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ParaZero Announces First Half of 2024 Financial Results

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ParaZero Technologies (Nasdaq: PRZO), a drone safety systems company, reported financial results for H1 2024. Key highlights include:

1. Partnership with a Tier 1 defense OEM for military and medical missions
2. Entry into the $15 billion counter-drone market
3. Regulatory achievements, including ASTM F3322-22 approval
4. New opportunities in Advanced Air Mobility (AAM)
5. Collaboration with a Fortune 500 automotive manufacturer

Financial results show sales of $282,693, down from $344,819 in H1 2023. R&D expenses increased to $662,440 from $216,181. Net loss widened to $2,026,094 from $433,324. Cash and equivalents stood at $5,289,105 as of June 30, 2024.

ParaZero Technologies (Nasdaq: PRZO), un'azienda che offre sistemi di sicurezza per droni, ha riportato i risultati finanziari per il primo semestre del 2024. I principali punti salienti includono:

1. Partnership con un OEM di difesa di livello 1 per missioni militari e mediche
2. Ingresso nel mercato dei contro-droni da 15 miliardi di dollari
3. Risultati normativi, inclusa l'approvazione ASTM F3322-22
4. Nuove opportunità nella Mobilità Aerea Avanzata (AAM)
5. Collaborazione con un produttore di automobili della Fortune 500

I risultati finanziari mostrano vendite di 282.693 dollari, in calo rispetto ai 344.819 dollari del primo semestre del 2023. Le spese per R&S sono aumentate a 662.440 dollari rispetto ai 216.181 dollari. La perdita netta si è ampliata a 2.026.094 dollari rispetto ai 433.324 dollari. La liquidità e gli equivalenti ammontavano a 5.289.105 dollari al 30 giugno 2024.

ParaZero Technologies (Nasdaq: PRZO), una empresa de sistemas de seguridad para drones, reportó resultados financieros para el primer semestre de 2024. Los puntos destacados incluyen:

1. Asociación con un OEM de defensa de nivel 1 para misiones militares y médicas
2. Ingreso en el mercado de anti-drones de 15 mil millones de dólares
3. Logros regulatorios, incluida la aprobación ASTM F3322-22
4. Nuevas oportunidades en Movilidad Aérea Avanzada (AAM)
5. Colaboración con un fabricante de automóviles de la lista Fortune 500

Los resultados financieros muestran ventas de 282.693 dólares, por debajo de los 344.819 dólares en el primer semestre de 2023. Los gastos de I+D aumentaron a 662.440 dólares desde 216.181 dólares. La pérdida neta se amplió a 2.026.094 dólares, en comparación con 433.324 dólares. El efectivo y equivalentes fueron de 5.289.105 dólares al 30 de junio de 2024.

ParaZero Technologies (Nasdaq: PRZO), 드론 안전 시스템 회사가 2024년 상반기 재무 실적을 발표했습니다. 주요 내용은 다음과 같습니다:

1. 군사 및 의료 임무를 위한 1급 방산 OEM과의 파트너십
2. 150억 달러 규모의 반드론 시장 진입
3. ASTM F3322-22 승인 등 규제 성과
4. 고급 항공 이동성(AAM)에서의 새로운 기회
5. 포춘 500 자동차 제조업체와의 협력

재무 실적에 따르면, 2024년 상반기 매출은 282,693달러로, 2023년 상반기의 344,819달러에서 감소했습니다. 연구 및 개발 비용은 216,181달러에서 662,440달러로 증가했습니다. 순손실은 433,324달러에서 2,026,094달러로 확대되었습니다. 2024년 6월 30일 기준 현금 및 현금성 자산은 5,289,105달러였습니다.

ParaZero Technologies (Nasdaq: PRZO), une entreprise de systèmes de sécurité pour drones, a annoncé ses résultats financiers pour le premier semestre 2024. Les principaux points saillants incluent :

1. Partenariat avec un OEM de défense de niveau 1 pour des missions militaires et médicales
2. Entrée sur le marché des anti-drones de 15 milliards de dollars
3. Réalisations réglementaires, y compris l'approbation ASTM F3322-22
4. Nouvelles opportunités dans la Mobilité Aérienne Avancée (AAM)
5. Collaboration avec un fabricant automobile de la Fortune 500

Les résultats financiers montrent des ventes de 282.693 dollars, en baisse par rapport à 344.819 dollars au premier semestre 2023. Les dépenses en R&D sont passées de 216.181 dollars à 662.440 dollars. La perte nette s'est élargie à 2.026.094 dollars, contre 433.324 dollars. Les liquidités et équivalents s'élevaient à 5.289.105 dollars au 30 juin 2024.

ParaZero Technologies (Nasdaq: PRZO), ein Unternehmen für Drohnensicherheitsysteme, hat die finanziellen Ergebnisse für das erste Halbjahr 2024 veröffentlicht. Zu den wichtigsten Highlights gehören:

1. Partnerschaft mit einem Tier-1-Rüstungs-OEM für militärische und medizinische Einsätze
2. Eintritt in den 15 Milliarden US-Dollar umfassenden Anti-Drohnen-Markt
3. Regulierungsfortschritte, darunter die Genehmigung ASTM F3322-22
4. Neue Möglichkeiten in der Advanced Air Mobility (AAM)
5. Zusammenarbeit mit einem Fortune-500-Automobilhersteller

Die finanziellen Ergebnisse zeigen Umsätze von 282.693 US-Dollar, ein Rückgang von 344.819 US-Dollar im ersten Halbjahr 2023. Die Ausgaben für Forschung und Entwicklung stiegen auf 662.440 US-Dollar von 216.181 US-Dollar. Der Nettoverlust weitete sich auf 2.026.094 US-Dollar von 433.324 US-Dollar aus. Cash und vergleichbare Zahlungsmittel beliefen sich zum 30. Juni 2024 auf 5.289.105 US-Dollar.

Positive
  • Partnership with Tier 1 defense OEM for military and medical missions
  • Entry into the estimated $15 billion counter-drone market
  • Received ASTM F3322-22 approval for SafeAir Mavic 3 system
  • Completed safety system project for U.S.-based Advanced Air Mobility company
  • Received purchase order from UAE-based heavy-lift cargo drones and AAM platforms company
  • Positive results from drone safety project with Fortune 500 automotive manufacturer
Negative
  • Sales decreased to $282,693 from $344,819 in H1 2023
  • Cost of sales increased to $209,529 from $194,104 in H1 2023
  • R&D expenses significantly increased to $662,440 from $216,181 in H1 2023
  • Selling and marketing expenses rose to $516,401 from $94,339 in H1 2023
  • General and administrative expenses increased to $1,122,759 from $101,877 in H1 2023
  • Net loss widened to $2,026,094 from $433,324 in H1 2023
  • Loss per share increased to $0.19 from $0.17 in H1 2023

Insights

ParaZero's H1 2024 results reveal a complex financial picture. While sales decreased 18% year-over-year to $282,693, this was primarily due to longer project durations, with $251,000 completed post-period. The company's strategic pivot towards defense and counter-drone markets is notable, but has led to increased expenses across R&D, sales and G&A.

The sharp rise in net loss to $2,026,094 from $433,324 YoY is concerning, primarily driven by a 206% increase in R&D expenses and a 1002% surge in G&A costs. While these investments may position ParaZero for future growth, they've significantly impacted short-term profitability. The cash position of $5,289,105 provides some runway, but careful management will be crucial.

ParaZero's strategic shift into the defense and counter-drone markets is a savvy move, tapping into the estimated $15 billion counter-UAS sector. The partnership with a Tier 1 defense OEM for military and medical missions showcases the company's ability to adapt its technology for high-stakes applications. Their entry into Advanced Air Mobility (AAM) and collaboration with a Fortune 500 automotive manufacturer further diversifies their portfolio.

The company's focus on regulatory compliance, evidenced by the ASTM F3322-22 approval for the SafeAir Mavic 3 system, positions them well in a market where safety is paramount. However, the transition from a purely commercial focus to defense applications may present new challenges in terms of product development cycles and sales processes, which could impact near-term financial performance.

ParaZero's pivot towards defense and counter-drone markets aligns with global trends in drone technology adoption for military applications. The company's strategy to leverage its existing technology for these new markets could provide significant growth opportunities, especially given the rising importance of drones in global conflicts.

However, the company faces intense competition in both the defense and commercial drone safety markets. The substantial increase in R&D and marketing expenses indicates ParaZero is investing heavily to differentiate itself, but this strategy may pressure finances in the short term. The company's success will largely depend on its ability to convert partnerships and regulatory approvals into substantial orders and revenue growth, which remains to be seen in the coming quarters.

TEL AVIV, Israel, Sept. 03, 2024 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the "company” or “ParaZero”), an aerospace company focused on drone safety systems for defense and commercial drones and urban air mobility aircraft, reported today its financial results for the six months ended June 30, 2024.

Key Highlights of ParaZero’s Achievements in the First Half of 2024 & Recent Updates:

  • Enhanced presence in the defense market: announced partnership with a Tier 1 defense OEM company to adapt and integrate its cutting-edge drone safety system for operational military and medical missions use. The company received the first order as part of a wider collaboration that aims to enhance the efficiency and safety of medical field mission’s deliveries, particularly in critical and remote areas.
  • Entered the estimated $15 billion counter drone market: announced its intention to enter the counter drone/ anti-drone market. Following an extensive due diligence process, the company analyzed the expanding market of counter unmanned aircraft system (UAS) technologies and believes that specific elements within its unique proprietary technology portfolio, as well as the company’s ability to rapidly design, develop, and manufacture advanced UAS technologies, strongly positions the company to offer a competitive edge in defending against threats and attacks from small UAS platforms. The decision to explore these avenues also correlates to global inquiries the company has received from various entities to explore entering this market.
  • Favorable regulation and regulatory achievements: received American Society for Testing and Materials F3322-22 approval following the completion of the official testing for its SafeAir Mavic 3 system. Using the company’s SafeAir system, operators of DJI Mavic 3 Series, will be eligible for an approval to fly over people and moving vehicles. In addition, the company facilitated one of its customers in obtaining the first-ever light uncrewed aircraft system operator certificate in Denmark, which was granted by the European Union Aviation Safety Agency.
  • New opportunities in the growing air mobility market: announced the successful completion of an advanced safety system project for a pioneering U.S. based Advanced Air Mobility (AAM) company in the aerial vehicle industry and received a purchase order from a leading UAE-based company specializing in heavy-lift cargo drones and AAM platforms.
  • Collaboration with industry leaders: achieved positive results from a drone safety project with a Fortune 500 leading automotive manufacturer for their proprietary drone program.

"In the first half of the year, we have made remarkable progress, particularly in response to the rising significance of drones in global conflicts. This technological shift has redefined the interaction between human decision-making and advanced systems in warfare, and we are strategically positioning ourselves within this landscape. Recently, we've tapped into the counter-drone market and expanded in the defense market through a key partnership with a Tier 1 OEM, integrating our drone safety system for military and medical missions,” said ParaZero's CEO, Boaz Shetzer. “We continue to increase our reach in the air mobility market and the commercial drone market with multiple collaborations, orders and new developments, supported by new regulations and the growing understanding in the industry that safety systems are crucial to allow the market to mature and realize its true potential.”

“Since the beginning of 2024, we have taken actions to expand our business strategy and focus on new market segments in both the defense and commercial sectors. We believe that this expansion enables us to reach new costumers and projects globally. We are also enhancing our marketing efforts and strengthening our marketing team. We believe that this strategy and the investments in R&D, will facilitate in winning new projects and costumers and fuel our growth,” Mr. Shetzer concluded.

First Half 2024 Financial Highlights:

  • Sales totaled to $282,693 for the six months ended June 30, 2024, compared to $344,819 for the six months ended June 30, 2023. This decrease was mainly due to a longer duration of larger non-recuring engineering projects that were not completed in the reported period (of which $251,000 were completed in August 2024) compared to the previous year.
  • Cost of sales amounted to $209,529 for the six months ended June 30, 2024, compared to $194,104 for the six months ended June 30, 2023. This increase was mainly attributed to an increase in overhead expenses aimed to increase future capacity of operations and manufacturing.
  • Research and development expenses for the six months ended June 30, 2024, amounted to $662,440, compared to $216,181 for the six months ended June 30, 2023. The increase was primarily attributable to increase in the headcount of the R&D team, the development of new products and services for customers and measures that the Company undertook to obtain compliance with new regulations for existing and new products.
  • Selling and marketing expenses totaled $516,401 for the six months ended June 30, 2024, compared to $94,339 for the six months ended June 30, 2023. The increase was primarily attributable to enhancement of marketing activities.
  • General and administrative expenses totaled $1,122,759 for the six months ended June 30, 2024, compared to $101,877 for the six months ended June 30, 2023. The increase was primarily attributable to an increase expenses related to being listed as a public company, along with an increase in professional services and salaries.
  • Comprehensive and net loss amounted to $2,026,094 for the six months ended June 30, 2024, compared to a net loss of $433,324 for the six months ended June 30, 2023. The increase was mainly the result of the operating loss that represents the increase in the Company’s operating activities following the completion of its initial public offering in July 2023, along with an increase in expenses related to being a listed public company.
  • The loss per share in the first six months of 2024 was $0.19 compared to net loss per share of $0.17 in the same period of 2023.
  • As of June 30, 2024, the Company’s cash and cash equivalents were $5,289,105.

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. For example, ParaZero is using forward-looking statements when it discusses how it strategically positioning itself within the landscape of the rising significance of drones in global conflicts and the redefined the interaction between human decision-making and advanced systems in warfare, how it continues to increase its reach in the air mobility market and the commercial drone market with multiple collaborations, orders and new developments, supported by new regulations and the growing understanding in the industry that safety systems are crucial to allow the market to mature and realize its true potential, its belief that the expansion of its business strategy and focus on new market segments in both the defense and commercial sectors enables it to reach new costumers and projects globally and its belief that its enhanced marketing efforts, strengthened marketing team and investments in R&D will facilitate in winning new projects and costumers and fuel its growth. 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, 2024. 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


FAQ

What were ParaZero's (PRZO) sales for the first half of 2024?

ParaZero's sales for the first half of 2024 totaled $282,693, compared to $344,819 for the same period in 2023.

How much did ParaZero (PRZO) spend on R&D in H1 2024?

ParaZero spent $662,440 on research and development in the first half of 2024, up from $216,181 in the same period of 2023.

What was ParaZero's (PRZO) net loss for H1 2024?

ParaZero reported a net loss of $2,026,094 for the first half of 2024, compared to a net loss of $433,324 for the same period in 2023.

What new markets did ParaZero (PRZO) enter in 2024?

In 2024, ParaZero announced its entry into the estimated $15 billion counter-drone market and expanded its presence in the defense market.

What regulatory approval did ParaZero (PRZO) receive for its SafeAir Mavic 3 system in 2024?

ParaZero received American Society for Testing and Materials (ASTM) F3322-22 approval for its SafeAir Mavic 3 system in 2024.

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