| SEGMENT INFORMATION |
NOTE 15 – 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):
| |
|
2025 |
|
|
2024 |
|
| (dollars
in thousands) |
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
| Product revenue |
|
$ |
193 |
|
|
$ |
34,390 |
|
|
$ |
34,583 |
|
|
$ |
26 |
|
|
$ |
2,770 |
|
|
$ |
2,796 |
|
| Service and subscription revenue |
|
|
23 |
|
|
|
10,218 |
|
|
|
10,241 |
|
|
|
34 |
|
|
|
2,458 |
|
|
|
2,492 |
|
| Development revenue |
|
|
764 |
|
|
|
5,143 |
|
|
|
5,907 |
|
|
|
1,872 |
|
|
|
33 |
|
|
|
1,905 |
|
| Revenue, net |
|
|
980 |
|
|
|
49,751 |
|
|
|
50,731 |
|
|
|
1,932 |
|
|
|
5,261 |
|
|
|
7,193 |
|
| Cost of goods sold |
|
|
2,410 |
|
|
|
28,165 |
|
|
|
30,575 |
|
|
|
2,291 |
|
|
|
4,557 |
|
|
|
6,848 |
|
| Gross profit (loss) |
|
|
(1,430 |
) |
|
|
21,586 |
|
|
|
20,156 |
|
|
|
(359 |
) |
|
|
704 |
|
|
|
345 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administration |
|
|
2,781 |
|
|
|
24,453 |
|
|
|
27,234 |
|
|
|
5,261 |
|
|
|
10,360 |
|
|
|
15,621 |
|
| Sales and marketing |
|
|
3,161 |
|
|
|
9,838 |
|
|
|
12,999 |
|
|
|
2,209 |
|
|
|
3,101 |
|
|
|
5,310 |
|
| Research and development |
|
|
5,260 |
|
|
|
15,619 |
|
|
|
20,879 |
|
|
|
5,882 |
|
|
|
6,595 |
|
|
|
12,477 |
|
| Segment operating loss |
|
|
(12,632 |
) |
|
|
(28,324 |
) |
|
|
(40,956 |
) |
|
|
(13,711 |
) |
|
|
(19,352 |
) |
|
|
(33,063 |
) |
| Interest income |
|
|
15 |
|
|
|
12 |
|
|
|
27 |
|
|
|
75 |
|
|
|
- |
|
|
|
75 |
|
| Interest expense |
|
|
(6,813 |
) |
|
|
(1,294 |
) |
|
|
(8,107 |
) |
|
|
(632 |
) |
|
|
(677 |
) |
|
|
(1,309 |
) |
| Other segment items |
|
|
(24 |
) |
|
|
(196 |
) |
|
|
(220 |
) |
|
|
(29 |
) |
|
|
16 |
|
|
|
(13 |
) |
| Segment loss before provision for income taxes |
|
$ |
(19,454 |
) |
|
$ |
(29,802 |
) |
|
$ |
(49,256 |
) |
|
$ |
(14,297 |
) |
|
$ |
(20,013 |
) |
|
$ |
(34,310 |
) |
| Corporate operating loss |
|
|
- |
|
|
|
- |
|
|
|
(17,428 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,546 |
) |
| Elimination of intercompany interest |
|
|
- |
|
|
|
- |
|
|
|
5,594 |
|
|
|
- |
|
|
|
- |
|
|
|
606 |
|
| Corporate unrealized gain on investments |
|
|
- |
|
|
|
- |
|
|
|
5,400 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Corporate change in fair value of warrant liability, net |
|
|
- |
|
|
|
- |
|
|
|
(82,225 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Corporate interest income |
|
|
- |
|
|
|
- |
|
|
|
9,085 |
|
|
|
- |
|
|
|
- |
|
|
|
160 |
|
| Corporate interest expense |
|
|
- |
|
|
|
- |
|
|
|
(4,062 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,917 |
) |
| Income (Loss) before income taxes |
|
|
- |
|
|
|
- |
|
|
$ |
(132,892 |
) |
|
|
- |
|
|
|
- |
|
|
$ |
(38,007 |
) |
Additional segment information is set forth below
as of and for the year ending December 31,
| |
|
2025 |
|
|
2024 |
|
| (dollars
in thousands) |
|
Ondas
Networks |
|
|
OAS |
|
|
Corporate |
|
|
Total |
|
|
Ondas
Networks |
|
|
OAS |
|
|
Corporate |
|
|
Total |
|
| Total assets |
|
$ |
8,983 |
|
|
$ |
510,478 |
|
|
$ |
613,380 |
|
|
$ |
1,132,841 |
|
|
$ |
10,158 |
|
|
$ |
71,186 |
|
|
$ |
28,278 |
|
|
$ |
109,622 |
|
| Goodwill |
|
$ |
- |
|
|
$ |
251,809 |
|
|
$ |
- |
|
|
$ |
251,809 |
|
|
$ |
- |
|
|
$ |
27,752 |
|
|
$ |
- |
|
|
$ |
27,752 |
|
| Depreciation and amortization |
|
$ |
283 |
|
|
$ |
6,471 |
|
|
$ |
- |
|
|
$ |
6,754 |
|
|
$ |
211 |
|
|
$ |
4,611 |
|
|
$ |
- |
|
|
$ |
4,822 |
|
| Stock-based compensation |
|
$ |
220 |
|
|
$ |
10,398 |
|
|
$ |
5,398 |
|
|
$ |
16,016 |
|
|
$ |
397 |
|
|
$ |
462 |
|
|
$ |
406 |
|
|
$ |
1,265 |
|
| Capital expenditures |
|
$ |
4 |
|
|
$ |
1,996 |
|
|
$ |
34 |
|
|
$ |
2,034 |
|
|
$ |
1,042 |
|
|
$ |
594 |
|
|
$ |
- |
|
|
$ |
1,636 |
|
|