Prepared: Q1 2026 | Version: 1.0 | Classification: Investor Confidential
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.
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:
| 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) |
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.
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
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.
The Federal Law Enforcement Training Centers (FLETC) operate an 80-hour Law Enforcement sUAS Pilot Training program that:
The Defense Innovation Unit’s Blue UAS program vets commercial drones for government use:
| 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 |
There are approximately 18,000 law enforcement agencies in the United States. Current C-UAS training capacity serves a fraction of this market:
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.
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.
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 │ │ │
└──────────────┴──────────────┴───────────────────────────┘
| 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 |
| 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 |
| 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 |
| 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
What sets Apex apart is the persistent technology layer woven through every training scenario:
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)
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 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 |
| 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 |
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
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.
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) | ❌ | ✅ | ✅ |
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.
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.
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.
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.
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.
| 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.
| 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 |
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
| 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 |
| 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.
$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% |
| 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 |
| 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 |
| 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% |
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)
| 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 |
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)
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.
| 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 |
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+ |
| 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 |
Apex will prioritize hiring fellow veterans, particularly:
Target: 75%+ veteran workforce
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.
| 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 |
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
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.
| 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 |
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)
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.
| 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 |
| 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 |
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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