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, 2020. Foresight
ended the third quarter of 2020 with $14.5 million in cash and
short-term deposits, GAAP net loss of $11.4 million and non-GAAP
net loss for the same period of $10.5 million.
“Foresight continued to demonstrate steady progress in the third
quarter, as we established new partnerships with influential
players in Europe, Japan and China,” commented Haim Siboni, CEO of
Foresight. “We are confident that our new relationships with
leading companies such as Elbit Systems and FLIR Systems will lead
to stable sales growth, as we continue to refine our products and
technology based on feedback from our prototype system sales. I am
proud of how Foresight has responded to the market situation posed
by the COVID-19 pandemic, as we have worked not only to maintain
stable business performance, but also to develop a COVID-19 symptom
screening solution which leverages our leading thermal and
visible-light camera technology.”
“The third quarter also saw notable progress for our subsidiary
Eye-Net Mobile and our affiliated company Rail Vision,” continued
Mr. Siboni. “Both companies made impressive strides in new markets,
demonstrating the long-term potential of their innovative
technologies. Rail Vision has accomplished the first commercial
agreement for its shunting yard solution which is currently being
evaluated by a major European train operator, while Eye-Net
Mobile’s Eye-Net™ Protect solution is undergoing pilot projects
with two multi-billion-dollar Japanese companies. We are optimistic
that successful evaluation could lead to further collaboration with
these impressive partners.”
Third Quarter 2020 Financial
Results
- Research and development (R&D) expenses for the three
months ended September 30, 2020 were $2,157,000 compared to
$2,547,000 in the three months ended September 30, 2019. The
decrease is attributed mainly to a decrease in subcontracted
services.
- General and administrative (G&A) expenses for the three
months ended September 30, 2020 were $918,000 compared to $893,000
in the three months ended September 30, 2019. The increase is
attributed mainly to an increase in payroll expenses partially
offset by a decrease in professional services.
- GAAP net loss for the three months ended September 30, 2020 was
$3,980,000, or $0.02 loss per ordinary share, compared to GAAP net
loss of $3,931,000, or $0.03 loss per ordinary share, in the three
months ended September 30, 2019. The increase is attributed mainly
to an increase in equity in net loss of an affiliated company.
- Non-GAAP net loss for the three months ended September 30, 2020
was $3,420,000, or $0.02 loss per ordinary share, compared to a
non-GAAP net loss of $3,439,000, or $0.01 loss per ordinary share,
in the three months ended September 30, 2019. A reconciliation
between GAAP net loss and non-GAAP net loss is provided following
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 $14.5
million as of September 30, 2020, compared to $13.1 million on
September 30, 2019.
- Investments in Rail Vision Ltd. totaled $4.7 million as of
September 30, 2020, compared to $7.4 million on September 30, 2019.
The decrease is attributed mainly to equity in net loss of Rail
Vision’s results.
- GAAP shareholders’ equity totaled $18.8 million as of September
30, 2020, compared to $16.3 million as of December 31, 2019.
- Non-GAAP shareholders’ equity totaled $18.8 million as of
September 30, 2020, compared to $16.6 million as of December 31,
2019.
As of September 30,
As of
December 31,
(thousands of U.S. dollars)
2020
2019
2019
GAAP Results
Shareholders’ equity
$ 18,767
$ 20,307
$ 16,288
Non-GAAP Results
Shareholders' equity
$ 18,767
$ 20,631
$ 16,612
A reconciliation between GAAP shareholders’ equity results and
non-GAAP shareholders’ equity results is provided following the
financial statements that are part of this release. Non-GAAP
results exclude revaluation of other investments.
Recent Corporate
Highlights:
- Foresight Received Two Product Orders from Elbit Systems
Ltd.: In July, Foresight received two orders for product
development and customization from Elbit Systems Land Ltd., a
subsidiary of the leading Israeli defense company Elbit Systems.
According to the agreement, Foresight will supply a QuadSight®
prototype system with wide-angle field-of-view detection
capabilities to meet Elbit Systems’ specific requirements. The
modified prototype enhances the QuadSight system’s ability to
detect objects in a wider area of the road ahead.
- Foresight Initiated Pilot Project for COVID-19 Screening
Solution: Foresight announced in July that its COVID-19 symptom
screening solution, which is designed to detect several notable
symptoms of the coronavirus, will be tested in a pilot project with
Meuhedet, one of Israel’s largest health maintenance organizations.
The pilot will take place in Israel in the city of Ashdod, where
Meuhedet’s largest clinic serves approx. 50,000 patients. The
screening solution, based on Foresight’s extensive experience with
thermal and visible light cameras, is designed to detect high body
temperature and signs of fatigue.
- Foresight Received Order for Two Prototype Systems from
Multi-Billion-Dollar Chinese Technology Company: Two QuadSight
vision system prototypes were ordered in July by the automotive
solutions business unit of a multi-billion-dollar global Chinese
technology company. The technology company may use Foresight’s
technology to improve its autonomous vehicle and safety solutions,
and the prototype sales could result in future collaboration.
- Rail Vision Signed Commercial Agreement to Supply Shunting
Yard Systems to Leading European Train Operator: Rail Vision,
an affiliate of Foresight, announced in September that it signed a
commercial agreement with an affiliate of Knorr-Bremse AG, a $17
billion Europe-based group. According to the agreement,
Knorr-Bremse will supply Rail Vision’s Assisted Remote Shunting
(ARS) systems to a leading European train operator. As first
announced in April, Rail Vision received an initial order from a
leading European train operator for an ARS prototype system and to
execute an Operational Functional Test. According to the terms of
the agreement, the train operator may choose to purchase 30 ARS
systems, and may then exercise the option to purchase an additional
45 ARS systems.
- Eye-Net Mobile Received Patent Approval for Accident
Prevention Solution: In late July, Eye-Net Mobile, a
wholly-owned subsidiary of Foresight, received a notice of
allowance from the U.S. Patent and Trademark Office for its patent
application for a “system and method for preventing car accidents
and collisions between vehicles and pedestrians.” The patented
technology refers to Eye-Net Mobile’s accident prevention system,
which predicts collisions between vehicles and pedestrians through
a dedicated software application on the mobile devices of
pedestrians and vehicle users.
- Eye-Net Mobile Announced Two Pilot Projects with Global
Japanese Technology Companies: In August, Eye-Net Mobile
announced two pilot projects for its Eye-Net Protect cellular based
V2X (vehicle-to-everything) accident prevention solution. The
Eye-Net Protect system will be evaluated by a multi-billion-dollar
global Japanese technology company, as well as by a
multi-billion-dollar multinational Japanese electronics company.
The projects will evaluate the Software Development Kit (SDK)
configuration of the Eye-Net Protect solution.
- Foresight Completed Development of Commercial Version of
Automatic Calibration Software: In September, Foresight
announced the completion of a commercial version of its
groundbreaking automatic calibration software. Foresight’s software
solution ensures stereoscopic sensors remain calibrated regardless
of their position on the car. These calibration capabilities are
essential to create the accurate stereoscopic 3D perception needed
for reliable automotive vision systems. Additionally, Foresight
submitted two new patent applications related to multiple-sensor
camera systems.
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 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 Advanced Driver Assistance Systems (ADAS), 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.
For more information about Foresight and its wholly owned
subsidiary, Foresight Automotive, visit www.foresightauto.com, follow @ForesightAuto1 on
Twitter, or join Foresight Automotive on LinkedIn.
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 expected stable sales growth and further collaborations with
partners. 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 31, 2020, and in any subsequent filings
with the SEC. The following factors, among others, could cause
actual results to differ materially from those described in the
forward-looking statements: Foresight’s burn rate, its ability to
generate revenue, and its ability to continue as a going concern.
Based on the projected cash flows and Foresight’s cash balances as
of September 30, 2020, Foresight’s management is of the opinion
that as of September 30, 2020, without further fund raising it will
not have enough resources to enable it to continue advancing its
activities for a period of at least 12 months. As a result, there
is substantial doubt about Foresight’s ability to continue as a
going concern. 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, 2020
As of September 30, 2019
As of December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents
$
9,395
$
5,070
$
4,827
Short Term Deposits
5,142
8,068
5,233
Marketable equity
securities
19
36
23
Other receivables
446
773
613
Total current assets
15,002
13,947
10,696
Non-current assets:
ROU Asset
1,127
1,340
1,278
Investment in affiliate
company
4,730
7,400
6,729
Fixed assets, net
487
668
631
6,344
9,408
8,638
Total assets
$
21,346
$
23,355
$
19,334
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Trade payables
$
188
$
675
$
498
Operating Lease Liability
401
413
411
Other accounts payables
1,158
892
1,130
Total current liabilities
1,747
1,980
2,039
Non-current liabilities:
Operating Lease Liability
832
1,068
1,007
-
Total liabilities
2,579
3,048
3,046
Shareholders’ equity:
Common stock of NIS 0 par
value;
-
-
-
Additional paid-in capital
79,478
65,330
65,681
Accumulated deficit
(60,753
)
(45,023
)
(49,393
)
Total Foresight autonomous
holdings LTD. Shareholders’ equity
18,725
20,307
19,334
Non-Controlling Interest
42
-
-
Total equity
18,767
20,307
16,288
Total liabilities and stockholders’
equity
$
21,346
$
23,355
$
19,334
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,
2020
2019
2020
2019
Research and development expenses, net
(6,374)
(7,007)
(2,157)
(2,547)
Marketing and sales
(973)
(1,616)
(307)
(519)
General and administrative expenses
(2,212)
(2,666)
(918)
(893)
Operating loss
(9,559)
(11,289)
(3,382)
(3,959)
Equity in net gain (loss) of an affiliated
company
(1,999)
(168)
(655)
(184)
Financing income (expenses), net
198
388
57
212
Net loss
(11,360)
(11,069)
(3,980)
(3,931)
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,
2020
2019
2020
2019
Net cash used in operating
activities
Loss for the Period
(11,360)
(11,069)
(3,980)
(3,931)
Adjustments to reconcile profit (loss) to
net cash used in operating activities:
2,852
2,259
1,249
827
Net cash used in operating
activities
(8,508)
(8,810)
(2,731)
(3,104)
Cash Flows from Investing
Activities
Changes in short term deposits
91
4,438
1,987
4,212
Proceed from other investments
-
21
-
-
Proceed from sales marketable
securities
68
-
-
-
Purchase of fixed assets
(48)
(73)
(39)
(34)
Net cash provided by investing
activities
111
4,386
1,948
4,178
Cash flows from Financing
Activities:
Issuance of ordinary shares and warrants,
net of issuance expenses
12,929
6,521
(153)
-
Net cash provided (used) by financing
activities
12,929
6,521
(153)
-
Effect of exchange rate changes on cash
and cash equivalents
36
(185)
19
(51)
Increase (decrease) in cash and cash
equivalents
4,568
1,912
(917)
1,023
Cash and cash equivalents at the
beginning of the period
4,827
3,158
10,312
4,047
Cash and cash equivalents at the end of
the period
9,395
5,070
9,395
5,070
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,
2020
2019
2020
2019
Share-based payment
910
1,286
560
450
Depreciation
192
193
61
65
Revaluation of derivative warrant
liability
-
1
-
(42)
Equity in loss (gain) of an affiliated
company
1,999
168
655
184
Revaluation of securities
(64)
(13)
(5)
(5)
Revaluation of other investments
-
324
-
-
exchange rate changes on cash and cash
equivalents
(36)
185
(19)
51
Changes in assets and liabilities:
Decrease (increase) in other
receivables
167
(302)
(135)
(264)
Increase (decrease) in Trade payables
(310)
331
94
368
Change in operating lease liability
(15)
105
2
30
Increase (decrease) in other accounts
payable
9
(19)
36
(10)
Adjustments to reconcile loss to net
cash used in operating activities
2,852
2,259
1,249
827
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDERS'
EQUITY
U.S. dollars in thousands
As of September 30, 2020
As of September 30, 2019
As of December 31, 2019
GAAP Shareholders' equity
18,767
20,307
16,288
Revaluation of other investments
--
324
324
Non-GAAP Shareholders' equity
18,767
20,631
16,612
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands
Nine months ended September
30
Three months ended September
30,
2020
2019
2020
2019
GAAP operating loss
(9,559)
(11,289)
(3,382)
(3,959)
Stock-based compensation in research and
development
374
442
215
158
Stock-based compensation in sales and
marketing
46
152
14
54
Stock-based compensation in general and
administrative
490
692
331
238
Non-GAAP operating loss
(8,649)
(10,003)
(2,822)
(3,509)
GAAP Financing income (expenses),
net
198
388
57
212
Revaluation of other investments
--
324
--
-
Revaluation of derivative warrant
liability expenses
--
1
--
42
Non-GAAP Financing income, net
198
713
57
254
GAAP net loss
(11,360)
(11,069)
(3,980)
(3,931)
Stock-based compensation expenses
910
1,286
560
450
Revaluation of other investments
--
324
--
-
Revaluation of derivative warrant
liability
--
1
--
42
Non-GAAP net loss
(10,450)
(9,457)
(3,420)
(3,439)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201112006055/en/
Investor Relations Contact: Miri Segal-Scharia CEO MS-IR
LLC msegal@ms-ir.com 917-607-8654
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