Welcome back. Next, we have ZenaTech traded on the Nasdaq under the symbol ZENA. It's a technology company specializing in AI drone, Drone-as-a-Service, enterprise SaaS and quantum computing solutions for mission-critical business applications. Happy to welcome Vice President, Corporate Development, Linda Montgomery, and CFO, James Sherman. Welcome to the conference today. We're very much looking forward to your presentation. Whenever you're ready.
Well, thank you very much. Thank you very much for having us. We'll take you through our presentation, and then we'd love to answer a few questions after we're done. As indicated, we design and manufacture AI multifunction autonomous drones. We also have a Drone-as-a-Service business area. In addition, we have a software and enterprise SaaS software business, which is a big strength that we do bring to the drone industry, and we have recurring revenue and customers in that as well as developing our drone solutions which we intend to sell to business and to government and business and commercial I should say defense customers through ZenaDrone, which is our drone company.
A lot of our drones are at the pilot stages now. Our Drone-as-a-Service business is one that's we've been rolling out for just over 1 year now, and I'll tell you more about that. Next slide. Next slide, please. There we go. What we've been doing is we've been acquiring a lot of companies by acquisition and basically land survey companies, power washing companies that do inspection services. What we've been doing is taking these low-tech companies and combining the precision and speed of drones to them to basically innovate and improve these services is the idea behind that. I'll tell you more about our capital structure.
We have our founder and CEO owns a large percentage of our company, and we're also a lot of our debt is owned. We've been funding our company through convertible debt we are management. We have I guess we've got sort of a smaller number of people. Next. Here's our cap structure. Next. We have, I mentioned 3 parts of our business. ZenaDrone is our drone company, Drone-as-a-Service, we have 11 different brands on the software side. Everything from compliance software to field services management software on that side.
We've actually been around since 2017, 2018. Our software business has actually enabled us to kind of be growing our drone business along the way. Also to kind of bring us to now, where we really made the transition last year from software company to a drone company. Next. Here's our revenue models through our, as I mentioned, recurring revenue, lots of customers we had for a long time on the SaaS side. Drone-as-a-Service, we have been acquiring companies since the beginning of 2025. We now have 23 between acquired companies and corporate stores for Drone-as-a-Service. Our drone solutions are really at the...
We've been through many iterations of our of our drones and we are at the at the pilot stage with a lot of them now. Next. We do sell our drones directly to customers, whereas our Drone-as-a-Service is more providing a turnkey solution where it's a subscription service, and you pay for usage, and we come and do the complete the complete service for you, whether it be land surveys using drones or power washing or power line inspections, whatnot. Our revenue in 2024 was $2 million.
That was largely from our software business. Our most recent results for the end of Q3 last year was that our revenue had jumped, in fact, 1,225% on the quarter to $4.35 million for third quarter. That brings us to almost $8 million for the first three quarters of 2025. As I mentioned, we've really made the transition to most, I guess over 80% of our business coming from the drone sector now. We've made a lot of progress on other sides of our business as well, I guess over the course of the last year and into this year. Next slide.
I'll start off, first of all, telling you a little bit about business. We are developing NDAA compliant drones. Our full supply chain is NDAA compliant. We manufacture actually in three different area centers, different facilities in the world. As far as our go to market strategy is concerned, we are focused on providing drone services for the Department of War and other U.S. Defense Agencies. We're just at the stage now where we are engaging with program managers across the U.S. government. We are
We are focused on trying to find those opportunities for our drones, and we've been doing that since last summer. There's a procurement cycle, and the good news is in the drone industry that these procurement cycles are changing, and they're not, you know, they're not as onerous as they used to be because drones have really changed the requirements and, of course, the huge need for drones is such that we're seeing a lot of changes happening there and changes in even getting the certifications we need which we're focused on.
We need to have Green UAS and Blue UAS certification, which is a cybersecurity, and supply chain documentation type of certification to sell our drones to the military. We've started that process for all of our drones. It takes a number of months to get these, but we're very much in the process of doing that so that we can sell to U.S. Defense Agencies. We have a lot of initiatives going on. We have an R&D center, and they're certainly working on a lot of projects around our the next generation of our drones.
We did an announcement today of a quantum navigation system is working on, and that will enable our drones to operate in environments where there's not GPS or there's not satellite. That's just one example and various other things that our R&D group are focused on around drone swarms and quantum computing and the next generation. We have a facility that we launched a while ago called a focus, I guess, a hub in the United States in Baton Rouge, Louisiana, called Zena AI. We are going to be focused on advanced applications for the military at that facility.
We're just in the process of bringing teams on board there to get started on that work. All of our drones will be manufactured in the U.S. for the U.S. Defense. We have a facility in near Phoenix, Arizona, in Mesa, Arizona, actually, where we are in the process of developing a manufacturing and assembly facility for U.S. and U.S. Defense manufacturing. Next. I don't need to tell anyone how quickly the drone industry is growing. Certainly the need for American-made drones. We know that Chinese drones, as of last December, the FAA put out an update saying that these are banned. It's certainly...
We're at a point in time right now where there are great opportunities for American-made drones and drone makers. You know, we're seeing so many much technological advancements that are going on. We're seeing, you know, the FAA regulations like beyond visual line of sight. That regulation, I believe we're expecting this year sometime. Procurement is certainly getting to be faster in that. That it's going to be faster to, like, we can sell our drones directly to frontline commanders is part of some of these recent changes that have happened.
We've seen a lot of policy directives that have been very, very positive to our business. Could I have the next slide, please? Right. We're a pretty global company. For a smaller company, I mentioned, we manufacture in three different places. Right now, our drones come from a facility near Dubai, and we've had that facility for over three years now. We also have Spider Vision Sensors, which is in Taiwan. That's where we manufacture our component parts, like such as PCB boards, and cameras and sensors. All three of those facilities are growing. We just added more space to our facility in Dubai. Taiwan is just moving into a brand-new facility.
You know, the teams are all growing there also. In addition, we've done a number of acquisitions that have given us a lot of new in the U.S. area, and we operate in Europe also. Next. Right. This is the ZenaDrone 1000. This is our flagship drone for defense. It's a medium-sized heavy cargo drone, where that will be this drone for ISR applications, inspection, surveillance, reconnaissance. It's also precision agriculture is one that we're doing with this drone and working on a gas version, excuse me, of this drone for border patrol types of applications. We've already done paid trials with the Navy and the Air Force. Next slide, please.
This is our IQ series. The Nano is the smallest one you see there. That's the one that's an indoor drone. We use that for inventory management and indoor security. It reads the barcodes and takes inventory. The IQ Square is the one we use for visual line of sight in inspections outdoors. Next. Next slide, please. This is our IQ Quad. We've recently announced this one. This is our drone that will be used for land surveys. It's equipped to carry different sensors and cameras. Like all of our drones, they're the multifunction AI drones. This one is we're currently rolling this out to our Drone-as-a-Service locations in the U.S. and around the world. Next, please.
Agriculture, government defense, warehouse logistics, land surveys, these are some of the applications we do right now. Next slide, please. Also, in the future, we don't wanna stop there. We are looking at, you know, oil and gas mining, and there's a lot of different other verticals. We're very careful of the verticals and the places that we pick for our, our drones to make sure that we are, you know, we're optimizing the market opportunity and the, I guess the right, the right, making sure it's the right focus for our drones. Next, please. Right. Our Drone-as-a-Service business. As mentioned, what we're doing is acquiring these low-tech companies that where we can combine our drones.
We started with land survey engineering companies. We've acquired 20 acquisitions so far, mostly in the U.S., but also in Canada and in the U.K. Basically, we're assembling these locations where you can go, where business and government can go to easily get a drone service for doing land surveys and mapping, inspection services like power lines or solar infrastructure inspections or golf course. We've got a specialized area in land surveys for golf courses. Power washing is another one we've acquired. One of our acquisitions, a power washing company, is a focus area that we see for Drone-as-a-Service.
Tower inspections and designs of cell phone towers is another focus area, and we have an acquisition in that area. What we're doing is building a national and a global network of these, of these companies that can be providing these services. We're really the only company with a, with the only company really in the industry that has this kind of global vision and is doing the fast execution that we are. Next slide, please. I guess our vision also is just a complete platform of these different drone services, whether it's land surveys, precision agriculture is another one.
We're doing a lot of work in Ireland with precision agriculture applications, spraying and all kinds of different inspection services to improve crop yields. That's our vision there. Next slide, please. We have 23 locations in all. Next slide. We have a few corporate locations. Dublin, Ireland, Dubai, and also Orlando is are corporate are ones that we've just started ourselves, and the other ones we've done through acquisition. As I mentioned, 3 manufacturing facilities. Our objective right now is really getting a we have goals per month of the number of drones that will be that are coming out of The finished products, I guess, out of those facilities.
We're in the process of constantly upping that number. Of course, we're gonna be building more capacity as we need to as well. Next slide, please. Of course, patents are a important part of our business. We have a number of them, whether it's the nose cone of the drone, which is interchangeable with different different sensors and cameras, LiDAR and whatnot. The landing pad. The drone recharges itself through its legs. We have a number of patents. Next slide, please. Shaun Passley is our founder and CEO. He's our visionary. He has six advanced degrees. He has started and developed many companies.
Of course, you know, a lot of our executive team have worked together for a long time, such as our CFO, Jim, and also Sajjad is our CTO, who's been. These teams have been together and worked with each other for quite a long time. Next, please. We have a number of other team members. We have a business development VP for North America and South America, and also one for Europe. In terms of our differentiation, we really think we differentiate by our expertise in our software development.
We're the only company that really has a that has a Drone-as-a-Service division and is rolling it out and executing as quickly as we are. You know, innovating and rolling up, if you like, low tech industries like land surveying. We also differentiate by our indoor drone is pretty unique as well. Next slide, please. Right. Moving forward, we're really focused on continuing doing our integration efforts for our Drone-as-a-Service, trying to improve our margins and revenue on that side of our business. We are certainly also focused on building out our network.
We're very focused on defense, so we're gonna continue to engage and find pilot opportunities leading to contracts and long-term opportunities is our goal in, on the defense side. Then we're continuing with developing our drone solutions and piloting and rolling out our drone solutions both for our internal use but also to customers like for precision agriculture and our indoor drone, indoor inventory management drone, and working on our R&D projects. That's pretty much it, an assessment of our. Take some questions.
Great. Thank you, Linda. Okay, let's jump into some questions. You mentioned the acquisition strategy. Tell us a little bit more about that and why land survey companies?
Land survey companies are a little bit unique industry. Many people don't realize that land survey is a $20 billion industry. It's made up of many small companies. Most companies are under 50 employees. In the land survey industry, you have a lot of small owner-operated companies, and there's no clear leader. Another issue with land survey companies is the average age of a land surveyor, a licensed land surveyor, is over 50 years old. We find a lot of motivated sellers
In this industry, that want to retire, and they wanna leave their business to somebody that's capable of providing good service going forward. Like I was saying, there's no clear leaders, and there's not large companies in this industry. There's also a barrier to enter because it takes 5 years on the average or longer to become a licensed surveyor. There's an apprenticeship program. They can't just go out and hire licensed surveyors when there's a need or a growth in the industry. They're, the industry as itself is hitting, they're hitting capacity issues right now. By adding drone technology, that is a good thing to allow capacity growth in the entities that we purchase.
Perfect. What are your plans to sell to U.S. defense customers this year?
I'll let Linda take that one.
Um.
Sure. We are actively engaging with program managers across in different agencies. We're trying to find opportunities for our drones. We think our indoor drone in for inventory management's a great opportunity. Also our ZenaDrone 1000, its heavy lift capabilities that can be very useful in the field for specialized cargo and refrigerated cargo such as blood. Those are just a couple of opportunities that we're focused on. Also we, you know, we're also trying to engage, you know, members of Congress offices as well to make sure that they know where we're growing. Our Drone-as-a-Service, we've got so many locations now that are growing across the U.S., we wanna build those relationships.
Yeah, we're trying to find those opportunities. The other thing is grants, grant opportunities. There's so many different agencies and programs, where we're doing a lot of work in trying to find all of those and actively pursue them.
Perfect. How are you integrating your drones with your acquisitions and your DAS business?
We start to integrate at the time of acquisition. There's a lot of training that goes on. If we can take a licensed surveyor and add drone technology to them, we can, instead of sending out a two-man crew to do an eight-hour job, we can send out one drone, one man, licensed surveyor, and they can get the job done in four hours. It takes a little bit of time to retrain and retool the employees, but it's been working for us.
Great. How does the company balance investment between your enterprise SaaS products, AI drone hardware, your DAS, and emerging areas such as quantum computing?
Anything that's detected with a drone takes technology to convert in the system. If it's not a hobby drone, it is a work drone. Our back office support to convert the data technology is one of the top offices in the field right now, and we're looking to improve and expand it just with our services in drone technology and land surveying. It's integral to the process of doing land surveys. I'll let Linda talk about the quantum computing. AI helps us to differentiate the technology, find out what's important and what's not, and it provides a lot of other applicable applications in other ways too, converting data and different things.
It's kinda integral to our process of providing our drone services.
Yeah. On the quantum computing side, we want to make sure that we're positioned in sort of the next generation of technologies, and we find it's moving very quickly. We've been developing a, an R&D team that has been focused on looking at how drone swarms can be incorporated and looking at really problems that drones can solve, like very important problems where such as wildfire management, so detecting fires and putting fires out. Swarms of drones can potentially do this better, more cost effectively than airplanes and helicopters. Drones take in a lot, and I mean, that's just one example.
Weather forecasting, we have a project where we are, we're using drones and trying to do a better job of, you know, localized weather forecasting. Traffic management is another one. Drones are, when you talk about drones as swarms of drones and real-time data, there's a lot of, that's a lot of data where that's where quantum computing will come in more sort of down the road.
Yeah.
We have... Sort of doing that, and.
Yeah.
We've been using quantum, I mean, quantum computer, you know, Amazon Web Services and whatnot. Quantum, it's very expensive, so it makes more sense for us to develop our own quantum computer rather than outsource for the types of work that this team wants to do. They're actually building their own, they're in the early process of building their own 5-qubit quantum computer as well.
Yeah.
Fascinating. Well, Linda, Jim, I want to give you a minute or so for any closing remarks for our viewers today.
We're gonna continue to make acquisitions, and we're looking for industries that are right for drone technology, and we're looking for companies within these industries that have motivated sellers. We can make an acquisition, we can have a dedicated client, and then we can introduce drone technology. When we make an acquisition, we can increase the value of that acquisition by adding the technology. We'll continue this strategy throughout at least throughout mid-year this year.
Perfect. Well, thank you both so much. Fascinating world you're in, and we certainly look forward to following along with your updates into this new year. Appreciate you both, and we'll see you again real soon.
Thank you.
All right, everyone, we'll be right back.