ZenaTech has actively expanded its Drone as a Service capabilities and geographic presence through multiple acquisitions and product launches in 2025 and early 2026.

• ZenaTech signed an offer to acquire a power washing company with multiple locations across two states, expanding its Drone as a Service capabilities in a sector growing at 17% annually [N1].
• The company announced plans to acquire a 3D design and modeling company in the UK to enhance its service offerings [N2].
• ZenaTech agreed to acquire two Florida firms to expand drone services in aviation, defense, and construction sectors [N3].
• The acquisition of Cardinal Civil was completed to expand drone services in the Southeast U.S. [N4].
• ZenaTech submitted its IQ Square drone for Green UAS certification to enhance defense readiness [N5].
• The company introduced the ZenaDrone IQ Nano for enhanced inventory management and security solutions [N6].
• ZenaTech developed a prototype quantum computing framework for AI drone solutions [N7].
• It submitted a Green UAS application for the IQ Nano drone and expanded DaaS operations through acquisition of Empire Land Surveying [N8].

ZenaTech has demonstrated rapid expansion through strategic acquisitions in land surveying and software sectors, enhancing its Drone as a Service capabilities and geographic footprint. The company’s development of advanced drone products, including autonomous indoor drones and quantum computing frameworks for AI, indicates a focus on innovation. Its diversified revenue streams from DaaS and enterprise software provide multiple growth avenues. The company’s liquidity position and current ratio suggest operational stability to support ongoing investments. The increasing adoption of drone technology in defense, construction, and inventory management sectors supports the relevance of ZenaTech’s offerings. Recent certifications and patent filings reflect progress in product development and market readiness.

ZenaTech reported significant net losses in 2025, indicating high operational and acquisition-related expenses that may pressure financial sustainability. The company’s rapid acquisition strategy could pose integration risks and strain management resources. The drone services market is competitive and subject to regulatory challenges, which may impact operational execution. Dependence on financing for long-term investments introduces capital risk. The company’s lack of major customers may reflect a fragmented revenue base, potentially affecting revenue stability. Technological advancements require continuous R&D investment, which may increase costs. Legal contingencies, although currently not material, could pose future risks.

ZenaTech's moat is built on its integrated drone technology and service offerings combined with enterprise software solutions, supported by a growing portfolio of acquisitions that expand geographic reach and industry verticals. Its proprietary drone products with patented designs and remote charging capabilities, alongside its development of quantum computing frameworks for AI drone solutions, contribute to technological differentiation. The company's ability to provide end-to-end drone services, including data analytics and regulatory certifications, positions it competitively in the emerging Drone as a Service market. However, the moat is challenged by the capital-intensive nature of drone technology development, competition in drone services, and the need for continuous innovation and regulatory compliance.

• Integration Risk: Rapid acquisitions across multiple geographies and sectors may pose challenges in integrating operations, cultures, and systems, potentially impacting efficiency and financial performance.
• Financial Sustainability: Significant net losses and high operating expenses raise concerns about the company’s ability to achieve profitability and manage cash flow effectively.
• Regulatory and Compliance Risks: Drone operations are subject to evolving regulations and certification requirements, which may affect the company’s ability to deploy services and products timely.
• Market Competition: The drone services and enterprise software markets are competitive with multiple players, which may pressure pricing, margins, and market share.
• Technology Development Risk: Continuous innovation in drone technology and AI integration requires substantial R&D investment, with risks of technological obsolescence or delays.

• ZenaTech, Inc. is incorporated in British Columbia, Canada, and listed on Nasdaq under ticker ZENA since October 1, 2024.
• The company operates primarily in two segments: Drone as a Service (DaaS) and Enterprise Software.
• DaaS segment provides data capture and flight analytics through drone services for surveying, mapping, inspection, and monitoring across various industries including aviation, defense, construction, and land surveying.
• Enterprise Software segment develops, licenses, hosts, and supports enterprise software offerings including cloud-based solutions for public safety, warehouse inventory management, workplace scheduling, and compliance management.
• ZenaTech has acquired multiple companies in 2024 and 2025 to expand its drone and software capabilities, including land surveying firms in the US (Weddle Surveying, KJM Land Surveying, Cardinal Civil, Empire Land Surveying, Morgan Surveying), a UK-based 3D design and modeling company (Casado Design Ltd.), and software companies such as ZooOffice, DeskFlex, Othership, Ecker Capital, and others.
• The company has developed and launched drone products such as the ZenaDrone IQ Nano and IQ Square, with applications in inventory management, security, and defense readiness, including submissions for Green UAS certification.
• ZenaTech is advancing drone swarm technology and quantum computing frameworks for AI drone solutions.
• The company has expanded its DaaS operations geographically across the US Southeast, Florida, UK, Canada, and Germany through acquisitions and organic growth.
• Revenue for the year ended December 31, 2025, was approximately CAD 12.9 million, with CAD 10.1 million from DaaS and CAD 2.8 million from SaaS.
• For the year ended December 31, 2024, revenue was CAD 1.96 million, indicating significant growth in 2025.
• The company reported a net loss of CAD 4.48 million for 2024 and a much larger net loss of CAD 45.2 million for 2025, reflecting increased expenses related to acquisitions, R&D, and operations.
• Liquidity as of December 31, 2024, included cash and equivalents of CAD 3.75 million, current assets of CAD 6.28 million, current liabilities of CAD 2.89 million, with a current ratio of 2.17 and cash ratio of 1.3.
• ZenaTech's financial disclosures include detailed segment reporting, revenue recognition policies, and capital management strategies.
• The company does not have any major customers accounting for a disproportionate share of revenue as of 2025.
• ZenaTech's shares are listed on Nasdaq and are considered marketable stock for US tax purposes.
• The company is subject to Canadian and US tax regulations, including considerations related to Passive Foreign Investment Company (PFIC) status for US holders.
• ZenaTech has ongoing legal matters but none currently considered material.
• The company has no externally imposed capital requirements and does not pay dividends.
• ZenaTech's business model includes acquisitions to expand drone and software service capabilities, product development in drone technology, and geographic expansion through acquisitions and partnerships.