ParaZero Announces 2024 Financial Results
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.
Expanded operations in the defense sector & Recent Highlights:
-- 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 $(MOD)$.
Commercial developments:
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.
Regulatory approval:
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 $(DVR.AU)$ 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.
"2024 was a year of advancements for ParaZero, as recent geopolitical events have demonstrated the growing reliance on drones in modern warfare, both as offensive tools and as critical assets for delivering essential supplies in high-risk operational zones. At ParaZero, we have spent over a decade developing and refining our innovative, patent-protected technologies to address these evolving threats," stated Boaz Shetzer, CEO of ParaZero. "I am proud of the company's ability to successfully translate our innovation to meet the new needs of our customers and the market."
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.
As a result of the warrant exercise and registered direct offering in January 2025 and February 2025, and as of the date of this current report, the Company believes it has stockholders' equity of $3.6 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)
--------------------------------------------------
December 31, December 31,
Note 2024 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)
--------------------------------------------------
December 31, December 31,
Note 2024 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 paid-in Accumulated
shares Amount Capital Losses Total
----------- ------ ---------- ----------- -----------
U.S. dollars
BALANCE AS OF
DECEMBER 31,
2021 359,743 1,945 6,380,403 (12,998,640) (6,616,292)
Conversion of
Former Parent
Company's debt
into ordinary
shares and
warrants 3,237,699 19,511 6,403,797 -- 6,423,308
Stock based
compensation -- -- 91,377 -- 91,377
Benefit to the
Company by an
equity holder
with respect to
funding
transactions -- -- 112,715 -- 112,715
Comprehensive -- -- -- (1,653,038) (1,653,038)
---------- ------ ---------- ----------- -----------
BALANCE AS OF
DECEMBER 31,
2022 3,597,442 21,456 12,988,292 (14,651,678) (1,641,930)
Stock based
compensation -- -- 490,015 -- 490,015
Conversion of
convertible
note into
ordinary
shares 504,976 2,734 2,017,170 -- 2,019,904
Issuance of
ordinary shares
and warrants
upon initial
public
offering, net
of issuance
costs 1,950,000 10,561 5,919,064 -- 5,929,625
Issuance of
ordinary
shares,
pre-funded
warrants, and
warrants upon
private
placement, net
of issuance
costs (*) 4,021,538 21,476 3,045,180 -- 3,066,656
Benefit to the
Company by an
equity holder
with respect to
funding
transactions -- -- 12,167 -- 12,167
Comprehensive
loss -- -- -- (3,771,379) (3,771,379)
---------- ------ ---------- ----------- -----------
BALANCE AS OF
DECEMBER 31,
2023 10,073,956 56,227 24,471,888 (18,423,057) 6,105,058
Stock based
compensation -- -- 75,357 -- 75,357
Exercise of
pre-funded
warrants and
consultants
warrants (*) 1,088,590 5,792 (5,792) -- --
Exercise of
warrants A 1,654,546 10,042 4,552,132 -- 4,562,174
Comprehensive loss (11,054,230) (11,054,230)
---------- ------ ---------- ----------- -----------
BALANCE AS OF
DECEMBER 31,
2024 12,817,092 72,061 29,093,585 (29,477,287) (311,641)
STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except share data and
per share data)
--------------------------------------------------
Year ended December 31,
--------------------------------------
2024 2023 2022
------------ ---------- ----------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net loss (11,054,230) (3,771,379) (1,653,038)
Adjustments
required to
reconcile net loss
to net cash used
in operating
activities:
Depreciation 22,814 17,087 18,495
Stock based
compensation 75,357 14,815 52,286
Interest expenses
with respect to
funding from
related party -- 112,373 12,509
Change in fair
value of
convertible
loan -- 504,976 --
Changes in fair
value of
derivative
liabilities 5,688,891 277,600 --
Issuance
expenses
attributable to
derivative
warrant
liabilities -- 247,129 --
Inventory
write-down 114,617 33,360 12,387
Foreign currency
exchange
differences with
respect to amount
due to a Former
Parent Company -- -- (243,948)
Finance expenses 689 583 4,021
Loss from exchange
differences on
cash and
equivalents 31,579 -- --
Changes in
operating assets
and liabilities:
Trade receivables,
net (92,188) 161,689 (176,863)
Other current
assets 229,641 (472,020) (96,782)
Prepaid expenses,
net of current
portion (33,333)
Deferred initial
public offering
cost -- -- (252,041)
Inventories (244,343) 6,995 34,205
Operating lease
right-of-use
asset 135,266 48,766 (48,633)
Trade payables 127,565 9,422 10,145
Operating lease
liabilities (134,681) (45,911) (48,975)
Other current
liabilities 243,134 (83,785) 404,597
----------- ---------- ----------
Net cash used in
operating
activities (4,889,222) (2,938,300) (1,971,635)
----------- ---------- ----------
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Change in
restricted
deposit (68,001)
Purchase of
property and
equipment (80,738) (25,757) (9,725)
----------- ---------- ----------
Net cash used in
investing
activities (148,739) (25,757) (9,725)
----------- ---------- ----------
CASH FLOWS FROM
FINANCING
ACTIVITIES:
Cost associated
with the
conversion of the
Former Parent
Company's debt -- -- (84,780)
Proceeds from
issuance of
convertible
notes -- -- 1,514,928
Proceeds from
exercise of
warrants 1,820,001
Issuance of
ordinary shares
in initial
public offering,
net of issuance
costs (Note
10c) -- 6,695,957 --
Issuance of
ordinary shares,
pre-funded
warrants and
warrants in
private
placement, net
of issuance
costs (Note
10b) -- 4,106,699 --
Receipt of loan
from related
party -- 245,000 500,000
Repayment of loan
from related
party -- (745,000) --
Receipt of loans
from the Former
Parent Company -- -- 107,994
----------- ---------- ----------
Net cash provided
by financing
activities 1,820,001 10,302,656 2,038,142
----------- ---------- --
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