Ondas(ONDS)2024-11-12 12:59Financial Performance - The revenue for Q3 2024 was approximately $1.5 million, a decrease from $2.7 million in Q3 2023, primarily due to delays in order activity at Ondas Networks[32] - Gross profit for Q3 2024 was approximately $0.05 million, representing a gross margin of about 3%, down from 21% in Q3 2023[33] - Operating expenses increased to approximately $8.7 million in Q3 2024, compared to $6.5 million in Q3 2023[34] - Net loss for Q3 2024 was approximately $9.5 million, compared to a net loss of $7.3 million in Q3 2023[37] - Revenues for September 2024 were $1,480,792, a decrease of 44.7% compared to $2,665,190 in September 2023[61] - Gross profit for September 2024 was $47,560, down from $554,878 in the same period last year, indicating a significant decline[61] - Total operating expenses increased to $8,708,275 in September 2024, up 34.0% from $6,488,899 in September 2023[61] - Net loss attributable to common stockholders for September 2024 was $(10,671,912), compared to $(7,914,991) in September 2023, reflecting a 34.9% increase in losses[61] - Adjusted EBITDA for the three months ended September 2024 was $(7,103,109), compared to $(6,900,099) in the same period last year, indicating a worsening operational performance[66] - Cash operating expenses for September 2024 were $7,150,669, a decrease of 4.1% from $7,454,977 in September 2023[67] - The total stockholders' equity decreased to $14,918,792 as of September 2024, down from $33,135,127 in September 2023[61] Orders and Bookings - Ondas Holdings reported $14.4 million in purchase orders during Q3 2024, marking the largest bookings in the company's history[1] - Ondas Networks secured a $3.0 million order from Metra for a system-wide upgrade of the 900 MHz wireless network[6] - Airobotics received $9 million in purchase orders for the Iron Drone Raider system from a major military customer during Q3 2024[21] - Airobotics also secured a $5.4 million purchase order for the Optimus System to protect military bases and borders[23] Capital and Cash Flow - The company raised $10.5 million in capital during Q3 and Q4-to-date, indicating continued investor support[5] - As of September 30, 2024, the Company held cash and restricted cash of approximately $2.9 million, a decrease from approximately $15.0 million as of December 31, 2023[38] - The Company raised an additional $3.55 million in capital after September 30, 2024, including $3.5 million via a convertible note[40] - Cash flows used in operating activities for the nine months ended September 2024 were $(25,360,649), a slight improvement from $(28,108,744) in the same period last year[63] - Net cash flows provided by financing activities were $14,871,301 for the nine months ended September 2024, compared to $18,700,603 in the previous year[63] Future Outlook - Ondas expects a strong end to 2024 and significant growth in 2025, driven by a strengthening order book and customer pipeline[5] - The Company expects a recovery in revenue growth in Q4 2024, primarily driven by the OAS business unit fulfilling backlog, including military orders secured in Q3[41] - Revenue expectations for Ondas Networks in Q4 2024 are modest, limited to funded development programs, with growth anticipated in 2025[41] - Bookings and revenue growth are expected to fluctuate due to uncertainties around customer activity and the timing of deliveries of the Optimus and Iron Drone systems[42] Assets and Liabilities - Total current assets decreased from approximately $23.6 million as of December 31, 2023, to approximately $17.2 million as of September 30, 2024[58] - Total liabilities remained relatively stable at approximately $47.1 million as of December 31, 2023, compared to approximately $47.1 million as of September 30, 2024[59] Compliance and Operations - The Company has requested an additional 180-day compliance period from Nasdaq to regain compliance with the minimum bid price requirement of $1.00 per share[43] - The Company operates through subsidiaries that provide private wireless data solutions and commercial drone solutions, targeting various critical markets[45] - The Company’s Adjusted EBITDA and cash operating expenses are used to facilitate analysis of ongoing business operations, excluding non-core items[52]