Maris‑Tech Ltd. announced that it has issued $2 million in non‑interest‑bearing convertible promissory notes to institutional investors. The notes can be converted into ordinary shares beginning six months after issuance, become fully convertible after twelve months, and will automatically convert after twenty‑four months if not converted earlier.
The financing comes on the heels of a first‑half 2025 earnings report that highlighted a sharp decline in revenue to $707,021, down from $3,410,258 in the same period of 2024, and a net loss of $2,388,294 versus a net income of $131,797 in H1 2024. The company’s auditors issued a “going‑concern” warning, underscoring the urgency of the liquidity infusion.
Management said the proceeds will be used primarily for working capital and to support the company’s expansion into the U.S. commercial market, where Maris‑Tech’s AI‑driven edge‑computing and video‑streaming solutions are positioned to capture new government and commercial customers. The funding is intended to bridge the gap between current cash reserves and the capital required to scale these initiatives.
CEO Israel Bar emphasized that, despite the short‑term financial challenges, the company remains committed to investing in its core technologies. “While the first half of 2025 presented challenges, we continue to invest in the technologies that set Maris‑Tech apart in the defense and homeland security markets,” Bar said. “Our focus remains on delivering cutting‑edge AI and video‑streaming solutions that meet the evolving needs of our customers. We are confident that the steps we are taking today will position us for long‑term growth and value creation.”
The convertible structure provides a balance between immediate cash relief and potential dilution. The notes’ conversion price floor protects existing shareholders by ensuring that conversion will not occur at a price below a predetermined floor, mitigating the impact of a future decline in share price. The company’s board has indicated that the terms are designed to preserve shareholder value while providing the necessary capital to pursue growth opportunities.
The event signals a critical shift in Maris‑Tech’s capital strategy, reflecting both the company’s need to address liquidity constraints and its confidence in the long‑term viability of its technology platform. The financing is a material development that will influence future financial projections and risk assessments.
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