Ondas(ONDS)2024-08-14 12:17Financial Performance - Ondas generated approximately $1.0 million in revenue for Q2 2024, a decrease from $5.5 million in Q2 2023, primarily due to delays in order activity and slow commercial activity related to the Gaza conflict[19]. - Gross profit for Q2 2024 was approximately ($0.2) million, with a gross margin of approximately (20%), compared to a gross profit of $3.1 million and a margin of 56% in Q2 2023[20]. - Revenues for the three months ended June 30, 2024, were $957,851, a decrease of 83.9% compared to $5,468,964 for the same period in 2023[39]. - Gross profit for the three months ended June 30, 2024, was $(190,895), compared to a gross profit of $3,071,776 for the same period in 2023[39]. - Net loss narrowed to approximately $8.3 million for Q2 2024, compared to a net loss of $9.0 million for Q2 2023[21]. - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $(9,378,230), compared to $(8,958,086) for the same period in 2023[39]. - Adjusted EBITDA for the three months ended June 30, 2024, was $(6,730,982), compared to $(5,636,760) for the same period in 2023[44]. Operational Highlights - Ondas secured initial purchase orders for the Iron Drone Raider from a major military customer, indicating an expansion of their engagement in counter-drone technology[2]. - The distribution partner of Ondas Networks received an initial commercial order for Airlink systems for deployment in the 900 MHz network, marking a significant milestone[3]. - Ondas Autonomous Systems generated approximately $300,000 in revenue during Q2 2024, with a key purchase order for the Iron Drone Raider from a global defense company[13]. - The company is establishing supply chain and production capabilities to meet expected demand for the Iron Drone Raider, which is emerging as a leading counter-drone solution[4]. - A $2.8 million agreement for the development of a 220 MHz Positive Train Control data radio program is expected to be completed by Q1 2025, with commercial deliveries slated for Q2 2025[8]. - The successful integration of Airlink systems into legacy 900 MHz networks has led to operational networks for both a Class I freight rail operator and a transit customer[7]. Future Outlook - Ondas anticipates significant revenue recovery in the second half of 2024, driven by a growing customer pipeline for both the Optimus and Iron Drone Raider systems[6]. - The company expects revenue growth recovery in the second half of 2024, primarily driven by the OAS business unit, with modest revenue expectations for Ondas Networks[23]. - Bookings and revenue growth are anticipated to fluctuate quarter-to-quarter due to uncertainties around customer activity and deployment plans for the 900 MHz rail network[23]. - Ondas is experiencing high engagement from potential customers and partners, indicating optimism for future revenue growth despite current low revenues[18]. - Ondas plans to host an "Investor Day" in September 2024 to provide system demonstrations and a detailed overview of the OAS business plan[25]. Financial Position - Cash and restricted cash decreased to approximately $5.0 million as of June 30, 2024, down from approximately $15.0 million as of December 31, 2023, due to $16.3 million used for operations[22]. - The total current assets decreased to approximately $15.1 million as of June 30, 2024, from $23.6 million as of December 31, 2023[34]. - Total assets decreased to approximately $82.5 million as of June 30, 2024, down from $92.2 million as of December 31, 2023[37]. - Total stockholders' equity decreased to approximately $19.4 million as of June 30, 2024, compared to $33.1 million as of December 31, 2023[38]. - Operating expenses decreased to approximately $8.1 million for Q2 2024, down from approximately $11.6 million in Q2 2023, reflecting cost savings from operational consolidation[21]. - The company reported an operating loss of approximately $8.3 million for Q2 2024, slightly improved from an operating loss of $8.5 million in Q2 2023, primarily due to lower operating expenses[21]. - Net cash flows used in operating activities for the six months ended June 30, 2024, were $(16,274,722), an improvement from $(21,864,777) in the same period of 2023[41]. - Cash, cash equivalents, and restricted cash at the end of the period on June 30, 2024, were $4,975,374, compared to $3,104,716 at the end of the same period in 2023[41]. - The company reported a decrease in cash flows from investing activities of $(2,314,873) for the six months ended June 30, 2024, compared to a positive cash flow of $695,484 in the same period of 2023[41]. - The company raised $4,375,035 from the sale of noncontrolling interest in Ondas Networks during the six months ended June 30, 2024[41]. - The weighted average number of common shares outstanding for the three months ended June 30, 2024, was 66,377,505, an increase from 51,112,218 in the same period of 2023[39].