BOSTON - Ondas Holdings Inc. (NASDAQ:ONDS), a provider of private industrial wireless networks and drone data solutions, announced it has received a 180-day extension from Nasdaq to meet the minimum bid price requirement. This extension allows the company additional time to raise its common stock bid price to at least $1.00, a compliance threshold set by Nasdaq.
The Nasdaq Listing Qualifications Department has stipulated that if Ondas's common stock reaches or exceeds $1.00 per share for at least 10 consecutive business days before the end of this period, the company will regain compliance. Ondas qualified for this extension by meeting all other initial listing standards, except for the bid price.
Ondas specializes in wireless data solutions through its subsidiary Ondas Networks and in commercial drone solutions through Ondas Autonomous Systems, which includes American Robotics and Airobotics. Their technology supports a range of critical applications for industries such as transportation, utilities, and government security.
The company's achievements in regulatory milestones, particularly in the drone sector, include the Optimus System being the first FAA-certified small unmanned aircraft system (sUAS) and the first drone system approved for automated beyond-visual-line-of-sight (BVLOS) operations without an on-site human operator.
The extension granted to Ondas Holdings is based on the company's ongoing efforts to meet Nasdaq's requirements and its intention to address the bid price deficiency within the given timeframe. This news is based on a press release statement and does not reflect any endorsement of the company's performance or future prospects.
In other recent news, Ondas Holdings Inc. reported mixed Q3 2024 results, with revenues falling to approximately $1.5 million from $2.7 million in Q3 2023, and operating expenses leading to an operating loss of $8.7 million. Despite these challenges, Ondas secured $14.4 million in orders for its military technology platforms and received a strategic order from Siemens (ETR:SIEGn) for Chicago's Metra rail system. The company expanded its 2021 Stock Incentive Plan, increasing the number of shares available for issuance from 8 million to 11 million. This amendment was approved by shareholders during the company's Annual Meeting, with the decision confirmed in a filing with the SEC.
Ondas also raised an additional $15 million in financing and announced plans to improve cash efficiency. The company anticipates substantial revenue growth in Q4 2024 and into 2025, supported by a maturing customer pipeline and increased military and rail market engagement. In addition, the company is preparing for increased production capacity and marketing efforts for its Iron Drone and Optimus systems. These are recent developments that investors should monitor closely.
InvestingPro Insights
The recent Nasdaq extension granted to Ondas Holdings Inc. (NASDAQ:ONDS) comes at a critical time for the company, as reflected in its current financial metrics and market performance. According to InvestingPro data, Ondas's market capitalization stands at a modest $51.52 million, with its stock price closing at $0.67 in the most recent session. This price represents only 33.8% of its 52-week high, underscoring the challenges the company faces in meeting Nasdaq's minimum bid requirement.
InvestingPro Tips highlight several areas of concern for investors. The company is "quickly burning through cash" and "operates with a significant debt burden," which may explain the pressure on its stock price. Additionally, Ondas "suffers from weak gross profit margins," with the latest data showing a gross profit margin of just 14.82% for the last twelve months as of Q3 2024.
The financial strain is further evidenced by the company's revenue trends. InvestingPro data shows a revenue decline of 28.41% over the last twelve months, with quarterly revenue dropping by 44.44% in Q3 2024. This aligns with the InvestingPro Tip that "analysts anticipate sales decline in the current year."
Despite these challenges, it's worth noting that analysts have set a fair value target of $1.50 for Ondas stock, suggesting potential upside if the company can address its financial and operational issues. However, investors should approach this with caution, given the company's current performance and market position.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Ondas Holdings, providing a deeper dive into the company's financial health and market prospects.
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