ZOOZ Strategy Ltd. Annual Report - How They Did This Year

I’ve put together this guide to help you understand ZOOZ Strategy Ltd.’s performance. My goal is to turn complex financial filings into plain English so you can decide if this company fits your investment goals.

1. What does this company do?

ZOOZ is an Israeli tech company that builds ultra-fast charging stations for electric vehicles. Their main product uses "Power Booster" technology to store kinetic energy. On April 3, 2024, they merged with Keyarch Acquisition Corporation and began trading on the Nasdaq as "ZOOZ." This move brought in $26 million to help them expand globally and scale up manufacturing.

2. Financial performance

ZOOZ is currently growing fast and spending heavily, so they aren't profitable yet. In 2024, they earned $1.2 million, mostly from pilot projects in Israel and Europe. They spent $9.8 million on research and sales, leading to an $8.6 million loss. To keep running, they issued 1.5 million new shares, which reduced your ownership percentage.

The company now keeps $2 million of its cash in Bitcoin. They hope this protects them against inflation, but it also means the company’s value will rise and fall with the crypto market.

3. Major wins and challenges

• The Big Win: The 2024 merger provided the cash needed to move from prototypes to real-world production. They successfully installed their first charging units in busy urban areas, proving their technology works.
• The Hurdle: ZOOZ relies too heavily on a few clients. Two partners provide 70% of their total revenue. If they lose either contract, the company’s growth would drop significantly, potentially forcing a major business overhaul.

4. Financial health and the "Bitcoin Factor"

ZOOZ spends about $700,000 more than it earns each month. To save cash, they pay staff with stock instead of money. This resulted in a 12% dilution—meaning more shares were issued, which reduced your ownership percentage—over the last year.

Investor Note: The Bitcoin strategy adds a new risk. Because they don't have a way to hedge against crypto price drops, a 20% fall in Bitcoin's price would cause a $400,000 loss on their books. This volatility will now show up in their quarterly earnings.

5. Key risks

• Bitcoin Volatility: ZOOZ is now a hybrid tech and crypto company. If Bitcoin’s price crashes, investors might see the company as too speculative, making it harder for ZOOZ to raise money.
• Dilution: With about 18 months of cash left, ZOOZ will likely need to raise more money in 2026. This will likely mean issuing more shares, which would further reduce your ownership percentage by 10-15%.
• Operational Risks: ZOOZ must keep its stock price above $1.00 to stay on the Nasdaq. They also face tough competition from large, well-funded rivals and must defend their patents internationally.

6. Bottom Line

ZOOZ has evolved from a standard tech startup into a more complex investment. By adding Bitcoin to their balance sheet, they’ve introduced a volatile, unpredictable asset. If you want a pure investment in EV charging, remember that your money is now also tied to the price of Bitcoin. This is a speculative play that requires a high tolerance for both the risks of new charging technology and the wild swings of the crypto market.

Decision Checklist:

• Are you comfortable with your investment value being tied to Bitcoin price swings?
• Do you have the patience to wait for the company to move past its current cash-burning phase?
• Are you prepared for the possibility of further share dilution as they raise capital in the future?