Cytta Corp. - America's Drone Reckoning: National Security, Tariffs, and the Urgent Shift to Secure U.S.-Based Solutions

Rhea-AI Summary

Cytta Corp (OTCQB:CYCA) addresses critical national security concerns regarding Chinese-made drones in U.S. law enforcement. With new 170% tariffs on Chinese drones and mounting security risks of data transmission to foreign servers, U.S. agencies face pressure to transition from DJI drones. Cytta's CyttaCOMMS platform offers a cost-effective solution by retrofitting existing Chinese drones with secure American-made communication layers, preventing foreign data transmission. This approach allows agencies to maintain their current drone fleets while ensuring data sovereignty. The solution comes amid challenges in domestic drone manufacturing, including dependence on Chinese rare earth materials and limited U.S. production capacity. CyttaCOMMS has already gained acceptance among law enforcement agencies and represents a crucial bridge technology until American drone manufacturing can fully meet national demand.

Positive

• CyttaCOMMS platform provides immediate solution to secure Chinese drones without costly fleet replacement
• Already accepted by law enforcement agencies across the country
• Addresses urgent national security concerns while maintaining operational continuity
• Positions company strategically in growing market for drone security solutions

Negative

• Company trades on OTCQB market, indicating smaller market capitalization and potentially lower liquidity
• Success depends on government agencies' adoption rates and regulatory environment
• Faces potential competition from emerging domestic drone manufacturers
• Vulnerable to geopolitical tensions and trade policy changes

Recent moves by the U.S. government signal a major shift in how drone technologies are regulated and procured.

LAS VEGAS, NEVADA / ACCESS Newswire / June 17, 2025 / Cytta Corp.(OTCQB:CYCA), a publicly traded leader in national safety and communications technology, is proud to announce the recent Article in Officer.com magazine describing how our CyttaCOMMS technology is directly contributing to helping solve America's Drone problems at the National Security level.

America's Drone Reckoning Is Here. Chinese-made drones are silently collecting data - and the stakes just got higher. With new tariffs and rising national security concerns, the U.S. must act fast. This article breaks down why law enforcement and public safety agencies need to transition to secure, American-made drone technology-before it's too late.

https://www.officer.com/command-hq/technology/security-surveillance/uav-uas/press-release/55284256/americas-drone-reckoning-national-security-tariffs-and-the-urgent-shift-to-secure-us-based-solutions

Quoted from Officer.com Magazine

"As tensions between the United States and China continue to mount, the drone industry has found itself squarely in the crosshairs of a growing national security debate. With the majority of U.S. police departments still relying on Chinese-made drones-particularly DJI models-the vulnerabilities of foreign-controlled unmanned systems have become impossible to ignore.

Recent moves by the U.S. government signal a major shift in how drone technologies are regulated and procured. The Trump administration's announcement of sweeping new tariffs-including a cumulative 170% tariff on Chinese drones-is part of a broader push to bring critical technology back under American control. This builds on valid concerns that Chinese drones may be transmitting sensitive surveillance data back to foreign servers, compromising U.S. law enforcement and critical infrastructure operations.

Simultaneously, China has responded by imposing retaliatory sanctions on U.S. drone manufacturers and restricting exports of rare earth materials vital to aerospace and technology production. This tit-for-tat escalation underscores how drones have become a frontline issue not just in trade, but in the geopolitical race for tech dominance.

At the same time, Chinese drone developers are aggressively pursuing U.S. markets despite high tariffs, according to reports from the South China Morning Post. Their low-altitude aircraft are being positioned as high-value, cost-efficient alternatives, even as questions swirl about security risks and backdoor access.

This leaves U.S. agencies, especially law enforcement, in a difficult bind. Many are now under pressure to halt the use of DJI drones, but they lack the budget and infrastructure to replace entire fleets overnight-making immediate transitions both logistically and financially unfeasible. While the federal government is pushing for a transition to American-made alternatives, the U.S. drone manufacturing sector is still ramping up production capacity-and that's not a quick fix.

One of the biggest bottlenecks lies in sourcing the rare earth materials needed for drone electronics and power systems-many of which still come from China. Until domestic supply chains are fully built out, production timelines will be slow, and costs will remain high, placing added strain on already-stretched public safety budgets. For smaller law enforcement agencies and rural departments, upgrading to new American-made fleets may be financially out of reach.

That's where transitional solutions become crucial.

Given the widespread use of Chinese-manufactured drones across U.S. agencies-and the prohibitive cost of replacing entire fleets-the only immediate and scalable solution is to upgrade existing systems to prevent foreign data transmissions. Rather than removing DJI and similar drones from service, the more viable path is to retrofit them with secure, American-made communication layers that ensure mission-critical data remains within U.S. control. This urgent need has opened the door to a rapidly emerging technology market: one focused not on hardware replacement, but on data sovereignty through software and systems integration. Until the domestic drone ecosystem-like the DoD's Blue UAS program-can fully meet national demand, interim solutions like secure retrofit platforms will play a pivotal role in bridging the gap between policy and operational reality.

One small public company addressing this issue head-on is Cytta Corp.(OTCQB:CYCA), whose CyttaCOMMS platform is being expanded to block foreign data transmission from Chinese-manufactured drones. CyttaCOMMS, originally designed to deliver secure, real-time video and data communications for first responders, has already been accepted by law enforcement agencies across the country. The platform is now being enhanced to prevent Chinese drone systems from transmitting operational data back to foreign servers. This update empowers departments to continue using their existing drone fleets without compromising national security-offering a crucial, cost-effective alternative to full hardware replacement.

Rather than forcing agencies to abandon their DJI fleets, Cytta Corp. offers a secure bridge-allowing continued operations while ensuring that all mission-critical video and communication data remains encrypted, protected, and stored domestically. As American drone manufacturers race to scale, technological innovations provide a timely and practical way to ensure operational continuity and immediate compliance with evolving federal mandates.

The message is clear: America's drone future must be secure, sovereign, and strategically independent. Whether through policy, innovation, or transitional technologies, the industry is entering a pivotal era-where national security and technological agility must go hand in hand."

About Cytta Corp

Cytta Corp is a pioneering technology company specializing in developing and commercializing cutting-edge safety and security solutions, including CyttaCOMMS and CyttaCARES. Cytta's proprietary innovations redefine real-time intelligence, data security, and mission-critical communications for industries spanning defense, public safety, critical infrastructure, and enterprise operations.

Through Cytta Labs, their venture incubator, Cytta incubates, accelerates, combines, and spins out breakthrough technologies, transforming them into high-growth ventures. By seamlessly integrating proprietary product development, venture acceleration (like the bSafe partnership), and structured exit strategies, Cytta Corp is revolutionizing the future of safety, security, and intelligence on a global scale. Learn more at www.cytta.com.

For Cytta Corp:

Cytta Corp
Toll-Free: 1-877-CYTTAUS (298-8287)
Local: 1-740-CYTTAUS (298-8287)
Website: www.cytta.com
Email: info@cytta.com

SOURCE: Cytta Corp.

View the original press release on ACCESS Newswire

FAQ

What is Cytta Corp's solution for Chinese drone security concerns?

Cytta Corp's CyttaCOMMS platform retrofits existing Chinese-made drones with secure American-made communication layers to prevent foreign data transmission while allowing continued use of current drone fleets.

How does the new 170% tariff on Chinese drones affect U.S. law enforcement agencies?

The tariff makes purchasing new Chinese drones significantly more expensive, forcing agencies to seek alternatives while struggling with budget constraints and limited domestic options.

What are the main challenges in transitioning to U.S.-made drones?

Key challenges include high costs of fleet replacement, limited U.S. production capacity, and dependence on Chinese rare earth materials for drone manufacturing.

How does CYCA stock benefit from the U.S. drone security initiative?

CYCA is positioned to benefit by offering a cost-effective solution that allows agencies to secure existing Chinese drones, addressing an urgent national security need without requiring complete fleet replacement.

What is the current status of CyttaCOMMS adoption?

CyttaCOMMS has already been accepted by law enforcement agencies across the country and is being expanded to specifically block foreign data transmission from Chinese-manufactured drones.