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PHOENIX, Arizona - ZenaTech, Inc. (NASDAQ:ZENA), a $35.31 million market cap company specializing in AI drones and Quantum Computing solutions, has announced plans to expand its US-based subsidiary ZenaDrone's manufacturing capabilities in Phoenix, Arizona. According to InvestingPro analysis, the company is currently trading above its Fair Value, with analysts noting its rapid cash burn rate as it pursues expansion. The move follows the recent tariff changes by the US Administration, which the company aims to navigate without increasing prices for its commercial customers.
ZenaDrone, headquartered in Phoenix, is gearing up to add up to 2,000 additional square feet of production space over the next two months to accommodate the manufacturing of drones for both commercial and military use. This expansion is expected to create over 150 new jobs in the region by the end of 2026. The company maintains a healthy current ratio of 2.17, indicating sufficient liquidity to fund its near-term expansion plans.
The decision to increase manufacturing capacity in the US aligns with ZenaTech's commitment to domestic production for defense drone solutions and maintaining a military-compliant supply chain. The company's CEO, Shaun Passley, Ph.D., emphasized the importance of agility in responding to the evolving trade landscape and the company’s long-term strategy in smart resource management.
ZenaTech's expansion plans are bolstered by the increased US restrictions on Chinese drones and components, coupled with local incentives for domestic production. The company has previously conducted successful paid trials with the US Air Force and the US Navy Reserve, using its drones for logistics and transportation of critical cargo.
The company is also preparing for the Green UAS certification, a prerequisite for selling drones to government agencies, and intends to apply for the more stringent Blue UAS certification to enter the US defense market directly.
The global military drone market, where ZenaDrone operates, was estimated at $14 billion in 2023 and is projected to grow to $47 billion by 2032. ZenaDrone targets various segments within this market with its multifunction AI drones, including Intelligence, Surveillance, Reconnaissance, and Targeting (ISRT), as well as logistics and transportation. With current annual revenue of $1.37 million and its next earnings report due in 4 days, investors can access additional insights and 12 more exclusive ProTips through InvestingPro.
This expansion reflects ZenaTech's strategic focus on enhancing its manufacturing footprint in the US amid shifting economic policies and its pursuit of a larger share of the growing military drone market. The information for this article is based on a press release statement from ZenaTech, Inc.
In other recent news, ZenaTech, Inc. reported positive financial results for 2024, highlighting increases in both revenue and assets. The company also expanded its workforce by adding 35 engineers and technicians to its ZenaDrone division to meet growing manufacturing demands for its drones. ZenaTech has been active in mergers and acquisitions, completing the acquisition of Othership Limited and signing a Letter of Intent to acquire additional land survey companies in the Southeast and Arizona. These acquisitions are part of ZenaTech's strategy to enhance its Drone as a Service (DaaS) business model. The company is also set to acquire a Florida-based land survey engineering firm to bolster its presence in the region. ZenaTech's CEO, Shaun Passley, emphasized the strategic importance of these acquisitions in expanding the company's national DaaS business. The company is developing new applications for its drones, including an indoor drone swarm application for inventory management and security. These developments underscore ZenaTech's commitment to innovation and growth in the drone technology sector.
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