ZenaTech has actively expanded its Drone as a Service capabilities through acquisitions and product launches in 2025 and early 2026, including entering new geographic markets and sectors.

• 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].
• ZenaTech acquired Cardinal Civil to expand drone services in the Southeast U.S. [N4].
• The company submitted its IQ Square drone for green UAS certification to enhance defense readiness [N5].
• ZenaTech 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].
• The company submitted a green UAS application for the IQ Nano drone and expanded DaaS operations through acquisition of Empire Land Surveying [N8].

ZenaTech's strategic acquisitions and product innovations expand its Drone as a Service footprint across multiple industries and geographies, enhancing revenue diversification. Its proprietary drone technologies, including the IQ Nano and IQ Square with green UAS certification efforts, align with growing demand for autonomous and environmentally compliant drone solutions. The integration of quantum computing frameworks and drone swarm technology could provide advanced capabilities that differentiate its offerings. The company's software segment complements drone services, creating cross-selling opportunities. Strong liquidity ratios and ongoing financing support its growth initiatives.

ZenaTech reported significant net losses and negative earnings per share, reflecting high operating expenses and finance costs relative to revenue. The company depends on continued financing to fund its investments and acquisitions, which may pose liquidity risks if capital markets tighten. The drone and software markets are competitive and subject to regulatory changes, which could impact operations and growth. Integration risks exist with multiple recent acquisitions across different regions and sectors. The company faces litigation through its subsidiary, which, while currently not material, could pose future risks. Market adoption of new drone technologies and services may be slower than anticipated, affecting revenue growth.

ZenaTech's moat is built on its integrated Drone as a Service platform combined with proprietary drone manufacturing and software capabilities. The company's acquisitions of specialized land surveying firms and software providers enhance its service breadth and regional presence, creating a diversified and scalable business model. Its development of advanced drone technologies, including green UAS certification, drone swarm capabilities, and quantum computing frameworks for AI, positions it in a niche with high technical barriers to entry. The combination of hardware, software, and service offerings tailored to sectors such as defense, aviation, and construction supports competitive differentiation. However, the company operates in a rapidly evolving technology and regulatory environment, requiring continuous innovation and compliance.

• Financial Losses and Capital Dependence: ZenaTech reported a net loss of CAD 45.2 million for 2025 and depends on financing through debt and equity to fund long-term investments, which may affect liquidity and capital availability.
• Regulatory and Market Risks: The drone industry is subject to evolving regulations and competitive pressures that could impact ZenaTech's operations and market acceptance of its products and services.
• Acquisition Integration: The company has made multiple acquisitions in 2025 across different regions and sectors, posing risks related to integration, cultural alignment, and realization of synergies.
• Litigation Exposure: ZenaTech's subsidiary ZenaDrone, Inc. is involved in litigation in Wyoming, which is currently not considered material but could pose future financial or reputational risks.
• Technology Development and Adoption: Advancement in drone swarm technology, quantum computing frameworks, and green UAS certification involves technical and market adoption risks that could affect product competitiveness.

• 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 industries including surveying, aviation, defense, and construction.
• Enterprise Software segment develops, licenses, hosts, and supports enterprise software offerings including cloud-based solutions for warehouse management, compliance, safety, and workplace scheduling.
• ZenaTech has made multiple acquisitions in 2025 to expand its drone services and software capabilities, including land surveying firms in the US (Weddle Surveying, KJM Land Surveying, Cardinal Civil, Empire Land Surveying, Morgan Surveying), a UK 3D design and modeling company (Casado Design Ltd.), and power washing company with multiple locations.
• The company has subsidiaries and entities for drone manufacturing and sales in the US, Ireland, UAE, and Taiwan.
• ZenaTech has developed and introduced drone products such as ZenaDrone IQ Nano and IQ Square, with applications in inventory management, security, and defense readiness.
• The company is pursuing green UAS certification for its drones to enhance defense readiness.
• ZenaTech is advancing drone swarm technology and quantum computing frameworks for AI drone solutions.
• Revenue for the year ended December 31, 2025 was CAD 12.9 million, with CAD 10.1 million from Drone as a Service and CAD 2.8 million from Software as a Service.
• The company reported a net loss of CAD 45.2 million for the year ended December 31, 2025, with basic and diluted EPS of -1.32 USD per share.
• As of December 31, 2025, ZenaTech had cash and cash equivalents of CAD 5.98 million, current assets of CAD 33.2 million, current liabilities of CAD 14.96 million, resulting in a current ratio of 2.22 and a cash ratio of 0.4.
• The company has no major customers concentration as of 2025, with diversified revenue sources across regions including USA, Canada, UK, and Germany.
• ZenaTech's business model includes contract-based revenue recognition for survey and drone services, with payments typically made at project completion.
• The company has ongoing litigation through its subsidiary ZenaDrone, Inc., but it is not currently considered material.
• ZenaTech's capital structure consists of shareholders' equity and deficit; it does not pay dividends and depends on financing through debt and equity for long-term investments.
• The company manages credit risk through monitoring customer balances and allowances for expected credit losses, and liquidity risk is considered low with working capital positive and liabilities with short maturities.
• ZenaTech's drones and services target sectors including public safety, aviation, defense, construction, and inventory management.
• The company has been actively expanding its Drone as a Service capabilities through acquisitions and product development, including recent acquisitions of power washing and land surveying companies to broaden service offerings and geographic presence.