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(NASDAQ: ZENA) responds to a transformative U.S. Department of Defense policy announced July 10, 2025, that dramatically accelerates the procurement of small military drones. The directive classifies Group 1-2 drones as expendable assets, eliminating previously mandated Green or Blue UAS certification. ZenaTech’s full drone portfolio—including the ZenaDrone 1000, IQ Square, and IQ Nano—is now eligible for direct purchase by field commanders for both training and combat missions. The policy sets an ambitious deployment timeline: experimental units by September 2025, squad-level implementation in FY2026, and full UAS training integration across the Department of Defense by 2027.
The company’s AI-enabled drones feature capabilities ranging from 40kg payload capacity to indoor operations in GPS-denied environments, supported by its proprietary DroneNet system and defense-tailored Drone-as-a-Service (DaaS) model.
POSITIVE TAKEAWAYS
- Pentagon policy removes certification barriers, enabling instantaneous unit-level procurement
- Drones classified as expendable assets simplify budgeting and accelerate adoption cycles
- Existing military validation through paid trials with US Air Force and Navy Reserve
- Defined 2025-2027 implementation timeline creates predictable demand pipeline
POTENTIAL CHALLENGES
- “Expendable” classification may pressure unit pricing and margins
- Lower regulatory barriers invite intensified competition
- Manufacturing scalability required to meet potential volume demand
Strategic Analysis
The Pentagon’s policy shift unlocks immediate pathways for ZenaTech’s pre-qualified drone ecosystem to accelerate military adoption.
Defense Secretary Pete Hegseth’s “Unleashing U.S. Military Drone Dominance” directive triggers a paradigm shift: By reclassifying Group 1-2 drones as expendable rather than durable assets, the Pentagon effectively transitions them from capital equipment to tactical consumables. This restructuring delivers three key advantages for ZenaTech. First, it abolishes Green/Blue UAS certification requirements that stalled deployments. Second, it empowers field commanders with unprecedented acquisition authority. Third, it treats drones as operational supplies—circumventing cumbersome procurement protocols.
The policy’s phased adoption provides ZenaTech with a rare demand roadmap: experimental battalions testing systems within 14 months, followed by squad-level deployments in FY2026, culminating in institutionalized UAS training by 2027. Such specificity is exceptional in defense procurement, offering manufacturers calibrated production signals.
ZenaTech’s portfolio uniquely aligns with each policy requirement. The combat-tested ZenaDrone 1000 handles critical transport missions, while IQ platforms serve specialized reconnaissance roles. Their integrated DroneNet communications infrastructure and DaaS subscription model meet the memo’s mandate for “prototype-friendly deployment” and simplified acquisition—allowing commanders to field commercial solutions without modification.
This strategic pivot—from high-cost platforms to attritable capabilities—mirrors insurgent warfare tactics where swarms of disposable drones overpower traditional defenses. For ZenaTech, it transforms the business calculus: Instead of fighting for scarce capital equipment budgets, their drones now compete in the ammunition category—a marketplace measured in volume rather than isolated procurements.
07/11/2025 – 10:03 AM
VANCOUVER, British Columbia—ZenaTech, Inc. (NASDAQ: ZENA) today announced its qualification under the Pentagon’s new drone procurement policy that removes regulatory hurdles for tactical unmanned aerial systems. The company’s complete drone portfolio requires no additional certification for direct military acquisition following Defense Secretary Pete Hegseth’s July 10 directive reclassifying Group 1-2 drones as expendable battlefield assets.
The policy—dubbed “Unleashing U.S. Military Drone Dominance”—mandates accelerated deployment of low-cost drones to frontline units. By categorizing these systems as consumables rather than military equipment, the change slashes bureaucratic barriers and decentralizes procurement to commanders actively engaged in combat training or operations.
“This fundamentally rewrites the rules of military drone acquisition,” stated CEO Shaun Passley. “Commanders can immediately deploy our rugged systems as cost-effectively as ammunition or medical supplies, dramatically shortening the innovation-to-battlefield cycle.”
ZenaTech’s defense-ready products include:
- The ZenaDrone 1000: Medium VTOL drone with 40kg payload capacity, combat-tested in Air Force/Navy Reserve critical cargo trials
- IQ Square: 40”×40” VTOL solution optimized for land surveillance and infrastructure inspection
- IQ Nano: Compact indoor drone engineered for GPS-denied security and inventory management using obstacle-avoidance AI
- Defense DaaS: Subscription-based drone operations for rapid force scaling
The Pentagon’s implementation calendar specifies experimental drone units operational by September 2025, squad-level adoption in FY2026, and institutional UAS training across all major combat exercises by 2027. ZenaTech is expanding manufacturing operations to support anticipated volume requirements.
About ZenaTech: Specializes in integrated drone, enterprise AI and quantum computing solutions deployed across defense, agriculture, and logistics sectors through seven global operations centers and its Drone as a Service (DaaS) ecosystem.
Key Implications
How does the policy affect ZenaTech’s competitive position?
The deregulation accelerates ZenaTech’s path to market through decentralized procurement, bypassing traditional defense contracting cycles as frontline commanders gain direct purchasing authority.
What prevents potential market saturation?
The company’s proprietary DroneNet communications suite, demonstrated military validation, and DaaS infrastructure create technical barriers to entry despite reduced certification requirements.
How will manufacturing scale meet demand?
ZenaTech already sources modular components from global suppliers. The expendable classification favors designs that optimize for rapid assembly over maximum durability.
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