Ondas (ONDS) 14 Mar 232022 Q4 Earnings call transcript

Welcome to the Ondas Holdings Incorporated Fourth Quarter and Full year 2022 Conference Call. All participants will be in a listen-only mode. [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. These risk factors are discussed in Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. to events update required or obligation to forward-looking by no future reflect circumstances, undertakes revise any or statements law. Ondas except as this note, event being Please is recorded.

Brock, turn over I'd go the like CEO. Please to to now Eric Chairman and ahead. presentation

Networks good spending and want I shorter for our for a interest business with everyone this us operator units. business by time, We our Event. appreciate just both a Company. quarterly and we update, to conference in since Ondas for will review bit our and that than quarterly you, used development few Virtual call. started Ondas be we met Today’s outlook Autonomous the At welcoming comprehensive at to morning. Thank weeks for detailed get back Systems a to are and time provided a both call XXXX you’re we your Investor our

our provide with bit to will a and financial focus conversation plan in we we Networks Ondas on units. both on today updates Systems In and Ondas that activity with the review customers So field business performance partners. in Autonomous and recent current detail more activity

start picking look this continue Ondas you see a year with you. momentum, activity forward customer the is to had we’ve strong to As sharing of to and up details

So let's go.

Mozer. President, I’m happy to be joined CFO, Derek Reese today and our by Reisfield; our

call Networks; Ondas. Meir it's Meir the the and Founder operations Ondas to we Airobotics today we drone him Stewart with my now and a join we this the Call President new Airobotics from combines of Autonomous Kantor, of Iron hear Systems OAS, which and with Kliner, In of Investor American additional or acquisition, Robotics, business Ondas will on CEO. us have Founder pleasure in of addition Recall the and OAS Airobotics is closing Drone. connection that unit established President the

turn the agenda. to let's Now

we review, our of the Derek then and will recap I some current units ask where outlook. business the update over business activity. we will to brief for around commentary call financial state our Then will the a will Stewart comments XXXX hand with will start the Ondas and provide a OAS entering briefly We business to about and Networks call XXXX, Meir for business I provide

previously Virtual Again, be since deep will February, quarter. Event mainly updates events here we’ve first the at focused and driving recent on a ground provided the dive the these on we Investor are in activity in

wrap and the We the questions. will call open then for floor investor

be business in a of both to Networks year order in the with ended hand we Siemens and because important and was Ondas, where our and strategically successes with the momentum Ondas technology this a a good the event scalability We very Ondas Networks, from for initial validation XXX commercial with fresh network networks is expect volume orders XXXX signifying our rail our significant OAS megahertz XXXX beginning. At units. platforms customers. secured and the We year large adoption are

more becoming megahertz The all private today. strategic network the is frankly more and value in XXX of apparent networks

safety to value We have dotXX-compliant Ondas's efficient technologies. capabilities enable we private occasions number operations, ability FullMAX outlined train system the networks new how call specifically adopt broadband like and new on customers of and wireless a industrial provides how safe and the rail with and that advanced

and the becoming networks track to more safety implement safe crossings. and that all obvious, With safety. rail on into at systems technologies conversation robust again, and Through which is the locomotives attention national The the are enhance to this make our rail highway network happening along railways today is has you need nationally, cars this one on thing and wireless focus efficient ever XXX be attention, implemented with clear. megahertz will come

expenditure the always wireless we Networks is to budgets talk the about connecting capital facing sector, is address accelerate We technologies. around today. these rail which is poised the will Ondas large to believe well-positioned industry in conversations rail are challenges investment help more and technologies these will FullMAX has that around happen, this a how lot Siemens in that Ondas safety and today. active platform

is and we demonstrates fleet in deployments the markets. have groundbreaking. the we autonomous At and in industry UAE drone customers that development OAS, beginning citywide in we secured in adoption also lead system begin short partners populated of have nothing orders unmanned Airobotics the drone as Flying infrastructure commercial defining in where an setting is a is the from of Optimus achievement massive are for This Abu unparalleled seen UAS Dubai densely Dhabi. urban initial systems urban a these and

believe in drone positions Ondas to increase entered year be we of excellent of significant and a our a put revenue, going an we to XXXX IoT investment in long the believe XXXX us which for help short, to the In will our and believe critical on businesses. profitability. cycle Again, Ondas drive we is scaling beginning in company support mission path

the am for over to hand Derek now call to I going review. the financial

Eric. Thanks,

Ondas remind I commercial that statements Autonomous for our to preparation I investment reflect started, our Systems within Ondas business get larger our financial investors Networks rollouts and units. As want and

month, that update outlined commercial last believe we in see our As adoption will in we XXXX. we investor

service been railroads Siemens autonomous with have with by product primarily field and for revenues to periods development Class addition FullMAX presented in and programs drone installations. sales the activity including for customers, product Revenues X generated

systems FullMAX in XXXX believe growth we establish the based serving the to this has to wireless valuable broader been expect in coming we years. deployments and course, Of Optimus which significant opportunity, lead and activity in to

quarter FullMAX year. of Siemens. decrease orders we QX a programs Revenues were well $XXX,XXX European approximately development XXXX, the revenues Siemens, were generated as HOT This was from and advance fourth for revenues from quarter development last product the by $XXX,XXX. driven For recent during sales as the as with product by

prior XXXX Operating expenses revenues gross million of $XX.X million during year. fourth to of compared level the pre-commercialization the for low as XXXX at in the quarter $XXX,XXX. low remained the profits upon fourth quarter with roughly Based increased period, of $X.X the

due operating to The development in compensation the an fees Airobotics in associated to consider and primarily professional with expenses in research expense. depreciation, the increase We an expenses, amortization, expenses acquisition-related rise with be and stock-based acquisition, along increase was non-recurring.

price, We the of also of recorded to $XX.X impairment a million is the goodwill, We prudent. performed charge Robotics goodwill. reflecting technology believe an the valuations comparable regular in goodwill the share related for small [ph] and given dramatic acquisition. decline our the charge of and decline we The write-down in emerging carrying analysis write-down non-cash accounting impairment in value is American the

do believe we understand of the the business we outlook write-down treatment, very has our on impact on units, remain not the portfolio accounting significant While and positive business both strength the our and a goodwill our IP business. across

million Aside from quarter totaled the expenses of the $XX.X million $X.X XXXX. for goodwill fourth charge, impairment non-cash

$X.X million of the from was quarter That increased approximately Depreciation approximately by the compensation of amortization from XXXX. the Stock-based XXXX expenses the in $XXX,XXX quarter. to fourth increased approximately XXX,XXX year. in $X fourth quarter fourth in and prior million

non-reoccurring. fees professional Operating Airobotics of advisory acquisition-related also to consider these be related included again, XXXX we the expenses the quarter Once in to expenses fourth acquisition. and

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

our over We this of costs restructured and activities lead lower drive significantly forward believe of for our Airobotics the the services believe in the capabilities to Drone acquisition, combined completion the necessary Autonomous we will the opportunities expansion at made to entity. going additional prudent revenue investments With the ultimately we We segment. operating were long-term. larger and

The of expenses related development non-cash meet includes for fourth million EBITDA expenses noted fourth the quarter, non-cash the $X of million non-reoccurring aforementioned and to business operating the an both XXXX. EBITDA fourth a to activity This loss the loss in of in an million for the preparation of the with Company non-cash loss cash XXXX demands approximately a loss and quarter of excluding compared realized We and $XX.X $XX.X growing as Also quarter business. fourth for the million compared as XXXX. quarter increase expenses. to $X generated the these adjusted of

look let's year Now, full at results. our

revenues million XXXX. as Siemens Revenues year during well the full advanced of European XXXX by product full revenues from were XXXX, with $X.X and our HOT Siemens. development was were year million. as during we This the the decrease as product a generated period sales order $X.X by programs from of development For driven the

pre-commercial of gross last year the XX% of low-level approximately million roughly to to higher million gross year margin period. compared our sales. $X XXXX. a margin reflects significantly the of to of this increased Gross XX% technology profit platforms. equal profit gross profit Gross the in with for of This for XXXX period improved was prior Again, $X on adoption

the XXXX. prior development be a gross and the historically sales improvement calls, in As and nature margins lumpy mix services, quarterly in to larger described and we to a services due margin have product is volatile of our of proportion margin basis. on product The programs high primarily sales due can customer revenue during

increased the to amortization along development due in Airobotics in in with impairment. and of primarily with XXXX Also, was acquisition, fees million and in professional Operating the compared $XX.X operating as the increase to rise expenses for operating compensation expense increase goodwill associated expenses, expense. million to an all the stock-based $XX.X to charge due related research of non-cash was year. depreciation, expenses prior $XX.X to the million an

expenses charge, to $X.X increased year. stock-based amortization XXXX year million million $X Depreciation increased Aside for goodwill impairment in $X.X the the in million non-cash that from $X.X including prior million, of million from compensation million approximately totaled $XX.X from XXXX, $X.X XXXX. by of full the approximately and expenses

the to and we approximately Operating acquisition-related consider non-reoccurring. of related these Once advisory be again, included Airobotics fees also in XXXX expenses to expenses acquisition $X.X million. professional

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

We With to the significantly lower capabilities will long-term. operating the of the Drone ultimately revenue acquisition, our were we’ve restructured opportunities and larger going expansion made this entity. at services We combined drive completion believe investments prudent over necessary we Autonomous of the the to segment. the believe the activities our in and for additional forward costs lead Airobotics

includes expenses. to these XXXX. loss EBITDA million realized year. year of the loss $XX.X of The $XX full million million for generated XXXX, $XX aforementioned as compared for and Company excluding for This $XX.X adjusted prior non-cash We in million an operating non-cash XXXX expenses loss approximately non-reoccurring with the the loss compared an as approximately EBITDA

increase demands business and development cash growing non-cash activity the the As preparation a and in both related of to business. noted, expenses meet to

Now let's million XXXX with a ended the of turn to quarter fourth We cash. the balance $XX.X sheet. of

we maintain and notes, the minimal position. position was by million equity convertible of long-term $XX.X Outside cash debt the a convertible aided offering. Our note new a

equity our course, made the reflects investments position Of our substantial in technology platforms.

will hand Eric. call to the back I now

Well, Derek. thank you

begins the As you know, Ondas substantial XXXX made have we business development. be we year believe the investments to monetize in will our when

generate million of and $XX We for reaffirming revenue are our expect revenue for year. to growth and our $XX outlook target from full to February million significant the

EBITDA to We million losses the expect to to $XX $XX million narrow year. adjusted for

demand Our million over customers $XX and supported in move existing from our we is as by outlook expected XXXX. backlog visibility through into

We utilization improve to expect cash significantly.

platform we with as efficiency optimizing customers. lower integrated revenue cash OAS operate company leverage expense will dramatically companies the costs operating Optimus similar where at from on the and dynamic a at focused A gross exists the combined expected Improved field profit. growth with Networks Ondas with in and comes believe

Stewart Kliner industry field partners. We're Now on to and recent business we with share activity to going status Stewart? our national Stewart, us ask details review the Kantor XXX transition to current rail updates will the on customers safety. and value unit around with in technology will with and rails megahertz start in context share the conversation of update who of and the the some on around the Meir

platform. wireless is Great. Siemens our and Thank believe Ondas dotXX well-positioned of with our accelerate partners We Eric. our strategic technology adoption FullMAX to Networks, you, along Mobility the

adoption have technical their technology past of Siemens now. the the the is we, of MxV Association Rail happening X in Over dotXX that worked groundwork wide the the American for Railroads the diligently years, Class megahertz band. to lay XXX arm our and few adoption rails, And based

we CSX and behalf In we've in with from also orders to next customers closely Class the We're look the deliver on our volume Siemens expect expand book, quarter. accelerate and as BNSF on Siemens working as CSX, rail begun new orders deliveries to in well launch order from BNSF orders this for follow-on additional and initial to the and to of Xs. quarter,

network. of seven inroads aspects having all megahertz are established adoption, have in is American Xs Siemens engaged new for actively a our safety data ongoing as network locomotive as program XXX Internationally, for the well critical we a Currently, European various Class the also market. Indian for with on applications. This -- with the frequency band North activity we Railways including American radio of

have activity business we activities emphasize and the in like these also development and transit lastly, ongoing We'd anticipate new we rails in international to and in that America North And passenger with is safety -- markets, rail or to with the strengths. rail we outline core aligns on few to specifically here our how us focus not our in and safety new a customers, recent recent will national moments markets.

scale wireless technologies. require networks safety edge North emphasize automation are their systems. mission rails to connectivity, continent-wide The implement systems that modern large operate and to to integrated want and critical American We and fundamental operations technology computing train train

has to The center rail everything safety is operations to and and and heavily train invested do. they invest front sector their continues in

many which and our XXX.XX core of integration play. technology of is remote geography, spectrum often radio safety the However, they is reliance licensed where technologies reliable highly wide is with challenging challenges, communications. into comes the This on terrain. railroad has traverse the of Most

in recently. recall applications, primary megahertz awarded the hot XXXX provides the applications, a including defect It for includes and that hot continuous implementation that which the about FCC redundancy Also, spectrum, of support train integrity XXX expected the one been bearing detection, was rail also increased detectors based monitoring, for for crossing cited new award you the when May, hearing also may safety advanced known of lot reasons rails we've control. positive detectors, as box the greenfield

other with and order the capacity wireless would in Siemens Over data private a higher the communications years, and own to to Ondas, and standards-based flexibility the they and rail develop the XXX robust vendors secure last be has megahertz. X with starting industry system that ecosystem wireless worked network and provide upgrade would operate

rail has standard. work Colorado long-term capabilities and standard adoption support Rail this rail wireless determine integrating the has their And XXX.XX of how the operating IEEE new additional We're working applications be incorporate is as will MxV may XXX.XX Some taken through AAR also rail cases as implemented been they own a implementing in cooperatively the where you will MxV the Pueblo, with use existing and [indiscernible], that dotXX inside evolving to process on recall into by place operations. that focused railroads.

comes and Now this applications systems use and our or applications rails to devices future purposes. to host see and let's our that detail turn whole XXX.XX of address safety on of can some communications slide, attention to plan the safety and play. On operational that use technology where the the today you rails wireless in into a operate

XXX specific the the on frequency XXX of rails and owned applications megahertz Most current megahertz. XXX operate networks megahertz, at by XXX megahertz,

protocol, at certain digital certain problems. But this? most needs the technology move internet certain the introduced networks were in our networks use from are meet in home like to we and time to wireless it general XXX.XX enterprise times advancement networks, rails opportunity like seizing these is with protocol why today So we on the IP Well, and application and evolved networks. to over of same purpose address data call and to away specific frequency the what all

time, of same redundancy and offering applications applications. current planned the These can support multiple networks at and expansion

to as home office, as at work and don't your you now we another one whether their and is occurs phone cable. private or don't that or must Ethernet networks capacity. As frequency even your connectivity whether in rails or cell direction care know the build really Wi-Fi expand go same applications on your you're a own right the order network or know in over This Wi-Fi, long an

travel need not anywhere places be are cell Mojave like seen. urban their networks addressing to remote in to illustrated the to dense because connectivity a they the private they even with the nationwide tower Remember, have for need most most connectivity, and Desert from areas areas by

host rails those of slide and now see megahertz, on of mega can of to you network quality service get set with this with high XXX these what the levels. standard XXX.XX So XXX.XX the at multiple and reliability, on the the implementation same [ph], applications importantly

Let's is capacity the The the telecoms HOT the news [ph] detectors. example Ondas we the our same in costs. technology had hot to new and take operating detectors been modern ongoing lately based [ph] on for It's appreciate box foresight box AAR time on just standard when forefront to one network the and critical the infrastructure. wireless rails network the see of has defect that without of with the tension our more exciting conduct can national and an rails the so value come the vision safety have focused onto

Eric. this hand back now Eric? over to I'll

reemphasize work pursuing, you has I Stewart. and ongoing enables difficult that been The wireless Well but improvements purpose the are with the final thank that want efficiency rails rails comment. to your safety And our implement. to to always of to are technology the introduce

it is technology critical of see to of indeed, the when forefront for on is time So to our the us an safety value so infrastructure. national focused come the attention exciting

I updates work at an on on and to with he partners. Systems. customers Ondas share some Meir, our transition [Indiscernible] Autonomous When hand activity will to update

Dubai Police's Intel. made with we we You relationships will SkyGo highlighting touch on the recent with in expand have upon deployment our a and UAE the the announcement also

course, to Drone growing both generating Dubai demonstrates We our Optimus into the for and homeland share integrating today are Dubai public brief and UAS how are Summit, Optimus where their will before security. f in we World amongst commentary with of are This tremendous Iron by in want platform to But video is capabilities our I and a real world with in safety counter Meir, implementing Police Police the the awareness vision safety video. vision operations. public they some Police. start the this systems around the I a play created hand interest was

put the now. video let's So

[Video Playing]

So Meir, please proceed.

you, to call with Ondas. Thank want for be it's Eric. investor saying pleasure by start I here a my first to And

American I where team achieve things. Ondas how today. Before our to forces we worked Together, to take ability extremely get proceed, is excited share brief to join We I Robotics to a and are at with the want we to moment out and the have great Robotics.

January running in business ground after System and unit. the Autonomous the acquisition [indiscernible] have global We closing Ondas establishing

attended momentum Ondas has fleet the position We are in deployment put use city smart reliability and a our week which system our markets, Dubai across combination where seeing Optimus and the the in to we as of security acquired as cases, was by and largest Optimus leaders the the security well for our of United [indiscernible] current UAE and World globe. the relationships attended us value [indiscernible] the expand to customers in the safety our online with with safety recent global and including Police customers. strong safety last most urban public orders States. The platform and validate to tremendous for This technology bring is widely Summit, in public sophisticated

police their security. the infrastructure the pace future Eric that technology was and highlighted as Optimus setting platform scalable share the and video, Dubai of in vision we as public they smart infrastructure. with We safety urban drone is outlined video As the multiple segments online today vision by the police here believe the are for for showed in

relationship presented more Drone counter the huge but counter we solutions UAS capabilities Iron the announced want and the from launch our system. in Iron of Dubai the product system, public interest to expanded share summit, highlight I the UAS will after exciting is at end We the I feedback about our moment, an the with Drone. on early the In also an a summit. details Police promising. specifically system and of It's At the

system an part Iron As a This the of entered Police came Drone this purchase demonstration. successful agreement, expressed Dubai systems. after to

to agreed on to public global Autonomous together can and AI addition, safety the that provide work around ended to development capabilities by Systems solutions police to enhance Robotics further markets. In continue our technology Ondas

Dubai in important Infrastructure expect orders up We Urban move XXXX through the partnership. we and to continue installations as and we to grow this scale within Drone

At interest clear is there the aim potentially customers and partnerships both summit, coming Iron with. interest in large growing establish both which and chip to it globally that and Optimus is blue Drone we industry That extensive for systems. was rentals, quite

Police that Optimus a previously the We announced to support has have program the city. city platform to begun safety public adapt across enhance the Dubai the across

systems basis the installed on and and have our a with regular We reliability system. of availability operating are daily

expanding great and forward footprint the the fleet We years. coming to are in look start to off a Optimus

UAE. application forward the announced UAE. take to data the use into $X.X expertise the SkyGo SkyGo vision here enter based where addition provide to our aerial services Similarly, we a to to cases as across drone to excellent for details partner in million with connected and to order in near Abu we in we activity future. smart bringing intent sharing addition can an from is SkyGo joint the venture leadership more UAE Dhabi incredible the and is in services in multiple look customers about city

and announced where security services is adaption recently believe to market an platform. Optimus agreement data addition of global mapping we area we and our embedded the the service construction safety firm other We providing with well a our both been inspection for semiconductor system in of in suited extension services data insightful applications. management surveying, have project and manufacturing Lastly, our

construction project and The large budget in in to the and analytics to expand and developing manager, time strongly offering We insightful further a from track on vendors savings. strategies this the cost and From to information market construction markets. are standpoint, very data able believe keep for a are growing and significant a potential a track project portal is to and central provide progress. addition suppliers, clients, help project efficiencies

The into Iron system. and transaction to focus Drone Lastly, UAS counter solutions required insights drones. want Drone, formally Iron last military used counter significant is summer drones unique closed markets I hostile announced Drone are has weapons recent as the grown the and week. threats acquisition causing hostile of last that to small with civilian on has low-cost both years. We of the in being capable Iron acute are threat damage. dramatically one particularly in The and

is that in the as Iron module see container introduced system pod, deployed is which radar, radar can is platform Drone autonomous a on slide. has here or small equipped [indiscernible] speeds is drones hostile sensitive UAVs. threat. an intercept When with drone a is [indiscernible] be can at the high location, The this identified which you deployed extremely The radar to near the the which on capture operation. netting one jamming as while the capture landed, by mid drone. the UAS A safely hostile is it counter frequencies system be method hostile signals or ground. disable can is counter drone so methods, people The that that safely that differentiated can and the GPS evidence, radio of assets parachute UAS ensures other to secured of physical use protecting

potential business countering to they Iron public Jamming sensitive and cases and critical areas disrupt airports, locations significant can as infrastructure for government as drawbacks such Drone. services drone in communications. It buildings, methods obvious high or addition We civilian security. market use protecting valued hostile homeland civilian near have significant see has

We XXXX. the hand can call Eric, also to revenue I'm closing to you see and in product you, potential this going provide generating to be remarks. back so some military expect

that for We successful build end investors. on a wrap couple large right want we question. up we management are you believe to to Meir. remarks I company delivering a addressing. shift we defines closing are the this with is And let's before track Well, of markets to committed large value high to the thank reiterate,

well-positioned the are of which our funded monetize proprietary you, have been platform technologies, substantial efforts team. valuable We investors, to by and our our

in the wireless generation to technology component as safety Ondas poised national excited believe have is for valuable put We be networks We safety next Ondas. of creates create activity rail work are the a upgrades. upside safety as at for critical level with around that particularly hard Networks we to critical recognized

in of Similarly, with drone initial fleet deployments great cities. urban major a customers, infrastructure off to our launching are start Optimus

States, efforts value advanced our and in sectors marketing long-term with to s-curve inventory Optimus including build our such drive the we in customers system customers public we to globally, as As the both important gas highlighting an safety expect United in adoption, and oil investors. and of

know shareholder focus We growth I on a efficiency to expect our we That be Again, a and believe in for this for demonstrate think is you. year going will to value, I be share it will price. our is drive for our which team ability great important revenue is focus reflected an as Ondas.

let's any if Operator? that, With see questions. are there

[Operator today comes go from first Instructions] The with NCM. Latimore ahead. Please question Mike

Good Thank Great. morning. you.

Eric, guess, that when that when weighted? half how to about way you I do backlog, think the recognized? or $XX second or So million will will, half it get weighted Is more first

the revenue I through think quarters. The you're in the going target. recognized of to have year going couple backlog of see firstly, over build a first the terms we today is to largely be

Abu of of systems that'll -- the on a and rail we’ve then for So announced Dhabi drone as ramp the that platforms. the we'll with at recognized quarter. Dubai some has second behalf this larger be of in similar orders mentioned, the And ordered quarter starting Siemens on shipping Stewart terms revenue you'll see be the in

Okay. and what first second cash, then about terms quarter? OpEx, should level in And of in we the think

comparable to It's you've Mike. what been expecting,

… So

Okay.

the one been out ... cost able as done restructuring of of lot things robotics the the of take a Robotics together is business. we've the to American with -- putting we've

We've substantial and shipments. leverage, operating fairly is as start sale orders essentially to more continues So, opportunity, a expense we that offer the but point a that and platform Ondas add modest we much Networks need efficient quite I'll it's does operating a with a do again. it the operating grow incremental and won XXX made but megahertz, also spend. outlook the then And larger

if comes Dubai don't fair Yes. that from? about would on that the the from business, logical is you And Police best come most we're for drone prospect thinking So place incremental orders it I mean, orders then here? is to the new it say have, the

as more will also we large U.S., And see sure. because but most we place, continue, activities very you'll not only think here year, what the market. moving hear the broadly through but we're be region. in logical more that the address we're conversations a are We inventory That's to working is obviously And building the ultimately for opportunity about the which in on the demand the do U.S. those place, in substantial

So …

just sort per Iron I one average the how -- for you charge unit? And Great. last Drone. do price What's know, What that? don't on of,

will but unit yet. very attractive, disclosed I'm do so and the we pricing I I guess haven't haven't platform disclosed defer. to We economics that yet, believe be pricing on going Drone Iron the

Okay, thank you.

Sure.

Instructions] from Please [Operator go Horan question Oppenheimer. The comes next with Timothy ahead.

guys. Hey

And derailments obviously train implying here, this be we've on out build I and the and one on and utilizing you you're when some just other might overall on will thoughts? us rails initial start guess XXX how when much down out So had a anyway, the more what little all update it megahertz learning the that? the could the and that And shutting like build, megahertz spectrum? might -- maybe for and bit an of updated of time. the planning I turn are XXX kind legacy bigger. them accelerate the And they network the sounds can bands about build just give are they thinking more they any maybe horrific and

Okay.

it are to safety, But we do does added spending benefit things, building term be network we couple they around that right, you're going think private relating it also described the start XXX. the technologies longer around we the But -- the rail at does networks have an that the is upgrades. this Ondas of to on and the as private and we National a a solution. Tim, think all to all more safety Conversation part -- of So there's accelerate and do going generally it awareness had with believe

So, relates are we've as their XXXX. in we in discussed legacy have still it spectrum, that the retiring to important they that's the and past believe deadlines

the that's So, answer.

well. are course, there's DOT, as around doing of the Siemens relationship, as to lot are like the specifically very of And place every rail you we as other And well. activity this and and we in a sure add all all work here, Tim MxV seeing would to with expect, related a are we're important with DC taking folks EPA, I'm day, I'll as to you Rail. that That's conversations also agencies legislations And railroads AAR course Congress, of We're and safety. the involved. activity talk

So make we're that can of what DC. in to doing part we sure we're conversation

detectors, that So Stewart new legislation around solutions awareness and requirements during a have that call his it's presentation. ensure like hotbox to bit described awareness to industry and come there's is the together. that there's likely for of these densification want And which to likely we technologies how

highlights train also upgrading backbone. I says the positive the effort many doesn't in That without do we're billions. an so doing doesn't be a going the enabling platform. rail We be which dollars technology. networks that megahertz it'd value was with an And backbone And right? recall And industry. significant that it's the enabling for really the control of control AR happen the train that. XXX the that densifying, believe was billions positive as that are one happen wireless to technology, what a rollout, costs, of network, That of of

would to total update when and XXX out at the this have any megahertz build the So point? Do like best up initial and network you any running? on get they guesstimate that cost for

fact language always XXX negotiated they and back report specifically a FCC, you've is network think to the -- of megahertz about safety the important. and the been It's technologies. this No. matter that the from of shared priority. seen the we from and talking is goes for the why FCC the that No, that's AAR, it And swap, I some AAR

slide. more that we the on in folks the XXX.XX us active put the and very working industry seen with group in a broadly, AAR You've

So you our dotXX see, that's of and they're rail operations. in And all platform the been many into active now rail aspects integrating on lab working public. also

active. So the AAR has been

increases was sense sort TAM, does. -- our the it to necessarily, homes, experience say, doesn't did is this February, overall course, TAM the on I'd we of whether the outlined okay, of say Wi-Fi Stewart the build then we last in. as or in the right, put as also what initial my and size last deliberate And our our incremental effort we -- This make not it of build. call [ph] a we mentioned, there's in

You have it, data capacity, to you use tend right?

all So edge and our we other we thing. PC in one the and now started these phone, devices with have same house or that's one

make networks think to have need the acceleration of TAM do likely see think to an I So, there's the and I of increase. don't technologies, that. course you but probably that today. that to we But does statements in about any formal the upgrades it's --

the to can And sense you per the burn much need quarters? enough cash us a cash have you you model? it current to in Or Thanks. And raise? Great. then on more next make your few quarter, do to breakeven how do give

the course, give they're orders we We working do cash are fund I'll certainly to growth. modest, capital lines, expenses. for to or the event opportunities as joint sort and And relative as capital Optimus platform, non-dilutive February. the model needs we're the certain have you so the largely of to that build, prepayments at can -- mentioned and we get. answer things. and access have as fund the our attacking, believe did joint for Yes, ventures There's venture we're same those around expect sources, distribution think growing of of the We from we we're ranging just operating we credit example, other vis-à-vis

markets So, are as well. the and of course equity potential

the to It's really needs the certainly and relative cash technology. we think growth strategic customers I of we So our and of a ahead value be partners. our us modest, have opportunities will big and --

Great.

to So question I Mike's didn't understand [indiscernible]. on really answer lastly, the

quarter. think $XX were I on to million the expenses, close operating Your

first steps Yes, operating here. the on origin You've in you don't second and about will taken reductions. Can be expense what of the expenses just know talk I some quarter? magnitude the maybe

Yes, be million OpEx. call they'll lower range $XX and probably in to the it for

a Okay. lot. Thanks

Yes. Yes.

next Instructions] Latimore NCM. Mike with ahead. is Please from go The question [Operator

just two guess follow-up questions I here.

you application exactly intelligence more just program. a developing be? result or what the about little artificial bit might about and working what it end detection? Can Is highlight drone just or that talked You within on of insights your investment is? the Is changes object it

-- announcement shed I some extent question I'll with That's we'd to Police. we if what not talk Meir, you could it. you're want I'm on a great light the think and to about, I sure addressing the because specifically Dubai ask

there system is [multiple counter So, speakers]? say Police you with and what something doing Meir, AI we're drone Optimus to the and/or that specific can incorporating the that into Dubai

having mapping the application to about the Yes, municipality level application next change level if I something alert the next time to and for the automation. that. automation. of and like response high-level of We're to things video, try application in to triggering the picture, the can for we the take the by level reduce in the to in specifically talking take the And say that next by to

what expand the gets Okay, just Police to your And great. Dubai deployments these that sort throughout then further the of city? getting would be the up expansion? Is next their of of products to running, use it or first kind for analyst of and them what level

does share this publicly. we're which plans of there's the field this And about in you the bit on citywide, work Meir, say color kind would do think a they've to talked and doing. we maybe how things I can Well, more little

Police. -- has transfer city on of remember can control. [indiscernible]. the Yes. docking command just square remote It's -- command the cover can cover think not Again, The I video XX that video to in about, and will high-level, automatically and all I through station command the big give whole be one and I deployed will the specific operated docking kilometer. us it real-time session Dubai control city XX And on city and to over say already control and the and

that previously, and this systems. at would the that looking they're we around as indicate math -- XX that [Indiscernible] point, coverage to areas the Yes. the we've talked but about

So we the this moving hear through as think you about year. more should we're

Thanks. Super. Okay.

Great.

This I for conference question-and-answer turn closing concludes Brock any over the back our like would Eric session. remarks. to to

Okay. attending. by to again close Well thank for thanking just you, operator. you call the want I

you As get going always, to forward of work we do informed our lot look keeping of back it, do, and at progress. we have to to so a we're

day, So have and great a again. thanks

conference now is presentation. for The today's attending Thank concluded. you

disconnect. now may You