Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
SEGMENT INFORMATION

NOTE 10 – 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 measures 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 Company’s revenue and significant expenses by segment regularly reviewed by the CODM, and other segment items for the three and six months ended June 30, 2025 and 2024 are as follows: 

 

    Three Months Ended June 30, 2025     Three Months Ended June 30, 2024  
    Ondas
Networks		     OAS     Total     Ondas
Networks		     OAS     Total  
Product revenue   $
-
     $ 3,605,020     $ 3,605,020     $ 22,484     $
-
     $ 22,484  
Service and subscription revenue     7,018       2,488,909       2,495,927      
-
       298,553       298,553  
Development revenue     172,441      
-
       172,441       636,814      
-
       636,814  
Revenue, net     179,459       6,093,929       6,273,388       659,298       298,553       957,851  
Cost of goods sold     446,242       2,495,076       2,941,318       573,483       575,263       1,148,746  
Gross profit (loss)     (266,783 )     3,598,853       3,332,070       85,815       (276,710 )     (190,895 )
Operating expenses:                                                
General and administration     771,461       3,735,396       4,506,857       1,438,503       2,198,512       3,637,015  
Sales and marketing     684,186       1,581,529       2,265,715       505,828       792,877       1,298,705  
Research and development     1,167,418       3,069,510       4,236,928       1,613,699       1,026,304       2,640,003  
Segment operating loss     (2,889,848 )     (4,787,582 )     (7,677,430 )     (3,472,215 )     (4,294,403 )     (7,766,618 )
Interest income     1,783      
-
       1,783       12,360      
-
       12,360  
Interest expense     (1,755,280 )     (88,209 )     (1,843,489 )     (3,750 )     (235,921 )     (239,671 )
Other segment items     (17,954 )     (172,920 )     (190,874 )             650,129       650,129  
Segment loss before provision for income taxes   $ (4,661,299 )   $ (5,048,711 )   $ (9,710,010 )   $ (3,463,605 )   $ (3,880,195 )   $ (7,343,800 )
Corporate operating expenses    
-
      
-
       (1,571,674 )    
-
      
-
       (536,972 )
Elimination of intercompany interest    
-
      
-
       1,267,893      
-
      
-
       228,988  
Corporate interest income    
-
      
-
       248,557      
-
      
-
       74,916  
Corporate interest expense    
-
      
-
       (984,916 )    
-
      
-
       (692,868 )
Loss before income taxes    
-
      
-
     $ (10,750,150 )    
-
      
-
     $ (8,269,736 )
    Six Months Ended June 30, 2025     Six Months Ended June 30, 2024  
    Ondas
Networks		     OAS     Total     Ondas
Networks		     OAS     Total  
Product revenue   $
-
     $ 6,828,993     $ 6,828,993     $ 24,758     $
-
     $ 24,758  
Service and subscription revenue     18,716       3,286,052       3,304,768       14,410       593,730       608,140  
Development revenue     387,809      
-
       387,809       931,962       18,000       949,962  
Revenue, net     406,525       10,115,045       10,521,570       971,130       611,730       1,582,860  
Cost of goods sold     827,890       4,873,060       5,700,950       990,101       1,178,636       2,168,737  
Gross profit (loss)     (421,365 )     5,241,985       4,820,620       (18,971 )     (566,906 )     (585,877 )
Operating expenses:                                                
General and administration     1,626,861       7,151,618       8,778,479       2,843,754       4,553,430       7,397,184  
Sales and marketing     1,433,180       3,262,645       4,695,825       1,152,285       1,454,000       2,606,285  
Research and development     2,390,669       5,305,739       7,696,408       3,551,860       2,601,118       6,152,978  
Segment operating loss     (5,872,075 )     (10,478,017 )     (16,350,092 )     (7,566,870 )     (9,175,454 )     (16,742,324 )
Interest income     1,918      
-
       1,918       74,923               74,923  
Interest expense     (2,732,908 )     (172,308 )     (2,905,216 )     (7,500 )     (427,259 )     (434,759 )
Other segment items     (18,966 )     (330,769 )     (349,735 )     (33 )     586,383       586,350  
Segment loss before provision for income taxes   $ (8,622,031 )   $ (10,981,094 )   $ (19,603,125 )   $ (7,499,480 )   $ (9,016,330 )   $ (16,515,810 )
Corporate operating expenses    
-
      
-
       (3,209,450 )    
-
      
-
       (688,461 )
Elimination of intercompany interest    
-
      
-
       1,530,152      
-
      
-
       417,963  
Corporate interest income    
-
      
-
       449,228      
-
      
-
       109,854  
Corporate interest expense    
-
      
-
       (4,053,305 )    
-
      
-
       (1,469,366 )
Loss before income taxes    
-
      
-
     $ (24,886,500 )    
-
      
-
     $ (18,145,820 )

 

Additional segment information is set forth below as of and for the three and six months ended June 30, 2025 and 2024:

 

    Three Months Ended June 30, 2025     Three Months Ended June 30, 2024  
    Ondas
Networks		     OAS     Total     Ondas
Networks		     OAS     Total  
Depreciation and amortization   $ 67,397     $ 1,176,876     $ 1,244,273     $ 32,631     $ 1,131,980     $ 1,164,611  
Stock-based compensation   $ 425,066     $ 1,753,627     $ 2,178,693     $ 190,606     $ 217,391     $ 407,997  
Capital expenditures   $
-
     $ 95,826     $ 95,826     $ 592,562     $ 501,589     $ 1,094,151  

 

    Six Months Ended June 30, 2025     Six Months Ended June 30, 2024  
    Ondas
Networks		     OAS     Total     Ondas
Networks		     OAS     Total  
Total assets   $ 43,220,366     $ 108,730,440     $ 151,950,806     $ 12,648,854     $ 69,872,082     $ 82,520,936  
Goodwill   $
-
     $ 27,751,921     $ 27,751,921     $
-
     $ 27,751,921     $ 27,751,921  
Depreciation and amortization   $ 144,704     $ 2,342,147     $ 2,486,851     $ 57,731     $ 2,282,162     $ 2,339,893  
Stock-based compensation   $ 858,620     $ 2,892,718     $ 3,751,338     $ 328,094     $ 349,456     $ 677,550  
Capital expenditures   $
-
     $ 266,693     $ 266,693     $ 957,382     $ 1,324,855     $ 2,282,237