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.

• Revenue streams include software licensing, SaaS subscriptions, support, and pilot drone programs, with operations in the US, Canada, Germany, Ireland, and UAE.

• Core software products serve medical records, facility management, contact centers, safety/compliance, field service, and law enforcement sectors; drone business targets agriculture, defense, and industrial applications.

• Growth strategy includes organic development and acquisitions, leveraging proprietary and licensed technology, and expanding into new markets through subsidiaries.

Financial performance and metrics

• For the six months ended June 30, 2024: revenue was $962,428, net loss was $377,466, and total assets were $19.3 million.

• Fiscal year 2023: revenue was $1.83 million, net loss was $241,504, and shareholders' equity was $7.3 million.

• Revenue declined 40% in 2023 compared to 2022, primarily due to lower sales in certain segments and a focus on drone development.

• As of June 30, 2024, long-term debt was $9.2 million, with $809,689 in convertible debt potentially dilutive.

• Cash position as of June 30, 2024 was $30,569, with working capital of $1.17 million.

Use of proceeds and capital allocation

• No proceeds will be received from the direct listing; recent $3 million unit offering in July 2024 was for general corporate and working capital purposes.

• Capital expenditures focus on drone business expansion, including manufacturing facilities and product development, especially in the UAE.

• Ongoing investments in R&D, acquisitions, and scaling drone production; advances to affiliates for future services total $8.95 million as of June 30, 2024.