Safe Pro Group Inc. (SPAI)

A. Company Overview

Safe Pro Group Inc. is a Delaware corporation, established in December 2021, focusing on advancing security and protection technologies. The company operates three core business units that provide innovative solutions aimed at safeguarding individuals and organizations. The business model emphasizes the creation of a software-based ecosystem for analyzing drone data through proprietary artificial intelligence (AI), machine learning (ML), deep learning, and computer vision technologies. This integrated approach supports various sectors, including military, government, NGOs, and enterprise markets, enabling them to effectively address evolving security threats.

B. Products and Solutions

Safe Pro Group offers a diverse range of products and solutions categorized into three primary areas: AI and machine learning software technology, bullet and blast resistant personal protective equipment, and aerial managed services involving uncrewed aerial systems (UAS).

Artificial Intelligence and Machine Learning Software Technology

Under its Safe Pro AI subsidiary, the company develops AI-driven technologies specifically targeted towards military applications and defense modernization. This includes the innovative Safe Pro Object Threat Detection (SPOTD) technology, which utilizes advanced AI algorithms for small object detection and data analysis from drone-captured imagery. The software facilitates the rapid processing of images to generate actionable geospatial intelligence, improving situational awareness and operational effectiveness for end-users. Currently, the technology has processed over 2.4 million drone images, identifying more than 45,000 explosive threats amidst ongoing conflict situations, particularly in Ukraine.

Bullet and Blast Resistant Personal Protective Equipment

Safe-Pro USA LLC, a subsidiary of Safe Pro Group, specializes in the manufacturing of high-performance personal protective gear designed for military, law enforcement, and humanitarian aid sectors. The offerings include complete explosive ordnance disposal (EOD) systems, body armor, ballistic plates, and protective equipment for ground vehicles and aircraft. With over three decades of collective experience in defense contracting, Safe Pro USA ensures that its products meet or exceed stringent U.S. government and NATO standards.

Aerial Managed Services and Uncrewed Solutions

Airborne Response Corp, another subsidiary, focuses on contracted aerial services utilizing drones. Services include drone-assisted emergency response, infrastructure inspection, and custom aerial remote sensing operations. The company employs drones for real-time data acquisition and reporting, improving decision-making processes for various client sectors, including public safety, utilities, and insurance companies.

C. Operating Units

The company operates through three primary subsidiaries, each with specified technologies and expertise.

Safe-Pro USA LLC

Acquired in June 2022, Safe-Pro USA LLC specializes in developing and manufacturing ballistic protective equipment. They serve a variety of clients, including U.S. government contractors engaged in international demining operations, demonstrating a capability to rapidly prototype and customize protective solutions for diverse mission requirements.

Airborne Response Corp.

Acquired in August 2022, Airborne Response provides contract-based UAS services to an established customer base, including Florida Power & Light and Motorola Solutions. This unit has been instrumental in supporting disaster response operations following natural catastrophes and has recently expanded its service offerings to law enforcement agencies through the Drone as a First Responder program.

Safe Pro AI LLC

Formed from the acquisition of Demining Development LLC's assets in March 2023, this subsidiary focuses on AI, machine learning, and computer vision technologies for analyzing drone imagery. The Safe Pro AI division specifically addresses the critical need for rapid threat detection and situational awareness in military, demining, and other high-stakes environments.

D. Growth Strategy

The growth strategy of Safe Pro Group is centered around strategic investments in safety and security technologies. By integrating advanced AI, personal protective gear, and drone capabilities, the company aims to address a variety of challenges faced by its clientele in sectors such as government, military, commercial, and NGOs. The strategic formation of SPAI Ventures LLC in December 2025 reflects this approach, targeting investments and collaborations with international tech developers to enhance existing capabilities and explore emerging technologies.

E. Market Opportunities

Safe Pro Group aims to capitalize on several specific market opportunities:

1. Artificial Intelligence and Dataset Development: The company seeks to utilize its growing portfolio of AI technologies to create actionable intelligence and detailed analyses across various applications including agriculture, infrastructure, and national security.
2. Landmine Detection and Remediation: Addressing the significant and growing threat of landmines and unexploded ordnance, particularly in countries affected by conflict, the company utilizes its AI and drone technologies to streamline detection and clearance processes, significantly enhancing operational safety and efficiency.
3. Force Protection for the Military: Leveraging its unique capabilities in AI and drone operations, Safe Pro intends to develop technology that supports real-time threat detection and situational awareness for military personnel in diverse environments.
4. Aerial Managed Services: The rapid adoption of drone technology informs the company's aerial service offerings, providing enhanced operational capabilities for utility inspections, disaster response, and ongoing situational assessments in public safety contexts.
5. Personal Protective Gear Expansion: With an awarded GSA contract for ballistic protection products, Safe-Pro Group capitalizes on existing government frameworks to provide compliance-certified personal protective equipment.

F. Customers

Safe Pro Group serves a broad spectrum of clients, including government agencies, military organizations, NGOs, and commercial enterprises. Their customer base encompasses various sectors such as defense, law enforcement, electric utilities, and humanitarian aid, consolidating their presence across diverse markets and enhancing operational resilience through diversified revenue streams.

G. Supplier Concentration

The company's dependence on a limited number of suppliers for a significant portion of its inventory has been highlighted. In the fiscal year ending December 2025, 68% of inventory was procured from four suppliers. Such concentration poses risks that could adversely affect operations, although the company maintains the capacity to seek alternative suppliers as necessary.

H. Competition

Competing across multiple sectors, Safe Pro Group faces challenges from established players in AI analytics, aerial services, and personal protective equipment markets. Competitors vary from domestic firms engaged in body armor production to international providers of drone services and technology. The company’s diverse offerings in advanced technologies and materials provide competitive advantages but also demand continuous innovation to maintain market share amid evolving industry standards.

I. Intellectual Property

The company recognizes the significance of protecting its proprietary technology and has taken strides to secure patents for its innovations. With an initial patent granted in November 2024 concerning explosive detection, the organization continues to file for additional intellectual property protection to secure its advancements and maintain a competitive edge.

J. Regulation and Compliance

Safe Pro Group operates under various regulatory frameworks governing its manufacturing, AI technologies, aerial services, and export activities. This includes compliance with regulations such as ITAR and EAR for the export of protective gear and drone services, ensuring adherence to national security and foreign policy mandates.

K. Employees

As of December 31, 2025, Safe Pro Group employed fifteen full-time personnel and engaged twenty-nine independent contractors. Employee operations span various functions, supported by qualified staff, including licensed drone operators who comply with required certifications.

L. Property and Facilities

Safe Pro Group rents its executive offices and manufacturing facilities to support its diverse operations. Both locations are determined to meet current operational needs, allowing flexibility as the company continues to grow and expand its capabilities in response to market demands.