ZenaTech has actively expanded its Drone as a Service capabilities and geographic footprint through multiple acquisitions in 2025 and early 2026, launched new drone products, and pursued regulatory certifications to enhance defense readiness.

• 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-based 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, highlighting its technology innovation [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 has demonstrated rapid expansion of its Drone as a Service business through multiple acquisitions across the US, UK, and Canada, broadening its service capabilities and geographic reach. The company is advancing innovative drone technologies including AI-driven drones, drone swarm technology, and quantum computing frameworks, which could enhance its product differentiation. Its recent product launches and regulatory certifications, such as the Green UAS applications for IQ Nano and IQ Square drones, support its positioning in defense and commercial markets. The company’s SaaS offerings complement its drone services, providing diversified revenue streams. Liquidity ratios indicate the company maintains moderate liquidity to support ongoing operations and growth initiatives [S1][N1][N2][N3][N4][N5][N6][N7][N8].

ZenaTech reported a significant net loss of CAD 45.2 million for 2025 despite revenue growth, indicating ongoing challenges in achieving profitability. The company’s rapid acquisition strategy may pose integration risks and increase operational complexity. Financial risks including credit, liquidity, interest rate, and currency exposures exist and require active management. The drone services and enterprise software markets are competitive with evolving technology and regulatory environments, which may impact the company’s ability to sustain growth and margins. Ongoing litigation through a subsidiary, although currently not material, represents a potential legal risk. The company’s reliance on financing through debt and equity to fund investments may affect capital structure and financial flexibility [S1][N1][N2][N3][N4][N5][N6][N7][N8].

ZenaTech's moat is supported by its integrated Drone as a Service platform combined with proprietary drone hardware and software solutions, including AI and quantum computing initiatives. The company's strategy of expanding through acquisitions in land surveying, 3D design, and related services enhances its service breadth and geographic footprint, creating a network effect in drone services. Its regulatory certifications such as Green UAS and defense-related qualifications provide barriers to entry. The combination of hardware manufacturing, software development, and service delivery across multiple regions supports a differentiated offering. However, the drone services and enterprise software markets are competitive and evolving, requiring continuous innovation and integration to maintain competitive advantages [S1][N1][N2][N3][N4][N5][N6][N7][N8].

• Integration Risk: Rapid acquisitions across multiple regions and sectors may pose challenges in integrating operations, cultures, and systems, potentially impacting operational efficiency.
• Financial Risk: The company reported significant net losses and depends on financing through debt and equity, which may affect liquidity and capital structure.
• Market Competition: The drone services and enterprise software markets are competitive and rapidly evolving, requiring continuous innovation and adaptation.
• Regulatory and Certification Risk: Compliance with evolving drone regulations and certification requirements is critical; delays or failures could impact market access.
• Legal Risk: Ongoing litigation through a subsidiary, while currently not material, could result in unforeseen liabilities or costs.

• ZenaTech, Inc. is incorporated in British Columbia, Canada, and its common stock is listed on Nasdaq under ticker 'ZENA' since October 1, 2024 [S1].
• The company operates primarily in two segments: Drone as a Service (DaaS) and Enterprise Software [S1].
• 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 [S1].
• Enterprise Software segment develops, licenses, hosts, and supports enterprise software offerings including cloud-based solutions for warehouse management, inventory fulfillment, compliance, workplace scheduling, and public safety [S1].
• ZenaTech has made multiple acquisitions in 2025 to expand its DaaS capabilities and geographic footprint, including land surveying companies in the US (e.g., Weddle Surveying, KJM Land Surveying, Cardinal Civil), a 3D design and modeling company in the UK, and a power washing company with multiple locations across two US states [N1][N2][N3][N4].
• The company has subsidiaries and entities operating in the US, Ireland, UAE, UK, and Canada for drone manufacturing, sales, and services [S1].
• ZenaTech has developed and launched drone products such as the ZenaDrone IQ Nano and IQ Square drones, including submissions for Green UAS certification to enhance defense readiness [N5][N6][N8].
• The company is advancing drone swarm technology and quantum computing frameworks for AI drone solutions [N7].
• ZenaTech's DaaS revenue for the year ended December 31, 2025, was approximately CAD 10.1 million, with total revenue including SaaS of CAD 12.9 million, up from CAD 1.96 million in 2024 [S1].
• The company reported a net loss of CAD 45.2 million for the year ended December 31, 2025, with basic and diluted loss per share of CAD 1.32 [S1].
• Liquidity ratios as of December 31, 2025, include a current ratio of 2.22 and a cash ratio of 0.4, with cash and equivalents of approximately CAD 5.98 million and current assets of CAD 33.2 million against current liabilities of CAD 14.96 million [S1].
• ZenaTech does not have any major customers accounting for a significant portion of revenue as of December 31, 2025 [S1].
• The company recognizes revenue from DaaS contracts based on services delivered and from software licenses, subscriptions, and support services [S1].
• ZenaTech has a history of issuing common shares, super voting shares, and preferred shares as consideration for acquisitions [S1].
• The company is exposed to financial risks including credit risk, liquidity risk, interest rate risk, and currency risk, with management monitoring these risks regularly [S1].
• ZenaTech has ongoing litigation through its subsidiary ZenaDrone, Inc., but the claim is not currently considered material [S1].