ONDAS HOLDINGS INC. First Quarter 2024
Earnings Release
NASDAQ: ONDS | May 15, 2024 | Copyright 2024. All rights reserved. |
Nasdaq: ONDS
Disclaimer
This presentation may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Ondas Holdings Inc. ("Ondas" or the "Company") cautions readers that forward-looking statements are predictions based on its current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company's actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including, the risks discussed under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC"), in the Company's Quarterly Reports on Form 10-Q filed with the SEC, and in the Company's other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law. Also, this presentation contains a non-GAAP financial measure. For a description of this non-GAAP financial measure, including a reconciliation to the most comparable measure under GAAP, see the Appendix to this presentation.
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Nasdaq: ONDS
Leadership Team
ERIC BROCK
CHAIRMAN & CEO
Eric is an entrepreneur with over 25 years of management and investing experience.
YISHAY CURELARU
CFO
Yishay is an experienced financial executive with over 10 years experience with entrepreneurial growth companies.
Nasdaq : ONDS
GUY SIMPSON | MEIR KLINER | TIM TENNE |
PRESIDENT & COO | PRESIDENT | CEO |
Guy joined Ondas Networks in | Meir is an entrepreneur with over | Tim brings over 30 years of |
2010 bringing over 25 years of | 20 years of proven track record | experience in military and |
leadership, operations and | in aerospace development and | commercial aerospace |
engineering experience. | manufacturing. | operations, regulatory, and |
leadership. |
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Agenda
Ondas on track to accelerate momentum in 2024
- Introduction
- Financial Review & Outlook
- Business Update
- Ondas Networks
- Ondas Autonomous Systems (OAS)
- Closing Remarks
- Q&A
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Nasdaq: ONDS
Overview
Ondas well positioned for long-term growth
- Challenging Q1 2024 financial results
- Extended timeline to commercial volume orders on 900 MHz
- Gaza War deferred revenue generating business development activity
- New order milestones demonstrate broadening technology adoption
- 220 MHz PTC data radio order for key Northeast Corridor passenger railroad
- Iron Drone order received from Israeli defense company
- Ondas Networks continues to validate the significant global rail opportunity
- Completed systems integration demonstrating backwards compatibility in 900 MHz with Class I railroad in Chicago
- Order on behalf of commuter railroad in Southwest placed with partner
- OAS is protecting critical assets and infrastructure globally
- Customer engagement expanding in U.S., Europe and Middle East
- Dual-usetechnologies seeing growing demand in defense and security applications to protect borders, critical transportation, logistics and energy assets
- HHLA Sky partnership accelerates solutions for Terminal operators and the EU
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Financial Review
Q1 2024
SELECT P&L DATA | Three Months Ended March 31, | |||
2024 | 2023 | |||
Revenues, net | $ | 625,009 | $ | 2,595,991 |
Cost of goods sold | 1,019,991 | 1,569,095 | ||
Gross profit | (394,982) | 1,026,896 | ||
Total operating expenses | 8,732,213 | 13,679,575 | ||
Operating Loss | $ | (9,127,195) | $ | (12,652,679) |
SUPPLEMENTAL INFO: | ||||
Depreciation expense | 123,071 | 252,544 | ||
Amortization of intangible assets | 1,052,211 | 978,838 | ||
Stock-based compensation | 269,553 | 1,263,356 | ||
Total | 1,444,835 | 2,494,738 | ||
Adjusted EBITDA(1) | $ | (7,682,360) | $ | (10,157,941) |
(1) Refer to "Non-GAAP Financial Measure"
Nasdaq: ONDS
KEY FINANCIAL INSIGHTS:
- P&L reflects early stage of initial platform adoption for Ondas Networks and OAS
- Weak revenue due to extended timelines on 900 MHZ at Ondas Networks and supply chain disruptions related to Gaza War
- Poor Gross Margin performance due to subscale operations and cost overruns on certain development projects
- OPEX improvement driven by strong expense controls and lower non-cash charges
- Operating Loss improved 28% YoY
- Adjusted EBITDA loss sharply lower; narrowed 24% year-over-year
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Financial Review
Q1 2024
SELECT CASH FLOW DATA | Three Months Ended March 31, | |||
2024 | 2023 | |||
Net cash used in operating activities | $ | (7,455,524) | $ | (12,832,263) |
Net cash provided by (used in) investing activities | (1,212,413) | 863,831 | ||
Net cash provided by (used in) financing activities | 8,236,646 | (3,649,210) | ||
Decrease in cash | (431,291) | (15,617,642) | ||
Cash, cash equivalents and restricted cash, | ||||
15,022,000 | 29,775,096 | |||
beginning of period | ||||
Cash, cash equivalents and restricted cash, end of | ||||
$ | 14,590,709 | $ | 14,157,454 | |
period |
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KEY FINANCIAL INSIGHTS:
- Cash balance of $14.6 million
- Cash provided by financing includes:
- $4.5 million gross proceeds raised during the first quarter Ondas Networks (preferred stock)
- $4.05 million gross proceeds raised during the first quarter Ondas Holdings (common stock)
- Financing transactions led by Charles & Potomac Capital
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Balance Sheet
Q1 2024
SELECT BALANCE SHEET DATA
ASSETS
Cash, cash equivalents and restricted cash
Total assets
LIABILITIES AND STOCKHOLDERS' DEFICIT
Long-term Notes Payable
Convertible notes, current
Convertible notes, long-term
Total debt
Total liabilities
Redeemable noncontrolling interests Total Stockholders' equity
Total liabilities and stockholders' equity
March 31, 2024 | December 31, 2023 |
$ | 14,590,709 | $ | 15,022,000 |
$ | 91,615,524 | $ | 92,164,682 |
$ | 300,000 | $ | 300,000 |
27,378,288 | 25,692,505 | ||
1,665,899 | 2,812,156 | ||
$ | 29,344,187 | $ | 28,804,661 |
$ | 47,929,588 | $ | 47,108,861 |
$ | 15,922,284 | $ | 11,920,694 |
$ | 27,763,652 | $ | 33,135,127 |
$ | 91,615,524 | $ | 92,164,682 |
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KEY FINANCIAL INSIGHTS:
- Cash balance of $14.6 million
- New investment at Ondas Holdings and Ondas Networks
- Convertible notes amortize monthly through maturity via equity issuance or cash payments; unless amortization is deferred
- Convertible notes mature in April 2025 and July 2025
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900 MHz - ATCS & dot16 Update
Systems integration progressing
- Completed 900 MHz systems integration effort in multiple deployments in both freight rail and passenger rail environments
- Backwards compatibility with legacy train operating systems including back office demonstrated; new network equipment deployed with live traffic
- Pending network migration to dot16 protocols on new 900 MHz band is next and final step
- Initial 900 MHz order received by distribution partner on behalf of commuter railroad in Southwest
- Commuter railroad in Midwest also engaged; expect commercial orders in 2H 2024
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Ondas Holdings Inc. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 12:45:18 UTC.
