Ondas(ONDS) - 2024 Q4 - Annual Results

Revenue Expectations - Ondas Holdings anticipates record revenue of at least $25 million in 2025, with the Ondas Autonomous Systems (OAS) business unit expected to contribute at least$20 million[1]. - The Company expects a revenue target of $25 million for 2025, representing nearly 250$20 million in revenue, exceeding previous expectations of $15-18 million[29]. Financial Performance - Full year 2024 revenues were$7.2 million, down from $15.7 million in 2023, primarily due to extended customer timelines and war-related disruptions[22]. - Revenues for the year ended December 31, 2024, were$7,192,694, a significant decrease from $15,691,430 in 2023, representing a decline of approximately 54.3$0.3 million, or 5%, compared to $6.4 million, or 41$345,183, down from $6,381,174 in 2023, indicating a gross margin drop from 40.7$(42,419,462), compared to $(46,358,617) in 2023, showing an improvement of approximately 8.5$38.0 million for the year ended December 31, 2024, from a net loss of $44.8 million in 2023[26]. - Adjusted EBITDA loss narrowed to approximately$28.5 million for the year ended December 31, 2024, compared to $29.7 million for 2023[27]. - Adjusted EBITDA for the year ended December 31, 2024, was$(28,521,379), slightly better than $(29,678,672) in 2023[56]. Operating Expenses - Operating expenses decreased to$35.0 million for the year ended December 31, 2024, compared to $46.1 million in 2023, reflecting cost savings and integration synergies[25]. - Total operating expenses decreased to$34,954,487 in 2024 from $46,110,474 in 2023, a reduction of about 24.3$34.6 million for the year ended December 31, 2024, compared to a loss of $39.7 million for 2023, reflecting a decrease in operating expenses[26]. Cash Flow and Assets - Cash increased to$30.0 million as of December 31, 2024, up from $15.0 million in 2023, due to raising$50.2 million in financing[28]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $29,999,321, up from$15,022,000 at the end of 2023, reflecting an increase of 99.9%[53]. - The company reported a net cash flow provided by financing activities of $50,178,620 in 2024, significantly higher than$18,730,150 in 2023[53]. - Total current assets increased to $47.5 million as of December 31, 2024, from$23.6 million in 2023[48]. - Total liabilities rose to $73.7 million as of December 31, 2024, compared to$47.1 million in 2023[49]. - Total stockholders' equity decreased to $16.6 million as of December 31, 2024, from$33.1 million in 2023[49]. Strategic Developments - The partnership with Palantir is expected to enhance operational capabilities and support the growth strategy for OAS[1]. - The leadership team was strengthened with Oshri Lugassi appointed as Co-CEO of OAS and Markus Nottelmann as CEO of Ondas Networks[1]. - OAS is focusing on expanding programs in Israel and the UAE while securing new military customers and critical infrastructure clients in the U.S.[5]. Market Conditions - The Company anticipates fluctuations in bookings and revenue growth due to variability in expected orders and timing of new customer additions[30]. - Ondas Networks generated $1.9 million in revenue for 2024, down from$6.7 million in 2023, due to extended network adoption timelines[15]. - Cash flows used in operating activities were $(33,469,623) for 2024, compared to$(34,019,519) in 2023, indicating a marginal improvement[53]. - The company incurred interest expense of $(3,620,258) in 2024, down from$(4,154,759) in 2023, a reduction of about 12.8%[51].