DRONESMITH USA

Use of Proceeds – Motor Development, Production & Scaling Investment capital will accelerate the transition from pre-production to full-scale manufacturing of our NDAA-compliant brushless motors at our Arizona facility, strengthening the U.S. defense UAV supply chain. Key allocations include: R&D, Prototyping & Testing (35-45%): Finalize specifications, iterate designs, and conduct rigorous performance, environmental, and compliance testing for the DS-2814, DS-2207, and DS-3508 motors. This includes stator/winding optimization, thermal management, and integration validation with common UAV platforms. Manufacturing Scale-Up & Production (35-45%): Expand U.S.-based production capabilities including tooling, automated winding/assembly equipment, quality assurance infrastructure, and component procurement from vetted domestic and allied suppliers. This enables initial production runs and inventory buildup to support government and enterprise orders. Compliance, Team & Operations (10-20%): Enhance NDAA documentation and traceability systems, pursue additional certifications, expand engineering and production team, and build sales/support infrastructure for Gov/Enterprise clients. This targeted investment will enable us to deliver high-volume, reliable American-made motors to the market, capture share in the growing defense and commercial UAV sector, and achieve key milestones.