(NewsDirect)
Foresight Autonomous Holdings Ltd., an innovator inautomotive vision systems (Nasdaq and TASE: FRSX) (“Foresight” orthe “Company”), today reported financial results for the firstquarter of 2023. Foresight ended the first quarter of 2023 with $21.7million in cash, cash equivalents, restricted cash, and short-termdeposits.
TheCompany reported a U.S. Generally Accepted Accounting Principles(GAAP) net loss of $4.6 million for the first quarter of 2023 and anon-GAAP net loss for the same period of $4.2 million.
“Foresight’sindustry-leading technology continued to gain momentum during thefirst quarter of 2023. We are particularly pleased by our achievementsin the Asia-Pacific (APAC) region, as we began an additional importantjoint proof of concept (POC) project with a leading Japanese globalvehicle manufacturer. Foresight Changzhou Automotive Ltd.(“Foresight Changzhou”), our fully owned subsidiary in JiangsuProvince, China, received special recognition from the China IsraelChangzhou Innovation Park, and Eye-Net Mobile Ltd. (“Eye-Net” or“Eye-Net Mobile”), our wholly owned subsidiary, received its firstorder for the Eye-Zone™ V2X automotive system from a leadingJapanese automotive manufacturer,” said Haim Siboni, CEO ofForesight.
“Thefirst quarter also saw a key breakthrough for Rail Vision Ltd.(“Rail Vision”), our affiliate, which received an order fromIsrael Railways for 10 Main Line Systems. We believe that theseachievements for Foresight, Eye-Net, and Rail Vision demonstrate theexceptional performance of our technology, as our POC projects are inthe process of converting into orders from leading organizations inthe automotive, defense, and transportation industries. As we continueto prove our ability to create tailored, high-performance solutionsfor a diverse customer base, we expect to see increased demand,”concluded Mr. Siboni.
First Quarter Corporate Highlights
? ForesightAnnounces POC Project with Global Japanese Vehicle Manufacturer: In March 2023, Foresight announced the signing of a paid joint POCproject with a leading global Japanese vehicle manufacturer. The POCproject will evaluate Foresight’s innovative solution for theautomatic calibration of mono cameras. Foresight and the manufacturerwill work together to develop a breakthrough solution capable ofdetecting when a single camera’s position has changed. The solutionwill also use Foresight’s proprietary software to provide real-timecorrection of a camera’s position while the vehicle is in motion. Ifsuccessful, the POC project may provide a solution that eliminates theneed for external calibration in a garage for all vehicles using monocameras.
? Eye-Net Receives Order from Leading Japanese Vehicle Manufacturerfor Eye-Zone System: In February 2023, Eye-Net announced that itreceived its first order for an Eye-Zone vehicle-to-everything (V2X)automotive system from a global Japanese vehicle manufacturer. The twoparties will begin a paid POC project to evaluate the capabilities andadded value of the Eye-Zone system as a software V2X communicationlayer. The POC will include the integration of Eye-Zone within themanufacturer’s advanced driver assistance system (ADAS), enablingseamless communication between vehicles and all road users.
? Rail VisionAnnounces $1.4 Million Agreement with Israel Railways to Sell 10AI-Driven Main Line Systems: Rail Vision announced in February2023 that it signed an agreement with Israel Railways for the purchaseof 10 Rail Vision Main Line Systems and related services. RailVision’s AI-driven obstacle detection system outperformed in allaspects of testing during a POC project with Israel Railways. Thetotal value of the agreement is expected to be $1.4 million.
? Israeli Ministryof Defense Recognizes Foresight Technology as SignificantBreakthrough: During the first quarter of 2023, the IsraeliMinistry of Defense recognized Foresight’s QuadSight® stereovisionsolution as a significant technological breakthrough for defenseapplications. The Administration for Research and Development ofWeapons and Technological Infrastructure of Israel’s Ministry ofDefense tested the QuadSight solution extensively for more than twoyears in challenging weather and environmental conditions.Foresight’s passive stereo technology was tested as an alternativeto replace active LiDAR sensors, and the solution exceeded all testingrequirements.
? Foresight Changzhou Wins Outstanding Enterprise Award: InFebruary 2023, Foresight announced that Foresight Changzhou won theOutstanding Enterprise in International Cooperation award from ChinaIsrael Changzhou Innovation Park. Foresight received this award inrecognition of its significant contribution to internationalcooperation in the region, and the company was one of five to win theaward, out of nearly 200 companies in the China Israel ChangzhouInnovation Park.
? Eye-Net Launches Virtual Sensor for Automotive Industryat CES 2023: Eye-Net showcased its new collision predictionsystem, Eye-Zone, at CES 2023 in Las Vegas. Eye-Zone uses Road UsersDetection and Ranging (RUDAR), a unique virtual sensor that provides apoint cloud of the real time location, movement characteristics, andprobability of collision with each road user around the vehicle.
? ForesightIntroduces Groundbreaking Mono2Stereo™ Solution at CES 2023: InJanuary, Foresight presented a live demonstration of its Mono2Stereosoftware-based solution at CES 2023. Mono2Stereo uses the overlappingviews of existing cameras with different fields of view to create athree-dimensional stereovision.
FirstQuarter 2023 Financial Results
- Revenues for the first quarter ended March 31, 2023,amounted to $55,000, compared to $35,000 in the first quarter of 2022.The revenues were generated primarily from the successful completionof a POC project with a global Japanese vehicle manufacturer, as wellas the completion of the first milestone of Eye-Net’s POC projectfor the Eye-Zone system from a leading Japanese vehiclemanufacturer.
- Research and development (R&D) expenses, netfor the first quarter of 2023, were $3,119,000, compared to $2,692,000in the first quarter of 2022. The increase is attributed mainly to anincrease in payroll and related expenses, primarily due to an increasein engineers within the R&D department. R&D expenses, net inthe first quarter of 2023, are offset by participation from theEuropean Horizon 2020 program in the amount of $133,000.
- Sales and Marketing (S&M) expenses for the first quarterof 2023 were $704,000, compared to $624,000 in the first quarter of2022. The increase is primarily attributed to an increase inexhibitions, conventions and travel expenses.
- General andadministrative (G&A) expenses for the first quarter of 2023 were$857,000, compared to $1,188,000 in the first quarter of 2022. Thedecrease is primarily attributed to a decrease in payroll and relatedexpenses and to a decrease in professional services and share-basedpayments to service providers.
- Finance income, net for thefirst quarter ended March 31, 2023, amounted to $60,000. Financeincome, net, is attributed primarily to gains from revaluation of theCompany’s investment in Rail Vision to its fair value in the amountof $122,000, as well as from interest on deposits in the amount of$210,000, offset by exchange rate differences and other expenses inthe amount of $272,000.
- GAAP net loss for the first quarterof 2023 was $4,586,000, or $0.014 per ordinary share, compared to aGAAP net loss of $2,024,000, or $0.006 per ordinary share, in thefirst quarter of 2022.
- Non-GAAP net loss for the firstquarter of 2023 was $4,241,000, or $0.013 per ordinary share, comparedto a non-GAAP net loss of $1,527,000 in the first quarter of 2022, or$0.004 per ordinary share. A reconciliation between GAAP net loss andnon-GAAP net loss is provided following the financial statements thatare part of this release. Non-GAAP results exclude the effect ofshare-based compensation expenses.
BalanceSheet Highlights
- Cash, cashequivalents, restricted cash, and short-term deposits totaled $21.7million as of March 31, 2023, compared to $26.5 million as of December31, 2022
- GAAP shareholder’s equity totaled $24.6 million asof March 31, 2023, compared to $28.8 million as of December 31, 2022.The decrease is attributed to the net loss for the period.
Use of Non-GAAP Financial Results
In addition todisclosing financial results calculated in accordance with UnitedStates generally accepted accounting principles (GAAP), theCompany's earnings release contains non-GAAP financial measures ofnet loss for the period that exclude the effect of stock-basedcompensation expenses. The Company’s management believes thenon-GAAP financial information provided in this release is useful toinvestors’ understanding and assessment of the Company's ongoingoperations. Management also uses both GAAP and non-GAAP information inevaluating and operating business internally and as such deemed itimportant to provide all this information to investors. The non-GAAPfinancial measures disclosed by the Company should not be consideredin isolation or as a substitute for, or superior to, financialmeasures calculated in accordance with GAAP, and the financial resultscalculated in accordance with GAAP and reconciliations to thosefinancial statements should be carefully evaluated. Reconciliationsbetween GAAP measures and non-GAAP measures are provided later in thispress release.
About Foresight
Foresight Autonomous Holdings Ltd. (Nasdaq andTASE: FRSX) is a technology company developing smart multi-spectralvision software solutions and cellular-based applications. Through theCompany’s wholly owned subsidiaries, Foresight Automotive Ltd.,Foresight Changzhou Automotive Ltd. and Eye-Net Mobile Ltd., Foresightdevelops both “in-line-of-sight” vision systems and“beyond-line-of-sight” accident-prevention solutions.
Foresight’s visionsolutions include modules of automatic calibration and densethree-dimensional (3D) point cloud that can be applied to differentmarkets such as automotive, defense, autonomous vehicles, and heavyindustrial equipment. Eye-Net Mobile’s cellular-based solution suiteprovides real-time pre-collision alerts to enhance road safety andsituational awareness for all road users in the urban mobilityenvironment by incorporating cutting-edge AI technology and advancedanalytics.
Formore information about Foresight and its wholly owned subsidiary,Foresight Automotive, visit www.foresightauto.com, follow onTwitter, or join on LinkedIn.
Forward-Looking Statements
This press release contains forward-lookingstatements within the meaning of the “safe harbor” provisions ofthe Private Securities Litigation Reform Act of 1995 and other Federalsecurities laws. Words such as “expects,” “anticipates,”“intends,” “plans,” “believes,” “seeks,”"estimates" and similar expressions or variations of suchwords are intended to identify forward-looking statements. Forexample, Foresight is using forward-looking statements in this pressrelease when it discusses its belief that its achievements, as well asthe achievements of Eye-Net Mobile and Rail Vision, demonstrate theexceptional performance of its technology and that it expects to seeincreased demand, the potential benefits from the use of itssolutions, and the expected timing, development and expected value ofPOC projects. Because such statements deal with future events and arebased on Foresight’s current expectations, they are subject tovarious risks and uncertainties and actual results, performance orachievements of Foresight could differ materially from those describedin or implied by the statements in this press release. Theforward-looking statements contained or implied in this press releaseare subject to other risks and uncertainties, including thosediscussed under the heading “Risk Factors” in Foresight’s annualreport on Form 20-F filed with the Securities and Exchange Commission(“SEC”) on March 30, 2023, and in any subsequent filings with theSEC. Except as otherwise required by law, Foresight undertakes noobligation to publicly release any revisions to these forward-lookingstatements to reflect events or circumstances after the date hereof orto reflect the occurrence of unanticipated events. References andlinks to websites have been provided as a convenience, and theinformation contained on such websites is not incorporated byreference into this press release.
Investor Relations Contact:
Miri Segal-Scharia
CEO
MS-IR LLC
msegal@ms-ir.com
917-607-8654
FORESIGHT AUTONOMOUS HOLDINGSLTD. | |||||||||
UNAUDITED INTERIM CONDENSEDCONSOLIDATED BALANCE SHEETS | |||||||||
U.S. dollars in thousands
| |||||||||
As of | Asof | As of | |||||||
March 31, 2023 | March 31, 2022 | December 31, 2022 | |||||||
Unaudited | Unaudited | Audited | |||||||
ASSETS | |||||||||
Currentassets: | |||||||||
Cash and cashequivalents | $ | 20,898 | $ | 26,722 | $ | 19,173 | |||
Restrictedcash | 99 | 112 | 102 | ||||||
Short term deposits | 657 | 13,578 | 7,216 | ||||||
Marketable equitysecurities | 2 | 8 | 2 | ||||||
Otherreceivables | 664 | 928 | 842 | ||||||
Total currentassets | 22,320 | 41,348 | 27,335 | ||||||
Non-currentassets: | |||||||||
ROUasset | 2,145 | 2,516 | 2,156 | ||||||
Investment inequity securities | 2,926 | 7,096 | 2,804 | ||||||
Fixed assets, net | 622 | 631 | 598 | ||||||
5,693 | 10,243 | 5,558 | |||||||
Totalassets | $ | 28,013 | $ | 51,591 | $ | 32,893 | |||
LIABILITIES ANDSHAREHOLDERS’ EQUITY | |||||||||
Currentliabilities: | |||||||||
Tradepayables | $ | 261 | $ | 281 | $ | 315 | |||
Operating leaseliability | 454 | 593 | 527 | ||||||
Otheraccounts payables | 1,258 | 1,611 | 1,792 | ||||||
Total currentliabilities | 1,973 | 2,485 | 2,634 | ||||||
Non-currentliabilities: | |||||||||
Operating leaseliability | 1,499 | 2,000 | 1,476 | ||||||
Totalliabilities | 3,472 | 4,485 | 4,110 | ||||||
Shareholders’equity: | |||||||||
Ordinary shares of NIS 0 par value; | - | - | - | ||||||
Additional paid-in capital | 130,097 | 128,634 | 129,810 | ||||||
Accumulated deficit | -106,066 | -81,827 | -101,480 | ||||||
Total ForesightAutonomous Holdings LTD. shareholders’ equity | 24,031 | 46,807 | 28,330 | ||||||
Non-controlling Interest | 510 | 299 | 453 | ||||||
Total equity | 24,541 | 47,106 | 28,783 | ||||||
Total liabilitiesand shareholders’ equity | $ | 28,013 | $ | 51,591 | $ | 32,893 |
FORESIGHT AUTONOMOUSHOLDINGS LTD. | ||
UNAUDITED INTERIM CONDENSEDCONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
| ||
U.S.dollars in thousands
| ||
Three months ended | ||
March 31,
| ||
2023 | 2022 | |
Unaudited | Unaudited | |
Revenues | 55 | 35 |
Cost of revenues | -21 | -27 |
Grossprofit | 34 | 8 |
Research and development expenses,net | -3,119 | -2,692 |
Sales andMarketing expenses | -704 | -624 |
General andadministrative expenses | -857 | -1,188 |
Operatingloss | -4,646 | -4,496 |
Financing income,net | 60 | 2,472 |
Net loss | -4,586 | -2,024 |
FORESIGHT AUTONOMOUSHOLDINGS LTD. | ||
UNAUDITED INTERIM CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOW
| ||
U.S. dollars inthousands | ||
Three monthsended | ||
March 31, | ||
2023 | 2022 | |
Unaudited | Unaudited | |
Net CashUsed in Operating Activities | ||
Loss for the Period | -4,586 | -2,024 |
Adjustments toreconcile loss to net cash used in operating activities: | 113 | -2,805 |
Net cash used in operatingactivities | -4,473 | -4,829 |
Cash Flowsfrom Investing Activities | ||
Changes in short term deposits | 6,559 | 3,934 |
Investment inequity securities | - | -287 |
Purchase of fixedassets | -84 | -179 |
Net cash provided by investingactivities | 6,475 | 3,468 |
Effect ofexchange rate changes on cash and cash equivalents | -280 | 7 |
Increase(decrease) in cash and cash equivalents and restrictedcash | 1,722 | -1,354 |
Cash and cash equivalents and restricted cash at thebeginning of the period | ||
19,275 | 28,188 | |
Cash and cash equivalents andrestricted cash at the end of the period | 20,997 | 26,834 |
FORESIGHT AUTONOMOUSHOLDINGS LTD. | ||
UNAUDITEDINTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOW | ||
U.S. dollars inthousands | ||
Adjustments to reconcileprofit (loss) to net cash used in operatingactivities: | Threemonths
| |
ended | ||
March31, | ||
2023 | 2022 | |
Unaudited | Unaudited | |
Share-based payment
| 345 | 497 |
Depreciation | 60 | 51 |
Revaluation of marketable equitysecurities | -122 | -2,793 |
Exchange rate changes on cash and cashequivalents | 280 | -7 |
Changes in assets andliabilities: | ||
Decrease (increase) in otherreceivables
| 178 | -268 |
Increase(decrease) in trade payables | -54 | 28 |
Change in operating leaseliability | -39 | -59 |
Decrease in other accountspayable | -535 | -254 |
Adjustments to reconcile loss to netcash used in operating activities | 113 | -2,805 |
SUPPLEMENTAL RECONCILIATIONOF GAAP TO NON-GAAP RESULTS | ||
(Unaudited) | ||
U.S. dollars inthousands | ||
Three monthsended | ||
March 31, | ||
2023 | 2022 | |
Unaudited | Unaudited | |
GAAP operatingloss | -4,646 | -4,496 |
Share-basedcompensation in Cost of revenues | 2 | -- |
Share-based compensation in researchand development | 227 | 215 |
Share-based compensation in sales andmarketing | 31 | 89 |
Share-based compensation in general andadministrative | 85 | 193 |
Non-GAAP operating loss | -4,301 | -3,999 |
GAAP netloss | -4,586 | -2,024 |
Share-basedcompensation expenses | 345 | 497 |
Non-GAAP netloss | -4,241 | -1,527 |
About Foresight
ForesightAutonomous Holdings Ltd. (Nasdaq and TASE: FRSX) is a technologycompany developing smart multi-spectral vision software solutions andcellular-based applications. Through the Company’s wholly ownedsubsidiaries, Foresight Automotive Ltd., Foresight ChangzhouAutomotive 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 solutionsinclude modules of automatic calibration and dense three-dimensional(3D) point cloud that can be applied to different markets such asautomotive, defense, autonomous vehicles and heavy industrialequipment. Eye-Net Mobile’s cellular-based solution suite providesreal-time pre-collision alerts to enhance road safety and situationalawareness for all road users in the urban mobility environment byincorporating cutting-edge AI technology and advancedanalytics.
For more information about Foresight and its whollyowned subsidiary, Foresight Automotive, visit www.foresightauto.com , follow onTwitter, or join on LinkedIn.
ContactDetails
Foresight Autonomous HoldingsLtd.
Miri Segal-Scharia, CEO, MS-IR LLC
+1917-607-8654
CompanyWebsite
https://www.foresightauto.com/
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