Exhibit 99.2

 

 

 

 

 

SENTRY CS LTD.

 

UNAUDITED CONDENCED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2025

 

 

 

 

 

 

 

 

 

SENTRY CS LTD.

UNAUDITED CONCOLIDATED CONDENSED BALANCE SHEET

(US Dollars in thousands)

 

   As of
September 30,
2025
 
Assets    
Current assets    
Cash and cash equivalents  $1,594 
Trade account receivables   3,598 
Inventories   1,504 
Other current assets   1,364 
Total current assets   8,060 
      
Property, plant and equipment, net   1,638 
Right of use asset   2,010 
Software, net   60 
Total assets  $11,768 
      
Liabilities and shareholders’ deficiency     
Current liabilities     
Note payable, related party  $4,045 
Trade accounts payable   1,210 
Lease liabilities   611 
Deferred revenues   3,176 
Other current liabilities   3,021 
Total current liabilities   12,063 
      
Lease liability   1,645 
Deferred revenues   154 
Total liabilities   13,863 
      
Commitments and contingent liabilities     
      
Shareholders’ equity     
Ordinary shares   10 
Ordinary shares A   10 
Series B Preferred Shares   3 
Series C Preferred Shares   3 
Series D Preferred Shares   5 
Additional paid-in capital   54,148 
Accumulated deficit   (56,273)
Total shareholders’ deficiency   (2,094)
      
Total liabilities and shareholders’ deficiency  $11,768 

 

The accompanying notes are an integral part of the consolidated condensed financial statements.

 

1

 

SENTRY CS LTD.

UNAUDITED CONCOLIDATED CONDENSED STATEMENT OF OPERATIONS

(US Dollars in thousands)

 

   Nine months
ended
September 30,
2025
 
Sales  $16,309 
Cost of sales   3,870 
Gross profit   12,439 
      
Operating expenses     
Research and development expenses   10,269 
Sales and marketing expenses   5,671 
General and administrative expenses   2,638 
Total operating expenses   18,578 
      
Operating loss   6,139 
      
Financial expenses, net   232 
      
Net loss  $6,371 

 

The accompanying notes are an integral part of the consolidated condensed financial statements.

 

2

 

SENTRY CS LTD.

UNAUDITED CONCOLIDATED CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICENCY

(US Dollars in thousands)

 

   Ordinary shares   Series A   Series B   Series C   Series D   Additional
paid-in
   Accumulated     
   Number   Amount   Number   Amount   Number   Amount   Number   Amount   Number   Amount   capital   deficit   Total 
Balance, December 31, 2024   3,616,813    10    3,600,000    10    1,066,299    3    967,142    3            44,670    (49,902)   (5,206)
Conversion of short-term loans to shares                                   1,533,924    5    9,347        9,352 
Share based compensation                                           131        131 
Exercise of options   60,125    (*)                                            
Shareholder contribution                                                    
Net loss                                               (6,371)   (6,371)
Balance, September 30, 2025   3,676,938    10    3,600,000    10    1,066,299    3    967,142    3    1,533,924    5    54,148    (56,273)   (2,094)

 

(*)Represent a number smaller than $1.

 

The accompanying notes are an integral part of the consolidated condensed financial statements.

 

3

 

SENTRY CS LTD.

UNAUDITED CONCOLIDATED CONDENSED STATEMENT OF CASH FLOWS

(US Dollars in thousands)

 

   Nine months ended
September 30,
2025
 
Cash flows from operating activities    
Net loss  $(6,371)
Adjustments to reconcile net loss to net cash in operating activities     
Noncash items     
Depreciation   227 
Share based compensation   131 
Leases non-cash expenses   201 
Increase in trade accounts receivables   (3,007)
Increase in inventories   (619)
Decrease in other current assets   486 
Increase in trade accounts payable   668 
Increase in deferred revenue   1,253 
Increase in other current liabilities   773 
Net cash used in operating activities   (6,258)
      
Cash flows from investing activities     
Additions to property, equipment and software   (855)
Net cash used in investing activities   (855)
      
Cash flows from financial activities     
Short-term loans from related party   6,304 
Net cash provided by financing activities   6,304 
      
Decrease in cash, cash equivalents and restricted cash   (809)
Cash and cash equivalents beginning of period   2,403 
Cash and cash equivalents end of period  $1,594 
      
Non-cash activities     
Conversion of short-term loans to APIC  $9,352 

 

The accompanying notes are an integral part of the consolidated condensed financial statements.

 

4

 

SENTRY CS LTD.

NOTES TO THE UNAUDITED CONCOLIDATED CONDENSED FINANCIAL STATEMENTS

(US Dollars in thousands)

 

Note 1 – General

 

A.SENTRY CS LTD (hereinafter - “the Company”) was incorporated in Israel on July 28, 2016 and began operations during September 2016. During December 2017, the Company established a wholly owned US subsidiary (Sentrycs Inc.). During July 2024, the Company established a wholly owned subsidiary in Netherlands (Sentrycs CS B.V.).

 

The Company addresses the issue of the unmonitored or malicious use of commercial drones near or above secure areas and protects these areas from various threats such as public disorder, smuggling and rights violations of airspaces.

 

B.These condensed interim consolidated financial statements have been prepared as of September 30, 2025 and for the nine month period then ended. These condensed interim consolidated financial statements should be read in conjunction with the Company’s most recent annual financial statements and accompanying notes.

 

C.As of September 30, 2025 the Company incurred accumulated losses of $56,273 and has negative operating cash flow of $6,258 for the nine-month period ended then. As of September 30, 2025 the Company has $1,594 in cash and cash equivalent and additional financing is essential in order to carry out its objective operation.

 

The Company has a limited operating history and faces several risks, among them: the effects of technological changes, competition, and the development of new products. Additionally, other risk factors exist such as the nature of the Company’s distribution channels, the ability to manage growth, the loss of key personnel, and the effect of planned expansion of operations on the future results of the Company. The Company has not yet generated sufficient revenues from its operations to fund its full activities and therefore it depends on outside financing and continuation support of its shareholder.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The significant accounting policies that have been applied in the preparation of the condensed consolidated interim financial statements are identical to those that were applied in preparation of the Company’s most recent annual financial statements.

 

NOTE 3 – ADDITIONAL INFORMATION

 

In March 2025, the Company entered into a share agreement with its shareholder according to which the shareholder converted a loan in the amount of $9,351 to 1,533,924 Preferred D shares.

 

On November 3, 2025, the Company entered into a share purchase agreement with Ondas Holdings Inc. (“Ondas”) pursuant to which Ondas agreed to acquire 100% of the issued and outstanding share capital of the Company. The transaction was consummated on November 17, 2025, and Ondas became the sole shareholder of the Company. The transaction represents a change in control and did not result in any proceeds being received by the Company. Accordingly, no adjustments have been made to these financial statements as of December 31, 2024 in respect of this transaction. 

 

5