TEL AVIV - ParaZero Technologies Ltd. (NASDAQ:PRZO), an aerospace company specializing in drone technologies, disclosed its financial outcomes for the fiscal year ending December 31, 2023. The company reported a 10.8% increase in sales, rising to $620,508, primarily attributed to a strategic shift toward original equipment manufacturer (OEM) integrations and recurring revenues.
Despite the uptick in sales, the company's net loss widened significantly, jumping by 128.1% to $3,771,379 compared to the previous year. This was largely due to non-cash items and an overall increase in operating expenses. The loss per share stood at $0.77 for 2023, up from $0.49 in 2022.
ParaZero's cost of sales saw a substantial increase of 41.2%, amounting to $476,610, which was mainly driven by higher sales volumes and an inventory write-off. Research and development expenses saw a marginal decrease, while sales and marketing expenses surged by 84.3% due to increased labor costs and participation in travel and conferences. General and administrative expenses also rose by 92.1%, reflecting the company's expansion and costs associated with becoming a public entity.
The company highlighted several key achievements, including a new development agreement with Colombia-based drone OEM Black Square and a working partnership with KULR Technology Group, Inc. ParaZero's safety systems were instrumental in obtaining regulatory approvals for drone operations over populated areas in Denmark and Australia, marking significant milestones in the industry.
ParaZero completed its initial public offering (IPO) on July 31, 2023, raising approximately $7.8 million in gross proceeds. Additionally, a private placement was closed on October 30, 2023, with gross proceeds of around $5.1 million.
CEO Boaz Shetzer expressed confidence in the company's strategic partnerships and regulatory approvals, positioning ParaZero for continued growth in the drone safety industry. The company's mission remains focused on enhancing the safety and operational capabilities of drones and electric vertical takeoff and landing (eVTOL) aircraft.
As of December 31, 2023, ParaZero reported cash and cash equivalents of $7,428,405 and total shareholders' equity of $6,105,058.
This financial report is based on a press release statement from ParaZero Technologies Ltd.
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