Ondas(ONDS) - 2023 Q4 - Annual Results

Revenue Growth - Record 2023 revenues of $15.7 million, a 638% increase over 2022, driven by commercial adoption of the Optimus System and record product revenues at Ondas Networks[2] - Q4 2023 revenues were $5.0 million, a 10-fold increase over 2022, primarily due to higher product sales and development revenue[2] - Ondas Networks generated $6.7 million in revenue in 2023, representing approximately 250% growth versus 2022, driven by initial product sales for Siemens[11] - Ondas Autonomous Systems (OAS) generated $9.0 million in revenue in 2023, a substantial increase from $0.9 million in 2022, exceeding the $8.0 million goal set at the time of the Airobotics acquisition[12] - The company expects significant revenue growth for the full year 2024, driven by 900 MHz deployments and scaling of Optimus System deployments[7] - Revenues for 2023 were $15.7 million, a significant increase from $2.1 million in 2022[47] - The company expects significant revenue growth in 2024 driven by increased customer activity and orders, particularly in the 900 MHz Rail network and development programs with Siemens and MxV Rail[28] Financial Performance and Losses - Gross profit for Q4 2023 was $1.7 million, with gross margins decreasing to 35% due to lower margin products and slowed development revenues[17] - Full-year 2023 operating loss narrowed to $39.7 million, compared to $69.4 million in 2022, primarily due to decreased operating expenses and the goodwill impairment charge[24] - Adjusted EBITDA loss for 2023 narrowed to $29.7 million, compared to $40.1 million in 2022[25] - Net loss for 2023 was $44.8 million, compared to a net loss of $73.2 million in 2022[47] - Operating loss for 2023 was $39.7 million, an improvement from the $69.4 million operating loss in 2022[47] - Net loss for the year ended December 31, 2023, decreased to $(44,844,872) from $(73,241,805) in 2022, showing a significant improvement[49] - Adjusted EBITDA improved to $(29,678,672) in 2023 from $(40,132,939) in 2022, showing better operational efficiency[52] Operating Expenses and Cost Management - Operating expenses for Q4 2023 decreased to $14.3 million, primarily due to the absence of a $19.4 million non-cash goodwill impairment charge recognized in 2022[18] - Stock-based compensation decreased to $1,047,398 in 2023 from $5,857,435 in 2022, reflecting a reduction in equity-based incentives[49] - Net cash flows used in operating activities decreased to $(34,019,519) in 2023 from $(37,963,076) in 2022, indicating better cash management[49] Cash and Financing - Cash and cash equivalents decreased to $15.0 million as of December 31, 2023, from $29.8 million in 2022, primarily due to operating expenses and $5.5 million used for debt repayment[26] - The company raised $24 million in cash proceeds through the sale of convertible notes and Ondas Networks preferred stock in Q3 2023[26] - Subsequent to December 31, 2023, the company raised an additional $8.6 million through the sale of common stock and Ondas Networks preferred stock[26] - Pro forma for these financings, the company would have had $23.4 million of cash as of December 31, 2023[27] - Cash, cash equivalents, and restricted cash at the end of 2023 stood at $15,022,000, down from $29,775,096 at the end of 2022[50] - Proceeds from convertible notes payable, net of issuance costs, were $9,309,513 in 2023, significantly lower than $27,702,292 in 2022[49] - Cash paid for interest increased to $176,542 in 2023 from $14,187 in 2022, reflecting higher debt servicing costs[50] Asset and Liability Changes - Total assets decreased to $92.2 million as of December 31, 2023, from $97.9 million in 2022[44] - Total liabilities increased to $47.1 million as of December 31, 2023, from $39.7 million in 2022[44] - Depreciation expense increased to $844,833 in 2023 from $449,458 in 2022, reflecting higher asset utilization[49] - Amortization of intangible assets rose to $4,147,092 in 2023 compared to $3,570,090 in 2022, indicating increased investment in intangible assets[49] - Impairment of long-term equity investment was recorded at $1,500,000 in 2023, with no such impairment in 2022[49] Customer and Market Developments - The company secured a commercial volume order from Siemens for multi-year delivery of an on-locomotive HOT radio on behalf of Indian Railways[11]