Ondas Holdings Inc. (NASDAQ:ONDS) Q4 2022 Earnings Call Transcript

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

Eric Brock: Yes, so I’ll give you the same answer as we did at the event of February. We believe our cash needs are modest, certainly relative to the opportunities we’re attacking, and they’re largely around working capital build, of course, fund growth. And we do think we have access to capital ranging from non-dilutive sources, for example, prepayments or credit lines, vis-à-vis the orders we have and expect to get. There’s other things. We mentioned the joint venture and that sort of model as we’re just — as we’re growing the distribution for the Optimus platform, those joint ventures can fund certain operating expenses. So, and of course the equity markets are potential as well. So I think we — our cash needs will be modest, certainly relative to the growth and opportunities we have ahead of us and the strategic value of our technology. It’s a really big customers and partners.

Timothy Horan: Great. So lastly, I didn’t really understand the answer to Mike’s question on . Your operating expenses, I think were close to $13 million on the quarter. You’ve taken some steps here. Can you talk about what operating expenses will be maybe in the first and second quarter? Yes, I just don’t know the origin of magnitude on the expense reductions.

Eric Brock: Yes, they’ll be lower and probably to call it in the $11 million range for OpEx.

Timothy Horan: Okay. Thanks a lot.

Eric Brock: Yes. Yes.

Operator: The next question is from Mike Latimore with NCM. Please go ahead.

Mike Latimore: I guess just two follow-up questions here. You talked about developing or working on artificial intelligence within your drone program. Can you just highlight a little bit more about what the end application is? Is it object detection? Is it insights and changes or just exactly what might the result of that investment be?

Eric Brock: That’s a great question and I — I’ll ask Meir, if you could shed some light on it. I’m not sure to extent what we we’d want to talk about, because I think you’re addressing specifically the announcement with the Dubai Police. So, Meir, is there something you can say specific to what we’re doing with AI and incorporating that into Optimus and/or the counter drone system that the Dubai Police ?

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

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

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

Meir Kliner: Yes. Again, I will say in high-level, not specific on Dubai Police. The docking session has already deployed over the city — on the city will give real-time video through command and control — it can be remote command and control and operated automatically and just transfer the video to the big command and control. And cover the whole city and I remember to all of us that one docking station can cover 80 square kilometer. It’s about, I think 31 .