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.

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

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

• Contracts with major clients such as Florida Power & Light and government agencies; awarded GSA MAS contract and HUBZone certification.

Financial performance and metrics

• For Q1 2024: revenue $307,653 (down 17.6% YoY), net loss $1,143,860, gross margin 41.4%.

• FY 2023: revenue $917,720 (down 20.2% YoY), net loss $6,314,649, gross margin 33.9%.

• Accumulated deficit as of March 31, 2024: $7,966,150; negative working capital of $1,052,769.

• Cash at March 31, 2024: $399,607; expects continued operating losses and negative cash flows.

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 midpoint.

• Proceeds allocated: $110,000 to debt repayment, remainder to working capital and general corporate purposes.

• Funds expected to cover at least two years of operations post-offering, subject to assumptions.