Ondas(US:ONDS)2022-05-11 12:00Business Operations - Ondas Holdings operates through two subsidiaries, Ondas Networks and American Robotics, providing private wireless, drone, and automated data solutions across various critical infrastructure markets [182]. - The Ondas Networks segment focuses on Mission-Critical Internet of Things (MC-IoT) applications, offering secure, real-time connectivity and data processing capabilities for industries such as rail, energy, and public safety [183][184]. - The FullMAX platform, a Software Defined Radio (SDR) solution, enhances data throughput and supports legacy industrial protocols, facilitating a seamless transition to advanced internet-protocol-based networks [185][186]. - Ondas has established a strategic partnership with Siemens Mobility to develop wireless communication products for the North American rail industry, including the launch of the dual-mode ATCS/MC-IoT radio system [188][192]. - The North American Rail Network consists of 140,000 miles of track and 25,000 locomotives, with a significant portion of the communications infrastructure requiring upgrades to support new applications [187]. - American Robotics' Scout System™ provides autonomous drone solutions, enabling continuous data collection and analysis for enterprise customers, marketed under a Robot-as-a-Service (RaaS) model [198][200]. - As of March 31, 2022, American Robotics had signed subscription agreements with customers across multiple industries, including agriculture and oil and gas [202]. - Ondas anticipates launching initiatives to expand MC-IoT connectivity into additional critical infrastructure markets, leveraging partnerships to enhance market penetration [197]. Financial Performance - Revenue decreased by $754,566 to $410,198 for the three months ended March 31, 2022, compared to $1,164,764 for the same period in 2021 [206]. - Gross profit decreased by $487,148, resulting in a gross margin of 30% for Q1 2022, down from 52% in Q1 2021 [209]. - Operating expenses increased by $6,622,797, or 190%, to $10,113,599 for the three months ended March 31, 2022, primarily due to the acquisition of American Robotics [210]. - Operating loss increased by $7,109,945, or 247%, to $9,991,333 for Q1 2022, compared to $2,881,388 for Q1 2021 [213]. - Net loss increased by $6,872,280, or 219%, to $10,010,399 for the three months ended March 31, 2022, with a net loss per share of $(0.24) [216]. - Cash and cash equivalents decreased by $8,754,462 to $32,060,661 as of March 31, 2022, compared to $40,815,123 at the beginning of the period [217]. - The company entered into an Equity Distribution Agreement to offer up to $50 million of common stock through an ATM Offering [221]. - The acquisition of Ardenna, Inc. was completed on April 6, 2022, for $900,000 in cash and 780,000 shares of common stock [205]. - The company reported a decrease in interest expense of approximately $207,913 due to the payoff of a promissory note [215]. - As of March 31, 2022, the company had stockholders' equity of approximately $103,551,000 and working capital of approximately $30,375,000 [219]. Risks and Forward-Looking Statements - Forward-looking statements are included in the Form 10-Q, indicating expectations and assumptions that may differ from actual results due to various risks [230]. - The company cautions against placing undue reliance on forward-looking statements due to inherent uncertainties [230]. - The risks that could affect future performance are discussed in the Annual Report on Form 10-K for the year ended December 31, 2021 [230]. - The company has no obligation to publicly update or revise forward-looking statements except as required by law [230]. - The company emphasizes the importance of understanding the risks associated with forward-looking statements [230]. - The financial results and performance metrics are not detailed in the provided content [231]. - No specific user data or future guidance is mentioned in the available documents [231]. - There are no updates on new products, technologies, market expansion, or acquisitions in the provided content [231]. - The company does not provide quantitative disclosures about market risk due to its reporting status [231].