Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Information [Abstract]  
SEGMENT INFORMATION

NOTE 13 – 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, 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 nine months ended September 30, 2025 and 2024 are as follows: 

 

    Three Months Ended September 30, 2025     Three Months Ended September 30, 2024  
    Ondas
Networks		     OAS     Total     Ondas
Networks		     OAS     Total  
Product revenue   $ 16,611     $ 5,427,787     $ 5,444,398     $ 924     $ 149,744     $ 150,668  
Service and subscription revenue     2,340       4,589,006       4,591,346       1,987       885,760       887,747  
Development revenue     62,566      
-
       62,566       442,377      
-
       442,377  
Revenue, net     81,517       10,016,793       10,098,310       445,288       1,035,504       1,480,792  
Cost of goods sold     408,242       7,085,673       7,493,915       525,673       907,559       1,433,232  
Gross profit (loss)     (326,725 )     2,931,120       2,604,395       (80,385 )     127,945       47,560  
Operating expenses:                                                
General and administrative     376,173       3,788,092       4,164,265       1,329,241       2,540,452       3,869,693  
Sales and marketing     834,051       2,037,162       2,871,213       537,169       873,775       1,410,944  
Research and development     1,290,435       3,222,321       4,512,756       1,293,661       1,888,684       3,182,345  
Segment operating loss     (2,827,384 )     (6,116,455 )     (8,943,839 )     (3,240,456 )     (5,174,966 )     (8,415,422 )
Interest income     12,511       3,211       15,722       49       95,609       95,658  
Interest expense     (1,319,806 )     (123,387 )     (1,443,193 )     (137,092 )     (296,517 )     (433,609 )
Other segment items     (3,446 )     (107,506 )     (110,952 )     (2,067 )     (113,759 )     (115,826 )
Segment loss before provision for income taxes   $ (4,138,125 )   $ (6,344,137 )   $ (10,482,262 )   $ (3,379,566 )   $ (5,489,633 )   $ (8,869,199 )
Corporate operating expenses    
-
      
-
       (6,559,711 )    
-
      
-
       (245,293 )
Elimination of intercompany interest    
-
      
-
       1,007,590      
-
      
-
       191,757  
Corporate unrealized gain on investments    
-
      
-
       6,893,277      
-
      
-
      
-
  
Corporate interest income    
-
      
-
       1,976,552      
-
      
-
       25,950  
Corporate interest expense    
-
      
-
       (8,846 )    
-
      
-
       (629,483 )
Loss before income taxes    
-
      
-
     $ (7,173,400 )    
-
      
-
     $ (9,526,268 )
    Nine Months Ended September 30, 2025     Nine Months Ended September 30, 2024  
    Ondas
Networks		     OAS     Total     Ondas
Networks		     OAS     Total  
Product revenue   $ 16,611     $ 12,256,780     $ 12,273,391     $ 25,682     $ 149,744     $ 175,426  
Service and subscription revenue     21,056       7,875,058       7,896,114       16,397       1,479,490       1,495,887  
Development revenue     450,375      
-
       450,375       1,374,339       18,000       1,392,339  
Revenue, net     488,042       20,131,838       20,619,880       1,416,418       1,647,234       3,063,652  
Cost of goods sold     1,236,132       11,958,733       13,194,865       1,515,774       2,086,195       3,601,969  
Gross profit (loss)     (748,090 )     8,173,105       7,425,015       (99,356 )     (438,961 )     (538,317 )
Operating expenses:                                                
General and administrative     2,003,034       10,939,710       12,942,744       4,172,995       7,093,882       11,266,877  
Sales and marketing     2,267,231       5,299,807       7,567,038       1,689,454       2,327,775       4,017,229  
Research and development     3,681,104       8,528,060       12,209,164       4,845,521       4,489,802       9,335,323  
Segment operating loss     (8,699,459 )     (16,594,472 )     (25,293,931 )     (10,807,326 )     (14,350,420 )     (25,157,746 )
Interest income     14,429       3,211       17,640       74,972       95,609       170,581  
Interest expense     (4,052,714 )     (295,695 )     (4,348,409 )     (144,592 )     (723,776 )     (868,368 )
Other segment items     (22,412 )     (438,275 )     (460,687 )     (2,100 )     472,624       470,524  
Segment loss before provision for income taxes   $ (12,760,156 )   $ (17,325,231 )   $ (30,085,387 )   $ (10,879,046 )   $ (14,505,963 )   $ (25,385,009 )
Corporate operating expenses    
-
      
-
       (9,769,161 )    
-
      
-
       (933,754 )
Elimination of intercompany interest    
-
      
-
       2,537,742      
-
      
-
       609,720  
Corporate unrealized gain on investments                     6,893,277                      
-
  
Corporate interest income    
-
      
-
       2,425,780      
-
      
-
       135,804  
Corporate interest expense    
-
      
-
       (4,062,151 )    
-
      
-
       (2,098,849 )
Loss before income taxes    
-
      
-
     $ (32,059,900 )    
-
      
-
     $ (27,672,088 )

 

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

 

    Three Months Ended September 30, 2025     Three Months Ended September 30, 2024  
    Ondas
Networks		     OAS     Corporate     Total     Ondas
Networks		     OAS     Corporate     Total  
Depreciation and amortization   $ 66,485     $ 1,216,161     $
-
     $ 1,282,646     $ 78,462     $ 1,168,011     $
-
     $ 1,246,473  
Stock-based compensation   $ 28,739     $ 1,856,777     $ 3,574,059     $ 5,459,575     $ 94,513     $ 106,488     $ 110,132     $ 311,133  
Capital expenditures   $ 4,189     $ 166,403     $
-
     $ 170,592     $ 100,650     $ 158,736     $
-
     $ 259,386  

 

    Nine Months Ended September 30, 2025     Nine Months Ended September 30, 2024  
    Ondas
Networks		     OAS     Corporate     Total     Ondas
Networks		     OAS     Corporate     Total  
Total assets   $ 10,255,727     $ 98,814,143     $ 441,080,699     $ 550,150,569     $ 10,207,221     $ 67,709,703     $ 2,241,732     $ 80,158,656  
Goodwill   $
-
     $ 34,773,934     $
-
     $ 34,773,934     $
-
     $ 27,751,921     $
-
     $ 27,751,921  
Depreciation and amortization   $ 211,188     $ 3,558,322     $
-
     $ 3,769,510     $ 136,193     $ 3,450,173     $
-
     $ 3,586,366  
Stock-based compensation   $ 186,801     $ 4,048,938     $ 4,975,174     $ 9,210,913     $ 317,241     $ 350,578     $ 320,864     $ 988,683  
Capital expenditures   $ 4,189     $ 433,109     $
-
     $ 437,298     $ 1,058,032     $ 548,326     $
-
     $ 1,606,358