| 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 months ended March 31, 2025 and 2024 are as follows:
| |
|
Three Months Ended March 31, 2025 |
|
|
Three Months Ended March 31, 2024 |
|
| |
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
| Product revenue |
|
$ |
- |
|
|
$ |
3,223,973 |
|
|
$ |
3,223,973 |
|
|
$ |
2,274 |
|
|
$ |
- |
|
|
$ |
2,274 |
|
| Service and subscription revenue |
|
|
11,698 |
|
|
|
797,143 |
|
|
|
808,841 |
|
|
|
14,410 |
|
|
|
295,177 |
|
|
|
309,587 |
|
| Development revenue |
|
|
215,368 |
|
|
|
- |
|
|
|
215,368 |
|
|
|
295,148 |
|
|
|
18,000 |
|
|
|
313,148 |
|
| Revenue, net |
|
|
227,066 |
|
|
|
4,021,116 |
|
|
|
4,248,182 |
|
|
|
311,832 |
|
|
|
313,177 |
|
|
|
625,009 |
|
| Cost of goods sold |
|
|
381,648 |
|
|
|
2,377,984 |
|
|
|
2,759,632 |
|
|
|
416,618 |
|
|
|
603,373 |
|
|
|
1,019,991 |
|
| Gross profit (loss) |
|
|
(154,582 |
) |
|
|
1,643,132 |
|
|
|
1,488,550 |
|
|
|
(104,786 |
) |
|
|
(290,196 |
) |
|
|
(394,982 |
) |
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administration |
|
|
855,400 |
|
|
|
3,416,222 |
|
|
|
4,271,622 |
|
|
|
1,405,251 |
|
|
|
2,354,918 |
|
|
|
3,760,169 |
|
| Sales and marketing |
|
|
748,994 |
|
|
|
1,681,116 |
|
|
|
2,430,110 |
|
|
|
646,457 |
|
|
|
661,123 |
|
|
|
1,307,580 |
|
| Research and development |
|
|
1,223,251 |
|
|
|
2,236,229 |
|
|
|
3,459,480 |
|
|
|
1,938,161 |
|
|
|
1,574,814 |
|
|
|
3,512,975 |
|
| Segment operating loss |
|
|
(2,982,227 |
) |
|
|
(5,690,435 |
) |
|
|
(8,672,662 |
) |
|
|
(4,094,655 |
) |
|
|
(4,881,051 |
) |
|
|
(8,975,706 |
) |
| Interest income |
|
|
135 |
|
|
|
- |
|
|
|
135 |
|
|
|
62,563 |
|
|
|
- |
|
|
|
62,563 |
|
| Interest expense |
|
|
(977,628 |
) |
|
|
(84,099 |
) |
|
|
(1,061,727 |
) |
|
|
(3,750 |
) |
|
|
(191,338 |
) |
|
|
(195,088 |
) |
| Other segment items |
|
|
(1,012 |
) |
|
|
(157,849 |
) |
|
|
(158,861 |
) |
|
|
(33 |
) |
|
|
(63,746 |
) |
|
|
(63,779 |
) |
| Segment loss before provision for income taxes |
|
$ |
(3,960,732 |
) |
|
$ |
(5,932,383 |
) |
|
$ |
(9,893,115 |
) |
|
$ |
(4,035,875 |
) |
|
$ |
(5,136,135 |
) |
|
$ |
(9,172,010 |
) |
| Corporate operating expenses |
|
|
- |
|
|
|
- |
|
|
|
(1,637,776 |
) |
|
|
- |
|
|
|
- |
|
|
|
(151,489 |
) |
| Elimination of intercompany interest |
|
|
- |
|
|
|
- |
|
|
|
262,259 |
|
|
|
- |
|
|
|
- |
|
|
|
188,975 |
|
| Corporate interest income |
|
|
- |
|
|
|
- |
|
|
|
200,671 |
|
|
|
- |
|
|
|
- |
|
|
|
34,938 |
|
| Corporate interest expense |
|
|
- |
|
|
|
- |
|
|
|
(3,068,389 |
) |
|
|
- |
|
|
|
- |
|
|
|
(776,498 |
) |
| Loss before income taxes |
|
|
- |
|
|
|
- |
|
|
$ |
(14,136,350 |
) |
|
|
- |
|
|
|
- |
|
|
$ |
(9,876,084 |
) |
Additional segment information is set forth below
as of and for the three months ended March 31, 2025 and 2024:
| |
|
Three Months Ended March 31, 2025 |
|
|
Three Months Ended March 31, 2024 |
|
| |
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
|
Ondas
Networks |
|
|
OAS |
|
|
Total |
|
| Total assets |
|
$ |
20,099,848 |
|
|
$ |
84,500,791 |
|
|
$ |
104,600,639 |
|
|
$ |
18,965,402 |
|
|
$ |
72,650,122 |
|
|
$ |
91,615,524 |
|
| Goodwill |
|
$ |
- |
|
|
$ |
27,751,921 |
|
|
$ |
27,751,921 |
|
|
$ |
- |
|
|
$ |
27,751,921 |
|
|
$ |
27,751,921 |
|
| Depreciation and amortization |
|
$ |
77,307 |
|
|
$ |
1,165,271 |
|
|
$ |
1,242,578 |
|
|
$ |
25,100 |
|
|
$ |
1,150,182 |
|
|
$ |
1,175,282 |
|
| Stock-based compensation |
|
$ |
433,554 |
|
|
$ |
1,139,091 |
|
|
$ |
1,572,645 |
|
|
$ |
137,488 |
|
|
$ |
132,065 |
|
|
$ |
269,553 |
|
| Capital expenditures |
|
$ |
- |
|
|
$ |
170,867 |
|
|
$ |
170,867 |
|
|
$ |
364,820 |
|
|
$ |
823,266 |
|
|
$ |
1,188,086 |
|
|