Ondas Holdings Inc. (ONDS) experienced an incline of 1.84% in the aftermarket. However, the last trading session closed at $9.23 with a decrease of 2.84%.
Strategic Partnership with Dynam.AI
On 11th October 2021, Dynam.AI, a leading developer of Artificial Intelligence and Machine Learning technologies, announced that American Robotics has formed a strategic collaboration with ONDS. The cooperation i.e., ONDS aims to improve American Robotics’ AI/ML capabilities by developing data analytics and related platform technologies.
This cooperation expands AR’s advanced AI-driven analytics portfolio while also assisting Dynam in the development of VizlabTM, Dynam’s proprietary AI/ML platform – and advanced data scientist toolset. ONDS has made a minority equity investment in Dynam in conjunction with the collaboration and in appreciation of the long-term strategic alignment. Fundamentally, we believe Dynam’s patented platform strategy has the potential to significantly speed up the execution of very complex AI/ML projects.
ONDS announced Second Quarter 2021 Financial Results
ONDS reported second-quarter 2021 financial results on 16th August 2021. The revenues fell by 25% to over $0.9 million, compared to around $1.2 million for the same period in 2020. Because of reduced revenue and increased cost of products sold connected to development agreements, gross profit dropped by 50% to $307,000, compared to $615,000 for the three months ended June 30, 2020.
Moreover, gross profit was about 35 percent, compared to 53 percent for the three months ended June 30, 2020. The change in mix between development revenue of ONDS drove the lower gross profit percentage. The net loss for the three months ending June 2021 was about $2.8 million. When compared to the three months ended June 30, 2020, the net loss was reduced owing to loan forgiveness of about $0.7 million and a $0.1 million decrease in interest expense. Lastly, operating expenditures grew by around 21% to $6.9 million for the six months ending June 30, 2021. Professional expenses related to the purchase of American Robotics accounted for the majority of the increase.
Expansion of Senior Leadership Team
On 12th August 2021, ONDS reported that Michael Clatworthy is the new Vice President of Operations. Clatworthy was most recently the Head of Operations of Baker Hughes’ Avitas business. He has a lengthy history of leadership expertise in the drone business, having been one of the original members of Avitas when it was founded via GE Ventures. Clatworthy will supervise corporate operations, customer operations, and flight operations in his new job at ONDS.
Clatworthy has a good track record of establishing and managing effective operational teams in the aerospace industry. He was instrumental in the expansion of Avitas’ UAS inspection activities from 100 to 1500 client locations every quarter. Clatworthy managed cross-functional teams for the hardware procurement of the newly awarded Improved Turbine Engine Program (ITEP).
