Update: ZenaTech Announces Acquisition of Warehouse Software Companies for Integration With AI Drone Solution for Automated Inventory Management

Rhea-AI Summary

ZenaTech (NASDAQ: ZENA) has agreed to acquire Ecker Capital , which owns warehouse management software companies InterlinkONE and Interactive Systems, from Ameritek Ventures. The acquisition aims to integrate these software capabilities with ZenaTech's ZenaDrone IQ Nano AI drone solution for autonomous inventory management. The acquired companies generated combined operating income of $354K on revenue of $678K in the first nine months of 2024, and $386K on revenue of $949K in FY 2023. The integration will enable warehouse customers to perform hourly inventory assessments instead of quarterly, potentially saving millions in inventory costs for multi-warehouse facilities.

Positive

• Combined operating income of $354K on $678K revenue (9M 2024)
• Previous year revenue of $949K with $386K operating income (FY 2023)
• Acquisition expected to add recurring revenue stream
• Integration enables cost-effective hourly inventory management vs. quarterly

Negative

• Acquisition subject to shareholder and regulatory approvals
• Transaction involves affiliated company, potentially raising conflict of interest concerns

Insights

Technology Integration Specialist

<p>The acquisition of InterlinkONE and Interactive Systems represents a strategic move to enhance ZenaTech's warehouse automation capabilities. The integration of existing warehouse management software with drone technology creates a powerful synergy for real-time inventory management. <b>Key financial metrics</b> show combined operating income of <money>$354K</money> on revenue of <money>$678K</money> for the first nine months of 2024, demonstrating positive margins. The IQ Nano drone's compact size and autonomous capabilities, combined with established software solutions, position ZenaTech to potentially disrupt traditional warehouse management practices.</p>

Financial Analyst

<p>This acquisition strengthens ZenaTech's recurring revenue stream through SaaS offerings while expanding its market presence. The acquired companies' <b>operating margin of <percent>52%</percent></b> for the first nine months of 2024 indicates strong profitability. For a company with a market cap of <money>$35M</money>, adding nearly <money>$1M</money> in annual revenue is significant. The potential for cost savings in inventory management could drive rapid customer adoption, though integration costs and execution risks should be monitored.</p>

TORONTO, Ontario, Nov. 12, 2024 (GLOBE NEWSWIRE) -- ZenaTech, Inc. (Nasdaq: ZENA) (FSE: 49Q) ("ZenaTech"), a technology company specializing in AI (Artificial Intelligence) drone solutions and enterprise SaaS (Software-as-a-Service) solutions, announces that it has entered into an agreement to acquire Ecker Capital LLC, the holding company for warehouse management software companies InterlinkONE Inc. and Interactive Systems Inc., from ZenaTech’s affiliated company Ameritek Ventures Inc. (OTC: ATVK). The acquisition of these two software companies will provide important functionality for integration with its ZenaDrone IQ Nano AI drone solution, enabling autonomous inventory management for warehouse and logistics customers. This transaction also further expands ZenaTech’s portfolio of SaaS software solutions and customer base and is expected to add to recurring revenues. Combined operating income for the acquired companies were $354K on revenue of $678K for the first nine months of 2024, and $386K on revenue of $949K for FY 2023. The acquisition is subject to any shareholder and regulatory approvals that may be required.

“This acquisition will add more recurring revenue to ZenaTech, as well as provide additional functionality to our ZenaDrone IQ Nano AI drone solution for autonomous inventory management. We look forward to introducing these ground-breaking solutions to warehouse and logistics customers in the US and globally. We believe this dramatically improves decision making and efficient operations by being able to assess and manage physical inventory cost-effectively by the hour instead of once every quarter as often done.  This can easily result in inventory cost savings in the millions of dollars a year for multi-warehouse facility customers,” said CEO Shaun Passley, Ph.D.

Interactive Systems, Inc.

Provides software that helps manage all aspects of warehouse day-to-day operations including inventory management, e-commerce, order processing, and supports handheld devices for warehouse workers. The solution also features customized interfaces to automation and a variety of material handling equipment.

InterlinkONE, Inc.

Provides warehouse management solutions for maintaining multiple warehouses on different platforms and integrating them with associated applications for ERP, ecommerce and finance, such as WooCommerce, Salesforce, Zapier and QuickBooks.

The ZenaDrone IQ Nano is a 10x10-inch indoor drone designed to perform regular and frequent inspections such as bar code or RFID scanning in inventory management, facility maintenance inspections, security monitoring, 3D indoor mapping and other applications inside a warehouse, distribution, or plant facility. The IQ Nano is designed for autonomous use featuring integrated sensors, high-quality cameras, and data collection and analysis. Weighing 1.5kg and with a flight time of up to 20 minutes before utilizing the automatic battery charging station, it is designed for hovering stability and for safety with obstacle avoidance capabilities. View video showing the IQ Nano in test flight here.

About ZenaTech

ZenaTech (Nasdaq: ZENA) (FSE: 49Q) is a technology company specializing in AI drone solutions and enterprise SaaS solutions for mission-critical business applications. Since 2017, the company has leveraged its software development expertise and grown its drone design and manufacturing capabilities through ZenaDrone, to innovate and improve customer inspection, monitoring, safety, security, compliance, and field service processes. With over 100 enterprise software customers using branded solutions in law enforcement, government, and industrial sectors, and drones being implemented in these plus agriculture, defense, and logistics sectors, ZenaTech helps drive exceptional operational efficiencies and cost savings. The company operates through six offices in North America, Europe, and UAE, and a growing global partner network.

About ZenaDrone 

ZenaDrone, a wholly owned subsidiary of ZenaTech, develops and manufactures autonomous business drone solutions that can incorporate machine learning software, AI, predictive modeling, and other software and hardware innovations. Created to revolutionize the hemp farming sector, its specialization has evolved to multifunctional drone solutions for industrial surveillance, monitoring, inspection, tracking, and process automation applications. Currently the Zenadrone 1000 drone is used for crop management applications in agriculture and for critical field cargo applications in the defense sector, and the IQ Nano indoor drone is used for inventory management in the warehouse and logistics sector.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Contacts for more information:

Company, Investors and Media:
Linda Montgomery
ZenaTech
312-241-1415
investors@zenatech.com

Investors:
Michael Mason
CORE IR
investors@zenatech.com

Safe Harbor

This press release and related comments by management of ZenaTech, Inc. include “forward-looking statements” within the meaning of U.S. federal securities laws and applicable Canadian securities laws. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. This forward-looking information relates to future events or future performance of ZenaTech and reflects management’s expectations and projections regarding ZenaTech’s growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “aim”, “seek”, “is/are likely to”, “believe”, “estimate”, “predict”, “potential”, “continue” or the negative of these terms or other comparable terminology intended to identify forward-looking statements.  Forward-looking information in this document includes, but is not limited to ZenaTech’s expectations regarding its revenue, expenses, production, operations, costs, cash flows, and future growth; expectations with respect to future production costs and capacity; ZenaTech's ability to deliver products to the market as currently contemplated, including its drone products including ZenaDrone 1000 and IQ Nano; ZenaTech’s anticipated cash needs and it’s needs for additional financing; ZenaTech’s intention to grow the business and its operations and execution risk; expectations with respect to future operations and costs; the volatility of stock prices and market conditions in the industries in which ZenaTech operates; political, economic, environmental, tax, security, and other risks associated with operating in emerging markets; regulatory risks; unfavorable publicity or consumer perception; difficulty in forecasting industry trends; the ability to hire key personnel; the competitive conditions of the industry and the competitive and business strategies of ZenaTech; ZenaTech’s expected business objectives for the next twelve months; ZenaTech’s ability to obtain additional funds through the sale of equity or debt commitments; investment capital and market share; changes in the target markets; market uncertainty; ability to access additional capital, including through the listing of its securities in various jurisdictions; management of growth (plans and timing for expansion); patent infringement; litigation; applicable laws, regulations, and any amendments affecting the business of ZenaTech. 

Forward-looking statements are based on certain assumptions and analyses made by the management of ZenaTech in light of its experience and understanding of historical trends and current conditions and other factors management believes are appropriate to consider, which are subject to risks and uncertainties. Although ZenaTech’s management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and actual results may vary materially from the forward-looking information presented. Given these risks and uncertainties underlying the assumptions made, prospective purchasers of ZenaTech’s securities should not place undue reliance on these forward-looking statements. 

Further, any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, ZenaTech undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors and to assess in advance the impact of each such factor on ZenaTech’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. Potential investors should read this document with the understanding that ZenaTech’s actual future results may be materially different from what is currently anticipated.

FAQ

What companies did ZenaTech (ZENA) acquire in November 2024?

ZenaTech acquired Ecker Capital , which owns InterlinkONE Inc. and Interactive Systems Inc., two warehouse management software companies.

What was the revenue of the companies acquired by ZenaTech (ZENA) in 2023?

The acquired companies generated combined revenue of $949K with operating income of $386K in FY 2023.

How will the acquisition benefit ZenaTech's (ZENA) drone solution?

The acquisition will integrate warehouse management software capabilities with ZenaTech's ZenaDrone IQ Nano AI solution, enabling autonomous inventory management and hourly inventory assessments.

What are the specifications of ZenaTech's (ZENA) IQ Nano drone?

The IQ Nano is a 10x10-inch indoor drone weighing 1.5kg with up to 20 minutes flight time, featuring autonomous operation, integrated sensors, high-quality cameras, and obstacle avoidance capabilities.