Drones are becoming widely utilized in many industries. Thanks to developments in AI, drones are becoming more autonomous and requiring less human control. More companies are focusing on the development of drones and increasing the range of capabilities and tasks they could achieve. ZenaTech (Nasdaq: ZENA) is a Canadian company that went public last October by listing on Nasdaq. The company was founded in 2017, and its website says it’s specialized in drones and that it combines drone technology with AI and quantum computing. So with this statement, it’s safe to call it a tech stock. ZenaTech’s stock is currently trading at the price of $4.73 and a market cap of $84 million, which makes it a penny stock by definition.
ZenaDrones
ZenaTech operates its drone business through its subsidiary ZenaDrones. The website shows that it currently owns three drone platforms: ZenaDrone 1000, ZenaDrone IQ, and the ZenaDrone Nano. The ZenaDrone 1000 is a large outdoor drone, which the company says has heavy-lift capabilities and extended flight time. The other two drones are designed for indoor inspection and warehouse management.
ZenaTech acquisitions and Drones as a Service
ZenaDrones offers a Drones as a Service model (DaaS). This model provides clients with drone’ solutions without having to own and operate the drones. The company is currently making a series of acquisitions as it is buying land survey businesses to provide its products and services through. ZenaTech announced 2 days ago that it signed a letter of intent to acquire its fifth land survey company.
Government and defense contracts
The company mentioned in multiple press releases that it is actively pursuing compliance requirements to achieve Blue UAS certification. Once the drones are certified, they will be approved by the Department of Defense for government use. In October, the company announced that it’s establishing a new manufacturing subsidiary in Taiwan, named Spider Vision Sensors Ltd., to make sensors and components that will ensure the drones’ compliance with the National Defense Authorization Act (NDAA). Also in its announcement of signing an LOI to acquire its fifth survey company that we mentioned earlier, the company mentioned that it intends to utilize this acquisition to assist law enforcement and government agencies with border protection and addressing illegal immigration issues.
ZenaTech software business
Other than drones, ZenaTech has an enterprise software division that offers specialized software solutions for workforce management, customer relation management, and health record management. ZenaTech’s website lists quantum computing as a solution, but it describes it as using Amazon’s AWS quantum computing services to combine it with their drone technology in order to provide advanced solutions.
Should you invest in ZenaTech stock?
Penny stocks come with higher risk, and it may be too early to invest in the company. The company’s direction is not yet clear as it’s targeting a wide range of industries, and this approach can be very resource-consuming. The company has a very low revenue of $2 million in the past 12 reported months, and it’s not clear through which business it was generated. It is also very low compared to its market cap of $84 million. We will be watching the company closely for the upcoming months and see if they hit important milestones such as getting their drones certified for use by the US military or receiving actual contracts.