Apex Tactical Systems — Business Plan

APEX TACTICAL SYSTEMS

Comprehensive Business Plan

Service-Disabled Veteran-Owned Counter-Drone Defense & Tactical Training Center

Prepared: Q1 2026 | Version: 1.0 | Classification: Investor Confidential


Table of Contents

  1. Executive Summary
  2. Market Opportunity
  3. Solution
  4. Revenue Streams
  5. Competitive Advantage
  6. Team
  7. Property Strategy
  8. Financial Projections
  9. Investment Structure
  10. Community Impact
  11. Risk Analysis & Mitigation
  12. Appendices

1. Executive Summary

The Opportunity

The United States faces an unprecedented counter-drone crisis. In January 2026, the Department of Homeland Security launched a $1.5 billion counter-drone contract vehicle to address the exponential growth in unmanned aerial threats to critical infrastructure, public safety, and national security. The FBI simultaneously established a National Counter-UAS Training Center to deputize and train state and local law enforcement — creating a massive, unfilled demand for standardized counter-drone operator training.

There is no facility in the United States that combines Special Forces tactical methodology, drone operations, counter-UAS training, cybersecurity, and IoT-integrated scenarios under one roof — with SDVOSB federal contracting advantages.

Apex Tactical Systems will fill that gap.

The Company

Apex Tactical Systems is a Service-Disabled Veteran-Owned Small Business (SDVOSB) founded by a retired U.S. Army Green Beret with 21 years of military service, 13+ years in Special Operations, and deep expertise in cybersecurity, AI/ML, and emerging technologies. The company will establish a world-class tactical training facility on 1,100+ acres in East Tennessee’s Opportunity Zone corridor, purpose-built for:

The Ask

Item Detail
Seed Round $6.5M
Use of Funds Property acquisition, range construction, C-UAS/drone equipment, working capital
Target Property 1,103 acres, Alpine Dr, Sevierville, TN (Opportunity Zone)
Projected Revenue (Year 3) $4.2M
Projected Revenue (Year 5) $8.0M+
Federal Contract Pipeline $1.5B+ addressable market
Break-Even Year 2
SDVOSB Sole-Source Ceiling $5M (DoD) / $4M (Civilian agencies)

Why Now

  1. DHS $1.5B C-UAS contract vehicle just launched (January 2026) — first-mover advantage is critical
  2. FBI National Counter-UAS Training Center actively seeking private training partners
  3. OBBBA made Opportunity Zones permanent (signed July 4, 2025) — investor capital available
  4. No integrated competitor exists combining SF methodology + UAS + C-UAS + cyber + IoT
  5. Lead property negotiable to ~$2.8–3.2M (595 days on market, prior $2.95M listing)

2. Market Opportunity

2.1 The Counter-Drone Threat Landscape

The proliferation of commercial drones has created a national security crisis that cuts across every level of government:

The demand for trained counter-drone operators far outstrips supply.

2.2 Federal Contract Opportunities

DHS $1.5 Billion Counter-Drone Contract Vehicle (January 2026)

The Department of Homeland Security launched its largest-ever counter-drone acquisition vehicle, enabling rapid procurement by CBP, ICE, TSA, USSS, and Coast Guard for:

Source: dhs.gov/news/2026/01/12

FBI National Counter-UAS Training Center

The FBI established a dedicated counter-UAS training center to:

Implication: The FBI cannot train all 18,000+ agencies alone. Private SDVOSB-certified training facilities with the right capabilities will receive contract awards.

FLETC Small UAS Training Program

The Federal Law Enforcement Training Centers (FLETC) operate an 80-hour Law Enforcement sUAS Pilot Training program that:

Blue UAS Program (DoD/DIU)

The Defense Innovation Unit’s Blue UAS program vets commercial drones for government use:

Total Addressable Market

Market Segment Estimated Annual Value Growth Rate
DHS C-UAS contracts (training component) $150M–$300M 20%+ CAGR
FBI/DOJ counter-drone training $50M–$100M New market
FLETC partnership/licensing $25M–$50M 10–15% CAGR
DoD tactical training support $100M–$200M 8–12% CAGR
State/local LE drone programs $200M–$500M 25%+ CAGR
Corporate/critical infrastructure $50M–$150M 30%+ CAGR
Total Addressable Market $575M–$1.3B annually

2.3 Law Enforcement Training Demand

There are approximately 18,000 law enforcement agencies in the United States. Current C-UAS training capacity serves a fraction of this market:

2.4 Allied/Partner Nation Training

Under ITAR-compliant frameworks, Apex can provide counter-drone and tactical training to:

This market segment typically commands premium pricing (2–3x domestic rates) and multi-year contract vehicles.

2.5 The Glamping & Wellness Market (Supplementary)

Between federal training events, the facility’s 1,100+ acres, panoramic Smoky Mountain views, and premium amenities serve a booming experiential hospitality market:

Metric Value Source
Global Glamping Market $3.6B (2024) → $9–10B by 2033 Industry research
US Glamping Market $510M, growing 8–12% annually KOA/Glamping Hub
Wellness Tourism $945B (2024) → $2T+ by 2033 Global Wellness Institute
GSMNP Annual Visitors 11.5M (2025) NPS
Tennessee Visitor Spending $31B annually TN Dept. of Tourism
Gatlinburg-Pigeon Forge-Sevierville Ranked #3 nationally for Airbnb revenue AirDNA
New Glamping Participants 15.6M in past 5 years KOA

Key insight: Glamping generates revenue during facility downtime and provides cover for dual-use infrastructure (lodging, dining, wellness) that also supports training operations.


3. Solution

3.1 Full-Spectrum Training Facility

Apex Tactical Systems will be the first facility to integrate all five critical training domains under one SDVOSB-certified operation:

┌─────────────────────────────────────────────────────────┐
│                 APEX TACTICAL SYSTEMS                   │
│          Full-Spectrum Training Platform                 │
├──────────────┬──────────────┬───────────────────────────┤
│  COUNTER-UAS │  DRONE/UAS   │  CYBER / IoT / EW        │
│  Detection   │  Operations  │  Virtual cyber ranges     │
│  Tracking    │  Part 107+   │  IoT sensor exploitation  │
│  ID & Class  │  Combat UAS  │  RF spectrum analysis     │
│  Mitigation  │  ISR/Recon   │  Electronic warfare       │
│  Integration │  Air-Ground  │  Network penetration      │
├──────────────┼──────────────┼───────────────────────────┤
│  TACTICAL    │  STRATEGIC   │  SUPPLEMENTARY            │
│  SF/SOF      │  Federal     │  Glamping / Wellness      │
│  methodology │  contract    │  Corporate retreats       │
│  Shoot house │  training    │  Executive protection     │
│  Night ops   │  LE cert     │  Team-building            │
│  Small-unit  │  programs    │  Civilian experiences     │
│  maneuver    │              │                           │
└──────────────┴──────────────┴───────────────────────────┘

3.2 Training Programs

Counter-UAS Programs (PRIMARY)

Course Duration Target Audience Price
C-UAS Operator Fundamentals 3 days LE, security, military $3,000
C-UAS Detection & Classification 5 days LE agencies, DHS $4,000
Advanced C-UAS Tactics 5 days Federal LE, SOF, DHS $5,000
C-UAS System Integration 3 days Technical operators $4,500
C-UAS Train-the-Trainer 10 days Agency trainers $8,000
Agency C-UAS Certification Package Custom Full agency programs $25,000–$100,000
Federal Contract C-UAS Training Annual DHS, FBI, DoD $500K–$2M

Drone/UAS Operations Programs

Course Duration Target Audience Price
Part 107 Certification Prep 2 days All $800
LE sUAS Pilot Training (FLETC-aligned) 10 days (80hr) Law enforcement $2,500
Advanced UAS Mission Planning 5 days LE, military, SAR $3,500
COTS ISR Lab & Integration 3 days SOF, intel, LE $4,000
Air-Ground Integration 5 days Military, LE tactical $4,500
Blue UAS Operator Certification 3 days Government operators $2,500

Cyber / IoT / Electronic Warfare Programs

Course Duration Target Audience Price
Tactical Cyber Operations 5 days SOF, intel, LE $5,000
IoT Sensor Network Exploitation 3 days SOF, cyber teams $4,000
RF Spectrum Analysis & SIGINT 5 days Military, LE, intel $5,500
Field-Expedient Electronics (TTL Lab) 3 days SOF, technical operators $3,500
Virtual Cyber Range Exercises 3 days All government $3,000

Tactical Training Programs

Course Duration Target Audience Price
SOF Small-Team Reconnaissance 3–5 days SOF, LE tactical $3,000–$5,000
Rural Surveillance & Countersurveillance 3 days LE, SOF $2,500
Active Threat Response (Tech-Integrated) 3 days LE, security $2,000
Advanced Firearms / Precision Rifle 2–3 days LE, military, civilian $800–$1,500
Executive Protection 5 days Private sector $4,000
Night Operations (NVG/Thermal) 3 days SOF, LE tactical $3,500

Target Utilization: 8–12 training events per month, 8–24 participants each

3.3 Technology Integration

What sets Apex apart is the persistent technology layer woven through every training scenario:

3.4 Facility Development Phases

Phase 1 — Year 1 ($1.5M) - Property acquisition and securing - Basic range construction (5 pistol/rifle bays) - Classroom renovation (existing structures) - FAA airspace coordination and Part 107 waivers - Initial C-UAS detection equipment deployment - Drone operations field establishment - SDVOSB certification completion

Phase 2 — Year 2 ($800K) - Full C-UAS detection array deployment - IoT sensor network installation (campus-wide) - Shoot house construction - Drone operations expansion (night capable) - Communications/SIGINT lab buildout - Virtual cyber range activation - Initial glamping units (20 units for lodging/revenue)

Phase 3 — Year 3+ ($500K+) - Advanced simulation systems - Full night operations capability - Lodging expansion (additional glamping units) - Wellness center / corporate retreat facilities - Event space and support facilities - Full marketing launch (civilian/glamping market)


4. Revenue Streams

Revenue Prioritization

PRIORITY 1 (60%): Federal Contracts
├── DHS Counter-UAS training contracts
├── FBI/DOJ counter-drone programs  
├── FLETC partnership/licensing
├── DoD tactical training support (SOF, conventional)
└── Intelligence community training

PRIORITY 2 (20%): State & Local Law Enforcement
├── Agency C-UAS certification packages
├── UAS pilot training programs
├── SWAT/SRT tactical training
└── Investigator surveillance training

PRIORITY 3 (10%): Corporate & Private Sector
├── Critical infrastructure security training
├── Executive protection programs
├── Corporate security assessments
└── Private UAS operator certification

PRIORITY 4 (5%): Allied/Partner Nation Training
├── Bilateral/trilateral exercises (ITAR compliant)
├── Foreign military sales (FMS) training
└── Allied SOF integration exercises

PRIORITY 5 (5%): Glamping & Wellness (Supplementary)
├── High-end corporate retreats
├── Civilian glamping experiences
├── Wellness/spa services
├── Events and weddings
└── Sustainable timber harvesting

Revenue Model — 5-Year Projection

Revenue Stream Year 1 Year 2 Year 3 Year 4 Year 5
Federal Contracts $100K $750K $2.0M $3.5M $5.0M
State/Local LE Training $150K $400K $800K $1.2M $1.5M
Corporate/Private $100K $250K $500K $700K $800K
Allied/Partner Nation $0 $50K $200K $400K $500K
Glamping/Wellness $0 $100K $400K $700K $1.0M
Civilian Training (firearms, etc.) $300K $250K $300K $350K $400K
Total Revenue $650K $1.8M $4.2M $6.85M $9.2M

Pricing Strategy

Client Type Average Contract Value Revenue per Trainee
Federal contract (annual) $500K–$2M $4,000–$5,000
State/local LE (package) $25K–$100K $2,500–$4,000
Corporate (program) $15K–$50K $2,000–$4,000
Allied/Partner Nation $100K–$500K $5,000–$8,000
Civilian (individual) $800–$2,500 $800–$2,500
Glamping (nightly) $250–$500/night N/A

Contract Pipeline Development

Year 1: Foundation - Complete SDVOSB certification via SBA - Register on SAM.gov (active) - Build relationships with DHS, FBI, FLETC contracting officers - Submit capability statements to target agencies - Pursue initial task orders under existing BPAs - Revenue primarily from individual trainees and small LE agency contracts

Year 2: First Federal Contract - Target SDVOSB sole-source contract ($1M–$5M) from DHS or FBI - Expand LE agency partnerships (target 10+ agencies) - Begin corporate security training programs - Revenue mix shifts toward institutional contracts

Year 3–5: Scale - Multiple concurrent federal contracts - IDIQ/BPA vehicle positioning - State-level master contracts - Allied nation training under FMS - Glamping revenue supplements during non-training periods


5. Competitive Advantage

5.1 The SDVOSB Edge

As a certified Service-Disabled Veteran-Owned Small Business, Apex holds structural advantages that competitors cannot replicate:

Advantage Detail
Sole-Source Contracts Direct awards up to $5M (DoD) and $4M (civilian agencies) — no competition required
5% Federal Goal Government agencies must award 5% of all contract dollars to SDVOSBs
Set-Aside Contracts Restricted competition pools — only other SDVOSBs can compete
VA Vets First Priority access to VA contracts
Evaluation Preferences Many solicitations include veteran preference scoring
State Incentives Tennessee and many states offer additional veteran business preferences

Why this matters: A $5M sole-source ceiling means the government can award contracts to Apex directly — without a competitive bidding process — for any requirement up to $5M. For a training facility with our capabilities, this is an enormous advantage.

5.2 The Integration Gap

No facility in the United States combines all five elements:

Capability Thunder Ranch Gunsite Academy FlightSafety Int’l FLETC Apex Tactical
Firearms/Tactical
Drone/UAS Operations
Counter-UAS Training Limited
Cyber/IoT Integration
SF/SOF Methodology
SDVOSB Status N/A (gov’t)
Lodging/Retreat Limited
1,000+ Acres ✅ (2,800ac)

5.3 Competitor Analysis

Thunder Ranch (Lakeview, OR) - 3-day courses at $1,200; ~400 trainees/year - Small class sizes, premium reputation - Limitation: Firearms-only focus, no UAS/C-UAS, no federal contract capability

Gunsite Academy (Paulden, AZ) - 2,800 acres with full campus, lodging, pro shop - Premium brand since 1976 - Limitation: Traditional firearms only, no technology integration, no SDVOSB

FlightSafety International - UAS training division with Skydio partnership - Corporate/government focus - Limitation: No tactical firearms, no C-UAS, no field training capability

FLETC (Federal Law Enforcement Training Centers) - Government-operated, sets federal training standards - Comprehensive facilities in Glynco, GA and Artesia, NM - Limitation: Government facility — cannot scale to meet all demand; actively seeks private partners

Gap: No private training facility combines counter-UAS, drone operations, cyber/IoT, and tactical training with SDVOSB federal contracting advantages. Apex fills this gap.

5.4 Combat-Tested Credibility

The founding team didn’t study UAS operations in a classroom — they employed them in combat:

This credibility is impossible for civilian competitors to match and resonates powerfully with federal contracting officers and military end-users.


6. Team

6.1 Leadership

John Chain — Founder & Chief Executive Officer

Military Career (21 Years) - U.S. Army Green Beret — Special Forces Qualification Course Distinguished Honor Graduate - 13+ years in Special Operations - U.S. Embassy Liaison Team Lead, Republic of Georgia - Trained 600+ foreign special operations personnel - Managed $6M+ congressional security programs - Top Secret clearance (10+ years) - Upper-intermediate Russian language proficiency

Technology & Cybersecurity Expertise - Subject Matter Expert: WATSON and Greyhat Cyber Programs - Developed virtual cyber ranges for complex scenario training - Worked alongside SensePost penetration testing teams - Fortune 100 & U.S. Energy Sector penetration testing - Defended against nation-state APT groups (Sharp Panda) - AWS infrastructure architect, DevOps, CI/CD pipeline specialist - AI/ML integration specialist

Business Experience - Founder, Chain Enterprises LLC (2017–Present) - Chief Security Officer, Novera Capital - Chief Technology Officer, Infynity Blockchain - Public speaker on cybersecurity and emerging threats

Why John: A rare combination of elite military tactical experience AND deep technology/cybersecurity expertise. He doesn’t just understand the training — he can build the technology platform that makes it world-class.


Amy Jesh — Director of UAS Operations

Military Background - Led drone field operations team on combat deployment - Embedded with Special Forces operational detachment - Served with John Chain on second deployment

Role at Apex - Leads all drone/UAS training programs - Develops C-UAS curriculum and detection methodology - Manages FAA coordination and airspace operations - Directs field training exercises

Why Amy: Combat-proven UAS operations leader. Not a Part 107 pilot who read a manual — she ran drone operations in a combat zone. Her field experience translates directly to training the next generation of military, LE, and government drone operators.


Travis Shirley — Chief Technology Officer

Current Position - Demo Team Lead at Shield AI ($5.6B defense technology company) - Leads demonstrations of autonomous drone systems

Military Background - Former U.S. Army Green Beret - Served on the same team as John Chain in Iraq

Role at Apex - Leads technology strategy and C-UAS system integration - Architects the IoT sensor network and AI analytics platform - Bridges cutting-edge defense technology (Shield AI) to training applications - Drives R&D and innovation

Why Travis: Currently at the frontier of military AI/drone technology at Shield AI. Brings bleeding-edge knowledge of autonomous systems, AI-driven threat detection, and next-generation UAS capabilities directly from the defense industry’s most advanced programs.


6.2 Team Differentiators

Factor Detail
Combat-tested Served together under fire in Iraq — pre-built trust and cohesion
Real UAS experience Actual combat drone operations, not theoretical
SF methodology Small team, high performance, mission-focused
Industry connections Shield AI, defense contractor network, intelligence community
Technical depth Cyber + AI/ML + UAS + C-UAS — rare combination
Training pedigree 600+ foreign SOF personnel trained by the founder alone

Investor note: This team combination — SF combat veterans with deep technology expertise and active defense industry connections — is exceptionally rare in the startup world. They’ve already proven they can work together under the most extreme conditions possible.


7. Property Strategy

7.1 Lead Candidate: Alpine Dr, Sevierville, TN

Detail Value
MLS # 1266060
Acreage 1,103.73 acres (surveyed)
Listed Price $4,400,000 ($3,986/acre)
Negotiated Target $2,800,000–$3,200,000 ($2,537–$2,900/acre)
Days on Market 595 (significant negotiation leverage)
Prior Low Price $2,950,000 (Aug 2024 — still shown on some platforms)
Counties Sevier County & Cocke County
Elevation 3,000+ feet — highest point between English Mountain and GSMNP
Views Panoramic — GSMNP, English Mountain, Douglas Lake, Newport
Zoning Agricultural (development-friendly, unrestricted)
Taxes $8,795/year (remarkably low)
Opportunity Zone ✅ Sevier County Census Tract 801.01 — confirmed designated QOZ
Utilities Electricity and water on site
Water Multiple springs and blue line streams
Roads Two county road frontages (paved), internal roads roughed in
Survey Professional survey on file
Restrictions NONE

7.2 Why This Property for a Training Facility

Tactical advantages: - 1,100+ acres provides sufficient standoff distance for firearms, UAS, and C-UAS operations - Mixed terrain (level, rolling, steep, wooded, partially cleared) — mirrors real-world operational environments - 3,000ft elevation provides excellent vantage points for C-UAS sensor placement and long-range observation training - Multiple springs/streams create natural terrain features for small-unit training - Two access roads provide operational security and redundant ingress/egress - Remote but accessible — 40 min from Knoxville Airport (TYS), yet private enough for training operations - Class G airspace — uncontrolled, ideal for UAS operations with appropriate FAA coordination

Infrastructure advantages: - Internal road systems already roughed in — reduces Phase 1 development cost - Electricity and water available on site - Agricultural zoning allows training facility development - No restrictions on the property - Professional survey on file — de-risks acquisition

Financial advantages: - Opportunity Zone — potentially $5M+ in tax savings over 10 years - Negotiable to $2.8–3.2M based on 595 DOM and prior $2.95M listing - Annual taxes of only $8,795 on 1,100 acres - Timber value estimated at $2.2M–$5.8M — could offset acquisition cost - Strategic clearing for ranges/facilities generates immediate timber revenue

7.3 Proximity Analysis

Destination Distance Drive Time
Knoxville (McGhee Tyson Airport) ~55 mi ~1 hr
Sevierville ~15 mi 25–30 min
Pigeon Forge/Dollywood ~22 mi 35–40 min
Gatlinburg ~29 mi 45–50 min
I-40 (Exit 407) ~12 mi ~20 min
Fort Campbell (101st Airborne) ~295 mi ~5 hr

7.4 Alternative Properties

Property Acres Price $/Acre Key Feature Score
Alpine Dr, Sevierville 1,104 $4.4M (neg. ~$3M) $3,986 OZ + GSMNP views 9.5/10
Bethel Church Rd, Townsend 638 $3.9M $6,103 Adjacent to GSMNP 8.5/10
Gregory Rd, Sneedville 502 $4.75M $9,462 Clinch River, existing structures 6.0/10
Stinking Creek, Pioneer 800 $1.6M $2,000 Largest acreage at lowest cost 5.0/10
Jones Ln, Mooresburg 588 $3.0M $5,102 Turnkey lodge, 6bd/5ba 6.5/10
Ronald Holt, Tazewell 630–700 $4.86M ~$7,200 Lakefront, multiple parcels 6.5/10

Recommendation: Alpine Dr is the clear frontrunner. No other property combines Opportunity Zone status, 1,100+ acres, existing infrastructure, negotiation leverage, and proximity to the Smoky Mountains tourism corridor.


8. Financial Projections

8.1 Startup Costs & Use of Funds

$6.5M Seed Round Allocation

Category Amount % of Total
Property Acquisition (negotiated) $3,200,000 49%
Range & Facility Construction $1,200,000 18%
C-UAS / Drone Equipment & Sensors $600,000 9%
Cyber Range & IT Infrastructure $400,000 6%
Working Capital (12 months) $500,000 8%
Legal, Licensing, Insurance $250,000 4%
Marketing & Business Development $200,000 3%
Closing, Due Diligence, Contingency $150,000 2%
Total $6,500,000 100%

8.2 Five-Year Financial Model

Metric Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $650K $1.8M $4.2M $6.85M $9.2M
COGS & Direct Costs $260K $630K $1.26M $1.92M $2.48M
Gross Profit $390K $1.17M $2.94M $4.93M $6.72M
Gross Margin 60% 65% 70% 72% 73%
Operating Expenses $590K $850K $1.84M $2.93M $3.92M
EBITDA ($200K) $320K $1.1M $2.0M $2.8M
EBITDA Margin (31%) 18% 26% 29% 30%
Depreciation & Amort. $150K $200K $250K $300K $350K
Net Income ($350K) $120K $850K $1.7M $2.45M

8.3 Key Assumptions

Assumption Value
Federal contract secured Year 2 (initial), scaling Years 3–5
Individual trainees Year 1 400 (primarily civilian, LE individuals)
Individual trainees Year 5 2,000+ (mix of government and civilian)
Revenue per government trainee $4,000 average
Revenue per civilian trainee $1,625 average
Federal contract value (Year 3) $1.5M–$2M (SDVOSB sole-source)
Glamping units (Year 3+) 20–50 units, $250–$500/night
Occupancy (glamping) 35% (Year 2), scaling to 55% (Year 5)
Staff (Year 1) 8 FTE
Staff (Year 5) 35+ FTE

8.4 Revenue Mix Evolution

Source Year 1 Year 3 Year 5
Federal Contracts 15% 48% 54%
State/Local LE 23% 19% 16%
Corporate/Private 15% 12% 9%
Allied/Partner Nation 0% 5% 5%
Glamping/Wellness 0% 10% 11%
Civilian Training 47% 7% 4%

8.5 Break-Even Analysis

8.6 Long-Term Valuation

At Year 5 with $2.8M EBITDA, using defense/training industry multiples of 8–12x:

Valuation Method Multiple Implied Value
EBITDA × 8 (conservative) 8x $22.4M
EBITDA × 10 (moderate) 10x $28.0M
EBITDA × 12 (premium — SDVOSB + OZ + growth) 12x $33.6M

Plus: Undeveloped land value (800+ acres undeveloped at $5,000+/acre) = $4M+

Year 5 Enterprise Value Range: $26M–$38M on a $6.5M initial investment (4–6x return)


9. Investment Structure

9.1 Capital Stack

Source Amount Terms Status
Seed Equity (QOF) $3.0M–$5.0M OZ tax-advantaged equity Raising
SBA 504 Loan $1.5M–$3.0M Below-market rate, 10–25yr, SDVOB preference Available
SBA 7(a) Loan $500K–$1.0M Working capital, equipment Available
Founder Equity $500K–$1.0M 15–20% owner injection Committed
Timber Revenue $500K–$1.5M Self-generated from strategic clearing Phase 1
USDA Rural Development $250K–$1M Low-rate rural hospitality financing Potential
Grants (VA, SDVOSB) $100K–$500K Non-repayable Researching

9.2 Opportunity Zone Fund Structure

The investment will be structured as a Qualified Opportunity Fund (QOF) — or if rural eligibility is confirmed, a Qualified Rural Opportunity Fund (QROF) — to maximize tax benefits for investors:

                    INVESTORS (Capital Gains)
                           |
                    ┌──────┴──────┐
                    │  QOF LLC    │  ← Self-certified via IRS Form 8996
                    │ (or QROF)  │  ← If rural: enhanced 30% step-up
                    └──────┬──────┘
                           |
                    ┌──────┴──────┐
                    │  QOZB LLC   │  ← Qualified OZ Business (Operating Co)
                    │ Apex Tact.  │  ← SDVOSB certified
                    └──────┬──────┘
                           |
              ┌────────────┼────────────┐
              |            |            |
         Land/Property  Improvements  Operations
         (1,103 acres)  (Ranges,      (Training,
                         facilities,   glamping,
                         equipment)    contracts)

9.3 OZ Tax Benefits for Investors

Under the One Big Beautiful Bill Act (signed July 4, 2025), Opportunity Zone benefits are now permanent:

Benefit Standard QOF Rural QOF (QROF)
Capital Gains Deferral Rolling 5-year deferral Rolling 5-year deferral
Basis Step-Up (5 years) 10% reduction in deferred gain 30% reduction in deferred gain
10-Year Exclusion ALL appreciation tax-free ALL appreciation tax-free
Substantial Improvement 100% of basis within 30 months 50% of basis within 30 months
Program Duration PERMANENT PERMANENT
New Investment Window Through Dec 31, 2033 Through Dec 31, 2033

Practical Impact — $5M Capital Gains Investment:

Scenario Without OZ Standard QOF Rural QROF
Immediate Tax $1,190,000 $0 $0
Tax at Year 5 N/A $1,071,000 $833,000
Tax on 10-Year Appreciation (3x) $2,380,000 $0 $0
Total Tax Paid $3,570,000 $1,071,000 $833,000
Total Tax Savings $2,499,000 $2,737,000

Tennessee advantage: No state income tax — full federal OZ benefit flows through with zero state tax friction.

9.4 SBA SDVOB Advantages

9.5 Additional Funding Sources

Source Amount Type
VA Veteran Entrepreneur Programs $50K–$250K Grants/technical assistance
Tennessee ECD Rural Development $100K–$500K Grants/incentives
USDA Rural Business Enterprise Grants $50K–$500K Grants
Appalachian Regional Commission $100K–$1M Economic development grants
SBA SBIR/STTR (C-UAS tech R&D) $150K–$1.5M Research grants
DoD Mentor-Protégé Program TBD Technical/business assistance

10. Community Impact

10.1 Economic Development

Apex Tactical Systems will be a significant economic engine for rural East Tennessee:

Impact Area Year 1 Year 3 Year 5
Direct Jobs Created 8 20 35+
Average Salary $50K $55K $60K
Annual Payroll $400K $1.1M $2.1M
Local Vendor Spend $200K $600K $1.2M
Property Tax Revenue $8.8K $25K+ $50K+
Visitor Spending (indirect) $150K $800K $2M+

10.2 Job Creation

Role Category Year 1 Year 3 Year 5
Leadership/Management 3 4 5
Training Instructors (C-UAS, UAS, Tactical) 2 8 14
Technology/IT Staff 1 3 5
Facilities/Maintenance 1 3 5
Hospitality (glamping, F&B) 0 4 8
Administrative/Marketing 1 2 4
Total FTE 8 24 41

10.3 Veteran Employment

Apex will prioritize hiring fellow veterans, particularly:

Target: 75%+ veteran workforce

10.4 Community Benefits

10.5 Opportunity Zone Community Alignment

The property sits in a designated Opportunity Zone specifically because the community is economically distressed. Apex directly addresses this:

Census Tract 801.01 Metric
Median Household Income $54,000 (below national average)
Poverty Rate 12%
Population ~3,700
Job Market Limited — rural/agricultural

Apex will inject $2M+ annually in payroll and local spending into this community by Year 5.


11. Risk Analysis & Mitigation

11.1 Risk Matrix

Risk Probability Impact Mitigation
Federal contract delay Medium High Diversified revenue (LE, civilian, glamping); sole-source capability reduces competition risk
SDVOSB certification delay Low High Application process well-defined; 90-day processing; provisional status available
Property acquisition failure Low High 5 alternative properties identified; 595 DOM indicates motivated seller
Construction cost overruns Medium Medium 15% contingency in budget; phased construction; fixed-price contracts where possible
OZ non-compliance Low High Retain specialized OZ tax counsel; regular compliance audits; clear fund structure
Regulatory/zoning issues Low-Medium Medium Pre-application meetings with county planning; agricultural zoning is permissive
Key person risk Low-Medium High Cross-train team; documented procedures; succession planning; advisory board
Wildfire Low (9% over 30yr) High Comprehensive fire management plan; insurance; firebreaks; coordination with forestry service
Market downturn Low Medium Counter-drone demand is countercyclical — threat increases regardless of economic conditions
FAA airspace restrictions Low Medium Class G airspace preferred; proactive FAA coordination; Part 107 waivers
Competition entry Medium Medium First-mover advantage; SDVOSB barrier; team credibility impossible to replicate quickly
Dual-county complexity Low Low Focus development on Sevier County side; retain local counsel in both counties
Seasonal revenue variance Medium Low Federal contracts provide stable base; glamping supplements in peak season
C-UAS authority limitations Low Medium Training in detection/tracking (legal); mitigation simulation; partner with authorized agencies

11.2 Critical Risk Mitigations

Federal Contract Risk: - SDVOSB sole-source to $5M dramatically reduces competition risk - Counter-drone is a bipartisan priority — funding is stable regardless of administration - DHS $1.5B contract vehicle creates multi-year procurement runway - Multiple agencies (DHS, FBI, DOJ, DoD) = diversified federal customer base - Individual and LE training generates revenue during contract pursuit

Technology/Capability Risk: - CTO (Travis Shirley) brings cutting-edge Shield AI technology knowledge - Equipment procurement follows proven government acquisition models - Phased technology deployment reduces integration risk - Virtual cyber range requires minimal physical infrastructure

Financial Risk: - Phased development — only build what revenue supports - Timber harvesting provides immediate cash ($500K–$1.5M from Phase 1 clearing) - Glamping revenue supplements training downtime - SBA loan programs provide favorable terms for veterans - OZ structure attracts investors seeking tax-advantaged returns


12. Appendices

Appendix A: Team Extended Bios

John Chain — Founder & CEO

John Chain served 21 years in the U.S. Army, including 13+ years in Special Operations as a Green Beret. He graduated as the Distinguished Honor Graduate of the Special Forces Qualification Course — the top graduate in his class. During his career, he served as U.S. Embassy Liaison Team Lead in the Republic of Georgia, where he trained and mentored foreign special operations forces. He personally trained 600+ foreign SOF personnel and managed $6M+ in congressional security programs.

Following his military career, John transitioned into cybersecurity and technology. As a Subject Matter Expert for the WATSON and Greyhat Cyber Programs, he developed virtual cyber ranges for complex scenario training. He worked alongside SensePost penetration testing teams and conducted Fortune 100 and U.S. Energy Sector penetration testing. He has defended against nation-state Advanced Persistent Threat (APT) groups including Sharp Panda.

As an entrepreneur, John founded Chain Enterprises LLC (2017), served as Chief Security Officer at Novera Capital, and Chief Technology Officer at Infynity Blockchain. He is an AWS infrastructure architect, DevOps specialist, and AI/ML integration expert. He maintains upper-intermediate Russian language proficiency and held a Top Secret clearance for 10+ years.

Amy Jesh — Director of UAS Operations

Amy Jesh led drone field operations on a combat deployment, embedded with a Special Forces operational detachment. She served with John Chain on his second deployment, building the trust and operational chemistry that forms the foundation of Apex’s training methodology. Her combat UAS experience — running real drone operations in a hostile environment — provides the credibility and practical knowledge that classroom-trained instructors cannot match.

Travis Shirley — Chief Technology Officer

Travis Shirley is a former U.S. Army Green Beret who served on the same Special Forces team as John Chain in Iraq. He currently serves as Demo Team Lead at Shield AI, a $5.6 billion defense technology company at the forefront of autonomous drone systems and military AI. At Shield AI, Travis leads demonstrations of cutting-edge autonomous aerial systems, giving him direct access to the most advanced UAS and counter-UAS technologies in development. His unique position bridging elite military experience and frontier defense technology makes him an invaluable CTO for a facility built around next-generation training capabilities.


Appendix B: Property Comparison Matrix

Criteria Alpine Dr ⭐ Bethel Church Gregory Rd Stinking Ck Jones Ln Ronald Holt
Acres 1,104 638 502 800 588 630-700
Asking Price $4.4M $3.9M $4.75M $1.6M $3.0M $4.86M
Negotiated Est. $2.8–3.2M $3.3–3.7M $4.0–4.5M $1.4–1.5M $2.5–2.8M $4.2–4.5M
$/Acre $3,986 $6,103 $9,462 $2,000 $5,102 ~$7,200
OZ Benefits
Infrastructure Roads + Utils Raw Barndo Raw 6bd Lodge Multi-parcel
Tourism Corridor ✅ Strong ✅ Premium ❌ Weak ❌ Weak ❌ Moderate ❌ Moderate
Training Suitability 9.5/10 7/10 7/10 6/10 5/10 5/10
Overall Score 9.5/10 8.5/10 6/10 5/10 6.5/10 6.5/10

Appendix C: Federal Contracting Data

SDVOSB Set-Aside Thresholds: | Agency Type | Sole-Source Ceiling | Set-Aside | Source | |————-|——————-|———–|——–| | Department of Defense | $5,000,000 | Unlimited | FAR 19.1405 | | Civilian Agencies | $4,000,000 | Unlimited | FAR 19.1405 | | VA (Vets First) | No limit (priority) | Full & open with priority | 38 USC 8127 |

Key Contract Vehicles: - DHS Counter-Drone IDIQ ($1.5B ceiling, Jan 2026) - FBI Counter-UAS Training Services - FLETC sUAS Training Partnership - DoD SOCOM Tactical Training Support - GSA Schedule 84 (Security & Law Enforcement) - STARS III (8(a) if dual-certified)


Appendix D: Opportunity Zone Tax Benefit Scenarios

Investment of $10M Capital Gains into QOF:

Benefit Standard QOF Rural QROF
Immediate Tax Saved $2,380,000 $2,380,000
Year 5 Basis Step-Up 10% ($238K saved) 30% ($714K saved)
Year 5 Tax Due $2,142,000 $1,666,000
Year 10 Appreciation (3x = $20M gain) $0 tax $0 tax
Total Tax Avoided $4,998,000 $5,474,000

Tennessee Advantage: No state income tax — full federal benefit with zero state friction.

Program Status: Made PERMANENT by the One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025.


Appendix E: Market Data Sources

Data Point Value Source
DHS C-UAS Contract Vehicle $1.5B dhs.gov/news/2026/01/12
GSMNP Annual Visitors (2025) 11.5M National Park Service
US Law Enforcement Agencies ~18,000 Bureau of Justice Statistics
Shield AI Valuation $5.6B Defense industry reporting
Global Glamping Market $3.6B → $9-10B by 2033 Industry research
Wellness Tourism Market $945B → $2T+ by 2033 Global Wellness Institute
TN Direct Visitor Spending $31B annually TN Dept. of Tourism
Sevier County STR Market 25,000+ rentals AirDNA
Gatlinburg/PF/Sevierville Airbnb Rank #3 nationally AirDNA
TN Hardwood Stumpage (White Oak) $575/MBF TN Timber Prices Q3 2024
TN Hardwood Stumpage (Black Walnut) $735/MBF TN Timber Prices Q3 2024

Appendix F: Timeline & Milestones

Quarter Milestone
Q1 2026 Business plan finalized, investor outreach begins
Q2 2026 SDVOSB certification application submitted; QOF/QROF structure established
Q3 2026 Property acquisition (Alpine Dr); FAA airspace coordination begins
Q4 2026 Phase 1 construction begins; SDVOSB certification received
Q1 2027 Basic ranges operational; first civilian/LE training courses
Q2 2027 C-UAS detection array deployed; federal capability statements submitted
Q3 2027 First federal contract pursuit (SDVOSB sole-source)
Q4 2027 Federal contract awarded; Phase 2 construction begins
2028 Full C-UAS training operational; glamping units open; revenue scales
2029 Multiple federal contracts; allied nation training begins; $4M+ revenue
2030 Full facility buildout; $8M+ revenue; considering Phase 3 expansion

Contact

John Chain Founder & CEO, Apex Tactical Systems

📧 john@chainai.io 📱 (719) 351-3513 🔗 linkedin.com/in/john-chain 🌐 chainai.io


This document contains confidential business information intended solely for prospective investors and strategic partners. It does not constitute an offer to sell or solicitation of an offer to buy securities. All financial projections are estimates based on market data and management assumptions. Actual results may vary materially. Investment involves risk, including potential loss of principal. Consult qualified financial, tax, and legal professionals before making investment decisions.

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