FJET — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-19

• Airborne Testbed for Hypersonic Research and Development (R&D) and Test and Evaluation (T&E) Test Bed for commercial, academic, civil and government clients;

• While our central business activities are focused on the foregoing, we still provide specialized pilot-training, payload preparation and integration, and flight-testing services since we have the F-104s and capability and authorization to perform such training and testing services.

• On May 27, 2026, we completed a private placement of 5,223,879 Common Stock at a price of $3.35 per share to certain institutional investors, for aggregate gross proceeds of $17,499,995. We intend to use the net proceeds from the private placement to support operational expansion, infrastructure dev…

• Current Status of Aerovision Aircraft Acquisition Agreement and Litigation Against Aerovision

• On August 10, 2026, the SFII's legal counsel filed a complaint in the 18th Judicial Circuit in and for Brevard County, Florida (case number not yet assigned) against Hunter Daniels d/b/a Aerovision, Hunter Daniels, and Mark Daniels , alleging: (1) breach of contract against Aerovision due to its com…

Text removed vs the prior filing · source: 10-Q · 2026-05-20

• Research and Development (R&D) and Test and Evaluation (T&E) Test Bed;

• On February 19, 2026, our Board of Directors received by email a resignation letter pursuant to which Rick Svetkoff resigned as the Chief Executive Officer, President, Chairman and director of the Company. In his resignation letter, Mr. Svetkoff indicated that his disagreement with the Board and the…

• Also, on February 19, 2026, the Board received by email a resignation letter from Brenda Svetkoff, the spouse of Mr. Svetkoff, pursuant to which Mrs. Svetkoff resigned as the Secretary of the Company. In her resignation letter, Mrs. Svetkoff indicates that her disagreement with the Board and the Com…

• Copies of the resignation letters received from Mr. and Mrs. Svetkoff were included as Exhibits 17.1 and 17.2, respectively, to the Company's current report on Form 8-K, as filed with the SEC on February 25, 2026.

• The Company respectfully disagrees with the substance of and the assertions and characterizations that are contained in the resignation letters of Mr. Svetkoff and Mrs. Svetkoff.

Text added vs the prior filing · source: 10-Q · 2026-08-19

• The Company has identified the following material weaknesses:

• • Insufficient segregation of duties, oversight of work performed and lack of compensating controls in our finance and accounting functions, including, without limitation, the processing, review and authorization of all routine, non-routine, and related party transactions, due to limited personnel a…

• • Lack of controls around complex accounting of significant transactions, inclusive of financial instruments.

• During the quarter ended June 30, 2026, the Company is in the process of implementing the aforementioned controls and procedures, subject to personnel and resource availability. Certain measures, such as adopting of banking resolutions and policies over account opening have been implemented, but eff…

Text removed vs the prior filing · source: 10-Q · 2026-05-20

• During the year ended December 31, 2024, a material weakness was identified in our financial reporting controls over complex debt accounting.

• During the year ended December 31, 2025, seven material weaknesses were identified:

• Management’s override of controls due to lack of segregation of duties and insufficiently robust checks and balances;

• The Company did not obtain board approval for all related party transactions;

• During the three months ended March 31, 2026, a material weakness was identified in our financial reporting controls over the accounting for the unauthorized distributions made by Rick Svetkoff.

Text added vs the prior filing · source: 10-Q · 2026-08-19

• On June 10, 2026, Starfighters filed a motion to dismiss the complaint filed by Mountain CI. Following the motion to dismiss, Mountain CI filed an amended complaint on June 16, 2026, asserting claims for money lent and unjust enrichment. Starfighters' litigation counsel filed an answer to the claims…

• On August 10, 2026, the SFII's legal counsel filed a complaint in the 18th Judicial Circuit in and for Brevard County, Florida (case number not yet assigned) against Hunter Daniels d/b/a Aerovision, Hunter Daniels, and Mark Daniels , alleging: (1) breach of contract against Aerovision due to its com…