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Foresight AutonomousHoldings Ltd., an innovator in automotive vision systems (Nasdaq andTASE: FRSX) (“Foresight”), today reported financial results forthe second quarter of 2022. Foresight ended the first half of 2022with revenues of $248,000 and with $35.6 million in cash, cashequivalent, restricted cash and short-term deposits.
The Company reported aU.S. generally accepted accounting principles (“GAAP”) net lossof $10.1 million and a non-GAAP net loss of $9.7 million for thesecond quarter of 2022, compared to a GAAP net loss of $3.2 millionand a non-GAAP net loss of $2.7 million for the second quarter of2021, reflecting an increase of 216% and 259%, respectively, resultingmainly from revaluation of the Company’s investment in Rail VisionLtd (Nasdaq: RVSN) ("Rail Vision") to its fair value, afterRail Vision's initial public offering in April 2022 .
“Foresight’sperformance in the second quarter of 2022 was focused on demonstratingthe broad viability of our stereoscopic vision technology forautonomous and semi-autonomous vehicle applications. We believe thatthe agreements we signed with leading Tier One suppliers, ZF NorthAmerica Inc. and Hitachi Astemo Americas Inc., as well as the progressmade with Elbit Systems Ltd. mark a significant milestone in our salescycle, as we move forward from proof of concept (POC) projects to aco-development stage, getting us closer to the design win stage inwhich we aim to win a contract for mass production,” said HaimSiboni, Foresight’s CEO.
"Our key business achievements revealsignificant interest across markets, industries and geographies.During the second quarter, Foresight signed agreements with multipleTier One suppliers for passenger vehicles, commercial vehicles,industrial technology, unmanned vehicles and vehicle-control systems.We believe that this diversity is a solid indication of the breadthand depth of Foresight’s total addressable market, and we expect tosee continued interest in the second half of 2022 from industriesincluding defense, transportation and agriculture.”
Second Quarter2022 Financial Results
- Revenues for the three months ended June 30, 2022 amountedto $213,000. We did not generate revenues in the three months endedJune 30, 2021. The revenues were generated from a successfulcompletion of several milestones in of the customization project withElbit Systems Ltd. (Nasdaq: ELBT) in the amount of $188,000, and froma completion of the first milestone of a POC project with a leadingtier one supplier in the amount of $25,000.
- Research anddevelopment (R&D) expenses, net for the three months ended June30, 2022 were $2,806,000, compared to $2,436,000 for the three monthsended June 30, 2021. The increase is attributed mainly to an increasein payroll and related expenses in the amount of $439,000. R&Dexpenses in the second quarter of 2022 were offset by participationfrom the European Horizon 2020 program in the amount of $89,000.
- Marketing and sales (S&M) expenses, net for the threemonths ended June 30, 2022 were $605,000, compared to $489,000 for thethree months ended June 30, 2021. The increase is attributed mainly toan increase in exhibitions, conventions and travel expenses in theamount of $85,000.
- General and administrative (G&A)expenses for the three months ended June 30, 2022 were $837,000,compared to $812,000 for the three months ended June 30, 2021.
- Finance expenses, net for the three months ended June 30,2022 were $5,991,000, compared to finance income, net of $574,000 forthe three months ended June 30, 2021. The decrease is mainlyattributed to expenses from the revaluation of the Company’sinvestment in Rail Vision to its fair value following its initialpublic offering on Nasdaq, in the amount of $5,588,000 and by exchangerate differences and other expenses in the amount of $403,000.
- GAAP net loss for the three months ended June 30, 2022 was$10,116,000, or $0.03 per ordinary share, compared to a GAAP net lossof $3,163,000, or $0.01 per ordinary share, for the three months endedJune 30, 2021.
- Non-GAAP net loss for the three months endedJune 30, 2022 was $9,663,000, or $0.03 per ordinary share, compared toa non-GAAP net loss of $2,661,000, or $0.01 per ordinary share, in thesame quarter last year. A reconciliation between GAAP net loss andnon-GAAP net loss is provided in the financial statements that arepart of this release.
Balance Sheet Highlights
- Cash,restricted cash and short-term deposits totaled $35.6 million as ofJune 30, 2022, compared to $45.7 million as of December 31, 2021.
- GAAP shareholders’ equity totaled $37.4 million as of June30, 2022, compared to $48.6 million as of December 31, 2021. Thedecrease is attributed mainly to the net loss for the period.
Second Quarter CorporateHighlights:
- Foresight Collaborates with ChineseTier One Supplier SUNWAY-AI on Product Development: In May,Foresight signed a memorandum of understanding (MOU) with SUNWAY-AITechnology Co., a global Chinese manufacturer of autonomous andunmanned intelligent vehicle products. According to the MOU, Foresightand SUNWAY-AI will establish a joint development program for anobstacle detection system for unmanned vehicles. The obstacledetection system will integrate Foresight’s stereoscopic technologyusing both thermal and visible light cameras. The MOU follows thesuccessful completion of a POC project in January of thisyear.
- Elbit Reveals Unmanned Robotic Combat VehicleIntegrated with Foresight Technology: At Eurosatory, the world’sleading land and airland defense and security exhibition, ElbitSystems, in collaboration with the Israeli Defense Forces, revealed aprototype of its new unmanned robotic combat vehicle equipped withForesight’s QuadSight vision system. Foresight’s stereo-camerasolution supports obstacle detection, terrain analysis and navigationplans in challenging conditions, including off-road driving andzero-visibility sandstorms. The Eurosatory exhibition drew more than100,000 visitors from around the world.
- ForesightAnnounces Joint Proof-of-Concept with Top Tier One Supplier ZF NorthAmerica : In June, Foresight announced the signing of a joint paidPOC project with ZF North America, a subsidiary of ZF FriedrichshafenAG (ZF). ZF is one of the world’s largest Tier One technologycompanies supplying systems for passenger cars, commercial vehiclesand industrial technology. The POC project follows Foresight’svictory in the ZF Pitch Event held at the 2022 CES exhibition inJanuary of this year.
- Foresight Signs Agreement withHitachi Astemo Americas: In late June, Foresight announced anagreement with Hitachi Astemo Americas, a global Japanese Tier Onesupplier of engine management, electric powertrain and integratedvehicle-control systems for the automotive industry. Per theagreement, Hitachi Astemo will conduct a paid joint POC project totest Foresight’s QuadSight and Mono2Stereo™ technologies togetherwith Hitachi Astemo’s existing camera systems for distancemeasurement and object detection in simulated and real-life autonomousdriving scenarios. The joint POC follows the successful evaluation ofa QuadSight vision system prototype in 2021.
- ForesightParticipates in Virtual Events: During the second quarter,Foresight hosted and participated in multiple virtual events, drawingdiverse investor attention to the company’s solutions for autonomousand semi-autonomous vehicles. In late March, Foresight presented andparticipated in a panel discussion at the Maxim Group Virtual GrowthConference. In May, Foresight hosted a virtual investor webinar onmarket trends and solutions for the autonomous and semi-autonomousera. Foresight also presented at the Sidoti Summer Small Cap VirtualConference in June.
Use ofNon-GAAP Financial Results
In addition to disclosing financial resultscalculated in accordance with United States generally acceptedaccounting principles (GAAP), the company's earnings releasecontains non-GAAP financial measures of net loss for the period thatexclude the effect of stock-based compensation expenses. Thecompany’s management believes the non-GAAP financial informationprovided in this release is useful to investors’ understanding andassessment of the company's ongoing operations. Management alsouses both GAAP and non-GAAP information in evaluating and operatingbusiness internally and as such deemed it important to provide allthis information to investors. The non-GAAP financial measuresdisclosed by the company should not be considered in isolation or as asubstitute for, or superior to, financial measures calculated inaccordance with GAAP, and the financial results calculated inaccordance with GAAP and reconciliations to those financial statementsshould be carefully evaluated. Reconciliations between GAAP measuresand non-GAAP measures are provided later in this press release.
Forward-LookingStatements
This press release contains forward-looking statements withinthe meaning of the “safe harbor” provisions of the PrivateSecurities Litigation Reform Act of 1995 and other Federal securitieslaws. Words such as “expects,” “anticipates,” “intends,”“plans,” “believes,” “seeks,” "estimates" andsimilar expressions or variations of such words are intended toidentify forward-looking statements. For example, Foresight is usingforward-looking statements in this press release when it discusses itsbelief that the agreements it has signed mark a significant milestonein its sales cycle, as it moves forward from POC projects to aco-development stage, with the aim of winning contracts for massproduction and its belief that the diversity of its customer’sindustries is an indication of the breadth and depth of its totaladdressable market, and that it expects to see continued interest inthe second half of 2022 from industries including defense,transportation and agriculture. Because such statements deal withfuture events and are based on Foresight’s current expectations,they are subject to various risks and uncertainties and actualresults, performance or achievements of Foresight could differmaterially from those described in or implied by the statements inthis press release. The forward-looking statements contained orimplied in this press release are subject to other risks anduncertainties, including those discussed under the heading “RiskFactors” in Foresight’s annual report on Form 20-F filed with theSecurities and Exchange Commission (“SEC”) on March 31, 2022, andin any subsequent filings with the SEC. Except as otherwise requiredby law, Foresight undertakes no obligation to publicly release anyrevisions to these forward-looking statements to reflect events orcircumstances after the date hereof or to reflect the occurrence ofunanticipated events. References and links to websites have beenprovided as a convenience, and the information contained on suchwebsites is not incorporated by reference into this press release.
FORESIGHTAUTONOMOUS HOLDINGS LTD. | |||
INTERIMCONDENSED CONSOLIDATED BALANCE SHEETS | |||
U.S. dollars in thousands | |||
As of June 30,2022 | As of June30, 2021 | As of December 31, 2021 | |
ASSETS | |||
Currentassets: | |||
Cash and cash equivalents | $ 25,024 | $ 23,750 | $ 28,073 |
Restricted cash | 102 | 133 | 115 |
Short term deposits | 10,506 | 28,462 | 17,513 |
Marketableequity securities | 5 | 11 | 12 |
Other current receivables | 573 | 524 | 660 |
Total current assets | 36,210 | 52,880 | 46,373 |
Non-currentassets: | |||
Operating lease right of use asset | 2,398 | 1,916 | 2,594 |
Investment in equitysecurities | - | 4,011 | 4,011 |
Marketable equity securities | 2,223 | - | |
Fixed assets, net | 646 | 408 | 503 |
5,267 | 6,335 | 7,108 | |
Total assets | $ 41,477 | $ 59,215 | $ 53,481 |
LIABILITIES AND SHAREHOLDERS’EQUITY | |||
Current liabilities: | |||
Tradepayables | $ 251 | $ 220 | $ 253 |
Operating lease liability | 617 | 416 | 587 |
Other accounts payables | 1,542 | 1,689 | 1,865 |
Total currentliabilities | 2,410 | 2,325 | 2,705 |
Non-currentliabilities: | |||
Operating lease liability | 1,625 | 1,547 | 2,143 |
Total liabilities | 4,035 | 3,872 | 4,848 |
Shareholders’ equity: | |||
Common stock ofno par value; | - | - | - |
Additional paid-in capital | 129,032 | 127,492 | 128,209 |
Accumulateddeficit | (91,944) | (72,293) | (79,804) |
TotalForesight Autonomous Holdings Ltd. shareholders’equity | 37,088 | 55,199 | 48,405 |
Non-controllinginterest | 354 | 144 | 228 |
Total equity | 37,442 | 55,343 | 48,633 |
Totalliabilities and shareholders’ equity | $ 41,477 | $ 59,215 | $ 53,481 |
FORESIGHTAUTONOMOUS HOLDINGS LTD. | ||||
INTERIMCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVELOSS | ||||
U.S.dollars in thousands | ||||
Six months ended June30, | Threemonths ended June 30, | |||
2022 | 2021 | 2022 | 2021 | |
Revenues | 248 | -- | 213 | -- |
Cost ofrevenues | (117) | -- | (90) | -- |
Gross Profit | 131 | -- | 123 | -- |
Research and development expenses,net | (5,498) | (5,095) | (2,806) | (2,436) |
Sales andmarketing | (1,229) | (985) | (605) | (489) |
General andadministrative | (2,025) | (2,018) | (837) | (812) |
Operatingloss | (8,621) | (8,098) | (4,125) | (3,737) |
Finance income(expenses), net | (3,519) | 573 | (5,991) | 574 |
Netloss | (12,140) | (7,525) | (10,116) | (3,163) |
FORESIGHT AUTONOMOUS HOLDINGSLTD. | ||||
INTERIM CONDENSED CONSOLIDATEDSTATEMENTS OF CASH FLOW | ||||
U.S. dollars inthousands | ||||
Six months ended June30, | Threemonths ended June 30, | |||
2022 | 2021 | 2022 | 2021 | |
Net cash used in operatingactivities | ||||
Loss for the Period | (12,140) | (7,525) | (10,116) | (3,163) |
Adjustments toreconcile loss to net cash used in operating activities: | 4,033 | 1,761 | 6,838 | -808 |
Net cash used in operatingactivities | (8,107) | (5,764) | (3,278) | (3,971) |
Cash Flowsfrom Investing Activities | ||||
Changes in short term deposits | 7,008 | (23,296) | 3,074 | (3,343) |
Investment inmarketable securities | (1,001) | - | (714) | - |
Purchase offixed assets | (249) | (61) | (70) | (42) |
Net cash provided by (used in)investing activities | 5,758 | (23,357) | 2,290 | (3,385) |
Cash flows from FinancingActivities: | ||||
Issuance of ordinary shares and warrants, net of issuanceexpenses | - | 13,508 | - | - |
Proceeds fromexercise of warrants | - | 595 | - | - |
Proceeds fromexercise of options | - | 57 | - | - |
Net cashprovided by financing activities | - | 14,160 | - | - |
Effect of exchange rate changes on cashand cash equivalents | (713) | 72 | (720) | (126) |
decrease in cash, cash equivalents andrestricted cash | (3,062) | (14,889) | (1,708) | (7,482) |
Cash, cash equivalents and restrictedcash at the beginning of the period | 28,188 | 38,772 | 26,834 | 31,365 |
Cash, cashequivalents and restricted cash at the end of theperiod | 25,126 | 23,883 | 25,126 | 23,883 |
FORESIGHTAUTONOMOUS HOLDINGS LTD. | ||||
INTERIMCONDENSED CONSOLIDATED STATEMENTS OF CASHFLOW | ||||
U.S.dollars in thousands | ||||
Adjustments to reconcile loss to netcash used in operating activities: | Six monthsended June 30, | Threemonths ended June 30, | ||
2022 | 2021 | 2022 | 2021 | |
Share-basedpayment | 949 | 1,663 | 453 | 502 |
Depreciation | 106 | 80 | 55 | 36 |
Revaluation of securities | 2,796 | 31 | 5,589 | 4 |
exchange rate changes on cash and cashequivalents | 713 | (72) | 720 | 126 |
Changes in assets andliabilities: | ||||
Decrease (increase) in other receivables | 88 | (123) | 355 | (52) |
Increase (decrease) in tradepayables | (2) | (171) | (30) | 53 |
Changes in operating leaseliability | (292) | (122) | (233) | 43 |
Increase (decrease) in other accountspayable | (325) | 475 | (71) | (1,520) |
Adjustments to reconcile loss to netcash used in operating activities | 4,033 | 1,761 | 6,838 | (808) |
FORESIGHTAUTONOMOUS HOLDINGS LTD. | ||||
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAPRESULTS | ||||
U.S.dollars in thousands | ||||
Six monthsended June 30 | Threemonths ended June 30, | |||
2022 | 2021 | 2022 | 2021 | |
GAAP operating loss | (8,621.00) | (8,098.00) | (4,125.00) | (3,737.00) |
Stock-basedcompensation in cost of revenues | 8.00 | - | 8.00 | - |
Stock-basedcompensation in research and development | 461.00 | 675.00 | 247.00 | 195.00 |
Stock-basedcompensation in sales and marketing | 129.00 | 230.00 | 40.00 | 78.00 |
Stock-basedcompensation in general and administrative | 351.00 | 758.00 | 158.00 | 229.00 |
Non-GAAPoperating loss | (7,672.00) | (6,435.00) | (3,672.00) | (3,235.00) |
GAAP net loss | (12,140.00) | (7,525.00) | (10,116.00) | (3,163.00) |
Stock-basedcompensation expenses | 949.00 | 1,663.00 | 453.00 | 502.00 |
Non-GAAP netloss | (11,191.00) | (5,862.00) | (9,663.00) | (2,661.00) |
AboutForesight
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 vision solutions include modules of automaticcalibration and dense three-dimensional (3D) point cloud that can beapplied to different markets such as automotive, defense, autonomousvehicles and heavy industrial equipment. Eye-Net Mobile’scellular-based solution suite provides real-time pre-collision alertsto enhance road safety and situational awareness for all road users inthe urban mobility environment by incorporating cutting-edge AItechnology and advanced analytics.
For more information aboutForesight and its wholly owned subsidiary, Foresight Automotive, visit www.foresightauto.com ,follow onTwitter, or join on LinkedIn.
ContactDetails
Investor Relations Contact:
MiriSegal-Scharia, CEO, MS-IR LLC
+1 917-607-8654
CompanyWebsite
https://www.foresightauto.com/
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