Amended quarterly report

Summary

This summary has not passed every source check. Confirm figures against the original document.

• The amendment expands notes on segment reporting, property, plant and equipment, the Aerovision aircraft deposits, and correction of immaterial errors in response to comments from the SEC Corporation Finance Division, and does not change any previously reported financial results.
• The Company recorded a net loss of $4,269,131 for the three months ended March 31, 2026 compared to $2,653,107 for the same period in 2025, and had an accumulated deficit of $37,699,562.
• Management concluded disclosure controls and procedures were not effective and identified a new material weakness over accounting for unauthorized distributions made by former CEO Rick Svetkoff, on top of seven material weaknesses identified during the year ended December 31, 2025.
• The Company contends Rick Svetkoff made unauthorized withdrawals and transfers totaling $1,921,159 from SFII accounts, of which $395,033 was recorded as a loss from misappropriation of assets and $1,526,126 as due from shareholder.
• On April 9, 2026 Rick Svetkoff filed a complaint in Brevard County, Florida seeking damages alleged to exceed $26,000,000 against the Company and board members.
• The financial statements were prepared on a going concern basis with substantial doubt, as the Company held cash of $1,402,025 at March 31, 2026 and had bank-account restrictions of $1,188,044 at Flagship Bank and $210,532 at Regions Bank.

Why it mattersThe amendment adds required note disclosures and details a leadership dispute, alleged misappropriation of funds, restricted bank accounts, and going concern doubt at the F-104 air-launch developer. These affect the Company's cash position and control environment while it works toward its first space launch.