ZenaTech’s ZenaDrone Moving Forward on its Heavy-Lift Gas-Powered Drone Version of the ZenaDrone 1000 for the US Defense and NATO Market

Rhea-AI Summary

ZenaTech (NASDAQ: ZENA) announces development of a gas-powered version of the ZenaDrone 1000 targeting US Defense and NATO markets. The company plans to submit a proposal to the US Air Force through the SBIR Long-Duration Aircraft Program. The global military drone market, currently valued at $14 billion (including $5 billion US market), is projected to reach $47 billion by 2032.

The gas-powered drone will offer extended flight durations, higher payload capacities, and superior operational ranges compared to battery-powered versions. ZenaDrone has previously completed paid trials with the US Air Force and Navy Reserve for logistics applications. The company plans to manufacture 'Made in America' drones in Arizona, with an NDAA-compliant supply chain, and aims to pursue Green UAS and Blue UAS certifications for DoD supplier approval.

Positive

• Previously completed paid trials with US Air Force and Navy Reserve
• NDAA-compliant supply chain already established
• Targeting $14 billion military drone market with projected growth to $47 billion by 2032
• Manufacturing facility planned in Arizona for 'Made in America' production

Negative

• Product still in development phase with no guaranteed success
• Pending SBIR program submission with no assured acceptance
• Faces competition in established military drone market
• Green UAS and Blue UAS certifications not yet obtained

Insights

Defense Technology Analyst

The pivot towards gas-powered drones represents a calculated strategic move into the lucrative $14 billion military drone market. The key technical advantage lies in the significantly extended flight times and enhanced payload capacity - critical factors for military operations where endurance and reliability are paramount. The NDAA compliance and planned Green/Blue UAS certifications position ZenaDrone strategically in a restricted competitive landscape, as many drone manufacturers struggle with Chinese supply chain dependencies.

Previous successful trials with both the US Air Force and Navy Reserve provide important validation of ZenaDrone's capabilities in military logistics. The Arizona manufacturing initiative aligns with the "Made in America" requirements that are increasingly critical for defense contracts. The timing is opportune, as the defense sector is actively seeking domestic drone suppliers to reduce foreign dependencies.

Market Research Analyst

The military drone market's projected growth from $14 billion to $47 billion by 2032 represents a 235.7% increase, indicating substantial market expansion potential. ZenaTech's strategic positioning through SBIR program participation could provide a important pathway to secure federal contracts. The company's market entry timing is advantageous, particularly as geopolitical tensions drive increased defense spending and demand for autonomous systems.

The focus on gas-powered variants addresses a specific market gap in long-endurance operations, where battery-powered solutions fall short. This differentiation, combined with NDAA compliance and domestic manufacturing, could provide ZenaTech with a competitive edge in capturing market share from established players.

VANCOUVER, British Columbia, Jan. 14, 2025 (GLOBE NEWSWIRE) -- ZenaTech, Inc. (Nasdaq: ZENA) (FSE: 49Q) ("ZenaTech"), a technology company specializing in AI (Artificial Intelligence) drones, Drone as a Service, enterprise SaaS and Quantum Computing solutions announces that its subsidiary company ZenaDrone has begun work on an all gas-powered version of the ZenaDrone 1000 drone to enable longer range flight times specifically for US Defense and NATO market use. The company plans to submit a proposal to test this model with the US Air Force through the SBIR (Small Business Innovation Research) Long-Duration Aircraft Program.

“Market analysts estimate the global military drone market to be worth US $14 billion which includes the $5 billion US market, and this is expected to grow to $47 billion by 2032. We are committed to an innovative product roadmap for the ZenaDrone 1000 to meet evolving defense industry needs for long-endurance drone solutions providing real-time intelligence and versatile mission capabilities while minimizing risks to personnel and operational costs. We look forward to a successful SBIR program submission which would help us build the necessary relationships and a pathway to commercialization and federal contracts,” said CEO, Dr. Shaun Passley Ph.D.

Gas-powered drones offer distinct advantages for defense applications due to their extended flight durations, higher payload capacities, and superior operational ranges compared to battery-powered counterparts. Gas-powered medium-size drones are well-suited for long-endurance missions such as reconnaissance and border patrol, where the ability to remain airborne for extended periods is critical.

The SBIR program for the US Air Force supports small businesses in developing innovative technologies that meet the Air Force's operational needs, offering funding and resources to create, prototype, and potentially transition solutions into military applications, such as advanced drones for surveillance, logistics, or combat.

ZenaDrone 1000 is an autonomous multifunction drone offering stable flight, maneuverability, heavy lift capabilities, innovative software technology, sensors, AI, and purpose-built attachments, along with compact and rugged hardware engineered for industrial and military use. The company previously completed two paid trials with the US Air Force and the US Navy Reserve for logistics and transportation applications carrying critical cargo, such as blood, in the field.

ZenaDrone plans to manufacture and assemble its “Made in America” drones for the US Defense and NATO market in Arizona where it is currently conducting aerial operations and testing. The company previously announced that its supply chain is fully NDAA (National Defense Authorization Act) compliant and that it plans to apply for Green UAS (Unmanned Aerial System) followed by Blue UAS certification, an approved supplier list for drone companies.

NDAA compliance refers to adhering to the provisions outlined in the National Defense Authorization Act, which is a set of US federal laws passed every year that specify the budget and expenditures for the Department of Defense (DoD) and address growing cybersecurity concerns. For a product to be NDAA compliant, it must not be produced by a set list of Chinese manufacturers, which extends to the chipsets, cameras, displays and other technology used.

The Blue UAS (Unmanned Aerial System) program is a stringent government approved supplier list of drone companies that wish to do business with the US DoD; suppliers including ZenaDrone must meet strict NDAA cybersecurity and supply chain sourcing requirements. The Green UAS program is essentially the same as the Blue UAS program but has a more streamlined and faster certification process without the specifications on country of origin.

About ZenaTech

ZenaTech (Nasdaq: ZENA) (FSE: 49Q) is a technology company specializing in AI drones, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing 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 surveying processes. With enterprise software customers using branded solutions in law enforcement, health, government, and industrial sectors, and drones being implemented in these plus agriculture, defense, and logistics sectors, ZenaTech’s portfolio of solutions helps drive exceptional operational efficiencies, accuracy and cost savings. The company operates through seven global offices in North America, Europe, Taiwan, and UAE, and is growing a DaaS business model and 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, Quantum Computing, and other software and hardware innovations. Created to revolutionize the hemp farming sector, its specialization has grown to multifunctional drone solutions for industrial surveillance, monitoring, inspection, tracking, process automation and defense applications. Currently, the ZenaDrone 1000 drone is used for crop management applications in agriculture and critical field cargo applications in the defense sector, and the IQ Nano indoor drone is used for inventory management in the warehouse and logistics sectors.

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; the ability to complete any contemplated acquisitions; 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 is the market potential for ZenaTech's (ZENA) military drone program?

The global military drone market is currently worth $14 billion, including $5 billion in the US market, with projected growth to $47 billion by 2032.

Where will ZenaTech (ZENA) manufacture its military drones?

ZenaTech plans to manufacture and assemble its 'Made in America' drones in Arizona, where it currently conducts aerial operations and testing.

What military contracts has ZenaTech (ZENA) already secured?

ZenaTech has completed two paid trials with the US Air Force and US Navy Reserve for logistics and transportation applications, carrying critical cargo like blood in the field.

What certifications is ZenaTech (ZENA) pursuing for military contracts?

ZenaTech plans to apply for Green UAS certification followed by Blue UAS certification, which are required for becoming an approved supplier for the US Department of Defense.

What advantages does ZENA's gas-powered drone offer over battery-powered versions?

The gas-powered drone offers extended flight durations, higher payload capacities, and superior operational ranges compared to battery-powered counterparts, making it suitable for long-endurance missions.