ParaZero’s SafeAir Phantom Gains ASTM Standard Compliance

ParaZero’s SafeAir Phantom Gains ASTM Standard Compliance

ParaZero Limited (ASX: PRZ) was established in 2014 and offers industrial automation solutions to the clients in drone industry by designing, developing, and providing best-in-class autonomous safety systems for commercial and prosumer drones. The company is based out of Israel.

On March 7th, 2019, the company announced to have achieved ASTM compliance for its SafeAir Phantom System, which is a smart parachute system designed to track UAS flight in real time, identify critical failures and autonomously trigger a parachute, a flight termination system and an audio-warning buzzer. This recent development is expected to allow operational waivers for flight over people for commercial UAS operators.

ParaZero conducted testing and verified the reliability and effectiveness of its system to the Standard Institution of Israel (SII), after accomplishing around 45 successful aerial deployments including many failure scenarios as well.  The whole process, including the SII testing validation report, is a mandatory component of a waiver application. The compliance, thus received, will enable commercial operators around the world to expand the scope of application of the bestselling DJI Phantom 4 drones, in areas that were previously restricted such as newsgathering, search and rescue, and public safety.

The American Society for Testing and Materials (ASTM) is an international standards organisation. In September 2018, it released the new ASTM standard F3322-18, created by an industry working group comprising the FAA, Amazon, DJI, ParaZero, and others. It defines the prerequisites for the production and examination of UAS parachute systems.

Prior to this, on February 19th, ParaZero also confirmed the SafeAir system as compliant with Slovenia’s Unmanned Aerial Systems (UAS) regulatory framework after the successful testing supervised by the Slovenia Civil Aviation Agency (CAA).

Following this announcement, the Slovenian distributor OneDrone signed a new distribution agreement and placed an initial purchase order with ParaZero.  

Also, in the same month, ParaZero and the Hungary-based HRP Group also entered into a distribution agreement, thus providing ParaZero an opportunity to expand and serve the rising demand in the European drone markets.

As per the preliminary final report for the financial year ended December 31st, 2018 (FY2018), the company appears well-positioned to leverage its prominent position in the dynamic drone market that is estimated to be worth around USD 2.4 billion by 2023. There were many milestones, including new partnerships and contracts, achieved during the period. The net loss after tax was posted at $ 4.71 million as compared to $ 2.47 million recorded in the previous year FY2017, reflecting the expenses incurred in ASX listing process in June 2018 and investments into product development.

Both operating and investing activities contributed to massive cash outflows totalling ~USD 3.749 million stabilised over and above by financing activities that generated USD 4.56 million of cash inflows primarily through proceeds from the issue of shares and convertible loans. The net cash at the end of the period amounted to USD 584.8K.

ParaZero has a market cap of AUD 8.68 million and the PRZ stock price is trending at AUD 0.090 (As on 6 March 2019).


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