Foresight Autonomous Holdings Ltd., an innovator in automotive
vision systems (Nasdaq and TASE: FRSX), today reported financial
results for the second quarter of 2020. Foresight ended the second
quarter of 2020 with $17.4 million in cash and short-term
deposits.
The Company reported GAAP net loss of $3.3 million and non-GAAP
net loss of $3.1 million for the second quarter of 2020, compared
to GAAP net loss of $4 million and non-GAAP net loss of $3.9
million for the first quarter of 2020, reflecting a decrease of
$0.7 million and $0.8 million, respectively, resulting from the
reduction in monthly operating expenses made during the second
quarter.
“Foresight achieved outstanding business and technological
milestones during the second quarter, demonstrating our steady
progress in a number of key areas,” said Haim Siboni, Foresight’s
CEO. “Most notably, we announced our strategic collaboration with
FLIR Systems Inc. in April, through which we will combine FLIR’s
industry-leading thermal imaging cameras with our QuadSight® vision
system. This collaboration will allow us to expand our sales and
distribution efforts in new verticals and regions, as we leverage
FLIR’s exceptional technology and reputation to make new inroads in
the automotive industry. In addition, we have taken the next step
in our collaboration with our partner Elbit Systems Ltd. We will be
entering a product development phase that includes customization of
our unique vision system for potential end customers. This
significant milestone will allow us to expand our presence in the
defense market.
“Foresight also strengthened its balance sheet during the second
quarter through three capital raises, as we raised $14.4 million in
gross proceeds, to support expanded R&D and marketing efforts.
Our affiliates and subsidiaries, Rail Vision Ltd. and Eye-Net
Mobile Ltd., both made important strides during the quarter. Rail
Vision announced its first sale to a leading European train
operator, which could result in future sales of up to 6 million
Euro, while Eye-Net Mobile reported two important technological
advancements for its Eye-Net™ Protect accident prevention
solution.
“Our innovative technologies and expertise in thermal imaging,
computer vision and AI serve as the backbone for our COVID-19
screening solution, for which we submitted a patent application in
the United States. This solution is designed to detect up to six
key symptoms of COVID-19, and we believe that this technology could
play an important role in responding to the coronavirus pandemic.
In the upcoming weeks, as a result of an accelerated development
effort, Foresight will start a first pilot project for its
prototype COVID-19 symptom detection solution with one of Israel’s
largest health maintenance organizations.
“Foresight and its subsidiaries have continued all business
activities throughout the first half of 2020, with required
adaptations to marketing and business development, and with minimal
changes to research and development,” concluded Mr. Siboni.
Second Quarter 2020 Financial
Results
- Research and development (R&D) expenses for the three
months ended June 30, 2020 were $1,876,000, compared to $2,390,000
in the same quarter last year. The decrease is attributed mainly to
a decrease in subcontracted services.
- General and administrative (G&A) expenses for the three
months ended June 30, 2020 were $634,000, compared to $865,000 in
the same quarter last year. The decrease is attributed primarily to
a decrease in payroll and related expenses and a decrease in
professional services.
- GAAP net loss for the three months ended June 30, 2020 was
$3,331,000, or $0.02 per ordinary share, compared to a GAAP net
loss of $3,823,000, or $0.03 per ordinary share, in the same
quarter last year.
- Non-GAAP net loss for the three months ended June 30, 2020 was
$3,136,000, or $0.02 per ordinary share, compared to a non-GAAP net
loss of $3,016,000, or $0.02 per ordinary share, in the same
quarter last year. A reconciliation between GAAP net loss and
non-GAAP net loss is provided following the financial statements
that are part of this release.
Balance Sheet Highlights
- Cash and short-term deposits totaled $17.4 million as of June
30, 2020, compared to $10.1 million as of December 31, 2019.
- Investments in Rail Vision Ltd. totaled $5.4 million on June
30, 2020, compared to $6.7 million as of December 31, 2019. The
decrease is attributed primarily to equity in net loss of Rail
Vision.
- GAAP shareholders’ equity totaled $22.2 million as of June 30,
2020, compared to $16.3 million as of December 31, 2019. The
increase is attributed mainly to equity raises in the amount of
$14.4 million, gross, completed during the second quarter of 2020,
partially offset by the net loss for the six months ended June 30,
2020.
- Non-GAAP shareholders’ equity totaled $22.2 million as of June
30, 2020, compared to $16.6 million as of December 31, 2019. 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.
Second Quarter Corporate
Highlights:
- FLIR Systems and Foresight Sign Agreement to Develop, Market
and Distribute QuadSight Vision System: In April, Foresight
signed an agreement with FLIR Systems Inc., the world’s largest and
leading commercial company specializing in the design and
production of thermal imaging cameras, components, and imaging
sensors. According to the agreement, the companies will collaborate
to develop, market and distribute Foresight’s QuadSight vision
system combined with FLIR’s industry-leading infrared cameras.
Foresight will also participate in the “Thermal by FLIR” program,
which supports OEMs and product innovators who use FLIR thermal
imaging sensors in their products.
- Foresight Raises $14.4 Million in Gross Proceeds, in Three
Capital Raises: Foresight announced three registered direct
offerings during the second quarter of 2020. The first, announced
on April 28th, raised $3 million; the second, announced on May
19th, raised $5 million; and the third, announced on June 9th,
raised $6.4 million. The net proceeds of the three registered
direct offerings will be used for working capital and other general
corporate purposes.
- Foresight to Enable Mass Screening for Detection of COVID-19
Pandemic Symptoms Using Thermal Cameras and Artificial Intelligence
Expertise: Leveraging the Company’s extensive experience with
FLIR thermal cameras, artificial intelligence and advanced
algorithms, Foresight submitted a patent application in the United
States for fast and accurate detection of six COVID-19 symptoms.
The Company’s intellectual property, which combines both
visible-light and thermal cameras, is designed to be capable of
identifying cough, high body temperature, signs of fatigue and
additional symptoms. In the upcoming weeks, Foresight will start a
first pilot project for its prototype COVID-19 symptom detection
solution with one of Israel’s largest health maintenance
organizations.
- Foresight Joins Leading Global Industry Consortium for
Development of Autonomous Heavy-Duty Vehicles: In May,
Foresight announced that it joined the All Weather Autonomous Real
logistics operations and Demonstrations (AWARD) Consortium. The
AWARD Consortium, which also includes Continental, Terberg and
EasyMile, among others, applied to the European Commission to win
funding for a large-scale project aimed to disrupt the trucking and
logistics sectors. The total amount of the grant is expected to
total 20 million Euro, of which Foresight is expected to receive
approximately $1 million.
- Foresight Announces QuadSight Sale to Leading European Tier
One Supplier of Commercial Vehicles: A prototype of the
QuadSight four-camera vision system was purchased by a leading,
multi-billion-dollar European Tier One supplier of subsystems for
rail and commercial vehicles. The sale took place following
successful technological demonstrations in Germany. The global
self-driving truck market is expected to be valued at $1 billion in
2020.
- Eye-Net Mobile Announces Technological Developments to
Enhance Protection for Cyclists and Motorists in its Accident
Prevention Solution: In April, Foresight subsidiary Eye-Net
Mobile Ltd. announced the addition of two advanced features to its
Eye-Net Protect cellular-based vehicle-to-everything accident
prevention solution. The new advanced features include Bike Ahead
Notification, which alerts drivers to bicycles and motorcycles
which are up ahead, even those out of the driver’s direct line of
sight, and Automatic Emergency Call, which automatically sends the
phone’s exact location to a third party in the event of an
accident.
- Foresight Appoints Alain Charlois as Vice President of
Strategic Partnerships in North America and Europe: In June,
Foresight announced the appointment of Alain Charlois, an industry
veteran with experience commercializing disruptive technologies.
Mr. Charlois, who will serve as Vice President of Strategic
Partnerships in North America and Europe, will be responsible for
developing new business opportunities and identifying potential
partners in the autonomous driving and Advanced Driver Assistance
Systems (ADAS) markets on both continents.
- Rail Vision Receives First Order of 500,000 Euro from
Leading European Train Operator: The leading European train
operator purchased an Assisted Remote Shunting prototype system and
an Operational Functional Test (OFT). The OFT test of the system is
scheduled for the fourth quarter of 2020. Successful testing of the
Assisted Remote Shunting prototype system could entail the purchase
of an additional 75 systems for an additional 6 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 that exclude 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
exclude 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 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.
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
expansion of its sales and distribution in new verticals and
regions, collaboration with Elbit Systems, entering a product
development phase, its expansion in the defense market, the
potential of Foresight’s COVID-19 screening solution to play an
important role in responding to the coronavirus pandemic, starting
a pilot project for a prototype COVID-19 symptom detection
solution, the expected receipt of a grant from the AWARD
Consortium, the expected size of the self-driving truck market and
the possibility of purchases of additional Assisted Remote Shunting
systems. 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 June 30, 2020
As of June 30, 2019
As of December 31,
2019
ASSETS
Current assets:
Cash and cash equivalents
$
10,312
$
4,047
$
4,827
Short term deposits
7,129
12,280
5,233
Marketable equity securities
14
31
23
Other receivables
311
509
613
Total current assets
17,766
16,867
10,696
Non-current assets:
Right of use asset
1,172
1,417
1,278
Investment in affiliate company
5,385
7,584
6,729
Fixed assets, net
509
699
631
7,066
9,700
8,638
Total assets
$
24,832
$
26,567
$
19,334
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Trade payables
$
94
$
308
$
498
Operating lease liability
394
408
411
Other accounts payables
1,269
897
1,130
Total current liabilities
1,757
1,655
2,039
Non-current liabilities:
Operating lease liability
888
1,125
1,007
-
Total liabilities
2,645
2,780
3,046
Shareholders’ equity:
Ordinary shares of NIS 0 par value;
-
-
-
Additional paid-in capital
78,960
64,879
65,681
Accumulated deficit
(56,773
)
(41,092
)
(49,393
)
Total shareholders’ equity
22,187
23,787
16,288
Total liabilities and shareholders’
equity
$
24,832
$
26,567
$
19,334
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,
2020
2019
2020
2019
Research and development expenses, net
(4,217)
(4,460)
(1,876)
(2,390)
Marketing and sales
(666)
(1,097)
(233)
(499)
General and administrative expenses
(1,294)
(1,773)
(634)
(865)
Operating loss
(6,177)
(7,330)
(2,743)
(3,754)
Equity in net gain (loss) of an affiliated
company
(1,344)
16
(598)
106
Financing income (expenses), net
141
176
10
(175)
Net loss
(7,380)
(7,138)
(3,331)
(3,823)
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,
2020
2019
2020
2019
Net cash used in operating
activities
Net loss for the period
(7,380)
(7,138)
(3,331)
(3,823)
Adjustments to reconcile profit (loss) to
net cash used in operating activities:
1,603
1,432
803
630
Net cash used in operating
activities
(5,777)
(5,706)
(2,528)
(3,193)
Cash Flows from Investing
Activities
Changes in short term deposits
(1,896)
226
(2,892)
(1,957)
Proceed from other investments
-
21
-
21
Proceed from sales marketable
securities
68
-
68
-
Purchase of fixed assets
(9)
(39)
(3)
(8)
Net cash provided (used) by investing
activities
(1,837)
208
(2,827)
(1,944)
Cash flows from Financing
Activities:
Issuance of ordinary shares and warrants,
net of issuance expenses
13,082
6,521
13,082
290
Net cash provided by financing
activities
13,082
6,521
13,082
290
Effect of exchange rate changes on cash
and cash equivalents
17
(134)
1
(60)
Increase (decrease) in cash and cash
equivalents
5,485
889
7,728
(4,907)
Cash and cash equivalents at the
beginning of the period
4,827
3,158
2,584
8,954
Cash and cash equivalents at the end of
the period
10,312
4,047
10,312
4,047
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,
2020
2019
2020
2019
Share-based payment
350
836
195
441
Depreciation
131
127
65
65
Revaluation of derivative warrant
liability
-
43
-
42
Equity in loss (gain) of an affiliated
company
1,344
(16)
598
(106)
Revaluation of securities
(59)
(8)
(16)
(11)
Revaluation of other investments
-
324
-
324
exchange rate changes on cash and cash
equivalents
(17)
134
(1)
60
Changes in assets and liabilities:
Decrease (increase) in other
receivables
302
(38)
41
(62)
Decrease in Trade payables
(404)
(36)
(71)
(3)
Change in operating lease liability
(17)
75
31
25
Decrease in other accounts payable
(27)
(9)
(39)
(145)
Adjustments to reconcile loss to net
cash used in operating activities
1,603
1,432
803
630
FORESIGHT AUTONOMOUS
HOLDINGS LTD.
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDERS'
EQUITY
U.S. dollars in thousands
As of June 30, 2020
As of June 30, 2019
As of December 31,
2019
GAAP Shareholders' equity
22,187
23,787
16,288
Revaluation of other investments
--
324
324
Derivative warrant liability
--
42
--
Non-GAAP Shareholders' equity
22,187
24,153
16,612
SUPPLEMENTAL
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands
Six months ended June
30
Three months ended June
30,
2020
2019
2020
2019
GAAP operating loss
(6,177)
(7,330)
(2,743)
(3,754)
Stock-based compensation in research and
development
159
284
83
160
Stock-based compensation in sales and
marketing
32
98
20
50
Stock-based compensation in general and
administrative
159
454
92
231
Non-GAAP operating loss
(5,827)
(6,494)
(2,548)
(3,313)
GAAP Financing income (expenses),
net
141
176
10
(175)
Revaluation of other investments
--
324
--
324
Revaluation of derivative warrant
liability expenses
--
43
--
42
Non-GAAP Financing income, net
141
543
10
191
GAAP net loss
(7,380)
(7,138)
(3,331)
(3,823)
Stock-based compensation expenses
350
836
195
441
Revaluation of other investments
--
324
--
324
Revaluation of derivative warrant
liability
--
43
--
42
Non-GAAP net loss
(7,030)
(5,935)
(3,136)
(3,016)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200820005703/en/
Investor Relations Contact: Miri Segal-Scharia CEO MS-IR
LLC msegal@ms-ir.com 917-607-8654
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