New Risk • May 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of American stocks, typically moving 19% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). Earnings have declined by 48% per year over the past 5 years. Shareholders have been substantially diluted in the past year (45% increase in shares outstanding). Minor Risks Revenue is less than US$5m (US$1.0m revenue). Market cap is less than US$100m (US$16.1m market cap). Announcement • May 29
ParaZero Technologies Ltd. Secures Full Scale Production Capacity to Support Growing Demand for DefendAir Counter-Drone Systems ParaZero Technologies Ltd. announced that it has engaged with a subcontractor to support the full-scale production of its DefendAir net pod systems, strengthening the Company’s ability to respond to growing demand in the counter-UAS market. The engagement is expected to provide ParaZero with production capacity for thousands of units annually. The production line will include manufacturing, assembly, and delivery processes intended to improve production efficiency and support ParaZero’s ability to meet current market demand. The production line is expected to assist the company in improving delivery capabilities while supporting the production of DefendAir systems across multiple configurations, including man-operated and autonomous applications. ParaZero established the new production line as part of its ongoing efforts to strengthen operational readiness and support future order flow for its DefendAir product family. DefendAir is ParaZero’s counter-UAS solution designed to provide a physical interception layer against hostile drones. Using the Company’s patented net-launching technology, DefendAir enables non-explosive interception and is intended to support defense, law enforcement, homeland security, and critical infrastructure protection missions. The Company believes the new production line will support its ability to respond to increasing market interest in practical, deployable counter-UAS solutions and further strengthen ParaZero’s position in the growing drone defense market. Announcement • May 23
ParaZero Technologies Ltd Conducts First U S Live Demonstration Of DefendAir Net Launcher ParaZero Technologies Ltd. conducted its first live demonstration in the United States of the Company’s DefendAir net launcher system, following its participation at SOF Week 2026 in Tampa, Florida. The demonstration was held for a select group of hand-picked defense and security stakeholders, including Tier-1 international and U.S.-based defense integrators, European special forces and law enforcement representatives, and U.S.-based distributors. During the two-hour demonstration, ParaZero’s DefendAir system successfully intercepted multiple fast incoming FPV drone threats, achieving a 100% success rate throughout the demonstration. The event was designed to provide participants with a direct introduction to DefendAir’s operational capabilities and to support discussions regarding potential future procurement, integration, and deployment of DefendAir portable platforms and advanced autonomous applications. DefendAir is ParaZero’s non-explosive, net-based counter-UAS interception solution, designed to provide defense, and security forces with a practical physical interception layer against hostile drones. The system utilizes a patent non-explosive mechanism to deploy a net that neutralize hostile drones and is intended for use across multiple configurations, including portable, vehicle-mounted, stationary, and autonomous drone-mounted applications.