XTEND said newly announced U.S. tariffs of up to 100% on imported drones and certain components reinforce its strategy of building a domestic, NDAA-compliant drone manufacturing base. President Trump signed a proclamation this week imposing a 100% tariff on drones weighing more than 25 kilograms or equipped with thermal imaging, as well as their docking stations and critical components, while smaller drones without security-sensitive features and other components face a 25% tariff, with most measures taking effect within 21 days. The company said its expanding XFAB facility in Tampa, Florida, along with relationships with U.S.-based manufacturers, supports plans to scale production as the United States seeks to reduce reliance on foreign-made, particularly Chinese-made, drone technology. XTEND also linked the policy shift to its pending all-stock combination with JFB Construction Holdings, which is expected to close on September 1, 2026, subject to customary conditions, after the SEC (U.S. securities regulator) declared the Form S-4 effective on August 11, 2026.