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 integrated smart hardware for diverse industries, with a growing focus on drone manufacturing, sales, and distribution.

• Revenue streams include software licensing, SaaS, support, and maintenance, with expansion into unmanned vehicle systems (drones) targeting agriculture, defense, infrastructure, and mining sectors.

• The company operates through multiple subsidiaries in the US, Canada, Germany, Ireland, and UAE, with 11 employees and 45 contractors via a management agreement with Epazz.

• Core software products serve medical records, facility management, contact centers, safety/compliance, field service, and law enforcement, with new products in smart farming and plant recognition under development.

• The drone business is being commercialized through pilot programs, with plans to convert pilot customers into paying customers and expand manufacturing capacity.

Financial performance and metrics

• For the three months ended March 31, 2024: revenue was $591,379, net loss was $120,924, and total assets were $18.2 million.

• For the year ended December 31, 2023: revenue was $1.83 million, net loss was $241,504, and total liabilities were $9.13 million.

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

• Working capital improved to $2.02 million as of March 31, 2024, from $1.49 million at year-end 2023.

• Long-term debt increased to $8.9 million as of March 31, 2024, with major lines of credit from related parties and convertible features.

Use of proceeds and capital allocation

• The company will not receive proceeds from the direct listing; all proceeds from share sales will go to registered stockholders.

• Capital expenditures in recent periods have focused on product development and drone manufacturing facilities, especially in the UAE.

• Available funds and lines of credit are expected to support operations and drone production for the next twelve months.