With some of the worlds largest retailers safely delivering goods by drones which are flying over people, drone safety systems company ParaZero (ASX: PRZ) has seen a notable uplift in sales for its parachute devices amongst drone manufacturers.
The new orders amount to $235,000 for ParaZero but may be a sign of things to come following regulatory approval from the U.S. Federal Aviation Administration (FAA) which have granted waivers to companies wishing to fly drones over people, if they have ParaZero’s parachute systems installed.
Following these regulatory changes, more than 35 waivers have been signed by the FAA for customers seeking to retrofit ParaZero’s SafeAir products.
“ParaZero has developed a solution for existing drones to improve their safety when flying over people, but longer term we are working with drone manufacturers to ensure our technology is fitted to every device at the time it’s produced,” said ParaZero CEO, Eden Attias.
“Both Alphabet and UPS had to demonstrate their risk mitigation strategies to the FAA. This is the best indication to date that regulators are looking favourably at parachutes as a key risk mitigation strategy.”
ParaZero intends to meet all deliveries by the end of 2019 with its current suite of customers including CNN, Fox News, Verizon Media, Hensel Phelps and North Dakota Department of Transportation.
The Company is currently in a trading halt awaiting news of a Capital Raise which is expected to be applied towards a shift in the business towards a licensing business model of their products to maximise gross margins.
Drone security continues to be a major growth horizon for the security industry with its technology being used for a number of anti-social actions, highlighted by the 2019 Saudi Oil Attacks and 2018 Gatwick Airport shutdown.