The SafeAir system uses independent sensors to constantly monitor and analyse the drone's flight data and flight patterns so drone failures are immediately picked up and dealt with.
When failures do occur a parachute is deployed immediately, which makes the drone safer for bystanders and protects the expensive equipment and payloads being used.
While the agreement is non-binding and no money has changed hands, the move paves the way for the negotiation of general terms that will be further nutted out into a binding definitive agreement deal between the two.
ParaZero told the Australian Securities Exchange that as the agreement was non-binding it did not expect to generate any money from it.
However, once the deal becomes binding the company expects to make more than US$250,000.
ParaZero CEO Eden Attias said a key part of the commercialisation strategy is the integration of the company's systems into the drone manufacture market and this agreement further advances that commercialisation process and expands ParaZero's footprint in the market.
"Once again, this agreement expresses the confidence our customers have in our product, and the importance of the safety solution that ParaZero brings drone manufacturers," Attias said.
"We are continuing our efforts and increasing our commercialization footprint daily."