Executive Summary / Key Takeaways

• ZOOZ Power Ltd. ($ZOOZW) is positioned in the rapidly expanding electric vehicle (EV) charging infrastructure market, offering a differentiated kinetic energy storage solution, the ZOOZTER-100, specifically designed for ultra-fast charging in grid-limited areas.
• The company's proprietary flywheel technology provides tangible benefits such as potentially superior efficiency in rapid energy discharge, more reliable performance in power-constrained environments, and potentially lower operating costs compared to traditional battery-based systems.
• Despite its innovative technology, ZOOZ Power has faced significant financial challenges, reporting consistent net losses and negative operating cash flows, with annual revenue of $1.04 million in 2024 against a net loss of $10.99 million.
• A pivotal moment arrived on September 19, 2025, with shareholder approval of a $180 million private placement and a Bitcoin Treasury Reserve Strategy, injecting crucial capital to fund operations and strategic expansion.
• The investment thesis hinges on ZOOZ Power's ability to leverage its technological edge and new capital to scale operations, penetrate its target markets, and improve financial performance against well-capitalized competitors in the evolving EV charging landscape.

The Electrification Frontier: ZOOZ Power's Niche in a Power-Hungry World

The global automotive industry is undergoing a profound transformation, driven by the accelerating adoption of electric vehicles. This shift, while promising a sustainable future, presents a significant challenge: the need for robust, ubiquitous, and ultra-fast charging infrastructure. A critical bottleneck in this expansion is often the existing power grid, which can be power-limited in many areas, hindering the widespread and cost-effective deployment of high-speed EV charging stations. It is precisely this challenge that ZOOZ Power Ltd. aims to address with its innovative energy storage solutions.

Incorporated in 2013 as Chakratec Ltd. and rebranded to ZOOZ Power Ltd. in March 2021, the Israeli-based company has carved out a specialized niche in the energy storage market. ZOOZ Power is engaged in developing, manufacturing, marketing, and selling energy storage solutions for electric vehicles across key markets including Israel, Germany, the United Kingdom, and the United States. Its core offering, the ZOOZTER-100, is a kinetic power booster based on proprietary flywheel technology. This system is engineered to enable the sustainable and cost-effective rollout of ultra-fast EV charging stations, particularly in regions where grid limitations would otherwise make such deployments impractical or prohibitively expensive.

The Flywheel Advantage: A Differentiated Technological Moat

At the heart of ZOOZ Power's investment thesis lies its differentiated kinetic flywheel technology. Unlike conventional battery-based energy storage systems, the ZOOZTER-100 stores energy mechanically in a rapidly rotating flywheel. This approach offers several compelling benefits that contribute to ZOOZ Power's competitive positioning. The technology provides potentially superior efficiency in rapid energy discharge for charging stations, translating into more reliable performance in power-constrained environments. This can enhance ZOOZ Power's financial outcomes by improving capital efficiency for its customers, as it allows for the deployment of ultra-fast chargers without requiring costly and time-consuming grid upgrades.

Furthermore, the ZOOZTER-100's kinetic nature may offer notably faster response times in charging applications and potentially lower operating costs in specific scenarios compared to battery alternatives. This materially better performance in energy-dense environments could lead to stronger customer loyalty and recurring revenue from reliable infrastructure. While specific quantitative metrics on efficiency gains or cost reductions are not publicly detailed, the strategic intent behind this technology is to provide a robust, adaptable, and environmentally friendly solution that bypasses common grid limitations, thereby enhancing ZOOZ Power's market penetration and pricing power in specialized segments.

Competitive Landscape: A Niche Player Among Giants

ZOOZ Power operates within a highly competitive landscape, facing off against both established industrial conglomerates and specialized EV charging providers. Key direct competitors include Tesla (TSLA), ChargePoint (CHPT), ABB Ltd. (ABBNY), and Fluence Energy (FLNC). Each of these players brings significant resources and distinct approaches to the energy and EV charging sectors.

Tesla, with its integrated ecosystem of EVs, Supercharger network, and battery storage solutions like Powerwall, benefits from immense brand recognition and scale. ChargePoint focuses on building a widespread networked EV charging infrastructure, emphasizing hardware, software, and services. ABB is a global leader in electrification and automation, offering a broad portfolio that includes advanced power grids and charging systems. Fluence Energy specializes in battery-based energy storage solutions for utilities and EV infrastructure.

ZOOZ Power's competitive standing is characterized by its technological differentiation. Its flywheel technology offers a unique value proposition, particularly for grid-limited areas, where it can provide more resilient and potentially lower-cost solutions compared to Tesla's battery dependency or ChargePoint's operational complexities. While ZOOZ Power may lead in specific performance aspects like energy efficiency for EV use and adaptability for grid-independent solutions, it currently lags its larger rivals in overall market reach, operational scale, and the sheer volume of R&D investment. The company's smaller scale could lead to higher customer acquisition costs and potentially lower margins, impacting its financial performance relative to these well-capitalized competitors.

Financial Performance: The Path to Profitability Remains Challenging

Despite the promise of its technology, ZOOZ Power has faced significant financial headwinds. The company has consistently reported net losses and negative operating income over the past several years. In 2021, ZOOZ Power recorded a net income of -$4.58 million and an operating income of -$4.54 million. These figures worsened, with net income reaching -$7.83 million in 2022 and -$11.76 million in 2023, while operating income stood at -$8.20 million and -$12.21 million for the same periods, respectively. By 2024, the company reported a net income of -$10.99 million and an operating income of -$10.54 million.

Revenue generation has been modest, with the company reporting $764,000 in 2023 and growing to $1.04 million in 2024. However, this revenue has been insufficient to cover operating expenses, resulting in a negative gross profit of -$486,000 in 2024 and -$1.10 million in 2023. Research and development (R&D) expenses, crucial for a technology-driven company, stood at $5.06 million in 2024, while selling, general, and administrative (SG&A) expenses were $4.99 million. These substantial operating costs underscore the company's early-stage, investment-heavy operational profile.

The balance sheet reflects these challenges, with tangible book value declining from $21.26 million in 2022 to $6.72 million in 2024. Cash and cash equivalents also saw a significant reduction from $20.57 million in 2022 to $6.67 million in 2023, before a slight recovery to $7.53 million in 2024.

Operating cash flow has remained consistently negative, reaching -$9.93 million in 2024, and free cash flow was also negative at -$9.99 million in the same year. These figures highlight the critical need for external capital to sustain operations and fund growth initiatives.

A New Chapter: Capital Infusion and Strategic Treasury Management

A significant development occurred on September 19, 2025, when ZOOZ Power's shareholders approved a previously announced $180 million private placement. This substantial capital infusion is a critical lifeline, providing the necessary liquidity to bolster the company's financial position and support its future growth initiatives. The private placement is expected to enable ZOOZ Power to continue developing its technology, expand its market reach, and scale its manufacturing and deployment capabilities.

Concurrently, shareholders also approved a Bitcoin Treasury Reserve Strategy, along with all related proposals. This signals a bold and unconventional approach to treasury management, potentially aiming to diversify the company's asset holdings and capitalize on the potential appreciation of digital assets. While this strategy introduces additional volatility risks, it also reflects a forward-thinking approach to capital allocation in a rapidly evolving financial landscape. The successful execution of both the private placement and the Bitcoin strategy will be paramount for ZOOZ Power's financial stability and its ability to realize its long-term vision.

Outlook and Risks

The outlook for ZOOZ Power is now significantly influenced by the recent capital raise. The $180 million private placement provides a much-needed runway for the company to execute its strategic plans, invest in market expansion, and further refine its ZOOZTER-100 technology. The company's ability to convert its technological advantages into tangible market share and revenue growth will be the primary determinant of its future success.

However, substantial risks remain. The company faces intense competition from larger, more established players with greater financial resources and broader market penetration. The successful adoption of ZOOZ Power's technology depends on continued EV market growth and the increasing recognition of the need for specialized grid-independent charging solutions. Operational execution, including scaling manufacturing, managing supply chains, and expanding sales and marketing efforts across multiple geographies, will be challenging for a company of ZOOZ Power's current size. Furthermore, the Bitcoin Treasury Reserve Strategy introduces market volatility risk, which could impact the company's financial health. Investors must closely monitor the deployment of the new capital, the company's progress in securing new contracts, and its ability to improve its gross and operating margins.

Conclusion

ZOOZ Power Ltd. presents a compelling, albeit high-risk, investment proposition rooted in its innovative kinetic flywheel technology. The ZOOZTER-100 offers a genuinely differentiated solution to a critical bottleneck in the burgeoning ultra-fast EV charging market: grid limitations. This technological edge provides a strong foundation for competitive advantage, enabling sustainable and cost-effective deployments where traditional solutions falter.

While the company's historical financial performance has been characterized by significant losses and negative cash flows, the recent approval of a $180 million private placement marks a pivotal turning point. This capital infusion, coupled with a bold Bitcoin Treasury Reserve Strategy, provides ZOOZ Power with the resources necessary to pursue its growth ambitions. The core investment thesis hinges on the company's ability to effectively leverage its technological leadership and new capital to overcome its operational challenges, expand its market footprint, and ultimately translate its innovative solutions into sustainable profitability in a fiercely competitive industry. For discerning investors, ZOOZ Power represents a speculative opportunity in a vital sector, where technological differentiation and strategic capital deployment could unlock significant long-term value.