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ZenaTech Accelerates US Defense Engagement Efforts with Customer Field Demonstrations and Planned ZenaDrone Pilots in 2026

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ZenaTech (Nasdaq: ZENA) said its ZenaDrone subsidiary is accelerating US defense engagement with field demonstrations and planned pilot agreements in 2026. The company opened a Washington, D.C.-area office to support federal capture and staffed business development roles, and is commissioning an expanded Mesa, Arizona drone assembly, production, and testing facility expected to be operational in Q1 2026. ZenaTech also established Zena AI in Baton Rouge for AI and autonomy R&D. Flagship systems in testing and cybersecurity certification readiness include the ZenaDrone 1000 (VTOL, ~40 kg lift), IQ Nano, and IQ Square.

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Positive

  • Planned pilot agreements with US defense in 2026
  • Mesa, Arizona facility operational target: Q1 2026
  • New Washington, D.C. office to drive federal capture
  • Established Zena AI R&D center in Baton Rouge

Negative

  • Flagship drones remain in testing and cybersecurity certification readiness
  • Planned pilots and contract awards are prospective and not guaranteed

Key Figures

Payload capacity ~40 kg ZenaDrone 1000 lift capability
Q3 2025 revenue growth 1,225% YoY Reported in 6-K for Q3 2025
9M 2025 revenue growth 6x First nine months 2025 vs prior period
Q2 2025 revenue growth over 500% YoY Reported in October 15, 2025 6-K
H1 2025 revenue growth over 250% First six months 2025 vs prior year
Target market size USD $5.5 Billion Public safety market for IQ Square drone
GG Mars ownership 6.694% Stake in ZenaTech common stock per Schedule 13D
Debt conversion shares 430,000 shares at $1.752 Convertible line of credit conversion on April 13, 2025

Market Reality Check

$3.01 Last Close
Volume Volume 772,406 is modestly above the 20-day average of 645,282 (relative volume 1.2x). normal
Technical Shares at $2.88 are trading below the 200-day MA at $3.96, after a -6.49% move over 24 hours.

Peers on Argus

ZENA fell -6.49% while close peers were mixed: AISP -6.09%, REKR -4.57%, BKKT -7.53% versus HPAI +7.09% and SANG +2.5%, suggesting stock-specific pressure rather than a unified sector move.

Historical Context

Date Event Sentiment Move Catalyst
Dec 11 DaaS acquisition Positive -1.5% Offer to acquire Mountain West surveying firm expanding DaaS footprint.
Dec 09 UK acquisition Positive +3.4% Closed UK telecom tower design firm acquisition entering UK DaaS market.
Dec 04 Australia expansion Positive +5.6% Offer to acquire Australian surveying firm for APAC DaaS expansion.
Dec 02 US acquisition Positive -3.6% Closed Smith Surveying Group acquisition to grow US DaaS capabilities.
Nov 25 Defense office news Positive +6.1% Opened Washington, D.C.-area ZenaDrone office and tripled Mesa footprint.
Pattern Detected

Recent news has generally been positive (acquisitions, defense expansion), with mixed price reactions: three aligned upward moves and two downside divergences.

Recent Company History

Over the past months, ZenaTech has focused on building a global Drone as a Service network through acquisitions in Florida, Australia, the UK, and the US Mountain West, while expanding defense-oriented operations. A Nov 25 update detailed a Washington, D.C.-area office and tripling of Mesa, AZ manufacturing for US defense work. Regulatory filings highlighted record Q3 1,225% year-over-year revenue growth and continued multi-hundred-percent growth earlier in 2025. Today’s announcement extends that trajectory by emphasizing deeper US defense engagement and planned 2026 pilots.

Market Pulse Summary

This announcement underscores ZenaTech’s strategy to deepen US defense engagement via field demonstrations and planned 2026 pilots, supported by expanded Washington, D.C.-area presence and Mesa, Arizona production. It builds on earlier disclosures of Q3 1,225% year-over-year revenue growth and multiple DaaS acquisitions across the US, UK, and Australia. Investors may watch for signed pilot and production contracts, progress on NDAA-compliant manufacturing, and continued scaling of platforms like the ZenaDrone 1000 and IQ series as indicators of sustained growth momentum.

Key Terms

drone as a service technical
"expanding Drone as a Service (DaaS), enterprise SaaS, and Quantum Computing solutions"
Drone as a service (DaaS) is a business model where companies provide drone flights, sensors, data collection and analysis on a subscription or contract basis instead of selling the aircraft outright. For investors it matters because DaaS can create recurring revenue and scalable service margins like a rented contractor or utility, while concentrating risks around regulation, data security and operational reliability that can affect future cash flow and growth.
vtol technical
"a medium-sized VTOL (Vertical Takeoff and Landing) rugged construction drone"
VTOL stands for vertical take-off and landing and describes aircraft that can lift off and land straight up and down instead of needing a runway, like a helicopter combined with an airplane. Investors care because VTOL designs open new markets for short-range transport, air taxis, cargo delivery and defense applications, and they bring specific technical, regulatory and manufacturing risks and costs that can affect a company’s revenue potential and timeline for profits.
isr technical
"Designed for inspection, surveillance, and reconnaissance (ISR) applications"
ISR stands for socially responsible investing (from the French phrase Investissement Socialement Responsable) and means choosing stocks, bonds or funds based on environmental, social and governance criteria in addition to financial return. Like picking a brand that matches your values, ISR matters to investors because it helps align portfolios with personal or institutional priorities, can reduce exposure to companies with regulatory or reputational risks, and can influence demand and valuation for firms deemed more sustainable.
gps-denied environments technical
"built to operate in GPS-denied environments like warehouses or military infrastructures"
GPS-denied environments are situations where global positioning signals, like those from satellites, cannot be received or are intentionally blocked. This makes it difficult to determine precise location or navigate using standard GPS technology. For investors, such environments can pose risks for technology-dependent industries, as reliable location data is crucial for many modern applications and services.
ndaA-compliant regulatory
"NDAA-compliant defense technologies"
NDAA-compliant means that a product, supplier, or company meets the rules in the U.S. National Defense Authorization Act that bar certain foreign technologies and require specific security practices. For investors, compliance matters because it determines whether a business can sell to the U.S. government, avoid fines or bans, and reduce supply‑chain or reputational risk—similar to passing a background check that lets you bid on a sensitive contract.
quantum computing technical
"enterprise SaaS, and Quantum Computing solutions"
Quantum computing is a type of advanced technology that uses the principles of quantum physics to perform calculations much faster than traditional computers. It can process vast amounts of information simultaneously, potentially solving complex problems that are currently impossible or take too long with regular computers. For investors, this technology could lead to breakthroughs in areas like cryptography, data analysis, and optimization, impacting financial markets and security systems.

AI-generated analysis. Not financial advice.

VANCOUVER, British Columbia, Dec. 16, 2025 (GLOBE NEWSWIRE) -- ZenaTech, Inc. (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a technology business solution provider specializing in AI (Artificial Intelligence) drone, Drone as a Service (DaaS), enterprise SaaS, and Quantum Computing solutions, provides an update on its ZenaDrone drone solutions subsidiary, reflecting accelerating efforts and growing engagement with US defense government stakeholders. The company also reports progress towards providing field demonstrations leading to planned pilot agreements in 2026.

“Our active discussions with US defense agency program managers are on track to deliver opportunities for technical field demonstrations and planned pilot programs in 2026. We anticipate making announcements regarding ZenaDrone’s success in the first quarter of the coming year,” said Shaun Passley, Ph.D., ZenaTech CEO. “This accelerated engagement, combined with strategic investments across US manufacturing, AI innovation, and our drone platforms, reflects a deliberate and disciplined execution plan. Through ZenaDrone we are dedicated to supporting evolving mission needs with scalable, AI‑powered drone solutions to address national security priorities.”

ZenaTech’s multi-pronged approach to winning US defense and federal agency contracts is designed to meet growing demand for domestically produced, secure, and technologically advanced unmanned aerial systems that support critical military mission requirements. These range from inspection, surveillance, and reconnaissance to cargo logistics, inventory management, and emergency response.

ZenaTech has recently expanded and strengthened its US operations to support deeper government engagement, domestic manufacturing, and engineering collaboration for rapid deployment of drone services tailored to federal requirements. The opening of its new Washington, D.C.-area office places ZenaDrone at the epicenter of the federal government and defense community, meant to enable close coordination with military stakeholders, procurement officials, and congressional leaders. This strategic location supports early alignment on defense priorities and accelerates the pursuit of contract opportunities. The office is currently being staffed to lead ZenaDrone’s business development, capture, and program management activities—functions that are essential to driving the company’s defense revenue growth.

Simultaneously, the company is commissioning a significantly expanded Arizona footprint in the city of Mesa for US-based drone assembly, production, and testing expected to be operational in Q1 2026. This expansion ensures that ZenaDrone’s flagship drone platforms are manufactured to meet stringent US and NATO standards, reinforcing the Company’s commitment to American-made, NDAA-compliant defense technologies.

Further, in line with the White House’s AI Action Plan and accompanying Executive Orders, ZenaTech recently established Zena AI, Inc., a specialized AI division based in Baton Rouge, Louisiana for AI and autonomy development. This R&D center will drive the development of next-generation AI-driven solutions tailored for defense and homeland security missions, including autonomous navigation, multi-drone coordination, and real-time decision-making analytics.

ZenaDrone’s flagship advanced multi-mission drone systems for government and defense currently at various testing and cybersecurity certification readiness stages include: 

  • The ZenaDrone 1000, a medium-sized VTOL (Vertical Takeoff and Landing) rugged construction drone capable of lifting ~40 kg, with AI-enabled autonomy, and secure communications via its proprietary Drone Net system. Designed for inspection, surveillance, and reconnaissance (ISR) applications, critical cargo applications, and border patrol via a gas version currently under development, being designed for longer flights. It has undergone paid trials with both the US Air Force and Navy Reserve for applications, including critical cargo delivery such as temperature controlled medical supplies
  • The IQ Nano, a compact indoor drone (starting size 20″×20″), built to operate in GPS-denied environments like warehouses or military infrastructures for inventory management via barcode scanning and security applications, it features obstacle avoidance and AI-driven drone swarms or fleets
  • The IQ Square, a VTOL drone (starting size 40” X40”) engineered for line-of-sight land surveys, infrastructure inspections, road and bridge inspections, and defense reconnaissance tasks

The US military procurement cycle for drone solutions typically begins with early engagement and capability demonstrations, followed by requirement alignment and evaluation, progression into pilot or prototype programs, and ultimately acquisition processes that lead to contract awards and scaled deployment. Through accelerated engagement efforts, ZenaDrone is focused on being positioned as a trusted partner and supplier to US defense and homeland security agencies, fully aligned with evolving national security priorities and federal policy directives.

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 global offices in North America, Europe, Taiwan, and UAE, and is growing its US DaaS business and network of locations through acquisitions.

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 and security in the warehouse and logistics sectors, and the IQ Square is an outdoor drone designed for land surveys 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, IQ Square and IQ Nano; ZenaTech's ability to develop products for markets as currently contemplated; 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 and other related risks ‎‎‎and uncertainties disclosed under the ‎heading “Risk Factors“ ‎‎‎‎in the Company’s Form F-1, Form 20-F and other filings filed ‎‎‎with the United States Securities and Exchange Commission (the “SEC”) on EDGAR through the SEC’s website at www.sec.gov. The Company undertakes ‎‎‎no obligation to update forward-‎looking ‎‎‎‎information except as required by applicable law. Such forward-‎‎‎looking information represents ‎‎‎‎‎managements’ best judgment based on information currently available. ‎‎‎No forward-looking ‎‎‎‎statement ‎can be guaranteed and actual future results may vary materially. ‎‎‎Accordingly, readers ‎‎‎‎are advised not to ‎place undue reliance on forward-looking statements or ‎‎‎information.‎


FAQ

What did ZenaTech (ZENA) announce about ZenaDrone pilots in 2026?

ZenaTech said ZenaDrone is planning field demonstrations and pilot agreements with US defense stakeholders in 2026.

When will ZenaTech's Mesa, Arizona drone production site be operational for ZENA?

The company expects the Mesa, Arizona assembly, production, and testing facility to be operational in Q1 2026.

How is ZenaTech positioning ZENA for US federal and defense engagements?

ZenaTech opened a Washington, D.C.-area office, expanded US operations, and set up an AI R&D center to support federal capture and compliance.

What are ZenaDrone's flagship systems mentioned by ZenaTech (ZENA)?

The announcement lists the ZenaDrone 1000 (VTOL, ~40 kg lift), the IQ Nano, and the IQ Square as flagship systems in testing.

Does ZenaTech (ZENA) state ZenaDrone has secured defense contracts?

No; the company describes active engagement, paid trials, and planned pilots but does not report awarded defense contracts.
ZenaTech, Inc.

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