Safe Pro Group (SPAI) Registration Filing summary

Company overview and business model

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

• Focuses on government, enterprise, and NGO customers for security and protection solutions.

• AI platform (SpotlightAI) processes drone images for threat detection, with significant use in Ukraine for UXO identification.

• Ballistic protection products are sold to military, law enforcement, and humanitarian organizations, with GSA contract access.

• Drone services include infrastructure inspection and emergency response, with key contracts in Florida.

Financial performance and metrics

• Fiscal year 2024 revenue was $2.17 million, up 136.4% from 2023; net loss was $7.43 million, compared to $6.31 million in 2023.

• Gross profit margin improved to 41.8% in 2024 from 33.9% in 2023, driven by higher-margin drone services.

• As of March 31, 2025, cash was $912,219, with working capital of $613,628 and accumulated deficit of $18.2 million.

• Q1 2025 revenue was $184,802, down 39.9% year-over-year, with a net loss of $3.97 million.

• Operating expenses increased significantly in 2024 and Q1 2025, mainly due to stock-based compensation and professional fees.

Use of proceeds and capital allocation

• Proceeds from warrant exercises (up to $1.5 million) will be used for working capital.

• No proceeds from the resale of shares by selling shareholders; only from cash warrant exercises.

• Management has broad discretion over the use of proceeds from warrant exercises.