Ondas Holdings Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company generated revenues of $1.48 million, a substantial decline of 44.4% from $2.67 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues were $3.06 million, down 71.5% from $10.73 million in the prior year. This decline was primarily attributed to a $2.18 million reduction in product sales to Siemens, linked to delays in orders related to the implementation of a new 900 MHz network.

The gross profit for the third quarter of 2024 was $47,560, a sharp decrease from $554,878 in Q3 2023, reflecting a gross margin drop from 21% to 3%. The operating loss for the quarter increased to $8.66 million, compared to $5.93 million in the previous year, while the net loss rose to $9.53 million from $7.29 million. For the nine-month period, the net loss was $27.67 million, a decrease from $30.71 million in 2023, indicating some improvement in overall loss despite the revenue drop.

Total operating expenses for the third quarter increased by 34% to $8.71 million, driven by higher human resource costs, primarily due to stock-based compensation adjustments. The company reported a working capital deficit of approximately $22.34 million as of September 30, 2024, with total current liabilities rising to $39.51 million from $35.94 million at the end of 2023.

In terms of strategic developments, Ondas Holdings has made several acquisitions, including Airobotics in January 2023, and formed a new subsidiary, Ondas Autonomous Holdings Inc., which wholly owns American Robotics and Airobotics. The company has also focused on enhancing its product offerings, particularly in the drone and automated data solutions sector, with the Optimus System™ and Iron Drone Raider™ being key products.

As of September 30, 2024, Ondas Holdings had cash and cash equivalents of $2.83 million, a significant decrease from $14.98 million at the end of 2023. The company has raised approximately $14.87 million from financing activities in the first nine months of 2024, but there remains substantial doubt about its ability to continue as a going concern due to uncertainties in funding plans. The company plans to fund operations through cash on hand, financing activities, and potential revenue growth, but faces challenges in achieving these goals.