ZenaTech (ZENA) Registration Filing summary

Company overview and business model

• Operates as an enterprise software technology company specializing in mission-critical cloud-based applications and smart hardware for diverse industries, with a growing focus on drone manufacturing, sales, and distribution.

• Core business includes software solutions for medical records, facility management, contact centers, safety and compliance, field service management, and law enforcement, delivered through multiple subsidiaries in the US, Canada, Germany, Ireland, and UAE.

• Drone business is being developed through subsidiaries in the US, Ireland, UAE, and Germany, with the ZenaDrone 1000 targeting agriculture, defense, mining, and infrastructure sectors.

• Revenue is currently generated primarily from software licensing, support, and consulting, with initial drone revenues from pilot programs and military contracts.

• The company has a history of growth through acquisitions, integrating acquired software businesses and leveraging their products for cross-industry expansion.

Financial performance and metrics

• For the six months ended June 30, 2024: revenue was $962,428 CAD, net loss was $377,466 CAD, and total assets were $19,317,619 CAD.

• For the year ended December 31, 2023: revenue was $1,827,740 CAD, net loss was $241,504 CAD, and total assets were $16,453,876 CAD.

• Revenue decreased 40% in 2023 compared to 2022, primarily due to reduced software sales and a focus on drone development.

• As of June 30, 2024, shareholders' equity was $7,798,528 CAD, with $9,237,865 CAD in long-term debt and $2,107,856 CAD in current liabilities.

• The company has a history of negative operating cash flow and relies on related party lines of credit and private placements for funding.

Use of proceeds and capital allocation

• No proceeds will be received from the direct listing; all shares sold will be by registered stockholders.

• Recent capital raised ($3 million USD in July 2024) was for general corporate and working capital purposes.

• Principal capital expenditures are focused on drone business development, including manufacturing facilities and product development, especially in the UAE.

• The company plans to use internally generated cash flow and available credit lines to fund ongoing operations and expansion.