Ondas(US:ONDS)2024-05-15 12:29Financial Performance - Ondas Holdings reported revenues of approximately $0.6 million for Q1 2024, a decrease from $2.6 million in Q1 2023, primarily due to delays in 900 MHz deployments and supply chain disruptions[14]. - Gross profit for Q1 2024 was negative $0.4 million, compared to a gross profit of $1.0 million in Q1 2023, resulting in a gross margin decline from 39.6% to negative[15]. - The operating loss narrowed to approximately $9.1 million in Q1 2024, improving by 28% year-over-year despite lower revenues[17]. - Net loss for Q1 2024 was approximately $9.9 million, down from $14.5 million in Q1 2023, driven by lower operating costs and reduced interest expenses[18]. - For Q1 2024, Ondas Holdings reported net revenues of $625,009, a significant decrease of 76.1% compared to $2,595,991 in Q1 2023[40]. - The company incurred a gross loss of $394,982 in Q1 2024, contrasting with a gross profit of $1,026,896 in the same period last year[40]. - Ondas Holdings reported a net loss of $9,876,084 for Q1 2024, compared to a net loss of $14,455,551 in Q1 2023, indicating a 31.5% improvement[40]. - Adjusted EBITDA for Q1 2024 was $(7,682,360), compared to $(10,157,941) in Q1 2023, indicating a 24% improvement[45]. - Cash flows used in operating activities decreased to $(7,455,524) in Q1 2024 from $(12,832,263) in Q1 2023, reflecting a 42% reduction[45]. - The company reported a decrease in cash and restricted cash of $431,291 in Q1 2024, compared to a decrease of $15,617,642 in Q1 2023[45]. Operating Expenses - Operating expenses decreased to $8.7 million in Q1 2024 from $13.7 million in Q1 2023, attributed to cost controls and restructuring benefits[16]. - Total operating expenses for Q1 2024 were $8,732,213, down 36.3% from $13,679,575 in Q1 2023[40]. - Stock-based compensation expenses decreased to $269,553 in Q1 2024 from $1,263,356 in Q1 2023, a reduction of 79%[45]. - The company incurred $1,052,211 in amortization of intangible assets in Q1 2024, up from $978,838 in Q1 2023, showing a 7% increase[45]. - The company reported a depreciation expense of $123,071 in Q1 2024, down from $252,544 in Q1 2023, indicating a 51% decrease[45]. Cash Position - Ondas held cash and cash equivalents of approximately $14.5 million as of March 31, 2024, nearly unchanged from $15.0 million at the end of 2023[19]. - The company’s cash position as of March 31, 2024, was $14,548,561, slightly down from $14,979,436 at the end of 2023[37]. - Cash and restricted cash at the end of Q1 2024 was $14,590,709, slightly up from $14,157,454 at the end of Q1 2023[45]. - Net cash flows provided by financing activities in Q1 2024 were $8,236,646, a significant increase compared to $(3,649,210) in Q1 2023[45]. Business Developments - Ondas Networks secured a $2.8 million agreement to develop on-locomotive radios for the 220 MHz frequency band, with commercial delivery expected in Q1 2025[7]. - Ondas Networks achieved a successful systems integration milestone in the legacy 900 MHz network with a Class I railroad, planning to migrate to the new 900 MHz frequency band in Q2 2024[7]. - Airobotics received an initial purchase order for the Iron-Drone Raider platform from a major defense company, with follow-on orders expected in Q2 and Q3 2024[11]. - The company expects significant revenue growth in 2024, driven by increasing customer activity and backlog in both business units, particularly in the second half of the year[20]. Regulatory and Market Expansion - Ondas Holdings has achieved significant regulatory milestones, including the first FAA Type Certification for its Optimus System and approval for automated drone operations beyond visual line of sight[26]. - The company continues to focus on expanding its market presence in critical infrastructure sectors such as oil & gas, rail, and public safety through its proprietary wireless data solutions and drone technologies[27]. Assets and Liabilities - Total assets decreased to $91,615,524 as of March 31, 2024, from $92,164,682 at the end of 2023[38]. - Current liabilities increased to $37,944,150 in Q1 2024, compared to $35,940,104 at the end of 2023, reflecting a 5.6% rise[38]. - The company’s accumulated deficit grew to $(208,236,150) as of March 31, 2024, from $(198,360,066) at the end of 2023[38].