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.

• Core business includes software development, sales, and distribution, with expansion into drone manufacturing, sales, and distribution.

• Subsidiaries provide solutions for medical records, facility management, contact centers, safety/compliance, field service, and law enforcement.

• Revenue is currently generated from software products; drone business is in pilot phase with initial contracts in place.

• Holds exclusive licenses for key technologies, including plant recognition and drone hardware/software, with perpetual royalty agreements.

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 $18,210,732.

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

• Revenue decreased 40% in 2023 compared to 2022, primarily due to reduced sales in certain subsidiaries.

• General and administrative expenses decreased by 33% in 2023 compared to 2022, reflecting cost-cutting and reduced programming/support fees.

• As of March 31, 2024, long-term debt was $8,902,139, and net working capital was $2,022,825.

Use of proceeds and capital allocation

• The company will not receive proceeds from the resale of shares by registered stockholders in the direct listing.

• Capital expenditures focus on product development and drone manufacturing, with recent investments in facilities and equipment in the UAE.

• Ongoing capital needs are expected for scaling drone production and expanding pilot programs.