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Delivers 12.3% Sales Growth, Driven by Strong Demand for the Company’s Defense Solutions
KFAR SABA, Israel, March 26, 2026 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the “company” or “ParaZero”), an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry, today announced its financial results for year ended December 31, 2025.
Key Highlights of ParaZero’s Achievements in 2025 & Recent Highlights:
Commercial and Regulatory Milestones
Full Year 2025 Financial Highlights:
A copy of ParaZero’s annual report on Form 20-F for the year ended December 31, 2025 has been filed with the U.S. Securities and Exchange Commission at https://www.sec.gov/ and posted on ParaZero’s investor relations website at https://parazero.com/investor-relations/. ParaZero will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at [email protected].
About ParaZero Technologies
ParaZero Technologies Ltd. (Nasdaq: PRZO) is an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry. Founded in 2014 by aviation professionals and drone industry veterans, ParaZero is a recognized leader in advanced drone technologies, supporting commercial, industrial, and governmental operations worldwide. The company’s product portfolio includes SafeAir, an autonomous parachute recovery system designed for aerial safety and regulatory compliance; DefendAir, a counter-UAS net-launching platform for protection against hostile drones in both battlefield and urban environments; and DropAir, a precision aerial delivery system. ParaZero’s mission is to redefine the boundaries of aerial operations with intelligent, mission-ready systems that enhance safety, scalability, and security. For more information, 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. 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 26, 2026 and in subsequent filings with the SEC. 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
[email protected]
| PARAZERO TECHNOLOGIES LTD. BALANCE SHEETS (US dollars) | ||||||
| Note | December 31, 2025 | December 31, 2024 | ||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | 2,159,313 | 4,178,866 | ||||
| Short term deposits | 2,000,000 | — | ||||
| Trade receivables | 185,494 | 114,564 | ||||
| Other current assets | 3 | 283,010 | 421,919 | |||
| Inventories | 5 | 204,480 | 394,193 | |||
| TOTAL CURRENT ASSETS | 4,832,297 | 5,109,542 | ||||
| NON-CURRENT ASSETS: | ||||||
| Restricted deposit | 2Z | 80,721 | 68,001 | |||
| Prepaid expenses | 12,153 | 33,333 | ||||
| Operating lease right-of-use asset | 6 | 273,925 | 418,790 | |||
| Property and equipment, net | 7 | 106,224 | 107,906 | |||
| TOTAL NON-CURRENT ASSETS | 473,023 | 628,030 | ||||
| TOTAL ASSETS | 5,305,320 | 5,737,572 | ||||
| PARAZERO TECHNOLOGIES LTD. BALANCE SHEETS (US dollars) | |||||||
| Note | December 31, 2025 | December 31, 2024 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | |||||||
| CURRENT LIABILITIES: | |||||||
| Trade payables | 116,491 | 184,247 | |||||
| Operating lease liabilities | 6 | 245,682 | 202,563 | ||||
| Other current liabilities | 9 | 966,612 | 933,995 | ||||
| TOTAL CURRENT LIABILITIES | 1,328,785 | 1,320,805 | |||||
| NON-CURRENT LIABILITIES: | |||||||
| Derivative warrant liabilities | 13A | 758,872 | 4,511,491 | ||||
| Operating lease liabilities, net of current portion | 61,002 | 216,917 | |||||
| TOTAL NON-CURRENT LIABILITIES | 819,874 | 4,728,408 | |||||
| SHAREHOLDERS’ EQUITY (DEFICIT): | |||||||
| Ordinary shares, NIS 0.02 par value: Authorized 200,000,000 as of December 31, 2025 and December 31, 2024; Issued and outstanding 19,666,030 and 12,817,092 shares as of December 31, 2025 and as of December 31, 2024, respectively | 10 | 111,163 | 72,061 | ||||
| Additional paid-in capital | 37,934,948 | 29,093,585 | |||||
| Accumulated losses | (34,889,450 | ) | (29,477,287 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY (DEFICIT) | 3,156,661 | (311,641 | ) | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | 5,305,320 | 5,737,572 | |||||
| PARAZERO TECHNOLOGIES LTD. STATEMENTS OF COMPREHENSIVE LOSS (US dollars) | |||||||||||
| Year ended December 31, | |||||||||||
| Note | 2025 | 2024 | 2023 | ||||||||
| Sales | 11 | 1,046,664 | 932,154 | 620,508 | |||||||
| Cost of Sales | 996,701 | 873,861 | 476,610 | ||||||||
| Gross profit | 49,963 | 58,293 | 143,898 | ||||||||
| Research and development expenses | 2,338,221 | 2,143,353 | 636,801 | ||||||||
| Selling and marketing expenses | 1,618,187 | 1,081,003 | 487,904 | ||||||||
| General and administrative expenses | 3,640,967 | 2,400,000 | 1,472,872 | ||||||||
| Initial public offering expenses | 2I | — | — | 345,925 | |||||||
| Operating loss | 7,547,412 | 5,566,063 | 2,799,604 | ||||||||
| Change in fair value of convertible notes | 8 | — | — | 504,976 | |||||||
| Change in fair value of derivative warrant liabilities | 13A | (1,918,203 | ) | 5,688,891 | 277,600 | ||||||
| Issuance expenses attributable to derivate warrant liability | 10B | — | — | 247,129 | |||||||
| Interest expenses on related party loan | 15 | — | — | 152,745 | |||||||
| Other finance income, net | (217,046 | ) | (200,724 | ) | (210,675 | ) | |||||
| Net loss and comprehensive loss | 5,412,163 | 11,054,230 | 3,771,379 | ||||||||
| Net loss per ordinary share, basic and diluted | 0.31 | 0.99 | 0.77 | ||||||||
| Weighted-average number of ordinary shares outstanding, basic and diluted (*) | 17,473,499 | 11,129,978 | 4,891,071 | ||||||||
| PARAZERO TECHNOLOGIES LTD. STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) (US dollars) | |||||||||||||||
| Ordinary shares | Additional | ||||||||||||||
| Number of shares | Amount | paid-in Capital | Accumulated Losses | Total | |||||||||||
| U.S. dollars | |||||||||||||||
| BALANCE AS OF DECEMBER 31, 2022 | 3,597,442 | 21,456 | 12,988,292 | (14,651,678 | ) | (1,641,930 | ) | ||||||||
| Stock based compensation | — | — | 490,015 | — | 490,015 | ||||||||||
| Conversion of convertible note into ordinary shares | 504,976 | 2,734 | 2,017,170 | — | 2,019,904 | ||||||||||
| Issuance of ordinary shares and warrants upon initial public offering, net of issuance costs | 1,950,000 | 10,561 | 5,919,064 | — | 5,929,625 | ||||||||||
| Issuance of ordinary shares, pre-funded warrants, and warrants upon private placement, net of issuance costs (*) | 4,021,538 | 21,476 | 3,045,180 | — | 3,066,656 | ||||||||||
| Benefit to the Company by an equity holder with respect to funding transactions | — | — | 12,167 | — | 12,167 | ||||||||||
| Comprehensive loss | — | — | — | (3,771,379 | ) | (3,771,379 | ) | ||||||||
| BALANCE AS OF DECEMBER 31, 2023 | 10,073,956 | 56,227 | 24,471,888 | (18,423,057 | ) | 6,105,058 | |||||||||
| Stock based compensation | — | — | 75,357 | — | 75,357 | ||||||||||
| Exercise of pre-funded warrants and consultants warrants (*) | 1,088,590 | 5,792 | (5,792 | ) | — | — | |||||||||
| Exercise of warrants A | 1,654,546 | 10,042 | 4,552,132 | — | 4,562,174 | ||||||||||
| Comprehensive loss | (11,054,230 | ) | (11,054,230 | ) | |||||||||||
| BALANCE AS OF DECEMBER 31, 2024 | 12,817,092 | 72,061 | 29,093,585 | (29,477,287 | ) | (311,641 | ) | ||||||||
| Issuance of ordinary shares and pre-funded warrants, net of issuance costs - February 2025 (Note 10f) | 2,818,182 | 15,762 | 2,516,733 | 2,532,495 | |||||||||||
| Issuance of ordinary shares and pre-funded warrants, net of issuance costs - August 2025 (Note 10g) | 2,000,001 | 11,748 | 2,009,749 | 2,021,497 | |||||||||||
| Stock based compensation | 1,233,263 | 1,233,263 | |||||||||||||
| Issuance of shares upon restricted share units vesting | 886,398 | 5,244 | (5,244 | ) | — | ||||||||||
| Exercise of series A warrants (Note 10) | 1,144,357 | 6,348 | 3,086,862 | 3,093,210 | |||||||||||
| Comprehensive loss | (5,412,163 | ) | (5,412,163 | ) | |||||||||||
| BALANCE AS OF DECEMBER 31, 2025 | 19,666,030 | 111,163 | 37,934,948 | (34,889,450 | ) | 3,156,661 | |||||||||
| (*) Includes shares issued following a cashless exercise | |||||||||||||||
| PARAZERO TECHNOLOGIES LTD. STATEMENTS OF CASH FLOWS (US dollars) | ||||||||
| Year ended December 31, | ||||||||
| 2025 | 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | (5,412,163 | ) | (11,054,230 | ) | (3,771,379 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 29,174 | 22,814 | 17,087 | |||||
| Loss on disposal of property and equipment | 312 | |||||||
| Stock based compensation | 1,233,263 | 75,357 | 14,815 | |||||
| Interest expenses with respect to funding from related party | — | — | 112,373 | |||||
| Change in fair value of convertible loan | — | — | 504,976 | |||||
| Changes in fair value of derivative liabilities | (1,918,203 | ) | 5,688,891 | 277,600 | ||||
| Issuance expenses attributable to derivative warrant liabilities | — | — | 247,129 | |||||
| Inventory write-down | 194,344 | 114,617 | 33,360 | |||||
| Finance expenses | 34,371 | 689 | 583 | |||||
| Loss (gain) from exchange differences on cash and equivalents | (12,238 | ) | 31,579 | — | ||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables, net | (70,930 | ) | (92,188 | ) | (161,689 | ) | ||
| Other current assets | 138,909 | 229,641 | (472,020 | ) | ||||
| Prepaid expenses | 21,180 | (33,333 | ) | |||||
| Inventories | (4,631 | ) | (244,343 | ) | 6,995 | |||
| Operating lease right-of-use asset | 179,323 | 135,266 | 48,766 | |||||
| Trade payables | (67,756 | ) | 127,565 | 9,422 | ||||
| Operating lease liabilities | (181,624 | ) | (134,681 | ) | (45,911 | ) | ||
| Other current liabilities | 32,617 | 243,134 | (83,785 | ) | ||||
| Net cash used in operating activities | (5,804,052 | ) | (4,889,222 | ) | (2,938,300 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Change in restricted deposit | (12,720 | ) | (68,001 | ) | ||||
| Purchase of property and equipment | (27,804 | ) | (80,738 | ) | (25,757 | ) | ||
| Investment in short term deposits | (2,000,000 | ) | ||||||
| Net cash used in investing activities | (2,040,524 | ) | (148,739 | ) | (25,757 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from exercise of series A warrants (Note 10b) | 1,258,793 | 1,820,001 | ||||||
| Issuance of ordinary shares in initial public offering, net of issuance costs (Note 10c) | — | — | 6,695,957 | |||||
| Issuance of ordinary shares, pre-funded warrants and warrants in private placement, net of issuance costs (Note 10f and 10g) | 4,553,992 | — | 4,106,699 | |||||
| Receipt of loan from related party | — | — | 245,000 | |||||
| Repayment of loan from related party | — | — | (745,000 | ) | ||||
| Net cash provided by financing activities | 5,812,785 | 1,820,001 | 10,302,656 | |||||
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