KFAR SABA, Israel, March 26, 2026 (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, today announced its financial results for year ended December 31, 2025.
Key Highlights of ParaZero's Achievements in 2025 & Recent Highlights:
-- Sales increased by 12.3% to $1,046,644 for the year ended December 31,
2025, primarily driven by newly developed products in the defense sector
-- Three purchase orders received from Israeli defense entities for
DefendAir Counter-Unmanned Aerial Systems solutions reinforcing trust and
operational reliance on ParaZero's DefendAir platform.
-- Cash position strengthened with registered direct offerings in 2026
yielding approximately $7.5 million in gross proceeds.
Commercial and Regulatory Milestones
-- In January 2025, ParaZero announced that it received official approval
from the Israeli Defense Export Controls Agency $(DECA)$ under the Israel
Ministry of Defense for the marketing of the DefendAir counter-UAS
(C-UAS) solution.
-- In April 2025, ParaZero received a marketing approval from DECA for the
DropAir$(TM)$ Precision Airdrop System, developed in collaboration with
Heven Drones, a leading U.S. drone manufacturer with roots in Israel that
specializes in custom autonomous UAS platforms.
-- In October 2025, ParaZero announced the signing of a significant purchase
order with Airobotics Ltd.(an Ondas company), a premier provider of
robotic automation solutions, for the delivery of the company's advanced
safety systems.
-- In November 2025, ParaZero received a significant purchase order for its
DefendAir anti-drone defense systems from a Dutch distributor, one of
Europe's largest integrators that serves as a leading supplier of defense
and homeland security applications.
-- In December 2025, ParaZero signed a distribution agreement with a leading
Western European distributor specializing in advanced defense systems and
force training solutions, which grants the distributor exclusive rights
to distribute the DefendAir C-UAS across multiple Western European
countries.
-- In January 2026, ParaZero announced the receipt of the first purchase
order from a main Israeli defense entity for the DefendAir solution.
-- In February 2026, ParaZero announced the receipt of an additional order
from a second branch at an Israeli defense entity for the DefendAir
solution. The order included:
-- Specialized Launchers: High-precision net-launchers designed for
rapid deployment in urban and field environments, enabling
soft-kill interception of hostile drones with minimal collateral
damage.
-- Interception Pods: net-pods compatible with handheld, stationary,
and drone-mounted configurations, providing layered defense for
troops, convoys, and critical infrastructure.
-- Training Package: A comprehensive suite of simulation-based and
live-fire training modules to ensure operational readiness,
including system integration, maintenance, and tactical deployment
scenarios.
-- In March 2026, ParaZero announced the receipt of a new purchase order
from an Israeli defense entity for the DefendAir solution. The order
included the delivery of an evaluation kit including DefendAir's net pods
live exercise and training to support rapid operational deployment and
maximize readiness.
-- In March 2026, ParaZero signed a strategic cooperation agreement with
BonV Aero, a leading Indian aerospace and defense technologies
manufacturer, under which BonV Aero will market the DefendAir C-UAS
solutions in India, following a successful live demonstration to a key
Indian security entity.
Full Year 2025 Financial Highlights:
-- Sales increased by 12.3%, to $1,046,664 for the year ended December 31,
2025, compared to $932,154 for the year ended December 31, 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.
-- Cost of sales increased by 14.1%, to $996,701 for the year ended
December 31, 2025, compared to $873,861 for the year ended December 31,
2024. The increase was mainly due to the increase of an inventory
write-off of $194,344 during the year ended December 31, 2025.
-- Research and development expenses increased by 9.1%, to $2,338,221 for
the year ended December 31, 2025, compared to $2,143,353 for the year
ended December 31, 2024. The increase resulted mainly from labor costs
due to the increased number of employees and consultants' costs.
-- Sales and marketing expenses increased by 49.7%, to $1,618,187 for the
year ended December 31, 2025, compared to $1,081,003 for the year ended
December 31, 2024. The increase resulted mainly from labor costs,
marketing and promotion services and travel and conferences participation
costs.
-- General and administrative expenses increased by 51.7%, to $3,640,967 for
the year ended December 31, 2025, compared to $2,400,000 for the year
ended December 31, 2024. The increase resulted mainly from non-cash
expenses of $1,086,247 related to grants pursuant to our equity incentive
plan.
-- Net loss and comprehensive loss decreased by 51%, to $5,412,163 for the
year ended December 31, 2025, compared to a net loss of $11,054,230 for
the year ended December 31, 2024. The decrease was the result of changes
in fair value of derivative warrant liabilities, set off by an increase
in expenses related to grants pursuant to our equity incentive plan along
with an increase of operating expenses, as described above.
-- The loss per share for the year ended December 31, 2025, was $0.31
compared to loss per share of $0.99 for the year ended December 31, 2024.
-- As of December 31, 2025, the company's cash, cash equivalents, and
short-term deposits was approximately $4.2 million.
A copy of ParaZero's annual report on Form 20-F for the year ended December 31, 2025 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 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. 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 26, 2026 and in subsequent filings with the SEC. 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 SHEETS
(US dollars)
December 31, December 31,
Note 2025 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,159,313 4,178,866
Short term deposits 2,000,000 --
Trade receivables 185,494 114,564
Other current assets 3 283,010 421,919
Inventories 5 204,480 394,193
------------ ------------
TOTAL CURRENT ASSETS 4,832,297 5,109,542
------------ ------------
NON-CURRENT ASSETS:
Restricted deposit 2Z 80,721 68,001
Prepaid expenses 12,153 33,333
Operating lease right-of-use asset 6 273,925 418,790
Property and equipment, net 7 106,224 107,906
------------ ------------
TOTAL NON-CURRENT ASSETS 473,023 628,030
------------ ------------
TOTAL ASSETS 5,305,320 5,737,572
------------ ------------
PARAZERO TECHNOLOGIES LTD.
BALANCE SHEETS
(US dollars)
December 31, December 31,
Note 2025 2024
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
CURRENT LIABILITIES:
Trade payables 116,491 184,247
Operating lease liabilities 6 245,682 202,563
Other current liabilities 9 966,612 933,995
------------ ------------
TOTAL CURRENT LIABILITIES 1,328,785 1,320,805
------------ ------------
NON-CURRENT LIABILITIES:
Derivative warrant liabilities 13A 758,872 4,511,491
Operating lease liabilities, net
of current portion 61,002 216,917
------------ ------------
TOTAL NON-CURRENT LIABILITIES 819,874 4,728,408
------------ ------------
SHAREHOLDERS' EQUITY (DEFICIT):
Ordinary shares, NIS 0.02 par
value: Authorized 200,000,000 as
of December 31, 2025 and December
31, 2024; Issued and outstanding
19,666,030 and 12,817,092 shares
as of December 31, 2025 and as of
December 31, 2024, respectively 10 111,163 72,061
Additional paid-in capital 37,934,948 29,093,585
Accumulated losses (34,889,450) (29,477,287)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY
(DEFICIT) 3,156,661 (311,641)
------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT) 5,305,320 5,737,572
------------ ------------
PARAZERO TECHNOLOGIES LTD.
STATEMENTS OF COMPREHENSIVE LOSS
(US dollars)
Year ended December 31,
-----------------------------------
Note 2025 2024 2023
---------- ---------- ---------
Sales 11 1,046,664 932,154 620,508
Cost of Sales 996,701 873,861 476,610
---------- ---------- ---------
Gross profit 49,963 58,293 143,898
Research and
development
expenses 2,338,221 2,143,353 636,801
Selling and
marketing expenses 1,618,187 1,081,003 487,904
General and
administrative
expenses 3,640,967 2,400,000 1,472,872
Initial public
offering expenses 2I -- -- 345,925
---------- ---------- ---------
Operating loss 7,547,412 5,566,063 2,799,604
Change in fair value
of convertible
notes 8 -- -- 504,976
Change in fair value
of derivative
warrant
liabilities 13A (1,918,203) 5,688,891 277,600
Issuance expenses
attributable to
derivate warrant
liability 10B -- -- 247,129
Interest expenses on
related party loan 15 -- -- 152,745
Other finance
income, net (217,046) (200,724) (210,675)
---------- ---------- ---------
Net loss and
comprehensive loss 5,412,163 11,054,230 3,771,379
---------- ---------- ---------
Net loss per
ordinary share,
basic and diluted 0.31 0.99 0.77
---------- ---------- ---------
Weighted-average
number of ordinary
shares outstanding,
basic and diluted
(*) 17,473,499 11,129,978 4,891,071
---------- ---------- ---------
PARAZERO TECHNOLOGIES LTD.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)
(US dollars)
Ordinary shares Additional
Number of paid-in Accumulated
shares Amount Capital Losses Total
---------- -------
U.S. dollars
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)
Issuance of
ordinary
shares and
pre-funded
warrants, net
of issuance
costs -
February 2025
(Note 10f) 2,818,182 15,762 2,516,733 2,532,495
Issuance of
ordinary
shares and
pre-funded
warrants, net
of issuance
costs -
August 2025
(Note 10g) 2,000,001 11,748 2,009,749 2,021,497
Stock based
compensation 1,233,263 1,233,263
Issuance of
shares upon
restricted
share units
vesting 886,398 5,244 (5,244) --
Exercise of
series A
warrants
(Note 10) 1,144,357 6,348 3,086,862 3,093,210
Comprehensive
loss (5,412,163) (5,412,163)
BALANCE AS OF
DECEMBER 31,
2025 19,666,030 111,163 37,934,948 (34,889,450) 3,156,661
(*) Includes shares issued following a cashless exercise
PARAZERO TECHNOLOGIES LTD.
STATEMENTS OF CASH FLOWS
(US dollars)
Year ended December 31,
-------------------------------------
2025 2024 2023
---------- ----------- ----------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss (5,412,163) (11,054,230) (3,771,379)
Adjustments required to
reconcile net loss to net
cash used in operating
activities:
Depreciation 29,174 22,814 17,087
Loss on disposal of property
and equipment 312
Stock based compensation 1,233,263 75,357 14,815
Interest expenses with
respect to funding from
related party -- -- 112,373
Change in fair value of
convertible loan -- -- 504,976
Changes in fair value of
derivative liabilities (1,918,203) 5,688,891 277,600
Issuance expenses
attributable to derivative
warrant liabilities -- -- 247,129
Inventory write-down 194,344 114,617 33,360
Finance expenses 34,371 689 583
Loss (gain) from exchange
differences on cash and
equivalents (12,238) 31,579 --
Changes in operating assets
and liabilities:
Trade receivables, net (70,930) (92,188) (161,689)
Other current assets 138,909 229,641 (472,020)
Prepaid expenses 21,180 (33,333)
Inventories (4,631) (244,343) 6,995
Operating lease right-of-use
asset 179,323 135,266 48,766
Trade payables (67,756) 127,565 9,422
Operating lease liabilities (181,624) (134,681) (45,911)
Other current liabilities 32,617 243,134 (83,785)
---------- ----------- ----------
Net cash used in operating
activities (5,804,052) (4,889,222) (2,938,300)
---------- ----------- ----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Change in restricted deposit (12,720) (68,001)
Purchase of property and
equipment (27,804) (80,738) (25,757)
Investment in short term
deposits (2,000,000)
Net cash used in investing
activities (2,040,524) (148,739) (25,757)
---------- ----------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from exercise of
series A warrants (Note
10b) 1,258,793 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 10f and 10g) 4,553,992 -- 4,106,699
Receipt of loan from related
party -- -- 245,000
Repayment of loan from
related party -- -- (745,000)
---------- ----------- ----------
Net cash provided by
financing activities 5,812,785 1,820,001 10,302,656
---------- ----------- --
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