Safe Pro Group (SPAI) Registration Filing summary

Company overview and business model

• Operates three business units: AI-powered drone imagery analysis, mission-critical drone services, and manufacturing of ballistic protective equipment for government, enterprise, and NGO clients.

• Recent acquisitions expanded offerings: Safe-Pro USA (ballistic protection), Airborne Response (drone services), and Safe Pro AI (AI/ML software for drone data).

• AI platform supports applications in demining, infrastructure inspection, and public safety, with field use in Ukraine and contracts with U.S. government agencies.

• Ballistic protection products are U.S.-made, meet government/NATO standards, and are sold under a 20-year GSA contract.

• Drone services include disaster response, infrastructure inspection, and autonomous operations for public safety and utilities.

Financial performance and metrics

• Q1 2024 net loss: $1.14M; Q1 2023 net loss: $0.48M; accumulated deficit as of March 31, 2024: $7.97M.

• FY 2023 net loss: $6.31M; FY 2022 net loss: $0.51M; FY 2023 revenue: $0.92M (down 20% YoY).

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

• Cash as of March 31, 2024: $0.4M; negative working capital: $1.05M.

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

Use of proceeds and capital allocation

• Estimated net proceeds: $5.1M (up to $5.9M with full over-allotment), assuming $5.00/share IPO price.

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