RE2.

First quarter 2023 net loss was $21.5 million or $0.14 per share, compared to a net loss of $19.2 million or $0.14 per share in the first quarter of the prior year.

First quarter 2023 non-GAAP net loss was $19.4 million or $0.13 per diluted share. Reconciliation of net loss to non-GAAP net loss is included at the end of this release.

Sarcos ended the quarter with $94.7 million in unrestricted cash, cash equivalents, and marketable securities.

Financial guidance

Sarcos believes that its second quarter 2023 total revenue will be approximately $2.1 million, of which approximately $400,000 will be revenue from Product sales. For the full year 2023, the Company continues to expect total revenue to range between $23 and $25 million. Product Development Contract Revenue is expected to be approximately 80% of the mix and Product Revenue the remaining approximately 20%. Product sales are expected to begin to ramp up in the second half of 2023.

Turning to operating expenses, Sarcos believes its research and development expenses will decrease in 2023 as compared to 2022 due to decreased use of third-party research and development resources as the Company continues to develop and refine its existing products and further enhance its efforts on our future products and software. With the exception of stock-based compensation expense, Sarcos expects its general and administrative expenses in 2023 to increase slightly due to commercialization efforts and public company compliance requirements. Sales and marketing will increase in 2023 in line with the expected revenue growth in the future.

The Company estimates cash used in operating activities

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EX-99

Exhibit 99.1

Sarcos Technology and Robotics Corporation Announces Fourth Quarter and Full-year 2022 Financial Results

Delivered Fourth Quarter and Full Year 2022 Revenue at the High End of Guidance

Achieved Guardian® XM Production Goal and Debuted Prototype of Semi-Autonomous Baggage Loading System for Aviation Industry

SALT LAKE CITY— March 16, 2023—Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the design, development, and manufacture of advanced robotic systems and solutions that redefine human possibilities, today announced financial results for the fourth quarter and full year 2022 ended December 31, 2022.

2022 Highlights

• Achieved goal of producing 10 units of the Guardian® XM in the fourth quarter

• Demonstrated the functionality of the Guardian® XT™ highly dexterous teleoperated robotics system to both government and commercial customers.

• Demonstrated an outdoor-based semi-autonomous baggage loading system prototype jointly developed with Changi Airport Group

• Awarded contract for the Collaborative Sensing Platform by Air Force Research Laboratory

• Executed field trials demonstrating improved worker safety and productivity for the U.S. Navy, including successfully testing a STARFISH Dexterous Underwater Robotic Gripper

• Acquired and integrated RE2, a developer of autonomous and teleoperated mobile robotic systems for use in the aviation, construction, defense, energy and medical industries

• Appointed Drew Hamer as Chief Financial Officer

“We ended the year strong by meeting our goal of producing 10 Guardian®XM units in the fourth quarter,” said Kiva Allgood, President and CEO, Sarcos. “2022 was a year of milestones and progress. Our acquisition and integration of RE2 expanded our capabilities, our product line and our robotics expertise. We successfully executed multiple field trials and demonstrations of our robotics abilities in unstructured, outdoor environments in situations that humans can’t or don’t want to go. We also developed market specific solutions like the autonomous baggage loading system prototype in conjunction with Changi Airport Group.

“Together with industry leaders Mortenson, JLG Industries, Array Technologies, and Pratt Miller, we completed the validation of a system designed to enhance safety and efficiency in solar field construction. This market validation and field test milestone was a mission-critical step on our path to commercializing our robotic solar field construction solution. Now we’re positioned to begin commercialization of three core robotic systems and our software solutions and are ready to move forward with production.”

Financial results

The discussion in this press release regarding Sarcos’ results of operations for the three months ended December 31, 2022, includes the financial results of RE2. The discussion of the results of operations for the full year 2022 includes the financial results of RE2 for the period after the closing of the acquisition on April 25, 2022.

Fourth quarter 2022 total revenue was $6.1 million, compared to $1.0 million during the fourth quarter of 2021. The increase was primarily due to increased revenue from product development contract revenues. Full-year 2022 total revenue increased to $14.6 million from $5.1 million for the full-year of 2021 for the same reason.

Total operating expenses for the fourth quarter were $101.3 million, an increase from the fourth quarter 2021 operating expenses of $28.6 million. The increase was mainly due to a non-cash goodwill impairment of $70.2 million, which was primarily driven by the sustained decrease in the company’s publicly quoted share price and market capitalization. For the full-year 2022, total operating expenses increased by $105.5 million to $191.6 million, due mainly to the aforementioned goodwill impairment. Research and development expenses increased by $16.6 million as compared to the prior year due to increased labor and overhead expense as a result of increased headcount (due in part to the RE2 acquisition) and third-party service provider costs as the company focused on the development and commercialization of its Guardian XT, Guardian XM, Guardian Sea Class and Guardian XO products. Cost of revenue increased by $7.7 million in 2022 as compared to 2021, mainly due to the costs associated with product development contracts.

Fourth quarter 2022 net loss was $92.3 million or ($0.61) per share, compared to a net loss of $34.1 million or ($0.25) per share in the fourth quarter of the prior year. For the full year 2022, net loss was $157.1 million or ($1.07) per share, compared to $81.5 million or ($0.72) per share in the prior year.

Fourth quarter non-GAAP net loss was $18.0 million or ($0.12) per diluted share. Full year non-GAAP net loss for 2022 was $67.4 million, or ($0.46) per diluted share. Reconciliation of net loss to non-GAAP net loss is included at the end of this r

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Exhibit 99.1

Sarcos Commercializing and Expanding its Line of Teleoperated Robotics and Software Solutions

Expects Revenue of $6.1 Million for Q4 and $14.6 Million for the Full Year 2022

SALT LAKE CITY— February 23, 2023—Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the design, development, and manufacture of advanced robotic systems and solutions that redefine human possibilities, today announced preliminary fourth quarter 2022 revenue of $6.1 million and full year 2022 revenue of $14.6 million, each at the high end of its guidance range, and provided an update on its product commercialization efforts.

As part of its product commercialization efforts, Sarcos has expanded its Guardian® product line, adding the Guardian® XM intelligent robotic system and Guardian® Sea Class robotic system to its lineup, which also includes the Guardian® XT™ dexterous robotic system. The Guardian XM and Guardian Sea Class come from Sarcos’ acquisition of RE2, Inc. (“RE2”) in April 2022, after which the company integrated RE2’s Sapien products into its portfolio. Sarcos is now commercializing its Guardian XT system, Guardian XM system (previously named the Sapien 6M), and Guardian Sea Class system (previously named the Sapien Sea Class).

“Sarcos is a pioneer in robotics and has helped shape the industry since its founding in 1983,” said Kiva Allgood, President and CEO, Sarcos. “R&D has been our focus, and it got us where we are today. Now it’s time to leverage our $375 million R&D investment and commercialize our teleoperated robotic systems and semi-autonomous solutions for which our customer pipeline is ready. We expect to fulfill near-term customer demand for our robotic systems and generate revenue through sales of our three core systems, the Guardian XT, Guardian XM, and Guardian Sea Class systems, and our market-specific robotic solutions. We are continuing to develop our Guardian® XO®exoskeleton.

“Tight labor markets mean employers have an immediate need to optimize their workforces. As a result, we see immediate demand for the Guardian XT, Guardian XM, and Guardian Sea Class due to their ability to significantly improve worker productivity, specifically in the power and utilities, aviation, defense, and solar construction markets.”

Sarcos achieved its objective of producing 10 Guardian XM robot manipulators in the fourth quarter of 2022. The company believes that the production of Guardian XM and Guardian XT systems is on schedule and that initial commercial versions of both systems will be ready for customer delivery in the first half of 2023. Sarcos’ facilities in Salt Lake City and Pittsburgh can produce 300 to 500 robots, depending on the mix. The company plans to expand production capacity by partnering with a contract manufacturer.

Sarcos’ robotic systems include baseline software enabling basic controls, teleoperation, and semi-autonomous capabilities. Sarcos will provide additional software options, such as supervised autonomy as an incremental service. Sarcos’ supervised autonomy framework uses multi-modal sensor data to optimally perceive, interact, and conceptualize unstructured environments. Combined with our success-based learning AI approach, the supervised autonomy framework harnesses the power of real-time and learned-behavior data inputs that enable Sarcos’ robots to execute task-specific autonomy in unstructured environments successfully. Our advanced, success-based AI enables human workers' flexibility, creativity, and improvisation skills to deliver improved workflow performance and safer interactions between humans and machines for jobs in unstructured environments. In addition, Sarcos intends to offer its software solutions separately for sale or license.

Drew Hamer, CFO of Sarcos, said, “We see strong demand to purchase Sarcos’ robotic systems. We expect to sell solutions for specific markets and use cases based on our customers’ needs and applications.

“We’re also seeing customers gravitate toward purchasing access to our software as a standalone service. Given customer interest in purchasing our systems and solutions, we do not expect Robot as a Service (RaaS) to be a focus of our business model going forward. If needed in the future, we will support our customers in identifying capital providers to finance their purchases of robotic systems.

“We closed the year with $114.5 million in cash and cash equivalents, which will allow us to scale up production quickly. Additionally, our shift from a RaaS model to a direct sales model will lower our expected additional capital requirements to achieve cash flow break-even to less than $50 million,” Hamer concluded.

Management will provide additional information and updated guidance on next month's fourth quarter and fiscal year 2022 results call.

The Guardian XM, Guardian Sea Class, and Guardian XT robotic systems are for sale. For inquiries, please email

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Exhibit 99.1

Sarcos Announces Third Quarter 2022 Financial Results

Began production of commercial units of Sapien 6M robotic system ahead of schedule

On target to commence initial production of commercial units of Guardian® XTTM teleoperated dexterous robotic system by end of 2022

Successful field demonstrations of innovative shipyard solutions for U.S. Navy

SALT LAKE CITY — November 8, 2022 — Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the design, development, and manufacture of advanced robotic systems that redefine human possibilities, today announced financial results for the quarter ended September 30, 2022.

Recent highlights include:

• Met customer field trial milestones in shipyard maintenance and repair and airport logistics industries and met program deliverables in vegetation management

• Continued development of supervised autonomy and software-as-a-service capabilities designed to be offered as additional services for Sarcos customers

• Successfully demonstrated the capabilities of the company’s technology at the first-of-its-kind Repair Technology Exercise (REPTX) hosted by the U.S. Navy

“We achieved two vital milestones in the third quarter as we started production of commercial systems of our Sapien 6M and demonstrated the effectiveness of our technology in the field to the U.S. Navy,” said Kiva Allgood, President and CEO, Sarcos. “These achievements and the advancement in our software are a testament to the ability of our team to work together to achieve our goals and position Sarcos for success.”

Financial results

The discussion in this press release regarding Sarcos’ results of operations for the three months ended September 30, 2022, includes the financial results of RE2. The discussion of the results of operations for the nine months ended September 30, 2022, includes the financial results of RE2 for the period after the closing of the acquisition on April 25, 2022.

Third quarter total revenue was $4.7 million, up from $1.1 million in the equivalent period of 2021. The increase was primarily due to a $3.8 million increase in revenue from research and development services following the acquisition of RE2.

Total operating expenses in the third quarter were $31.9 million, a decline of $9.7 million from the third quarter of 2021. This decrease was primarily a result of a $21.9 million reduction in stock-based compensation expense year-over-year, offset by increased research and development and general and administrative expense associated with higher headcount following the RE2 acquisition and additional expense associated with a focus on the commercialization of the company’s products.

The third quarter net loss was $22.5 million, compared to a third quarter 2021 net loss of $37.0 million. The decrease was primarily the result of the year-over-year decline in stock-based compensation expense and deferred income tax benefits related to the acquisition of RE2, offset by the increased headcount and commercialization expenses outlined above.

Excluding certain items, third quarter non-GAAP net loss was $18.6 million or $0.12 non-GAAP net loss per diluted share, compared to non-GAAP net loss of $8.8 million or $0.08 non-GAAP net loss per diluted share in the third quarter of 2021. The increase in non-GAAP net loss was primarily the result of the increase in research and development and general and

administrative expense referenced earlier. Non-GAAP net loss excludes, among other items, the impact of stock-based compensation expense, changes in the value of the company’s warrant liability, and certain acquisition costs and tax benefits. A reconciliation of net loss to non-GAAP net loss is included at the end of this release.

Sarcos ended the quarter with $135.4 million in unrestricted cash, cash equivalents, and marketable securities.

Development outlook and financial guidance

Sarcos began initial production of commercial units of its Sapien 6M robotic systems ahead of schedule during the third quarter and continues to expect to commence initial production of commercial units of the Guardian XT teleoperated robotic system by the end of 2022, in both cases to be available for delivery to customers in the first half of 2023. In addition, Sarcos continues to expect to begin initial production of commercial units of the Guardian XO full-body powered industrial exoskeleton in the second half of 2023.

Including the impact of the RE2 acquisition, Sarcos now believes that its total revenue will be between $13 million - $15 million in 2022. This revenue forecast is slightly lower than previous guidance as the delivery of services on certain contracts is now expected to move from the fourth quarter of 2022 into the first quarter of 2023.

As previously disclosed, Sarcos’ monthly cash used in operating activities during the fourth quarter of 2022 will be higher than previous quarters. The Company

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EX-99.1

Exhibit 99.1

Sarcos Technology and Robotics Corporation Announces Second Quarter 2022 Financial Results

Initial production of commercial units of Guardian® XTTM teleoperated dexterous robotic system and Sapien 6M robotic system expected to commence by the end of 2022

Closed acquisition of Pittsburgh-based RE2, Inc. and made significant progress on integrating two highly experienced commercial robotics teams

STRC added to the Russell 2000 index of small cap stocks as part of the 2022 Russell indexes reconstitution

SALT LAKE CITY — August 9, 2022 — Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the development of highly dexterous robotic systems that augment humans to enhance productivity and safety, today announced financial results for the quarter ending June 30, 2022.

Recent highlights include:

• Announced the successful closing of the previously announced acquisition of RE2, Inc. (“RE2”)

• Hosted capital markets and media day to introduce the Sapien line and demonstrate the combined product line

• Sarcos Defense Awarded New Contract for Collaborative Sensing Platform by Air Force Research Laboratory

• Successfully assembled and tested a STARFISH Dexterous Underwater Robotic Gripper for the U.S. Navy

“The integration of the Pittsburgh team into the company is already paying significant dividends by bolstering our engineering expertise and broadening our potential customer base,” said Kiva Allgood, President and CEO, Sarcos. “The combined organization is quickly coming together and we are making great progress towards our commercialization and sales goals. We are also thrilled with the initial results we are seeing in field trials for our Guardian® XTTM and Sapien 6M units which are both receiving strong traction with potential customers across the aviation, shipyard, and vegetation management industries.”

Financial results

The discussion in this press release regarding Sarcos’ results of operations for the three months ended June 30, 2022 includes the financial results of RE2 for the period after the closing of the acquisition on April 25, 2022.

Second quarter total revenue was $3.0 million, an increase from $1.1 million during the second quarter of 2021, driven by the addition of revenue from projects and commercial sales from RE2 following the closing of the acquisition.

Second quarter total operating expenses were $32.0 million, compared to operating expenses of $8.8 million in the second quarter of 2021. 44% of this increase was related to higher stock-based compensation expense. Business combination expenses as well as additional operating expenses related to the acquisition of RE2, in addition to increased expenses related to public company compliance costs also contributed to higher general and administrative expenses.

Research and development expenses were 86.7% higher compared to the prior year period due to the addition of headcount and overhead related to the acquisition of RE2, as well as investments to develop and commercialize the

company’s Guardian®XO® industrial exoskeleton, Guardian XT teleoperated dexterous robotic system, and Sapien 6M robotic system.

Net loss was $23.1 million in the second quarter, compared to a net loss of $5.3 million in the second quarter of 2021, primarily as a result of the increase in stock-based compensation expense and the additional operational expenses related to the acquisition of RE2.

Excluding certain items, non-GAAP net loss was $17.5 million or ($0.12) non-GAAP net loss per diluted share in the second quarter compared to non-GAAP net loss of $7.2 million or ($0.07) non-GAAP net loss per diluted share in the same period of 2021. Non-GAAP net loss excludes the impact of stock-based compensation expense, gain on forgiveness of notes payable, changes in the value of the company’s warrant liability, and certain acquisition costs and tax benefits. A reconciliation of net loss to non-GAAP net loss is included at the end of this release.

Sarcos ended the second quarter with $73.3 million in unrestricted cash and cash equivalents on its balance sheet, in addition to $79.5 million of marketable securities.

Development outlook and financial guidance

In line with previous guidance, the Company has deployed units of the Guardian XT robotic system, as well as the Sapien 6M robotic system, with potential customers for mid-year field tests of aviation, shipyard and vegetation management use cases.

Sarcos continues to expect to commence initial production of commercial units of the Guardian XT robotic system by the end of 2022 for delivery to customers early in 2023. Following the acquisition of RE2, Sarcos also expects to commence initial production of commercial units of the Sapien 6M robotic system on the same timeframe.

As a result of significant supply chain constraints, Sarcos has made the decision to focus on the commercial development of the Guardian X

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Exhibit 99.1

Sarcos Technology and Robotics Corporation Announces First Quarter 2022 Financial Results

Announced acquisition of RE2, Inc.

Ended the first quarter with $199 million in unrestricted cash and cash equivalents

Initial production of commercial units of Guardian® XO® industrial exoskeleton and Guardian®XTTM teleoperated dexterous robotic system still expected to commence by the end of 2022

SALT LAKE CITY — May 11, 2022 — Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the development of highly dexterous robotic systems that augment humans to enhance productivity and safety, today announced financial results for the quarter ending March 31, 2022.

Recent highlights include:

• Announced the successful closing of the previously announced acquisition of RE2, Inc., bringing together two of the most experienced commercial robotics teams and nearly doubling the size of Sarcos’ engineering team

• RE2 announced a developmental partnership with JLG Industries, Inc. to integrate RE2 SapienTM robotic arm technology with JLG access equipment

• Carried out demonstrations of Guardian® XTTM highly dexterous teleoperated robot functionality to both government and commercial customers including the use of off-the-shelf grinding, buffering, and welding tools

“Our most recent key development was the announcement of our acquisition of RE2,” said Kiva Allgood, President and CEO, Sarcos. “A second development location in Pittsburgh, one of the nation’s leading robotics centers, as well as the addition of RE2’s world class engineering team will allow us to meet the needs of more customers and offer solutions to a wider range of use cases. The combination of RE2 and Sarcos is great news for our employees, partners, customers, and stockholders” said Allgood.

Financial results

Total revenue was $0.7 million in the first quarter, a decline from $1.8 million during the same period in 2021, driven by a focus on projects aligned with the company’s commercialization efforts and the timing of work efforts on different projects.

Total operating expenses for the first quarter were $26.4 million, compared to first quarter 2021 operating expenses of $7.0 million. 55% of this increase was related to higher stock-based compensation expense. Other general and administrative expenses also increased, primarily as a result of expenses related to public company compliance costs and expenses related to the acquisition of RE2.

Research and development expenses were higher compared to the prior year period due to increased headcount and overhead resulting from investments to develop and commercialize our Guardian XO industrial exoskeleton and Guardian XT teleoperated dexterous robotic system. These expenditures were focused on the recruitment of new team members, particularly in engineering and supply chain, and investments in manufacturing capabilities.

The first quarter 2022 net loss was $19.2 million, compared to a net loss of $5.2 million in the same period of the prior year, mainly due to the increase in stock-based compensation expense and the increase in other general and administrative and research and development expenses discussed previously.

Excluding certain items, first quarter non-GAAP net loss was $13.3 million or ($0.10) non-GAAP net loss per diluted share compared to first quarter 2021 non-GAAP net loss of $4.7 million or ($0.05) non-GAAP net loss per diluted share.

Non-GAAP net loss excludes the impact of stock-based compensation expense, changes in the value of our warrant liability, and certain acquisition costs. A reconciliation of net loss to non-GAAP net loss is included at the end of this release.

Sarcos ended the quarter with $199 million in unrestricted cash and cash equivalents on its balance sheet. The discussion in this press release regarding Sarcos’ results of operation for the three months ended March 31, 2022, does not include the financial results of RE2, as Sarcos had not acquired RE2 as of March 31, 2022.

Development outlook and financial guidance

In line with previous guidance, Sarcos continues to expect to commence initial production of commercial units of its Guardian XO industrial exoskeleton and Guardian XT robotic system by the end of 2022 for delivery to customers early in 2023.

Several demonstrations of the Guardian XT robot Beta units to partners and customers have taken place in Sarcos’ facility since the start of the year and the company continues to expect that Guardian XT robot Beta units will be placed with customers for field tests in mid-2022.

As previously announced, functionality testing of key elements of the first Beta Guardian XO industrial exoskeleton is under way and the company continues to expect that Guardian XO robot Beta units will be available for testing in the second half of 2022.

Excluding the impact of the RE2 acquisition, Sarcos continues to believe that its monthly

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Exhibit 99.1

Sarcos Technology and Robotics Corporation Announces Fourth Quarter and Full-year 2021 Financial Results

Ended 2021 with $217 million in unrestricted cash and cash equivalents

Completed assembly and began initial testing of the initial Guardian® XTTM “Beta” unit

Completed scheduled move into new headquarters in Salt Lake City

SALT LAKE CITY — March 29, 2022 — Sarcos Technology and Robotics Corporation (“Sarcos”) (NASDAQ: STRC and STRCW), a leader in the development of highly dexterous robotic systems that augment humans to enhance productivity and safety, today announced financial results for the quarter and full-year ended December 31, 2021.

Recent highlights include:

• Announced the planned acquisition of RE2 Robotics, an award-winning developer of intelligent mobile manipulation systems

• Started testing of the Guardian® XO® Beta unit functionality

• Appointed Kiva Allgood as new President and Chief Executive Officer

• Completed assembly and began testing the first Guardian® XTTM robotic avatar “Beta” unit

• New facility in Salt Lake City more than doubles footprint

“The fourth quarter was one of major developments for Sarcos” said Kiva Allgood, President and CEO. “The completion of our initial Guardian XT Beta unit on schedule and the successful move into our new headquarters were testament to the hard work and dedication of the team. I’m thrilled to have joined Sarcos at this pivotal time in our product evolution and I am delighted at the progress we have continued to make as we have started initial testing of key elements of our Guardian XO beta unit. We believe that the recently announced planned combination with RE2, upon consummation, will enable us to offer a wider range of products to customers and significantly bolster our team of robotics experts, which makes us even more excited for the future,” said Allgood.

Financial results

Fourth quarter total revenue was $1.0 million in 2021, compared to $3.4 million during the fourth quarter of 2020 driven by the timing of work efforts on different projects and a focus on projects aligned with our commercialization efforts. Full-year 2021 total revenue declined to $5.1 million from $8.8 million for the full-year of 2020 for the same reasons.

Total operating expenses for the fourth quarter were $28.6 million, an increase from the fourth quarter 2020 operating expenses of $7.3 million. The increase was primarily related to an increase in stock-based compensation expense and higher general and administrative expenses arising from the transition to life as a public company as well as an increase in engineering, production and supply chain headcount to prepare for the commercial production of our products. For the full-year 2021, total operating expenses increased by $56.3 million to $86.1 million, 73% of such increase was due to an increase in stock-based compensation expense, primarily attributed to a one-time equity award in March of 2021. The additional increase in operational expenses was focused on the commercialization of our flagship products, the Guardian XO and Guardian XT. Over the last year the company has made important investments in three key areas: 1) recruiting and hiring talent in engineering, production and supply chain; 2) being a public company; and 3) investments in foundational technologies and facilities to help it scale.

Fourth quarter 2021 net loss was $34.1 million, compared to a net loss of $3.9 million in the fourth quarter of the prior year, mainly due to the increase in stock-based compensation expense and the increased general and administrative

expenses. For the full-year 2021, net loss was $81.5 million, compared to $20.9 million in the prior year also primarily due to these increases in expenses.

Excluding certain items, fourth quarter non-GAAP net loss was $14.7 million or ($0.11) per diluted share. Full year non-GAAP net loss for 2021 was ($0.31) per diluted share. Reconciliation of net loss to non-GAAP net loss is included at the end of this release.

Sarcos ended the year with $217 million in unrestricted cash and cash equivalents on its balance sheet. An increase from $34 million at the end of 2020 due to the proceeds from the company’s business combination in September.

Development outlook and financial guidance

In line with previous guidance, Sarcos continues to expect to commence initial production of commercial units of both its Guardian XO exoskeleton and Guardian XT avatar robotic system by the end of 2022 for delivery to customers early in 2023.

As previously announced, the first Beta version of Sarcos’ XT units was completed at the end of 2021. The Beta unit improves on previous prototypes by including additional degrees of freedom in the wrist, upgraded software, more advanced end-effectors, and enhancements to the proprietary SenSuit™ motion capture controller. Demonstrations of the XT Beta units have already taken place in Sarcos’ f