Jeffs’ Brands Plans to Enter the Homeland Security Market with a Unique Security AI Screening Technology

Rhea-AI Summary

Jeffs' Brands (Nasdaq: JFBR) entered a non-binding MOU to acquire distribution rights for Scanary's AI-driven 3D electromagnetic imaging screening systems, marking a strategic pivot toward homeland security.

The MOU grants exclusive rights in Canada, Germany and UAE for 24 months (renewable 24 months upon cumulative purchase of 20 systems) and non-exclusive rights in Spain and Italy. Jeffs' Brands Holdings would pay $1,000,000 in five monthly installments, receive one demo system, and obtain technical pre-sales support. Payment is repayable via 10% of Scanary's profits from sales outside exclusive territories. Parties aim to execute a definitive agreement within 30 days, subject to due diligence; completion is not guaranteed.

Positive

• Exclusive distribution rights in Canada, Germany, UAE for 24 months
• Non-exclusive rights in Spain and Italy
• One demo system plus technical support provided
• Payment structure partly repayable via 10% of Scanary profits

Negative

• MOU is non-binding; definitive agreement not guaranteed
• Initial exclusivity renews only after 20-system cumulative purchase
• Immediate cash outflow of $1,000,000 payable over five months
• Definitive agreement target of 30 days creates tight timeline risk

News Market Reaction – JFBR

+0.56% 2.8x vol

15 alerts

+0.56% News Effect

+3.4% Peak Tracked

-24.6% Trough Tracked

+$8K Valuation Impact

$1M Market Cap

2.8x Rel. Volume

On the day this news was published, JFBR gained 0.56%, reflecting a mild positive market reaction. Argus tracked a peak move of +3.4% during that session. Argus tracked a trough of -24.6% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $8K to the company's valuation, bringing the market cap to $1M at that time. Trading volume was elevated at 2.8x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Screening capacity: 25,000 people per hour Threat detection speed: Under two seconds Market size: USD 11.4 billion +5 more

8 metrics

Screening capacity 25,000 people per hour Scanary AI-radar screening system throughput

Threat detection speed Under two seconds Real-time scanning decision per person

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

Market volume 1,000 thousand units Security scanning equipment units dispatched in 2022

Market CAGR 7% Expected CAGR 2023–2032 for security scanning equipment

Upfront payment $1,000,000 One-time consideration for exclusive rights

Installment size $200,000 Five equal monthly installments after definitive agreement

Profit share 10% Share of Scanary profits from sales outside exclusive territories

Market Reality Check

Price: $4.40 Vol: Volume 530,923 is below t...

low vol

$4.40 Last Close

Volume Volume 530,923 is below the 20-day average of 2,967,314, suggesting limited pre-news positioning. low

Technical Shares at 1.37 are trading below the 200-day MA of 9.02 and far under the 54.06 52-week high.

Peers on Argus

Peers in Internet Retail show mixed, mostly modest moves (e.g., WNW up 5.56%, IP...

Peers in Internet Retail show mixed, mostly modest moves (e.g., WNW up 5.56%, IPW up 2.33%, JWEL down 0.8%), indicating JFBR’s AI homeland-security pivot is stock-specific rather than a sector-wide move.

Historical Context

5 past events · Latest: Dec 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 10	Territory expansion	Positive	+2.8%	Expanded Scanary distribution to Israeli stadiums with initial $200,000 installment.
Dec 08	Leadership change	Positive	+13.8%	Appointed security-focused CEO to lead KeepZone AI and Scanary rollout.
Dec 05	Definitive agreement	Positive	-36.5%	Signed definitive Scanary distribution deal with exclusivity and $1M payment.
Dec 01	Homeland pivot MOU	Positive	+0.6%	Announced MOU for AI screening tech distribution and strategic sector pivot.
Nov 17	Initial MOU	Positive	-6.7%	First MOU with Scanary for multi-country AI screening exclusivity and rebrand.

Pattern Detected

AI and security-related announcements have produced mixed reactions, with both positive and sharply negative moves, suggesting inconsistent market conviction around strategic pivots.

Recent Company History

Over the last six months, Jeffs’ Brands has shifted from e‑commerce toward AI-driven security. The Nov 17 MOU with Scanary outlined multi-country distribution and a planned rebrand, followed by this Dec 1 MOU update detailing exclusivity, payment structure, and a 30‑day timeline for a definitive deal. A definitive agreement on Dec 5 and subsequent expansion in Israel, plus leadership changes at KeepZone AI, underline a rapid execution of the homeland security strategy, with volatile price responses.

Market Pulse Summary

This announcement outlined a planned shift into homeland security via a non-binding MOU for Scanary’...

Analysis

This announcement outlined a planned shift into homeland security via a non-binding MOU for Scanary’s AI-radar screening systems, with potential exclusivity in several countries and a $1,000,000 installment-based payment. The context of prior AI launches and subsequent definitive agreements shows an ongoing transformation away from pure e‑commerce. Investors may watch for final deal execution, initial deployments, and how this strategy interacts with existing warrant and capital structure dynamics.

Key Terms

electromagnetic imaging, AI-powered threat detection, AI-radar screening systems, 3D imaging, +4 more

8 terms

electromagnetic imaging medical

"developer of 3D imaging, electromagnetic, AI-powered threat detection systems"

Electromagnetic imaging is a way of creating pictures of the inside of objects or the body by using invisible waves of energy, like X-rays, radio waves or other parts of the light spectrum, rather than cutting something open. For investors, it matters because companies that develop or use these technologies can offer faster, cheaper or safer diagnostics and quality checks—potentially creating new revenue streams, reducing costs, or changing competitive dynamics in healthcare, manufacturing or resource exploration.

AI-powered threat detection technical

"electromagnetic, AI-powered threat detection systems, which transaction would mark"

AI-powered threat detection uses artificial intelligence to watch digital systems and spot signs of cyberattacks, fraud, or other security problems by recognizing unusual patterns earlier than manual monitoring. For investors it matters because it can reduce the risk of costly breaches, lower ongoing security costs, help meet regulatory requirements, and create recurring revenue or competitive advantage for companies that sell or deploy these tools—much like a smarter alarm system that learns what’s normal and flags danger faster.

AI-radar screening systems technical

"Scanary’s breakthrough AI-radar screening systems capable of scanning up to"

AI-radar screening systems combine radar sensors with artificial intelligence to detect, track and classify objects or behaviors automatically, turning raw radio reflections into actionable alerts. For investors, they matter because they can make monitoring faster, more accurate and less labor-intensive—similar to upgrading from a basic security camera to a smart guard that recognizes threats—potentially opening new markets, lowering operating costs and affecting regulatory and safety outcomes.

3D imaging technical

"real-time threat detection in under two seconds using 3D imaging and AI"

Three-dimensional imaging is a set of medical technologies that create a lifelike, volumetric view of organs or structures inside the body instead of a flat picture, like turning a paper map into a small model you can rotate. Investors care because these systems often command higher prices, open new markets for devices and software, and can change clinical adoption, regulatory review and reimbursement — all of which affect revenue and growth potential.

Memorandum of Understanding financial

"entered into a non-binding Memorandum of Understanding (“MOU”) with Scanary Ltd."

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

CAGR financial

"and is anticipated to grow at a CAGR of over 7% between 2023 and 2032"

Compound Annual Growth Rate (CAGR) measures the average yearly growth of an investment, revenue, or other metric over a multi-year period as if it had grown at a steady rate each year. Think of it like the constant speed that would take you from the starting value to the ending value over the same time—useful because it smooths out ups and downs and lets investors compare different assets or performance periods on an even footing.

exclusive distribution rights financial

"Scanary will grant the Subsidiary, subject to execution of a definitive agreement: Exclusive distribution rights"

Exclusive distribution rights grant one company the sole authority to sell or distribute a product or service in a specified market, region, channel, or customer group, preventing competitors from using that same route. For investors this matters because exclusivity can create predictable sales, higher margins and a competitive moat—like a single store allowed to sell a popular item in a neighborhood—while also concentrating risk if demand, supply or the agreement changes.

demo system technical

"Scanary would provide one free demo system upon entry into the agreement"

A demo system is a working prototype or sample setup of a product or technology used to show how it performs in real-world conditions. For investors, a demo system is like a car prototype on a test track: it provides tangible proof that the concept works, highlights remaining technical or integration risks, and helps estimate how soon the product could reach customers and generate revenue. Seeing a functional demo can speed customer interest, partnerships, regulatory review, and funding decisions.

AI-generated analysis. Not financial advice.

Announces Exclusive Multi-Continent Distribution MOU for Revolutionary AI-Driven Electromagnetic Imaging Security System

Tel Aviv, Israel, Dec. 01, 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, recently announced that Jeffs’ Brands Holdings Inc., its’ wholly owned subsidiary (“Jeffs’ Brands Holdings” or the “Subsidiary”) has entered into a non-binding Memorandum of Understanding (“MOU”) with Scanary Ltd. (“Scanary”), an Israeli deep-tech developer of  3D imaging, electromagnetic, AI-powered threat detection systems, which transaction would mark a strategic pivot into the global homeland-security sector.

According to the MOU, Scanary would grant Jeffs’ Brands Holdings, upon the entry into a definitive agreement, the right to market and distribute Scanary’s breakthrough AI-radar screening systems capable of scanning up to 25,000 people per hour in open spaces, without stopping anyone.

The system eliminates checkpoints and pat-downs, providing seamless, real-time threat detection in under two seconds using 3D imaging and AI that ignores phones, keys, and other harmless items. The system is built for airports, stadiums, transit hubs, and major events – exactly where demand for frictionless security is surging.

According to Global Market Insights report the security scanning equipment market size was valued at over USD 11.4 billion in 2022 with a volume of over 1,000 thousand units dispatched and is anticipated to grow at a CAGR of over 7% between 2023 and 2032.

Under the terms of the MOU, Scanary will grant the Subsidiary, subject to execution of a definitive agreement:

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

In consideration for these exclusive rights, Jeffs’ Brands Holdings would agree to make a one-time payment of $1,000,000 to Scanary, payable in five equal monthly installments of $200,000, following the execution of the definitive agreement. Scanary would provide one free demo system upon entry into the agreement and technical support for pre-sales activities. The payment would be fully repayable to Jeffs’ Brands Holdings through periodic revenue payments of 10% of Scanary’s profits from sales outside the exclusive territories, which we believe creates a low-risk entry for the Company into this high-growth market.

The MOU also contemplates a corporate rebranding of Jeffs’ Brands Holdings, subject to any required corporate and regulatory approvals, to align with the new focus, pursuant to which it will change its name to “KeepZone Technologies Inc.”

As stated in the MOU, the parties intend to enter into a definitive agreement within 30 days, subject to the successful completion of due diligence by Jeffs’ Brands Holdings, which shall include customary closing conditions. There is no guarantee when or if the transaction will be completed. The MOU will automatically terminate upon the earlier of (i) the execution of definitive agreement with respect to the transaction or (ii) written notice of termination by either party. Either party may terminate the MOU upon written notice to the other party that it is terminating negotiations with respect to the transaction.

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 its potential entry into the homeland-security sector through its Subsidiary, the possible execution of a definitive agreement with Scanary, the anticipated commercial opportunities under such agreement, the potential rebranding of the Subsidiary, 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 rights did Jeffs' Brands secure under the MOU for JFBR?

JFBR would receive exclusive distribution rights in Canada, Germany and UAE for 24 months and non-exclusive rights in Spain and Italy, subject to a definitive agreement.

How much will Jeffs' Brands pay Scanary under the MOU (JFBR)?

Jeffs' Brands Holdings would pay a one-time $1,000,000 in five equal monthly installments of $200,000 following a definitive agreement.

What repayment or revenue-sharing terms affect JFBR's payment to Scanary?

The payment is repayable to Jeffs' Brands Holdings via periodic payments equal to 10% of Scanary's profits from sales outside the exclusive territories.

When do the parties expect to finalize the Scanary deal for JFBR?

The parties intend to enter a definitive agreement within 30 days, subject to due diligence and customary closing conditions; there is no guarantee of completion.

What product capacity does Scanary's system claim and which markets is JFBR targeting?

Scanary's system is described as capable of scanning up to 25,000 people per hour and is aimed at airports, stadiums, transit hubs, and major events.

Will Jeffs' Brands change its subsidiary's name if the transaction completes (JFBR)?

The MOU contemplates rebranding Jeffs' Brands Holdings to KeepZone Technologies Inc., subject to corporate and regulatory approvals.