So in a battle where there are enemy NPCs and friendly supporting you, but not squaded, how do you differentiate the initiative slots?

Is it all just a big bunch of NPC slots the the GM decides the order

Do you make a third category of slot for the allies,

Or do you roll for them as another PC slot and let the players decide how and when their allies act

I roll friendly NPC slots along with PCs, unless it's a three (or more) way, then you can have as many separate sides as you need.

I roll friendly NPC slots along with PCs, unless it's a three (or more) way, then you can have as many separate sides as you need.

Similar. I usually assign the NPC to one of the players, usually one with a story connection to the NPC, or one with leadership/inspiration skills. The Adversary decks are handy for this. The NPC goes immediately after that player's character, and generally attacks the same target or group, unless they have a specific function (medic) that dictates otherwise. I let the player make the roll so that I can focus on taking notes.

Whatever keeps things moving. I don't as there's one size fits all, but I dont want things bogging down. Generally I just lump minions with minions, rival with rivals, etc.

Direct allys use the same row as the PCs (and the players may choose who takes which slot.)

Enemys have theire own

a third Party gets theire own row

Example (3 PCs playing)

1. Row 2. Row 3.Row

PCs Empire Rebelalliance

+ 3 Smuggler Firends

3.0

2.3

2.2 2.2

2.1 2.1

2.0

1.3

1.1 1.1

0.3

0.2

0.1 0.1 0.1

I make:

Friendly NPC's under the control of PC's add another PC slot

Friendly NPC's not under PC control (eg a Mentor) are an NPC slot on their own team (a 3rd faction)

Enemy/opposing NPC's are the normal NPC Initiative slots