Ondas Inc. Revenue Disclosure

NOTE 3 – REVENUE

 

The following table presents our disaggregated revenues by type, timing and geographical region.

 

		Years Ended December 31,
(dollars in thousands)		2025				2024
Type of Revenue
Product revenue		$	34,583			$	2,796
Service revenue			10,241				2,492
Development revenue			5,907				1,905
Total revenues			50,731				7,193
Timing of Revenue
Revenue recognized point in time		$	41,779			$	4,496
Revenue recognized over time			8,952				2,697
Total revenue		$	50,731			$	7,193
Geographical region
Israel		$	30,844			$	4,284
Germany			6,583				-
United Arab Emirates			3,893				753
United States			1,570				1,827
Other Countries			7,841				329
Total revenues		$	50,731			$	7,193

 

 Contract Assets and Liabilities

 

We recognize a receivable or contract asset when we perform a service or transfer a good in advance of receiving consideration. A receivable is recorded when our right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. A contract asset is recorded when we have recognized revenue over time in accordance with meeting our performance obligation but are unable to invoice the customer yet based on the contractual invoicing terms. The contract asset is reclassified to a receivable when the right to consideration becomes unconditional. Contract assets are included in Other current assets on the Consolidated Balance Sheet. The table below details the activity in our contract assets during the years ended December 31, 2025 and 2024.

 

		December 31,
(dollars in thousands)		2025				2024
Balance at beginning of period		$	206			$	819
Contract assets recognized			8,476				323
Reclassification to Accounts receivable, net			(5,511	)			(936	)
Balance at end of period		$	3,171			$	206

We recognize a contract liability (deferred revenue) when we receive consideration from a customer, or if we have the unconditional right to consideration (i.e., a receivable), prior to satisfying the performance obligation. A contract liability is our obligation to transfer goods or services to a customer for which we have received consideration, or an amount of consideration is due from the customer. The table below details the activity in our contract liabilities during the years ended December 31, 2025 and 2024.

 

		December 31,
(dollars in thousands)		2025				2024
Balance, beginning of year		$	329			$	277
Contract liabilities acquired in business combinations			7,374				-
Additions			9,542				1,596
Transfer to revenue			(8,744	)			(1,439	)
Transfer to general and administrative expense			-				(105	)
Balance, end of year		$	8,501			$	329

 

Revenue recognized during the year ended December 31, 2025 and 2024 that was included in the contract liability opening balance was $81 thousand and $72 thousand, respectively. As of December 31, 2025, $472 thousand of the contract liability balance represents long-term deferred revenue and is included in Other liabilities on the Consolidated Balance Sheets.