• Commenced durability testing for AU4 engines, supported by upgraded instrumentation and analytics
• Reached design milestone for novel engine development contract with ADF, awarded $450,000 second phase
• Launched pilot production batch of 25 micro turbine engines to validate designs and support early sales

During the quarter, Aurora Labs' micro gas turbine program transitioned from development to pre-production, with the AU4 engine undergoing deep instrumentation and validation ahead of long-duration durability testing. This critical milestone supports certification under Military Standards. The company also reached a design freeze for the initial prototype of a next-generation propulsion system under an ADF contract, with prototype assembly and first bench testing commencing. Aurora's participation at DSEI 2025 in London raised international awareness of its sovereign propulsion capability, generating sales opportunities. The company also secured a $544,333 Defense Industry Development Grant to fund new CNC equipment for vertical integration of its propulsion production line. Subsequent to the quarter, Aurora announced a $5.5 million share placement to accelerate the commercialization of its defense propulsion programs, strengthening its balance sheet and underpinning the transition from advanced additive manufacturing into a full-scale propulsion systems manufacturer.

The focus for the coming quarter includes commencing AU4 durability testing, ongoing engineering design development for the novel ADF engine project, preparing for the first AS9100D audit, advancing AS9100D documentation and implementation across manufacturing lines, finalizing CNC installation and operator training, and showcasing propulsion systems to customers in collaboration with Sovereign Propulsion Systems.