SDR Drone, Inc. has taken a significant step in its growth strategy by entering into an engagement letter with Dawson James Securities, Inc. This partnership aims to facilitate a bridge financing and private placement, targeting gross proceeds of $2.5 million to $3 million. The decision to engage Dawson James underscores SDR Drone's commitment to securing necessary funding to advance its operations in the competitive aircraft industry.

Founded in Florida, SDR Drone, Inc. specializes in the manufacturing of aircraft, as indicated by its Standard Industrial Classification (SIC) code of 3721. The company trades under the ticker symbol SDCO on the OTC exchange. This latest move comes as part of a series of filings, including a recent 8-K on November 4, 2026, and another on October 27, 2026, indicating an active period for the company.

The engagement letter, filed with the SEC on November 13, 2026, outlines the terms of the agreement between SDR Drone and Dawson James. The letter states that Dawson James will act as the lead placement agent on a best-efforts, non-exclusive basis for the proposed offering. Notably, the agreement does not obligate Dawson James to purchase any securities or guarantee the successful placement of any securities, allowing SDR Drone the flexibility to engage other advisors as needed.

The material terms of the engagement include a non-refundable retainer of $50,000 to be paid to Dawson James within five business days of execution. Additionally, Dawson James will receive a placement agent fee of 7% of the gross proceeds from investors it introduces to the company. The engagement period is set for six months, with the option for either party to terminate the agreement with written notice after three months.

Moreover, the agreement includes provisions for the issuance of warrants to Dawson James, allowing them to purchase shares of common stock equal to 3% of the total securities issued to investors they introduce. This structure incentivizes Dawson James to maximize the offering's success.

SDR Drone's engagement with Dawson James comes at a time when the aircraft manufacturing sector is witnessing increased interest and investment. The company aims to utilize the funds raised through this offering to enhance its operations and potentially expand its market presence. This move may also prompt competitors within the aircraft industry to consider similar funding strategies to maintain their competitive edge.

Looking ahead, SDR Drone is expected to file a registration statement on Form S-1 to cover the resale of the securities sold in the offering within 45 days after the closing. This step is crucial for ensuring compliance with regulatory requirements and facilitating investor confidence.

In summary, SDR Drone, Inc.'s recent engagement with Dawson James Securities marks a pivotal moment for the company as it seeks to secure essential funding for its growth initiatives. As the aircraft industry continues to evolve, this move may set a precedent for other companies in the sector to follow suit.