Ondas Inc · NASDAQ:ONDS
Ondas — Merger or Acquisition (May 2021)
33 slides from Ondas's merger presentation, May 27, 2021
Slide 1: Enabling Mission-Critical IoT Business Update
ENABLING MISSION - CRITICAL IOT Business Update | May 2021 AMERICAN ROBOTICS
Slide 2: Forward-Looking Statements
Statements made in this presentation that are not statements of historical or current facts are “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 . We caution readers that forward - looking statements are predictions based on our current expect
Slide 3: Speaker List
Speaker List 3 Reese Mozer Founder & CEO Vijay Somandepalli Founder & CTO Eric Brock Chairman & CEO Stewart Kantor Founder, President & CFO
Slide 4: Ondas Business Update Agenda
Ondas Business Update | Agenda 4 Ondas | Introduction American Robotics | Overview & Strategic Fit American Robotics | Key Deal Terms American Robotics | CEO Business Overview Investor Q&A
Slide 5: Ondas Overview
▪ Founded: 2006 ▪ Ticker: ONDS (Nasdaq) ▪ Headquarters: Sunnyvale, CA ▪ Patents: 14 patents (6 issued in the U.S., 7 pending in the U.S., 1 pending internationally) ▪ Industrial IoT Standards: 802.16s; 802.16t (pending) Ecosystem Partners / Customers ▪ Next - gen, MC - IoT Industrial wireless broadb
Slide 6: Introducing the Scout System
American Robotics | Introducing the Scout System TM “American Robotics will lay the groundwork for advances and accelerated growth of the industry” FAA Approves First Fully Automated Commercial Drone Flights PLEASE WATCH INTRODUCTORY VIDEO AT Ondas - AR | ONDAS Networks www.ondas.com/ondas - ar/
Slide 7: Company Highlights and Leadership Introduction
▪ Fully automated, end - to - end industrial - grade drone system ▪ Exclusive set of FAA approvals to operate autonomously without humans on - site ▪ High margin, recurring revenue Robot - as - a - Service (RAAS) business model with $100B+ TAM (1) ▪ Unique, full stack IP portfolio critical to real -
Slide 8: Ondas + American Robotics: A Complete Data Platform for Industry
Ondas + American Robotics | A Complete Data Platform for Industry 8 ▪ Thousands of autonomous drones collect & analyze high - resolution data continuously ▪ Long - range data transfer unlocks full scale of commercial market ($100B+ TAM (1) ) ▪ Ondas reliable secure command & control (C2) link is req
Slide 9: Private UAS Networks
Private UAS Networks Upper Limit Undefined FL 18,000 MSL CLASS E CLASS A Class B C D Manned Airspace FAA Authorization Required COMMAND & CONTROL Nationwide UAS Navigation 450 MHz Applications ▪ UAM – Urban Air Mobility ▪ Large Field Inspection ▪ Wide - area Security CLASS G 400 AGL Class G Unmanned
Slide 10: Ondas Networks: The Nervous System for Drone Applications
Ondas Networks | The Nervous System for Drone Applications 10 Local Nationwide Lower Altitude 3 - mile+ radius operations Drone - as - a - Service, distributed Remote Flight Operations Fully Autonomous Edge Processing and rich data collection Lower Altitude Long Endurance Missions Major Industrials
Slide 11: The Vision: Ondas and American Robotics
The Vision | Ondas and American Robotics 11 Enhanced value of FullMAX wireless network Faster market penetration for Scout System TM End - to - End Solutions ▪ End - to - end solutions for mission - critical field operations ▪ Industrial (Rail, O&G, Utilities) ▪ Government (Public Safety, DoD) & Agr
Slide 12: Deal Summary
American Robotics | Deal Summary 12 ▪ Acquisition expected to close in Q3 2021 ▪ Key Deal Terms: Cash $7,500,000 Promissory note 2,000,000 Total Cash $9,500,000 Common shares 6,750,000 Shares underlying warrants 1,875,000 Total Shares 8,625,000 Note: The acquisition is subject to customary closing c
Slide 13: Overview: Reese Mozer, Founder & CEO
American Robotics | Overview Reese Mozer Founder & CEO M.S., Carnegie Mellon Speaking “American Robotics will lay the groundwork for advances and accelerated growth of the industry” FAA Approves First Fully Automated Commercial Drone Flights
Slide 14: The Key Commercial Drone Problem Solved
American Robotics | The Key Commercial Drone Problem Solved 14 Why is this huge market underpenetrated today? The answer is two - fold: $100B+ (1) POTENTIAL | NO SCALABLE SOLUTION CURRENTLY ON THE MARKET Manually operated drones not practical. For 90% of commercial drone use cases, a drone must fly
Slide 15: The Scout System
American Robotics | The Scout System 15 Fully - automated, AI - powered drone system capable of continuous, unattended operation. Critical Scout System Features A fleet of connected, weatherproof Scouts Πremain indefinitely in an area of operation, autonomously collecting data each day, self - ch
Slide 16: Exclusive FAA Approvals Critical to Commercial Markets
American Robotics | Exclusive FAA Approvals Critical to Commercial Markets 16 First mover advantage defended by critical IP, trade secrets, and experience "This week’s authorization marks a seminal legal milestone, one that paves the way for developers in the drone industry to ex pan d operations fo
Slide 17: $100+ Billion Addressable Market
American Robotics | $100+ Billion Addressable Market 17 Source: PWC, May 2016
Slide 18: Customer Pipeline
American Robotics | Customer Pipeline 18
Slide 19: Robot-as-a-Service (RaaS)
American Robotics | Robot - as - a - Service (RAAS) 19 RaaS model bundles hardware, software, operations, and maintenance into one annual subscription fee . This has two effects : ( 1 ) It lowers the annual cost of data acquisition via drone to what AR believes is ten times less than current methods
Slide 20: Economics of Automation
American Robotics | Economics of Automation 20 Average cost of drone pilot is $150 per hour Pilot cost ranges from $100 - $500 per hour (source: Drone Deploy)
Slide 21: Scout System Unit Economics
American Robotics | Scout System TM Unit Economics 21 (1) (2) (3) Note: For illustrative purposes only; Actual results may differ materially.
Slide 22: Potential ARR U.S. Market Only
American Robotics | Potential ARR 22 U.S Market Only 1,2,3,4
Slide 23: Highly Strategic Fit
American Robotics | Highly Strategic Fit 23 Acquisition enhances Ondas MC - IoT platform value in Industrial markets ▪ Scout Ρ is best - in - class, turnkey drone platform ▪ Drone is a valuable data gathering Edge device in a MC - IoT Network ▪ Integrated platform solution (drone + network) solves c
Slide 24: Select Financial Information
24 Select Financial Information
Slide 25: Purchase Price
25 American Robotics | Purchase Price (1) Based on a per share price of $6.78, which was the closing price of Ondas' common stock on May 25, 2021. (2) Based on a share price of $3.14, which is the call option value based on a Black - Scholes fair value calculation (1) (2)
Slide 26: Pro Forma Balance Sheet (Q1)
26 Pro Forma Balance Sheet (Q1) SELECT BALANCE SHEET DATA: (Unaudited) Transaction Ondas American Accounting Pro Forma Holdings Inc. Robotics Adjustments Consolidated Current Assets: Cash and cash equivalents $ 24,026,187 $ 725,483 $ (9,500,000) $ 15,251,670 Total current assets 26,201,142 731,126 (
Slide 27: Pro Forma P&L (Q1)
27 Pro Forma P&L (Q1) SELECT P&L DATA (Unaudited) Transaction Ondas American Accounting Pro Forma Holdings Inc. Robotics Adjustments Consolidated Revenues, net $ 1,164,764 50,000$ -$ 1,214,764$ Cost of goods sold 555,350 - - 555,350 Gross profit 609,414 50,000 - 659,414 Operating expenses: General a
Slide 28: Pro Forma EBITDA
28 Pro Forma EBITDA (Unaudited) Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We pr ese nt Adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in o
Slide 29: Company Highlights, Leadership and Q&A
▪ Fully automated, end - to - end industrial - grade drone system ▪ Exclusive set of FAA approvals to operate autonomously without humans on - site ▪ High margin, recurring revenue Robot - as - a - Service (RAAS) business model with $100B+ TAM (1) ▪ Unique, full stack IP portfolio critical to real -
Slide 30: Q&A
30 Q&A Summary | Q&A
Slide 31: Important Disclosures: Additional Information about the Transaction
31 Important Disclosures Additional Information about the Transaction and Where to Find It In connection with the proposed transaction described herein, Ondas intends to file relevant materials with the SEC, including a preliminary proxy statement and, when available, a definitive proxy statement .
Slide 32: Important Disclosures: Participants in the Solicitation
32 Important Disclosures Participants in the Solicitation Ondas and its directors and executive officers may be deemed participants in the solicitation of proxies from Ondas’ stockholders with respect to the transaction . The names and other information about those directors and executive officers a
Slide 33: Enabling Mission-Critical IoT Business Update
ENABLING MISSION - CRITICAL IOT Business Update | May 2021 AMERICAN ROBOTICS