Foresight Autonomous Holdings Ltd., an innovator in automotive
vision systems (NASDAQ and TASE: FRSX), today reported financial
results for the fourth quarter and full year 2017. Foresight ended
the fourth quarter of 2017 with $21.8 million in cash and
short-term deposits, with GAAP net loss for the full year 2017 of
$15.9 million and with non-GAAP net loss of $5.3 million.
“The excitement for Foresight’s life-saving automotive vision
solutions continues to grow,” commented Foresight Chief Executive
Officer Haim Siboni. “Most recently, our innovative QuadSightTM
vision system drew a tremendous amount of attention at the
International Consumer Electronics Show in Las Vegas. We have also
seen considerable progress in China, as Foresight concluded pilot
programs with multiple leading Chinese car manufacturers during
2017. In the coming year, we will continue to leverage our
industry-leading technology through pilot tests and commercial
partnerships, leading us to long-term success.”
Fourth Quarter 2017 Financial
Results
- Research and development (R&D)
expenses for the three months ended December 31, 2017 were
$1,670,000, compared to $308,000 in the three months ended December
31, 2016. General and administrative (G&A) expenses for the
three months ended December 31, 2017 were $732,000, compared to
$645,000 in the three months ended December 31, 2016. This increase
is attributed mainly to accelerated employee recruitment and is
comprised primarily of payroll and related expenses, stock-based
compensation expenses and subcontracted services expenses.
- GAAP net profit for the three months
ended December 31, 2017 was $6,493,000, or $0.06 per ordinary
share, compared to a GAAP net loss of $1,019,000, or $0.01 per
ordinary share, in the three months ended December 31, 2016. The
decrease is attributed mainly to the revaluation of derivative
warrant liability, and revaluation of other investments (mainly the
warrants we hold in Rail Vision Ltd.).Non-GAAP net loss for the
three months ended December 31, 2017 was $977,000 or $(0.01) per
ordinary share compared to a non-GAAP net loss of $1,032,000, or
$(0.01) per ordinary share, in the three months ended December 31,
2016.
Full Year 2017 Financial
Results
- R&D expenses for the full year
ended December 31, 2017 were $4,089,000, compared to $904,000 in
the full year ended December 31, 2016. The increase is attributed
to acceleration in Research & Development efforts and employee
recruitment, and is comprised primarily of payroll and related
expenses, stock-based compensation expenses and subcontracted
services expenses.
- G&A expenses for the full year
ended December 31, 2017 were $3,753,000, compared to $2,627,000 in
the full year ended December 31, 2016. The increase is attributed
primarily to payroll and related expenses, stock-based compensation
expenses and expenses related to service providers.
- GAAP net loss for the full year ended
December 31, 2017 was $15,942,000, or $(0.17) per ordinary share,
compared to a GAAP net loss of $1,913,000 or $(0.03) per ordinary
share, in the full year ended December 31, 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 full year ended December 31, 2017 was $5,274,000 or $(0.06) per
ordinary share compared to a non-GAAP net loss of $3,355,000 or
$(0.05) per ordinary share, in the full year ended December 31,
2016.
Full year ended Three months ended
December 31, December 31,
(thousands of U.S. dollars,
2017 2016 2017 2016
except per share data)
GAAP
Results Net (loss) profit $ (15,942) $ (1,913) $ 6,493 $
(1,019) Basic and diluted (loss) profit per share (0.17) (0.03)
0.06 (0.01)
Non-GAAP Results Net loss $ (5,274) $ (3,355) $
(977) $ (1,032) Basic and diluted loss per share (0.06) (0.05)
(0.01) (0.01)
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, revaluation of other investments and
revaluation of derivative warrant liability.
Balance Sheet Highlights
- Cash and short-term deposits totaled
$21.8 million as of December 31, 2017, compared to $3.8 million on
December 31, 2016. The increase compared to December 31, 2016 is
attributed mainly 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 to the warrants exercise proceeds,
equal to $12.6 million, less the cash used during the period.
- GAAP shareholders’ equity totaled $24.8
million as of December 31, 2017, compared to $4.7 million as of
December 31, 2016.Non-GAAP shareholders' equity totaled $22.9
million as of December 31, 2017, compared to $4.8 million as of
December 31, 2016.
As of December 31, (thousands of U.S. dollars)
2017 2016 GAAP Results Shareholders'
equity $ 24,817 $ 4,669
Non-GAAP Results Shareholders'
equity $ 22,921 $ 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 and revaluation of
other investments.
Recent Corporate
Highlights:
- Demonstrated QuadSightTM
vision system at CES 2018: Foresight exhibited its
groundbreaking QuadSightTM vision system at CES 2018 in Las Vegas,
drawing considerable attention including a feature on CNBC’s
“Halftime Report.” Foresight demonstrated the quad-camera vision
system’s industry-leading obstacle detection in all lighting and
weather conditions.
- Increased stake in Rail Vision
following successful trial in Europe: Foresight increased its
stake in Rail Vision Ltd. by exercising warrants on 11,486 of Rail
Vision’s ordinary shares for an aggregate of $2.24 million. As of
the date hereof, Foresight holds 32.16% of the issued and
outstanding share capital of Rail Vision and 35.39% on a fully
diluted basis.
- Completed Pilot Project with One of
China’s Largest Car Manufacturers: Foresight successfully
completed its previously-announced pilot project with one of
China’s top three largest car manufacturers, meeting the
pre-defined requirements and criteria established for success.
Foresight’s Eyes-OnTM system was tested in both controlled and
uncontrolled environments against both predefined and incidental
targets. The parties have agreed to examine potential opportunities
for cooperation.
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 ongoing 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 Autonomous Holdings Ltd. (NASDAQ and TASE: FRSX),
founded in 2015, is a technology company engaged in the design,
development and commercialization of stereo/quad-camera vision
systems and V2X cellular-based solutions for the automotive
industry based on 3D video analysis, advanced algorithms for image
processing and sensor fusion. The company, through its wholly owned
subsidiary Foresight Automotive Ltd., 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 improve driving safety by enabling highly
accurate and reliable threat detection while ensuring the lowest
rates of false alerts. The company’s systems are targeting the
Advanced Driver Assistance Systems (ADAS), semi-autonomous and
autonomous vehicle markets. The company estimates that its systems
will revolutionize automotive safety 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, Foresight is using
forward-looking statements in this press release when it discusses
that it will continue to leverage industry-leading technology
through pilot tests and commercial partnerships and that it will
examine potential opportunities for cooperation in the coming
months. 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.
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
As of As of December 31,
December 31, 2017 2016
ASSETS
Current assets: Cash and cash equivalents $ 9,636 $
3,364 Short term deposits 12,169 390 Marketable equity securities
22 - Other Investments 2,361 - Other receivables 482
104
Total current assets 24,670 3,858
Non-current
assets: Marketable equity securities - 18 Investment in
affiliate company 1,404 1,248 Other investments 1,672 66 Fixed
assets, net 289 67 3,365 1,399
Total
assets $ 28,035 $ 5,257
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities: Trade payables $ 330
$
104 Other accounts payable 817 353
Total current liabilities
1,147 457 Derivative warrant liability 2,071 131
Total
liabilities 3,218 588
Shareholders’ equity:
Common stock of NIS 0 par value; - - Additional paid-in
capital 44,114 8,024 Accumulated deficit (19,297)
(3,355)
Total shareholders’ equity 24,817
4,669
Total liabilities and shareholders’ equity $
28,035 $ 5,257
SUPPLEMENTAL RECONCILIATION OF GAAP TO
NON-GAAP SHAREHOLDRES' EQUITY U.S.
dollars in thousands
As of As of
December December 31, 2017 31, 2016
GAAP Shareholders' equity 24,817 4,669 Revaluation of other
investments (3,967) - Derivative warrant liability 2,071 131
Non-GAAP Shareholders' equity 22,921 4,800
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands Year ended
Three months ended December 31,
December 31, 2017 2016 2017
2016 Research and development expenses, net (4,089)
(904) (1,670) (308) Marketing and sales (1,015) (224) (239)
(64) General and administrative expenses (3,753) (2,627)
(732) (645)
Operating loss (8,857) (3,755) (2,641)
(1,017) Equity in net loss (gain) of an affiliated company
(156) 108 (882) 108 Financing income (expenses), net (7,241)
1,950 8,253 106
Net (loss) profit (15,942) (1,913)
6,494 (1,019)
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands
Year ended Three months ended
December 31 December 31, 2017
2016 2017 2016 GAAP operating
loss (8,857) (3,755) (2,641)
(1,017) Stock-based compensation in research and development
491
-
146
-
Stock-based compensation in sales and marketing 443 - 89 -
Stock-based compensation in general and administrative
1,521
405
157
81
Non-GAAP operating loss (6,402) (3,350)
(2,249) (936) GAAP Financing income
(expenses), net
(7,241)
1,950
8,253
106
Revaluation of derivative warrant liability 12,180 (1,847) (3,894)
(94) Revaluation of other investments (3,967) - (3,967) -
Non-GAAP financing (expenses) income, net
972
103
392
12
GAAP net profit (loss) (15,942) (1,913)
6,494 (1,019) Stock-based compensation expenses 2,455
405 391 81 Revaluation of other investments (3,967) - (3,967) -
Revaluation of derivative warrant liability expenses/ income
12,180
(1,847)
(3,894)
(94)
Non-GAAP net loss (5,274) (3,355) (977)
(1,032)
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version on businesswire.com: https://www.businesswire.com/news/home/20180327006362/en/
Foresight Investor RelationsMS-IR LLCMiri Segal-Scharia,
917-607-8654msegal@ms-ir.com
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