Foresight Autonomous Holdings Ltd., an innovator in automotive
vision systems (Nasdaq and TASE: FRSX), today reported financial
results for the first quarter 2019. Foresight ended the first
quarter of 2019 with $19.3 million in cash and short-term deposits,
GAAP net loss of $3.3 million, and non-GAAP net loss for the same
period of $2.9 million.
“The year has started off on a very positive note as we
demonstrated progress across all business activities, including an
additional sale of our QuadSight™ prototype. Our unique technology
continues to gain recognition in the autonomous vehicle industry
illustrated by increased demand,” commented Haim Siboni, CEO of
Foresight. “In addition, our wholly owned subsidiary, Eye-Net
Mobile Ltd., completed another trial of its accident prevention
solution with one of Israel’s largest cities as well as initial
installation with a leading Israeli cellular provider. We expect
this progress to continue as our recently announced capital raise
of $6.2 million will support our development efforts and marketing
initiatives throughout the year.”
First Quarter 2019 Financial
Results
- Research and development (R&D)
expenses for the three months ended March 31, 2019 were $2,070,000,
compared to $2,075,000 in the three months ended March 31, 2018.
During the first quarter of 2019 we continued accelerated employee
recruitment and subcontracted services.
- General and administrative (G&A)
expenses for the three months ended March 31, 2019 were $908,000,
compared to $1,054,000 in the three months ended March 31, 2018.
The decrease is attributed primarily to stock-based compensation
expenses.
- GAAP net loss for the three months
ended March 31, 2019 was $3,315,000, or $(0.025) per ordinary
share, compared to a GAAP net profit of $2,598,000, or $0.02 per
ordinary share, in the three months ended March 31, 2018. The
decrease is attributed mainly to income from revaluation of
derivative warrant liability recorded in the three months ended
March 31, 2018.
- Non-GAAP net loss for the three months
ended March 31, 2019 was $2,919,000, or $(0.02) per ordinary share,
compared to a non-GAAP net loss of $3,548,000, or $(0.03) per
ordinary share, in the three months ended March 31, 2018. 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.
Balance Sheet Highlights
- Cash and short-term deposits totaled
$19.3 million as of March 31, 2019, compared to $15.7 million on
December 31, 2018. The increase is attributed mainly to the public
offering completed during March 2019, which amounted to
approximately $5.5 million, net.
- Foresight’s investments in its
affiliate Rail Vision Ltd. totaled $7,823,000 as of March 31, 2019,
compared to $7,913,000 on December 31, 2018. The decrease is
attributed primarily from participation in the net loss of Rail
Vision in the amount of $793,000, set off by gain from the issuance
of shares by Rail Vision to a third party in the amount of
$703,000. As of March 31, 2019, Foresight Holdings in Rail Vision
Ltd amounts to 28.94%.
- On January 1, 2019 the Company adopted
ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) using the modified
retrospective approach for all lease arrangements at the beginning
of the period of adoption. The Company leases facilities and
vehicles under operating leases. At March 31, 2019, the Company’s
right of use assets and lease liabilities for operating leases
totaled $1,493,000 and $1,589,000, respectively. The impact of
adopting the new lease standard was not material to the Company’s
condensed consolidated statement of operations for the periods
presented.
- GAAP shareholders’ equity totaled $26.7
million as of March 31, 2019, compared to $23.6 million on December
31, 2018.
Recent Corporate
Highlights:
- Foresight Priced Offering of
4,000,000 ADSs: Foresight announced the pricing of an
underwritten public offering of 4,000,000 American Depositary
Shares (ADSs) at a price to the public of $1.50 per ADS. The gross
proceeds to the Company from this offering, including the proceeds
from over-allotment option granted to and partially exercised by
the underwriters, amounted to approximately $6.2 million.
- Rail Vision Received $10 Million
Strategic Investment from Knorr-Bremse: Knorr-Bremse Systeme
für Schienenfahrzeuge GmbH, an affiliate of Knorr-Bremse AG
(Frankfurt: KBX), a $15 billion European-based group, to invest $10
million in Rail Vision, Foresight’s affiliate, in consideration of
a 21.3% equity stake. The first installment of $5 million has
already been invested in Rail Vision.
- Eye-Net Mobile Successfully
Completed Additional Trial of its Accident Prevention Solution in
Collaboration with One of Israel’s Largest Cities: Foresight’s
wholly owned subsidiary, Eye-Net Mobile Ltd., successfully
completed a controlled trial of its Eye-Net™ accident prevention
solution in collaboration with the municipality of Netanya.
- Foresight Completed Additional Sale
of QuadSight™ Prototype Purchased by One of Israel’s Leading
Defense companies: Foresight announced an additional sale of a
prototype of its flagship product QuadSight™, a four-camera vision
system targeted for the semi-autonomous and autonomous vehicle
market. Revenue from the prototype system sale is expected to total
tens of thousands of dollars.
- Foresight’s QuadSight™ Vision System
Selected as Gold Winner in 2019 Edison Awards: Foresight’s
QuadSight™ vision system was named a Gold Winner in the
Transportation & Logistics, Autonomous Vehicles category in the
prestigious 2019 Edison Awards.
- Foresight Received $1 Million
Investment from RH Electronics at $4.08 per ADS: Foresight
entered into a development services agreement, a binding memorandum
of understanding (MOU) for manufacturing and engineering consulting
services, and an investment agreement with RH Electronics Ltd.
- Eye-Net Mobile Successfully
Completed Initial Integration with the Assistance of a Leading
Israeli Cellular Provider: Foresight’s wholly owned subsidiary
Eye-Net Mobile Ltd. successfully completed initial integration by
installing the Eye-Net™ application’s communication layer on the
data center of a leading Israeli cellular provider.
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 sensor systems for the
automotive industry. Through our wholly owned subsidiaries,
Foresight Automotive Ltd. and Eye-Net Mobile Ltd., we develop both
“in-line-of-sight” vision systems and “beyond-line-of-sight”
cellular-based applications. Foresight’s vision sensor is a
four-camera system based on 3D video analysis, advanced algorithms
for image processing, and sensor fusion. Eye-Net Mobile’s
cellular-based application is a V2X (vehicle-to-everything)
accident prevention solution based on real-time spatial analysis of
clients’ movement.
The company’s systems are designed to improve driving safety by
enabling highly accurate and reliable threat detection while
ensuring the lowest rates of false alerts and are targeting the
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
that it expects progress to continue, that the Company’s CEO will
be committing 50% of his salary for the next six months to
purchasing Foresight stock, revenues from the sales of prototypes,
and collaboration with other parties. 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
20, 2019, 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 As of As of March 31,
March 31, December 31, 2019 2018
2018
ASSETS
Current assets: Cash and cash equivalents $ 8,954 $
5,181 $ 3,158 Short Term Deposits 10,323 11,512 12,506 Marketable
equity securities 20 52 23 Other Investments 345 3,865 345 Other
receivables 488 489 471
Total current assets
20,130 21,099 16,503
Non-current assets: ROU Asset
1,493 - - Investment in affiliate company 7,478 3,614 7,568 Other
investments - 4,908 - Fixed assets, net 756 529 787
9,727 9,051 8,355
Total assets $ 29,857 $ 30,150 $
24,858
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities: Trade payables $ 404 $ 296 $ 344
Operating Lease Liability 400 - - Other accounts payables
1,155
1,027
947
Total current liabilities 1,959 1,323 1,291
Non-current liabilities: Operating Lease Liability 1,189 - -
Derivative warrant liability - 646 - 1,189 646 -
Total liabilities 3,148 1,969 1,291
Shareholders’ equity: Common stock of NIS 0 par
value; - - - Additional paid-in capital 63,978 44,880 57,521
Accumulated deficit (37,269 ) (16,699 ) (33,954 )
Total shareholders’ equity 26,709 28,181
23,567
Total liabilities and shareholders’ equity $
29,857 $ 30,150 $ 24,858
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDERS'
EQUITY
U.S. dollars in thousands As
of As of As of March 31, March 31,
December 31, 2019 2018 2018
GAAP Shareholders' equity 26,709 28,181 23,567
Revaluation of other investments - (5,328 ) (316 ) Derivative
warrant liability - 646 --
Non-GAAP Shareholders'
equity 26,709 23,499 23,252
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands Three months ended
March 31, 2019 2018 Research and
development expenses $ (2,070 ) $ (2,075 ) Marketing and
sales (598 ) (307 ) General and administrative expenses
(908 ) (1,054 )
Operating loss (3,576 )
(3,436 ) Equity in net loss of an affiliated company 90 618
Financing income, net 351 6,652
Net profit (loss) $ (3,315 ) $ 2,598
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands Three Months ended
March 31, 2019 2018
Net cash used in
operating activities
Profit (Loss) for the Period (3,315 ) 2,598 Adjustments to
reconcile profit (loss) to net cash used in operating activities:
802
(5,191
)
Net cash used in operating activities (2,513
) (2,593 )
Cash Flows from
Investing Activities
Changes in short term deposits 2,183 657 Investment in affiliate
company - (2,240 ) Purchase of fixed assets (31 ) (279 )
Net cash provided (used) in investing activities
2,152 (1,862 )
Cash flows from
Financing Activities:
Issuance of ordinary shares, net of issuance expenses 6,231
-
Exercise of warrants and options, net of issuance expenses
-
159
Net cash provided by financing
activities 6,231 159
Effect of exchange rate changes on cash and cash equivalents
(74 ) (159 ) Increase
(decrease) in cash and cash equivalents 5,796
(4,455 ) Cash and cash equivalents at the
beginning of the period
3,158
9,636
Cash and cash equivalents at the end of the
period
8,954
5,181
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands Three months
Adjustments to
reconcile profit (loss) to net cash
ended
used in operating
activities:
March 31, 2019 2018 Share-based payment
395 607 Depreciation 62 39 Revaluation of warrant liability 1
(1,425) Equity in loss of an affiliated company 90 618 Revaluation
of securities 3 (30) Revaluation of other investments - (5,328)
exchange rate changes on cash and cash equivalents 74 159
Changes in assets and liabilities: Decrease (increase) in other
receivables 24 (7) Increase (decrease) in Trade payables (33) (34)
Change in operating lease liability 50 - Increase (decrease) in
other accounts payable 136 210
Adjustments
to reconcile profit (loss) to net cash used in operating
activities
802
(5,191)
FORESIGHT
AUTONOMOUS HOLDINGS LTD.
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands Three months
ended March 31,
Year ended
December 31,
2019 2018 2018 GAAP operating
loss (3,576 ) (3,436 )
(13,321 ) Stock-based compensation in research and
development 124 183 621 Stock-based compensation in sales and
marketing 48 48 196 Stock-based compensation in general and
administrative 223 376 1,223
Non-GAAP operating loss
(3,181 ) (2,829 ) (11,281
) GAAP Financing income (expenses), net
351 6,652 1,569 Revaluation of other
investments - (5,328 ) (316 ) Revaluation of derivative warrant
liability expenses (income) 1 (1,425 ) (2,071 )
Non-GAAP
financing (expenses) income, net 352 (101
) (818 ) GAAP net profit (loss)
(3,315 ) 2,598 (14,657 )
Stock-based compensation expenses 395 607 2,040 Revaluation of
other investments - (5,328 ) (316 ) Revaluation of derivative
warrant liability expenses (income) 1 (1,425 ) (2,071 )
Non-GAAP
net loss (2,919 ) (3,548 )
(15,004 )
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190515005849/en/
Investor Relations Contact:Miri Segal-SchariaCEOMS-IR
LLCmsegal@ms-ir.com917-607-8654
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