Ondas Inc · NASDAQ:ONDS
Ondas — Investor Presentation (June 2021)
46 slides from Ondas's investor presentation, Jun 8, 2021
Slide 1: Enabling Mission-Critical IoT June 2021
Enabling Mission - Critical IoT June 2021
Slide 2: Section 1: Company Overview
Section 1 Company Overview
Slide 3: Speaker List
Speaker List Reese Mozer Founder & CEO Vijay Somandepalli Founder & CTO Eric Brock Chairman & CEO Stewart Kantor Founder, President & CFO 3
Slide 4: Investment Highlights
Investment Highlights • Ondas owns the critical IP supporting IEEE standards 802.16s and 802.16t (Industrial wireless broadband) • Aggregates scarce, low - frequency spectrum; enables low - cost, high - performance private licensed broadband networks • Enables Fog and Edge computing along with adopt
Slide 5: Ondas Networks Overview
Ondas Networks Overview • Founded: 2006 • T i cke r : O ND S (N a s d a q ) • He a d q u a rters : S u nn y va l e , C A • P a tents : 1 4 pate n ts ( 6 i ss ued in t h e U . S . , 7 p e n d i ng in t h e U . S . , 1 p e n d i ng i n t e r n a t io n a ll y ) • Industrial IoT Standards: 802. 16s ; 8
Slide 6: FullMAX – Moving Cloud to the Edge
F ullM AX – M o v in g Clo u d t o t h e Ed ge Ondas FOG End - to - end platform Maximize data capacity Efficiently allocate precious bandwidth capacity Prioritize mission - critical applications Enable low latency Edge - compute 6 Future proof software - defined network
Slide 7: Large End Markets – Data Demand Drives Upgrade Cycle
Large End Markets – Data Demand Drives Upgrade Cycle T e c h n o l o g y Drivers E d g e C o m p u t i ng $16bn global market by 2025 ( ¹ ) Wide Area IoT $33bn by 2022 ( ² ) Large, E s t a bli she d Markets Electric Utility $15bn global market by 2021 ( ³ ) Land Mobile Radio $32bn global market by 2
Slide 8: FullMAX Enables Safer Rails, Faster Trains
FullMAX Enables Safer Rails, Faster Trains ~5% Productivity Increase ~$4.5 billion Additional Revenue for Railroads Onboard Te l e m e t ry A T CS V o i c e PT C FullMAX S o f t w are Platform Onboard T e l e m e try 450MHZ ATCS 90 0 M H z Voice 16 0 M H z PTC 22 0 M H z Legacy Systems Ondas Intelli
Slide 9: Class 1 Freight Rail Required Upgrades
Class 1 Freight Rail Required Upgrades 9 Key Class 1 Rail Statistics Adoption of FullMAX by Rail infrastructure Source: Siemens Mobility; Ondas estimates. • Co m m o n n e t w o r k a cr o s s al l 7 Cla s s 1 R a i ls • 140,000 Mi l e s o f T r a c k • 40,000 W a ys i d e s • 65,000 R a i l C r o s
Slide 10: Ondas / Siemens Partnership
Ondas / Siemens Partnership 10 Siemens Legacy ATCS Solution Ondas / Siemens ATCS Solution Siemens partnership addresses FCC - required rail network upgrade • Siemens partnership validates Ondas FullMAX solution • Supports new rail applications – Advanced Grade Crossing Activation and Monitoring, Way
Slide 11: AURA Networks – Drone Navigation Platform
A u ra N e t w or k s – D ron e N avi g ati on P l atf orm 11 Developing FAA - approved nationwide UAS ( 1 ) Command and Control (C2) network • Initial 450 MHz network was deployed in 2020 • Solution to FAA bottleneck • Spectrum efficient, channelized software platform • BVLOS (2) requires dedicated
Slide 12: Recent Business Developments and Outlook
Recent Business Developments and Outlook 900 MHz Deployment • MC - IoT lab built — enhances rail/drone growth • Rail operating committee event in Q2 2021 • Targeting 900 MHz commercial deployment in 2H 2021 ATCS developed • 2 n d pr o d uc t i n tegr at i o n lau n c h ed • G l o b al d i s tr i b u
Slide 13: American Robotics | Introduction
American Robotics | Introduction The only company approved by FAA to operate fully - automated drone without humans on - site • Fully automated, end - to - end industrial - grade drone system • Exclusive set of FAA approvals to operate autonomously without humans on - site • High margin, recurring r
Slide 14: FullMAX Network | The Nervous System for Drone Applications
14 FullMAX Network | The Nervous System for Drone Applications Infrastructure - Picks & Shovels for the Drone Economy
Slide 15: Ondas + American Robotics | A Complete Data Platform for Industry
Ondas + American Robotics | A Complete Data Platform for Industry • S c ou t S y s t e m Œ i s a w o r k h o r s e fo r r e p e t i t i ve la b o r - i n t e n s i ve f i el d op e r at i on s • Thousands of autonomous drones collect & analyze high - resolution data continuously • FullMAX unlocks fu
Slide 16: American Robotics | Overview
American Robotics | Overview 16 F AA A pp r o v e s F i rs t F u ll y A u t o m ate d C o mm erc i a l D r o n e F li g h ts “American Robotics will lay the groundwork for other advances and accelerated growth of the industry”
Slide 17: American Robotics | The Key Commercial Drone Problem Solved
American Robotics | The Key Commercial Drone Problem Solved $100B+ (1) POTENTIAL | NO SCALABLE SOLUTION CURRENTLY ON THE MARKET Why is this huge market underpenetrated today? The answer is two - fold: Problem 1 Manually operated drones are not practical. • For 90% of commercial drone use cases, a dr
Slide 18: American Robotics | The Scout System
American Robotics | The Scout System ΠFully - automated, AI - powered drone system capable of continuous, unattended operation. Critical Scout System Features SCOUT TM DRONE Full y - aut o n o m o u s , Al - p o w e r e d d r on e w i t h v i s ual , mult i s p e ctral, an d th e rma l s e n s o r
Slide 19: American Robotics | Exclusive FAA Approvals
American Robotics | Exclusive FAA Approvals Critical to Commercial Markets First mover advantage defended by critical IP, trade secrets, and experience FAA Approves Commercial Drone Flights with No On - Site Pilots "This week’s authorization marks a seminal legal milestone, one that paves the way fo
Slide 20: American Robotics | $100+ Billion Addressable Market
American Robotics | $100+ (1) Billion Addressable Market 20 ( 1 ) P W C , 201 6
Slide 21: American Robotics | Customer Pipeline
American Robotics | Customer Pipeline Significant Pent - up Demand with Blue - chip Customers 21
Slide 22: American Robotics | Robot-as-a-Service (RaaS)
American Robotics | Robot - as - a - Service (RAAS) • R aaS m o d el b u n d les h ar d w ar e, s o f tw ar e, o per at i o n s , a n d maintenance into one annual subscription fee. This has 2 effects: 1) It lowers the annual cost of data acquisition via drone to what AR believes is ten times less t
Slide 23: American Robotics | Economics of Automation
American Robotics | Economics of Automation Average cost of drone pilot is $150 per hour Pilot cost ranges from $100 - $500 per hour (source: Drone Deploy) Performance Difference: In addition to cost reduction, the Scout System w o rks a r o u n d t h e cl ock, 2 4 h ou rs p e r d a y. Between fligh
Slide 24: American Robotics | Scout System Unit Economics
A m e r i can R o b ot i cs | S cou t S ys t e m ΠU n i t E con om i cs 24 Note: For illustrative purposes only; Actual results may differ materially. S o urc e : M anag e m e n t ass u m p t i o ns ( 1 ) ( 2 ) ( 3 )
Slide 25: American Robotics | Potential ARR
American Robotics | Potential ARR 25 U . S Mar k et O n ly 1 , 2 , 3 ,4
Slide 26: Section 2: Financial Overview
Section 2 Financial Overview
Slide 27: American Robotics | Deal Summary
American Robotics | Deal Summary 27 ▪ Acquisition expected to close in Q3 2021 ▪ Purchase price: $61.2 million ▪ 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 i
Slide 28: Pro Forma Balance Sheet (Q1)
Pro Forma Balance Sheet (Q1) (Unaudited) Transaction A cc o un t in g P r o F o r m a Ondas H o l d in g s In c . American Robotics Adjustments Consolidated S EL E C T B A L A N C E S H EE T D A T A : A s o f M a r c h 31 , 202 1 C u rr e n t A ss e t s: Cash and cash equivalents $ 24,026,187 $ 725,
Slide 29: Pro Forma P&L (Q1)
Pro Forma P&L (Q1) SELECT P&L DATA Three Months Ended March 31, 2021 (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 G r os s p r o f i t 609,414 50,0
Slide 30: Outlook – Accelerating Near-Term Adoption and Optionality
Outlook – Accelerating Near - Term Adoption and Optionality Large, Reference Networks Scout System TM Integration New Ecosystem Partners New MC - IoT Applications 30 Expa n s i o n Drivers Note: Estimates are for illustrative purposes only; Actual results may differ materially.
Slide 31: Investment Highlights
Investment Highlights • Ondas owns the critical IP supporting IEEE standards 802.16s and 802.16t (Industrial wireless broadband) • Aggregates scarce, low - frequency spectrum; enables low - cost, high - performance private licensed broadband networks • Enables Fog and Edge computing along with adopt
Slide 32: Appendix
Appendix 32
Slide 33: American Robotics | Purchase Price
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 33 ( 1 ) ( 2 )
Slide 34: Pro Forma EBITDA (Unaudited)
Pro Forma EBITDA 34 (Unaudited) Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our
Slide 35: FullMAX – Software in the Fog
Corporate Cloud ▪ I P P ack e t i z at i on an d Tran s p o rt ▪ D o c k e r / C o n ta i n e r In t e g rat e d ▪ E d g e C o mp ute ▪ M ult i La y e r E n cr y p t io n ▪ Authentication ▪ V i rtua l F i r e w all Ondas FullMAX In telli g en t B a s e Station F u ll M A X Edge Remote F u ll M A X E
Slide 36: Ondas Networks | C2 Solution for all Drone Applications
Ondas Networks | C2 Solution for all Drone Applications Local Lower Altitude • 3 - mile+ radius operations • Drone - as - a - Service, distributed • Remote Flight Operations • Fully Autonomous • Edge Processing and rich data collection Private WAN Lower Altitude • Long Endurance Missions • Major Ind
Slide 37: FullMAX – Coverage, Cost and Security vs. Consumer Networks
N o t e : N o t d r a w n t o sc a le . COVERAGE RELIABLE SECURE FullMAX platform – 1,000x greater coverage of current networks # Cells C ost 1, 000 ~$50 .0M 100 ~$10 .0M 1 ~$0 .1M C ove r ag e 28 sq. miles 2,800 sq. miles 2.8 sq. miles Consumer Industrial 5G 4G LTE FullMAX FullMAX – Coverage, Cost
Slide 38: The Wide Industrial Pipe – Spectrum Harvesting
300x + c a p a c it y 38 Capacity upgrade enables Fog computing and other high value, MC - IoT applications Ondas technology enables aggregation of scarce, low frequency spectrum The WIDE Industrial PIPE – Spectrum Harvesting
Slide 39: FullMAX Solves Bandwidth Bottleneck
25 k Hz 1 25 k Hz 2 25 k Hz 3 25 k Hz 4 25 k Hz 5 25 k Hz 25 k Hz 25 k Hz 25 k Hz 25 k Hz E d g e R e m o t e s L e g a c y R a d i o s B a s e S t a t i o n s FullMAX Solves Bandwidth Bottleneck Ondas’ Software Enables Intelligence at the Edge Ondas I n t e ll i gen t Fog Legacy Conventional Narrow
Slide 40: Adoption Cycle Accelerating
▪ R a i l A T C S ▪ LMR Data ▪ Drone C2 ▪ IoT Software ▪ Fog / Edge Compute ▪ Sensors Adoption Cycle Accelerating F l y w h ee l – E cos ys t e m A cc e l e rat e s N e ar - T e r m A d o p t i on 40 Ecosy st e m Partner New MC - IoT Apps Emerging Tech C us to m er Adoption
Slide 41: FullMAX – High Value Connectivity vs. Industrial Solutions
(1) Low - Power Wide Area Network (“LP - WAN”). U n l icen se d LP - WAN ( ¹ ) N a rro w b and IoT F u llMA X Value Commodity (e .g., Lo w - cost s e nso rs ) Low (e .g., St ree tlamps) High (e .g., T r a i n cont r ol) Private / L i censed No No Yes Range ½ M i le 1 – 3 Miles 30+ Miles Speed Narrow
Slide 42: FullMAX – Comprehensive MC-IoT Software-Based Solution
(1 ) A u t o m a t i c E q uipmen t I d en t ifi c a t ion (“ A E I ”). S e cure f i r e w all S t o ra g e a t t h e e dge AI/ M L an al yt i c s cap able L o ca l de c is io n ma k i n g FullMAX – Comprehensive MC - IoT Software - Based Solution Software platform with configurable base station and
Slide 43: O p e r at e s as a B ase S tati o
O p e r at e s as a B ase S tati o n o r a R e mo t e R a d i o Narr o w ba n d o r Br o a d b a n d O p era t i o n Mo b i l e a n d F i x ed Primarily Base Station Application I n c r e a s ed P r o c e ss i n g P o we r ( X 12 A R M ) fo r 1000 s o f r e mo t es MI M O 2 x 2 (e n h a n c e d c o
Slide 44: Freight Rail – Mission Critical Applications
Locomotive Voice and Data Crossings Head of Train End of Train Base Stations Wayside Signaling Defect D e t e ct ors Intratrain C ommuni ca t i on Back Office Railcar MOTES Maintenance Vehicles / Personnel Drones Train Detection 44 Circuits in Rail F r eigh t R a i l – M issi o n C r i t i c a l A p
Slide 45: Disclaimer
Disclaimer This presentation is being provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any of Ondas Holdings Inc.’s (“we,” “us,” “our,” “Ondas,” or the “Company”) securities nor shall there by any sale of these securities in an
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