ParaZero (ASX:PRZ) CEO Eden Attias talks about the American Society for Testing and Material (ATSM), small Unmanned Aerial Systems (sUAS) Parachute Standard, and its product suite and partnerships
Rachael Jones: Hello, I'm Rachael Jones for the Finance News Network. Joining me today from ParaZero (ASX:PRZ) is CEO Eden Attias. Eden, welcome to FNN.
Eden Attias: Hi, Rachael. Thank you for having me.
Rachael Jones: Now first up, Eden, could you start by giving us an introduction to your company?
Eden Attias: As you know, drone technology has been widely adopted in the last few years into commercial and recreational use, which in many cases reflects the drone revolution on the verge. One of the challenges for this revolution to fulfil its potential is safety. And in ParaZero (ASX:PRZ) we developed the SafeAir™, that is an end-to-end safety system solution. I can explain later on how the system works. But we are addressing the need for safety, and by that, allowing this industry to grow and fulfil its full potential.
Rachael Jones: Thanks Eden. Now, before we get to talk about your products and strategy, can you tell me about drone safety? What is the market opportunity there?
Eden Attias: Well, Rachael, the market opportunity, if I may start with that, is huge. We are talking about a billion-dollar market. As of today, name an industry and I can show you, either in Australia or over the globe, there is already a drone providing value. But the main challenge and the main potential is not just flying where there is no people, you need the drone to fly above people and beyond visual line of sight. Here, there lies a problem, because you need to provide, and to do it with an adequate level of safety.
Just a report that has been recently released by the FAA, the US Federal Aviation Administration, shows an average of 260 crashes of drones reported in the U.S. per month. And this is just the reported, and just in the U.S. So, if we look ahead as this industry grows, we will see more and more drones flying in the sky and the number will go higher, and we need to address. It's very clear that the need for safety is there, and there is a need for a company like us to provide a solution to overcome it.
Rachael Jones: Now to your products and sales strategy. Can you tell me more, starting with your commercial products?
Eden Attias: So, our SafeAir™ System is embedded or mounted on every drone, and it is continuously monitoring what is happening on the drone and in the near vicinity. Most of the case, everything will be fine probably. But our real-time algorithm is looking for abnormality based on your past flight history and, as well, looking for critical situation. For us, critical situation means that we need to take the drone from the earth to the ground, it cannot fly anymore. And we need to do it very safely and smartly.
More or less four stages. First, we cut down the engine power. We don't want the drone to hit the ground with the engine running. Second, we let the vicinity know, whether it's a manned traffic or an unmanned traffic, which is in the close area, we would like them to move away. Third, we would like the people on the ground to know, so we'll have our audible and visual alert, which will allow people to move aside. Lastly, we're using our patent deployment parachute mechanism, which is a very unique patent granted globally which allows us to open a parachute to its full capacity, and by that, minimise the loss of altitude and dramatically reduce the impact energy. All of this provides a dramatic safety solution, or dramatic valuable safety solution.
Rachael Jones: What can you tell me about your distribution and partnerships?
Eden Attias: In the U.S. we're using B&H, it is one of the largest e-commerce platform in the East Coast. In Australia, we're using C.R. Kennedy Pty. Ltd. It is our foot on the ground and has exclusivity for our product in Australia. And for our consumer product, the one that I earlier shared with you, we're going to use intensively the e-commerce platform for that. As well, via Amazon (AMZN:US).
Rachael Jones: Thanks, Eden. Now, let's turn to your financials and share price. Could you give us a snapshot, and also talk about your sales forecast?
Eden Attias: Regarding the sales forecast, we're happy to have the consumer product ready for the market soon. And we expect to sell a large amount of those system, dramatically more than our enterprise system. This is the good news for the coming new months.
Rachael Jones: And can you provide a comment on the share price since listing?
Eden Attias: Yes. The average share price since listing was around 15 cent. The company was floated on 20 cent. Again, we're looking for the next few weeks with good supportive news flow with the roadshow that I'm now doing to enhance the exposure, and by that, to push the price up.
Rachael Jones: To the last question now, Eden. What can investors expect in terms of news flow over the next 12 months? And why should they consider adding ParaZero (ASX:PRZ) to their portfolios?
Eden Attias: Rachael, this is a huge potential market. The drone revolution is here. The need for safety is clear, and we address it. The sky is open, we are going to see more and more drones fly above people and beyond visual line of sight. This is what is going to happen. All of this, with the unique DNA, this is the real secret sauce of the company, a great team of people with intensive military and aerospace experience, as well as myself, combined with unique base customer, great partnership, all of this put us in a unique position to address this coming revolution.
Rachael Jones: Eden Attias, thanks for the update.
Eden Attias: Thank you very much, Rachael.