Foresight Autonomous Holdings Ltd., a leading developer of
Advanced Driver Assistance Systems (TASE: FRSX) (NASDAQ: FRSX),
today reported financial results for the six months ended June
30, 2017. Foresight ended the first half of 2017 with $18.3 million
in cash and short term deposits, with GAAP net loss of $26.9
million and with non-GAAP net loss of $2.2 million.
Commenting on Foresight's first half 2017
results, Foresight’s CEO, Haim Siboni said: "We are
extremely pleased with the company’s progress this period in
multiple areas. First, our dual listing on the NASDAQ has been
instrumental for our expansion into the U.S. market. In addition,
our progress with one of the largest vehicle manufacturers in China
demonstrates that our unparalleled technology aligns with our
long-term corporate development strategy to become a leader in the
automated transportation industry. Since then, we signed another
pilot agreement with a leading vehicle manufacturer in China.
Finally, these achievements, along with a strong balance sheet,
have built solid momentum for the remainder of 2017, as we plan to
leverage our competitive technology and expand globally."
Six Months Ended June 30, 2017
Financial Results
- Research and development (R&D)
expenses for the six months ended June 30, 2017 were $1,275,000,
compared to $319,000 in the six months ended June 30, 2016. The
increase is attributed to acceleration in our R&D efforts and
employee recruitment, and is comprised primarily of an increase in
stock-based compensation, and in payroll and related expenses.
- General and administrative (G&A)
expenses for the six months ended June 30, 2017 were $2,337,000,
compared to $1,484,000 in the six months ended June 30, 2016. The
increase is attributed primarily to increases in stock-based
compensation, and in payroll and related expenses.
- GAAP net loss for the six months ended
June 30, 2017 was $26,902,000, or $(0.33) per ordinary share,
compared to a GAAP net loss of $1,424,000, or $(0.02) per ordinary
share, in the six months ended June 30, 2016. The increase is
attributed mainly to the increases in R&D expenses, stock-based
compensation, and in the revaluation of derivative warrants
liability expenses.Non-GAAP net loss for the six months ended June
30, 2017 was $2,213,000 or $(0.03) per ordinary share compared to a
non-GAAP net loss of $1,642,000, or $(0.03) per ordinary share, in
the six months ended June 30, 2016.
Six months ended June 30,
Year ended
December 31,
(thousands of U.S. dollars, except share and per share data)
2017 2016 2016 GAAP
Results Net loss
(26,902) (1,424) (1,913) Basic and diluted
loss per share (0.33) (0.02) (0.03)
Non-GAAP Results Net loss (2,213)
(1,642) (3,355) Basic and diluted loss per share
(0.03) (0.03) (0.05)
A reconciliation between GAAP operating results and non-GAAP
operating results is provided in the financial statements that are
part of this release. Non-GAAP results exclude stock-based
compensation expenses and revaluation of derivative warrant
liability.
Balance Sheet Highlights
●
Cash and short term deposits totaled $18.3 million as of June 30,
2017, compared to $3.8 million on December 31, 2016. The increase
compared to December 31, 2016 is mainly due to the proceeds
received from private placements that occurred in the first half of
2017, totaling $11.6 million gross ($10.7 net proceeds), and from
warrants exercised by shareholders equal to $5.6 million, less cash
used during the first half of 2017.
●
GAAP shareholders’ equity totaled $2.6
million as of June 30, 2017, compared to $4.7 million as of
December 31, 2016. Non-GAAP shareholders' equity totaled $18.9
million as of June 30, 2017 compared to $4.8 million as of December
31, 2016.
As of June 30,
As of
December 31,
(thousands of U.S. dollars)
2017 2016
2016 GAAP Results
Shareholders' equity 2,619 3,799
4,669
Non-GAAP Results Shareholders' equity
18,926 5,199 4,800
A reconciliation between GAAP shareholders' equity results and
non-GAAP shareholders' equity results is provided in the financial
statements that are part of this release. Non-GAAP results exclude
derivative warrant liability.
Business Highlights
- Raised $11.6 million (gross) through
private placements: Included funding from strategic investors
in the Israeli automotive industry, and from Israeli major
institutional investors. This funding was priced below market
value, and received high market demand.
- Achieved successful pilot results
after signing an agreement with JAC Motors, a leading Chinese car
manufacturer for pilot test: Completed a pilot test with JAC
Motors, one of the largest Chinese car manufacturers, in which
Foresight’s accident prevention system was compared with leading
competing systems. Foresight's system proved superior and
demonstrated successful results during the test. The parties have
agreed to explore several scenarios for potential commercial
cooperation.
- Signed second agreement with a
leading Chinese car manufacturer for pilot test: An additional
large Chinese car manufacturer will finance and provide Foresight
with vehicles for a pilot test of Foresight’s accident prevention
system in China.
- Successfully completed proof of
concept of multispectral road traffic accident prevention
system: The new system is designed to provide multispectral
vision capabilities, by combining four cameras operating at varying
wavelengths, thereby presenting a comprehensive solution for the
front of the vehicle, which will detect all obstacles under any
weather and lighting conditions, including complete darkness,
smoke, haze, fog, rain and glare.
- Dual listing – began trading on
NASDAQ: Foresight’s ADS’ commenced trading on NASDAQ under the
symbol “FRSX”. The listing is in line with Foresight’s strategy to
expand its presence in the U.S.
- Foresight’s 32% subsidiary, Rail
Vision Ltd., advanced its operations on several fronts: Rail
Vision conducted a successful field test of its unique system,
designed to prevent on-track collisions for Deutsche Bahn, one of
the largest train operators in the world. Rail Vision also
achieved real-time capabilities of its railway safety system.
Through its unique algorithm, the prototype demonstration validated
the system's ability to detect and classify railway obstacles and
alert the driver and control center in real time.
Use of Non-GAAP Financial Results
In addition to disclosing financial results calculated in
accordance with United States generally accepted accounting
principles (GAAP), the company's earnings release contains non-GAAP
financial measures of net loss for the period that excludes the
effect of stock-based compensation expenses and revaluation of
derivative warrant liability, and non-GAAP financial measures of
shareholders’ equity that excludes the effect of derivative warrant
liability. The company’s management believes the non-GAAP financial
information provided in this release is useful to investors’
understanding and assessment of the company's on-going operations.
Management also uses both GAAP and non-GAAP information in
evaluating and operating business internally and as such deemed it
important to provide all this information to investors. The
non-GAAP financial measures disclosed by the company should not be
considered in isolation or as a substitute for, or superior to,
financial measures calculated in accordance with GAAP, and the
financial results calculated in accordance with GAAP and
reconciliations to those financial statements should be carefully
evaluated. Reconciliations between GAAP measures and non-GAAP
measures are provided later in this press release.
About Foresight
Foresight (NASDAQ and TASE: FRSX), founded in 2015, is a
technology company engaged in the design, development and
commercialization of Advanced Driver Assistance Systems (ADAS)
based on 3D video analysis, advanced algorithms for image
processing and artificial intelligence. The company, through its
wholly owned subsidiary, develops advanced systems for accident
prevention, which are designed to provide real-time information
about the vehicle's surroundings while in motion. The systems are
designed to alert drivers to threats that might cause accidents,
resulting from traffic violations, driver fatigue or lack of
concentration, etc., and to enable highly accurate and reliable
threat detection while ensuring the lowest rates of false alerts.
The company estimates that its systems will revolutionize ADAS by
providing an automotive grade, cost-effective platform, and
advanced technology.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and other Federal
securities laws. Words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" and similar expressions
or variations of such words are intended to identify
forward-looking statements. For example, when Foresight describes
exploring several scenarios for potential commercial cooperation
with a Chinese car manufacturer, that it plans to leverage its
competitive technology and expand globally, and that it estimates
that its systems will revolutionize ADAS, it is using
forward-looking statements. Because such statements deal with
future events and are based on Foresight’s current expectations,
they are subject to various risks and uncertainties and actual
results, performance or achievements of Foresight could differ
materially from those described in or implied by the statements in
this press release.
The forward-looking statements contained or implied in this
press release are subject to other risks and uncertainties,
including those discussed under the heading "Risk Factors" in
Foresight's registration statement on Form 20-F filed with the
Securities and Exchange Commission ("SEC") on June 1, 2017, and in
any subsequent filings with the SEC. Except as otherwise required
by law, Foresight undertakes no obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
FORESIGHT AUTONOMOUS
HOLDINGS LTD. INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (Except
share data)
As of June 30, 2017
As of June 30, 2016
As of December 31, 2016
ASSETS Current assets:
Cash and cash equivalents $ 14,282 5,042 3,364 Short Term Deposits
4,019 - 390 Marketable equity securities 24 17 - Other receivables
304 299 104
Total current assets 18,605 5,358
3,858
Non-current assets: Marketable equity
securities - 63 18 Investment in affiliate company 865 - 1,248
Other investments 66 - 66 Fixed assets, net 132 12 67
1,063 75 1,399
Total assets $ 19,668 5,433
5,257
LIABILITIES AND SHAREHOLDERS’
EQUITY Current liabilities: Other accounts
payable $ 742 234 457
Total current liabilities 742
234 457 Derivative warrant liability 16,307
1,400 131
Total liabilities 17,049
1,634 588
Shareholders’ equity: Common stock
of NIS 0 par value; - - - Additional paid-in capital 32,876 6,672
8,024 Accumulated deficit (30,257) (2,873) (3,355)
Total stockholders’ equity 2,619 3,799 4,669
Total liabilities and stockholders’ equity $ 19,668
5,433 5,257
SUPPLEMENTAL RECONCILIATION OF GAAP TO
NON-GAAP SHAREHOLDERS' EQUITY U.S. dollars in thousands
As of June 30, 2017 As of
June 30, 2016
As of December 31, 2016
GAAP Shareholders' equity 2,619 3,799 4,669
Derivative warrant liability 16,307 1,400 131
Non-GAAP
Shareholders' equity 18,926 5,199 4,800
FORESIGHT AUTONOMOUS
HOLDINGS LTD. INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands (Except
share data)
Six months ended June 30, Year
ended
December 31,
2017 2016 2016 Research and
development expenses, net $ (1,275 ) $ (319) $ (904)
Marketing and sales (513 ) (105) (224) General and
administrative expenses (2,337 ) (1,484) (2,627) Equity in
net loss of an affiliated company (383 ) -
(108)
Operating loss (4,508 ) (1,908) (3,863)
Revaluation of derivative warrant liability (expenses) income
(23,050) 438 1,847 Financing income, net 656
53 103
Net loss $ (26,902) $ (1,417) $ (1,913)
Basic and diluted loss per share $ (0.33) $ (0.02) $
(0.03) Weighted average number of shares outstanding used in
computing basic and diluted loss per share - in thousands
82,100 64,566 67,311
FORESIGHT AUTONOMOUS
HOLDINGS LTD. SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands
Six months ended June 30,
Year ended
December 31,
2017 2016 2016 GAAP
operating loss (4,508) (1,908) (3,863)
Stock-based compensation in research and development 183 - -
Stock-based compensation in sales and marketing 260 - - Stock-based
compensation in general and administrative 1,196 213 405
Non-GAAP operating loss (2,869) (1,695) (3,458)
GAAP Revaluation of derivative warrant liability (expenses)
income (23,050) 438 1,847 Revaluation of derivative warrant
liability 23,050 (438 ) (1,847)
Non-GAAP Revaluation of
derivative warrant liability (expenses) income - - -
GAAP net loss (26,902) (1,417) (1,913) Stock-based
compensation expenses 1,639 213 405 Revaluation of derivative
warrant liability (expenses) income 23,050 (438 ) (1,847)
Non-GAAP net loss (2,213) (1,642) (3,355)
GAAP
Basic and diluted loss per share (0.33) (0.02) (0.03)
Non-GAAP Basic and diluted loss per share (0.03) (0.03)
(0.05)
Weighted average number of shares outstanding used
in computing basic and diluted loss per share - in thousands
82,100 64,566 67,311
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Foresight Autonomous HoldingsCONTACT INVESTOR
RELATIONS:Miri Segal-SchariaCEOMS-IR
LLC917-607-8654msegal@ms-ir.com
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