TEL AVIV, Israel, March 21, 2025 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the "company” or "ParaZero”), an aerospace company focused on safety systems for commercial unmanned aircrafts and defense Counter UAS systems, reported today its financial results for year ended December 31, 2024.
Key Highlights of ParaZero's Achievements in 2024 & Recent Highlights:
- Sales increased by 50.2% to $932,154 for the year ended December 31, 2024, mainly thanks to shifting towards sales to OEM integrations, which couples with recuring revenues in addition to the traditional aftermarket segment.
- Since the beginning of 2025, the Company has significantly strengthened its cash position by completing a registered direct offering of aggregate gross proceeds of approximately $3.1 million, in addition to receiving $1.3 million in proceeds from warrant exercises.
- During 2024, the company enhanced its penetration to the defense market with new developments and collaborations. The company launched its DropAir - Precision Airdrop System for rapid delivery of blood transfusions in high-risk operational zones. ParaZero successfully tested the system in collaboration with a leading drone company and moved forward to phase II of the project with Israeli Ministry of Defense.
- The company continued to advance its Counter-Unmanned Aerial Systems (C-UAS) solution, securing new orders, including from a Tier-1 defense customer.
- Both systems gained approvals from the Israeli Defense Export Controls Agency (DECA), under the Israel Ministry of Defense (MOD).
ParaZero continued to establish its position as a leader in safety systems for urban mobility and aerial vehicles.
- The company launched number of new collaborations that led to new orders, including a $187,000 purchase order from a U.S.-based Advanced Air Mobility (AAM) company.
- In addition, it successfully delivered a special drone safety system project for a leading Fortune 500 automotive manufacturer as part of the customer's proprietary drone program.
- ParaZero received a significant order from a leading Australian distributor, strengthening its presence in Australia.
- ParaZero announced its expansion in the U.S. through collaboration with one of North America's largest drone distributors, Drone Nerds, to promote and sell ParaZero's products.
The Company continues to facilitate its customers in achieving regulatory approvals for their operations as well as securing new approvals for its solutions.
- ParaZero received the prestigious Design Verification Report (DVR) approval from the European Union Aviation Safety Agency (EASA) for its SafeAir M-300 Pro and SafeAir M-350 Pro parachute safety kits. Its SafeAir systems, integrated with the DJI Matrice 350, DJI Mavic 3T and DJI Mavic 3E, have successfully achieved CE Class C5 compliance.
- The company also announced that a leading drone solutions provider, utilizing ParaZero's advanced safety technology, secured a Federal Aviation Administration (FAA) waiver to conduct Beyond Visual Line of Sight (BVLOS) drone operations.
Shetzer added, "Our commitment to enhancing operational efficiency and safety is evident in our recent accomplishments, including strategic collaborations in the defense, urban mobility and aerial vehicle sectors, the successful advancement of our new DropAir Precision Airdrop System, the late-stage development of our C-UAS solution and our leadership in regulatory achievements.”
Full Year 2024 Financial Highlights:
- Sales increased by $311,646, or 50.2%, to $932,154 for the year ended December 31, 2024, compared to $620,508 for the year ended December 31, 2023. This increase was mainly attributed to that fact, that the company shifted towards sales to OEMs integrations that contributed to a higher volume of sales rather than to the aftermarket segment. This shift is accompanied with recuring revenues.
- Cost of sales increased by $397,251, or 83.3%, to $873,861 for the year ended December 31, 2024, compared to $476,610 for the year ended December 31, 2023. The increase was mainly due to the increase in the volume of sales during the year ended December 31, 2024 and an inventory write off of approximately $114,680
- Research and development expenses increased by $1,506,552, or 237%, to $2,143,353 for the year ended December 31, 2024, compared to $636,801 for the year ended December 31, 2023. The increase resulted mainly from labor costs of $843,881 accompanied an increase in by materials and experiments costs of $386,839.
- Sales and marketing expenses increased by $593,099, or 121.6%, to $1,081,003 for the year ended December 31, 2024, compared to $487,904 for the year ended December 31, 2023. The increase resulted mainly from labor, professional services and more subcontractors' costs of $449,788 accompanied an increase in by travel and conferences participation costs of $122,288.
- General and administrative expenses increased by $927,128, or 62.9%, to $2,400,000 for the year ended December 31, 2024, compared to $1,472,872 for the year ended December 31, 2023. The increase resulted mainly from professional services rendered after the IPO and costs associated with becoming a public company.
- Other finance income, net was $200,724 for the year ended December 31, 2024, compared to finance income, net of $210,675 for the year ended December 31, 2023. Other finance income, net, primarily includes income from interest on deposits and exchange rate differences.
- Net loss and comprehensive loss increased by $7,282,851, or 193%, to $11,054,230 for the year ended December 31, 2024, compared to a net loss of $3,771,379 for the year ended December 31, 2023. The increase was the result of an increase of mainly a non-cash item, changes in fair value of derivative warrant liabilities, along with an increase in operating expenses, as described above.
- The loss per share in 2024, was $0.99 compared to net loss per share of $0.77 in 2023.
- As of December 31, 2024, the company's cash and cash equivalents was approximately $4.2 million and the company's total shareholders' deficit was approximately $0.3 million.
A copy of ParaZero's annual report on Form 20-F for the year ended December 31, 2024 has been filed with the U.S. Securities and Exchange Commission at https://www.sec.gov/ and posted on ParaZero's investor relations website at https://parazero.com/investor-relations/. ParaZero will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at michal@efraty.com.
About ParaZero Technologies
ParaZero (Nasdaq: PRZO) is an aerospace company focused on drone safety systems for defense and commercial drones and urban air mobility aircraft. Started in 2014 by a passionate group of aviation professionals and drone industry veterans, ParaZero designs smart, autonomous parachute safety systems designed to enable safe flight operations over populated areas and beyond-visual-line-of-sight (BVLOS) as well as for various military applications including Counter UAS. For more information about ParaZero, please visit https://parazero.com/
Forward-Looking Statements
This press release contains "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "expects,” "anticipates,” "intends,” "plans,” "believes,” "seeks,” "estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission ("SEC”), including, but not limited to, the risks detailed in the Company's Annual Report on Form 20-F filed with the SEC on March 21, 2025. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. ParaZero is not responsible for the content of third-party websites.
Investor Relations Contact:
Michal Efraty
Investor Relations
michal@efraty.com
ParaZero Technologies Ltd. | 30 Dov Hoz, Kiryat Ono, Israel 5555626
P: +972-36885252 | E: contact@parazero.com | F: +972-3-688-5246
| ParaZero Technologies Ltd. BALANCE SHEET (U.S. dollars in thousands, except share data and per share data) |
| Note | December 31, 2024 | December 31, 2023 | ||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | 4,178,866 | 7,428,405 | ||||||||
| Trade receivables | 114,564 | 22,376 | ||||||||
| Other current assets | 3,4 | 421,919 | 651,560 | |||||||
| Inventories | 5 | 394,193 | 264,468 | |||||||
| TOTAL CURRENT ASSETS | 5,109,542 | 8,366,809 | ||||||||
| NON-CURRENT ASSETS: | ||||||||||
| Restricted Deposit | 2Z | 68,001 | - | |||||||
| Prepaid expenses, net of current portion | 33,333 | - | ||||||||
| Operating lease right-of-use asset | 6 | 418,790 | 8,127 | |||||||
| Property and equipment, net | 7 | 107,906 | 49,981 | |||||||
| TOTAL NON-CURRENT ASSETS | 628,030 | 58,108 | ||||||||
| TOTAL ASSETS | 5,737,572 | 8,424,917 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY (U.S. dollars in thousands, except share data and per share data) |
| Note | December 31, 2024 | December 31, 2023 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Trade payables | 184,247 | 56,682 | ||||||||
| Operating lease liabilities | 6 | 202,563 | 7,543 | |||||||
| Other current liabilities | 9 | 933,995 | 690,861 | |||||||
| TOTAL CURRENT LIABILITIES | 1,320,805 | 755,086 | ||||||||
| NON-CURRENT LIABILITIES: | ||||||||||
| Derivative warrant liabilities | 13A | 4,511,491 | 1,564,773 | |||||||
| Operating lease liabilities, net of current portion | 216,917 | 0 | ||||||||
| TOTAL NON-CURRENT LIABILITIES | 4,728,408 | 1,564,773 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| SHAREHOLDERS' EQUITY (DEFICIT): | ||||||||||
| Ordinary shares, NIS 0.02 par value: Authorized 200,000,000 and 25,000,000 as of December 31, 2024 and December 31, 2023; Issued and outstanding 12,817,092 and 10,073,956 shares as of December 31, 2024 and as of December 31, 2023, respectively | 10A | 72,061 | 56,227 | |||||||
| Additional paid-in capital | 29,093,585 | 24,471,888 | ||||||||
| Accumulated losses | (29,477,287 | ) | (18,423,057 | ) | ||||||
| TOTAL SHAREHOLDERS' EQUITY (DEFICIT) | (311,641 | ) | 6,105,058 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | 5,737,572 | 8,424,917 | ||||||||
| STATEMENTS OF COMPREHENSIVE LOSS (U.S. dollars in thousands, except share data and per share data) |
| Year ended December 31, | ||||||||||||||
| Note | 2024 | 2023 | 2022 | |||||||||||
| Sales | 11 | 932,154 | 620,508 | 560,118 | ||||||||||
| Cost of Sales | 873,861 | 476,610 | 337,565 | |||||||||||
| Gross profit | 58,293 | 143,898 | 222,553 | |||||||||||
| Research and development expenses | 2,143,353 | 636,801 | 640,328 | |||||||||||
| Selling and marketing expenses | 1,081,003 | 487,904 | 264,728 | |||||||||||
| General and administrative expenses | 2,400,000 | 1,472,872 | 766,711 | |||||||||||
| Initial public offering expenses | - | 345,925 | 389,396 | |||||||||||
| Operating loss | 5,566,063 | 2,799,604 | 1,838,610 | |||||||||||
| Change in fair value of convertible notes | 8C1 | - | 504,976 | - | ||||||||||
| Change in fair value of derivative warrant liabilities | 13A | 5,688,891 | 277,600 | - | ||||||||||
| Issuance expenses attributable to derivate warrant liability | 10B | - | 247,129 | - | ||||||||||
| Interest expenses on related party loan | 15 | - | 152,745 | 17,386 | ||||||||||
| Other finance income, net | (200,724 | ) | (210,675 | ) | (202,958 | ) | ||||||||
| Net loss and comprehensive loss | 11,054,230 | 3,771,379 | 1,653,038 | |||||||||||
| Net loss per ordinary share, basic and diluted | 0.99 | 0.77 | 0.49 | |||||||||||
| Weighted-average number of ordinary shares outstanding, basic and diluted (*) | 11,129,978 | 4,891,071 | 3,349,071 | |||||||||||
| STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (U.S. dollars in thousands, except share data and per share data) |
| Ordinary shares | Additional | |||||||||||||||||||
| Number of shares | Amount | <
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