ZenaTech launches commercial drone services in the US

PHOENIX, Arizona - ZenaTech, Inc. (NASDAQ:ZENA), a company specializing in AI drone and enterprise SaaS solutions, announced the launch of its subsidiary ZenaDrone's commercial operations in the United States. The commencement follows the Federal Aviation Authority (FAA) exemption approval, allowing ZenaDrone to offer Drone-as-a-Service (DaaS) from its Phoenix office.

The DaaS operations will provide ZenaDrone 1000, a product designed for various applications including land surveying, inspection, and monitoring. The company is also in the process of seeking an FAA aerial spraying license to expand its services to agricultural pest control and soil treatment.

ZenaDrone's FAA exemption permits the company to conduct visual line-of-sight commercial applications and data collection. This approval is a stepping stone for the company to engage in live testing and evaluation with US-based customers. Additionally, ZenaTech plans to test beyond visual line-of-sight operations at an overseas location in the upcoming months.

The ZenaDrone 1000 is engineered for industrial use, featuring stable flight, heavy lift capabilities, and integration with AI and sensor technology. It has been employed in smart farming within the agriculture sector, and also piloted for critical medical supply delivery with the US military.

ZenaTech, with a diverse portfolio of enterprise software customers across law enforcement, government, and industrial sectors, aims to enhance operational efficiencies and reduce costs. The company operates globally, with offices in North America, Europe, and UAE, and a growing partner network.

Dr. Shaun Passley, Ph.D., CEO of ZenaTech, expressed optimism about the new commercial services and the potential for regulatory approvals in other countries.

This report is based on a press release statement and does not reflect an endorsement of ZenaTech's products or services. The forward-looking statements included in the press release are subject to risks and uncertainties, and actual results may differ materially from those projected. Potential investors are cautioned to not place undue reliance on these forward-looking statements, which speak only as of their dates.

In other recent news, ZenaTech, Inc. has announced a significant development as its subsidiary, ZenaDrone, has received an exemption from the Federal Aviation Authority (FAA) for commercial drone operations in the United States. This exemption, which is subject to certain conditions, enables ZenaTech to conduct live tests and evaluations of the ZenaDrone 1000 with US partners and potential customers. The company's CEO, Dr. Shaun Passley, underscored the importance of this development for refining the firm's drone solutions and expanding its operations in the US.

Furthermore, ZenaTech's partnership with Night Sun, a Native American Corporation, is set to benefit from this FAA exemption. The joint venture is aimed at manufacturing and selling drones to Native American tribes for various applications such as search and rescue, firefighting, cargo delivery, and land surveying.

The ZenaDrone 1000, designed for industrial use, has already been put to work in Ireland for smart farming and has undergone testing with the US military for the delivery of critical medical supplies. These are recent developments in ZenaTech's ongoing growth strategy, which leverages its expertise in software development and drone manufacturing to enhance operational efficiencies and cost savings for its clients.

InvestingPro Insights

As ZenaTech, Inc. (NASDAQ:ZENA) launches its commercial drone operations in the United States, investors should be aware of some key financial metrics and market trends. According to InvestingPro data, ZenaTech's revenue for the last twelve months as of Q2 2024 stood at $1.41 million, with a concerning revenue growth decline of -16.14% over the same period. This decline in revenue growth could pose challenges as the company expands its drone services.

Despite the optimism surrounding the FAA exemption and the launch of commercial operations, InvestingPro Tips highlight that ZENA's stock has taken a significant hit, falling by 68.52% over the past year. This substantial decline suggests that investors may be skeptical about the company's near-term prospects or that the market has not yet priced in the potential of the new drone services.

It's worth noting that ZenaTech is currently not profitable over the last twelve months, as indicated by another InvestingPro Tip. This lack of profitability, combined with the high EBIT and EBITDA valuation multiples, suggests that the market may be pricing in significant future growth expectations from initiatives like the newly launched drone services.

For investors considering ZENA stock, it's important to note that InvestingPro offers 11 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be particularly valuable given the company's recent strategic moves in the drone industry.

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