| SEGMENT INFORMATION |
NOTE 12 – SEGMENT INFORMATION
Operating segments are defined as components of an entity for which
discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in making
decisions regarding resource allocation and performance assessment. The Company’s CODM is its Chief Executive Officer. Segment operating
loss and segment loss before provision for income taxes are the measure of profit and loss used by the CODM to assess performance and
to decide how to allocate resources for each of the Company’s reportable segments. Segment operating loss and segment loss before
provision for income taxes are used to monitor actual results versus planned and prior period results for each segment based on their
respective profitability objectives and business models. Segment operating loss and segment loss before provision for income taxes are
also used to allocate human and capital resources among the reportable segments. The Company determined it has two reportable segments,
Ondas Networks and OAS, as the CODM reviews financial information for these two businesses separately. The Company has no inter-segment
sales. The following table presents segment information for years ended December 31,:
| |
|
2024 |
|
|
2023 |
|
| |
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
| Product revenue |
|
$ |
25,682 |
|
|
$ |
2,770,496 |
|
|
$ |
2,796,178 |
|
|
$ |
5,246,948 |
|
|
$ |
6,855,440 |
|
|
$ |
12,102,388 |
|
| Service revenue |
|
|
34,276 |
|
|
|
2,457,679 |
|
|
|
2,491,955 |
|
|
|
12,800 |
|
|
|
2,113,760 |
|
|
|
2,126,560 |
|
| Development revenue |
|
|
1,871,561 |
|
|
|
33,000 |
|
|
|
1,904,561 |
|
|
|
1,462,482 |
|
|
|
- |
|
|
|
1,462,482 |
|
| Revenue, net |
|
|
1,931,519 |
|
|
|
5,261,175 |
|
|
|
7,192,694 |
|
|
|
6,722,230 |
|
|
|
8,969,200 |
|
|
|
15,691,430 |
|
| Cost of goods sold |
|
|
2,290,324 |
|
|
|
4,557,187 |
|
|
|
6,847,511 |
|
|
|
4,647,931 |
|
|
|
4,662,325 |
|
|
|
9,310,256 |
|
| Gross profit (loss) |
|
|
(358,805 |
) |
|
|
703,988 |
|
|
|
345,183 |
|
|
|
2,074,299 |
|
|
|
4,306,875 |
|
|
|
6,381,174 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administration |
|
|
5,261,026 |
|
|
|
10,360,623 |
|
|
|
15,621,649 |
|
|
|
4,374,703 |
|
|
|
13,960,077 |
|
|
|
18,334,780 |
|
| Sales and marketing |
|
|
2,208,960 |
|
|
|
3,101,275 |
|
|
|
5,310,235 |
|
|
|
3,174,435 |
|
|
|
2,668,759 |
|
|
|
5,843,194 |
|
| Research and development |
|
|
5,881,712 |
|
|
|
6,594,689 |
|
|
|
12,476,401 |
|
|
|
7,131,564 |
|
|
|
9,942,371 |
|
|
|
17,073,935 |
|
| Segment operating loss |
|
|
(13,710,503 |
) |
|
|
(19,352,599 |
) |
|
|
(33,063,102 |
) |
|
|
(12,606,403 |
) |
|
|
(22,264,332 |
) |
|
|
(34,870,735 |
) |
| Interest income |
|
|
75,045 |
|
|
|
- |
|
|
|
75,045 |
|
|
|
114,526 |
|
|
|
- |
|
|
|
114,526 |
|
| Interest expense |
|
|
(632,132 |
) |
|
|
(676,704 |
) |
|
|
(1,308,836 |
) |
|
|
(15,000 |
) |
|
|
(427,412 |
) |
|
|
(442,412 |
) |
| Other segment items |
|
|
(29,962 |
) |
|
|
16,837 |
|
|
|
(13,125 |
) |
|
|
(12,184 |
) |
|
|
(955,968 |
) |
|
|
(968,152 |
) |
| Segment loss before provision for income taxes |
|
$ |
(14,297,552 |
) |
|
$ |
(20,012,466 |
) |
|
$ |
(34,310,018 |
) |
|
$ |
(12,519,061 |
) |
|
$ |
(23,647,712 |
) |
|
$ |
(36,166,773 |
) |
| Corporate operating expenses |
|
|
- |
|
|
|
- |
|
|
|
(1,546,202 |
) |
|
|
- |
|
|
|
- |
|
|
|
(4,858,565 |
) |
| Corporate other expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(116,535 |
) |
| Elimination of intercompany interest |
|
|
- |
|
|
|
- |
|
|
|
605,687 |
|
|
|
- |
|
|
|
- |
|
|
|
470,486 |
|
| Corporate interest income |
|
|
- |
|
|
|
- |
|
|
|
159,885 |
|
|
|
- |
|
|
|
- |
|
|
|
9,348 |
|
| Corporate interest expense |
|
|
- |
|
|
|
- |
|
|
|
(2,917,109 |
) |
|
|
- |
|
|
|
- |
|
|
|
(4,182,833 |
) |
| Loss before income taxes |
|
|
- |
|
|
|
- |
|
|
$ |
(38,007,757 |
) |
|
|
- |
|
|
|
- |
|
|
$ |
(44,844,872 |
) |
Additional segment information is set forth below
as of and for the year ending December 31,
| |
|
2024 |
|
|
2023 |
|
| |
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
| Total assets |
|
$ |
24,297,317 |
|
|
$ |
85,324,971 |
|
|
$ |
109,622,288 |
|
|
$ |
19,272,162 |
|
|
$ |
72,892,520 |
|
|
$ |
92,164,682 |
|
| Goodwill |
|
$ |
- |
|
|
$ |
27,751,921 |
|
|
$ |
27,751,921 |
|
|
$ |
- |
|
|
$ |
27,751,921 |
|
|
$ |
27,751,921 |
|
| Depreciation and amortization |
|
$ |
212,031 |
|
|
$ |
4,610,709 |
|
|
$ |
4,822,740 |
|
|
$ |
142,866 |
|
|
$ |
4,849,059 |
|
|
$ |
4,991,925 |
|
| Stock-based compensation |
|
$ |
599,520 |
|
|
$ |
665,665 |
|
|
$ |
1,265,185 |
|
|
$ |
1,111,256 |
|
|
$ |
(63,858 |
) |
|
$ |
1,047,398 |
|
| Capital expenditures |
|
$ |
1,042,699 |
|
|
$ |
593,696 |
|
|
$ |
1,636,395 |
|
|
$ |
79,208 |
|
|
$ |
131,827 |
|
|
$ |
211,035 |
|
|