ParaZero Announced First Half 2023 Financial Results
22 September 2023 - 11:20PM
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 |
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