ZenaTech, Inc. Common Stock Emerging Growth Conference 97

Thank you very much, Anna. Great to be here. Hello, everybody. Thank you for taking the time to listen to our story. Today, would like to do a brief overview of ZenaTech. I know many of you are getting familiar with our story. I am going to take you through a newer deck today. First of all, we are a drone company. Our focus is building AI autonomous drone platforms and services that run on them. Our marketplaces that we are focused on selling to is commercial, government, and defense. I think what differentiates us is that we are one of the few public drone companies serving commercial and enterprise customers at scale through our drone-as-a-service business.

We are focused on the defense business as well. I think what differentiates us is a lot of our peers are primarily focused on defense. We are a revenue-generating commercial drone company today with that defense upside. We have our drone-as-a-service platform. We have over 40 locations, more like 45 now. We just did a press release this morning about our AI platforms and some of the efficiencies that we are focused on for our drone-as-a-service business, with addition of two additional companies and about four new locations in Australia. Basically, our drone-as-a-service platform, we provide turnkey drone services for land surveys, for inspections. Basically, it is a subscription-based service and we are helping customers to eliminate having to own the platforms, do the maintenance, and worry about regulation drone pilots, and all of that.

We go to a customer site, and we take care of all that. We are doing this through acquisition. We have completed now 31 acquisitions since we started this at the beginning of last year for land survey companies, but also many types of inspection companies, solar inspection, cellphone tower design, and maintenance, those kinds of services. We are integrating our drones and of course, our goal is to achieve considerable efficiencies, more precision, more data, and smart data, and also do these services much faster. We use our own technologies. ZenaDrone is our drone company, and we are vertically integrated in using our own drones for this business. That is not all we do. We also have an enterprise SaaS software division as well with multiple brands. This is really strategic to our company because these software development skills are very strategic.

This is a recurring revenue business with some great customers we've had for a long time for these various software brands, business and government software brands that we also sell. We have a pretty global footprint in North America, Europe, U.A.E., Australia, and we're expanding around the world. Zena AI is going to focus on advanced military AI types of applications. We're staffing up a facility in the U.S. for that. Recently we've announced that we are manufacturing and testing in Ukraine. Some of our performance indicators you probably perused there. I guess we started off in 2024, our revenue was CAD 2 million, and that was primarily from our software business. Since then, our revenue was, and this is Canadian dollars that I'm talking about, our revenue last year was CAD 9.3 million.

If you look at our first quarter this year, $6.6 million, this is U.S. dollars here. For the first half of the year, our revenue was $12.5 million. These are considerable increases. This one was 425% over the same period last year. Really, we're seven consecutive quarters of revenue growth, and we have also announced what we're expecting in Q3, and that revenue will be between CAD 10 million and CAD 14 million. I think I've gone through some of these investment highlights. What we're doing here is we're building subscription services. We sell to builders, construction companies, and many levels of government. Our idea is that this is usage-based, and also it's subscription-based for some of these longer-term contracts.

For instance, our goal is to work with a builder or construction company over the life of their one, two year, or whatever build, a construction project, providing those survey services that they need all the way through them. I guess we're really hyper-focused on some of these legacy non-digitized industries, of course, which land surveys with traditional methods use a total station primarily, predominantly. We believe drones enable us to cover more ground and achieve a lot of efficiencies in terms of margins, in terms of time, and building extra capacity to grow our business. Just a little bit about our leadership team. Dr. Shaun Passley, our Founder and CEO, has been an entrepreneur and has businesses since university, and he has four degrees in addition to his advanced degrees, in addition to his PhDs, our founder and our visionary.

Of course, Jim Sherman, our CFO, who's had much experience with previous public companies. Sajjad Asif, who's our Chief Technology Officer, an engineer with an MBA, and looks after all of our manufacturing and our products development and product roadmaps. It's really a huge market opportunity if you look at over 25% year-over-year growth in the area of drone services. We think we're pretty uniquely positioned in this with our technology platforms to modernize some of these traditional businesses. If we look at our near-term revenue opportunity, we're looking at a run rate of about $55 million over the next year. This is just the flywheel of how we create value with drone-as-a-service. We're deploying and we're combining our drones to really improve these workflows.

We're using AI in some of our proprietary analysis that we do, lots of backend operations for LIDAR processing, and data processing and analytics. We think there's going to be additional revenue opportunities around this. Then, of course, the idea is that these recurring revenues, subscription-based. Then we want to expand our portfolio of services. As well as land surveys and many inspection services, we have companies that have all of our acquisitions have long-term relationships with customers, like 20-year relationships with customers, like for instance, telecom companies and railway, brand name railway companies for land surveys. Many of them have these relationships and they're profitable when we acquire them. We want to expand our portfolio of services. Precision agriculture is something that we are working on.

We do today, and we're working on some of our technology solutions to do this larger scale. These are branded businesses. Drone-as-a-service, you can go online, you can order your drone service from one of our local drone-as-a-service locations in your city where we have operations. Then, we're the drone-as-a-service go-to place in the community as well. This is just a little bit about the drone-as-a-service platform, which I think I already explained how we do, I won't go into that again. I've talked about some of these services, land surveys, inspections we do a lot of today. Power washing is another service that we do. We have 2 locations, and one of them is a franchised organization, and so we are now rolling out drone-as-a-service, power washing. We're under our own brand from the franchise model was already established through the company we acquired.

These are the ones today, and of course, we are looking at other applications beyond this mining. We feel that this is a platform that we're certainly able to scale. Our drone portfolio. Starting with our IQ Quad on the far left-hand side, this is our land survey drone, specifically designed to carry various sensors required for that. That's in the testing stage right now internally in our operations. The IQ Square, the one beside that's our outdoor line-of-sight drone. That's also the drone we use it for inspections and also power washing. It's tethered to water supply and also an electrical supply, and we're using it for that. Then the IQ Nano, the yellow drone, is for doing indoor inspections. It actually reads barcodes, and this one is actually in the customer paid trial stage today.

We do inventory management with that drone. The IQ Aqua is at the prototype, and actually now it's at the testing stage. That's our underwater drone for commercial, and then we hope to use it for defense uses. Then, of course, the ZenaDrone 1000, that's our large drone. It's a medium-sized, heavy-lift cargo drone, the one on the far right side, and it carries up to 40 kilos. This is the one we see a lot of defense applications for inspections, surveillance, reconnaissance, and cargo. So carrying medical supplies, for instance, in the Navy from ship to ship. With other defense agencies is what we're looking at there. We also announced that we are in the counter-UAS area. We have products we're working on there. They're at the prototype stage right now. We have 2 interceptor drones.

One of them is a small one-way drone, the Interceptor P-1, and the ZenaDrone 2000 is a larger one. IQ Glider will be our marine-based launch and refueling station. The ZenaDrone 2000 will be a gas-based drone. That is part of our integrated defense system that is in development right now. We are getting Blue UAS certification. We require that to be on procurement lists. We are well into that process, and we are, I would say, the last half of getting that certification. That is going to be a very important milestone for us moving forward, but it does not mean we are not engaging with the defense decision-makers. We certainly are. We have been for well over a year and a half, and of course, previously we have done paid trials with the Navy and the Air Force as well, so very big focus for us.

We have a Washington, D.C. office. We are staffing that up. I believe we have 3, 4 people there, about to hire someone, and we are expecting a few more in that office for federal sales. We have been invited to do demos. Our indoor inventory management drone, we are setting that up right now with a defense agency, and we hope that moving forward we will have more of those. We have 3 manufacturing facilities. We started out with the one in Sharjah near Dubai, and that is 22,000 sq ft. We are commissioning our, actually expanding our facilities in Arizona right now.