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 2020. Foresight ended
the fourth quarter of 2020 with $43.9 million in cash and
short-term deposits.
Foresight reported a GAAP operating loss of $12.84 million for
the full year 2020 which is an approximately 15% less than the GAAP
operating loss of $15.03 million reported for the full year 2019.
Foresight reported a GAAP net loss of $3.96 million and $15.32
million for the fourth quarter 2020 and the full year,
respectively, and a non-GAAP net loss of $3.71 million for the
fourth quarter and $14.16 million for the full year 2020.
“We achieved important key milestones during the fourth quarter
of 2020 and maintained solid progress throughout the year in spite
of the COVID-19 pandemic,” said Haim Siboni, Foresight’s CEO. “We
are entering 2021 with a strong balance sheet, following successful
capital raises including $26 million raised in our registered
direct offering announced on December 28, 2020. We will continue to
build on our innovative product portfolio, which has been validated
through key prototype orders and partnerships in Europe, Asia and
North America.”
“The successful year also extends to our subsidiary, Eye-Net
Mobile, and our affiliate, Rail Vision. Both companies achieved
major business milestones during the fourth quarter of 2020, as
Rail Vision received a second investment of $10 million from a
leading Tier One European-based group, Knorr-Bremse, in October
2020, and Eye-Net Mobile signed a distribution agreement with
Cornes Technologies, a leading Japanese trading house. We believe
that Rail Vision and Eye-Net Mobile are poised for further growth
in 2021,” concluded Mr. Siboni.
Fourth Quarter 2020 Financial
Results
- Research and development (R&D) expenses, net for the fourth
quarter of 2020 were $2,189,000 compared to $3,203,000 in the
fourth quarter of 2019. The decrease is attributed mainly to a
decrease in subcontracted and consulting services, decreases in
payroll and related expenses (attributed to the reorganization of
the field application engineering, sales & marketing, and
R&D departments made in the fourth quarter of 2019) and
decreases in travel expenses.
- General and administrative (G&A) expenses for the fourth
quarter 2020 were $793,000 compared to $803,000 in the fourth
quarter of 2019.
- GAAP net loss for the fourth quarter of 2020 was $3,964,000
compared to a GAAP net loss of $4,370,000 in the fourth quarter of
2019. The decrease is attributed mainly to the decrease in R&D
expenses, offset by the increase in marketing and sales
expenses.
- Non-GAAP net loss for the fourth quarter of 2020 was $3,712,000
compared to a non-GAAP net loss of $4,018,000 in the fourth quarter
of 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 share-based
compensation expenses.
Full Year 2020 Financial
Results
- R&D expenses, net for the full year ended December 31, 2020
were $8,563,000, compared to $10,210,000, in the full year ended
December 31, 2019. The decrease is attributed mainly to a decrease
in subcontracted and consulting services and travel expenses,
offset by an increase in payroll and related expenses. The decrease
in R&D expenses is a result of the reduction in the monthly
operating expenses made by the Company during the second quarter of
2020 due to the COVID-19 outbreak.
- G&A expenses for the full year ended December 31, 2020 were
$3,005,000, compared to $3,469,000 in the full year ended December
31, 2019. The decrease is attributed mainly to a decrease in
payroll and related expenses and a decrease in professional
services.
- GAAP net loss for the full year ended December 31, 2020 was
$15,324,000 compared to a GAAP net loss of $15,439,000 in the full
year ended December 31, 2019.
- Non-GAAP net loss for the full year ended December 31, 2020 was
$14,162,000 compared to a non-GAAP net loss of $13,476,000 in the
full year ended December 31, 2019. The increase is attributed to
the increase in equity in the net loss of an affiliated company. 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 share-based
compensation expenses, revaluation of other investments and
revaluation of derivative warrant liability expenses.
Full year ended
December 31,
Three months ended
December 31,
(thousands of U.S. dollars)
2020
2019
2020
2019
GAAP Results
Net loss
$(15,324)
$(15,439)
$(3,964)
$(4,370)
Non-GAAP Results
Net loss
$(14,162)
$(13,476)
$(3,712)
$(4,018)
Balance Sheet Highlights
- Cash and short-term deposits totaled $43.9 million as of
December 31, 2020, compared to $10.1 million as of December 31,
2019.
- Investments in Rail Vision Ltd. totaled $4.1 million as of
December 31, 2020, compared to $6.7 million as of December 31,
2019. The decrease is attributed primarily to Foresight’s exposure
to Rail Vision’s net loss in 2020. As of December 31, 2020, we no
longer have a significant influence in Rail Vision Ltd., due to a
decrease in our holdings and voting rights resulting from the
dilution that occurred in October 2020 as a result of Knorr
Bremse’s additional investment in Rail Vision Ltd. As a result, we
stopped using the equity method for accounting purposes as of
suchdate and started measuring the investment in Rail Vision based
on its actual cost offset by impairment.
- GAAP total equity totaled $47.1 million as of December 31,
2020, compared to $16.3 million as of December 31, 2019. The
increase is attributed to the receipt of proceeds from the
securities offerings completed in 2020 offset by the net loss
accrued during the same period.
- Non-GAAP total equity totaled $47.1 million as of December 31,
2020, compared to $16.6 million as of December 31, 2019.
- A reconciliation between GAAP total equity results and non-GAAP
total equity results is provided following the financial statements
that are part of this release. Non-GAAP results exclude revaluation
of other investments.
Fourth Quarter Corporate
Highlights:
- Foresight Prices $26 Million Registered Direct Offering:
On December 28, 2020, Foresight announced that it entered into
agreements with investors for the purchase and sale of 6,265,063 of
American Depositary Shares (ADS) at a price of $4.15 per ADS. The
gross proceeds of the offering were approximately $26 million,
which will be used for working capital and other general corporate
purposes.
- Foresight Executed Sales Agreement: On October 2, 2020,
Foresight entered into a sales agreement with A.G.P./Alliance
Global Partners, pursuant to which it was able to offer and sell up
to $8.1 million of its ADSs from time to time. The offering has
been fully exhausted.
- Foresight Completes Integration of NVIDIA Platforms for Use
in Autonomous Machines and Vehicles: In November 2020,
Foresight completed integration of its QuadSight® software on the
NVIDIA® Jetson AGX Xavier™ platform, enabling shuttles, agriculture
equipment and heavy equipment machines to operate Foresight’s
stereoscopic obstacle detection software. Foresight also joined the
NVIDIA Inception program, providing go-to-market support,
technological assistance and expertise to AI startups using NVIDIA
processing units.
- Rail Vision Receives Order for Electrically Powered Light
Rail Vehicle Systems from Knorr-Bremse: Rail Vision entered the
multi-billion-dollar electrically powered light rail market with an
order for two system samples from Knorr-Bremse in December 2020.
Additionally, Knorr-Bremse ordered the customization of system
features according to its requirements. Revenue from the sale is
expected to total approximately 400,000 Euro.
- Foresight to Take Part in Automation of Future Heavy-Duty
Vehicles European Project: As part of the Horizon 2020
framework program, the European Commission awarded a grant of
nearly 20 million Euro for the All-Weather Autonomous Real
logistics operations and Demonstrations (AWARD) consortium. The
project intends to develop and safely operate autonomous heavy-duty
vehicles in harsh weather conditions. Foresight will provide its
QuadSight® multispectral vision solution to the project and is
expected to receive approximately $1 million, out of which
approximately $0.5 million has been received.
- Eye-Net Mobile Signs Distribution Agreement with Leading
Japanese Trading House: In October 2020, Eye-Net Mobile
announced a distribution agreement with Cornes Technologies, a
leading Japanese trading house. According to the agreement, Cornes
Technologies will promote the Eye-Net™ cellular-based accident
prevention suite in products and applications of third parties in
Japan. The distribution agreement follows multiple successful pilot
projects with Japanese multinational companies, as well as ongoing
interest from additional Japanese companies.
- Rail Vision Receives $10 Million Investment from Leading
Tier One European Based Knorr-Bremse: Following an initial
investment of $10 million in March 2019, Knorr-Bremse made an
additional investment of $10 million in Rail Vision in October
2020. Following the additional investment, Knorr-Bremse owns 36.79%
of Rail Vision’s outstanding capital. The investment reflected Rail
Vision’s post-money valuation of approximately $50 million. As a
result of the investment, Foresight’s holdings in Rail Vision
amount to 19.34% (16.49% on a fully diluted basis).
- Foresight Launches COVID-19 Mass Screening Solution in
Japan; Showcases Solution in United Arab Emirates: Foresight
launched its COVID-19 symptom detection mass screening solution at
SEECAT 2020, a technology exhibition targeting the public defense
and safety sectors. A leading Japanese trading house presented
Foresight’s solution at the exhibition, which took place in October
2020 in Tokyo, Japan. In December 2020, Foresight exhibited the
same solution at the GITEX Future Stars 2020 conference in the
United Arab Emirates. The mass screening solution leverages
Foresight’s expertise in thermal and visible light cameras to
detect several symptoms of COVID-19.
- Foresight Partners with University of Michigan TechLab at
MCity: In December 2020, Foresight announced that it will join
the 2021 startup cohort at the University of Michigan’s TechLab at
MCity. During the one-year program, Foresight will work with
students from the University of Michigan to further develop its
automotive vision system designed for Advanced Driver Assistance
Systems and autonomous vehicles. The team will be mentored by
Foresight’s Head of Algorithm and other leading Foresight
employees.
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 share-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) is a
technology company developing smart multi-spectral vision software
solutions and cellular-based applications. 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” accident-prevention
solutions.
Foresight’s vision solutions include modules of automatic
calibration, sensor fusion and dense 3D point cloud that can be
applied to different markets such as automotive, defense,
autonomous vehicles and heavy industrial equipment. Eye-Net
Mobile’s cellular-based solution suite provides real-time
pre-collision alerts to enhance road safety and situational
awareness for all road users in the urban mobility environment by
incorporating cutting-edge AI technology and advanced
analytics.
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 belief that it is entering 2021 with a strong balance sheet,
that it will continue to build on its innovative product portfolio,
which it believes has been validated through key prototype orders
and partnerships in Europe, Asia and North America, that it
believes that Rail Vision and Eye-Net Mobile are poised for further
growth in 2021, Rail Vision’s expected revenue from Knorr-Bremse,
and that Foresight will work with students from the University of
Michigan to further develop its automotive vision system designed
for Advanced Driver Assistance Systems and autonomous vehicles.
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. 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 December 31, 2020
(Unaudited)
As of December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents
$
38,772
$
4,827
Short term deposits
5,166
5,233
Marketable equity securities
42
23
Other receivables
401
613
Total current assets
44,381
10,696
Non-current assets:
ROU asset
1,104
1,278
Investment in equity securities
4,062
-
Investment in affiliate company
-
6,729
Fixed assets, net
427
631
5,593
8,638
Total assets
$
49,974
$
19,334
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade payables
$
391
$
498
Operating lease liability
427
411
Other accounts payables
1,207
1,130
Total current liabilities
2,025
2,039
Non-current liabilities:
Operating lease liability
853
1,007
-
Total liabilities
2,878
3,046
Shareholders’ equity:
Ordinary shares of NIS 0 par value;
-
-
Additional paid-in capital
111,739
65,681
Accumulated deficit
(64,717
)
(49,393
)
Total Foresight Autonomous Holdings LTD.
shareholders’ equity
47,022
16,288
Non-Controlling Interest
74
-
Total equity
47,096
16,288
Total liabilities and shareholders’
equity
$
49,974
$
19,334
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands
Year ended December
31,
Three months ended December
31,
2020
(Unaudited)
2019
2020
(Unaudited)
2019
Research and development expenses, net
(8,563)
(10,210)
(2,189)
(3,203)
Marketing and sales
(1,268)
(1,350)
(295)
266
General and administrative expenses
(3,005)
(3,469)
(793)
(803)
Operating loss
(12,836)
(15,029)
(3,277)
(3,740)
Equity in net loss of an affiliated
company
(2,667)
(839)
(668)
(671)
Financing income (expenses), net
179
429
(19)
41
Net loss
(15,324)
(15,439)
(3,964)
(4,370)
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
Year ended December
31,
Three months ended December
31,
2020 (Unaudited)
2019
2020 (Unaudited)
2019
Net cash used in operating
activities
Loss for the Period
(15,324)
(15,439)
(3,964)
(4,370)
Adjustments to reconcile profit to net
cash used in operating activities:
3,829
3,578
977
1,319
Net cash used in operating
activities
(11,495)
(11,861)
(2,987)
(3,051)
Cash Flows from Investing
Activities
Changes in short term deposits
67
7,273
(24)
2,835
Proceeds from other investments
-
21
-
-
Proceed from sales of marketable equity
securities
68
-
-
-
Purchase of fixed assets
(50)
(103)
(2)
(30)
Net cash provided by (used in)
investing activities
85
7,191
(26)
2,805
Cash flows from Financing
Activities:
Issuance of ordinary shares, net of
issuance expenses
45,017
6,521
32,088
-
Exercise of options, net of issuance
expenses
263
-
263
-
Net cash provided by financing
activities
45,280
6,521
32,351
-
Effect of exchange rate changes on cash
and cash equivalents
75
(182)
39
3
Increase (decrease) in cash and cash
equivalents
33,945
1,669
29,377
(243)
Cash and cash equivalents at the
beginning of the period
4,827
3,158
9,395
5,070
Cash and cash equivalents at the end of
the period
38,772
4,827
38,772
4,827
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:
Year ended December
31,
Three months ended
December 31,
2020 (Unaudited)
2019
2020 (Unaudited)
2019
Share-based payment
1,162
1,638
252
352
Depreciation
254
259
62
66
Revaluation of derivative warrant
liability
-
1
-
-
Equity in loss of an affiliated
company
2,667
839
668
671
Revaluation of marketable equity
securities
(87)
-
(23)
13
Revaluation of other investments
-
324
-
-
exchange rate changes on cash and cash
equivalents
(75)
182
(39)
(3)
Changes in assets and liabilities:
Decrease (increase) in other
receivables
212
(142)
45
160
Increase (decrease) in trade payables
(296)
154
14
(177)
Change in operating lease liability
60
110
75
5
Increase (decrease) in other accounts
payable
(68)
213
(77)
232
Adjustments to reconcile loss to net
cash used in operating activities
3,829
3,578
977
1,319
Non-Cash
activities
Year ended
Three months ended
December 31,
December 31,
2020 (Unaudited)
2019
2020 (Unaudited)
2019
Accrued issuance expenses recorded in
equity
310
--
310
--
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDERS'
EQUITY
(Unaudited) U.S. dollars in
thousands
As of December 31,
2020
As of December 31,
2019
GAAP Total equity
47,096
16,288
Revaluation of other investments
-
324
Non-GAAP Total equity
47,096
16,612
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited) U.S. dollars in
thousands
Year ended December 31
Three months ended December
31,
2020
2019
2020
2019
GAAP operating loss
(12,836)
(15,029)
(3,277)
(3,740)
Share-based compensation in research and
development
469
568
95
126
Share-based compensation in sales and
marketing
62
214
16
62
Share-based compensation in general and
administrative
631
856
141
164
Non-GAAP operating loss
(11,674)
(13,391)
(3,025)
(3,388)
GAAP Financing income (expenses),
net
179
429
(19)
41
Revaluation of other investments
-
324
-
-
Revaluation of derivative warrant
liability expense
-
1
-
-
Non-GAAP Financing income (expenses),
net
179
754
(19)
41
GAAP net loss
(15,324)
(15,439)
(3,964)
(4,370)
Share-based compensation expenses
1,162
1,638
252
352
Revaluation of other investments
-
324
-
-
Revaluation of derivative warrant
liability expenses
-
1
-
-
Non-GAAP net loss
(14,162)
(13,476)
(3,712)
(4,018)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225006166/en/
Investor Relations Contact: Miri Segal-Scharia CEO MS-IR
LLC msegal@ms-ir.com 917-607-8654
Foresight Autonomous (NASDAQ:FRSX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Foresight Autonomous (NASDAQ:FRSX)
Historical Stock Chart
From Apr 2023 to Apr 2024