Successfully drove early adoption of proprietary wireless connectivity solutions in rail and drone markets
Completed $34.5 million public offering and Nasdaq listing, providing financial foundation for growth
NANTUCKET, Mass. — (BUSINESS WIRE) — March 8, 2021 — Ondas Holdings Inc. (NASDAQ: ONDS), a developer of proprietary, software-based wireless broadband technology for large established and emerging industrial markets (“Ondas” or the “Company”), today announced financial and operating results for the full year ended December 31, 2020.
Ondas made tremendous strides in 2020, successfully driving wider commercial adoption of its proprietary wireless connectivity solutions for industrial internet applications and Mission-Critical IoT (“MC-IoT”) in two of the Company’s core markets – commercial rail and unmanned aerial systems (UAS). In addition, with $31.3 million in net proceeds from its follow-on public offering in December, the Company substantially strengthened its balance sheet, ending the year better positioned to support its long-term growth initiatives and investments.
“2020 was truly a break-out year for Ondas, starting with the announcement of a significant strategic partnership with Siemens Mobility (‘Siemens’) to bring our game-changing wireless technology to the North American Rail Market,” said Eric Brock, Ondas’ Chairman and CEO. “We also delivered the initial phase to Aura Network Systems (‘Aura’) of a groundbreaking wide-area network intended to offer drone navigation capabilities to UAS operators. These key business development successes were capped off by a public offering and Nasdaq listing in December, which affords us the flexibility to continue executing our ambitious growth strategy and realize the full potential of Ondas’ transformative wireless broadband technology in large legacy and emerging infrastructure markets.”
Full Year 2020 & Recent Highlights
- 2020 revenues increased 575%, primarily driven by Ondas’ strategic partnership with Siemens in the North American Rail Market and the delivery of the first phase network for Aura, our nationwide US drone customer.
- We are now completing, on schedule, the first major product development program with Siemens to combine Siemens’ ATCS protocols with Ondas’ MC-IoT technology in the greenfield 900 MHz licensed band.
- Siemens is in the final stages of launching Airlink, a Siemens-branded version of Ondas’ MC-IoT technology for the North American Rail market. The initial focus of this product line will be the nationwide 900 MHz network, which the US Federal Communications Commission (FCC) awarded to Class 1 Rails operators in August 2020.
- In February 2021, Ondas and Siemens began work on a new product for global Rail markets, the development of which is expected to be completed by the end of 2021.
- Also, in February 2021, Ondas entered into a strategic partnership with Rogue Industries to advance the adoption of Ondas’ MC-IoT platform in US government and defense markets.
- In March 2021, Aura ordered the next phase of the joint-development program with Ondas to begin commercialization of the previously mentioned UAS wireless navigation system.
Full Year 2020 Financial Highlights
Revenues for the year ended 2020 were $2.2 million, an increase of $1.8 million, or 575%, compared to 2019. The revenue increase was driven primarily by Ondas’ joint development program with Siemens in the North American Rail Market and the phase-one buildout of the UAS navigation network with strategic partner Aura.
Operating expenses decreased $3.2 million, or 20%, mainly due to expense reductions in payroll, travel and entertainment, and professional services.
As a result of increased revenue and lower operating expenses, the Company’s net loss decreased approximately $5.9 million to approximately $13.5 million for the year ended December 31, 2020, compared with approximately $19.4 million for the year ended December 31, 2019. Diluted net loss per share was ($0.66) for the year ended December 31, 2020, compared to ($1.10) per share for the year ended December 31, 2019.
Results of Operations |
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Year ended December 31, |
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($ in 000s) |
|
2020 |
|
|
2019 |
|
|
Increase/ (Decrease) |
|
|||
Revenue |
|
$ |
2,164 |
|
|
$ |
320 |
|
|
$ |
1,844 |
|
Cost of sales |
|
|
1,236 |
|
|
|
79 |
|
|
|
1,157 |
|
Gross profit |
|
|
928 |
|
|
|
241 |
|
|
|
687 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
7,642 |
|
|
|
4,793 |
|
|
|
2,849 |
|
Sales and marketing |
|
|
1,224 |
|
|
|
5,404 |
|
|
|
(4,180 |
) |
Research and development |
|
|
3,586 |
|
|
|
5,416 |
|
|
|
(1,830 |
) |
Total operating expense |
|
|
12,452 |
|
|
|
15,613 |
|
|
|
(3,161) |
|
Operating loss |
|
|
(11,524 |
) |
|
|
(15,372 |
) |
|
|
(3,848 |
) |
Other income (expense) |
|
|
(1,954 |
) |
|
|
(4,018 |
) |
|
|
(1,817 |
) |
Net loss |
|
$ |
(13,478 |
) |
|
$ |
(19,390 |
) |
|
$ |
(5,912 |
) |