NOTE 15 – SEGMENT INFORMATION

 

Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The Company’s CODM is its Chief Executive Officer. Segment operating loss and segment loss before provision for income taxes are the measure of profit and loss used by the CODM to assess performance and to decide how to allocate resources for each of the Company’s reportable segments. Segment operating loss and segment loss before provision for income taxes are used to monitor actual results versus planned and prior period results for each segment based on their respective profitability objectives and business models. Segment operating loss and segment loss before provision for income taxes are also used to allocate human and capital resources among the reportable segments. The Company determined it has two reportable segments, Ondas Networks and OAS, as the CODM reviews financial information for these two businesses separately. The Company has no inter-segment sales. The following table presents segment information for years ended December 31): 

 

   2025   2024 
(dollars in thousands)  Ondas
Networks
   OAS   Total   Ondas
Networks
   OAS   Total 
Product revenue  $193   $34,390   $34,583   $26   $2,770   $2,796 
Service and subscription revenue   23    10,218    10,241    34    2,458    2,492 
Development revenue   764    5,143    5,907    1,872    33    1,905 
Revenue, net   980    49,751    50,731    1,932    5,261    7,193 
Cost of goods sold   2,410    28,165    30,575    2,291    4,557    6,848 
Gross profit (loss)   (1,430)   21,586    20,156    (359)   704    345 
Operating expenses:                              
General and administration   2,781    24,453    27,234    5,261    10,360    15,621 
Sales and marketing   3,161    9,838    12,999    2,209    3,101    5,310 
Research and development   5,260    15,619    20,879    5,882    6,595    12,477 
Segment operating loss   (12,632)   (28,324)   (40,956)   (13,711)   (19,352)   (33,063)
Interest income   15    12    27    75    
-
    75 
Interest expense   (6,813)   (1,294)   (8,107)   (632)   (677)   (1,309)
Other segment items   (24)   (196)   (220)   (29)   16    (13)
Segment loss before provision for income taxes  $(19,454)  $(29,802)  $(49,256)  $(14,297)  $(20,013)  $(34,310)
Corporate operating loss   
-
    
-
    (17,428)   
-
    
-
    (1,546)
Elimination of intercompany interest   
-
    
-
    5,594    
-
    
-
    606 
Corporate unrealized gain on investments   
-
    
-
    5,400    
-
    
-
    
-
 
Corporate change in fair value of warrant liability, net   
-
    
-
    (82,225)   
-
    
-
    
-
 
Corporate interest income   
-
    
-
    9,085    
-
    
-
    160 
Corporate interest expense   
-
    
-
    (4,062)   
-
    
-
    (2,917)
Income (Loss) before income taxes   
-
    
-
   $(132,892)   
-
    
-
   $(38,007)

 

Additional segment information is set forth below as of and for the year ending December 31,

 

   2025   2024 
(dollars in thousands)  Ondas
Networks
   OAS   Corporate   Total   Ondas
Networks
   OAS   Corporate   Total 
Total assets  $8,983   $510,478   $613,380   $1,132,841   $10,158   $71,186   $28,278   $109,622 
Goodwill  $
-
   $251,809   $
-
   $251,809   $
-
   $27,752   $
-
   $27,752 
Depreciation and amortization  $283   $6,471   $
-
   $6,754   $211   $4,611   $
-
   $4,822 
Stock-based compensation  $220   $10,398   $5,398   $16,016   $397   $462   $406   $1,265 
Capital expenditures  $4   $1,996   $34   $2,034   $1,042   $594   $
-
   $1,636 

Historical Timeline

Fiscal YearFiled
2025Mar 30, 2026Showing above
2024Mar 12, 2025
2023Apr 1, 2024
2022Mar 14, 2023
2021Mar 22, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.