KFAR SABA, Israel, Aug. 28, 2025 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the "company" or "ParaZero"), an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry, reported today its financial results for the six months ended June 30, 2025.
Key Highlights of ParaZero's Achievements in the First Half of 2025 & Recent Updates:
Financial and Corporate Updates:
-- Sales increased by 26.6% to $357,979 for the six months ended June 30,
2025.
-- ParaZero raised approximately $3.1 million and $2.2 million in gross
proceeds from registered direct offerings in February 2025 and August
2025, respectively
-- Appointed Ariel Alon, a senior UAV executive, as company's CEO.
Counter-Drone Systems:
-- ParaZero bolstered its counter-drone technology with approval from the
Israeli Defense Export Controls Agency $(DECA)$ under the Israeli Ministry
of Defense approval to market DefendAir globally, targeting a high-growth
market.
-- Showcased DefendAir Hand-Held Net Launcher in two field tests with a
select group of Israeli security and defense professionals, each
demonstrating a 100% interception success rate, effectively neutralizing
every fast-incoming multirotor drone threat in real-time scenarios.
-- Conducted several field trials of updated configurations to provide
solutions to different evolving drone threat scenarios, at the discretion
of defense entities, which further strengthened its market position. The
company quickly reshaped its strategy, technology, and IP assets to
address one of the world's biggest commercial, homeland security, and
defense challenges: the threats posed by drones.
Airdrop Systems:
-- Enhanced its portfolio with successful DropAir precise airdrop system
tests for critical supply delivery. Integrated with military and several
commercial drones, DropAir enabled rapid autonomous and accurate supply
through drones in the most challenging terrains in general, and the
supplement of blood transfusions in combat specifically, as shown in a
defense demo.
-- Progressed to Phase II with the Israeli Ministry of Defense, focusing on
delivering pilot systems for implementation and additional operational
testing in various scenarios.
-- Secured global marketing approvals from DECA under the Israeli Ministry
of Defense for collaborations with Heven Drones and Stedicopter after
full integration with their platforms.
Ariel Alon, CEO of ParaZero, commented: "As the newly appointed CEO of ParaZero Technologies, I am thrilled to lead a company with such immense potential in the rapidly growing counter-drone and defense markets. We believe that our recent successes, including securing approvals from DECA under the Israeli Ministry of Defense for the global marketing of our DefendAir counter-UAS system and achieving a 100% interception rate in live field demonstrations, position us well at the forefront of a market projected to grow from USD 3.10 billion in 2025 to USD 12.24 billion by 2032, with a CAGR of 21.62%. Our advancements in precision airdrop systems like DropAir, coupled with our strategic partnerships, demonstrate our capability to deliver cutting-edge solutions. I see tremendous potential opportunities to drive innovation and capture market share in this dynamic, high-growth sector."
First Half 2025 Financial Highlights:
-- Sales totaled to $357,979 for the six months ended June 30, 2025,
compared to $282,693 for the six months ended June 30, 2024. This
increase was mainly attributed to the company shifting towards sales of
newly developed products, mainly in the defense sector, and original
equipment manufacturer integrations that contributed to a higher volume
of sales rather than to the aftermarket segment.
-- Cost of sales amounted to $431,888 for the six months ended June 30,
2025, compared to $209,529 for the six months ended June 30, 2024. The
increase was mainly due to the increase in the volume of sales and
product mix during the six months ended June 30, 2025, an inventory
write-off and higher overhead costs and personnel related to the new
lease for our corporate offices and headquarters.
-- Research and development expenses for the six months ended June 30, 2025,
amounted to $1,155,436, compared to $662,440 for the six months ended
June 30, 2024. The increase resulted mainly from labor costs due to the
increased number of employees and contractors' costs.
-- Selling and marketing expenses totaled $752,420 for the six months ended
June 30, 2025, compared to $516,401 for the six months ended June 30,
2024. The increase resulted mainly from labor costs and marketing
services, accompanied by an increase in travel and conferences
participation costs.
-- General and administrative expenses totaled $1,670,513 for the six months
ended June 30, 2025, compared to $1,122,759 for the six months ended June
30, 2024. The increase resulted mainly from non-cash expenses related to
grants pursuant to our equity incentive plan and certain filing services.
-- Comprehensive and net loss amounted to $2,295,955 for the six months
ended June 30, 2025, compared to a net loss of $2,026,094 for the six
months ended June 30, 2024. The increase was the result of changes in
fair value of derivative warrant liabilities, along with an increase in
expenses related to grants pursuant to our equity incentive plan along
with an increase of operating expenses, as described above.
-- Net loss per share for the six months of 2025 was $0.14 compared to net
loss per share of $0.19 for the six months ended June 30, 2024.
-- As of June 30, 2025, the Company's cash, cash equivalents and short-term
deposits were $4.86 million and approximately $6.2 million as of August
27, 2025.
About ParaZero Technologies
ParaZero Technologies Ltd. (Nasdaq: PRZO) is an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry. Founded in 2014 by aviation professionals and drone industry veterans, ParaZero is a recognized leader in advanced drone technologies, supporting commercial, industrial, and governmental operations worldwide. The company's product portfolio includes SafeAir, an autonomous parachute recovery system designed for aerial safety and regulatory compliance; DefendAir, a counter-UAS net-launching platform for protection against hostile drones in both battlefield and urban environments; and DropAir, a precision aerial delivery system. ParaZero's mission is to redefine the boundaries of aerial operations with intelligent, mission-ready systems that enhance safety, scalability, and security. For more information, 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. For example, ParaZero is using forward-looking statements when it discusses the potential of the company, the rapidly growing counter-drone and defense markets, it belief that its recent successes position it to be at the forefront of the growth in the global anti-drone market and its potential opportunities to drive innovation and capture market share. 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.
BALANCE SHEET
(U.S. dollars in thousands, except share data and
per share data)
------------------------------------------------------------------
June 30, December 31,
Note 2025 2024
---- --------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,365,582 4,178,866
Short term deposits 2,500,000 --
Trade receivables 36,675 114,564
Other current assets 3 550,044 421,919
Inventories 340,461 394,193
--------- ------------
TOTAL CURRENT ASSETS 5,792,762 5,109,542
--------- ------------
NON-CURRENT ASSETS:
Restricted deposit 4 76,364 68,001
Prepaid expenses 15,728 33,333
Operating lease right-of-use
asset 5 332,449 418,790
Property and equipment, net 114,962 107,906
--------- ------------
TOTAL NON-CURRENT ASSETS 539,503 628,030
--------- ------------
TOTAL ASSETS 6,332,265 5,737,572
========= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
(U.S. dollars in thousands, except share data and
per share data)
------------------------------------------------------------------
June 30, December 31,
Note 2025 2024
---- ----------- ------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 182,322 184,247
Operating lease
liabilities 5 218,985 202,563
Other current liabilities 6 835,830 933,995
----------- ------------
TOTAL CURRENT LIABILITIES 1,237,137 1,320,805
----------- ------------
NON-CURRENT LIABILITIES:
Operating lease
liabilities, net of
current portion 5 141,169 216,917
Derivative warrant
liabilities 7 1,424,033 4,511,491
----------- ------------
TOTAL NON-CURRENT LIABILITIES 1,565,202 4,728,408
----------- ------------
COMMITMENTS AND CONTINGENCIES 9
SHAREHOLDERS' DEFICIT 8
Ordinary shares, NIS 0.02
par value: Authorized
200,000,000 as of June
30, 2025 and December 31,
2024; Issued and
outstanding 17,063,630
and 12,817,092 shares as
of June 30, 2025 and as
of December 31, 2024,
respectively 95,782 72,061
Additional paid-in capital 35,207,386 29,093,585
Accumulated losses (31,773,242) (29,477,287)
----------- ------------
TOTAL SHAREHOLDERS' EQUITY 3,529,926 (311,641)
----------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 6,332,265 5,737,572
=========== ============
STATEMENTS OF COMPREHENSIVE LOSS
(U.S. dollars in thousands, except share data and
per share data)
--------------------------------------------------------------------
Six months ended Six months ended
June 30, June 30,
2025 2024
----------------- ----------------
U.S. dollars
------------------------------------
Sales 357,979 282,693
Cost of Sales 431,888 209,529
---------------- ----------------
GROSS PROFIT (LOSS) (73,909) 73,164
Research and development
expenses 1,155,436 662,440
Selling and marketing
expenses 752,420 516,401
General and
administrative expenses 1,670,513 1,122,759
---------------- ----------------
OPERATING LOSS (3,652,278) (2,228,436)
Change in fair value of
derivative warrant
liabilities 1,253,042 67,227
Other finance income, net 103,281 135,115
================ ================
NET LOSS AND COMPREHENSIVE
LOSS (2,295,955) (2,026,094)
================ ================
Net loss per ordinary share,
basic and diluted (0.14) (0.19)
================ ================
Weighted average number of
ordinary shares
outstanding, basic and
diluted 16,018,334 10,940,958
================ ================
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)
(U.S. dollars in thousands, except share data and
per share data)
---------------------------------------------------------------------------------
Ordinary shares Additional
-------------------
Number paid-in Accumulated
of shares Amount capital losses Total
----------- ------ ---------- ----------- ----------
BALANCE AS OF
DECEMBER 31, 2023 10,073,956 56,227 24,471,888 (18,423,057) 6,105,058
CHANGES DURING
THE SIX MONTHS
ENDED JUNE 30,
2024:
Stock based
compensation - - 26,434 - 26,434
Exercise of
pre-funded
warrants and
consultant
warrants (Note
8B) 1,088,590 5,792 (5,792) - -
Comprehensive
loss - - - (2,026,094) (2,026,094)
---------- ------ ---------- ----------- ----------
BALANCE AS OF JUNE
30, 2024 11,162,546 62,019 24,492,530 (20,449,151) 4,105,398
========== ====== ========== =========== ==========
BALANCE AS OF
DECEMBER 31, 2024 12,817,092 72,061 29,093,585 (29,477,287) (311,641)
CHANGES DURING
SIX MONTHS ENDED
JUNE 30, 2025:
Issuance of
ordinary shares
and pre-funded
warrants, net
of issuance
costs (Note
8D) 2,818,182 15,762 2,516,733 2,532,495
Stock based
compensation 511,818 511,818
Issuance of
ordinary shares
from vested
restricted
share units 283,999 1,611 (1,611) -
Exercise of
series A
warrants (Note
8B) 1,144,357 6,348 3,086,861 3,093,209
Comprehensive
loss (2,295,955) (2,295,955)
---------- ------ ---------- ----------- ----------
BALANCE AS OF JUNE
30, 2025 17,063,630 95,782 35,207,386 (31,773,242) 3,529,926
========== ====== ========== =========== ==========
STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except share data and
per share data)
--------------------------------------------------------------------
Six months ended
June 30,
------------------------
2025 2024
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss (2,295,955) (2,026,094)
Adjustments required to reconcile net
loss to net cash used in operating
activities:
Depreciation 13,762 10,448
Stock based compensation 511,818 26,434
Inventory write-down 81,677 --
Changes in fair value of derivative
liabilities (1,253,042) (67,227)
Loss from exchange differences on cash
and cash equivalents 5,640 2,850
Finance (expenses) income 27,015 (14,104)
Changes in operating assets and
liabilities:
Trade receivables, net 77,889 (89,622)
Other current assets (128,125) (34,221)
Prepaid expenses 17,605 --
Inventories (27,945) (113,261)
Operating lease right-of use asset 86,341 53,863
Trade payables (1,925) 134,346
Operating lease liabilities (86,341) (53,279)
Other current liabilities (98,165) 166,386
---------- ----------
Net cash used in operating activities (3,069,751) (2,003,481)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short term deposits (2,500,000) --
Change in restricted deposit (8,363) (68,603)
Purchase of property and equipment (20,818) (64,366)
---------- ----------
Net cash used in investing activities (2,529,181) (132,969)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of series A
warrants (Note 8B) 1,258,793 --
Issuance of ordinary shares and
prefunded warrants, net of issuance
costs (Note 8D) 2,532,495 --
---------- ----------
Net cash from financing activities 3,791,288 --
---------- ----------
Effect of exchange rate changes on cash,
cash equivalents (5,640) (2,850)
Net decrease in cash and cash
equivalents (1,813,284) (2,139,300)
Cash and cash equivalents at beginning
of period 4,178,866 7,428,405
---------- ----------
Cash and cash equivalents at end of
period 2,365,582 5,289,105
========== ==========
(END) Dow Jones Newswires
August 28, 2025 16:15 ET (20:15 GMT)