Foresight Autonomous Holdings Ltd., a leading developer of
Advanced Driver Assistance Systems (NASDAQ and TASE: FRSX),
today reported financial results for the third quarter
ended September 30, 2017. Foresight ended the third quarter of
2017 with $21.5 million in cash and short-term deposits, with GAAP
net loss for the nine months ended September 30, 2017 of $22.4
million and with non-GAAP net loss of $4.3 million.
Commenting on the results, Foresight’s Chief Executive
Officer Haim Siboni said, “This quarter, we completed two
additional pilot tests with leading Chinese car manufacturers where
we successfully demonstrated our potentially life-saving
technology. We plan to broaden our outreach to additional
manufacturers, and to sign commercial agreements, in our efforts to
expand globally. Furthermore, our successful system demonstration
and anticipated commercial agreement with Uniti Sweden proves that
our competitive technology aligns with our long-term corporate
development strategy to become a leader in the automated
transportation industry.”
Third Quarter 2017 Financial
Results
- Research and development (R&D)
expenses for the three months ended September 30, 2017 were
$1,144,000, compared to $277,000 in the three months ended
September 30, 2016. General and administrative (G&A) expenses
for the three months ended September 30, 2017 were $684,000,
compared to $498,000 in the three months ended September 30, 2016.
These increases are attributed mainly to employee recruitment and
are comprised primarily of payroll and related expenses,
stock-based compensation expenses and subcontracted services
expenses.
- GAAP net profit for the three months
ended September 30, 2017 was $4,466,000 compared to a GAAP net
profit of $523,000 in the three months ended September 30, 2016.
The increase is attributed mainly to the revaluation of derivative
warrant liability.Non-GAAP net loss for the three months ended
September 30, 2017 was $2,086,000 compared to a non-GAAP net loss
of $879,000 in the three months ended September 30, 2016.
Nine Months Ended September 30, 2017
Financial Results
- R&D expenses for the nine months
ended September 30, 2017 were $2,419,000, compared to $596,000 in
the nine months ended September 30, 2016. The increase is
attributed to acceleration in R&D efforts and employees'
recruitment, and is comprised primarily of payroll and related
expenses, stock-based compensation expenses and subcontracted
services expenses.
- G&A expenses for the nine months
ended September 30, 2017 were $3,021,000, compared to $1,982,000 in
the nine months ended September 30, 2016. The increase is
attributed primarily to stock-based compensation expenses and to
expenses associated with listing on NASDAQ.
- GAAP net loss for the nine months ended
September 30, 2017 was $22,436,000 compared to a GAAP net loss of
$894,000 in the nine months ended September 30, 2016. The increase
is attributed mainly to the increase in R&D expenses, the
increase in stock-based compensation expenses, and the increase in
revaluation of derivative warrant liability.Non-GAAP net loss for
the nine months ended September 30, 2017 was $4,299,000 compared to
a non-GAAP net loss of $2,323,000 in the nine months ended
September 30, 2016.
Nine months ended September 30,
Three months ended September 30, (thousands of U.S.
dollars)
2017 2016 2017
2016 GAAP Results Net (loss) profit
$(22,436) $(894) $4,466 $523
Non-GAAP Results Net loss
$(4,299) $(2,323) $(2,086) $(879)
A reconciliation between GAAP operating results and non-GAAP
operating results is provided in the following 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
$21.5 million as of September 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), from warrants exercised by shareholders equal
to $10.7 million, less the cash used during the period.
- GAAP shareholders’ equity totaled $15.6
million as of September 30, 2017, compared to $4.7 million as of
December 31, 2016.Non-GAAP shareholders' equity totaled $21.9
million as of September 30, 2017, compared to $4.8 million as of
December 31, 2016.
As of As of September 30,
December 31, (thousands of U.S. dollars)
2017
2016 GAAP Results Shareholders' equity $ 15,598 $
4,669
Non-GAAP Results Shareholders' equity $ 21,890 $ 4,800
A reconciliation between GAAP shareholders' equity results and
non-GAAP shareholders' equity results is provided in the following
financial statements that are part of this release. Non-GAAP
results exclude derivative warrant liability.
Third Quarter Corporate
Highlights:
- Completed Pilot Agreement with Two
Additional Leading Chinese Car Manufacturers: The pilot tests
of the Eyes-On system demonstrated the performance of Foresight’s
accident prevention system. Based on the results of the pilot
tests, the parties have agreed to examine possible directions for
commercial cooperation.
- Completed a Successful System
Demonstration with Uniti Sweden: Foresight and Uniti intend to
negotiate a commercial agreement whereby Foresight’s multispectral
all-weather conditions systems will be incorporated into Uniti’s
electric vehicles as an ADAS, as well as the leading sensor system
for the future autonomous capabilities of Uniti’s electric
cars.
- Demonstrated Proof of Concept of its
Multispectral Advanced Driver Assistance System: Foresight
completed proof of concept of its multispectral road traffic
accident prevention system, which features both thermal and visible
light cameras. Following the successful results, Foresight decided
to complete development of a real-time demonstration.
- Ariel Dor Appointed as Head of
Global Mergers and Acquisitions: As Foresight focuses on global
operations and expanding its footprint, Mr. Dor will be
concentrating on building new relationships with international
partners to promote business growth. Mr. Dor previously served as
Foresight’s Chief Operating Officer.
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
its plans to broaden its outreach to additional manufacturers, and
to sign commercial agreements, in its efforts to expand globally,
examining possible directions for commercial cooperation, that its
products will be integrated into Uniti's vehicles, that Mr. Dor
will be concentrating on building new relationships with
international partners to promote business growth, 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
As of September 30, 2017 As
of December 31, 2016
ASSETS
Current assets: Cash and cash equivalents $
10,182 $ 3,364 Short term deposits 11,342 390 Marketable equity
securities 20 - Other receivables 369 104
Total
current assets 21,913 3,858
Non-current assets:
Marketable equity securities - 18 Investment in affiliate company
522 1,248 Other investments 66 66 Fixed assets, net 186
67 774 1,399
Total assets $ 22,687 $ 5,257
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities: Other accounts payable $ 797 $
457
Total current liabilities 797 457 Derivative
warrant liability 6,292 131
Total liabilities 7,089 588
Shareholders’ equity: Common stock of NIS 0
par value; - - Additional paid-in capital 41,389 8,024 Accumulated
deficit (25,791) (3,355)
Total stockholders’
equity 15,598 4,669
Total liabilities
and stockholders’ equity $ 22,687 $ 5,257
SUPPLEMENTAL RECONCILIATION OF GAAP TO
NON-GAAP SHAREHOLDRES' EQUITY U.S. dollars in thousands
As of September 30, 2017
As of December 31, 2016 GAAP Shareholders'
equity 15,598 4,669 Derivative warrant liability 6,292
131
Non-GAAP Shareholders' equity 21,890 4,800
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands
Nine months ended September 30,
Three months ended September 30, 2017
2016 2017 2016 Research and
development expenses, net (2,419) (596) (1,144)
(277) Marketing and sales (776) (160) (263) (55)
General and administrative expenses (3,021) (1,982) (684)
(498) Equity in net loss of an affiliated company (726)
- (343) -
Operating loss (6,942)
(2,738) (2,434) (830) Revaluation of derivative warrant
liability (expenses) income
(16,074)
1,753
6,976
1,315
Financing income (expenses), net 580 91 (76)
38
Net (loss) profit (22,436) (894)
4,466 523
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
Nine months ended September 30,
Three months ended September 30, 2017
2016 2017 2016
Net cash used in
operating activities
Profit(Loss) for the Period (22,436) (894) 4,466 523
Adjustments to reconcile profit (loss) to net cash used in
operating activities:
18,642
(771)
(5,930)
(966)
Net cash used in operating activities (3,794)
(1,665) (1,464) (443)
Cash Flows from
Investing Activities
Purchase of marketable securities - (5) - - Purchase of short term
deposits (10,952) - (7,323) - Investment in affiliate company -
(600) - (600) Purchase of fixed assets (149) (64)
(69) (55)
Net cash used in investing
activities (11,101) (669)
(7,392) (655)
Cash flows from
Financing Activities:
Issuance of ordinary shares and warrants, net of issuance expenses
10,745
5,052
-
83
Exercise of warrants and options, net of issuance expenses
10,646
-
5,050
-
Receipts on account of shares and warrants - 762 - 762 Acquisition
of a subsidiary in connection with reverse recapitalization (See
below)
-
1,245
-
-
Net cash provided by financing activities
21,391 7,059 5,050
845 Effect of exchange rate changes on cash
and cash equivalents 322 80
(294) 16
Increase (decrease) in cash and cash
equivalents 6,818 4,805 (4,100)
(237) Cash and cash equivalents at the beginning of the
period
3,364
-
14,282
5,042
Cash and cash
equivalents at the end of the period
10,182
4,805
10,182
4,805
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
Adjustments to
reconcile profit (loss) to net cash used in operating
activities:
Nine months ended September 30,
Three months ended September 30, 2017
2016 2017 2016 Share-based
payment granted to service providers 2,063 324 424
111 Depreciation 30 5 15 3 Revaluation of warrants 16,074
(1,753) (6,976) (1,315) Equity in loss of an affiliated company 726
- 343 - Revaluation of securities (3) 12 3 8 Realized loss of
securities classified as available-for-sale, net
-
18
-
39
Issuance expenses presented in financing activities - 154 - -
exchange rate changes on cash and cash equivalents (322) (80) 294
(16) Changes in assets and liabilities: Decrease (increase)
in other receivables (266) (61) (89) 136 Decrease in other current
assets - 429 - - Increase in other accounts payable 340 181 56 68
Adjustments to
reconcile profit (loss) to net cash used in operating
activities
18,642
(771)
(5,930)
(966)
Supplemental information for Cash
Flow:
Assets
(liabilities) acquired:
Nine months ended September 30,
Three months ended September 30, 2017
2016 2017 2016 Current assets
and liabilities excluding cash and cash equivalents
-
(5)
-
-
Marketable equity securities - (49) - - Fixed assets - (5) - -
Other current assets - (429) - - Reverse recapitalization effect on
equity - 1,733 - - Cash acquired in connection
reverse recapitalization
-
1,245
-
-
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands
Nine months ended September 30 Three
months ended September 30, 2017
2016 2017 2016 GAAP operating
loss (6,942) (2,738) (2,434)
(830) Stock-based compensation in research and
development
345
-
162
-
Stock-based compensation in sales and marketing 354 - 94 -
Stock-based compensation in general and administrative
1,364
324
168
111
Non-GAAP operating loss (4,879) (2,414)
(2,010) (719) GAAP
Revaluation of derivative warrant liability (expenses) income
(16,074)
1,753
6,976
1,315
Revaluation of derivative warrant liability 16,074 (1,753)
(6,976) (1,315)
Non-GAAP Revaluation of derivative
warrant liability (expenses) income
-
-
-
-
GAAP net profit (loss) (22,436) (894)
4,466 523 Stock-based compensation expenses 2,063 324
424 111 Revaluation of derivative warrant liability expenses/
income
16,074
(1,753)
(6,976)
(1,513)
Non-GAAP net loss (4,299) (2,323)
(2,086) (879)
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version on businesswire.com: http://www.businesswire.com/news/home/20171201005057/en/
Foresight Autonomous Holdings Ltd.CONTACT INVESTOR
RELATIONS:Miri Segal-SchariaCEOMS-IR
LLC917-607-8654msegal@ms-ir.com
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