Ondas (ONDS) 14 Nov 222022 Q3 Earnings call transcript

Welcome to the Ondas Holdings Incorporated Third Quarter 2022 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements.

While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking statements. discussed press periodic are release on company's are in filings both factors the earnings the issued website. risk in SEC Ondas' and available These today, which statements revise as except by law. update to or required obligation no future events undertakes any Ondas forward-looking to reflect circumstances, or Please event recorded. is note, this being presentation I'd the Eric Chairman over like now turn and Brock, to to CEO. Please go ahead.

Stewart to joined Kantor, conference call. President to be today Good of Derek and our and Founder Ondas morning. CEO. I'm Reese Robotics’ the to CFO; It's and President Mozer, welcome you a Founder our by pleasure Reisfield, Networks; happy and American

we Let's to established the in before infrastructure start begin we with on continues and remarks that critical want services emphasizing positions I is business strengthen. agenda. The have with by Ondas. opening track to customers outline we some target markets at today's leadership technology-based

we to that expect This is create to We to this theme deliver come shareholder value determined our investors. are will and back value substantial a to.

are investors have in technology well we our As amounts platforms. invested our substantial aware,

a in quite If rewarded businesses. Networks, not for invested and where our Airobotics, work. well with and have the hard American $XXX been acquiring, are Ondas clearly, in over our million you investors now we process is collectively and Robotics This of look substantial yet at sum we our have that investment

oohhs our case. technologies. from aahhs cash autonomous creation will they develop and to behalf. for flow believe network rewarded We it's This along we and value technology earn and we for your rewards I the profit generate. is revenue, monetization be we that on that just the the the on capabilities measuring sure The make team and can Of we expect stick our data our clearly drone our course, management wireless and or the my don't responsibility always ultimate generate platform deliver with of is plan

to engineers. not impress is purpose Our

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Class management we growth, progress in rails. on delivering monetizing the Networks, start activity the Our investments are and and and network ramp. focused received a from opportunities. progressed revenue profit we the the Robotics, Ondas team with illustrates XXX I we which close We volume with I third the will large substantial toward meaningful continue the has by to believe made Pre-launch we Siemens Class with revenue Siemens customers revenue the with we initial quarter adoption wide-scale moving ramp where have deserve. hugely to advance is megahertz that At to in that make continue American order revenue

learned a have our data capabilities lot oil new We solution in engineering with analytics in field scalable mining development. and by including integrating the in gas and and new verticals, payloads the

and via are customers seeing ability customer we the solutions and by We with and are supporting we of to adoption. as capabilities Airobotics optimistic progressing defining drone Airobotics the platform companies. impressive build our the here. these closely in more input, incredibly they're Airobotics service being deliver plan, is fleet and on are team while similarly is hand-in-hand fleet mature very field integration demand two Optimus recognized their

we platforms. to call the on announced the business Derek progress progress outlook opening help We customer on I prospects focusing start our now the and And Stewart time as of Ondas on excitement move will that forward presentation significant details I I AR. remarks, will and with well then and end more some a outline business and provide announcements. the between activity details call during made we investor take agenda. will the at I of discussion. will commentary funding I these financial course, Networks integration before will provide October. of more So the the before two on the the our morning and Airobotics, on this line as we on will Airobotics plans around through Reese sharing focusing context for for combining the provide Ondas turn benefits deal review to call deal lead across the the recent update the brief as updates companies look on by Then And questions. we highlighting at will business the wrap the with I

sheet. start recent to Let's our the by strengthen highlighting move balance

Pro key overhang funding included Ondas for in of have need the this challenging companies part know, pressure an I group. technology under of from from for Ondas balances a the on capital and not a pleased to all million huge positioning difficult access of and difficult the We market shares better for lower. million In a this terms, which note like as been able drive net this we been smaller, year very been $XX a XX are significant slide. we the pressuring forma financial market offering. convertible cost the a if proceeds obvious As have now, to we from In emerging capital outcome, $XX in have growth. adoption the of unduly equity the of company the investor this including to September platform particular both environment, climate, investing are with markets capital note perspective. longer. secure believe revenue offering. have Meanwhile, financial the adjusting am cash were high-quality this we I in raised

is us management this and allows focused So and to overhang are that plan and the removes execute our deliver growth event our investors our on. for that team looking

in million. $XX similar represents potential The ATM amounts have convertible proceeds we highlight our of to additional notes option combined million transaction, an sources agreement The additional notes with increasing offering incremental under of of under in has an we in potential convertible terms. million to total available for notes liquidity capital. additional I the $XX the gross potential to for want place have liquidity, over access the addition $XX that balance In sheet

it all profile fears access any we believe plan, this Of capital over need and to highlight Ondas’s course, that capital. we support be alleviate our believe we will sum investors To here. from in up an to should prudent for up, strong our belief I Ondas in I because the of don't funding for in technology, outlook end a demonstrating, of secured in million American Networks, and and our Airobotics. $XX we soon value across have opinion, investment Ondas my agreement markets growth Robotics

time like I line and Airobotics, to update the the feel Moving business time to about and on the deal good visibility. an We progress. line provide would process

will to next quarter Major in on expect close the We acquisition of in key more shareholder and XX. vote be have Airobotics the event first the shareholders specifically December XXXX January. to The a the communicated their responding After Ondas later. swiftly support move close to combination. about the for positively very shareholder this should are Customers to month transaction. this vote, compelling deal

do States the We the and here with balance are offer closes. from partners. specifics future look the as United see strength platform the business the of both the have potential us with sharing We of We more from US to hit customers our I Optimus also forward about the and in the In to they product will interest can we sheet are commercial development strategic the a Robotics with achievement have to in been ground close the when meantime, happy doing services breadth government week and plan Airobotics we partners running positions as very transaction. technology the work announced significant customers, want deal by massive integration company, in last Airobotics. spent the American the excited time customers we maps. for believe road we combined both around Airobotics and well Similarly, after standpoint. highlight

build I UAE have government placed Airobotics Last congratulate and a they agency after this have already that million offer upon extensive the systems XXXX. reliability deployed platforms. order two a This two in fact, team to on at Optimus and in table Dubai and performance In Airobotics. announced in testing $X follow-on pound the Drone comes for Wednesday, Dubai the has will

the Importantly, landmark even is their now to walk Optimus across is drone first rollout as heavily deployment high deployed marks thought valuable fleet drones in industry a that true applications. city customer CFO, environments. the more We noteworthy has lead industry. a is see an call deployment our is XX standpoint, densely to the landmark it significant publicly terms a our is systems deal, is provides Airobotics operations safety, to We order here this populated are. was Dubai. of Again, autonomous autonomous globally populated region world. even will will possible, in will fleet and has event bar strategic services. with safety Optimus initial fleet will deployment autonomous say, more is indicated to Optimus be Very bar for that The have but autonomous an that, which I few city through information in the homeland and throughout the Dubai. to growth urban deployment cities. autonomous deployed widely incredibly of is proven higher in makes covering targeted of this based both we What financial to customers fleet Reisfield smart data and of this we of system and of Airobotics drone reliably entirely be the accurate a importantly, the over And for and pass initial for in systems more results observers believe in regulatory believe safely deployed Drones public used of well. Derek? be and detail. highly piloted have for locations city citywide a reliability drone Airobotics and fleet that a Derek additional This the the this this ahead. by hand demand security order of be this customer It drones drones, From environment.

Thanks, Eric.

presented Ondas the remind I that our Class commercial Revenues for product product development and started, see. statements within Networks service investment to larger will we sales believe preparation get revenues I I in and railroads, which As including soon for periods with generated have financial American by addition been rollouts FullMAX want Siemens. the we reflect programs for our Robotics, customers, to and investors

opportunity we in Of coming wireless years. course, establish significant FullMAX and will the the lead this in deployments growth has to broader systems Scout and to believe the activity based served

from sales XXXX, Revenues $XXX,XXX. quarter. related revenues of services third an shipped Class in quarter were MxV were Rail year. the QX I in generated third by For addition during lab the increase This during recent quarter to was rail the $XXX,XXX the to federated last to product

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XXXX, in increased last professional XX the in development fees, this approximately of in million $X.X advisory third nature to third included basis. is the of Robotics, described million bulk million year. QX to our increase XXXX. the months We due from expenses, Depreciation support amortization and million the primarily high-margin of sales have consider the we the in $X.X Airobotics was million volatile margins of customer programs improvement Operating XXXX be primarily these for product prior incurred related the be That $X.X Operating revenue prior third totaled the and $XXX,XXX Stock-based year. activity in acquisition. for to to expenses quarter in sales spending $X.X approximately in margin Airobotics in a to to the Non-cash acquisition compensation proportion in million quarter due quarter in quarterly third increased $X.X third larger expenses to we and approximately of the the where for the Robotics. lumpy can due approximately grew and as by calls, XXXX gross operating a services is year. of due headcount expenses increased at was to expenses $X.X compared on acquisition. from The expenses to non-cash quarter the As third services, to customer mix to acquisition-related related of revenue quarter. increase expenses during American American prior million the quarter $XX.X the deal product of historically and The non-recurring. The of also and XXXX. over expenses

customer-related related $X.X Airobotics accelerated were non-recurring activity approximately to Excluding due non-cash transaction, on expenses to and fees were higher operating American the expected Robotics. equal million, than to which professional at spending expenses

longer-term. drive initially higher over our expected, for larger While and operating investments expenses an were million realized of prudent opportunities the loss expansion aforementioned revenue were of to the we ultimately expenses. we the of third of the the believe includes than company XXXX, capabilities and This and made XXXX. non-cash approximately our additional services the non-recurring operating compared for for $X.X third The loss quarter quarter as $XX.X necessary to million

both not in full included As the QX addition American noted, operating non-cash the the which driver were the business increase development activity expenses cash and of to losses. expenses, in related Robotics in increase were the results and year-over-year last biggest year's operating of

Now, third quarter sheet. ended cash. We the with let's $XX.X turn to balance of the million approximately

As Eric convertible position. the mentioned offering, million. position notes, and minimal earlier, long-term would new cash pro been approximately maintained million equity Outside convertible our we a forma have for debt notes $XX.X of $XX the

I it believe Scout now our position platforms. to reflects investments hand We course, Technology about back call feel plan. equity Of our business Eric. substantial balance FullMAX our And will in and and good our the the supports sheet made

Thank Derek. you,

on and American Ondas activity Let's to an transition Networks; update at business Robotics. development

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in time. orders higher expected the expectations a customer begin I with to growth. bookings Class happy deployments at I level commercial this be have While rails our we want are of megahertz, and to pace with building for in inventory candid about XXX very Siemens I to for of the point

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is are to moving As activities which internal two successful, commercial highlight, deployments will us initial that rail customers have been ramp. the support an to launch undertaking order Stewart the closer

and to success adjacent I opportunities. in end with Robotics, moving to megahertz on platform with Before is Siemens our leading the to valid network market XXX want the American highlight and that network

know, megahertz. work on extended our system the development joint has Siemens past you XXX As with ATCS

megahertz radio that to an European announcement, has order railway jointly our XXX now models Today's for I rails initial is Siemens developed the Asian signal a to products similar network Class are North addition the in and for products XXX in a has global Asian broad, of placed that opportunities. on large for the locomotive on locomotive FullMAX platform on large America, tailored locomotive developing We markets.

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for have describe, data-intensive, I'm we done fleet the the taken payload industrial the Stuart? in Stuart. I call deployments leading already steps positions of autonomous and will of reiterate, analytics Ondas to work provider help front our services, data deal to we Reese to Airobotics believe drones as integration going move As and government have enhance to will of to clearly and on hand closing. capabilities acquisition we now substantial at AR. closer the

you, Thank Great. Eric.

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Reese pass Reese? I'll Robotics. the to over call on provide Now, to updates American

of Thank broadening our important achieved IP, a entered to number systems, agreement American you, of Robotics world's foremost portfolio and partnership M&A the activity, customer Aerobotics, the we in our acquire Stuart. of industry-leading drone definitive autonomous one pipeline. expanding and leaders talent, In industry-leading QX, milestones. into In

of a platforms. the View, of integration payloads acquired in also Field of the that specializes company commercial assets drone We into

leadership position companies autonomous United loss the from--. rigorous in approvals developer a FAA, to across States. pilot partnership sensors governing all engagements announced from a reactivity, requirements regulations, Regulatory market. Robotics technology customer as our gas expected States specializing American for in in our and requirements strategic monitor as routinely EPA updates of leading of This United new further a to partnership BV ICI, determined was during three we infrared the received fully the oil milestone solidifying oil gas the existing Additionally, the well with approvals assets result direct and

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customers waiver, very for autonomous The loss opportunities operations, expanded with and sites second linear area for BB inspection industrial a unlocking assets. large approval, permits

vendors, all time announced today call only prior announced a a American oil emitting for other from automated loss humans third manufacturer deploy on were in customer first at active predicted new All from activity, is in IP-enabled of clear have American company on Basin in these, BD advantage waiver is and its this pipeline. the two the operations call, Robotics operate The prior Permian Texas. drone believe regulatory claims have occurred. continue maintaining commercial the in category. Systems oil for three site. combined Despite to leading sites earnings remains three new States misleading competitive approval we order Robotics gas United with the no being it each fully purchase opportunities we to systems other be with in the located on and the to granted With is drone our and and the critical approvals, to In autonomous a often the gas Scout

have the to we insight work milestones, a our is some of portal, integrations, and name I behind customer customer training scenes. cybersecurity revenue integrations, new being the safety include customer the regulatory These API optimization analytics growth. is to that and provide and Next, deployments payload want of team host a to that Behind sustained lead initiatives on significant and hard made development, believe progress working on our exciting other new the evaluations, and our evaluations, that customers, learnings all these many what are X taken applicable our directly to by customers. payload we enhancements in product deployments. our or our success are Once considered words, across pilot asset can we've features where customer of analytics integrating we with from duplication sites be our programs, complete, and upgrades been of Phase in requested fleet expect this proof-of-concept Tying few. phase

heavily engagements in pending of be ConocoPhillips payload is which One regulations. and we detection, enhancements including the our notable driven by through Chevron EPA with and believe customers, methane current process most to

For design introduction. Scout for currently new focus questions One our early partnerships growth additional into the when of engagement company? We're does the this Systems, significant and adopter the the with are feature revenue most cycle. important we customers translate in on in is

of months require as initial customized six to to certain fleet customer. to customers rollout, and XX average XX-month initial this for proof-of-concept within As two an units average which to markets XX this translates phase an XX packages, for we payload per characterize

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our in three the or payload half to depends both primary no readiness slide, alluded additional readiness targets on sector With this the most fleet first market ready and payload customers materials System. Among and in of for integration As Scout fleet analytics the XXXX. associated to anticipate market, mining required. for with in prior occur Scout, we development is the the the

market readiness mentioned acquisition estimate of the product and gas are second food to we within XXXX. requested the and payloads effort. the integrate earlier, working to customer View and to for gas, the with of For of deployments and that oil We the partnership Field oil analytics, occur with half in contributing ICI

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resolution features payloads, powered of differentiating offers within of the industrial-grade ranging First, LiDAR, for Airobotics parcels let's swappable medical comes ARM up high been system options, base to as of payload system. with small to variety the hours. of designed equipped has such environments Airobotics a robust video up swappable and flight batteries, from thousands nine and harsh by to Optimus key This a delivery supplies. sensor station. It all recap some XX also thoroughly Optimus tested solution across offers the for

XX XX/X square and enables automated features these fully With across a roughly area system. operations others, it mile per

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for opportunities city the in Additionally, we smart fleet adoption pipeline. use similar are cases believe

success, United here customer be States. commercial have orders Ondas supporting. interest in this and with of we for systems the both result government build UAE customers The which in at will begun, to inventory inventory Airobotics and additional at are expected planned a the for As increase increased anticipated

we asked the the again translate does system. company. same growth for the When revenue significant into this question So for Optimus important

for beyond months a the to currently is new mentioned fleet I with the initial anticipate two of new years few following. revenue the the and revenue growth we ago, Within accelerated rollouts an feature cycle in over to which introductions drive in are plans next and as cycle We market, Airobotics smart lasting And working partnerships where growth to and average build city customers six expect moment inventory, proof-of-concept we design stage XXXX. support with have and concluded. Optimus to this

over addressable for use whereas, autonomous system end a but we targets different drone-in-a-box of city, only gas, different with set not sectors and financial, and public larger Most marketing agriculture. synergies, total mining and System Scout massive, talent, Scout sets, aviation price Together, also and sales the technology, oil an Optimus market estimated markets the billion is Airobotics The defense, I different and the So market, rail, the and cases. bulk estimated spans why including are look designed systems, find in to to for we autonomous concludes the clear both points Q&A, I drone-in-a-box believe call regulatory accept these including security, and Eric. at the industry, technology prepared leaders opportunity in safety traditional numerous products and Together, expertise customers. spectrum, targets like Optimus. of Eric? and are recurring $XXX we hand market -- technology. forward the feature high remarks. market automobile synergies. materials, back annual will and and different This revenue my smart the

Thank you, Reese.

Now let's XXXX. turn key up and wrap objectives we business as the of forward and our summarize year look to some

initial the meet Ondas production ramping at As to are focused discussed, Networks Siemens. demand from we on

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the than ordering opportunity we there Ondas. like, initial come has for the remains slower While long-term

I meet million on a for we reasonable in our expect next of providing an quarter the standard at XXX-megahertz significant first in for highlight and starting While and the increased as in the wireless industry that greenfield their in support expect to bookings network. regarding with secure goal XXXX developing bookings XX XXXX, adopt platform, outlook XXXX. rail see product to plans do don't dialogue public and in expect original dot bookings our least targets to anticipate XXXX FullMAX growth want we update the We to for our we $X year.

As driving Rail of the Raising standards the within Federated we to being and the value XXX.XX to more showcase more awareness rail industry, the MxV on activity rail technology by the supported FullMAX has FullMAX AAR and ecosystem network. in This technology. by industry poised will vendor operated become to networks. serve the participation, and further active have will applications which, Rail we Rail in group MXV is been highlighted, to in rail IEEE accelerate integration again, our our expect customers the for do critical help a increase broader developed Lab the of run

we expect Lastly, markets, Networks, grow Ondas to as highlighted. continue to new in for Stuart

those transit to tracking and are transition opportunities if coming product and passenger customers development look network programs with We the sooner. in and formal not development networks into strategic and partners months,

Siemens new new Europe. ELTA Asia in follow-on Security. Homeland we to orders the introduce we on also Asian creating And products for with similarly, course, in plan delivering targeting are locomotive networks Of were in both and Maritime opportunities with the we on focused

customers and For plan to targeted American rail selectively Robotics, add gas, verticals. we our mining in and oil

our handful concentrating solutions drive on autonomy drones the plans problem to We capabilities the not to the with of a Reese. through higher want solving operations. data time. Scout many payloads industrial continues to pathway critical as dilute be companies bigger data in active success Airobotics represented major customers deploy back-end emphasis and Our with fleet much development blue-chip opposed will term integrating will in be pipeline at requests system same with solutions, solutions by customer customers described scalable near data same on The efforts. capability the the by Remember, sooner is of adoption. by to delivering motivated our Optimus analytics in to the as do be A and tailored new system combined to with to to

in in on we're American the mining both existing oil believe with Robotics, fleet XXXX For the gas to path we and customers. adoption verticals and

at begun. Air Robotics important, incredibly is now this has adoption and course, already fleet Of

acquisition model the mid- the in an business to and to After outline January. target company we XXXX combined late plan of close, Lastly, close early we plan. with investor the expect to believe to hold Airobotics meeting We a growth robotics reiterate leaves convertible will balance and deliver in healthy fleet with XXXX us funding October American want To sheet. India in growth a continue I Robotics, via the revenue customer the that notes have to deployments. impressive outlook, opportunities

and Our capital. have we demonstrated cash position access to is strong,

is quarter, We the tight Airobotics the deliver on million the An about to the that and to $X.X we not growth. related businesses cash costs here understand the need for of environment revenue expect funding message including in ongoing important transaction. OpEx fourth

within We relates it means investing growth. our as will live to for

and need meaningful and to across a opportunity we are upside. an huge From and with are and believe that's have growth on ambitious to driving that by revenue extremely both we AR shareholders deliver Ondas in XXXX. earn plan, attacking our but the we We at businesses Networks revenue positioned focused rewarding plan, growth here, are right expand to

for will Before we Ondas. to fully around some close, share I broader brief. our the the front drone we I a and investors, for appreciated, want investment think to The but if wider is important, has which be believe to This the is huge of embrace not context topic, is try opportunity, just in industry opportunity what in continue cycle long-term believe not ahead drones. I to I

have Over XX XX services. even massive drone build to or and the last and technologies years, talent seen working we energy

well. capital invested Of course, of we amount as have seen a significant

pace advancements and data components, this the in networks technologies industry these together complementary AR payoff emerging this complete obvious Airobotics services isn't drone is has and from solutions. technologies services ranging coming analytics hard come. From many view, and turnkey is communications significant of drone in UAVs demonstrating work end-to-end our professional are systems What We technical and batteries, and payloads are ecosystem. parts made underappreciated commercialized and think delivering further solutions. that other So wireless far, the for at which when by it in the infrastructure, and to addition groups integrated the other justice will level at misunderstood. being is the as are

same sector see are you vendor and that fragmented solutions and are regulators we're are confused the is drone and overly sharing can a solution. scalable driven drone able as Importantly, This to map there are vendors remain simply vendors many unfortunately, subscale most the is customers on simply customers The and too poorly taking here, these complete companies. capitalized. disappointed result bring average, on notice time, emerging. At aren't often

which we peanut importantly, the all investors will – drone that's by being the services for and our Ondas The in think helps valuable by three opportunity. emerge command of context required play, market the see think addition, plan. see of and way regulators drone has market across providers, drone growth billions growing TAMs to spread investors. capital In in the large huge that, industry that will economy rewards prove years, leaders to focus reemphasize, butter, droves undervalued, too Airobotics these are be our The significant solutions discussed valuable. find and in to market so investor are most happen, scale believe thinly are and shares economy and any by and should I will we deliberate bring talent, is to for only believe of segments. with value industry next is believe needs pie, adoption billions may Virtually commercial and to we that significant to if investors, and want autonomous with believe are many survey drone winning sophisticated we drone why The the has many We can of I huge. expanding look forward for global this which leadership five dollars. role for submarkets, leading industry dollars services will technology and The the will be be is reiterate consolidation, understand providers to by on and embrace automated continuing where We regulators ultimately you wireless industrial integrators confirm growth. targeted backed UAS investors. UAS We be needs our scale leaders, as customers. In position, you and in with valued which markets too we our like again to companies. the our cycles platforms capabilities drive want and help a customers, investors engage industry measured platforms we drone the to we call, and on we demanded our leading last the AR way to

bullish want the I Q&A, and over to Ondas that for call business turn we is reiterate outlook the our strengthening. to we Before believe on remain

in we We contributors this that our starts terms will bookings of have strong results American turning in revenue We Robotics drone networks investments on soon, believe be made focused platforms into well. are as and Ondas generation. with and with the major tangible Airobotics

inflection an excited us momentum Operator, the in set am to up revenue for big at are please point open now We Q&A. XXXX. growth customer to call build I for

you. Thank

ahead. session. question-and-answer Tim [Operator the Instructions] begin Please go Oppenheimer. comes Our Horan question now from will first We from

you questions. applications, as other update few us explained maybe Can do A earlier. you timing of Stewart has on the think

to of we these the railroads, certain timing that's XXXX. And the why XXXX. So seeing in three-year into come, to with on the orders focus expect is continues see moving we're build-out as deadlines in a be you're terms -- still and more

add be I'll did my to Airobotics clear. just answer And just any projections, before include not

to as some Optimus So other to for deliver and that certain order a XXXX. system, are see more manufactured orders that we already in amount as well expect we're there's to working manufacture Dubai that

share plan the going we're to on deal. after so And more plans details to close we those

investor. Got more it. of the money raise potential additional the convertible to on from And just kind that lastly,

criteria at option. Do looking a it's forward what you do they're reinvestment? know to think their I

They shared have the criteria. not

right, their in at XX-month option. that option it is You're

lot, a Thanks guys. Great.

[Operator Instructions] ahead. next from Mansbach Capital Group. And question our Carter go Forte comes from Please

gentlemen. morning, Good

Carter. morning, Good

have questions on guys you've to all had, you just purposes. couple want congratulate to like a clarification I’d I and developments the for I -- So, that of

heard of product Dubai believe that as of $X or what the the I drone. correct? that for units, Airobotics what there you I contract, or heard I read that think potential is XX So read have million and I Is per are I

million. is orders. order, for be two for we the will fleet, it that The reflected And role of beginning pricing which for $X was in the correct. systems order initial is future think follow-on That a

you’re it's what a million saying opportunity. basically, So $XX

-- And please. Exactly. the cut Yes.

maintenance in revenue as continued of operation and systems. I those add for some there well there's also that recurring

Excellent.

nature that Now then get revenue? type that's could I benefit, very also similar in same hear another there's the of one that the

UAE. pipeline, does an active the the including have customer robotics So in

greater that expect hold and that I in business will describing should there, we think we there off probably more detail. So on be

Okay.

million big number. $XX thinking we're a is on So this contract, which

So last for me. point

the looking seems being is now like foundation So that house. over to been build I've it and we're four last built the involved, the years

that stick So a in I'm assuming hockey your year XXXX. words is this from

I'm you're start QX Now right for the be to out clear comes that XXXX, you XXXX? what looking I'm your when be understanding you giving being of saying, more in what and case, for in able better assuming and projections will have

industry, that's the including believe the we Rail dotXX broadly do I rail working are communicate as And platform and in adoption to the the plans rollouts. case, the said remarks, more for in the prepared Carter. with I the customers, MXP AAR network

It's are more to that a be awareness for the for more expect the for it's just going as builds. lot get going be but visibility. plugging investors, engaging to We network, industry be to to going well. also into helpful who helpful as example, Vendors are

you, success, and guys the look I continued Okay. you wish ramp I forward guys. Great. Thank XXXX. in major to

Thank you, Carter.

comes from Mike Markets. Please Capital go Northland next ahead. The from Latimore question

to model sell Do need with of this On approval -- Robotics, be the Airobotics with the be does all? also, And you of this the the of the Dubai you kind -- more to next deal, under then what would up regulatory integrate coming of say? revenue in And get Airobotics end revenue likely the look American sort selling change contract? year get from then at move more recurring majority kind let's US? additional that as AIROBOTICS you product, revenue to that Airobotics

Yes, some of Yes. I can take that.

expected of do similar I certainly see revenue represents order other think forming. a the opportunities portion some we although the XXXX, in significant Dubai

there's said, this a on do after it's right say but much once city as the So closes. for we'll I so now, is we like note that when the be a rate faster that's about deal a and more more the because other can to Eric lot customers think feasible important of world ability details – success that place only complete sharing And comfortable a same as Robotics placing at Dubai, American orders. this that thing around the feel the see to more the duplicate at order at becomes well.

also a has the but recurring of revenues, side, sales. hardware mix Aerobotics revenue On recurring

mix that is Robotics the continue. to Aerobotics. heavier So model pure think than going I subscription American is on

over to So there's of mix be that the years. coming a going

I think there was I one more which forgot question, now.

Yeah.

you for particularly other in get kind to regulatory of the U.S.? regions, what Just in approvals to need it additional sell Airobotics

question. good a It's Yeah.

our So that decided it one set, States, we driven it's if used ours. this being the Robotics the is approval by property. has American And require fully depends because in of how a like approval it's to unique some it intellectual being that's in join forces used, of manner United would autonomous reasons an

very to operate that the unique we System certification and one which does in way populated that what's though, to able Airobotics far the the areas. Scout so to very has things that Probably the Optimus Airobotic And allowing integrating process, called important being that anticipate of U.S. along to in is into they're Type important fly note is the over

expect the So States, areas. American United Airobotics cities is that's not But that and news typically as we very in in success Robotics the topic something extremely has some year. big over next Dubai the duplicating that around far path, pretty pursued, as we because rural operate along in far that

guess... I

to also they we -- out there have XXXX. signaled we building add expect -- they're next do that Dubai of than have double additional also basically publicly Mike, throughout the starts expect city just rollout on XX more and indicated Airobotics Dubai year. the one-fleet be And going XXXX. they customer by that fleet, to I'd orders systems brings thing order that, have deployments. and system And fleet one the in more the end so the of do that the They will

ramp. will So be a revenue this meaningful

about Got approvals guess next it. And for there then Robotics. ones American talked Are I just last more you year? on for the looking generally, additional in approvals, you're three

Yeah.

is somewhat, continue expect which good now sites, additional We is routine a for adding thing. becoming to us,

details expect that the what of going So certainly another is, right I'm part out that's we're going to hold of that, be for couple There's, answer for going we now, to see. approvals to yes. but

our I to continue we're think these with going approvals. lead to extend

Okay. Thanks.

to turn to, over the I the Eric question-and-answer queue. our There are remarks. concludes no Brock back like session. any in for conference questions would closing This more

you call, Operator. to thanking close I'm for going you, Thank by the attending. Okay. again

a welcome have to are forward our the meantime, you you. work ahead. the investors an progress. lot the And We hold do a call. always to keeping great in Thank day. expect analyst call We And ends this acquisition. you of look Hope closing after to informed on reach have out. Airobotics And

for attending concluded. presentation. Conference today's has now Thank you

You now disconnect. may