Foresight Autonomous Holdings Ltd., an innovator in automotive
vision systems (Nasdaq and TASE: FRSX), today reported financial
results for the third quarter ended September 30, 2018. Foresight
ended the third quarter of 2018 with $19.3 million in cash and
short-term deposits, GAAP net loss of $3.75 million and non-GAAP
net loss for the same period of $3.76 million.
“During the third quarter, we continued early sales of our
QuadSight prototype and expanded our geographic footprint into
Asia,” commented Haim Siboni, CEO of Foresight. “We are pleased
that a leading Chinese electric and autonomous vehicle manufacturer
has recently purchased our QuadSight prototype. China is a market
leader in electric vehicle sales, so the opportunity to test and
potentially integrate our system opens the door to substantial
future possibilities for revenue growth. Furthermore, additional
customer relationships enable us to modify and improve our system
based on market needs, improving our competitive edge.”
Third Quarter 2018 Financial
Results
- Research and development (R&D)
expenses for the three months ended September 30, 2018 were
$2,217,000 compared to $1,144,000 in the three months ended
September 30, 2017. The increase is attributed mainly to
accelerated employee recruitment and is comprised primarily of
payroll and related expenses, stock-based compensation expenses and
subcontracted service expenses.
- General and administrative (G&A)
expenses for the three months ended September 30, 2018 were
$872,000 compared to $684,000 in the three months ended September
30, 2018. The increase is attributed primarily to payroll and
related expenses, and subcontracted service expenses.
- GAAP net loss for the three months
ended September 30, 2018 was $3,758,000, or $0.03 loss per ordinary
share, compared to a GAAP net profit of $4,466,000, or $0.04 profit
per ordinary share, in the three months ended September 30, 2017.
The change is attributed mainly to the revaluation of derivative
warrant liability.
- Non-GAAP net loss for the three months
ended September 30, 2018 was $3,759,000, or $0.03 loss per ordinary
share, compared to a non-GAAP net loss of $2,086,000, or $0.02 loss
per ordinary share, in the three months ended September 30, 2017. A
reconciliation between GAAP net loss and non-GAAP net loss is
provided in the financial statements that are part of this release.
Non-GAAP results exclude the effect of stock-based compensation
expenses, revaluation of other investments and revaluation of
derivative warrant liability.
Balance Sheet Highlights
- Cash and cash equivalents and
short-term deposits totaled $19.3 million as of September 30, 2018,
compared to $21.5 million on September 30, 2017.
- Investments in RailVision Ltd. totaled
$13.1 million (including investment in an affiliate company
totaling $7.6 million and other short-term investments totaling
$5.6 million) as of September 30, 2018, compared to $0.6 million on
September 30, 2017. The increase is attributed to warrants
revaluation of $9.3 million, warrants exercised in the amount of
$4.5 million and equity in net loss of an affiliated company of
$1.3 million.
- GAAP shareholders’ equity totaled $32.8
million as of September 30, 2018, compared to $24.8 million as of
December 31, 2017. The increase is attributed mainly to the capital
raise completed by the company during the period.
- Non-GAAP shareholders’ equity totaled
$27.6 million as of September 30, 2018, compared to $22.9 million
as of December 31, 2017.
As of September 30, As of
December 31,
(thousands of U.S. dollars)
2018 2017
2017 GAAP Results Shareholders’ equity $ 32,562 $
15,598 $ 24,817
Non-GAAP Results Shareholders' equity $
27,312 $ 21,890 $ 22,921
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
revaluation of other investments and derivative warrant
liability.
Recent Corporate
Highlights:
- Announced Sale of QuadSight™
Prototype to a Leading Chinese Electric and Autonomous Car
Manufacturer: Foresight announced the sale of another prototype
of its breakthrough QuadSight™ quad-camera vision system targeted
for the semi-autonomous and autonomous vehicle market. The system
was ordered by a leading Chinese electric and autonomous vehicle
manufacturer to evaluate the system and its performance with the
manufacturer’s current electric vehicles. Revenue from the
prototype system sale is expected to total tens of thousands of
dollars.
- Leading European Vehicle
Manufacturer Orders QuadSight™ Prototype: The QuadSight™
multi-camera vision solution was ordered by the truck division of
one of Europe’s largest and leading vehicle manufacturers. Revenue
from the prototype system sale is expected to total tens of
thousands of dollars.
- Selected as Finalist for NMW Startup
Challenge, the Innovation Platform of the IAA Commercial
Vehicles: Foresight was selected as a finalist in the New
Mobility World (NMW) Lab18 Startup Challenge from more than
100 applicants from 29 countries, thus recognized as one of four of
the most promising mobility startups to reach the final
round.
- Foresight Increased Ownership in
RailVision Ltd.: Foresight is now the largest shareholder of
RailVision. RailVision is a developer and market leader of unique
solutions and vision-based systems for advanced safety, and asset
and fleet management in the rail industry. RailVision has completed
14 trials of its unique vision-based system with leading European
railway companies. Foresight exercised approximately $2.8 million
of warrants, raising its ownership stake to approximately 36%, on
an as issued basis.
- QuadSight™ Wins Prestigious CES
Innovation Award: Foresight’s QuadSight™ vision system was
named a 2019 CES Innovation Award honoree in the Vehicle
Intelligence and Self-Driving Technology category. A QuadSight™
system will be demonstrated at Foresight’s booth #2206 at Westgate
Las Vegas and will also be on display at the CES Innovation Award
Showcase at The Venetian during CES 2019 in Las Vegas.
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, the revaluation of
other investments and revaluation of derivative warrant liability,
and non-GAAP financial measures of shareholders’ equity that
excludes the effect of derivative warrant liability and the
revaluation of other investments. 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. Foresight’s vision systems are 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 predicts 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
future possibilities for revenue growth and potential revenues from
prototype system sales. 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 annual report on Form 20-F filed with the Securities
and Exchange Commission (“SEC”) on March 27, 2018, 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. References and links to websites have been
provided as a convenience, and the information contained on such
websites is not incorporated by reference into this press
release.
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
As of September 30, 2018 As of
September 30, 2017 As of December 31,
2017
ASSETS
Current assets: Cash and cash equivalents $
11,172 $ 10,182 $ 9,636 Short term deposits 8,109 11,342 12,169
Marketable equity securities 24 20 22 Other investments 5,574 -
2,361 Other receivables 526 369 482
Total current
assets 25,405 21,913 24,670
Non-current assets:
Investment in affiliate company 7,559 522 1,404 Other investments -
66 1,672 Fixed assets, net 827 186 289 8,386 774
3,365
Total assets $ 33,791 22,687 $ 28,035
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities: Trade payables $ 223 259 $ 330
Other accounts payables 928 538 817 Derivative warrant liability
2 - -
Total current liabilities 1,153 797
1,147 Derivative warrant liability 76 6,292
2,071
Total liabilities 1,229 7,089
3,218
Shareholders’ equity: Common shares of
no par value; - - - Additional paid-in capital 57,102 41,389 44,114
Accumulated deficit (24,540) (25,791) (19,297)
Total shareholders’ equity 32,562 15,598
24,817
Total liabilities and shareholders’ equity $
33,791 22,687 $ 28,035
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDERS'
EQUITY
U.S. dollars in thousands
As ofSeptember 30, 2018
As ofSeptember 30, 2017 As
of December 31, 2017 GAAP Shareholders’ equity
32,562 15,598 24,817 Revaluation of other investments (5,328
) - (3,967) Derivative warrant liability 78 6,292 2,071
Non-GAAP
Shareholders' equity 27,312 21,890 22,921
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, 2018 2017
2018 2017 Research and development expenses
(6,478) (2,419) (2,217) (1,144) Marketing and sales (775)
(776) (234) (263) General and administrative expenses
(2,813) (3,021) (872) (684)
Operating loss (10,066)
(6,216) (3,323) (2,091) Equity in net loss of an affiliated
company (2,112) (726) (1,035) (343) Financing income
(expenses), net 6,935 (15,494) 600 6,900
Net (loss)
profit (5,243) (22,436) (3,758) 4,466
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, 2018
2017 2018 2017
Net cash used in
operating activities
Profit (loss) for the period (5,243) (22,436) (3,758) 4,466
Adjustments to reconcile profit (loss) to net cash used in
operating activities:
(2,959)
18,642
146
(5,930)
Net cash used in operating activities (8,202)
(3,794) (3,612) (1,464)
Cash Flows from
Investing Activities
Changes in short term deposits 4,060 (10,952) 3,053 (7,323)
Investment in affiliate company (4,479) - (1,990) - Proceeds from
sales of fixed assets 1 - 1 - Purchase of fixed assets (712) (149)
(282) (69)
Net cash provided (used) in investing
activities (1,130) (11,101) 782
(7,392)
Cash flows from
Financing Activities:
Issuance of ordinary shares and warrants, net of issuance expenses
11,208
10,745
5,403
-
Exercise of warrants and options, net of issuance expenses 159
10,646
-
5,050
Net cash provided by financing activities
11,367 21,391 5,403 5,050
Effect of exchange rate changes on cash and cash equivalents
(499) 322 116 (294)
Increase (decrease) in cash and cash
equivalents 1,536 6,818 2,689
(4,100) Cash and cash equivalents at the beginning of the
period
9,636
3,364
8,483
14,282
Cash and cash equivalents at the end
of the period
11,172
10,182
11,172
10,182
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
Adjustments to
reconcile profit (loss) to netcash used in operating activities:
Nine months
ended September 30,
Three months
ended September 30,
2018 2017 2018 2017
Share-based payment 1,620 2,063 440 424 Depreciation 170 30 80 15
Loss from sale of fixed assets 3 3 Revaluation of derivative
warrant liability (1,993) 16,074 (441) (6,976) Equity in loss of an
affiliated company 2,112 726 1,035 343 Revaluation of securities
(2) (3) 20 3 Revaluation of other investments (5,328) - - -
exchange rate changes on cash and cash equivalents 499 (322) (116)
294 Changes in assets and liabilities: Decrease (increase)
in other receivables (44) (266) (186) (89) Increase (decrease) in
trade payables (107) 155 (83) 156 Increase (decrease) in other
accounts payable 111 185 (606) (100)
Adjustments to reconcile profit (loss)
to netcash used in operating activities
(2,959)
18,642
146
(5,930)
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, 2018
2017 2018 2017 GAAP operating
loss (10,066) (6,216) (3,323)
(2,091
) Stock-based compensation in research and
development
491
345
142
162
Stock-based compensation in sales and marketing 143 354 47 94
Stock-based compensation in general and administrative
986
1,364
251
168
Non-GAAP operating loss (8,446) (4,153)
(2,883) (1,667) GAAP financing income
(expenses), net
6,935
(15,494)
600
6,900
Revaluation of other investments (5,328)
- - - Revaluation
of derivative warrant liability (1,993) 16,074 (441) (6,976)
Non-GAAP financing income (expenses), net
(386)
580
159
(76)
GAAP net profit (loss) (5,243) (22,436)
(3,758) 4,466 Stock-based compensation expenses 1,620
2,063 440 424 Revaluation of other investments (5,328) - - -
Revaluation of derivative warrant liability (1,993) 16,074 (441)
6,976
Non-GAAP net loss (10,944) (4,299)
(3,759) (2,086)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181114005829/en/
Investor Relations Contact:Miri Segal-SchariaCEOMS-IR
LLCmsegal@ms-ir.com917-607-8654
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