Financial Performance - Revenue for the six months ended June 30, 2025, was CAD 3,377,316, a significant increase from CAD 962,428 in the same period of 2024, marking a growth of 251%[4] - Net loss for the six months ended June 30, 2025, was CAD 10,731,830, compared to a loss of CAD 377,466 in the same period of 2024, indicating a substantial increase in losses[4] - General and administrative expenses for the six months ended June 30, 2025, totaled CAD 10,279,137, up from CAD 1,025,324 in the same period of 2024, a rise of 901%[4] - The company reported a basic loss per share of CAD (0.31) for the six months ended June 30, 2025, compared to CAD (0.02) in the same period of 2024[4] - The company experienced a cash outflow from operating activities of CAD 10,842,797 for the six months ended June 30, 2025, compared to CAD 1,289,080 for the same period in 2024[10] Assets and Liabilities - Total assets increased to CAD 52,937,589 as of June 30, 2025, up from CAD 34,646,359 as of December 31, 2024, representing a growth of 52%[2] - Total liabilities rose to CAD 21,043,122 as of June 30, 2025, compared to CAD 12,827,016 as of December 31, 2024, reflecting a 64% increase[3] - Cash reserves increased to CAD 10,286,027 as of June 30, 2025, up from CAD 3,754,075 as of December 31, 2024, representing a growth of 174%[2] - Long-term assets grew to CAD 37,660,840 as of June 30, 2025, compared to CAD 28,367,882 as of December 31, 2024, an increase of 33%[3] - The total shareholders' equity rose to CAD 31,894,467 as of June 30, 2025, compared to CAD 21,819,343 as of December 31, 2024, reflecting a growth of 46%[3] Acquisitions and Investments - The company issued shares for indoor drone technology amounting to CAD 900,000 and for the conversion of debt totaling CAD 1,629,000 during the six months ended June 30, 2025[6] - The Company acquired ZooOffice, Inc., Ecker Capital, LLC., and several patents from Epazz in Q4 2024, issuing Common Shares, Super Voting shares, and preferred shares as consideration[20] - ZenaTech acquired six land surveying companies, which are expected to integrate drone technology into their operations, reducing reliance on traditional surveying methods[34] - The Company plans to open a manufacturing facility in Nevada, USA, and sales offices in Germany, Ireland, UAE, and the UK, while negotiating with potential drone clients in Europe, Asia, and South America[41] - ZenaTech acquired the Drone Assembly Patent for an undisclosed number of shares, enhancing the capabilities of the ZenaDrone 1000[68] Revenue Streams - ZenaTech's revenue primarily comes from software licensing and support agreements, representing approximately 90% of total revenue[90] - Custom software programming contributes about 10% of the company's revenue, with projects typically completed within 6-8 weeks[91] - Total revenue for enterprise software for the six months ended June 30, 2025, was $1,393,968, with the largest contribution from the USA at $1,345,210[99] - Drone as a Service generated revenue of $1,983,348 for the six months ended June 30, 2025, all from the USA[99] Financial Instruments and Accounting - ZenaTech's financial instruments are accounted for according to IFRS 9, with classifications based on the business model for managing financial assets[75] - The company recognizes impairment losses for indefinite-life intangibles and goodwill at least annually[72] - ZenaTech's collection policy includes creating a reserve for uncollected accounts receivable based on management's experience[54] Staffing and Operations - The company currently employs 35 staff and utilizes 300 contractors through the management services agreement, totaling 335 personnel[101] - The company is testing drone technology in the UAE, US, Ireland, and plans to start testing in Turkey soon[97] Intangible Assets and Goodwill - Total intangible assets amounted to $5,469,833, with goodwill contributing $3,999,052[199] - The total goodwill from acquisitions is $3,999,052, with a breakdown of $2,468,722 from PacePlus and $456,860 from Wallace[199] - The company has fully amortized intangibles for ZenaPay, SystemView, and ZigVoice as of December 31, 2024[200] - Intangible costs from newly acquired companies Weddle, KJM, and Othership began amortization in Q2 2025[200] Market Position and Future Outlook - ZenaTech's drone as a service (DaaS) segment became a separate financial reporting segment in 2025, reflecting the Company's expansion into the drone industry[21] - The Company anticipates that drone-based land surveying will grow, leading to a decrease in conventional land surveys as a percentage of overall business[34] - ZenaTech is focused on expanding its expertise in quantum computing applications through the acquisition of Othership, Limited, enhancing its capabilities in AI drone and enterprise SaaS areas[25]
ZenaTech, Inc.(ZENA) - 2025 Q2 - Quarterly Report