This article is based on an official press release from Dynamic Aerospace Systems.

Dynamic Aerospace Systems Ramps Up Production Following FCC Ban on Foreign Drones

Dynamic Aerospace Systems (DAS), formerly known as BrooQLy, Inc., announced on December 29, 2025, that it is accelerating its strategic expansion plans to meet a surge in demand for American-made Unmanned Aerial Vehicles (UAVs). This announcement follows a significant regulatory shift in the United States, specifically the Federal Communications Commission’s (FCC) recent implementation of the National Defense Authorization Act (NDAA) Section 1709.

According to the company’s press release, the FCC’s Public Notice (DA 25-1086), issued on December 22, 2025, effectively prohibits new equipment authorizations for drones and critical components produced in “covered” foreign countries. DAS states that this regulatory action creates an immediate market vacuum, necessitating a rapid shift toward domestic alternatives for both government and commercial sectors.

In a statement regarding the new regulations, DAS leadership emphasized their readiness to fill the gap left by restricted foreign manufacturers.

“We are fully prepared to meet the heightened global demand for secure, American-built drone solutions,” the company stated in its release.

Regulatory Context: The Impact of NDAA Section 1709

The catalyst for DAS’s recent announcement is the enforcement of Section 1709 of the FY25 National Defense Authorization Act. As outlined in the company’s statement and supporting regulatory documents, this legislation adds specific foreign-produced UAVs and their critical components to the FCC’s “Covered List.”

This designation prevents the FCC from issuing new authorizations for these devices, effectively blocking new models from major foreign competitors, most notably those based in China, from entering the U.S. market. DAS publicly endorsed this move, citing national security concerns such as data exfiltration and supply chain vulnerabilities associated with foreign-made technology.

Supply Chain Sovereignty

DAS highlighted its commitment to “supply chain sovereignty,” a concept that ensures all critical components are sourced domestically or from allied nations. The company asserts that its manufacturing processes in Ann Arbor, Michigan, are designed to eliminate the risks associated with foreign reliance, positioning their products as compliant, “Blue UAS” alternatives suitable for sensitive government operations.

The “Fortis Class” and Operational Capabilities

To address the requirements of the new regulatory landscape, DAS is promoting its “Fortis Class” of aircraft. According to company disclosures, this portfolio is designed for dual-use applications, serving both military defense needs and commercial logistics.

The Fortis Class includes three primary platforms:

• Overwatch (Hybrid VTOL): A long-range ISR (Intelligence, Surveillance, and Reconnaissance) and logistics drone featuring gas-electric hybrid propulsion. It is designed for endurance missions such as border patrol.
• Sentinel (Electric Multi-copter): Tailored for urban surveillance and last-mile delivery, this unit utilizes a unique “battery-integrated airframe” to maximize flight time.
• Breacher (Tactical Multi-copter): A ruggedized drone built for close-quarters combat (CQB) and hazardous indoor inspections.

The company confirmed in its release that it is expanding manufacturing capacity at its Ann Arbor facility to handle the expected volume increase resulting from the foreign technology ban.

Strategic Partnerships and Market Expansion

Beyond manufacturing, DAS detailed several strategic moves intended to secure its foothold in the global market. The press release and recent company filings point to partnerships aimed at integrating DAS hardware into established logistics networks.

Key developments include:

• Government Sales: A Memorandum of Understanding (MOU) with Potomac River Group (PRG), a GSA-listed vendor, to facilitate direct sales to U.S. government agencies.
• International Logistics: An agreement with Noon Fulfillment to integrate DAS drones into logistics networks in the Middle East, and a partnership with Drops Smart Hubs to develop aerial infrastructure in Greece.

AirPro News Analysis

The timing of Dynamic Aerospace Systems’ announcement is critical. By issuing this release just one week after the FCC’s December 22 notice, DAS is aggressively positioning itself to capture investor and customer attention during a period of industry disruption. The “import substitution” narrative is central to their strategy; with Chinese incumbents effectively barred from introducing new models, the U.S. market is undergoing a forced pivot toward domestic suppliers.

However, the challenge for DAS, and the broader U.S. drone industrial base, will be scaling production to match the volume and price points previously offered by foreign competitors. While the “Fortis Class” offers compliant alternatives, the company’s ability to execute on its manufacturing expansion in Ann Arbor will be the true test of its “readiness” claim.

Frequently Asked Questions

What is the significance of the FCC’s December 22 Public Notice?
The notice implements Section 1709 of the FY25 NDAA, which bans the FCC from authorizing new drones or critical components from specific foreign countries, effectively blocking new Chinese drone models from the U.S. market.

What is Dynamic Aerospace Systems?
Dynamic Aerospace Systems (DAS) is a U.S.-based drone manufacturer headquartered in Ann Arbor, Michigan. The company was formerly known as BrooQLy, Inc. (OTCQB: BRQL).

What drones does DAS manufacture?
DAS manufactures the “Fortis Class” of UAVs, which includes the Overwatch (hybrid VTOL), Sentinel (urban surveillance), and Breacher (tactical) models.

Sources

• Dynamic Aerospace Systems Press Release
• FCC Public Notice DA 25-1086 (Context)

This article summarizes reporting by Reuters and official announcements from the Civil Aviation Administration of China.

China Passes Revised Aviation Law to Regulate Drones and Low-Altitude Economy

On Saturday, December 27, 2025, China’s top legislature passed a comprehensive revision to the country’s Civil Aviation Law, formally incorporating unmanned aircraft into its primary aviation legislation for the first time. According to reporting by Reuters and state media, the move is designed to regulate the booming drone sector and legitimize the “low-altitude economy.”

The revised law, which is scheduled to take effect on July 1, 2026, introduces strict safety protocols, including mandatory airworthiness certifications for larger aircraft and technical enforcement mechanisms for registration. As reported by state media, the legislation aims to balance safety concerns regarding “black flying” (illegal flights) with the economic potential of aerial logistics and urban air mobility.

Formalizing the “Low-Altitude Economy”

The revision comes as Beijing prioritizes the “low-altitude economy,” a sector encompassing drone delivery, aerial tourism, and flying taxis, as a critical engine for future economic growth. According to industry data cited in reports, the sector is projected to expand significantly in the coming years.

• Market Growth: Projections estimate the sector will grow from 1.5 trillion yuan ($210 billion) in 2025 to over 2 trillion yuan ($280 billion) by 2030.
• Logistics Integration: Major domestic players such as JD.com and Meituan have heavily invested in drone delivery networks. In 2024, drone logistics reportedly accounted for 2.7 million package deliveries across China.

By establishing a clear legal framework, authorities aim to provide the regulatory certainty required for companies like SF Express and JD Logistics to scale operations from pilot zones to broader commercial networks.

Key Regulatory Provisions

The revised law creates a tiered framework based on the risk profile and size of the aircraft. According to the text of the legislation passed by the Standing Committee of the National People’s Congress, regulations will vary significantly between hobbyist devices and commercial-aircraft.

Airworthiness and Exemptions

Under the new rules, entities involved in the design, production, and operation of medium and large civil unmanned aircraft must obtain airworthiness certification from the Civil Aviation Administration of China (CAAC). However, exemptions have been carved out for the consumer market. Micro and light drones, typically under 250g and 4kg respectively, are exempt from airworthiness certification, though they remain subject to operational restrictions.

The “Kill Switch” and Real-Name Registration

Building on previous interim rules, the law enforces a strict real-name registration system backed by technical mandates. Drones must now be technically incapable of taking off unless they have been activated and registered. This requirement effectively functions as a “kill switch” for non-compliant hardware.

Additionally, the law mandates real-time data transmission. During flight, drones must continuously transmit identification, location, and status data to authorities, facilitating a centralized surveillance network for low-altitude airspace.

Airport Safety Measures

To address the global issue of airport disruptions, the law explicitly prohibits activities that interfere with the “airport electromagnetic environment.” This includes a strict ban on laser devices and signal-jamming equipment near airfields. Furthermore, civil airports are now legally required to possess capabilities to detect and neutralize unauthorized unmanned aerial vehicles.

Consumer Rights in Commercial Aviation

Beyond the drone sector, the revised Civil Aviation Law also strengthens protections for passengers on traditional commercial-aircraft flights. The legislation standardizes compensation responsibilities for both domestic and international carriers.

Airlines are now mandated to provide “appropriate measures,” such as care or compensation, for delays and cancellations caused by internal factors, including maintenance issues or crew scheduling. The law also requires carriers to inform passengers of the specific reasons for delays in a timely manner, improving information transparency.

AirPro News Analysis

The passage of this law marks a significant divergence between Chinese and Western regulatory philosophies regarding airspace management. While the United States (via the FAA) and the European Union focus on Remote ID for local identification and safety, China is implementing a highly centralized, networked system.

The requirement for real-time data transmission and the technical ability to ground unregistered drones suggests a system where the state maintains granular visibility and control over low-altitude traffic. For global manufacturers like DJI, this creates a bifurcated compliance landscape: one set of firmware and data protocols for the domestic Chinese market, and another for international exports.

Furthermore, the explicit inclusion of “medium and large” aircraft certification pathways is a regulatory win for eVTOL (electric vertical takeoff and landing) companies like EHang. By clarifying the path to airworthiness, the law removes ambiguity that has previously slowed the commercialization of autonomous passenger-carrying vehicles.

Frequently Asked Questions

When does the new law take effect?
The revised Civil Aviation Law will officially come into force on July 1, 2026.

Will hobbyist drones require certification?
Micro and light drones (generally under 250g and 4kg) are exempt from the complex airworthiness certification process required for larger commercial-aircraft, but they must still adhere to real-name registration and operational rules.

What happens if a drone is not registered?
Under the new technical mandates, unregistered drones will be technically restricted from taking off. Manufacturers must ensure their products require activation linked to a real-name registration before flight is possible.

Sources: Reuters, Civil Aviation Administration of China (CAAC), Xinhua News Agency

This article is based on an official press release and company statements from XTI Aerospace.

XTI Aerospace and Drones Nerds Form Strategic Alliance to Secure U.S. Drone Supply Chain

In a significant move to reshape the American commercial drone market, XTI Aerospace (NASDAQ: XTIA) has announced the acquisition of Drone Nerds, a leading domestic drone distributor. The transaction, valued at approximately $40 million, was accompanied by a strategic $25 million investment from component manufacturer Unusual Machines (NYSE American: UMAC). This tripartite alliance aims to establish a vertically integrated, U.S.-based aerospace ecosystem capable of filling the void left by tightening federal regulations on foreign drone technology.

According to the company’s official announcement, this partnership is explicitly positioned to lead the “next phase” of the industry, a transition from reliance on foreign hardware toward a secure, sovereign supply chain. The deal comes amid a rapidly shifting regulatory landscape, following a June 2025 Executive Order prioritizing domestic drones and a December 2025 FCC deadline that effectively halts new authorizations for major foreign competitors.

Structuring a Domestic “Vertical Economy”

The consolidation brings together three distinct players to address different layers of the unmanned aerial systems (UAS) market. XTI Aerospace, known for developing the TriFan 600 vertical takeoff and landing (VTOL) aircraft, will serve as the parent company and visionary lead. By acquiring Drone Nerds, XTI gains immediate access to an established revenue engine; Drone Nerds reported revenues exceeding $100 million in 2024 and maintains a massive footprint in enterprise fleet management and service.

Simultaneously, the $25 million investment from Unusual Machines secures a critical supply of National Defense Authorization Act (NDAA)-compliant components. Unusual Machines, which operates brands like Fat Shark and Rotor Riot, will provide the motors, controllers, and other hardware necessary to build trusted platforms.

In a statement regarding the partnership’s potential, Allan Evans, CEO of Unusual Machines, emphasized the magnitude of the market shift:

“Drone Nerds has an unprecedented opportunity to define the entire domestic drone landscape over the next few years as the U.S. intensifies its ban on Chinese drone companies.”

Financial and Operational Details

The acquisition of Drone Nerds was settled for approximately $40 million through a combination of cash, notes, and equity. This structure allows XTI to integrate Drone Nerds’ sales channels immediately while preserving capital for the continued development of its larger Advanced Air Mobility (AAM) projects. The partnership is designed to be symbiotic: Drone Nerds provides the “boots on the ground” sales infrastructure, Unusual Machines supplies the compliant hardware, and XTI Aerospace provides the capital and broader strategic direction.

Regulatory Catalysts Driving the Merger

The timing of this acquisition, closing in November 2025, appears strategically aligned with major federal actions taken late in the year. The industry has been reacting to the “Unleashing American Drone Dominance” Executive Order issued in June 2025, which mandated that federal agencies prioritize U.S.-manufactured systems and identify supply chain risks associated with “covered foreign entities.”

Pressure intensified on December 23, 2025, with the expiration of a critical FCC deadline set by the 2025 NDAA. The failure of key foreign manufacturers, including DJI, to clear a national security audit resulted in their addition to the FCC’s “Covered List.” This action effectively bans the authorization of new foreign drone models in the United States, severing the supply chain for next-generation foreign hardware.

AirPro News Analysis

We view this consolidation as a direct response to the “supply vacuum” created by the FCC’s recent rulings. For years, the commercial sector, spanning agriculture, public safety, and infrastructure inspection, relied on DJI for an estimated 70-80% of its hardware. With new foreign models now blocked from entering the U.S. market, enterprise customers face an urgent need for compliant alternatives.

By integrating Drone Nerds, XTI Aerospace is not merely buying a distributor; they are acquiring the primary migration path for thousands of enterprise clients who must now transition away from Chinese platforms. If the alliance can successfully leverage Unusual Machines’ components to produce competitive domestic airframes, they are well-positioned to capture significant market share in 2026 and beyond.

Future Outlook: The TriFan 600 and Beyond

While the immediate focus is on the small UAS market, XTI Aerospace continues to advance its flagship project, the TriFan 600. This fixed-wing VTOL aircraft represents the company’s long-term vision for the “Vertical Economy,” where vertical flight transforms logistics and regional transport. The revenue and stability provided by the Drone Nerds acquisition are expected to support the capital-intensive development of the TriFan 600, bridging the gap between today’s drone sales and tomorrow’s heavy-lift VTOL operations.

According to XTI’s press release:

“The acquisition… brings Drone Nerds’ significant revenue base… into XTI’s growing aerospace ecosystem. [It] positions XTI to scale rapidly within the emerging Vertical Economy.”

Frequently Asked Questions

What is the value of the XTI Aerospace and Drone Nerds deal?

XTI Aerospace acquired Drone Nerds for approximately $40 million in a mix of cash, notes, and equity. Additionally, Unusual Machines invested $25 million into XTI.

How does this impact current DJI users?

While existing fleets remain legal to operate, the recent FCC ruling prevents the authorization of new foreign drone models. This partnership aims to provide compliant, U.S.-made alternatives for future fleet upgrades.

What is the role of Unusual Machines in this partnership?

Unusual Machines serves as the domestic manufacturing partner, supplying NDAA-compliant components (such as motors and controllers) to replace banned foreign hardware in the supply chain.

Sources

• XTI Aerospace