TEL AVIV, Israel, Sept. 22, 2023 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) ("ParaZero"), an aerospace company focused on drone safety systems for commercial drones and urban air mobility aircraft, reported unaudited financial results for first six months ended on June 30, 2023. Revenues for the first half of 2023 amounted to $344,819, increasing 137% compared to $145,093 in the same period last year.
On July 31, 2023, the company closed its $7.8 million initial public offering.
Recent Corporate Highlights:
- The company announced a purchase order received by an autonomous aerial vehicles original equipment manufacturer ("OEM"), based in the United Arab Emirates. The OEM focuses on air taxi and cargo drone solutions.
- The company received a second order for its custom drones safety system by one of the world's largest automotive manufacturers.
- ParaZero launched the SafeAir M350 Pro and the SafeAir M30 Pro for DJI's New Enterprise Drones.
- Expanded to the Latin American drone market with a new development agreement with Colombia-based drone OEM, Black Square, an industrial drone producer leader in the region that focuses on enterprise drone platforms.
- One of the company's customers, Speedbird Aero, a world-leading innovator in drone delivery technology development and service provision, has achieved a significant milestone by successfully completing 10,000 operational delivery flights.
- The company announced its next-generation safety product development, SmartAir Trinity, an AI-based avionics system, which utilizes a new, leading-edge sensor array with advanced capabilities, designed to detect malfunctions of UAS and eVTOL in real-time, and provide deep analytics for mission debriefings.
- Parazero announced that the U.S. Federal Aviation Administration has granted the Airobotics Optimus-1EX system an airworthiness Type Certification, a historic milestone that will streamline continuous operational approvals for broad flight operations, including fully autonomous missions, operations over people, and beyond visual line of sight operations.
"After completing our initial public offering at the end of July, the company intensified its sales and marketing initiatives. This led to forging alliances with top industry partners and increased recognition among leading players in the drone and air mobility sector," said Boaz Shetzer, chief executive officer of ParaZero. "Over the recent months, we have consistently broadened our product range, introducing new safety systems for prevalent drone models. Additionally, we've tailored innovative systems to meet the unique requirements of our clients."
"As momentum builds in the drone and air mobility sectors, we see our role as pivotal in addressing regulatory challenges. This facilitates more companies in deploying and operating their drones, especially in the promising areas of deliveries and air mobility taxis," concluded Shetzer.
First Half 2023 Financial Results
- Revenues for the six months ended June 30, 2023 were $344,819, increasing 137% compared to $145,093 in the same period last year.
- Gross profit for the first half of 2023 amounted to 150,714, compared to 16,658 in the first half of 2022.
- Research and development expenses, for the six months ended June 30, 2023 were $216,181, compared to $307,396 in the same period last year.
- Sales and marketing expenses for the six months ended June 30, 2023, were $94,339, compared to $135,585 for the six months ended June 30, 2022.
- General and administrative expenses for the six months ended June 30, 2023 were $101,877, compared to $327,415 in the same period last year.
- Prospective initial public offering expenses for the six months ended June 30, 2023, were $106,754, compared to $405,777 in the same period last year.
- Net loss for the first half of 2023 was $433,324, or $0.12 per ordinary share, compared to a net loss of $948,376 or $0.31 per ordinary share, in the same period last year.
- Cash totaled $84,945 as of June 30, 2023, compared to $89,806 as of December 31, 2022. On July 31, 2023, the company closed its $7.8 Million initial public offering.
About ParaZero Technologies
ParaZero ( https://parazero.com/ ) is a world-leading developer of autonomous parachute safety systems for commercial drone and urban air mobility (UAM) 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 overpopulated areas and beyond-visual-line-of-sight (BVLOS).
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, the Company is using forward-looking statements when it discusses the momentum in the drone and air mobility sectors, the Company's role in addressing regulatory challenges and more companies deploying and operating. 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 final prospectus (Registration No. 333-265178) dated July 26, 2023. 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 contents of third-party websites.
Investor Relations Contact:
Michal Efraty
Investor Relations, Israel
+972-(0)52-3044404
michal@efraty.com
CONDENSED INTERIM BALANCE SHEETS (Unaudited)
U.S. dollars
| June 30, | December 31, | |||||
| 2023 | 2022 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash | 84,945 | 89,806 | ||||
| Trade receivables | 18,405 | 184,064 | ||||
| Other accounts receivable | 107,052 | 179,541 | ||||
| Deferred prospective initial public offering cost | 407,749 | 291,133 | ||||
| Inventories | 342,289 | 304,823 | ||||
| 960,440 | 1,049,367 | |||||
| TOTAL CURRENT ASSETS | ||||||
| NON-CURRENT ASSETS: | ||||||
| Right-of use asset | 32,511 | 56,893 | ||||
| Property and equipment, net | 31,763 | 41,311 | ||||
| TOTAL NON-CURRENT ASSETS | 64,274 | 98,204 | ||||
| TOTAL ASSETS | 1,024,714 | 1,147,571 | ||||
The accompanying notes are an integral part of these condensed interim financial statements.
CONDENSED INTERIM BALANCE SHEETS (Unaudited)
U.S. dollars
| June 30, | December 31, | |||||||
| Note | 2023 | 2022 | ||||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | 98,780 | 47,260 | ||||||
| Lease liabilities | 29,152 | 45,097 | ||||||
| Other accounts payable | 624,241 | 774,647 | ||||||
| Loan from related party | 7 | 729,169 | - | |||||
| SAFEs | 6 | 1,514,928 | 1,514,928 | |||||
| TOTAL CURRENT LIABILITIES | 2,996,270 | 2,381,932 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Lease liabilities | - | 7,775 | ||||||
| Loan from related party | 7 | - | 399,794 | |||||
| TOTAL NON-CURRENT LIABILITIES | - | 407,569 | ||||||
| COMMITMENTS AND CONTINGENCIES | 4 | |||||||
| SHAREHOLDERS' DEFICIT | ||||||||
| Ordinary shares, NIS 0.02 par value: Authorized 25,000,000 as of June 30, 2023 and December 31, 2022; Issued and outstanding 3,597,442 and 3,597,442 shares as of June 30,2023 and as of December 31, 2022, respectively | 21,456 | 21,456 | ||||||
| Additional paid-in capital | 13,091,990 | 12,988,292 | ||||||
| Accumulated losses | (15,085,002 | ) | (14,651,678 | ) | ||||
| TOTAL SHAREHOLDERS' DEFICIT | (1,971,556 | ) | (1,641,930 | ) | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 1,024,714 | 1,147,571 | ||||||
The accompanying notes are an integral part of these condensed interim financial statements.
CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
U.S. dollars
| Six months ended June 30, | Six months ended June 30, | ||||||
| 2023 | 2022 | ||||||
| U.S. dollars | |||||||
| Sales | 344,819 | 145,093 | |||||
| Cost of Sales | 194,104 | 128,435 | |||||
| GROSS PROFIT | 150,714 | 16,658 | |||||
| Research and development expenses | 216,181 | 307,396 | |||||
| Selling and marketing expenses | 94,339 | 135,585 | |||||
| General and administrative expenses | 101,877 | 327,415 | |||||
| Prospective initial public offering expenses | 106,754 | 405,777 | |||||
| OPERATING LOSS | 368,436 | 1,159,515 | |||||
| Financing Expenses (Income), net | 64,888 | (211,139 | ) | ||||
| COMPREHENSIVE AND NET LOSS | 433,324 | 948,376 | |||||
| Net loss per ordinary share, basic and diluted | 0.12 | 0.31 | |||||
| Weighted average number of ordinary shares outstanding basic and diluted | 3,597,442 | 3,066,785 | |||||
The accompanying notes are an integral part of these condensed interim financial statements.
CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Unaudited)
U.S. dollars (except for share numbers)
| Ordinary shares | ||||||||||||
| Additional | ||||||||||||
| Number | paid-in | Accumulated | ||||||||||
| of shares | Amount | capital | losses | Total | ||||||||
| U.S. dollars | U.S. dollars | |||||||||||
| BALANCE AS OF DECEMBER 31, 2021 | 359,743 | 1,945 | 6,380,403 | (12,998,640 | ) | (6,616,292 | ) | |||||
| CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 2022: | ||||||||||||
| Conversion of Former Parent Company's debt into ordinary shares and warrants | 3,237,699 | 19,511 | 6,403,797 | - | 6,423,308 | |||||||
| Stock based compensation | - | - | 96,916 | - | 96,916 | |||||||
| Comprehensive loss | - | - | - | (948,376 | ) | (948,376 | ) | |||||
| BALANCE AS OF JUNE 30, 2022 | 3,597,442 | 21,456 | 12,881,116 | (13,947,016 | ) | (1,044,444 | ) | |||||
| BALANCE AS OF DECEMBER 31, 2022 | 3,597,442 | 21,456 | 12,988,292 | (14,651,678 | ) | (1,641,930 | ) | |||||
| CHANGES DURING SIX MONTHS ENDED JUNE 30, 2023: | ||||||||||||
| Stock based compensation | - | - | 91,531 | - | 91,531 | |||||||
| Transactions with related party | - | - | 12,167 | - | 12,167 | |||||||
| Comprehensive loss | - | - | - | (433,324 | ) | (433,324 | ) | |||||
| BALANCE AS OF JUNE 30, 2023 | 3,597,442 | 21,456 | 13,091,990 | (15,085,002 | ) | (1,971,556 | ) | |||||
The accompanying notes are an integral part of these condensed interim financial statements.
CONDENSED INTERIM STATEMENTS OF CASH FLOWS (Unaudited)
U.S. dollars
| Six months ended June 30, | |||||||
| 2023 | 2022 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net loss | (433,324 | ) | (948,376 | ) | |||
| Adjustments required to reconcile net loss to net cash used in operating activities - | |||||||
| Depreciation | 10,225 | 8,629 | |||||
| Stock based compensation expenses | 47,991 | 67,424 | |||||
| Interest expenses with respect to funding from Parent Company | 96,883 | - | |||||
| Currency exchange differences with respect to amount due to the Former Parent Company | - | (243,948 | ) | ||||
| Finance expenses | (3,358 | ) | - | ||||
| Changes in operating assets and liabilities items: | |||||||
| Decrease (increase) in trade receivables | 165,660 | (9,374 | ) | ||||
| Decrease (increase) in other accounts receivable | 72,489 | (97,332 | ) | ||||
| Increase in deferred prospective initial public offering cost | (72,756 | ) | (147,973 | ) | |||
| Increase in inventory | (37,466 | ) | (87,387 | ) | |||
| Decrease in right-of use asset | 24,382 | 24,516 | |||||
| Increase in trade payables | 51,520 | 28,186 | |||||
| Decrease in lease liabilities | (21,024 | ) | (30,592 | ) | |||
| Increase (decrease) in other payables | (150,406 | ) | 34,825 | ||||
| Net cash used in operating activities | (249,184 | ) | (1,401,402 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchase of property and equipment | (677 | ) | (8,447 | ) | |||
| (677 | ) | (8,447 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Loan from related party | 245,000 | - | |||||
| Cost associated with the conversion of the Former Parent Company's debt | - | (84,780 | ) | ||||
| Loans from the Former Parent Company | - | 107,994 | |||||
| Proceeds from issuance of SAFEs | - | 1,514,928 | |||||
| 245,000 | 1,538,142 | ||||||
| NET INCREASE (DECREASE) IN CASH | (4,861 | ) | 128,293 | ||||
| CASH AT BEGINNING OF PERIOD | 89,806 | 33,024 | |||||
| CASH AT END OF PERIOD | 84,945 | 161,317 | |||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
| Benefit to the Company by an equity holder with respect to funding transactions | 12,167 | - | |
| Right-of use asset recognized against lease liability, net | - | 97,532 | |
| Conversion to equity of the Former Parent Company's debt | - | 6,508,089 | |
| Deferred prospective initial public offering cost | 43,540 | 29,491 |
