TORONTO - ZenaTech, Inc. (NASDAQ:ZENA), a company specializing in AI drone solutions, announced Wednesday that its subsidiary, ZenaDrone, has been granted an exemption by the Federal Aviation Authority (FAA) for commercial drone operations in the United States. This exemption allows for visual line-of-sight applications and data collection and is subject to certain conditions and limitations.
The approval marks a significant step for ZenaTech as it facilitates live testing and evaluation of the ZenaDrone 1000 with US partners and potential customers. The company can now demonstrate the drone's capabilities at US trade shows and exhibits.
Dr. Shaun Passley, CEO of ZenaTech, highlighted the importance of this milestone for collaboration with US customers and partners, especially in refining the company's drone solutions, distribution, and manufacturing plans within the country. He also noted that the exemption supports efforts to accumulate flight hours, obtain air-worthiness accreditation, and enhance the credibility of their solutions.
ZenaDrone's partnership with Night Sun, a Native American Corporation, is poised to benefit from this development. The joint venture aims to manufacture and sell drones for use by Native American tribes, focusing on applications like search and rescue, firefighting, cargo delivery, and land surveying.
The ZenaDrone 1000 is designed for industrial use, featuring stable flight, maneuverability, heavy lift capabilities, and innovative software technology. It is currently utilized in Ireland for smart farming and has been tested with the US military for delivery of critical medical supplies.
ZenaTech, with a portfolio of over 100 enterprise software customers in various sectors, operates across North America, Europe, and the UAE. The company's growth strategy involves leveraging its expertise in software development and drone manufacturing to enhance operational efficiencies and cost savings for its clients.
This announcement is based on a press release statement from ZenaTech, Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The forward-looking statements in the press release are made as of the date thereof and are subject to change.
InvestingPro Insights
ZenaTech's recent FAA exemption for commercial drone operations in the U.S. marks a significant milestone for the company, potentially opening new revenue streams and market opportunities. However, investors should be aware of some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, ZenaTech's revenue for the last twelve months as of Q2 2024 stood at $1.41 million, with a concerning revenue growth decline of -16.14% over the same period. This decline in revenue growth is particularly relevant given the company's recent regulatory breakthrough, which investors will hope can help reverse this trend.
InvestingPro Tips highlight that ZenaTech is not profitable over the last twelve months, which aligns with the company's current focus on expansion and regulatory approvals rather than immediate profitability. The stock generally trades with low price volatility, which could be attractive for investors looking for stability as the company navigates its growth phase.
It's worth noting that ZenaTech is trading at high valuation multiples across various metrics, including EBIT, EBITDA, revenue, and Price/Book. This suggests that the market has high expectations for the company's future performance, likely factoring in potential growth from initiatives like the recent FAA exemption.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of ZenaTech's financial position and market potential.
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