Ondas Holdings Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of inventory

		September 30, 2020				December 31, 2019
Raw Material		$	784,297			$	372,101
Work in Process			116,709				-
Finished Goods			73,994				55,415
TOTAL INVENTORY		$	975,000			$	427,516

		Years Ended December 31,
		2019				2018
Raw material		$	372,101			$	307,947
Finished goods			55,415				39,998
Total inventory		$	427,516			$	347,945

Schedule of changes in fair value associated with level 3 liabilities

		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Nine Months Ended September 30, 2020				Year ended December 31, 2019

Balance, beginning of period		$	-			$	-
Issuances of derivative liability			(32,906	)			-
Change in fair value of derivative liability			(136,323	)			-
Balance, end of period		$	(169,229	)		$	-

		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		December 31,
		2019				2018
Balance, beginning of period		$	-			$	(166,093	)
Issuances of derivative liability			-				-
Reclassification to additional paid in capital			-				1,141,995
Change in fair value of derivative liability			-				(975,902	)
Balance, end of period		$	-			$	-

Schedule of disaggregation of revenue

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Type of Revenue
Product revenue		$	245,075			$	61,182			$	1,043,585			$	212,905
Service revenue			16,410				26,950				53,500				100,459
Development revenue			351,248				-				866,119				-
Other revenue			1,293				-				6,394				219
Total revenue		$	614,026			$	88,132			$	1,969,598			$	313,583

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Timing of Revenue
Revenue recognized point in time		$	331,528			$	79,166			$	1,170,409			$	281,333
Revenue recognized over time			282,498				8,966				799,189				32,250
Total revenue		$	614,026			$	88,132			$	1,969,598			$	313,583

		Years Ended December 31,
		2019				2018
Type of Revenue
Product revenue		$	212,905			$	125,664
Service revenue			107,478				64,365
Total revenue		$	320,383			$	190,029

		Years Ended December 31,
		2019				2018
Timing of Revenue
Revenue recognized point in time		$	281,333			$	147,863
Revenue recognized over time			39,050				42,166
Total revenue		$	320,383			$	190,029

Schedule of deferred warranty activity

		Nine Months Ended September 30, 2020				Year Ended December 31, 2019
Balance at beginning of period		$	378,850			$	20,631
Additions			1,046,250				397,269
Transfer to revenue			(1,115,882	)			(39,050	)
Balance at end of period		$	309,218			$	378,850

		Years Ended December 31,
		2019				2018
Balance, beginning of year		$	20,631			$	30,690
Additions			20,826				32,106
Transfer to revenue			(39,050	)			(42,166	)
Balance, end of year		$	2,467			$	20,631

Schedule of lease costs

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Components of total lease costs:
Operating lease expense		$	80,725			$	148,922			$	246,680			$	445,148
Short-term lease costs ⁽¹⁾			2,100				11,122				7,650				38,626
Sublease rental income			(20,245	)			-				(70,858	)			-
Total lease costs		$	62,580			$	160,044			$	183,472			$	483,774

⁽¹⁾	Represents short-term leases which are immaterial.

		Year ended December 31, 2019
Components of total lease costs:
Operating lease expense		$	593,707
Short-term lease costs ⁽¹⁾			46,575
Total lease costs		$	640,282

Schedule of ROU lease assets and lease liabilities

		As of September 30, 2020				As of December 31, 2019
Assets:
Operating lease assets		$	125,258			$	331,419
Total lease assets		$	125,258			$	331,419

Liabilities:
Operating lease liabilities, current		$	183,995			$	489,407
Operating lease liabilities, net of current			-				52,449
Total lease liabilities		$	183,995			$	541,856

		As of December 31, 2019
Assets:
Operating lease assets		$	331,419
Total lease assets		$	331,419

Liabilities:
Operating lease liabilities, current		$	489,406
Operating lease liabilities, net of current			52,449
Total lease liabilities		$	541,855

Schedule of operating leases

		Nine Months Ended September 30,
		2020				2019
Operating cash flows for operating leases		$	398,374			$	340,044
Weighted average remaining lease term (in years) – operating lease			0.4				2.3
Weighted average discount rate – operating lease			14	%			14	%

		Year ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	570,568

Schedule of future minimum lease payments

Years ending December 31,
2020 (3 months)		$	132,791
2021			57,153
Total future minimum lease payments			189,944
Lease imputed interest			(5,949	)
Total		$	183,995

Years ending December 31,
2020		$	531,166
2021			57,153
Thereafter			-
Total future minimum lease payments			588,319
Lease imputed interest			(46,464	)
Total		$	541,855

Schedule of EPS computations

		Three Months Ended September 30,								Nine Months ended September 30,
NUMERATOR:		2020				2019				2020				2019
Basic and diluted - net		$	(3,325,880	)		$	(5,225,314	)		$	(9,353,706	)		$	(16,135,767	)

DENOMINATOR:
Weighted average number of shares of common stock outstanding			19,756,465				16,910,643				19,756,175				16,851,371
Weighted average number of shares of common stock underlying vested restricted stock units			240,863				50,396				141,418				34,486
Weighted average number of shares of common stock underlying shares issuable for warrants with minimal consideration			46,893				1,529				46,892				515
Basic EPS – weighted average number of shares outstanding			20,044,221				16,962,568				19,944,485				16,886,372
Effect of dilutive securities outstanding			-				-				-				-
Diluted EPS – weighted average number of shares outstanding			20,044,221				16,962,568				19,944,485				16,886,372

		Years Ended December 31,
		2019				2018
Warrants to purchase common stock			1,590,535				-
Options to purchase common stock			225,001				-
Restricted stock purchase offers			163,950				-
Convertible debt			-				46,893
Total potentially dilutive securities			1,979,486				46,893

Schedule of potentially dilutive securities excluded from the computation of diluted net loss per share

		Nine months ended September 30,
		2020				2019
Warrants to purchase common stock			1,879,785				-
Options to purchase common stock			499,674				-
Restricted stock units			750,000				63,080
Convertible debt			-				46,893
Total potentially dilutive securities			3,129,459				109,973

Schedule of concentration of customers

		Three Months Ended September 30,								Nine Months Ended September 30,
Customer		2020				2019				2020				2019
A			29	%			-	%			51	%			-	%
B			58	%			-	%			44	%			-	%
C			13	%			-	%			-	%			-	%
D			-	%			-	%			-	%			44	%
E			-	%			85	%			-	%			36	%
F			-	%			-	%			-	%			18	%

		Years Ended December 31,
Customer		2019				2018
A			45	%			17	%
B			18	%			76	%
C			36	%			0	%

Schedule of lease terms and discount rate

Weighted average remaining lease term (in years) – operating lease			1.1
Weighted average discount rate – operating lease			14	%