UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
or
For the transition period from _______ to _______
Commission File Number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) (Zip Code)
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The |
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The number of shares outstanding of the issuer’s common stock
as of May 13, 2026 was
ONDAS INC.
INDEX TO FORM 10-Q
| Page | ||
| PART I - FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements | 1 |
| Condensed Consolidated Balance Sheets | 1 | |
| Condensed Consolidated Statements of Operations | 2 | |
| Condensed Consolidated Statements of Comprehensive Income (Loss) | 3 | |
| Condensed Consolidated Statements of Temporary Equity and Stockholders’ Equity | 4 | |
| Condensed Consolidated Statements of Cash Flows | 5 | |
| Notes to the Condensed Consolidated Financial Statements | 6 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 49 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 55 |
| Item 4. | Controls and Procedures | 55 |
| PART II - OTHER INFORMATION | 56 | |
| Item 1. | Legal Proceedings | 56 |
| Item 1A. | Risk Factors | 56 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 56 |
| Item 3. | Defaults Upon Senior Securities | 56 |
| Item 4. | Mine Safety Disclosures | 56 |
| Item 5. | Other Information | 56 |
| Item 6. | Exhibits | 57 |
i
ITEM 1. FINANCIAL STATEMENTS
ONDAS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except par value)
| March 31, 2026 |
December 31, 2025 |
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash | ||||||||
| Short-term investments | ||||||||
| Accounts receivable, net | ||||||||
| Inventory, net | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Property and equipment, net | ||||||||
| Goodwill | ||||||||
| Intangible assets, net | ||||||||
| Long-term equity investments | ||||||||
| Investment in unconsolidated affiliates, at fair value | ||||||||
| Other assets | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued expenses and other current liabilities | ||||||||
| Accrued purchase and contingent consideration | ||||||||
| Notes payable, related party | ||||||||
| Notes payable | ||||||||
| Convertible note payable, related party | ||||||||
| Convertible note payable | ||||||||
| Deferred revenue | ||||||||
| Government grant liability | ||||||||
| Total current liabilities | ||||||||
| Notes payable, net of current portion | ||||||||
| Accrued purchase and contingent consideration, net of current portion | ||||||||
| Convertible notes payable, net of current portion | ||||||||
| Government grant liability, net of current portion | ||||||||
| Warrant liability | ||||||||
| Deferred tax liability | ||||||||
| Other long-term liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and Contingencies (Note 16) | ||||||||
| Temporary Equity | ||||||||
| Redeemable noncontrolling interests | ||||||||
| Stockholders’ Equity | ||||||||
| Preferred stock – par value $ |
||||||||
| Series A Convertible Preferred stock – par value $ |
||||||||
| Common stock – par value $ |
||||||||
| Additional paid in capital | ||||||||
| Accumulated other comprehensive (loss) income | ( |
) | ||||||
| Accumulated deficit | ( |
) | ( |
) | ||||
| Total Ondas Inc. stockholders’ equity | ||||||||
| Noncontrolling interest | ||||||||
| Total stockholders’ equity | ||||||||
| Total liabilities, temporary equity, and stockholders’ equity | $ | $ | ||||||
The accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.
1
ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
| Three Months Ended, | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Revenues, net | $ | $ | ||||||
| Cost of goods sold | ||||||||
| Gross profit | ||||||||
| Operating expenses: | ||||||||
| General and administrative | ||||||||
| Sales and marketing | ||||||||
| Research and development | ||||||||
| Total operating expenses | ||||||||
| Operating loss | ( | ) | ( | ) | ||||
| Other income (expense), net | ||||||||
| Other income (expense), net | ( | ) | ||||||
| Change in fair value of warrant liability | ||||||||
| Gain on deconsolidation of subsidiary | ||||||||
| Loss on acquisition of variable interest entity | ( | ) | ||||||
| Change in fair value of government grant liability | ( | ) | ( | ) | ||||
| Interest and dividend income | ||||||||
| Unrealized loss on investments | ( | ) | ||||||
| Interest expense | ( | ) | ( | ) | ||||
| Foreign exchange gain (loss), net | ( | ) | ||||||
| Total other income (expense), net | ( | ) | ||||||
| Income (loss) before provision for income taxes | ( | ) | ||||||
| Provision for income taxes | ||||||||
| Net income (loss) | ( | ) | ||||||
| Less preferred dividends attributable to noncontrolling interest | ||||||||
| Less deemed dividends attributable to accretion of redemption value | ||||||||
| Net loss attributable to noncontrolling interests | ( | ) | ||||||
| Net income (loss) attributable to Ondas Inc. stockholders | $ | $ | ( | ) | ||||
| Net income (loss) per share – basic | $ | $ | ( | ) | ||||
| Net income (loss) per share – diluted | $ | $ | ( | ) | ||||
| Weighted average number of common shares outstanding, basic and diluted | ||||||||
| Basic | ||||||||
| Diluted | ||||||||
The accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.
2
ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net income (loss) | $ | $ | ( | ) | ||||
| Other comprehensive income (loss): | ||||||||
| Foreign currency translation | ( | ) | ||||||
| Available-for-sale investments: | ||||||||
| Unrealized gain (loss), net | ( | ) | ||||||
| Comprehensive income (loss) | $ | $ | ( | ) | ||||
| Comprehensive income (loss) attributable to: | ||||||||
| Comprehensive loss attributable to noncontrolling interests | ( | ) | ||||||
| Foreign currency translation adjustments attributable to noncontrolling interests | ||||||||
| Noncontrolling interests | ( | ) | ||||||
| Comprehensive income (loss) attributable to Ondas Inc. stockholders | $ | $ | ( | ) | ||||
The accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.
3
ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF TEMPORARY EQUITY AND STOCKHOLDERS’
EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(dollars in thousands)
(Unaudited)
| Ondas
Inc. Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||
| Redeemable Noncontrolling Interest | Common Stock | Additional Paid in | Accumulated other | Accumulated | Noncontrolling | Total Stockholders’ | |||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Income (Loss) | Deficit | Interest | Equity | |||||||||||||||||||||||||||||
| Balance, January 1, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||||
| Preferred dividends attributable to redeemable noncontrolling interest | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Accretion of redeemable preferred stock in Ondas Networks | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Issuance of warrants in Ondas Networks, in connection with convertible note payable | - | - | |||||||||||||||||||||||||||||||||||
| Issuance of shares for payment on convertible debt | |||||||||||||||||||||||||||||||||||||
| Issuance of shares upon exercise of options and warrants and delivery of restricted stock units | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | - | - | |||||||||||||||||||||||||||||||||||
| Net Loss | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||||
| Balance, January 1, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||||
Accretion to redemption amount of redeemable noncontrolling interests | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Settlement of redeemable noncontrolling interest | ( | ) | |||||||||||||||||||||||||||||||||||
| Deconsolidation of subsidiary | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||
| Issuance of shares, warrants, and pre-funded warrants from Offerings, net of offering costs | ( | ) | |||||||||||||||||||||||||||||||||||
| Issuance of shares upon exercise of options and warrants and delivery of restricted stock units | |||||||||||||||||||||||||||||||||||||
| Issuance of shares in connection with acquisitions | |||||||||||||||||||||||||||||||||||||
| Issuance of shares in exchange for shares of OAS, net of costs | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | - | - | |||||||||||||||||||||||||||||||||||
| Change in net unrealized gain on debt securities, net of tax | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Foreign currency translation adjustments, net of tax | - | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Net income (loss) | - | ( | ) | - | ( | ) | |||||||||||||||||||||||||||||||
| Balance, March 31, 2026 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||
The accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.
4
ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income (loss) | $ | ( | ) | |||||
| Adjustments to reconcile net income (loss) to net cash flows used in operating activities: | ||||||||
| Unrealized losses on investments | ||||||||
| Depreciation | ||||||||
| Amortization of debt discount and issuance cost | ||||||||
| Amortization of intangible assets | ||||||||
| Amortization of right of use asset | ||||||||
| Noncash interest expense | ||||||||
| Gain on disposal of equipment | ( | ) | ||||||
| Change in fair value of warrant liability | ( | ) | ||||||
| Gain on deconsolidation of subsidiary | ( | ) | ||||||
| Loss on acquisition of variable interest entity | ||||||||
| Change in fair value of government grant liability | ( | ) | ||||||
| Stock-based compensation | ||||||||
| Changes in operating assets and liabilities, net of acquisitions and deconsolidations: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Inventory | ( | ) | ( | ) | ||||
| Other current assets | ( | ) | ( | ) | ||||
| Deposits and other assets | ( | ) | ( | ) | ||||
| Accounts payable | ( | ) | ( | ) | ||||
| Accrued expenses and other current liabilities | ||||||||
| Deferred revenue | ( | ) | ||||||
| Operating lease liability | ( | ) | ( | ) | ||||
| Deferred tax liability | ( | ) | ||||||
| Other liabilities | ||||||||
| Net cash flows used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Proceeds from sale of property and equipment | ||||||||
| Purchase of long-term equity investments | ( | ) | ||||||
| Purchases of short-term investments | ( | ) | ||||||
| Maturities of short-term investments | ||||||||
| Cash paid for acquisition, net of cash acquired | ( | ) | ||||||
| Deconsolidation of subsidiary cash | ( | ) | ||||||
| All other investing activities | ( | ) | ( | ) | ||||
| Net cash flows used in investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from exercise of options and warrants | ||||||||
| Proceeds from sale of common stock and warrants, net of issuance costs | ||||||||
| Proceeds from convertible notes payable, net of issuance costs | ||||||||
| Proceeds from government grant | ||||||||
| Payments on notes payable | ( | ) | ||||||
| Payments on government grant liability | ( | ) | ( | ) | ||||
| Net cash flows provided by financing activities | ||||||||
| Increase (decrease) in cash, cash equivalents, and restricted cash | ( | ) | ||||||
| Effect of exchange rate on cash | ( | ) | ||||||
| Cash, cash equivalents, and restricted cash beginning of period | ||||||||
| Cash, cash equivalents, and restricted cash end of period | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
| Cash paid for interest | $ | $ | ||||||
| Cash paid for income taxes | $ | $ | ||||||
| SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Preferred dividends attributable to redeemable noncontrolling interest | $ | $ | ||||||
| Accretion of redeemable noncontrolling interest to redemption value | $ | $ | ||||||
| Common stock issued in connection with business acquisitions | $ | $ | ||||||
| Common stock issued in exchange for debt repayment | $ | $ | ||||||
| Issuance of shares in exchange for shares of OAS, net of costs | $ | $ | ||||||
| Warrants issued in connection with convertible notes payable with respect to Ondas Networks | $ | $ | ||||||
| Operating leases right-of-use assets obtained in exchange of lease liabilities | $ | $ | ||||||
The accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.
5
ONDAS INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – DESCRIPTION OF BUSINESS
Ondas, Inc. (together with its subsidiaries, the “Company,” “Ondas,” “we,” “us,” or “our”) is a defense, security, and critical infrastructure technology company organized around two business units: Ondas Autonomous Systems Inc. (“OAS”) and Ondas Capital Inc. (“Ondas Capital”). Through these business units, we develop and commercialize autonomous systems and strategic investment and partnership initiatives that support the scaling and adoption of mission-critical solutions for governments and industrial customers.
OAS focuses on autonomous and unmanned aerial and ground systems and integrated mission solutions for defense, homeland security, public safety, and other critical infrastructure and industrial end markets. Through its product company subsidiaries, OAS develops, commercializes and delivers integrated capabilities across Counter-Unmanned Aerial System (“CUAS”), aerial Intelligence, Surveillance, and Reconnaissance (“ISR”), and Unmanned Ground Vehicle (“UGV”) applications. Ondas Capital supports our growth strategy through strategic investments, partnerships, and capital formation initiatives intended to accelerate technology development, expand market access, and enhance long-term value creation across the Ondas platform.
The Company manages these business units as distinct operating platforms aligned to complementary end markets and customer requirements. The Company’s approach is designed to combine advanced autonomy, secure communications, and integrated operating capabilities to help customers improve situational awareness, operational resilience, and safety and security outcomes in complex, regulated, and often contested environments.
Deconsolidation of subsidiary
At December 31, 2025, Ondas Networks was a separate business unit that was consolidated in the December 31, 2025 financial statements. Ondas Networks provides mission-critical private wireless connectivity solutions for Industrial Internet of Things (IOT) applications, enabling secure, reliable, wide-area communications and edge data transport in demanding critical infrastructure environments.
On January 16, 2026,
Ondas Networks completed a Series B preferred stock financing (the “2026 Networks Offering”) for aggregate gross proceeds
of approximately $
During the quarter ended March 31, 2026, the Company determined that it no longer held a controlling financial interest in Ondas Networks as a result of the 2026 Networks Offering. This determination resulted from the 2026 Networks Offering, pursuant to which minority preferred shareholders exercised warrants and acquired additional voting interests in Ondas Networks (refer to Note 17 for additional details). As a result of these warrant exercises, the Company’s ownership and voting interests were diluted such that it no longer possessed the unilateral power to direct the activities that most significantly impact Ondas Networks’ economic performance. Accordingly, the Company deconsolidated Ondas Networks effective January 16, 2026 and no longer includes the assets, liabilities, and results of operations of Ondas Networks in its consolidated financial statements subsequent to that date.
Upon deconsolidation, the Company derecognized all assets and liabilities
of Ondas Networks, including the related noncontrolling interest, and remeasured its retained ownership interest to fair value. The Company
recognized a gain on deconsolidation of $
Following the deconsolidation,
the Company retains an approximately
6
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying condensed consolidated financial statements include the consolidated accounts of the Company and its wholly-owned and majority-owned subsidiaries, as well as other entities in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements present the Company’s historical financial position, results of operations, changes in stockholders’ equity and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
The condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. As such, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, the condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related notes as of and for the fiscal year ended December 31, 2025, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on March 30, 2026 (the “2025 Annual Report”). The condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary for a fair presentation of the Company’s condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. All intercompany accounts and transactions are eliminated upon consolidation.
Acquisitions
The Company accounts for business combinations in accordance with ASC 805, Business Combinations (“ASC 805”). Assets acquired, liabilities assumed, and noncontrolling interests are measured at fair value at the acquisition date. Any excess of the consideration transferred over the estimated fair value of net assets acquired is recorded as goodwill.
The Company accounts for asset acquisitions in accordance with ASC 805-50, related to transactions that do not meet the definition of a business. In an asset acquisition, the cost of the transaction, including transaction costs and contingent consideration that is probable and reasonably estimable at the acquisition date, is allocated to the identifiable assets acquired and liabilities assumed on a relative fair value basis. No goodwill is recognized in an asset acquisition. Any excess of the transaction cost over the estimated fair value of net assets acquired is recognized in earnings.
7
Goodwill and Intangible Assets
Goodwill and other intangible assets result from the Company’s acquisition of existing businesses. In accordance with accounting standards related to business combinations, goodwill is not amortized; however, certain finite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Intangible assets with indefinite lives are not amortized. The Company reviews identified intangible assets and goodwill for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The Company also tests intangible assets with indefinite lives and goodwill for impairment at least annually.
Use of Estimates
The process of preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements. Such management estimates include those relating to allocation of consideration for business combinations to identifiable tangible and intangible assets, asset acquisitions, deconsolidation’s and retained interests, revenue recognition, inventory write-downs to reflect net realizable value, fair values of financial instruments and goodwill, assumptions used in the valuation of stock-based awards, derivative warrant liabilities, and valuation allowances against deferred tax assets. Actual results could differ from those estimates.
Cash and Cash Equivalents, and Restricted Cash
The Company considers all
highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash includes
cash that is not readily available for use in the Company’s operating activities. At December 31, 2025, $
Short-term investments
The Company accounts for its investments in debt securities, including fixed-income securities and certificates of deposit, as available-for-sale in accordance with ASC 320, Investments—Debt Securities. Available-for-sale debt securities are recorded at fair value on the consolidated balance sheets, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss).
The amortized cost of available-for-sale securities includes the purchase price, adjusted for the amortization of premiums and accretion of discounts, which are recognized in interest income using the effective interest method. Interest income earned on investments, including certificates of deposit, is recorded in interest and dividend income in the condensed consolidated statements of operations. Certificates of deposit included in available-for-sale investments are classified based on their contractual maturities and are recorded at fair value, with changes in fair value reflected in accumulated other comprehensive income (loss).
8
The Company evaluates available-for-sale debt securities, including certificates of deposit, for expected credit losses at each reporting date and records an allowance for credit losses when a decline in fair value below amortized cost is attributable to credit factors. Unrealized losses that are not credit related are recorded in accumulated other comprehensive income (loss). Upon the sale or maturity of an available-for-sale security, realized gains or losses are recognized in earnings and amounts previously recorded in accumulated other comprehensive income (loss) are reclassified into earnings.
The Company’s investments in equity securities are accounted for in accordance with ASC 321, Investments—Equity Securities. Equity securities with readily determinable fair values are measured at fair value, with changes in fair value recognized in earnings. Equity securities without readily determinable fair values are recorded at cost, less impairment, and adjusted for observable price changes in orderly transactions for identical or similar equity securities of the same issuer, with such adjustments recognized in earnings. Dividends received from equity securities are recognized in earnings when declared.
Inventory
Inventories, which consist
solely of raw materials, work in process, and finished goods, are stated at the lower of cost (first-in, first-out) or net realizable
value, net of reserves for obsolete inventory. We continually analyze our slow-moving and excess inventories. Based on historical and
projected sales volumes and anticipated selling prices, we established reserves.
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||
| Raw material | $ | $ | ||||||
| Work in process | ||||||||
| Finished goods | ||||||||
| Less inventory reserves | ( | ) | ( | ) | ||||
| Total inventory, net | $ | $ | ||||||
Impairment of Long-Lived Assets
Long-lived assets are evaluated whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or the useful life has changed. Such indicators include significant technological changes, adverse changes in market conditions and/or poor operating results. The carrying value of a long-lived asset group is considered impaired when the projected undiscounted future cash flows are less than its carrying value. The amount of impairment loss recognized is the difference between the estimated fair value and the carrying value of the asset or asset group. Fair market value is determined primarily using the projected future cash flows discounted at a rate commensurate with the risk involved. There was impairment of long-lived assets for the three months ended March 31, 2026 and 2025, respectively.
9
Other Assets
Other long-term assets generally consist of right-of-use assets resulting from leases, long-term portion of prepaid expenses, and refundable deposits that are not expected to be received in the next twelve months.
On March 28, 2026, the Company
entered into an agreement with World View Enterprises Inc. (World View) in which the Company guaranteed payment of certain vendor invoices
(the World View Guarantee). The Company recorded the fair value of the guaranteed amounts, totaling $
On January 16, 2026,
upon the deconsolidation of Ondas Networks, the Company recorded a note receivable from Ondas Networks (the “Networks Note”),
an unconsolidated affiliate accounted for under the equity method. The face value of the Networks Note is $
Other Liabilities
Other liabilities generally consist of operating lease liabilities, accrued interest, contingent consideration, long-term deferred revenue, and refundable sub-lease deposit that are not expected to be repaid in the next twelve months.
Other liabilities include
the World View Guarantee of $
Noncontrolling Interests
Noncontrolling interests represent the minority shareholders’ proportionate share of the Company’s majority-owned subsidiaries. The portion of net income (loss) attributable to noncontrolling interests is presented as net loss attributable to noncontrolling interests in the condensed consolidated statements of operations, and the portion of other comprehensive income (loss) of these noncontrolling interests is presented in the condensed consolidated statements of stockholders’ equity.
Redeemable Noncontrolling Interests
Redeemable noncontrolling interests represent equity interests in consolidated subsidiaries that are not attributable to the Company and that are subject to redemption upon the occurrence of events that are not solely within the Company’s control, including temporary equity classified instruments and put options embedded in the noncontrolling interests.
Redeemable noncontrolling interests are initially measured at their fair value. Noncontrolling interests which are currently redeemable are measured at the greater of the amount that would be paid if settlement occurred as of the balance sheet date or the carrying amount adjusted for net income (loss) attributable to the noncontrolling interest. For noncontrolling interests which are probable of becoming redeemable, the Company uses the accretion method for instruments with fixed redemption amounts or the immediate method for instruments redeemable at fair value or based on a formula, if such amounts are greater than the carrying amount adjusted for net income (loss) attributable to the noncontrolling interests. Adjustments to the carrying value of the redeemable noncontrolling interests are recorded through additional paid-in capital.
10
Derivative Warrant Liabilities
The Company classifies as equity any warrants that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any warrants that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control), (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement) or (iii) that contain reset provisions that do not qualify for the scope exception. The Company assesses classification of its common stock warrants and other freestanding warrant instruments at each reporting date to determine whether a change in classification between assets and liabilities is required.
Warrants that are determined to require equity classification are measured at fair value upon issuance and are not subsequently remeasured unless they are required to be reclassified. Warrants that are determined to require asset or liability classification are measured at fair value upon issuance and are subsequently remeasured to fair value at each balance sheet date with any change in fair value recognized in the condensed consolidated statements of operations.
Embedded Derivatives
Features embedded into contracts are assessed to determine if they represent embedded derivatives which require bifurcation and separate recognition. Embedded derivatives requiring bifurcation are accounted for at fair value, with subsequent changes in fair value recognized in the condensed consolidated statements of operations.
Fair Value of Financial Instruments
Our financial assets measured at fair value on a recurring basis consist primarily of cash equivalents, such as money market funds, short-term investments, including publicly traded equity securities, warrants (including warrants exercisable for publicly traded stock), and available-for-sale debt securities. Our financial liabilities measured at fair value on a recurring basis consist primarily of government grant liabilities and warrant liabilities.
Government grant liabilities represent obligations under government-funded arrangements and are measured at fair value using valuation techniques that incorporate significant unobservable inputs. Warrant liabilities arise from warrants issued by the Company that do not meet the criteria for equity classification and are therefore accounted for as liabilities and measured at fair value on a recurring basis, with changes in fair value recognized in earnings.
The carrying amounts of receivables, accounts payable, and accrued expenses approximate fair value due to the short-term maturity of such instruments.
Income Taxes
Income taxes are accounted
for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax
basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which
the related temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change
in tax rates is recognized when the rate change is enacted. Valuation allowances are recorded to reduce deferred tax assets to the amount
that will more likely than not be realized. In accordance with U.S. GAAP, we recognize the effect of uncertain income tax positions only
if the positions are more likely than not of being sustained in an audit, based on the technical merits of the position. Recognized uncertain
income tax positions are measured at the largest amount that is greater than
Stock-based Compensation
The Company calculates stock-based compensation expense for option awards (“Stock-based Awards”) based on the estimated grant/issue date fair value using the Black-Scholes-Merton option pricing model (“Black-Scholes Model”) and recognize the expense on a straight-line basis over the vesting period. The Company accounts for forfeitures as they occur.
The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the weighted average risk-free interest rate, and the vesting period in determining the fair value of Stock-based Awards. The expected term is based on the “simplified method”, due to the Company’s limited option exercise history. Under this method, the term is estimated using the weighted average of the service vesting period and contractual term of the option award. As the Company does not yet have sufficient history of its own volatility, the Company has identified several public entities of similar size, complexities and industry and calculates historical volatility based on the volatilities of these companies. These assumptions can involve complex judgments about future events, which are open to interpretation and inherent uncertainty. In addition, significant changes in assumptions could significantly impact the amount of expense recorded in a given period.
The Company recognizes restricted
stock unit expense over the period of vesting or the period that services will be provided. Compensation associated with shares of the
Company’s common stock, par value $
11
Net Income (Loss) Per Common Share
Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (the numerator) by the weighted average number of shares of Common Stock outstanding for each period (the denominator).
Basic net income (loss) per share is computed using the two-class method, which is an earnings allocation method that determines income (loss) per share for common stock and participating securities. The participating securities consist of warrants to purchase common stock issued in the October 2025 Offering and the January 2026 Offering. Undistributed earnings are allocated between common stock and participating securities as if all earnings had been distributed during the period. In periods of loss, no allocation is made to the participating securities.
Diluted net income (loss) per share is calculated using the more dilutive of the two-class method or the treasury stock and if-converted methods, as applicable. Potential dilutive shares include stock options, warrants, restricted stock units, contingently issuable shares, and convertible preferred stock. Because the Company reported a net loss for the three months ended March 31, 2025, the effect of potentially dilutive securities would have been anti-dilutive; therefore, diluted net loss per share equals basic net loss per share for that period.
The reconciliation of basic to diluted shares is as follows (in thousands except share data):
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Calculation of basic income (loss) per share attributable to stockholders | ||||||||
| Net income (loss) attributable to stockholders | $ | $ | ( | ) | ||||
| Net income attributable to participating securities | ( | ) | ||||||
| Net income (loss) attributable to common stockholders - basic | $ | $ | ( | ) | ||||
| Weighted-average common shares outstanding – basic | ||||||||
| Earnings per share - basic | $ | $ | ( | ) | ||||
| Calculation of diluted income (loss) per share attributable to stockholders | ||||||||
| Net income (loss) attributable to stockholders | $ | $ | ( | ) | ||||
| Net income attributable to participating securities | ( | ) | ||||||
| Net income (loss) attributable to common stockholders - diluted | $ | $ | ( | ) | ||||
| Weighted-average common shares outstanding – basic | ||||||||
| Common stock warrants | ||||||||
| Common stock options | ||||||||
| Restricted stock units | ||||||||
| Other | ||||||||
| Weighted-average common shares outstanding – diluted | ||||||||
| Net income (loss) per share - diluted | $ | $ | ( | ) | ||||
The following potentially dilutive securities for the three months ended March 31, 2026 and 2025, have been excluded from the computation of diluted net income (loss) per share because the effect of their inclusion would have been anti-dilutive.
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Warrants to purchase common stock | ||||||||
| Options to purchase common stock | ||||||||
| Contingently issuable shares | ||||||||
| Potential shares issuable under 2022 Convertible Promissory Notes | ||||||||
| Potential shares issuable under 2023 Additional Notes | ||||||||
| Potential shares issuable under 2024 Additional Notes | ||||||||
| Restricted stock units | ||||||||
| Total potentially dilutive securities | ||||||||
Concentration of Customers
A small number of customers
have accounted for a substantial amount of our revenue. Revenue from significant customers, those representing 10% or more of total revenue,
was composed of three customers accounting for
Accounts receivable from significant
customers, those representing 10% or more of the total accounts receivable, were composed of two customers accounting for
12
Recently Adopted Accounting Pronouncements
In September 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 updates the accounting for internal-use software by replacing the previous project-stage model with a principles-based recognition threshold, under which an entity capitalizes qualifying internal-use software costs when management authorizes and commits to fund a project and it is probable the project will be completed and the software will be used for its intended purpose. The amendments also bring website development costs into Subtopic 350-40 and require enhanced disclosures, including presentation of capitalized internal-use software within the scope of ASC 360-10.
The amendments are effective for annual reporting periods beginning after December 15, 2027, including interim periods within those annual periods, with early adoption permitted as of the beginning of an annual reporting period. Ondas elected to early adopt ASU 2025-06 on a prospective basis effective January 1, 2026. Under the prospective method, the Company applies the new capitalization model only to costs incurred on or after January 1, 2026, for new or significantly modified internal-use software projects, while amounts capitalized prior to adoption continue to be amortized under the Company’s historical accounting policies. Prior-period financial statements and opening retained earnings were not adjusted for the adoption of this standard.
The early, prospective adoption of ASU 2025-06 did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows as of and for the period ended March 31, 2026. However, the guidance is expected to affect the timing and amount of internal-use software costs capitalized and amortized in future periods, as well as related disclosures.
Reclassification
Certain amounts reported in the prior year financial statements have been reclassified to conform to the current year’s presentation.
NOTE 3 – REVENUE
The following table presents our disaggregated revenues by type, timing and geographical region.
| Three Months Ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Type of Revenue | ||||||||
| Product revenue | $ | $ | ||||||
| Service revenue | ||||||||
| Development revenue | ||||||||
| Total revenues | $ | $ | ||||||
| Timing of Revenue | ||||||||
| Revenue recognized point in time | $ | $ | ||||||
| Revenue recognized over time | ||||||||
| Total revenue | $ | $ | ||||||
| Geographical region | ||||||||
| Israel | $ | $ | ||||||
| Europe | ||||||||
| Asia - Other | ||||||||
| North America | ||||||||
| United Arab Emirates | ||||||||
| Other Countries | ||||||||
| Total revenues | $ | $ | ||||||
13
Contract Assets and Liabilities
The Company recognizes a receivable
or contract asset when we perform a service or transfer a good in advance of receiving consideration. A receivable is recorded when our
right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. A contract
asset is recorded when we have recognized revenue over time in accordance with meeting our performance obligation but are unable to invoice
the customer yet based on the contractual invoicing terms. The contract asset is reclassified to a receivable when the right to consideration
becomes unconditional. Contract assets are included in other current assets on the condensed consolidated balance sheets.
| (dollars in thousands) | Three Months Ended March 31, 2026 | Year Ended December 31, 2025 | ||||||
| Balance, beginning of period | $ | $ | ||||||
| Contract assets recognized | ||||||||
| Reclassification to accounts receivable, net | ( | ) | ( | ) | ||||
| Balance, end of period | $ | $ | ||||||
The Company recognizes a contract
liability (deferred revenue) when we receive consideration from a customer, or if we have the unconditional right to consideration (i.e.,
a receivable), prior to satisfying the performance obligation. A contract liability is our obligation to transfer goods or services to
a customer for which we have received consideration, or an amount of consideration is due from the customer.
| (dollars in thousands) | Three Months Ended March 31, 2026 | Year Ended December 31, 2025 | ||||||
| Balance, beginning of period | $ | $ | ||||||
| Contract liabilities acquired in business combinations | ||||||||
| Effect of deconsolidation of subsidiary | ( | ) | ||||||
| Additions | ||||||||
| Recognized as revenue | ( | ) | ( | ) | ||||
| Balance, end of period | $ | $ | ||||||
Revenue recognized during
the three months ended March 31, 2026 and 2025 that was included in the contract liability opening balance, was $
14
NOTE 4 – OTHER CURRENT ASSETS
Other current assets consist of the following:
| (dollars in thousands) | Three Months Ended March 31, 2026 | Year Ended December 31, 2025 | ||||||
| Prepaid insurance | $ | $ | ||||||
| Prepaid income and other taxes | ||||||||
| Advance to vendors | ||||||||
| World View advanced payment | ||||||||
| Contract assets | ||||||||
| Receivable for stock option exercises | ||||||||
| Other prepaid expenses and current assets | ||||||||
| Total other current assets | $ | $ | ||||||
NOTE 5 – GOODWILL AND ACQUISITIONS
We account for acquisitions in accordance with ASC 805 and goodwill in accordance with ASC 350, “Intangibles — Goodwill and Other” (“ASC 350”). The purchase price, plus the estimated fair value of noncontrolling interest retained by the selling shareholders, less the estimated fair value of net assets acquired in a business combination, is recorded as goodwill.
The following table summarizes the change in the Company’s goodwill:
| (amounts in thousands) | Total | |||
| Balance as of January 1, 2026 | $ | |||
| Measurement period adjustments | ( | ) | ||
| Goodwill acquired during the period | ||||
| Balance as of March 31, 2026 | $ | |||
The Company completed the acquisitions detailed below to expand product offerings, add critical technology and enter new markets. Control was obtained through the purchase of the issued and outstanding share capital pursuant to the respective share purchase agreement. Equity consideration issued in connection with the acquisitions was measured at fair value based on the quoted market price on the respective acquisition dates. All identifiable intangible assets acquired other than goodwill are finite lived.
Acquisition-related costs
incurred in connection with the 2026 acquisitions were $
The Company valued identifiable intangible assets acquired in its business combinations, and assets acquired that are consolidated as variable interest entities (i.e., Indo Earth Ltd.), using valuation approaches consistent with ASC 805, applied consistently across all acquisitions completed during the period. For material acquisitions, the Company primarily used income-based valuation techniques to estimate fair value based on the present value of expected future economic benefits, including the multi-period excess earnings method for developed technology and the relief-from-royalty method for trade names. These valuations incorporate managements financial forecasts, estimated useful lives, contributory asset charges, royalty rates, tax rates, and discount rates. For acquisitions determined to be immaterial, the Company may use market-based benchmarking approaches, including observable transaction multiples, comparable royalty rate benchmarks, and other market-corroborated data, to estimate the fair value of acquired intangible assets. The Company engaged third-party valuation specialists, as appropriate, to assist in the identification and valuation of intangible assets acquired.
15
2026 Acquisitions
Rotron Aerospace Ltd.
On February 12, 2026, the
Company completed the acquisition of Rotron Aerospace Ltd. (“Rotron”), pursuant to the Share Purchase Agreement (the “Rotron
Acquisition Agreement”), by and among the Company, Gilo Holdings Ltd., a private limited company existing under the laws of England
and Wales (“Gilo”) and indirect owner of Rotron, and the shareholders of Gilo. Pursuant to the Rotron Acquisition Agreement,
the Company acquired
Pursuant to the Rotron Acquisition
Agreement, the Company agreed to contingent consideration in the form of an earn-out payable over four post-acquisition periods, generally
corresponding to calendar years 2026 through 2029. The earn-out is based on the achievement of specified program win milestones and revenue
targets during each earn-out period. For each period, the earn-out consists of (i) a program win component calculated as a percentage
of the total contract value of qualifying customer program wins awarded during the period, subject to defined eligibility criteria and
an aggregate cap of £
The following table summarizes the consideration paid for Rotron and the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date.
| (dollars in thousands) | ||||
| Purchase price consideration | ||||
| Cash | $ | |||
| Equity | ||||
| Fair value of the earn-out consideration | ||||
| Total purchase price consideration | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents and restricted cash | $ | |||
| Inventory | ||||
| Other current assets | ||||
| Property and equipment | ||||
| Right-of-use assets | ||||
| Intangible assets | ||||
| Total estimated fair value of assets acquired | ||||
| Estimated fair value of liabilities assumed: | ||||
| Accounts payable | ||||
| Accrued expenses and other current liabilities | ||||
| Lease liabilities | ||||
| Other long-term liabilities | ||||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | ||||
| Net assets acquired | $ | |||
| Goodwill | $ | |||
The intangible assets acquired
include $
Rotron generated revenue of
$
16
| Three months ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Revenue | $ | $ | ||||||
| Net income (loss) | $ | $ | ( | ) | ||||
4M Defense Ltd.,
On October 29, 2025, the Company
completed the acquisition of a controlling interest in 4M Defense Ltd. (“4M”), a company registered in the State of Israel,
pursuant to the Share Purchase Agreement, dated October 24, 2025 (the “4M Acquisition Agreement”), by and among the Company,
4M, Chirokka Holding Ltd., a company registered in the State of Israel (“HoldCo”), and the 4M shareholders. HoldCo held
On March 16, 2026, pursuant
to the Supplement to Share Purchase Agreement, dated March 16, 2026 (the “4M Supplement”), the Company acquired the remaining
Bird Aerosystems Ltd.
On March 11, 2026, the Company
completed the acquisition of Bird Aerosystems Ltd., a company organized under the laws of the State of Israel (“Bird”) pursuant
to the Share Purchase Agreement (the “Bird Purchase Agreement”), entered into by and among the Company, Bird, Bird’s
shareholders, and a general partnership organized under the laws of the State of Israel, solely in its capacity as the representative,
agent and attorney-in-fact of the indemnifying parties. The Company acquired
The following table summarizes the consideration paid for Bird and the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date.
| (dollars in thousands) | ||||
| Purchase price consideration | ||||
| Cash | $ | |||
| Equity | ||||
| Total purchase price consideration | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents | $ | |||
| Accounts receivable | ||||
| Inventory | ||||
| Other current assets | ||||
| Property and equipment | ||||
| Right of use asset | ||||
| Other long-term assets | ||||
| Intangible assets | ||||
| Total estimated fair value of assets acquired | $ | |||
| Estimated fair value of liabilities assumed: | ||||
| Accounts payable | $ | |||
| Accrued expenses and other current liabilities | ||||
| Deferred revenues | ||||
| Lease liabilities | ||||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | ||||
| Net assets acquired | $ | |||
| Goodwill | $ | |||
17
The intangible assets acquired
include $
Bird generated revenue of
$
| Three months ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Revenue | $ | $ | ||||||
| Net income (loss) | $ | $ | ( | ) | ||||
Indo-Earth Moving Ltd.
On March 17, 2026, the Company
completed the acquisition of certain assets associated with Indo Earth Moving Ltd. (“Indo”) pursuant to a Share Purchase Agreement
with Indo’s shareholders and their representative (the “Indo Agreement”). Pursuant to the Indo Agreement, at closing
the Company transferred cash consideration of $
Although the transaction was structured as a legal acquisition, (i) Indo did not meet the definition of a business under ASC 805, (ii) Indo qualified as a variable interest entity (“VIE”) under ASC 810, Consolidation (“ASC 810”) as its pre-Acquisition equity capitalization was not sufficient to finance its activities without additional subordinated financial support, and (iii) the Company was the primary beneficiary of Indo. As such, in accordance with ASC 810, Indo was consolidated in the Company’s condensed consolidated financial statements beginning on the date the Company obtained a controlling financial interest and recognized a loss on the acquisition measured as the difference between the fair value of the consideration paid and the net amount of Indo’s identifiable assets measured in accordance with ASC 805.
The Indo Milestone Payment and Indo Earn-Out Payments represent contingent
consideration and were measured at fair value at the date the Company obtained a controlling financial interest. The fair value of the
Indo Milestone Payment and Indo Earn-Out Payments at the date the Company obtained a controlling financial interest totaled $
Under the terms of the Indo Agreement, the Company may be entitled to recover all or a portion of the Indo Base Consideration transferred if certain conditions are not satisfied within a defined period following the acquisition date. As of March 31, 2026, the Company has concluded that the refundability provisions represent a contingent feature of the purchase consideration. Accordingly, the refundable amounts continue to be evaluated at each reporting date based on the facts and circumstances then existing, including the likelihood that the relevant conditions will be met. The Company has not recorded any refund receivable as of March 31, 2026, as management has determined that realization of any refund is not probable.
18
The excess purchase consideration
over the estimated fair value of the net assets acquired resulted in a loss on the acquisition of the variable interest of $
| (dollars in thousands) | ||||
| Purchase price consideration | ||||
| Cash | $ | |||
| Equity portion of purchase price | ||||
| Fair value of contingent consideration | ||||
| Total purchase price consideration | $ | |||
| Estimated fair value of assets acquired: | ||||
| Customer relationships | $ | |||
| Estimated fair value of liabilities assumed: | ||||
| Deferred tax liability | $ | |||
| Net assets acquired | $ | |||
| Loss on acquisition of variable interest entity | $ | |||
Other 2026 acquisitions
During the three months ended
March 31, 2026, the Company completed other acquisitions that were individually immaterial, with an aggregate purchase price of approximately
$
2025 Acquisitions
As of March 31, 2026, the
accounting for the Company’s 2025 acquisitions remains preliminary, as certain fair value measurements associated with the assets
acquired and liabilities assumed have not yet been finalized. During the three months ending March 31, 2026, measurement period adjustments
totaled $
19
Apeiro Motion Ltd.
On August 31, 2025, the Company
completed the acquisition of Apeiro Motion Ltd. (Apeiro), pursuant to the Share Purchase Agreement (the “Apeiro Acquisition Agreement”),
by and among the Company, Apeiro, and the Apeiro shareholders. Pursuant to the Apeiro Acquisition Agreement, the Company acquired
(dollars in thousands) Purchase price consideration | ||||
| Cash consideration | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents and restricted cash | $ | |||
| Certificates of deposit | ||||
| Other current assets | ||||
| Property and equipment | ||||
| Intangible assets | ||||
| Total estimated fair value of assets acquired | $ | |||
| Estimated fair value of liabilities assumed: | ||||
| Accounts payable | $ | |||
| Customer prepayments | ||||
| Accrued expenses and other current liabilities | ||||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | $ | |||
| Net Assets Acquired | $ | |||
| Goodwill | $ | |||
The intangible assets acquired
include $
| (dollars in thousands) | Three months ended March 31, 2025 | |||
| Revenue | $ | |||
| Net loss | $ | ( | ) | |
Smart Precision Optics S.P.O Ltd.
On October 3, 2025, the Company
completed the acquisition of Smart Precision Optics S.P.O ltd. (“SPO”)., a company organized under the laws of the State of
Israel, pursuant to (i) the SPO Share Purchase Agreement, dated August 20, 2025, by and among the Company, SPO, Shamir Investment Entrepreneurship
ACS LTD., an agricultural cooperative society organized under the laws of the State of Israel (“Shamir”) and (ii) the Side
Letter, dated August 20, 2025, by and among the Company, SPO and Shamir (the “Side Letter”) (collectively the “SPO Acquisition
Agreement”).
20
Additionally, if SPO obtains
or receives Qualified Grants (as defined in the SPO Acquisition Agreement) between October 3, 2025 and December 31, 2026, the Company
shall be required to make payment to Shamir in an amount equal to
Subject to the terms of the
SPO Acquisition Agreement, Shamir has the right (the “First Put Option”) to cause the Company to purchase all (but not less
than all) of the remaining issued and outstanding share capital of SPO held by Shamir, which acquisition shall be accompanied with sale
for no additional consideration of any and all capital notes of SPO then held by Shamir (such shares and capital notes, jointly, the “Put
Shares”), at a purchase price of approximately $
Subject to the terms of the SPO Acquisition Agreement, to the extent that the First Put Option was not exercised, Shamir has the right to appoint a third-party evaluator to determine SPO’s valuation and after receiving such valuation, Shamir may offer to the Company to purchase the Put Shares at such evaluated price (the “Second Put Option” together with the First Put Option, the “SPO Options”). If the Company declines, the Company may make a counter-offer to purchase the Put Shares. If Shamir rejects the Company’s counter-offer, Shamir can initiate a “Forced Sale” process to sell 100% of SPO to a third party during a limited period of nine months. Alternatively, if no Forced Sale occurs, Shamir can request an updated evaluation for SPO and either sell to the Company pursuant to Company’s offer, or buy all of the Company’s securities in SPO at the updated valuation. Shamir may exercise the foregoing during the period commencing on the second anniversary of the closing of the SPO Acquisition and ending June 30, 2029. The consideration payable by the Company to Shamir upon the consummation of either the First Put Option or the Second Put Option shall be paid in cash, provided however, that the Company may choose, in its sole discretion, to pay Shamir in Common Stock.
Additionally, subject to the
terms of the SPO Acquisition Agreement, in the event that the Second Put Option is exhausted without being exercised, the Company shall
have the right (the “Call Option”) to require Shamir to sell all (and not less than all) of the remaining issued and outstanding
share capital of SPO held by Shamir in consideration for the amount reflecting SPO’s valuation on a cash free-debt free basis of
approximately $
The following table summarizes the consideration paid for SPO and the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired, liabilities assumed and noncontrolling interest retained by SPO shareholders at the acquisition date.
(dollars in thousands) Purchase price consideration | ||||
| Cash | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents and restricted cash | $ | |||
| Accounts receivable | ||||
| Inventory | ||||
| Other current assets | ||||
| Property and equipment | ||||
| Right of use asset | ||||
| Other long-term assets | ||||
| Intangible assets | ||||
| Total estimated fair value of assets acquired | $ | |||
| Estimated fair value of liabilities assumed: | ||||
| Accounts payable | $ | |||
| Accrued expenses and other current liabilities | ||||
| Government grant liability | ||||
| Convertible preferred notes | ||||
| Lease liabilities | ||||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | $ | |||
| Net assets acquired | $ | |||
| Reconciliation of goodwill: | ||||
| Total consideration transferred | $ | |||
| Add: Fair value of redeemable noncontrolling interest | ||||
| Less: Net assets acquired | ( | ) | ||
| Goodwill | $ | |||
21
The noncontrolling interest
was measured at fair value at the acquisition date. The fair value was estimated based on the implied equity value of SPO, using the purchase
consideration paid for the Company’s
The intangible assets acquired
include $
The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of SPO had occurred on January 1, 2025. The unaudited pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transactions had occurred on January 1, 2025 or what the Company’s operating results will be in future periods. There were no material nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported unaudited pro forma revenue and earnings.
| (dollars in thousands) | Three months ended March 31, 2025 | |||
| Revenue | $ | |||
| Net loss | $ | ( | ) | |
Insight Intelligent Sensors Ltd.
On October 27, 2025, the Company
completed the acquisition of Insight Intelligent Sensors Ltd. (“Insight”), pursuant to the Share Purchase Agreement (the “Insight
Acquisition Agreement”), by and among the Company, Insight, and the Insight shareholders. Pursuant to the Insight Acquisition Agreement,
the Company acquired
(dollars in thousands) Purchase price consideration | ||||
| Cash | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents and restricted cash | $ | |||
| Other current assets | ||||
| Property and equipment | ||||
| Intangible assets | ||||
| Total estimated fair value of assets acquired | $ | |||
| Estimated fair value of liabilities assumed: | ||||
| Accrued expenses and other current liabilities | $ | |||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | $ | |||
| Net assets acquired | $ | |||
| Reconciliation of goodwill: | ||||
| Total consideration transferred | $ | |||
| Add: Fair value of noncontrolling interest | ||||
| Less: Net assets acquired | ( | ) | ||
| Goodwill | $ | |||
22
The noncontrolling interest
was measured at fair value at the acquisition date. The fair value was estimated based on the implied equity value of Insight, using the
purchase consideration paid for the Company’s
The intangible assets acquired
include $
The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of Insight had occurred on January 1, 2025. The unaudited pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transactions had occurred on January 1, 2025 or what the Company’s operating results will be in future periods. There were no material nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported pro forma revenue and earnings.
| (dollars in thousands) | Three months ended March 31, 2025 |
||
| Revenue | $ | ||
| Net loss | $ | ( |
) |
4M Defense Ltd.,
On October 29, 2025, the Company
completed the acquisition of a controlling interest in 4M, a company registered in the State of Israel, pursuant to the Share Purchase
Agreement, dated October 24, 2025 (the “4M Acquisition Agreement”), by and among the Company, 4M, Chirokka Holding Ltd., a
company registered in the State of Israel (“HoldCo”), and the 4M shareholders. HoldCo held
Pursuant to the 4M Acquisition
Agreement, between January 1, 2026 and December 31, 2027, (i) the Company shall have an irrevocable right, exercisable in whole (and not
in part), at the Company’s sole discretion to acquire
23
The following table summarizes the consideration paid for 4M and the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired, liabilities assumed and noncontrolling interest retained by 4M shareholders at the acquisition date.
(dollars in thousands) Purchase price consideration | ||||
| Cash | $ | |||
| Common Stock – 801,068 Shares | ||||
| Total purchase price consideration | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents and restricted cash | $ | |||
| Accounts receivable | ||||
| Other current assets | ||||
| Property and equipment and other long-term assets | ||||
| Intangible assets | ||||
| Total estimated fair value of assets acquired | ||||
| Estimated fair value of liabilities assumed: | ||||
| Accrued expenses and other current liabilities | ||||
| Notes payable | ||||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | ||||
| Net assets acquired | $ | |||
| Reconciliation of goodwill: | ||||
| Total consideration transferred | $ | |||
| Add: Fair value of redeemable noncontrolling interest | ||||
| Less: Net assets acquired | ( | ) | ||
| Goodwill | $ | |||
The noncontrolling interest
was measured at fair value at the acquisition date. The fair value was estimated based on the implied equity value of 4M, using the purchase
consideration paid for the Company’s
The intangible assets acquired
include $
The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of 4M had occurred on January 1, 2025. The unaudited pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transactions had occurred on January 1, 2025 or what the Company’s operating results will be in future periods. There were no material nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported unaudited pro forma revenue and earnings.
| (dollars in thousands) | Three months ended March 31, 2025 | |||
| Revenue | $ | |||
| Net loss | $ | ( | ) | |
24
Sentry CS Ltd.
On November 17, 2025, the
Company completed the acquisition of Sentry CS Ltd., (“Sentrycs”) pursuant to the Share Purchase Agreement (the “Sentrycs
Acquisition Agreement”), entered into by and among the Company, Sentrycs, a company organized under the laws of the State of Israel,
Sentrycs’s shareholders, (the “Sentrycs Major Shareholders”), and Sagitta Holdco SARL, a private limited liability company
organized under the laws of the Grand Duchy of Luxembourg. The Company acquired
The Sentrycs Acquisition Agreement
detailed that the purchase price consideration of $
The Company also paid $
Amounts transferred to the Indemnity Escrow Account serve as security for the sellers’ indemnification obligations. Under the Indemnity Escrow Agreement, these funds will be held until the one-year anniversary of the Sentrycs Acquisition Agreement. During this period, the Company may assert indemnification claims in accordance with the agreement. Any balance remaining in the Indemnity Escrow Account after the one-year period, net of any amounts reserved for outstanding claims, will be released to the sellers. The Ondas Escrow Amount is included in Restricted cash on the Company’s Consolidated Balance Sheets, as the scheduled releases to the Company are considered short-term in nature. Amounts transferred to the Indemnity Escrow Account are recognized as part of the purchase consideration.
The following table summarizes the consideration paid for Sentrycs and the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date.
(dollars in thousands) Purchase price consideration | ||||
| Cash | $ | |||
| Equity portion of purchase price | ||||
| Total purchase price consideration | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents | $ | |||
| Accounts receivable | ||||
| Inventory | ||||
| Other current assets | ||||
| Property and equipment | ||||
| Right of use asset | ||||
| Other long-term assets | ||||
| Intangible assets | ||||
| Total estimated fair value of assets acquired | $ | |||
| Estimated fair value of liabilities assumed: | ||||
| Accounts payable | ||||
| Accrued expenses and other current liabilities | ||||
| Deferred revenues | ||||
| Lease liabilities | ||||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | ||||
| Net Assets Acquired | $ | |||
| Goodwill | $ | |||
25
The intangible assets acquired
include $
The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of Sentrycs had occurred on January 1, 2025. The unaudited pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transactions had occurred on January 1, 2025 or what the Company’s operating results will be in future periods. There were no material nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported unaudited pro forma revenue and earnings.
| (dollars in thousands) | Three months ended March 31, 2025 | |||
| Revenue | $ | |||
| Net loss | $ | ( | ) | |
Robo-Team Holdings Ltd.
On December 17, 2025, the
Company completed the acquisition of Robo-Team Holdings Ltd. (“Robo-Team”), pursuant to the Share Purchase Agreement, dated
November 23, 2025 (the “Robo-Team Acquisition Agreement”), by and among the Company, Robo-Team, and the Robo-Team shareholders.
Pursuant to the Robo-Team Acquisition Agreement, the Company acquired
(dollars in thousands)
| Purchase price consideration | ||||
| Cash | $ | |||
| Estimated fair value of assets acquired: | ||||
| Cash and cash equivalents and restricted cash | $ | |||
| Accounts receivable | ||||
| Inventory | ||||
| Other current assets | ||||
| Property and equipment | ||||
| Right of use asset | ||||
| Intangible assets | ||||
| Other long-term assets | ||||
| Total estimated fair value of assets acquired | ||||
| Estimated fair value of liabilities assumed: | ||||
| Accounts payable | ||||
| Accrued expenses and other current liabilities | ||||
| Deferred revenues | ||||
| Lease liabilities | ||||
| Deferred tax liability | ||||
| Total estimated fair value of liabilities assumed | ||||
| Net Assets Acquired | $ | |||
| Goodwill | $ | |||
26
The intangible assets acquired
include $
The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of Robo-Team had occurred on January 1, 2025. The unaudited pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transactions had occurred on January 1, 2025 or what the Company’s operating results will be in future periods. There were no material nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported unaudited pro forma revenue and earnings.
| (dollars in thousands) | Three months ended March 31, 2025 | |||
| Revenue | $ | |||
| Net loss | $ | ( | ) | |
Goodwill Impairment
The Company reviews goodwill for impairment annually as of December 31 and on an interim basis whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the quarter ended March 31, 2026, the Company performed an assessment of whether any such indicators were present and concluded that there were no triggering events or changes in circumstances that would indicate a potential impairment of goodwill. Accordingly, no interim impairment test was performed as of March 31, 2026.
As previously disclosed, the Company performed a qualitative assessment as of December 31, 2025 and concluded there were no indications of impairment with respect to the goodwill recorded at that date.
27
NOTE 6 – INTANGIBLE ASSETS
The components of intangible assets, all of which are finite-lived, were as follows:
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||
| Gross Carrying | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life (years) | Useful Life (years) | |||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Trademarks | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
| FAA waiver | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Developed technology | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Non-compete agreements | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Customer relationships | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Other intangible assets | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Total | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Amortization expense for the
three months ended March 31, 2026 and 2025 was $
NOTE 7 – LONG-TERM EQUITY INVESTMENTS
These long-term equity investments consist of equity investments in private companies through common and preferred stock. The Company accounts for these equity securities under the measurement alternative because they do not have a readily determinable fair value and do not qualify for the equity method of accounting. Accordingly, the investments are carried at cost, less impairment, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company does not have significant influence over any of the long-term equity investees. Amounts are classified as a long-term equity investment on our condensed consolidated balance sheets. Dividends or other distributions, if and when declared by the investee, are recognized by the Company as investment income upon receipt with adjustments recognized in other (expense) income, net in the condensed consolidated statements of operations.
On August 12, 2025, the Company
purchased a non-controlling interest in Rift Dynamics AS (“Rift”), a Norway-based defense technology company specializing
in affordable, mass-producible combat drone systems, for the aggregate price of $
On November 20, 2025, the
Company purchased Series B-3 Preferred Stock in Performance Drone Works (“PDW”), a veteran-led defense-technology engineer
and manufacturer of advanced robotics for mission-critical national security missions, for the aggregate price of $
On February 27, 2026, the
Company purchased Series B-1 Preferred Stock in Firestorm Labs, Inc (“Firestorm”), a defense technology company that develops
expeditionary manufacturing platforms enabling the on-demand, point-of-need production of mission-critical systems and components for
military and defense applications, for the aggregate price of $
Each reporting period, the Company performs a qualitative assessment to evaluate whether the investment is impaired. The assessment includes a review of recent operating results and trends, recent transactions involving the investee securities, and other publicly available data. If the investment is impaired, the Company writes it down to its estimated fair value. impairment charges were recognized for the three months ended March 31, 2026 or 2025.
28
NOTE 8 – LEASES
The Company has operating leases for office space, warehouses, and certain equipment, primarily automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for up to 10 years. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect inflation and/or changes in other indexes.
are recorded in other assets; the current portion of lease liabilities for our operating leases are recorded in accrued expenses and other current liabilities, and the of our operating liabilities is recorded in on the condensed consolidated balance sheets as follows:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||
| Right-of-use assets: | ||||||||
| Operating lease assets | $ | $ | ||||||
| Total right-of-use assets | $ | $ | ||||||
| Liabilities: | ||||||||
| Operating lease liabilities, current | $ | $ | ||||||
| Operating lease liabilities, net of current | ||||||||
| Total lease liabilities | $ | $ | ||||||
NOTE 9 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||
| Compensation and other benefits | $ | $ | ||||||
| World View Guarantee | ||||||||
| Accrued income and other tax | ||||||||
| Operating lease liabilities | ||||||||
| Accrued purchases | ||||||||
| Accrued interest | ||||||||
| Other accrued expenses and payables | ||||||||
| Total accrued expenses and other current liabilities | $ | $ | ||||||
29
NOTE 10 – NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE
Ondas Inc. 2022 Convertible Exchange Notes, 2023 Additional Notes, and 2024 Additional Notes
In 2022, 2023 and 2024, the Company entered into securities purchase agreements with certain investors, pursuant to which we issued convertible notes. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 30, 2026 for a full description. As of December 31, 2025, the convertible notes were repaid in full.
For
the three months ended March 31, 2025, we recognized interest expense of $
SPO Convertible Capital Notes
In connection with the acquisition
of SPO in October 2025, the Company assumed outstanding convertible capital notes issued by SPO (the “SPO Convertible Capital Notes”).
Immediately prior to the acquisition, the SPO Convertible Capital Notes were held entirely by the existing shareholders of SPO. Upon acquisition,
Concurrent with the acquisition, the SPO Convertible Capital Notes were amended to include the following terms: (i) any repayment of the SPO Convertible Capital Notes is subject to prior written consent of the Company, as the majority shareholder of SPO, (ii) the Company, as the majority shareholder of SPO, has the right, at its sole discretion, to require conversion of any or all SPO Convertible Capital Notes into common shares of SPO after a minimum holding period of five years from the original issuance date of the SPO Convertible Capital Notes, but no earlier than January 1, 2027, at a conversion price reflecting the fair market value of SPO’s common shares as determined by SPO’s board of directors at the relevant time and (iii) each holder of the SPO Convertible Capital Notes may assign all or a portion of its SPO Convertible Capital Notes solely to a transferee of SPO common shares on a pro rata basis, in proportion to the number of shares transferred.
The SPO Convertible Capital Notes do not bear interest and do not have a stated maturity date. The SPO Convertible Capital Notes were accounted for as part of the business combination in accordance with ASC 805 and were initially measured at fair value as of the acquisition date. Because the SPO Convertible Capital Notes are non-interest-bearing and their settlement is contingent upon the timing of future conversion or repayment, the Company recorded the noncontrolling interest portion of the SPO Convertible Capital Notes at a discount to face value.
Subsequent to initial recognition, the outstanding portion of the SPO Convertible Capital Notes is accounted for as a liability and measured at amortized cost. The Company accretes the discount to the SPO Convertible Capital Notes’ face value using the effective interest method, with the resulting accretion recognized as interest expense in the condensed consolidated statements of operations.
As of March 31, 2026 and December
31, 2025, the total outstanding balance of the SPO Convertible Capital Notes subject to repayment or conversion by noncontrolling interest
holders was $
30
Ondas Networks Convertible Notes
On
July 8, 2024 and July 23, 2024, Charles & Potomac Capital, LLC, (“C&P”), an entity affiliated with Joseph Popolo,
a former director of the Company, elected to purchase Convertible Notes in the aggregate original principal amount of $
On
November 13, 2024, pursuant to the Securities Purchase Agreement, dated November 13, 2024, by and between Ondas Networks and a private
investor group (the “November Networks SPA”), multiple investors elected to purchase Convertible Notes in the aggregate original
principal amount of $
On January 15, 2025, pursuant to the Securities Purchase Agreement,
dated January 15, 2025, by and between Ondas Networks, the Company, and a private investor group(the “January Networks SPA,”
together with the November Networks SPA, the “Networks SPA”), multiple investors elected to purchase Convertible Notes in
the aggregate original principal amount of $
On November 13, 2024 and January 15, 2025, in connection with the November
Networks Convertible Notes and January 2025 Networks Convertible Notes, respectively, Ondas Networks issued the investors warrants (“Networks
Warrants”) to purchase $
In the event Ondas Networks consummates an additional equity financing prior to the maturity date, the principal balance and unpaid accrued interest on the Ondas Networks Convertible Notes will be convertible at the option of the Investor into conversion shares upon closing of the next round of equity financing.
On July 3, 2025, the Company amended the Ondas Networks Convertible Notes to extend the maturity date to December 31, 2025. The amendment was accounted for as a debt modification under ASC 470-50.
31
As of December 31, 2025, the
total outstanding principal and accrued interest on the Ondas Networks Convertible Notes was $
On January 16, 2026, Ondas Networks consummated an additional equity financing round. Pursuant to the Securities Purchase Agreement, the Networks Warrants and the principal balance and accrued interest on the Ondas Networks Convertible Notes were converted into shares of Networks Preferred Stock.
As a result of the additional equity financing round, during the quarter ended March 31, 2026, the Company determined that it no longer held a controlling financial interest in Ondas Networks. Accordingly, the Company deconsolidated Ondas Networks effective January 16, 2026 and no longer includes the assets, liabilities, and results of operations of Ondas Networks in its consolidated financial statements subsequent to that date. Refer to Note 1 - Deconsolidation of subsidiary for additional information.
OAS Convertible Notes
In
October and December 2024, multiple investors (collectively, the “Holders”) elected to purchase convertible notes in the aggregate
original principal amount of $
On
December 17, 2025, the Company and OAS entered into agreements with the Holders of the OAS Convertible Notes to convert the principal
and accrued interest outstanding as of November 30, 2025 into OAS Common Stock under the original conversion terms of the OAS Convertible
Notes, at a conversion price of $
32
At
each Holder’s election, the Holder could elect to defer the conversion to January 5, 2026, as the Company and the Holder may agree.
Seven of the eleven Holders that elected to participate in the Exchange, elected to defer their closing to January 5, 2026, (the “January
Converters”). For the year ended December 31, 2025, OAS converted $
As
of December 31, 2025, the total outstanding principal on the OAS Convertible Notes was $
On
January 5, 2026, OAS converted the remaining $
For
the three months ended March 31, 2025, we recognized interest expense of $
Ondas Networks Secured Note
On September 3, 2024, Ondas
Networks entered into a Security Note Agreement (the “Security Agreement”) with C&P, in which, Ondas Networks may draw,
and C&P shall loan Ondas Networks, up to $
On September 3, 2024 and October
7, 2024, pursuant to the C&P Security Agreement, Ondas Networks issued C&P warrants to purchase $
As
of December 31, 2025, the total outstanding principal on the Ondas Networks Secured Note was $
Effective January 16, 2026, the Company determined that it no longer held a controlling financial interest in Ondas Networks and no longer includes the assets, liabilities, and results of operations of Ondas Networks in the condensed consolidated financial statements subsequent to that date. Refer to Note 1 - Deconsolidation of subsidiary for additional information.
33
NOTE 11 – STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION
Stockholders’ Equity
As of March 31, 2026 and December
31, 2025, the Company had
As of March 31, 2026 and December
31, 2025, the Company had
Stock Issued for Convertible Debt
The Company issued
Sale of Common Stock and Capital Raises
January 2026 Offering
On January 12, 2026, the Company
closed on an offering (the “January 2026 Offering”) for the sale of (i)
The January 2026 Offering
price for (i) each 2026 Share and accompanying 2026 Common Warrant was $
The 2026 Common Warrants may
be cash settled, at the option of the holders, upon a change of control event. Because share settlement of the 2026 Common Warrants is
not within the Company’s control, the 2026 Common Warrants were initially classified as a liability with a fair value of $
The net proceeds to the Company
from the January 2026 Offering was $
The table below details the net proceeds of the January 2026 Offering.
(dollars in thousands)
| Gross proceeds | $ | |||
| Offering costs: | ||||
| Underwriting discounts and commissions | ( | ) | ||
| Other offering costs | ( | ) | ||
| Net proceeds | $ |
Noncontrolling Interest in OAS
On September 11, 2025, certain
OAS warrant holders exercised their warrants for
On December 17, 2025, in conjunction
with the OAS Exchange,
34
Noncontrolling Interest in Insight
On October 27, 2025, the Company
completed the acquisition of a controlling interest of
Stock-Based Compensation
Warrants to Purchase Common Stock of the Company
We use the Black-Scholes-Merton option model (the “Black-Scholes Model”) to determine the fair value of warrants to purchase Common Stock of the Company. The Black-Scholes Model is an acceptable model in accordance with U.S GAAP. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the risk-free interest rate, and the term of the warrant.
The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the warrants. Estimated volatility is a measure of the amount by which our stock price is expected to fluctuate each year during the expected life of the award. Our estimated volatility is an average of the historical volatility of peer entities whose stock prices were publicly available over a period equal to the expected life of the awards. We used the historical volatility of peer entities due to the lack of sufficient historical data of our stock price.
A summary of our Warrants activity and related information is as follows:
| Number of Shares Under Warrant | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | ||||||||||
| Balance as of January 1, 2026 | $ | |||||||||||
| Granted | $ | |||||||||||
| Exercised | ( | ) | $ | |||||||||
| Canceled | $ | |||||||||||
| Balance as of March 31, 2026 | $ | |||||||||||
| Vested and Exercisable as of March 31, 2026 | $ | |||||||||||
Total stock-based compensation
expense for warrants for the three months ended March 31, 2026 and 2025 was $
Equity Incentive Plans
In 2018, the Company’s
stockholders adopted the 2018 Equity Incentive Plan, which has been subsequently amended (the “2018 Plan”), pursuant to which
35
In 2021, the Company’s
stockholders adopted the Ondas Inc. 2021 Stock Incentive Plan, which has been subsequently amended (the “2021 Plan”), pursuant
to which
Stock Options to Purchase Common Stock
The Company awards stock options
to certain employees, directors, and consultants, which represent the right to purchase common shares on the date of exercise at a stated
exercise price. Stock options granted to employees generally vest over a two to four-year period and are contingent on ongoing employment.
Compensation expenses related to these awards is recognized straight-line over the applicable vesting period. Stock options granted to
consultants are subject to the attainment of pre-established performance conditions. The actual number of shares subject to the award
is determined at the end of the performance period and may range from
The assumptions used in the Black-Scholes Model are set forth in the table below.
| Three
Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Stock price | $ | $ | ||||||
| Risk-free interest rate | % | % | ||||||
| Volatility | % | % | ||||||
| Expected life in years | ||||||||
| Dividend yield | % | % | ||||||
A summary of our Option activity and related information is as follows:
| Number of Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | ||||||||||
| Balance as of January 1, 2026 | $ | |||||||||||
| Granted | $ | |||||||||||
| Exercised | ( | ) | $ | |||||||||
| Forfeited | ( | ) | $ | |||||||||
| Canceled | ( | ) | $ | |||||||||
| Balance as of March 31, 2026 | $ | |||||||||||
| Vested and Exercisable as of March 31, 2026 | $ | |||||||||||
36
As of March 31, 2026, total
unrecognized compensation expense related to non-vested options was $
Total stock-based compensation expense for stock options for the three months ended March 31, 2026 and 2025 is as follows:
| Three Months Ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| General and administrative | $ | $ | ||||||
| Sales and marketing | ( | ) | ||||||
| Research and development | ||||||||
| Cost of goods sold | ||||||||
| Total stock-based compensation related to options | $ | $ | ||||||
Restricted Stock Units
The Company awards Restricted Stock Units (“RSUs”) to certain employees and directors, which represent a right to receive common stock for each RSU that vests. RSUs generally vest over a one to four-year period and are contingent on ongoing employment or service as directors. Compensation expenses related to these awards is recognized straight-line over the applicable vesting period.
A summary of our RSUs activity and related information is as follows:
| RSUs | Weighted Average Grant Date Fair Value | Weighted Average Vesting Period (Years) | ||||||||||
| Unvested balance at January 1, 2026 | $ | |||||||||||
| Granted | $ | |||||||||||
| Vested | ( | ) | $ | |||||||||
| Canceled | ( | ) | $ | |||||||||
| Unvested balance at March 31, 2026 | $ | |||||||||||
As of March 31, 2026, there
were
Total stock-based compensation expense for RSUs for the three months ended March 31, 2026 and 2025 is as follows:
| Three Months Ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| General and administrative | $ | $ | ||||||
| Sales and marketing | ||||||||
| Research and development | ||||||||
| Cost of goods sold | ||||||||
| Total stock-based compensation related to restricted stock units | $ | $ | ||||||
37
NOTE 12 – REDEEMABLE NONCONTROLLING INTERESTS
Ondas Networks Preferred Stock
Prior to deconsolidation during the three Months ended March 31, 2026, Ondas Networks had issued multiple series of convertible preferred stock to third-party investors in connection with equity financings used to fund its operations. These preferred stock instruments generally accrued dividends and were convertible into shares of Ondas Networks common stock at the option of the holder. Because the preferred stock is redeemable upon the occurrence of specified events, the Company accounted for these instruments as temporary equity in accordance with ASC 480 prior to deconsolidation.
Redeemable Noncontrolling Interest in SPO
In connection with the acquisition
of SPO, Shamir retained a noncontrolling equity interest. Shamir has the right (the “First Put Option”) to cause the Company
to purchase all (but not less than all) of the remaining issued and outstanding share capital of SPO held by Shamir at a purchase price
of approximately $
As of December 31, 2025, the
carrying value and redemption value of Shamir’s noncontrolling equity interest was $
Redeemable Noncontrolling Interest in 4M
In connection with the acquisition
of 4M in October 2025, the 4M shareholders retained a noncontrolling equity interest. The 4M shareholders have the right to cause the
Company to purchase all (but not less than all) of the remaining issued and outstanding share capital of 4M at an aggregate purchase price
equal to
38
For the period of January
1 through March 15, 2026, the Company attributed $
On March 16, 2026, the Company
and 4M shareholders entered into the 4M Supplement, whereby the Company acquired the remaining
Upon closing, the redemption
feature associated with the noncontrolling interest was eliminated and the redeemable noncontrolling interest balance of $
NOTE 13 – FAIR VALUE MEASUREMENTS
Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value for assets and liabilities required to be carried at fair value and provide for certain disclosures related to the valuation methods used within the valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows.
| Level 1 -- | Unadjusted quoted prices in active markets for identical assets or liabilities. |
| Level 2 -- | Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | |
| Level 3 -- | Unobservable inputs for the asset or liability. |
A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows:
| March 31, 2026 Fair Value Measurements | ||||||||||||||||
| (dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets | ||||||||||||||||
| Cash equivalents (money market funds) | $ | $ | $ | $ | ||||||||||||
| Short-term investments | - | |||||||||||||||
| Publicly traded stock | ||||||||||||||||
| U.S. Treasury securities | ||||||||||||||||
| Fixed income (corporate fixed income and bonds, agency securities) | ||||||||||||||||
| Certificates of deposit | ||||||||||||||||
| Warrants in publicly traded companies | ||||||||||||||||
| Total short-term investments | ||||||||||||||||
| Convertible promissory note | ||||||||||||||||
| Equity investment in affiliate | ||||||||||||||||
| Note receivable from affiliate | ||||||||||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||
| Liabilities | ||||||||||||||||
| Government grants | $ | $ | $ | $ | ||||||||||||
| Warrant liabilities | ||||||||||||||||
| Contingent consideration | ||||||||||||||||
| Total liabilities | $ | $ | $ | $ | ||||||||||||
39
| December 31, 2025 Fair Value Measurements | ||||||||||||||||
| (dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Liabilities | ||||||||||||||||
| Government grants | $ | $ | $ | $ | ||||||||||||
| Total liabilities | $ | $ | $ | $ | ||||||||||||
Short-term investments
The Company classifies its
investments in fixed-income securities and certificates of deposit as available-for-sale. Available-for-sale securities are carried at
fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). The amortized cost
of available-for-sale securities includes the purchase price adjusted for the amortization of premiums and accretion of discounts, which
are recognized in interest income using the effective interest method.
| As of March 31, 2026 | ||||||||||||||||
| (dollars in thousands) | Amortized cost basis | Gross unrealized gains | Gross unrealized losses | Fair Value | ||||||||||||
| U.S. Treasury securities | $ | $ | $ | ( | ) | $ | ||||||||||
| Fixed income (corporate fixed income and bonds, agency securities) | ( | ) | ||||||||||||||
| Certificates of deposit | ( | ) | ||||||||||||||
| Total | $ | $ | $ | ( | ) | $ | ||||||||||
The Company holds marketable
equity securities consisting of publicly traded common stock measured at fair value of $
The Company’s investments are measured at fair value on a recurring basis. There were no transfers between Levels 1 and 2 during the period. Fair value measurements classified as Level 2 primarily include U.S. government agency securities, corporate fixed income securities, and certificates of deposit. These instruments are valued using pricing models and matrix pricing techniques that rely on observable market inputs, including quoted prices for similar instruments, benchmark yield curves, interest rate spreads, and dealer quotations. The valuation models do not rely on significant unobservable inputs.
The Company classifies its warrants within Level 3 in the fair value hierarchy because it uses unobservable inputs related to volatility to determine fair value. There were no transfers between Level 1 and Level 3 during the period ended March 31, 2026.
The following table summarizes the Company’s Level 3 investments in marketable equity securities:
| As of March 31, 2026 | ||||||||||||||||
| (dollars in thousands) | Fair Value Hierarchy | Cost Basis | Accumulated Net Unrealized Gains | Fair Value | ||||||||||||
| Warrants exercisable for publicly traded stock | Level 3 | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | |||||||||||||
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The Company’s investment
in warrants exercisable for publicly traded stock allow us to purchase up to
| As of March 31, 2026 | ||||
| Stock price | $ | |||
| Risk-free interest rate | % | |||
| Expected volatility | % | |||
| Remaining contractual life in years | ||||
| Dividend yield | % | |||
The following table provides a reconciliation of the beginning and ending balances for the Level 3 warrant assets measured at fair value using significant unobservable inputs.
| (dollars in thousands) | Warrants | |||
| Balance as of January 1, 2026 | $ | |||
| Warrants purchased, adjusted to fair value | ||||
| Net unrealized gain (loss) on change in fair value | ( | ) | ||
| Balance as of March 31, 2026 | $ | |||
Convertible promissory note
On February 27, 2026, the
Company purchased a $
Equity investment in affiliate
The Company’s equity investment in Ondas Networks is classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs. The fair value of the investment was estimated using a combination of income-based and market-based valuation approaches, requiring significant judgment by management.
The income-based approach primarily applied a discounted cash flow (“DCF”) method using management-prepared financial projections, a terminal value based on a long-term growth rate, and a discount rate that reflects the risks associated with Ondas Networks’ expected future cash flows and early-stage operating profile. A probability-weighted expected return method (“PWERM”) was also used to allocate value across potential future liquidity scenarios, including assumed sale or liquidation outcomes and continued operations, based on management’s assessment of the probability and timing of each scenario and the contractual rights of the equity holders. A market approach utilizing guideline public company data was used to corroborate the income-based valuation conclusions.
41
Significant unobservable inputs include projected revenue growth, operating margins, discount rates, long-term growth rates, assumed probabilities and timing of liquidity events, and market-based valuation multiples. Changes in these assumptions, particularly revenue forecasts, discount rates, or liquidity assumptions, could materially impact the estimated fair value of the investment.
There were no changes in the fair value of the equity investment in affiliate for the three months ended March 31, 2026.
Note receivable from affiliate
The Company holds a note receivable from Ondas Networks, which is measured at fair value and classified as Level 3 within the fair value hierarchy. The fair value of the note receivable was estimated using a discounted cash flow approach, applying a discount rate that reflects the credit risk of Ondas Networks and the illiquid nature of the instrument. Changes in the discount rate could materially affect the estimated fair value of the note receivable.
Government Grants
The Company had Level 3 liabilities
that are required to be valued at fair value as of March 31, 2026 and December 31, 2025. The fair value of the government grant liability
is determined as the sum of
The following table provides a reconciliation of the beginning and ending balances for the Level 3 government grant liabilities measured at fair value using significant unobservable inputs.
| (dollars in thousands) | Government Grant Liability | |||
| Balance as of January 1, 2026 | $ | |||
| Government grant liability acquired in Bird Aerosystems Ltd. acquisition | ||||
| Payments made | ( | ) | ||
| Effect of foreign currency translation | ||||
| Net loss on change in fair value of liability | ||||
| Balance as of March 31, 2026 | $ | |||
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Warrant Liability
The fair value of the warrants was determined using Level 3 inputs in a Black-Scholes Model. Inherent in the valuation were assumptions related to the expected stock-price volatility, expected term, risk-free interest rate, and dividend yield. Estimated volatility is a measure of the amount by which our stock price is expected to fluctuate each year during the expected life of the warrant term. Our estimated volatility is an average of the historical volatility of peer entities whose stock prices were publicly available over a period equal to the expected life of the awards. We used the historical volatility of peer entities due to the lack of sufficient historical data of our stock price. The expected term was assumed to be equivalent to the warrants’ remaining contractual term. The risk-free interest rate was estimated using the yield on actively traded non-inflation-indexed U.S. treasury securities with contract maturities equal to the expected term. The dividend yield was based on the historical rate, which the Company anticipates remaining at zero.
The assumptions used to estimate the fair value of warrants during the period were as follows:
| Range | Weighted average | |||||||
| Risk-free interest rate | % | % | ||||||
| Expected volatility | % | % | ||||||
| Expected life (in years) | ||||||||
| Dividend yield | % | % | ||||||
| (dollars in thousands) | Warrant liability | |||
| Balance as of January 1, 2026 | $ | |||
| Fair value of warrant liability issued during the period | ||||
| Change in fair value of warrant liability | ( | ) | ||
| Balance as of March 31, 2026 | $ | |||
In connection with the January
2026 Offering, the Company issued liability classified warrants that were measured at fair value on the issuance date. The initial fair
value of the warrant liabilities of $
Significant increases or decreases in expected volatility or expected term would result in a higher or lower fair value measurement, respectively.
Contingent Consideration
The Company’s contingent consideration liabilities consist of earn-out and milestone payment arrangements related to business combinations. Earn-out payments are contingent upon the achievement of specified revenue, program win, and financial performance targets over defined post-acquisition periods. Milestone payments are contingent upon the achievement of specified operational, technical, regulatory, or program-related events within defined timeframes. These liabilities are classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs in their valuation. Contingent consideration liabilities are presented as accrued purchase and contingent consideration on the condensed consolidated balance sheets.
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The fair value of the contingent consideration liabilities is estimated using an income-based approach, primarily a scenario-based methods and discounted cash flow techniques. The valuation incorporates multiple future performance and milestone achievement scenarios, each probability-weighted based on management’s assessment of potential outcomes and discounted to present value using risk-adjusted discount rates.
The significant unobservable inputs used in the valuation of the contingent consideration liabilities include projected revenue, probability of achieving performance and milestone targets, discount rates, and the expected timing of payments. These assumptions reflect management’s judgment regarding expected future operating performance, program execution, achievement of specified milestones, market conditions, and the time value of money. Significant increases or decreases in the probability of achieving the underlying earn-out targets or milestone events, or in projected revenue levels, would result in a corresponding increase or decrease in the fair value of the contingent consideration liabilities. Increases in the discount rate would result in a decrease in the estimated fair value of the contingent consideration liabilities.
The following table reconciles the beginning and ending balances of the Company’s Level 3 contingent consideration liabilities:
| (dollars in thousands) | Contingent Consideration | |||
| Balance as of January 1, 2026 | $ | |||
| Earn-out liabilities acquired at fair value | ||||
| Milestone liabilities acquired at fair value | ||||
| Changes in fair value recognized in earnings | ||||
| Payments | ||||
| Balance as of March 31, 2026 | $ | |||
Non-recurring fair value measurements
In connection with the business combinations completed during the three months ended March 31, 2026 and the year ended December 31, 2025, the Company recognized identifiable intangible assets, including developed technology, customer relationships, trade names, and non-compete agreements. These intangible assets were measured at fair value on a non-recurring basis as of their respective acquisition dates in accordance with ASC 805. These measurements are not subsequently remeasured and the assets are amortized over their estimated useful lives.
The fair value of the acquired intangible assets was determined using valuation techniques consistent with the income approach, including discounted cash flow models such as the multi-period excess earnings method for developed technology and customer relationships, the relief-from-royalty method for trade names, and the with-and-without method for non-compete agreements.
These fair value measurements are classified within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs, including projected future revenues, operating margins, customer attrition rates, royalty rates, and discount rates, which reflect management’s assumptions regarding the expected economic benefits derived from the acquired assets. The fair value measurements were determined as of the respective acquisition dates and represent non-recurring measurements.
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NOTE 14 – SEGMENT INFORMATION
During the three months ended March 31, 2026, the Company deconsolidated
Ondas Networks, which was previously included in the Company’s consolidated financial statements. As a result of the deconsolidation,
Ondas Networks is no longer a reportable segment, and the Company evaluated its segment reporting structure for the current period in
accordance with ASC 280, Segment Reporting. Following the deconsolidation, the Company operates in
In assessing performance, the CODM reviews significant operating expense categories reflected in net income (loss), including research and development, sales and marketing, and general and administrative expenses, each of which is separately disclosed in the condensed consolidated statements of operations. In addition, the CODM reviews certain significant expense items that impact operating results, including stock-based compensation, as well as other significant charges or credits that may occur during the period and are discussed elsewhere in the notes to the condensed consolidated financial statements.
The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets. The accounting policies of the Company’s operating segment are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
The following table presents segment information for three months ended March 31, 2026 and 2025:
| Three months ended March 31, 2026 | Three months ended March 31, 2025 | |||||||
| (dollars in thousands) | Total | Total | ||||||
| Product revenue | $ | $ | ||||||
| Service and subscription revenue | ||||||||
| Development revenue | ||||||||
| Revenue, net | ||||||||
| Cost of goods sold | ||||||||
| Gross profit (loss) | ||||||||
| Operating expenses: | ||||||||
| General and administration | ||||||||
| Sales and marketing | ||||||||
| Research and development | ||||||||
| Total other income | ( | ) | ||||||
| Segment operating profit (loss) | ( | ) | ||||||
| Reconciliation of profit or loss adjustments and reconciling items | ||||||||
| Income (loss) before provision for income taxes | $ | $ | ( | ) | ||||
The above table includes depreciation
expense of $
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NOTE 15 – INCOME TAXES
In general, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. However, to the extent that application of the estimated annual effective tax rate is not representative of the quarterly portion of actual tax expense expected to be recorded for the year in a jurisdiction, the Company determines the provision for income taxes based on actual year-to-date income (loss) which it has done for the quarter ended March 31, 2026. Certain significant or unusual items, if applicable, are separately recognized in the quarter in which they occur and can be a source of variability on the effective tax rates from quarter to quarter. The Company’s effective tax rate may change from period-to-period based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, and state and local income taxes.
The effective income tax rate
was expense of
NOTE 16 – COMMITMENTS AND CONTINGENCIES
The Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. There are such loss contingencies that are included in the financial statements as of March 31, 2026.
NOTE 17 – RELATED PARTY TRANSACTIONS
As of March 31, 2026 and December
31, 2025, the Company owed $
Ondas Networks Convertible Notes
On
July 8, 2024, July 23, 2024, and November 13, 2024 C&P elected to purchase Convertible Notes in Ondas Networks in the aggregate original
principal amount of $
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Along with the November 13,
2024 Networks Convertible Notes, Ondas Networks issued warrants to purchase $
As
of December 31, 2025, the total outstanding principal on the C&P Networks Convertible Notes was $
On January 16, 2026, Ondas Networks consummated an additional equity financing round. Pursuant to the Securities Purchase Agreement, the C&P Warrants and the principal balance and accrued interest on the C&P Networks Convertible Notes were converted into shares of Ondas Networks Preferred Stock.
OAS Convertible Notes
On October 10, 2024, Privet
Ventures LLC, an entity affiliated with Eric Brock, Chairman and Chief Executive Officer of the Company and OAS, elected to purchase a
convertible note in OAS in the original principal amount of $
On January 5, 2026, in connection
with the OAS Exchange, Privet Ventures LLC converted $
Ondas Networks Secured Note
On September 3, 2024, Ondas
Networks entered into the C&P Security Agreement, in which Ondas Networks may draw, and C&P shall loan Ondas Networks, up to $
On September 3, 2024 and October 7, 2024, pursuant to the C&P Security
Agreement, Ondas Networks issued C&P warrants to purchase $
As of December 31, 2025, the
total outstanding principal on the Ondas Networks Secured Note was $
Effective January 16, 2026, the Company determined that it no longer held a controlling financial interest in Ondas Networks and no longer includes the assets, liabilities, and results of operations of Ondas Networks in the condensed consolidated financial statements subsequent to that date. Refer to Note 1 - Deconsolidation of subsidiary for additional information.
Networks Note
On January 16, 2026,
upon the deconsolidation of Ondas Networks, the Company recorded the Networks Note, a note receivable from Ondas Networks. The face value
of the Networks Note is $
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NOTE 18 – SUBSEQUENT EVENTS
World View Enterprises, Inc.
On April 1, 2026, the Company completed the acquisition of World View pursuant to the Agreement and Plan of Merger (the “World View Agreement”) by and among the Company, Wassaic Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Wassaic Merger Sub”), World View, and Fortis Advisors LLC, a Delaware limited liability company, in its capacity as the representative thereunder.
Pursuant to the World View
Agreement, Wassaic Merger Sub merged with and into World View, with World View continuing as the surviving entity and a wholly owned subsidiary
of the Company (the “World View Merger”). At the closing of the World View Merger, the Company paid aggregate consideration
of $
The initial accounting for the World View acquisition is incomplete as of the issuance of the condensed consolidated financial statements. Therefore, the Company is unable to provide other disclosures required by ASC 805 regarding this acquisition.
Mistral, Inc.
On April 24, 2026, the Company completed the acquisition of Mistral, Inc. (“Mistral”) pursuant to the Agreement and Plan of Merger (the “Mistral Agreement”), by and among the Company, Project Cyclone Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”), Mistral, Inc., a Delaware corporation (“Mistral”), and Shoshana Banai (the “Mistral Stockholder”).
The Mistral Agreement provides
that, upon the terms and subject to the conditions set forth in the Mistral Agreement, the Company will acquire
The initial accounting for the Mistral acquisition is incomplete as of the issuance of the condensed consolidated financial statements. Therefore, the Company is unable to provide other disclosures required by ASC 805 regarding this acquisition.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis in conjunction with our condensed consolidated financial statements and the notes to those financial statements included elsewhere in this Quarterly Report on Form 10-Q (the “Report”). This information should also be read in conjunction with the information contained in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2026, including the audited consolidated financial statements and notes included therein as of and for the year ended December 31, 2025 (“2025 Form 10-K”). This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking Statements.” Our actual results may differ materially from those contained in or implied by any forward-looking statements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is designed to provide material information relevant to an assessment of the Company’s financial condition and results of operations, including an evaluation of the amounts and certainty of cash flows from operations and from outside sources. This MD&A is designed to focus specifically on material events and uncertainties known to management that are reasonably likely to cause reported financial information not to be necessarily indicative of future operating results or of future financial condition. This includes descriptions and amounts of matters that have had a material impact on reported operations, as well as matters that are reasonably likely based on management’s assessment to have a material impact on future operations.
Overview
Ondas, Inc. (together with its subsidiaries, the “Company,” “Ondas,” “we,” “us,” or “our”) is a defense, security, and critical infrastructure technology company organized around two business units: Ondas Autonomous Systems Inc. (“OAS”), and Ondas Capital Inc. (“Ondas Capital”). Through business units, we develop and commercialize autonomous systems, and strategic investment and partnership initiatives that support the scaling and adoption of mission-critical solutions for governments and industrial customers.
| ● | OAS focuses on autonomous and unmanned aerial and ground systems and integrated mission solutions for defense, homeland security, public safety, and other critical infrastructure and industrial end markets. Through its product company subsidiaries, OAS develops, commercializes, and delivers integrated capabilities across Counter-Unmanned Aerial System (“CUAS”), aerial Intelligence, Surveillance, and Reconnaissance (“ISR”), and Unmanned Ground Vehicle (“UGV”) applications. |
| ● | Ondas Capital supports our growth strategy through strategic investments, partnerships, and capital formation initiatives intended to accelerate technology development, expand market access, and enhance long-term value creation across the Ondas platform. |
We manage these business units as distinct operating platforms aligned to complementary end markets and customer requirements. Our approach is designed to combine advanced autonomy, secure communications, and integrated operating capabilities to help customers improve situational awareness, operational resilience, and safety and security outcomes in complex, regulated, and often contested environments.
The Company deconsolidated Ondas Networks effective January 16, 2026 and no longer includes the assets, liabilities, and results of operations of Ondas Networks in its consolidated financial statements subsequent to that date. Additionally, our results of operations for the three months ended March 31, 2026 have been affected by recent acquisitions. For additional information see Note 5- GOODWILL AND ACQUISITIONS.
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Results of Operations
Comparison of Results for the Three Months Ended March 31, 2026 and 2025
Revenue, net for the three months ended March 31, 2026 and 2025 are as follows:
| Three Months Ended March 31, | ||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | $ Change | % Change | ||||||||||||
| OAS | ||||||||||||||||
| Product revenue | $ | 38,368 | $ | 3,224 | $ | 35,144 | 1,090 | % | ||||||||
| Service revenue | 9,323 | 797 | 8,526 | 1,070 | % | |||||||||||
| Development revenue | 2,431 | - | 2,431 | 100 | % | |||||||||||
| Total OAS revenues, net | 50,122 | 4,021 | 46,101 | 1,147 | % | |||||||||||
| Ondas Networks | ||||||||||||||||
| Product revenue | - | - | -100 | % | ||||||||||||
| Service revenue | - | 12 | (12 | ) | -100 | % | ||||||||||
| Development revenue | - | 215 | (215 | ) | -100 | % | ||||||||||
| Total Ondas Networks revenues, net | - | 227 | (227 | ) | -100 | % | ||||||||||
| Total revenues, net | $ | 50,122 | $ | 4,248 | $ | 45,874 | 1,080 | % | ||||||||
| Total product revenue | 38,368 | 3,224 | 35,144 | 1,090 | % | |||||||||||
| Total service revenue | 9,323 | 809 | 8,514 | 1,052 | % | |||||||||||
| Total development revenue | 2,431 | 215 | 2,216 | 1,031 | % | |||||||||||
| Total revenue, net | $ | 50,122 | $ | 4,248 | $ | 45,874 | 1,080 | % | ||||||||
Revenue, net increased $45.9 million to $50.1 million for the three months ended March 31, 2026 from $4.2 million for the three months ended March 31, 2025. The increase in revenue is primarily attributed to our OAS segment, of which $34.7 million of revenue growth was generated by companies acquired since March 31, 2025 including $15.8 million from Sentry CS Ltd. OAS revenue also increased by $11.4 million at Airobotics, of which approximately $7.9 million relates to product sales and approximately $3.5 million relates to service revenue from sales of our Optimus System™ and Iron Drone Raider™.
Cost of goods sold increased to $25.5 million for the three months ended March 31, 2026, from $2.8 million for the three months ended March 31, 2025. The $22.7 million increase was primarily due to activity from companies acquired since March 31, 2025 and the increase in Airobotics revenues discussed above, in addition to increased labor and material costs.
Gross margin percentage increased to 51% for the three months ended March 31, 2026, compared to 35% for the three months ended March 31, 2025. The 16% increase in gross margin percentage is primarily due the significant increases in revenue generated by product sales offsetting fixed service delivery costs at OAS.
General and administrative expenses (“G&A”) increased $37.4 million, or 633%, to $43.3 million for the three months ended March 31, 2026, from $5.9 million for the three months ended March 31, 2025. This increase is primarily due to (i) an increase of $11.5 million in stock-based compensation for awards granted since March 31, 2025; (ii) an increase of $8.4 million in software costs; (iii) an increase of $7.7 million in professional fees and consulting costs, of which $5.8 million related to legal, accounting and due diligence fees associated with the acquisitions completed during the year; (iv) an increase of $7.1 million related to general and administrative expense attributable to companies acquired since March 31, 2025, of which $2.8 million relates to amortization and depreciation of acquired assets; and (v) an increase of $2.7 million in human resource costs, including benefits, from increased headcount as we build out our management team at both Ondas Inc. and OAS.
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Sales and marketing expenses (“S&M”) increased $8.1 million, or 332%, to $10.5 million for the three months ended March 31, 2026, from $2.4 million for the three months ended March 31, 2025. This increase is primarily due to (i) an increase of $5.4 million related to S&M attributable to companies acquired since March 31, 2025, of which $1.8 million relates to amortization and depreciation of acquired assets; (ii) an increase of $861 thousand in human resource costs, including benefits, from increased headcount; (iii) an increase of $893 thousand in other S&M costs primarily related to increased marketing and advertising costs, use of third-party contractors and consultants, and increased attendance at trade shows and other marketing events; and (iv) an increase of $836 thousand related to increased stock-based compensation for awards granted since March 31, 2025.
Research and development expenses (“R&D”) increased $10.0 million, or 291%, to $13.5 million for the three months ended March 31, 2026, from $3.5 million for the three months ended March 31, 2025, of which $7.8 million related to companies acquired since March 31, 2025. Other increases in R&D include, (i) an increase of $911 thousand in human resource costs, including benefits, from increased headcount, (ii) an increase of $779 thousand is related to increased stock-based compensation for awards granted since March 31, 2025, and (iii) an increase of $534 thousand in other R&D costs primarily related to increased use of third-party consultants and allocation of general expenses to research and development.
Total other income, net increased $408 million to $404.2 million for the three months ended March 31, 2026, from total other expense, net of $3.8 million for the three months ended March 31, 2025. Total other income, net increased primarily as a result of the net gain of $389.5 million related to the change in fair value of our warrant liability, an increase of approximately $51.5 million related to the gain on the deconsolidation of Ondas Networks, an increase of approximately $11.9 million in interest and dividend income, and a decrease of approximately $3.5 million in interest expense. This was partially offset by a loss on acquisition of Indo Earth of approximately $46.2 million and the net unrealized losses of approximately $2.6 million on our equity security investments.
The Company recorded an income tax provision of $245 thousand for the three months ended March 31, 2026, and an income tax provision of $0 for the three months ended March 31, 2025. The 2026 income tax provision is attributable to earnings in foreign jurisdictions.
Net income increased $375.4 million to $361.3 million for the three months ended March 31, 2026, from a net loss of $14.1 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, the Company attributed $1.7 million of net loss to noncontrolling interests (“NCI”), related to the subsidiaries in which we acquired less than 100% ownership during the fourth quarter of 2025. These subsidiaries incurred operating losses due to early-stage operating performance.
Non-GAAP Measures
As required by the rules of the Securities and Exchange Commission (“SEC”), we provide a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measures. These reconciliations are set forth in the tables below.
We believe that adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is a useful supplemental measure for evaluating our operating performance and period to period trends because it eliminates the impact of items that primarily reflect our capital structure, tax position, non-cash accounting charges, acquisition-related transaction costs, and other items that management does not consider indicative of ongoing operating performance. Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) and other measures prepared in accordance with GAAP. Adjusted EBITDA removes the effects of interest and financing-related items, depreciation and amortization, income taxes, stock-based compensation, acquisition-related expenses, and other non-operating gains and losses. Management believes that excluding these items enhances comparability across periods and facilitates analysis of underlying operating trends. Other companies may calculate similarly titled non-GAAP measures differently, and therefore our Adjusted EBITDA may not be comparable to measures used by other companies.
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Cash Operating Expense is a non-GAAP financial measure that represents total operating expenses excluding depreciation, amortization of intangible assets, acquisition-related expenses, and stock-based compensation. The most directly comparable GAAP measure to Cash Operating Expense is total operating expenses. Management believes Cash Operating Expense provides useful supplemental information by isolating recurring, cash-based operating costs and facilitating meaningful period-to-period comparisons. Management uses this measure for internal cost management, budgeting, and liquidity planning, and to evaluate operating trends exclusive of non-cash accounting charges. Cash Operating Expense should be considered in addition to, and not as a substitute for, total operating expenses prepared in accordance with GAAP.
Management uses Adjusted EBITDA and Cash Operating Expense, together with GAAP results, in making operating and planning decisions and in evaluating the Company’s ongoing performance.
| Three months ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Reconciliation of Adjusted EBITDA | ||||||||
| Net income (loss) | $ | 361,250 | $ | (14,136 | ) | |||
| Depreciation | 669 | 181 | ||||||
| Amortization of intangible assets | 5,622 | 1,062 | ||||||
| Acquisition-related expenses (1) | 5,844 | - | ||||||
| Stock-based compensation | 19,658 | 1,573 | ||||||
| Provision for income taxes | 245 | - | ||||||
| Other (income) expense, net (2) | (404,166 | ) | 3,826 | |||||
| Adjusted EBITDA | $ | (10,878 | ) | $ | (7,494 | ) | ||
| (1) | Acquisition-related expenses include legal, accounting, and other due diligence costs incurred in connection with completed or pending acquisitions. |
| (2) | Other (income) expense, net includes interest and dividend income, unrealized gain and losses on investments, interest expense, foreign exchange gain and loss, the change in the fair value of government grant liabilities and warrant liability, and other income (expense), net included on the Company’s unaudited Condensed Consolidated Statements of Operations. |
| Three months ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Reconciliation of Cash Operating Expenses | ||||||||
| Total operating expenses | $ | 67,329 | $ | 11,798 | ||||
| Depreciation (1) | (473 | ) | (180 | ) | ||||
| Amortization of intangible assets | (5,622 | ) | (1,062 | ) | ||||
| Acquisition-related expenses (2) | (5,844 | ) | - | |||||
| Stock-based compensation (1) | (18,497 | ) | (1,572 | ) | ||||
| Cash Operating Expenses | $ | 36,893 | $ | 8,984 | ||||
| (1) | Excludes depreciation and stock-based compensation amounts included in Costs of goods sold on the Company’s unaudited Condensed Consolidated Statements of Operations. |
| (2) | Acquisition-related expenses include legal, accounting, and other due diligence costs incurred in connection with completed or pending acquisitions. |
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Summary of (Uses) and Sources of Cash
| Three months ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Net cash used in operating activities | $ | (51,298 | ) | $ | (6,659 | ) | ||
| Net cash used in investing activities | (474,167 | ) | (195 | ) | ||||
| Net cash provided by financing activities | 968,465 | 2,265 | ||||||
| Increase (decrease) in cash, cash equivalents, and restricted cash | 443,000 | (4,589 | ) | |||||
| Effect of exchange rate on cash | (275 | ) | - | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 594,359 | 29,999 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 1,037,084 | $ | 25,410 | ||||
The principal use of cash in operating activities for the three months ended March 31, 2026, was to fund the Company’s current expenses primarily related to operating activities necessary to allow us to service and support customers for the three months ended March 31, 2026.
The increase in cash flows used in operating activities of $44.6 million primarily relates to an increase in net income of $375.4 million, of which approximately $371.8 million related to non-cash charges and credits, which primarily includes gains and losses on investments, acquisitions, and deconsolidation of subsidiary; change in fair value of warrant liability; amortization of debt discount and issuance costs; depreciation and amortization; and stock-based compensation; combined with changes in operating assets and liabilities resulting in a cash outflow of approximately $48.2 million for the three months ended March 31, 2026.
The increase in cash flows used in investing activities of $474 million primarily relates to an increase of $429.1 million in purchases of short-term investments, net of maturities of $23.1 million; $31.8 million in cash paid, net of cash acquired, for acquisitions; $5 million in purchases of long-term equity investments; $7 million relating to deconsolidation of subsidiary cash; and $1.1 million increase in cash paid for other tangible and intangible assets.
The increase in cash provided by financing activities of $966.2 million primarily relates to the net proceeds of approximately $959.1 million received from the sale of common stock and warrants, net of issuance costs during the three months ended March 31, 2026, combined with an increase in proceeds of approximately $9 million from the exercise of stock options and warrants during the three months ended March 31, 2026, offset by an increase of approximately $1.9 million in net cash outflow related to debt transactions.
Liquidity and Capital Resources
As of March 31, 2026, the Company had a strong liquidity position, including $1.0 billion of cash, cash equivalents, and restricted cash, $448 million of short-term investments, and working capital of approximately $1.5 billion. Based on these resources, management believes the Company has sufficient liquidity to fund its operations and planned capital expenditures for at least the next twelve months. While the Company has incurred losses since inception and historically funded operations through equity and debt financings, management does not believe additional financing is required to support near-term operating needs based on current plans.
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As of March 31, 2026, the Company had an accumulated deficit of $5.4 million. At that date, the Company had net long-term borrowings outstanding of approximately $3.6 million and short-term borrowings of approximately $779 thousand, including accrued interest.
In 2025, the Company raised net proceeds of approximately $829.5 million from the sale of common stock and warrants, $30.8 million from the exercise of stock options and warrants, $1.2 million from the exercise of warrants in OAS, and $923 thousand from the issuance of convertible notes in Ondas Networks (collectively, the “2025 Offerings”). In January 2026, the Company raised approximately $1 billion in gross proceeds from the sale of common stock and warrants.
While the Company currently has significant liquidity, it may seek additional capital to support strategic initiatives, accelerate growth opportunities, or enhance financial flexibility. Although the Company does not currently anticipate the need for additional financing to support near-term operations, future capital requirements could increase depending on the timing and scale of growth initiatives, market conditions, or other strategic factors. In addition, the Company may be required to make cash payments in future periods related to contingent earn-out and milestone arrangements; however, the timing and amount of any such payments are contingent on the achievement of specified operational or financial targets and are not currently expected to impact near-term liquidity.
Off-Balance Sheet Arrangements
As of March 31, 2026, we had no off-balance sheet arrangements.
Critical Accounting Estimates
Management’s discussion and analysis of financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses, as well as related disclosures. We base our estimates and judgments on historical experience and other assumptions that we believe to be reasonable at the time and under the circumstances, and we evaluate these estimates and judgments on an ongoing basis. Information concerning our critical accounting policies with respect to these items is available in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our 2025 Form 10-K. There have been no significant changes in our critical accounting policies since the filing of the 2025 Form 10-K.
Recent Accounting Pronouncements and SEC Rules
There have been no material changes to our significant accounting policies as summarized in Note 2 of our 2025 Form 10-K. We do not expect that the adoption of any recent accounting pronouncements will have a material impact on our accompanying condensed consolidated financial statements.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Report, as well as information included in oral statements or other written statements made or to be made by us, contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. These forward-looking statements are based on our current, reasonable expectations and assumptions, which expectations and assumptions are subject to risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in our 2025 Form 10-K, which was filed with the SEC on March 30, 2026. Given these risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, except as required by law.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are a smaller reporting company as defined by Rule 229.10(f)(1) and are not required to provide information under this item. Although we are not required to provide the quantitative and qualitative disclosures about market risk required by this Item, there have been no material changes to our exposure to market risk for the three months ended March 31, 2026, from those previously disclosed in “Quantitative and Qualitative Disclosures About Market Risk” contained in Part II, Item 7A of our 2025 Form 10-K.
Item 4. Controls and Procedures.
Disclosure Controls and Procedures
The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of March 31, 2026. Based on that evaluation, the Company’s Chief Executive Officer and the Company’s Chief Financial Officer have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective as of March 31, 2026.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
For information related to our legal proceedings, refer to Note 16 —Commitments and Contingencies of Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.
Item 1A. Risk Factors.
Our business, financial condition, operating results, and cash flows may be impacted by a number of factors, many of which are beyond our control, including those set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 30, 2026 (the “2025 Form 10-K”), the occurrence of any one of which could have a material adverse effect on our actual results.
There have been no material changes to the Risk Factors previously disclosed in the 2025 Form 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Unregistered Sales of Securities
During the quarter ended March 31, 2026, the Company issued shares of its common stock and other equity linked-securities in transactions that were not registered under the Securities Act of 1933, as amended. These issuances occurred primarily in connection with business combination transactions and private financing arrangements. All sales of unregistered securities during the quarter ended March 31, 2026 were previously disclosed in a Current Report on Form 8-K except the following.
The 2,389,203 shares of common stock that were issued and exchanged for shares of OAS common stock, pursuant to those certain exchange agreements, by and between the Company, OAS and certain holders of OAS securities (the “OAS Exchange”), were exempt from the registration requirements of the Securities Act in accordance with Regulation D thereunder. Refer to Note 10 – Notes Payable and Convertible Notes Payable – of Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.
The Company did not sell any unregistered equity securities to the public during the fiscal quarter. All unregistered issuances were made in reliance on available exemptions from the registration requirements of the Securities Act, and no underwriters were involved in such transactions.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
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Item 6. Exhibits
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| * | Filed herewith. |
| ** | This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference. |
| + | Schedules and Exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the Securities and Exchange Commission a copy of any omitted schedule upon request. |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
| DATE: May 15, 2026 | ONDAS INC. | |
| By: | /s/ Eric A. Brock | |
| Eric A. Brock | ||
| Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| By: | /s/ Neil J. Laird | |
| Neil J. Laird | ||
| Chief Financial Officer | ||
| (Principal Financial Officer | ||
| Principal Accounting Officer) | ||
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