Jeffs’ Brands Enters into a Definitive Agreement with Scanary, Marking Entry into the Global Homeland Security Market

Rhea-AI Summary

Jeffs’ Brands (Nasdaq: JFBR) entered a definitive distribution agreement through its subsidiary KeepZone with Scanary to market AI‑radar 3D imaging threat‑detection systems, marking the company’s entry into the global homeland‑security market on Dec 5, 2025.

Key terms: exclusive distribution in Canada, Germany, UAE for an initial 24 months (extendable 24 months if a cumulative purchase target of 20 systems is met), non‑exclusive rights in Spain and Italy, a one‑time payment of $1.0M payable in five monthly installments, one free demo unit, and repayment via 10% of Scanary’s profits from sales outside exclusive territories.

Positive

• Exclusive distribution rights in Canada, Germany, UAE
• Initial payment capped at $1,000,000 payable over 5 months
• Demo unit plus technical support provided for pre‑sales
• Repayment structured via 10% of Scanary profits outside exclusive territories
• Product claims: scans up to 25,000 people per hour

Negative

• Upfront $1,000,000 cash obligation may pressure liquidity
• Extension requires achieving cumulative purchase target of 20 systems
• Repayment depends on Scanary profits outside exclusive territories
• Non‑exclusive rights in Spain and Italy may limit market control

Key Figures

Throughput capacity 25,000 people per hour Scanary AI-radar screening systems in open spaces

Detection speed under two seconds Real-time threat detection per person

Market size 2022 $11.4 billion Security scanning equipment market value in 2022

Units dispatched over 1 million units Security-scanning equipment dispatched in 2022

CAGR forecast over 7% Expected 2023–2032 security scanning equipment market CAGR

Exclusive term 24-month period Initial exclusivity in Canada, Germany, UAE

Purchase target 20 systems Threshold to extend exclusivity another 24 months

Upfront payment $1 million One-time consideration to Scanary, in five $200,000 installments

Market Reality Check

$2.52 Last Close

Volume Volume 420,668 vs. 20-day average 123,798 (about 3.4x higher), indicating elevated interest ahead of this deal. high

Technical Price $2.52 is trading well below the 200-day MA of $9.56, despite a 30.57% daily gain.

Peers on Argus 2 Down

JFBR moved up 30.57% while momentum-flagged peers WBUY and WNW both moved down (-5.43%, -12.88%), pointing to a stock-specific reaction rather than a broad internet retail move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 01	Homeland AI MOU	Positive	+0.6%	Non-binding MOU to acquire Scanary AI security distribution rights.
Nov 17	Scanary MOU terms	Positive	-6.7%	Details of non-binding MOU for multi-country AI screening distribution.
Oct 16	AI pest app launch	Positive	-6.3%	Launch of AI-powered pest control app on Android completing rollout.
Oct 06	H1 results & merger	Positive	-2.1%	Record H1 revenue, logistics profit, new CEO, crypto treasury program.
Sep 22	Record H1 revenue	Positive	-4.1%	Record H1 revenues and improved cash position across subsidiaries.

Pattern Detected

Recent positive news has often seen negative price follow-through, with 4 of the last 5 upbeat releases followed by declines.

Recent Company History

This announcement extends a series of AI- and security-focused initiatives. On Sep 22 and Oct 6, JFBR reported record H1 $6.9M revenue, growing logistics and Fort Technology businesses, stronger cash of $6M, and an AI-driven crypto treasury program up to $75M. Subsequent AI product and Scanary MOU updates in October and November drew muted to negative reactions, so today’s definitive agreement formalizes a strategy that the market had previously discounted.

Market Pulse Summary

The stock is surging +45.6% following this news. A strong positive reaction aligns with JFBR finally moving from a non-binding MOU to a definitive distribution agreement, clarifying its entry into the homeland security market. Historically, 4 of the last 5 upbeat updates were followed by price declines, so sustaining gains could depend on execution, order flow in the new territories, and how investors reassess a stock still trading well below its 200-day MA despite today’s move.

AI-generated analysis. Not financial advice.

Tel Aviv, Israel, Dec. 05, 2025 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR, JFBRW), a data-driven e-commerce company operating on the Amazon Marketplace, announced today that KeepZone AI Inc., its wholly owned subsidiary (“KeepZone” or the “Subsidiary”) has entered into a definitive distribution agreement (the “Agreement”) with Scanary Ltd. (“Scanary”), an Israeli deep-tech developer of 3D imaging, electromagnetic, AI-powered threat detection systems. This transaction marks the Company’s strategic entry into the fast-growing global homeland-security sector.

Under the Agreement, Scanary grants KeepZone the right to market and distribute Scanary’s groundbreaking AI-radar screening systems, capable of scanning up to 25,000 people per hour in open spaces without requiring them to stop. The system removes the need for traditional checkpoints and physical pat-downs, delivering seamless, real-time threat detection in under two seconds using advanced 3D imaging and AI that automatically disregards phones, keys, and other harmless objects. It is ideally suited for airports, stadiums, transit hubs, critical infrastructure, sensitive facilities, and major events – precisely the venues where demand for frictionless, high-throughput security is surging.

According to Global Market Insights report, the security scanning equipment market was valued at over $11.4 billion in 2022, with over 1 million security-scanning units dispatched, and is anticipated to grow at a CAGR of over 7% between 2023 and 2032.

Key terms of the definitive agreement include:

• Exclusive distribution rights for the systems in Canada, Germany, and the United Arab Emirates for an initial 24-month period, automatically extendable for an additional 24-month period upon achieving a cumulative purchase target of 20 systems; and
• Non-exclusive distribution rights in Spain and Italy.

Pursuant to the terms of the Agreement, in consideration for these exclusive rights, KeepZone agreed to make a one-time payment of $1 million to Scanary, payable in five equal monthly installments of $200,000, with each installment due at the end of each calendar month following the execution of the Agreement. Scanary will provide one free demonstration unit and technical support for pre-sales activities. The payment is fully repayable to KeepZone through periodic revenue payments of 10% of Scanary’s profits from sales outside the exclusive territories, in accordance with the terms of the Agreement.

About Jeffs’ Brands

Jeffs’ Brands aims to transform the world of e-commerce by creating and acquiring products and turning them into market leaders, tapping into vast, unrealized growth potential. Through the Company’s management team’s insight into the FBA Amazon business model, it aims to use both human capability and advanced technology to take products to the next level. For more information on Jeffs’ Brands visit https://jeffsbrands.com.

Forward-Looking Statement Disclaimer

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, the Company is using forward-looking statements when discussing the commercial opportunities under the Agreement and the belief that this collaboration could open new markets and growth opportunities. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the Company’s ability to adapt to significant future alterations in Amazon’s policies; the Company’s ability to sell its existing products and grow the Company’s brands and product offerings; the Company’s ability to meet its expectations regarding the revenue growth and the demand for e-commerce; the overall global economic environment; the impact of competition and new e-commerce technologies; general market, political and economic conditions in the countries in which the Company operates; projected capital expenditures and liquidity; the impact of possible changes in Amazon’s policies and terms of use; the impact of the conditions in Israel; and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (“SEC”), on March 31, 2025, and the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Relations Contact:

Michal Efraty
Adi and Michal PR- IR
Investor Relations, Israel
michal@efraty.com

FAQ

What did Jeffs’ Brands (JFBR) announce on Dec 5, 2025 regarding Scanary?

Jeffs’ Brands subsidiary KeepZone signed a definitive distribution agreement to sell Scanary AI‑radar 3D imaging security systems.

Which territories does the JFBR agreement grant exclusive distribution rights for?

The agreement grants exclusive rights in Canada, Germany, and the United Arab Emirates for an initial 24‑month period.

How much will KeepZone pay Scanary and what is the payment schedule under JFBR deal?

KeepZone agreed to a one‑time $1,000,000 payment, payable in five equal monthly installments of $200,000.

What performance and commercial conditions affect the JFBR exclusive extension?

The initial 24‑month exclusivity automatically extends 24 months if a cumulative purchase target of 20 systems is achieved.

How is the $1M payment to Scanary refundable under the JFBR agreement?

The payment is repayable to KeepZone through periodic revenue payments equal to 10% of Scanary’s profits from sales outside the exclusive territories.

What product throughput did Scanary claim for the systems JFBR will distribute?

Scanary’s AI‑radar screening systems are claimed to scan up to 25,000 people per hour with detections under two seconds.