Ondas Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

A summary of financial assets and liabilities that are measured at fair value on a recurring basis is as follows:


	September 30, 2026
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents (money market funds)	$	169,532	$	-	$	-	$	169,532
Short-term investments
Publicly traded stock		19,008		-		-		19,008
U.S. Treasury securities		59,992		-		-		59,992
Fixed income (corporate fixed income and bonds, agency securities)		-		170,936		-		170,936
Certificates of deposit		-		274,895		-		274,895
Warrants in publicly traded companies		-		-		1,231		1,231
Total short-term investments		79,000		445,831		1,231		526,062
Equity investment in affiliate		-		-		30,288		30,288
Note receivable from affiliate		-		-		14,800		14,800
Total assets		248,532		445,831		46,319		740,682
Liabilities
Government grants		-		-		3,726		3,726
Warrant liabilities		-		-		918,632		918,632
Contingent consideration		-		-		248,472		248,472
Total liabilities	$	-	$	-	$	1,170,830	$	1,170,830


	December 31, 2025
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents (money market funds)	$	302,688	$	-	$	-	$	302,688
Short-term investments
Publicly traded stock		17,779		-		-		17,779
Warrants in publicly traded companies		-		-		1,123		1,123
Total assets		320,467		-		1,123		321,590

Liabilities
Government grants		-		-		3,657		3,657
Warrant liabilities		-		-		489,434		489,434
Total liabilities	$	-	$	-	$	493,091	$	493,091

Schedule of Investment Unrealized Gains and Losses to Reflect Fair Value


	As of September 30, 2026
(dollars in thousands)	Amortized cost basis		Gross unrealized gains		Gross unrealized losses			Fair Value
U.S. Treasury securities	$	60,069	$	-	$	(77	)	$	59,992
Fixed income (corporate fixed income and bonds, agency securities)		172,393		-		(1,457	)		170,936
Certificates of deposit		275,000		-		(105	)		274,895
Total	$	507,462	$	-	$	(1,639	)	$	505,823

Schedule of Investment Marketable Equity Securities

The following table summarizes the Company’s Level 3 investments in marketable equity securities:


	As of September 30, 2026
(dollars in thousands)	Fair Value Hierarchy	Cost Basis		Accumulated Net Unrealized Gains		Fair Value
Warrants exercisable for publicly traded stock	Level 3	$	706		525	$	1,231
Total		$	706		525	$	1,231

Schedule of Key Assumptions of Black-Scholes Model

For the nine months ended September 30, 2026, the key assumptions used in the Black-Scholes Model are as follows:


	As of September 30, 2026
Stock price	$	4.56
Risk-free interest rate		4.9	%
Expected volatility		116.3	%
Remaining contractual life in years		1.89
Dividend yield		0	%

The assumptions used to estimate the fair value of warrants during the period were as follows:


	Range			Weighted average
Risk-free interest rate		5	%		5	%
Expected volatility	94-95%				95	%
Expected life (in years)	6.0-6.3				6.2
Dividend yield		0	%	0%

Schedule of Warrant Asset Measured at Fair value

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	$	1,123
Warrants purchased, adjusted to fair value		-
Net unrealized gain on change in fair value		108
Balance as of September 30, 2026	$	1,231

The following table provides a reconciliation of the beginning and ending balances for the Level 3 warrant liabilities measured at fair value using significant unobservable inputs. There was no warrant liability activity during the three and nine months ended September 30, 2025.


(dollars in thousands)	Warrant liability
Balance as of January 1, 2026	$	489,434
Fair value of warrant liability issued during the period		1,194,019
Change in fair value of warrant liability		(764,821	)
Balance as of September 30, 2026	$	918,632

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		230,089
Milestone liabilities acquired at fair value		25,421
Changes in fair value recognized in earnings		22,743
Payments		(29,781	)
Balance as of September 30, 2026	$	248,472

Schedule of Liability Measured at Fair Value of Unobservable Inputs

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	$	3,657
Government grant liability acquired in Bird Aerosystems Ltd. acquisition		58
Payments made		(434	)
Effect of foreign currency translation		39
Net loss on change in fair value of liability		406
Balance as of September 30, 2026	$	3,726

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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