XML 30 R16.htm IDEA: XBRL DOCUMENT v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
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 and six months ended June 30, 2025 and 2024 are as follows: 

 

   Three Months Ended June 30, 2025   Three Months Ended June 30, 2024 
   Ondas
Networks		   OAS   Total   Ondas
Networks		   OAS   Total 
Product revenue  $
-
   $3,605,020   $3,605,020   $22,484   $
-
   $22,484 
Service and subscription revenue   7,018    2,488,909    2,495,927    
-
    298,553    298,553 
Development revenue   172,441    
-
    172,441    636,814    
-
    636,814 
Revenue, net   179,459    6,093,929    6,273,388    659,298    298,553    957,851 
Cost of goods sold   446,242    2,495,076    2,941,318    573,483    575,263    1,148,746 
Gross profit (loss)   (266,783)   3,598,853    3,332,070    85,815    (276,710)   (190,895)
Operating expenses:                              
General and administration   771,461    3,735,396    4,506,857    1,438,503    2,198,512    3,637,015 
Sales and marketing   684,186    1,581,529    2,265,715    505,828    792,877    1,298,705 
Research and development   1,167,418    3,069,510    4,236,928    1,613,699    1,026,304    2,640,003 
Segment operating loss   (2,889,848)   (4,787,582)   (7,677,430)   (3,472,215)   (4,294,403)   (7,766,618)
Interest income   1,783    
-
    1,783    12,360    
-
    12,360 
Interest expense   (1,755,280)   (88,209)   (1,843,489)   (3,750)   (235,921)   (239,671)
Other segment items   (17,954)   (172,920)   (190,874)        650,129    650,129 
Segment loss before provision for income taxes  $(4,661,299)  $(5,048,711)  $(9,710,010)  $(3,463,605)  $(3,880,195)  $(7,343,800)
Corporate operating expenses   
-
    
-
    (1,571,674)   
-
    
-
    (536,972)
Elimination of intercompany interest   
-
    
-
    1,267,893    
-
    
-
    228,988 
Corporate interest income   
-
    
-
    248,557    
-
    
-
    74,916 
Corporate interest expense   
-
    
-
    (984,916)   
-
    
-
    (692,868)
Loss before income taxes   
-
    
-
   $(10,750,150)   
-
    
-
   $(8,269,736)
   Six Months Ended June 30, 2025   Six Months Ended June 30, 2024 
   Ondas
Networks		   OAS   Total   Ondas
Networks		   OAS   Total 
Product revenue  $
-
   $6,828,993   $6,828,993   $24,758   $
-
   $24,758 
Service and subscription revenue   18,716    3,286,052    3,304,768    14,410    593,730    608,140 
Development revenue   387,809    
-
    387,809    931,962    18,000    949,962 
Revenue, net   406,525    10,115,045    10,521,570    971,130    611,730    1,582,860 
Cost of goods sold   827,890    4,873,060    5,700,950    990,101    1,178,636    2,168,737 
Gross profit (loss)   (421,365)   5,241,985    4,820,620    (18,971)   (566,906)   (585,877)
Operating expenses:                              
General and administration   1,626,861    7,151,618    8,778,479    2,843,754    4,553,430    7,397,184 
Sales and marketing   1,433,180    3,262,645    4,695,825    1,152,285    1,454,000    2,606,285 
Research and development   2,390,669    5,305,739    7,696,408    3,551,860    2,601,118    6,152,978 
Segment operating loss   (5,872,075)   (10,478,017)   (16,350,092)   (7,566,870)   (9,175,454)   (16,742,324)
Interest income   1,918    
-
    1,918    74,923         74,923 
Interest expense   (2,732,908)   (172,308)   (2,905,216)   (7,500)   (427,259)   (434,759)
Other segment items   (18,966)   (330,769)   (349,735)   (33)   586,383    586,350 
Segment loss before provision for income taxes  $(8,622,031)  $(10,981,094)  $(19,603,125)  $(7,499,480)  $(9,016,330)  $(16,515,810)
Corporate operating expenses   
-
    
-
    (3,209,450)   
-
    
-
    (688,461)
Elimination of intercompany interest   
-
    
-
    1,530,152    
-
    
-
    417,963 
Corporate interest income   
-
    
-
    449,228    
-
    
-
    109,854 
Corporate interest expense   
-
    
-
    (4,053,305)   
-
    
-
    (1,469,366)
Loss before income taxes   
-
    
-
   $(24,886,500)   
-
    
-
   $(18,145,820)

 

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

 

   Three Months Ended June 30, 2025   Three Months Ended June 30, 2024 
   Ondas
Networks		   OAS   Total   Ondas
Networks		   OAS   Total 
Depreciation and amortization  $67,397   $1,176,876   $1,244,273   $32,631   $1,131,980   $1,164,611 
Stock-based compensation  $425,066   $1,753,627   $2,178,693   $190,606   $217,391   $407,997 
Capital expenditures  $
-
   $95,826   $95,826   $592,562   $501,589   $1,094,151 

 

   Six Months Ended June 30, 2025   Six Months Ended June 30, 2024 
   Ondas
Networks		   OAS   Total   Ondas
Networks		   OAS   Total 
Total assets  $43,220,366   $108,730,440   $151,950,806   $12,648,854   $69,872,082   $82,520,936 
Goodwill  $
-
   $27,751,921   $27,751,921   $
-
   $27,751,921   $27,751,921 
Depreciation and amortization  $144,704   $2,342,147   $2,486,851   $57,731   $2,282,162   $2,339,893 
Stock-based compensation  $858,620   $2,892,718   $3,751,338   $328,094   $349,456   $677,550 
Capital expenditures  $
-
   $266,693   $266,693   $957,382   $1,324,855   $2,282,237