Foresight Announces Second Quarter 2021 Financial Results
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NEWS RELEASE BY Foresight Autonomous Holdings Ltd.
Ness Ziona, Israel | August 20, 2021 04:05 PM, Eastern
Foresight Autonomous Holdings Ltd., an innovator in automotive vision systems (Nasdaq and TASE: FRSX), today reported financial results for the second quarter of 2021. Foresight ended the second quarter of 2021 with $52.3 million in cash, cash equivalent and short-term deposits.
The Company reported U.S. generally accepted accounting principles (GAAP) net loss of $3.2 million and non-GAAP net loss of $2.7 million for the second quarter of 2021, compared to GAAP net loss of $4.4 million and non-GAAP net loss of $3.2 million for the first quarter of 2021, reflecting a decrease of $1.2 million and $0.5 million, respectively, resulting primarily from financial income accrued during the second quarter of 2021.
“Foresight continues to achieve remarkable progress as it expands into new markets and geographic areas,” said Haim Siboni, Foresight’s Chief Executive Officer. “We believe that our prototype sale to a leading agriculture and construction machinery manufacturer demonstrates the potential of our QuadSight® vision system in the agricultural equipment market, while our coming proof of concept with the American subsidiary of a leading European passenger car manufacturer shows the continued appeal of our technology to the automotive industry.” “The second quarter also saw important milestones for our wholly-owned subsidiary, Eye-Net Mobile, as well as our affiliate, Rail Vision Ltd. (“Rail Vision”). Eye-Net Mobile pilot projects expansion in Japan and Europe, and the announcements that Rail Vision has filed a draft prospectus for an initial public offering on the Tel Aviv Stock Exchange, reflect the ambitious goals and long-term growth anticipated by both companies.”
Second Quarter 2021 Financial Results
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- Researchanddevelopment(RD)expenses,netforthethreemonthsendedJune30,2021were $2,436,000, compared to $1,876,000 in the three months ended June 30, 2020. Theincreaseisattributedmainlytoanincreaseinpayrollandrelatedexpensesandanincreaseinsubcontractedservices.
- Generalandadministrative(GA)expensesforthethreemonthsendedJune30,2021were $812,000,comparedto$634,000inthethreemonthsendedJune30,Theincreaseisattributedprimarilytoanincreaseinshare-basedcompensationexpensestoemployeesandserviceproviders.
- GAAPnetlossforthethreemonthsendedJune30,2021was$3,163,000,or$0.01per ordinaryshare,comparedtoGAAPnetlossof$3,331,000,or$0.02perordinaryshare,inthe threemonthsendedJune30, 2020.Thedecrease inthe netlossisattributed mainlytothe increaseinfinancingincome,net,offsetmainlybyanincreaseinpayrollandrelatedexpenses.
- Non-GAAPnetlossforthethreemonthsendedJune30,2021was$2,661,000,or$0.01per ordinary share, compared to a non-GAAP net loss of $3,136,000, or $0.02 per ordinaryshare,inthesamequarterlastyear.reconciliationbetweenGAAPnetlossandnon-GAAPnetlossisprovidedinthefinancialstatementsthatarepartofthisrelease.
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- Cash and cash equivalents and short-term deposits totaled $52.3 million as of June 30, 2021,comparedto$43.9millionasofDecember31,
- GAAP shareholders’ equity totaled $55.3 million as of June 30, 2021, compared to $47million asof December31, 2020.Theincrease isattributed to the receiptof proceedsfromthe securities offerings completed during the first quarter of 2021 and option exercises,offsetbythenetlossforthesameperiod.
Second Quarter Corporate Highlights:
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- ForesightChosenforJointPOCProjectbyLeadingEuropeanAutoManufacturer:ForesightwaschosenbytheAmericansubsidiaryofleadingEuropeanpassengercarmanufacturer to provide a proof-of-concept (POC) to test Foresight’s stereoscopictechnology.Followingsuccessfulcompletionoftheproject,theEuropeanpassengercarmanufacturer may consider integrating Foresight’s solutions into its vehicle safetyapplications.
- ForesightReceivesPrototypeOrderofQuadSightVisionSystemfromLeading Agricultural Equipment Manufacturer: In June, Foresight announced the sale of aprototypeofitsQuadSightfour-cameravisionsystemtoleadingglobalmanufacturerofagriculturalandconstructionequipment.ThemanufacturerwillevaluatetheQuadSightsystemforuseinagriculturalmachinery,markingtheCompany’sfirstsaletotheagriculturalequipmentmarket.Foresight’sadvancedthermalstereoscopiccapabilitiesaredesignedtoofferaddedvaluetoprecisionagricultureandautomatednavigation.
- Rail Vision Files Draft Prospectus for Initial Public Offering: In May, Rail Vision, anaffiliate of Foresight, filed a public draft prospectus for an initial public offering andregistration for trade of its securities on the Tel Aviv Stock Exchange. Rail Vision intends tosimultaneously testtheprevailing conditions onthe Israeli capitalmarketstowardspotential public offering. The filing of a final prospectus is subject to a permit from theIsraeliSecuritiesAuthorityandtheapprovaloftheTelAvivStockExchange.- Eye-NetMobiletoPursuePotentialNasdaqListing:Foresight’swhollyownedsubsidiary, Eye-NetMobileLtd.“Eye-NetMobile”),announcedinMaythatitintendstopursuepotentiallistingontheNasdaqStockMarket.ThestrategicdecisionwasmadefollowingresolutionoftheboardofdirectorsofbothForesightandEye-NetMobile.
- Eye-NetPartnerswithWebSIAforExclusiveDistributioninBrazilInApril,Foresight announced that its wholly owned subsidiary, Eye-Net Mobile, signed a distributionagreement with WebSIA Soluções Disruptivas, Inteligências Associadas, Tecnologia eServiçosLtda.“WebSIA”),a Braziliandistributor,developer andintegrator focusedoncutting-edgetechnologies.WebSIAwillexclusivelypromotetheEye-NetProtectaccidentonilt denselypopulatedandtechnologicallyadvancedregion.
- RailVisionSignsAgreementtoSupplyPrototypetoRioTintoRailwayNetwork:InMay, Foresight’saffiliateRailVisionannouncedanagreementtosupplyequipment,servicesandpersonnel to the Australian rail company Rio Tinto Railway Network. According to theagreement, Hitachi Rail STS,the project integrator, will supply RioTinto with a prototype ofRailVision’sCollision Avoidance System to conductdemonstration and feasibility testing forproof-of-conceptproject.SuccessfuldemonstrationsmayleadtoRailVisionoutfittingRioTinto’sentirefleetofapproximately220vehicleswithitssystems.
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-GAAPfinancial measures of net loss for the period that exclude the effect of stock-based compensation expenses. 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.
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.
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 the potential of the Company’s QuadSight® vision system in the agricultural equipment market and the continued appeal of Foresight’s technology to the automotive industry, long-term growth anticipated by both Rail Vision and Eye-Net Mobile, that following the successful completion of the POC project, the European passenger car manufacturer may consider integrating Foresight’s solutions into its vehicle safety applications, that Rail Vision intends to test the prevailing conditions on the Israeli capital markets towards a potential public offering, that Eye-Net Mobile intends to pursue a potential listing on the Nasdaq Stock Market, that WebSIA will exclusively promote the Eye-Net Protect accident prevention solution and serve as Eye-Net’s distributor in the city of Sao Paulo, and that successful demonstrations of Rail Vision’s Collision Avoidance System may lead to Rail Vision outfitting Rio Tinto’s entire fleet. 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 30, 2021, 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.
Investor Relations Contact:
Miri Segal-Scharia CEO
MS-IR LLC
917-607-8654
FORESIGHT AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
|
As of |
As of |
As of |
|||
|
June 30 |
June 30 |
December 31 |
|||
|
2021 |
2020 |
2020 |
|||
|
ASSETS |
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
$ 23,750 |
$ 10,312 |
$ 38,772 |
||
|
Restricted cash |
133 |
- |
- |
||
|
Short term deposits |
28,462 |
7,129 |
5,166 |
||
|
Marketable equity securities |
11 |
14 |
42 |
||
|
Other receivables |
524 |
311 |
401 |
||
|
Total current assets |
52,880 |
17,766 |
44,381 |
||
|
Non-current assets: |
|||||
|
ROU asset |
1,916 |
1,172 |
1,104 |
||
|
Investment in affiliate company |
- |
5,385 |
- |
||
|
Investment in equity securities |
4,011 |
- |
4,011 |
||
|
Fixed assets, net |
408 |
509 |
427 |
||
|
6,335 |
7,066 |
5,542 |
|||
|
Total assets |
$ 59,215 |
$ 24,832 |
$ 49,923 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||
|
Current liabilities: |
|||||
|
Trade payables |
$ 220 |
$ 94 |
$ 391 |
||
|
Operating lease liability |
416 |
394 |
427 |
||
|
Other accounts payables |
1,689 |
1,269 |
1,207 |
||
|
Total current liabilities |
2,325 |
1,757 |
2,025 |
||
|
Non-current liabilities: |
|||||
|
Operating lease liability |
1,547 |
888 |
853 |
||
|
Total liabilities |
3,872 |
2,645 |
2,878 |
||
|
Shareholders’ equity: |
|||||
|
Common stock of no par value; |
- |
- |
- |
||
|
Additional paid-in capital |
127,492 |
78,960 |
111,739 |
||
|
Accumulated deficit |
(72,293) |
(56,773) |
(64,768) |
||
|
Total Foresight Autonomous Holdings Ltd. shareholders’ equity |
55,199 |
22,187 |
46,971 |
||
|
Non-controlling interest |
144 |
- |
74 |
||
|
Total equity |
55,343 |
22,187 |
47,045 |
||
|
Total liabilities and shareholders’ equity |
$ 59,215 |
$ 24,832 |
$ 49,923 |
FORESIGHT AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands
|
Six months ended |
Three months ended |
|||||||
|
June 30, |
June 30, |
|||||||
|
2021 |
2020 |
2021 |
2020 |
|||||
|
Research and development expenses, net |
(5,095) |
(4,217) |
(2,436) |
(1,876) |
||||
|
Marketing and sales |
(985) |
(666) |
(489) |
(233) |
||||
|
General and administrative expenses |
(2,018) |
(1,294) |
(812) |
(634) |
||||
|
Operating loss |
(8,098) |
(6,177) |
(3,737) |
(2,743) |
||||
|
Equity in net loss of an affiliated company |
(1,344) |
(598) |
||||||
|
Financing income, net |
573 |
141 |
574 |
10 |
||||
|
Net loss |
(7,525) |
(7,380) |
(3,163) |
(3,331) |
||||
FORESIGHT AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
|
Six months ended |
Three months ended |
|||
|
June 30, |
June 30, |
|
2021 |
2020 |
2021 |
2020 |
|||||
|
Net cash used in operating activities |
||||||||
|
Loss for the Period |
(7,525) |
(7,380) |
(3,163) |
(3,331) |
||||
|
Adjustments to reconcile loss to net cash used in operating activities: |
1,761 |
1,603 |
(808) |
803 |
||||
|
Net cash used in operating activities |
(5,764) |
(5,777) |
(3,971) |
(2,528) |
||||
|
Cash Flows from Investing Activities |
||||||||
|
Changes in short term deposits |
(23,296) |
(1,896) |
(3,343) |
(2,892) |
||||
|
Proceed from sales marketable securities |
- |
68 |
- |
68 |
||||
|
Purchase of fixed assets |
(61) |
(9) |
(42) |
(3) |
||||
|
Net cash used by investing activities |
(23,357) |
(1,837) |
(3,385) |
(2,827) |
||||
|
Cash flows from Financing Activities: |
||||||||
|
Issuance of ordinary shares and warrants, net of issuance expenses |
13,508 |
13,082 |
- |
13,082 |
||||
|
Proceeds from exercise of warrants |
595 |
- |
- |
- |
||||
|
Proceeds from exercise of options |
57 |
- |
- |
|||||
|
Net cash provided by financing activities |
14,160 |
13,082 |
_ |
13,082 |
||||
|
Effect of exchange rate changes on cash and cash equivalents |
72 |
17 |
(126) |
1 |
||||
|
Increase (decrease) in cash and cash equivalents |
(14,889) |
5,485 |
(7,482) |
7,728 |
||||
|
Cash and cash equivalents at the beginning of the period |
38,772 |
4,827 |
31,365 |
2,584 |
||||
|
Cash and cash equivalents and Restricted cash at the end of the period |
23,883 |
10,312 |
23,883 |
10,312 |
FORESIGHT AUTONOMOUS HOLDINGS LTD.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
|
Six months ended |
Three months ended |
|||||||
|
Adjustments to reconcile loss to net cash used in operating activities: |
June 30, |
June 30 |
||||||
|
2021 |
2020 |
2021 |
2020 |
|||||
|
Share-based payment |
1,663 |
350 |
502 |
195 |
||||
|
Depreciation |
80 |
131 |
36 |
65 |
||||
|
Equity in loss of an affiliated company |
- |
1,344 |
598 |
|||||
|
Revaluation of securities |
31 |
(59) |
4 |
(16) |
||||
|
exchange rate changes on cash and cash equivalents |
(72) |
(17) |
126 |
(1) |
||||
|
Changes in assets and liabilities: |
||||||||
|
Decrease (increase) in other receivables |
(123) |
302 |
(52) |
41 |
||||
|
Increase (decrease) in trade payables |
(171) |
(404) |
53 |
(71) |
||||
|
Change in operating lease liability |
(122) |
(17) |
43 |
31 |
||||
|
Increase (decrease) in other accounts payable |
475 |
(27) |
(1,520) |
(39) |
||||
|
Adjustments to reconcile loss to net cash used in operating activities |
1,761 |
1,603 |
(808) |
803 |
||||
|
Non-Cash activities |
Six months ended |
Three months ended |
||||||
|
June 30, |
June 30, |
|||||||
|
2021 |
2020 |
2021 |
2020 |
|||||
|
Accrued Issuance expenses |
153 |
153 |
||||||
|
Supplemental cash flow information related to operating leases was as follows: |
||||||||
|
Cash payments for operating leases |
219 |
221 |
111 |
110 |
||||
|
New operating lease assets obtained in exchange for operating lease liabilities |
972 |
64 |
33 |
|||||
FORESIGHT AUTONOMOUS HOLDINGS LTD.
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands
|
Six months ended |
Three months ended |
|||||||
|
June 30, |
June 30, |
|||||||
|
2021 |
2020 |
2021 |
2020 |
|||||
|
GAAP operating loss |
(8,098) |
(6,177) |
(3,737) |
(2,743) |
||||
|
Stock-based compensation in research and development |
675 |
159 |
195 |
83 |
||||
|
Stock-based compensation in sales and marketing |
230 |
32 |
78 |
20 |
||||
|
Stock-based compensation in general and administrative |
758 |
159 |
229 |
92 |
||||
|
Non-GAAP operating loss |
(6,435) |
(5,827) |
(3,235) |
(2,548) |
||||
|
GAAP net loss |
(7,525) |
(7,380) |
(3,163) |
(3,331) |
||||
|
Stock-based compensation expenses |
1,663 |
350 |
502 |
195 |
||||
|
Non-GAAP net loss |
(5,862) |
(7,030) |
(2,661) |
(3,136) |
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Investor Relations Contact
Miri Segal-Scharia, CEO, MS-IR LLC
+1 917-607-8654
msegal@ms-ir.com
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