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 for government, enterprise, and NGO clients.

• Acquired Safe-Pro USA (ballistic protection), Airborne Response (drone services), and Safe Pro AI (AI/ML for drone data) between 2022 and 2023.

• AI/ML platform (SpotlightAI) targets landmine/UXO detection, infrastructure inspection, and agricultural analysis.

• Ballistic protection products are GSA-certified and HUBZone qualified, serving U.S. and international customers.

• Drone services include critical infrastructure inspection, emergency response, and DaaR for public safety.

Financial performance and metrics

• Q1 2024 revenue: $307,653 (down 17.6% YoY); net loss: $1,143,860; accumulated deficit: $7,966,150 as of March 31, 2024.

• FY 2023 revenue: $917,720 (down 20.2% YoY); net loss: $6,314,649; negative working capital at year-end.

• Gross margin Q1 2024: 41.4%; FY 2023: 33.9%.

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

• Ongoing operating losses and negative cash flows raise substantial doubt about going concern.

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.

• 4.7% of proceeds to repay short-term debt; 95.3% for working capital and general corporate purposes, including accrued executive compensation.