Ondas Inc · NASDAQ:ONDS
Ondas — Q2 2023 Earnings Presentation
24 slides from Ondas's earnings presentation, August 2023
Slide 1: Second Quarter 2023 Earnings Release
Second Quarter 2023 Earnings Release Nasdaq : ONDS NASDAQ: ONDS | August 2023 Copyright 2023. All rights reserved.
Slide 2: Disclaimer
Nasdaq: ONDS Disclaimer This presentation may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should,
Slide 3: Non-GAAP Financial Measure
Nasdaq: ONDS Non-GAAP Financial Measure As required by the rules of the Securities and Exchange Commission (“SEC”), we provide a reconciliation of EBITDA, the non-GAAP financial measure, contained in this presentation to the most directly comparable measure under GAAP, which reconciliation is set fo
Slide 4: Leadership Team
Nasdaq: ONDS Leadership Team ERIC BROCK DEREK REISFIELD MEIR KLINER STEWART KANTOR CHAIRMAN & CEO CFO PRESIDENT PRESIDENT & CFO Eric is an entrepreneur with over 25 Derek is an experienced executive Meir is an entrepreneur with over 20 Stewart brings over 20 years of years of management and investin
Slide 5: Agenda
Nasdaq: ONDS Agenda Ondas on track for a breakout 2023 • Introduction • Financial Review & Outlook • Business Update • Ondas Networks • Ondas Autonomous Systems (OAS) • Closing Remarks • Q&A 5
Slide 6: Introduction
Nasdaq: ONDS Introduction Record revenue signals strong start to 2023 • $5.5M revenue delivered in Q2; $8.1M revenue year-to-date • Strengthened balance sheet with $25M in growth capital raised from private and institutional investors • Field activity with Class I rails advanced; pipeline is growing
Slide 7: Balance Sheet Fortified
Nasdaq: ONDS Balance Sheet Fortified C&P INVESTMENT PROVIDES GROWTH Ondas secured $25 million in growth capital from CAPITAL AND VALIDATION FROM A private and institutional investors SOPHISTICATED, STRATEGIC INVESTOR GROUP • C&P Group led $15 million investment in Ondas Networks via Convertible Pref
Slide 8: Financial Review
Nasdaq: ONDS Financial Review Q2 2023 KEY FINANCIAL INSIGHTS: • P&L reflects early stage of initial platform SELECT P&L DATA Three Months Ended June 30, adoption for Ondas Networks and OAS (Unaudited) 2023 2022 Revenues, net $ 5,468,964 $ 604,219 • Record revenue in both business units Cost of goods
Slide 9: Financial Review
Nasdaq: ONDS Financial Review Select Cashflow Data – 1H 2023 KEY FINANCIAL INSIGHTS: • Pro forma cash balance of $27.1 million SELECT CASH FLOW DATA Six Months Ended June 30, 2023 2022 adjusted for recent financings (Unaudited) • Cash burn reflects: Net cash flows used in operating activities $ (21,
Slide 10: Pro Forma Balance Sheet
Nasdaq: ONDS Pro Forma Balance Sheet Adjusted for Recent Financings KEY FINANCIAL INSIGHTS: • Balance sheet fortified by new investment at ACTUAL AS ADJUSTED (Unaudited) Ondas Holdings and Ondas Networks June 30, 2023 June 30, 2023 • Minority interest represents C&P Group approximate 28% ownership o
Slide 11: Financial Outlook
Nasdaq: ONDS Financial Outlook Continue to see significant growth in 2023 and beyond LIQUIDITY OUTLOOK: • Strong multi-year growth expected as • Slower production ramp at Ondas Networks will result in shortfall platform adoption curves inflect higher relative to earlier targets, due to: • $25 millio
Slide 12: Business Unit Review
BUSINESS UNIT REVIEW ONDAS ONDAS
Slide 13: Ondas Networks
ONDAS
Slide 14: 900 MHz Migration in Motion
Nasdaq: ONDS 900 MHz Migration in Motion The dot16 adoption cycle starting in Rail and 900 MHz RAILROADS BEGIN 900 MHz LAUNCH $1.5 MILLION RECORD CLASS I RAILS MOMENTUM VOLUME BUILDING Engaged in field activity to Generated record revenue Record volume shipments to Industry momentum building support
Slide 15: Preparing for 900 MHz upgrade
Nasdaq: ONDS Preparing for 900 MHz upgrade 2025 deadlines support expected order ramp • Ondas and Siemens engaged in field and purchasing groups • Rail operations teams (e.g., C&S groups) with budgets and responsibility for network operations • Initial deployments focused on critical network and hig
Slide 16: Outlook for Ondas Networks
Nasdaq: ONDS Outlook for Ondas Networks Production ramp accelerates; tracking major orders for 900 MHz New photo • Grow revenue and orders • Production will accelerate again with working capital and supply chain improvements • Contract manufacturer partner now engaged to scale • Plan to secure major
Slide 17: Autonomous Systems
AUTONOMOUS SYSTEMS IRS AR AMERICAN AIRGBOTICS NE ROBOTICS
Slide 18: Customer & Financial Activity
Nasdaq: ONDS Customer & Financial Activity Significant revenue ramp demonstrates 2023 projected growth • Revenue growth commences • Delivered $4.0M revenue in Q2 • Expect growth through 2023 and into 2024 via continued fleet expansion and addition of new customers • Fleet strategy scaling in The Gul
Slide 19: Strategic Activity
Nasdaq: ONDS Strategic Activity Advancing Product & Ecosystem GAINING TRACTION IN UNITED STATES • MassDOT POC expected to lead to permanent • FAA Type Certification advancing; supports scaling with customers globally installations • Received noise certification approval for Airobotics Optimus-1EX dr
Slide 20: Outlook for OAS
Nasdaq: ONDS Outlook for OAS Revenue ramp continues; on track to achieve 2023 objectives • Grow revenue and orders • Continue to deliver on fleet deployments in UAE; expect to announce additional orders in 2023 • Expect to announce additional milestones relating to U.S. expansion of Optimus and Iron
Slide 21: Closing – Record Year Ahead
Nasdaq: ONDS Closing – Record Year Ahead Leverage winner-take-most platforms • Ondas is beginning to monetize the significant investments in FullMAX(TM) and Optimus platforms • Activity with Siemens and Class I Rails highlights improved visibility around customer adoption and deployment timelines •
Slide 22: Q&A
Q&A Nasdaq : ONDS Second Quarter 2023 Earnings Release | August 2023 Copyright 2023. All rights reserved.
Slide 23: Appendix
Nasdaq: ONDS Appendix EBITDA RECONCILIATION: Three Months Ended June 30, Six Months Ended June 30, (Unaudited) 2023 2022 2023 2022 Net loss $ (8,958,086) $ (11,391,425) $ (23,413,637) $ (21,401,824) Depreciation expense 160,081 87,402 412,625 127,036 Amortization of debt discount/interest expense 46
Slide 24: Thank You
Nasdaq: ONDS THANK YOU NASDAQ: ONDS | August 2023 Copyright 2023. All rights reserved. Nasdaq : ONDS 24