Foresight Autonomous Holdings Ltd., an innovator in automotive
vision systems (Nasdaq and TASE: FRSX), today reported financial
results for the first quarter of 2020. Foresight ended the first
quarter of 2020 with $6.8 million in cash and short-term deposits.
This amount excludes gross proceeds of an aggregate of $8 million
from previously announced offerings that closed on April 30, 2020
and May 21, 2020.
The Company reported GAAP net loss of $4 million for the first
quarter 2020, and non-GAAP net loss for the same period of $3.9
million.
“Foresight achieved several important milestones during the
first quarter of 2020, beginning with our newly established
strategic collaboration with FLIR Systems, Inc. to integrate our
QuadSight® vision system with their leading thermal imaging
systems,” said Haim Siboni, Foresight’s CEO. “This collaboration
will allow us to market and distribute the QuadSight system to
FLIR’s extensive global customer base.”
“Our unique system, comprised of four thermal and visible-light
cameras, showcases the capability of FLIR thermal cameras to
greatly improve ADAS and autonomous vehicle safety at various light
and weather conditions. We look forward to a productive and
mutually beneficial relationship. In addition, during the first
quarter we announced another sale to a Japanese vehicle
manufacturer. We are encouraged by the endorsement of our
technology from global manufacturers in various verticals.”
“The COVID-19 pandemic had a minor business impact on the
Company’s operations during the first quarter of 2020. Foresight
and its subsidiaries have adjusted their operations accordingly to
the pandemic affects and are maintaining all business activities as
usual, with minor changes to business development, marketing, and
research and development activities. Additionally, the Company
reduced its monthly cash burn spending by more than 20% as of March
2020, in response to the financial implications of the pandemic,”
concluded Mr. Siboni.
First Quarter 2020 Financial
Results
- Research and development (R&D) expenses for the three
months ended March 31, 2020 were $2,341,000, compared to $2,070,000
in the three months ended March 31, 2019. The increase is
attributed mainly to an increase in payroll and related expenses,
offset by a decrease in subcontracted services.
- General and administrative (G&A) expenses for the three
months ended March 31, 2020 were $660,000, compared to $908,000 in
the three months ended March 31, 2019. The decrease is attributed
primarily to payroll and related expenses and a decrease in
professional services.
- GAAP net loss for the three months ended March 31, 2020 was
$4,049,000, or $0.026 per ordinary share, compared to a GAAP net
loss of $3,315,000, or $0.025 per ordinary share, in the first
quarter of 2019. The increase is attributed primarily to equity in
net loss of an affiliated company.
- Non-GAAP net loss for the three months ended March 31, 2020 was
$3,894,000, or $0.025 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, 2019.
- 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 $6.8 million as of March
31, 2020, compared to $10.1 million on December 31, 2019.
- Investments in our affiliated company Rail Vision Ltd. totaled
$5.9 million as of March 31, 2020, compared to $6.7 million as of
December 31, 2019. The decrease is attributed primarily to equity
in net loss of Rail Vision’s results in first quarter of 2020.
- GAAP and Non GAAP shareholders’ equity totaled $12.4 million as
of March 31, 2020, compared to $16.3 million and $16.6 million,
respectively, as of December 31, 2019.
- A reconciliation between GAAP shareholders’ equity and non-GAAP
shareholders’ equity is provided following the financial statements
that are part of this release. Non-GAAP results exclude revaluation
of other investments and derivative warrant liability.
First Quarter 2020 Corporate
Highlights:
- Foresight and FLIR Systems, Inc. Sign Agreement to Develop,
Market and Distribute QuadSight Vision System: According to the
agreement, Foresight and FLIR Systems, Inc. will establish a
strategic cooperation plan for the development, marketing and
distribution of Foresight’s QuadSight vision system, combined with
FLIR Systems’ infrared cameras, to a wide range of prospective
customers. FLIR is the world’s largest and leading commercial
company specializing in the design and production of thermal
imaging cameras, components, and imaging sensors.
- Foresight Receives Order of QuadSight Prototype from a
Multi-Billion Dollar Japanese Vehicle Manufacturer: In
February, Foresight announced a sale of a prototype of its
QuadSight four-camera vision system targeted for the ADAS and
autonomous vehicle market. The prototype system was ordered by a
multi-billion dollar Japanese vehicle manufacturer, which requested
rapid delivery of the system. The leading global vehicle
manufacturer ordered the prototype system following live technical
demonstrations in Japan at the end of January 2020.
- Foresight Announces Major New Technological Features for
QuadSight Vision System: In January, Foresight announced the
development of significant advanced features for its QuadSight
four-camera vision system. The new features include automatic
calibration, 3D point cloud and multispectral sensor fusion. The
features were developed to meet customer requirements following
successful evaluation of several QuadSight system prototypes
purchased over the past year.
- Eye-Net Mobile Signs Agreement with Smart City Company
NoTraffic Ltd.: Eye-Net Mobile Ltd., a subsidiary of Foresight,
announced an agreement with NoTraffic Ltd., a developer of novel
and proprietary smart city infrastructure solutions. According to
the agreement, the companies will collaborate to develop and
optimize the technological capabilities of Eye-Net Mobile’s
cellular-based V2X accident prevention solution and NoTraffic’s
intelligent traffic light. Following the completion of joint
development, the companies will promote the integration and
commercialization of the combined solution with various North
American municipalities.
- Rail Vision Receives First Order of 500,000 Euro from
Leading European Train Operator: Rail Vision Ltd., an
affiliated company of Foresight, received its first commercial
order from a leading European train operator. The order consists of
purchasing an Assisted Remote Shunting prototype system and an
Operational Functional Test (OFT) for a total value of
approximately 500,000 Euro. A commercial agreement with the leading
European train operator detailing future phases is expected to be
signed in the upcoming weeks. A successful testing of Rail Vision’s
Assisted Remote Shunting prototype could entail the purchase of
approximately 30 shunting yard systems for an additional 2.5
million Euro. The European train operator may also choose to
exercise its option to purchase an additional 45 shunting yard
systems for a total value of 3.5 million Euro.
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 and the comprehensive
results that excludes the effect of stock-based compensation
expenses, the revaluation of other investments and revaluation of
derivative warrant liability. 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 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 @ForesightAuto 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 strategic collaboration with FLIR Systems, Inc., including that
the collaboration will allow Foresight to market and distribute the
QuadSight system to FLIR’s extensive global customer base;
Eye-Net’s collaboration with Smart City Company NoTraffic Ltd., and
that the companies will promote the integration and
commercialization of the combined solution with various North
American municipalities; and that a successful testing of Rail
Vision’s Assisted Remote Shunting prototype could result in the
signing of a commercial agreement and entail the purchase of
approximately 30 shunting yard systems for an additional 2.5
million Euro, and that the European train operator may also choose
to exercise its option to purchase an additional 45 shunting yard
systems for a total value of 3.5 million Euro. 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 March 31, 2020, Foresight’s management is of the opinion that as
of March 31, 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 March 31, 2020
As of March 31, 2019
As of December 31,
2019
ASSETS
Current assets:
Cash and cash equivalents
$
2,584
$
8,954
$
4,827
Short term deposits
4,237
10,323
5,233
Marketable equity securities
66
20
23
Other investments
-
345
-
Other receivables
352
488
613
Total current assets
7,239
20,130
10,696
Non-current assets:
ROU asset
1,225
1,493
1,278
Investment in affiliate company
5,983
7,478
6,729
Fixed assets, net
571
756
631
7,779
9,727
8,638
Total assets
$
15,018
$
29,857
$
19,334
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Trade payables
$
165
$
404
$
498
Operating lease liability
391
400
411
Other accounts payables
1,149
1,155
1,130
Total current liabilities
1,705
1,959
2,039
Non-current liabilities:
Operating lease liability
919
1,189
1,007
-
Total liabilities
2,624
3,148
3,046
Shareholders’ equity:
Common stock of NIS 0 par value;
-
-
-
Additional paid-in capital
65,836
63,978
65,681
Accumulated deficit
(53,442
)
(37,269
)
(49,393)
Total shareholders’ equity
12,394
26,709
16,288
Total liabilities and shareholders’
equity
$
15,018
$
28,857
$
19,334
FORESIGHT AUTONOMOUS
HOLDINGS LTD. INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS U.S.
dollars in thousands
Three months ended March
31,
2020
2019
Research and development expenses, net
$
(2,341
)
$
(2,070
)
Marketing and sales
(433
)
(598
)
General and administrative expenses
(660
)
(908
)
Operating loss
(3,434
)
(3,576
)
Equity in net loss of an affiliated
company
(746
)
(90
)
Financing income, net
131
351
Net loss
$
(4,049
)
$
(3,315
)
FORESIGHT AUTONOMOUS
HOLDINGS LTD. INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW U.S. dollars in
thousands
Three Months ended March
31,
2020
2019
Net cash used in operating
activities
Loss for the period
(4,049)
(3,315)
Adjustments to reconcile profit (loss) to
net cash used in operating activities:
800
802
Net cash used in operating
activities
(3,249)
(2,513)
Cash Flows from Investing
Activities
Changes in short term deposits
996
2,183
Purchase of fixed assets
(6)
(31)
Net cash provided in investing
activities
990
2,152
Cash flows from Financing
Activities:
Issuance of ordinary shares, net of
issuance expenses
-
6,231
Net cash provided by financing
activities
-
6,231
Effect of exchange rate changes on cash
and cash equivalents
16
(74)
Increase (decrease) in cash and cash
equivalents
(2,243)
5,796
Cash and cash equivalents at the
beginning of the period
4,827
3,158
Cash and cash equivalents at the end of
the period
2,584
8,954
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:
Three months
ended March 31,
2020
2019
Share-based payment
155
395
Depreciation
66
62
Revaluation of warrant liability
-
1
Equity in loss of an affiliated
company
746
90
Revaluation of securities
(43)
3
exchange rate changes on cash and cash
equivalents
(16)
74
Changes in assets and liabilities:
Decrease in other receivables
261
24
Decrease in trade payables
(333)
(33)
Change in operating lease liability
(48)
50
Increase in other accounts payable
12
136
Adjustments to reconcile loss to net
cash used in operating activities
800
802
FORESIGHT AUTONOMOUS
HOLDINGS LTD. SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDERS' EQUITY
U.S. dollars in thousands
As of March 31, 2020
As of March 31, 2019
As of December 31,
2019
GAAP Shareholders' equity
12,394
26,709
16,288
Revaluation of other investments
--
--
324
Non-GAAP Shareholders' equity
12,394
26,709
16,612
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS U.S.
dollars in thousands
Three months ended March
31,
2020
2019
GAAP operating loss
(3,434
)
(3,576
)
Stock-based compensation in research and
development
76
124
Stock-based compensation in sales and
marketing
11
48
Stock-based compensation in general and
administrative
68
223
Non-GAAP operating loss
(3,279
)
(3,181
)
GAAP Financing income, net
131
351
Revaluation of other investments
-
-
Revaluation of derivative warrant
liability expenses (income)
-
1
Non-GAAP financing income, net
131
352
GAAP net loss
(4,049
)
(3,315
)
Stock-based compensation expenses
155
395
Revaluation of other investments
-
-
Revaluation of derivative warrant
liability expenses
-
1
Non-GAAP net loss
(3,894
)
(2,919
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200521005697/en/
Investor Relations Contact: Miri Segal-Scharia CEO MS-IR
LLC msegal@ms-ir.com 917-607-8654
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