ZenaTech’s ZenaDrone Subsidiary Develops and Tests Proprietary Drone Communications System Enabling Secure and Reliable Communications for US Defense Applications

Rhea-AI Summary

ZenaTech (NASDAQ: ZENA) announces the development and testing of 'DroneNet', a proprietary drone communications management system through its subsidiary ZenaDrone. This system enables secure and direct drone communications without relying on internet, cellular, or satellite connectivity.

The system is specifically designed for the company's ZenaDrone 1000 and IQ series drones. The ZenaDrone 1000, a VTOL quadcopter measuring 12X7 feet, can lift up to 40 kilos and features AI, advanced sensors, and purpose-built attachments for industrial and defense applications.

ZenaDrone has previously conducted paid trials with the US Air Force and Navy for critical cargo transport. The company plans to manufacture DoD-compliant drones in Phoenix, Arizona, meeting NDAA requirements for cybersecurity and component origin specifications. Future development plans include creating proprietary microchips with multilayer encryption for US Defense applications.

Positive

• Development of proprietary DroneNet communication system reducing third-party dependencies
• Previous successful paid trials with US Air Force and Navy
• NDAA-compliant supply chain positioning for US defense contracts
• Plans for US-based manufacturing facility in Phoenix

Negative

• System still in testing phase, not yet fully operational
• Significant competition in military drone market

Insights

Defense Technology Analyst

The development of DroneNet marks a strategic pivot that significantly enhances ZenaTech's competitive position in the defense sector. The proprietary communications system addresses three critical military requirements: secure operations in GPS-denied environments, NDAA compliance, and supply chain control. This technological advancement, combined with previous successful trials with the US Air Force and Navy, positions ZenaTech to compete more effectively in the $98 billion military drone market.

The decision to develop proprietary technology rather than rely on third-party solutions offers several strategic advantages. First, it provides complete control over the supply chain, important for maintaining NDAA compliance - a prerequisite for Department of Defense contracts. Second, internal development enables cost optimization and customization flexibility, potentially improving profit margins on future military contracts.

The planned manufacturing facility in Phoenix, Arizona, combined with the development of NDAA-compliant microchips, demonstrates a comprehensive strategy to meet stringent defense sector requirements. The ZenaDrone 1000's specifications, including its 40-kilo payload capacity and VTOL capabilities, align well with military logistics and reconnaissance requirements, particularly in contested environments where traditional communication infrastructure may be compromised.

Previous successful trials in critical military applications, such as blood transport, validate the platform's reliability and suggest potential for expanded defense applications. The development of proprietary encrypted communications technology could accelerate adoption in sensitive military operations, where communication security is paramount.

VANCOUVER, British Columbia, Feb. 13, 2025 (GLOBE NEWSWIRE) -- ZenaTech, Inc. (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a technology company specializing in AI (Artificial Intelligence) drones, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing solutions, announces that its subsidiary ZenaDrone has developed and is currently testing a proprietary drone communications management system called “DroneNet” that enables direct and secure drone communications in situations without reliable internet, cellular or satellite communications. The internally developed system is specifically built for use with the Company’s ZenaDrone 1000 and IQ series of drone products. A drone communications system is a two-way link between a drone and its base station used to direct the drone and relay real-time drone video and sensor data.

“We believe our proprietary DroneNet communications system will improve both the reliability and performance of our drones ensuring we are not dependent on third-party products with compatibility issues. This internal development ensures we gain more customization of our products, cost management, and control of our supply chain, all of which results in what we believe to be superior drone solutions. Once we’ve tested this initial version, our plan for future advancements includes developing and testing our own microchips with multilayer encryption suitable for NDAA-compliant use required for US Defense applications,” said CEO Shaun Passley, Ph.D.

Drones used by the military for intelligence, surveillance and reconnaissance applications require reliable communications systems for uninterrupted data transmission, mission effectiveness, and operational security. Drones must relay real-time video, sensor data, and telemetry to command centers, allowing defense operators to make time-sensitive decisions. This is especially critical for Beyond Visual Line of Sight (BVLOS) operations, where drones operate over longer distances often in harsh or contested environments. Without secure and resilient communications links, drones risk losing control, can face signal jamming, or data latency, which can compromise mission success. Advanced proprietary communication solutions using satellite and 4G help ensure connectivity in GPS-denied or high-interference environments and can safeguard data against jamming and cyber threats.

The ZenaDrone 1000 is an autonomous drone, in a VTOL (Vertical Takeoff and Landing) quadcopter design with eight rotors; it is considered a medium-sized drone measuring 12X7 feet in size. It is designed for stable flight, maneuverability, heavy lift capabilities up to 40 kilos, incorporating innovative software technology, AI, sensors, and purpose-built attachments, along with compact and rugged hardware engineered for industrial and defense use.

ZenaDrone previously completed paid trials with both the US Air Force and the US Navy using its drones for carrying critical cargo — such as blood — in the field. ZenaDrone plans to manufacture and assemble its US Department of Defense (DoD) drones in Phoenix, Arizona.

ZenaDrone solutions for the US military must be NDAA (National Defense Administration Act) compliant, a requirement with strict drone cybersecurity and country of origin specifications, including chipsets, cameras, and components, which excludes a set list of Chinese manufacturers. The company previously announced that its supply chain is NDAA-compliant.

About ZenaTech

ZenaTech (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) is a technology company specializing in AI drone, 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, the IQ Nano indoor drone is used for inventory management in the warehouse and logistics sectors, and the IQ Square is an indoor/outdoor drone designed for land survey and inspections use in commercial and defense sectors.

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. 

FAQ

What is ZenaTech's DroneNet communication system and how does it work?

DroneNet is ZenaTech's proprietary drone communications management system that enables secure, direct drone communications without requiring internet, cellular, or satellite connectivity. It's specifically designed for use with ZenaDrone 1000 and IQ series products.

What are the key features of the ZenaDrone 1000 military drone?

The ZenaDrone 1000 is a VTOL quadcopter measuring 12X7 feet with eight rotors, capable of lifting up to 40 kilos. It features AI technology, advanced sensors, purpose-built attachments, and is designed for industrial and defense applications.

How is ZENA positioning itself in the US defense market?

ZENA is positioning itself by ensuring NDAA compliance, planning US-based manufacturing in Phoenix, Arizona, developing proprietary communication systems, and has already completed paid trials with the US Air Force and Navy.

What military applications has ZenaDrone been tested for?

ZenaDrone has completed paid trials with both the US Air Force and US Navy, specifically for carrying critical cargo such as blood in the field.

What are ZENA's future development plans for military applications?

ZENA plans to develop and test proprietary microchips with multilayer encryption suitable for NDAA-compliant use in US Defense applications, and establish manufacturing operations in Phoenix, Arizona.