Foresight Autonomous Holdings Ltd., an innovator in automotive
vision systems (Nasdaq and TASE: FRSX), today reported financial
results for the second quarter and first half of 2019.
“Foresight achieved multiple major milestones during the second
quarter. We signed our first commercial agreement with Elbit
Systems, which demonstrates our progress and the endorsement of
QuadSight™ by leading global companies. The agreement with Elbit is
a testament to the quality of our technology, as Elbit performed
rigorous testing before making their choice,” commented Haim
Siboni, CEO of Foresight.
“In addition, we signed an agreement with a Chinese Tier One
automotive supplier to design, develop and commercialize automatic
safety solutions for the vehicles of Chinese vehicle manufacturers
(OEMs), which may pave the way for further collaboration with the
growing Chinese auto industry.
We have also opened a demonstration center in Israel, allowing
our investors to experience the QuadSight vision system firsthand,
and experience the depth and sophistication of our technology.
Users are consistently impressed with the system’s vision
capabilities, which we have witnessed at recent demonstrations in
Detroit and the Silicon Valley region. Our demonstrations across
the United States were conducted with the assistance and support of
FLIR Systems, a world-leading industrial technology company focused
on intelligent sensing solutions. We expect Foresight’s momentum to
continue over the second half of the year, and we are very
optimistic about the future of the company.”
Corporate Highlights Q2:
- Foresight Successfully Completes Three Series of
Technological Demonstrations to Date: The demonstrations
performed in the United States, France and Japan resulted in two
sales of prototype systems to date, and the Company expects to
receive additional prototype orders in the future. The Company
plans to hold additional demonstrations in 2019.
- Foresight Signs Agreement with Chinese Tier One Automotive
Supplier: The agreement is for multiphase technological
cooperation with a Chinese Tier One supplier, to develop smart
mobility solutions for the Chinese automotive industry, and
specifically for two Chinese OEMs.
- Foresight Signs First Commercial Agreement with Elbit
Systems: The commercial agreement is with Elbit Systems Land
Ltd., a subsidiary of Elbit Systems Ltd. (Nasdaq and TASE: ESLT),
for exclusive marketing of Foresight’s proprietary image processing
software for the defense, paramilitary and homeland security
markets. Elbit, a $7 billion leading defense electronics company
based in Israel, intends to integrate Foresight’s image processing
software into its products, systems and solutions, and to market it
globally.
- Foresight Signs Exclusive Distribution Agreement in
Japan: According to the agreement, Cornes Technologies will
have exclusive rights to promote and sell Foresight’s QuadSight
system in Japan. Cornes Technologies, a renowned trading company,
plays a significant role in establishing and developing commercial
links and trade between Japan and the rest of the world.
- Foresight Successfully Completes Technological
Demonstrations for Leading Vehicle Manufacturers in France:
These demonstrations follow a series of successful technological
demonstrations that were carried out in Japan with six additional
OEMs and Tier One suppliers, several of which have expressed
interest in purchasing the QuadSight prototype system for further
evaluation.
- Foresight Wins Gold at 2019 Edison Awards: The QuadSight
vision system was named the Gold Winner in the Transportation &
Logistics, Autonomous Vehicles category in the prestigious 2019
Edison Awards™. The Edison Awards, named after Thomas Alva Edison,
recognize and honor the world’s best in innovators and
innovations.
- Foresight Receives Notice of Allowance for First Patent
Application from U.S. Patent and Trademark Office: Foresight
received a notice of allowance for its first patent application,
number 16/078,489, for the Company’s patented alerting system that
detects traffic lights or traffic signs.
- Foresight Opens Demonstration Center to Investors: The
QuadSight demonstration center is located near Foresight’s offices,
offering customers, business partners and investors an opportunity
to ride in a vehicle equipped with Foresight’s automotive vision
system.
Foresight ended the second quarter of 2019 with $16.3 million in
cash and short-term deposits, GAAP net loss of $3.8 million, and
non-GAAP net loss for the same period of $3 million.
Second Quarter 2019 Financial
Results
- Research and development (R&D) expenses for the three
months ended June 30, 2019, were $2,390,000, compared to $2,187,000
in the three months ended June 30, 2018. During the second quarter
of 2019, we continued accelerated employee recruitment and
subcontracted services.
- General and administrative (G&A) expenses for the three
months ended June 30, 2019, were $865,000, compared to $887,000 in
the three months ended June 30, 2018. The decrease is attributed
primarily to decrease in stock-based compensation expenses offset
by an increase in rent and maintenance expenses.
- GAAP net loss for the three months ended June 30, 2019 was
$3,823,000, or $(0.03) per ordinary share, compared to a GAAP net
loss of $4,083,000, or ($0.04) per ordinary share, in the three
months ended June 30, 2018. The decrease is attributed mainly to
equity in net gain of Rail Vision, an affiliated company (mainly
gain from the issuance of shares by Rail Vision to third parties),
offset by increased research and development expenses and marketing
and sales expenses recorded in the three months ended June 30,
2019.
- Non-GAAP net loss for the three months ended June 30, 2019 was
$3,016,000, or $(0.02) per ordinary share, compared to a non-GAAP
net loss of $3,637,000, or $(0.03) per ordinary share, in the three
months ended June 30, 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, revaluation of other investments
and revaluation of derivative warrant liability.
First Half 2019 Financial
Results
- R&D expenses for the six months ended June 30, 2019 were
$4,460,000, compared to $4,262,000 in the six months ended June 30,
2018. The increase is attributed mainly to accelerated
subcontracted services.
- G&A expenses for the six months ended June 30, 2019 were
$1,773,000, compared to $1,941,000 in the six months ended June 30,
2018. The decrease is attributed primarily to stock-based
compensation expenses.
- GAAP net loss for the six months ended June 30, 2019 was
$7,138,000, or $(0.05) per ordinary share, compared to a GAAP net
loss of $1,485,000 or ($0.01) per ordinary share in the six months
ended June 30, 2018. The increase is attributed mainly to
revaluation of other investments in the amount of $5,328,000 and to
revaluation of derivative warrant liability in the amount of
$1,552,000, both recorded under financial income, in the six months
ended June 30, 2018.
- Non-GAAP net loss for the six months ended June 30, 2019 was
$5,935,000, or $(0.04) per ordinary share, compared to a non-GAAP
net loss of $7,185,000, or $(0.06) per ordinary share, in the six
months ended June 30, 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, revaluation of other investments
and revaluation of derivative warrant liability.
Balance Sheet Highlights
- Cash and short-term deposits totaled $16.3 million as of June
30, 2019, compared to $19.6 million on June 30, 2018.
- Investments in Rail Vision totaled $7.6 million as of June 30,
2019, compared to $12.2 million as of June 30, 2018. The decrease
is attributed primarily to gains from revaluation of other
investments (Rail Vision warrants) recorded in the six months ended
June 30, 2018, and to the expiration of Rail Vision warrants during
the six months ended June 30, 2019, offset by equity in net gain of
Rail Vision (mainly from the issuance of shares by Rail Vision to
third parties).
- GAAP shareholders’ equity totaled $23.8 million as of June 30,
2019, compared to $23.6 million on December 31, 2018.
- Non-GAAP shareholders’ equity totaled $24.2 million as of June
30, 2019, compared to $23.3 million as of December 31, 2018.
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.
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 sensors systems for the
automotive industry. Through the company’s wholly owned
subsidiaries, Foresight Automotive Ltd. and Eye-Net Mobile Ltd.,
Foresight develops 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. Foresight is targeting
the semi-autonomous and autonomous vehicle markets and 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
its agreement with a Chinese Tier One automotive supplier, paving
the way for further collaboration with the growing Chinese auto
industry, allowing investors to experience the QuadSight vision
system at the Company’s demonstration center, expected momentum
over the second half of the year, receiving additional prototype
orders, and holding additional technological demonstrations during
the year. 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 is not responsible for the contents of third-party
websites.
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
As of June 30, 2019
As of June 30, 2018
As of December 31,
2018
ASSETS
Current assets:
Cash and cash equivalents
$
4,047
$
8,483
$
3,158
Short Term Deposits
12,280
11,162
12,506
Marketable equity securities
31
44
23
Other Investments
-
8,417
345
Other receivables
509
340
471
Total current assets
16,867
28,446
16,503
Non-current assets:
ROU Asset
1,417
-
-
Investment in affiliate company
7,584
3,761
7,568
Fixed assets, net
699
629
787
9,700
4,390
8,355
Total assets
$
26,567
$
32,836
$
24,858
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Trade payables
$
308
$
306
$
344
Operating Lease Liability
408
-
-
Other accounts payables
897
1,534
947
Derivative warrant liability
42
238
-
Total current liabilities
1,655
2,078
1,291
Non-current liabilities:
Operating Lease Liability
1,125
-
-
Derivative warrant liability
-
281
-
281
-
Total liabilities
2,780
2,359
1,291
Shareholders’ equity:
Common stock of NIS 0 par value;
-
-
-
Additional paid-in capital
64,879
50,409
57,521
Receipts on account of shares
-
850
-
Accumulated deficit
(41,092
)
(20,782
)
(33,954
)
Total stockholders’ equity
23,787
30,477
23,567
Total liabilities and stockholders’
equity
$
26,567
$
32,836
$
24,858
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands
Six months ended June
30,
Three months ended June
30,
2019
2018
2019
2018
Research and development expenses, net
(4,460)
(4,262)
(2,390)
(2,187)
Marketing and sales
(1,097)
(540)
(499)
(234)
General and administrative expenses
(1,773)
(1,941)
(865)
(887)
Operating loss
(7,330)
(6,743)
(3,754)
(3,308)
Equity in net gain (loss) of an affiliated
company
16
(1,077)
106
(459)
Financing income (expenses), net
176
6,335
(175)
(316)
Net loss
(7,138)
(1,485)
(3,823)
(4,083)
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
Six months ended June
30,
Three months ended June
30,
2019
2018
2019
2018
Net cash used in operating
activities
Profit (Loss) for the Period
(7,138)
(1,485)
(3,823)
(4,083)
Adjustments to reconcile profit (loss) to
net cash used in operating activities:
1,432
(3,635)
630
1,554
Net cash used in operating
activities
(5,706)
(5,120)
(3,193)
(2,529)
Cash Flows from Investing
Activities
Changes in short term deposits
226
1,007
(1,957)
350
Proceed from other investments
21
-
21
-
Investment in affiliate company
-
(2,489)
-
(249)
Purchase of fixed assets
(39)
(430)
(8)
(149)
Net cash provided (used) by investing
activities
208
(1,912)
(1,944)
(48)
Cash flows from Financing
Activities:
Issuance of ordinary shares and warrants,
net of issuance expenses
6,521
5,485
290
5,485
Exercise of warrants and options, net of
issuance expenses
-
159
-
-
Receipts on account of shares
-
850
-
850
Net cash provided by financing
activities
6,521
6,494
290
6,335
Effect of exchange rate changes on cash
and cash equivalents
(134)
(615)
(60)
(456)
Increase (decrease) in cash and cash
equivalents
889
(1,153)
(4,907)
3,302
Cash and cash equivalents at the
beginning of the period
3,158
9,636
8,954
5,181
Cash and cash equivalents at the end of
the period
4,047
8,483
4,047
8,483
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:
Six months
ended June 30,
Three months
ended June 30,
2019
2018
2019
2018
Share-based payment
836
1,180
441
573
Depreciation
127
90
65
49
Revaluation of derivative warrant
liability
43
(1,552)
42
(127)
Equity in loss (gain) of an affiliated
company
(16)
1,077
(106)
459
Revaluation of securities
(8)
(22)
(11)
8
Revaluation of other investments
324
(5,328)
324
-
exchange rate changes on cash and cash
equivalents
134
615
60
456
Changes in assets and liabilities:
Decrease (increase) in other
receivables
(38)
142
(62)
149
Increase (decrease) in Trade payables
(36)
(24)
(3)
10
Change in operating lease liability
75
-
25
Increase (decrease) in other accounts
payable
(9)
187
(145)
(23)
Adjustments to reconcile profit (loss)
to net cash used in operating activities
1,432
(3,635)
630
1,554
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDERS'
EQUITY
U.S. dollars in thousands
As of June 30, 2019
As of June 30, 2018
As of December 31,
2018
GAAP Shareholders' equity
23,787
30,477
23,567
Revaluation of other investments
324
(5,328
)
(316)
Derivative warrant liability
42
519
--
Non-GAAP Shareholders' equity
24,153
25,668
23,252
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands
Six months ended June
30
Three months ended June
30,
2019
2018
2019
2018
GAAP operating loss
(7,330)
(6,743)
(3,754)
(3,308)
Stock-based compensation in research and
development
284
349
160
166
Stock-based compensation in sales and
marketing
98
96
50
48
Stock-based compensation in general and
administrative
454
735
231
359
Non-GAAP operating loss
(6,494)
(5,563)
(3,313)
(2,735)
GAAP Financing income (expenses),
net
176
6,335
(175)
(316)
Revaluation of other investments
324
(5,328)
324
-
Revaluation of derivative warrant
liability expenses (income)
43
(1,552)
42
(127)
Non-GAAP Financing income (expenses),
net
543
(545)
191
(443)
GAAP net profit (loss)
(7,138)
(1,485)
(3,823)
(4,083)
Stock-based compensation expenses
836
1,180
441
573
Revaluation of other investments
324
(5,328)
324
-
Revaluation of derivative warrant
liability
43
(1,552)
42
(127)
Non-GAAP net loss
(5,935)
(7,185)
(3,016)
(3,637)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190809005021/en/
Investor Relations Contact: Miri Segal-Scharia CEO MS-IR
LLC msegal@ms-ir.com 917-607-8654
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