Safe Pro Group (SPAI) Registration Filing summary

Company overview and business model

• Operates three business units: AI/ML software for drone imagery, mission-critical drone services, and manufacturing of ballistic protective equipment.

• Provides AI-powered object detection, aerial managed services, and personal protection equipment to government, enterprise, and NGO clients.

• Recent acquisitions include Safe-Pro USA (ballistic protection), Airborne Response (drone services), and Safe Pro AI (AI/ML software).

• AI technology is used for landmine/UXO detection, infrastructure inspection, and agricultural analysis.

• Contracts with major clients such as Florida Power & Light and the United Nations Development Programme.

Financial performance and metrics

• For the quarter ended March 31, 2024: revenue $307,653, net loss $1,143,860, accumulated deficit $7,966,150.

• For the year ended December 31, 2023: revenue $917,720, net loss $6,314,649, accumulated deficit $6,822,290.

• Gross profit margin for Q1 2024 was 41.4%; for 2023, 33.9%.

• Cash as of March 31, 2024: $399,607; negative working capital of $1,052,769.

• Operating expenses increased due to expansion, R&D, and IPO preparation.

Use of proceeds and capital allocation

• Estimated net proceeds of $5.1 million (or $5.9 million with full over-allotment) at $5.00/share IPO price.

• Proceeds allocated to debt repayment ($236,500), working capital, and general corporate purposes.

• Debt to be repaid includes notes to related parties and accrued executive compensation.