[August 17, 2018] |
|
Foresight Announces Second Quarter 2018 Financial Results
Foresight Autonomous Holdings Ltd., an innovator in automotive vision
systems (Nasdaq and TASE: FRSX), today reported financial results for
the second quarter of 2018. Foresight ended the second quarter of 2018
with $19.6 million in cash and short-term deposits, GAAP net loss of
$1.49 million for the six months ended June 30, 2018, and non-GAAP net
loss for the same period of $7.2 million.
"During the second quarter, we announced the first sales of our
QuadSight™ prototype. The prototypes were ordered by a truck division of
a large European vehicle manufacturer and by a leading global Chinese
electric vehicle manufacturer, as both companies indicated their
interest in the significant advances in obstacle detection offered by
the QuadSight™ system," commented Haim Siboni, CEO of Foresight. "These
prototype sales will enable us to collect customer feedback and modify
the system to better meet customer needs in the future. We are confident
that these sales, along with the progress in commercializing our
Eyes-On™ system, offer a clear path to increased revenues and an
enhanced product offering in the future."
"Foresight also completed multiple successful capital raises during the
second quarter, demonstrating the support of leading Israeli
institutional investors in our company's long-term potential. These
capital raises strengthened our balance sheet and placed us in a strong
position for future growth. We expect that our existing cash and cash
equivalents will be sufficient to fund our current operations until the
first quarter of 2020," concluded Mr. Siboni.
Second Quarter 2018 Financial Results
-
Research and development (R&D) expenses for the three months ended
June 30, 2018 were $2,187,000 compared to $778,000 in the three months
ended June 30, 2017. The increase is attributed mainly to accelerated
employee recruitment and is comprised primarily of payroll and related
expenses, stock-based compensation expenses and subcontracted services
expenses.
-
General and administrative (G&A) expenses for the three months ended
June 30, 2018 were $887,000 compared to $1,666,000 in the three months
ended June 30, 2017. The decrease is attributed primarily to a
decrease in stock-based compensation expenses. Also, during the three
months ended June 30, 2017 Foresight incurred additional expenses
related to professional services regarding the company's listing on
Nasdaq.
-
GAAP net loss for the three months ended June 30, 2018 was $4,083,000,
or $(0.04) per ordinary share, compared to a GAAP net loss of
$21,447,000, or $(0.33) per ordinary share, in the three months ended
June 30, 2017. The decrease is attributed mainly to the revaluation of
derivative warrant liability.
-
Non-GAAP net loss for the three months ended June 30, 2018 was
$3,637,000 or $(0.03) per ordinary share, compared to a non-GAAP net
loss of $1,125,000, or $(0.01) per ordinary share, in the three months
ended June 30, 2017. 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 and derivative warrant liability.
Balance Sheet Highlights
-
Cash and short-term deposits totaled $19.6 million as of June 30,
2018, compared to $18.3 million on June 30, 2017.
-
Investments in Rail Vision Ltd. totaled $12.2 million (including
investment in an affiliate company totaling $3.8 million and other
investments totaling $8.4 million) as of June 30, 2018 compared to
$0.9 million on June 30, 2017. The increase is attributed primarily to
warrants exercise and to revaluation of outstanding warrants (which
are presented in current assets) of $8.4 million.
-
GAAP shareholders' equity totaled $30.5 million as of June 30, 2018,
compared to $24.8 million as of December 31, 2017. The increase is
attributed mainly to the capital raise completed by the company during
the period.
-
Non-GAAP shareholders' equity totaled $25.7 million as of June 30,
2018, compared to $22.9 million as of December 31, 2017.
|
|
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|
|
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|
|
|
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As of June 30,
|
|
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As of
December 31,
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(thousands of U.S. dollars)
|
|
|
2018
|
|
2017
|
|
|
2017
|
|
GAAP Results
|
|
|
|
|
|
|
|
|
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Shareholders' equity
|
|
|
$ 30,477
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|
$ 2,619
|
|
|
$ 24,817
|
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Non-GAAP Results
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|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
$ 25,668
|
|
$ 18,926
|
|
|
$ 22,921
|
|
|
|
|
|
|
|
|
|
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A reconciliation between GAAP shareholders' equity results and non-GAAP
shareholders' equity results is provided in the financial statements
that are part of this release. Non-GAAP results exclude revaluation of
other investments and derivative warrant liability.
Recent Corporate Highlights:
-
Announced First Sales of QuadSight™ Prototype: Foresight
announced sales of its QuadSight™ vision system to a truck division of
a large European vehicle manufacturer and a leading global Chinese
electric vehicle manufacturer. The breakthrough vision system for
semi-autonomous and autonomous vehicles offers near-100% obstacle
detection with near-zero false alerts in all weather and lighting
conditions. Revenue from each QuadSight™ prototype system sale is
expected to total tens of thousands of dollars.
-
Completed Successful Capital Raises at a Total Amount of $12.4
Million from Leading Israeli Institutional Investors Through Private
Placements: Foresight announced that it closed several private
placement agreements with multiple leading Israeli institutional
investors. During the second quarter Foresight raised $5.5 million
from Harel Insurance, resulting in Harel Insurance holding an
aggregate of approximately 8.15% of Foresight's issued shares. During
the third quarter Foresight completed an additional raise of $6.9
million from multiple institutional investors, including Meitav Dash
Group and Psagot Investment House, as well as from other
non-institutional investors. Meitav Dash Group invested approximately
$4.1 million, while Psagot Investment House invested approximately
$1.4 million.
-
Signed Memorandum of Understanding for First Potential Sales of
Eyes-On™ System: Foresight signed a non-binding memorandum
of understanding with a direct importer of several leading vehicle
manufacturers to Israel. Once a binding agreement is signed, Foresight
and the importer will carry out a pilot program in which a beta
version of the Eyes-On™ system will be integrated into multiple models
from the importer's fleet. According to preliminary estimates by the
importer, the importer's purchasing potential is approximately 21,000
systems over a three-year period from the signing of a binding
agreement.
-
Increased Stake in Rail Vision to Become Largest Shareholder:
By exercising $2.24 million of warrants, to take effect in the third
quarter, Foresight increased its ownership stake in Rail Vision Ltd.
to approximately 35% of issued and outstanding shares and 34% on a
fully-diluted basis. Foresight is now the largest shareholder of Rail
Vision Ltd.
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 excludes 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 excludes 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 stereo/quad-camera vision systems and V2X cellular
based solutions for the automotive industry. Foresight's vision systems
are based on 3D video analysis, advanced algorithms for image processing
and sensor fusion. The company, through its wholly owned subsidiary
Foresight Automotive Ltd., develops advanced systems for accident
prevention, which are designed to provide real-time information about
the vehicle's surroundings while in motion. The systems are designed to
improve driving safety by enabling highly accurate and reliable threat
detection while ensuring the lowest rates of false alerts. The company's
systems are targeting the Advanced Driver Assistance Systems (ADAS),
semi-autonomous and autonomous vehicle markets. The company predicts
that its systems will revolutionize automotive safety by providing an
automotive grade, cost-effective platform, and advanced technology.
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 that prototype sales, along with progress in
commercialization of its Eyes-On™ system, offers a clear path to
increased revenues and an enhanced product offering in the future, when
it discusses its strong position for future growth, the amount of
revenue from sales of its QuadSight™ system, that Foresight and an
importer will carry out a pilot program in which a beta version of the
Eyes-On™ system will be integrated into multiple models from the
importer's fleet, and the importer's purchasing potential. 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 27, 2018, 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, 2018
|
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|
|
As of June 30, 2017
|
|
|
As of December 31, 2017
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
8,483
|
|
|
$
|
14,282
|
|
|
$
|
9,636
|
Short Term Deposits
|
|
|
|
11,162
|
|
|
|
4,019
|
|
|
|
12,169
|
Marketable equity securities
|
|
|
|
44
|
|
|
|
24
|
|
|
|
22
|
Other Investments
|
|
|
|
8,417
|
|
|
|
-
|
|
|
|
2,361
|
Other receivables
|
|
|
|
340
|
|
|
|
280
|
|
|
|
482
|
Total current assets
|
|
|
|
28,446
|
|
|
|
18,605
|
|
|
|
24,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in affiliate company
|
|
|
|
3,761
|
|
|
|
865
|
|
|
|
1,404
|
Other investments
|
|
|
|
-
|
|
|
|
66
|
|
|
|
1,672
|
Fixed assets, net
|
|
|
|
629
|
|
|
|
132
|
|
|
|
289
|
|
|
|
|
4,390
|
|
|
|
1,063
|
|
|
|
3,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
32,836
|
|
|
|
19,668
|
|
|
$
|
28,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
$
|
306
|
|
|
|
104
|
|
|
$
|
330
|
Other accounts payables
|
|
|
|
1,534
|
|
|
|
638
|
|
|
|
817
|
Derivative warrant liability
|
|
|
|
238
|
|
|
|
-
|
|
|
|
-
|
Total current liabilities
|
|
|
|
2,078
|
|
|
|
742
|
|
|
|
1,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative warrant liability
|
|
|
|
281
|
|
|
|
16,307
|
|
|
|
2,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
2,359
|
|
|
|
17,049
|
|
|
|
3,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares of NIS 0 par value;
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Additional paid-in capital
|
|
|
|
50,409
|
|
|
|
32,876
|
|
|
|
44,114
|
Receipts on account of shares
|
|
|
|
850
|
|
|
|
-
|
|
|
|
-
|
Accumulated deficit
|
|
|
|
(20,782)
|
|
|
|
(30,257)
|
|
|
|
(19,297)
|
Total stockholders' equity
|
|
|
|
30,477
|
|
|
|
2,619
|
|
|
|
24,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
32,836
|
|
|
|
19,668
|
|
|
$
|
28,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL RECONCILIATION OF GAAP TO
NON-GAAP SHAREHOLDERS' EQUITY
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2018
|
|
|
As of June 30, 2017
|
|
|
As of December 31, 2017
|
GAAP Shareholders' equity
|
|
|
30,477
|
|
|
2,619
|
|
|
24,817
|
Revaluation of other investments
|
|
|
(5,328
|
)
|
|
-
|
|
|
(3,967)
|
Derivative warrant liability
|
|
|
519
|
|
|
16,307
|
|
|
2,071
|
Non-GAAP Shareholders' equity
|
|
|
25,668
|
|
|
18,926
|
|
|
22,921
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
Research and development expenses
|
|
|
(4,262)
|
|
(1,275)
|
|
|
(2,187)
|
|
(778)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and sales
|
|
|
(540)
|
|
(513)
|
|
|
(234)
|
|
(392)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
(1,941)
|
|
(2,337)
|
|
|
(887)
|
|
(1,666)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(6,743)
|
|
(4,125)
|
|
|
(3,308)
|
|
(2,836)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net loss of an affiliated company
|
|
|
(1,077)
|
|
(383)
|
|
|
(459)
|
|
(215)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing income (expenses), net
|
|
|
6,335
|
|
(22,394)
|
|
|
(316)
|
|
(18,396)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) profit
|
|
|
(1,485)
|
|
(26,902)
|
|
|
(4,083)
|
|
(21,447)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
|
|
|
|
|
|
|
|
Profit (Loss) for the Period
|
|
|
(1,485)
|
|
(26,902)
|
|
|
(4,083)
|
|
(21,447)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile profit (loss) to net cash used in
operating activities:
|
|
|
(3,635)
|
|
24,541
|
|
|
1,554
|
|
19,819
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(5,120)
|
|
(2,361)
|
|
|
(2,529)
|
|
(1,628)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Changes in short term deposits
|
|
|
1,007
|
|
(3,629)
|
|
|
350
|
|
(2,903)
|
Investment in affiliate company
|
|
|
(2,489)
|
|
-
|
|
|
(249)
|
|
-
|
Purchase of fixed assets
|
|
|
(430)
|
|
(80)
|
|
|
(149)
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(1,912)
|
|
(3,709)
|
|
|
(48)
|
|
(2,951)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Issuance of ordinary shares and warrants, net of issuance
expenses
|
|
|
5,485
|
|
10,745
|
|
|
5,485
|
|
4,652
|
Exercise of warrants and options, net of issuance expenses
|
|
|
159
|
|
5,593
|
|
|
-
|
|
5,457
|
Receipts on account of shares
|
|
|
850
|
|
-
|
|
|
850
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
6,494
|
|
16,338
|
|
|
6,335
|
|
10,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents
|
|
|
(615)
|
|
650
|
|
|
(456)
|
|
516
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(1,153)
|
|
10,918
|
|
|
3,302
|
|
6,082
|
Cash and cash equivalents at the beginning of the
period
|
|
|
9,636
|
|
3,364
|
|
|
5,181
|
|
8,200
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period
|
|
|
8,483
|
|
14,282
|
|
|
8,483
|
|
14,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
Share-based payment
|
|
|
1,180
|
|
1,640
|
|
|
573
|
|
1,406
|
|
Depreciation
|
|
|
90
|
|
15
|
|
|
49
|
|
12
|
|
Revaluation of derivative warrant liability
|
|
|
(1,552)
|
|
23,050
|
|
|
(127)
|
|
18,916
|
|
Equity in loss of an affiliated company
|
|
|
1,077
|
|
383
|
|
|
459
|
|
215
|
|
Revaluation of securities
|
|
|
(22)
|
|
(6)
|
|
|
8
|
|
(5)
|
|
Revaluation of other investments
|
|
|
(5,328)
|
|
-
|
|
|
-
|
|
-
|
|
exchange rate changes on cash and cash equivalents
|
|
|
615
|
|
(650)
|
|
|
456
|
|
(516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in other receivables
|
|
|
142
|
|
(176)
|
|
|
149
|
|
225
|
|
Increase (decrease) in Trade payables
|
|
|
(24)
|
|
-
|
|
|
10
|
|
(242)
|
|
Increase (decrease) in other accounts payable
|
|
|
187
|
|
285
|
|
|
(23)
|
|
(192)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile profit (loss) to net cash used
in operating activities
|
|
|
(3,635)
|
|
(24,541)
|
|
|
1,554
|
|
19,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORESIGHT AUTONOMOUS HOLDINGS LTD.
SUPPLEMENTAL RECONCILIATION OF GAAP TO
NON-GAAP RESULTS
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30
|
|
|
Three months ended June 30,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
GAAP operating loss
|
|
|
(6,743)
|
|
(4,125)
|
|
|
(3,308)
|
|
(2,836)
|
|
Stock-based compensation in research and development
|
|
|
349
|
|
183
|
|
|
166
|
|
183
|
|
Stock-based compensation in sales and marketing
|
|
|
96
|
|
261
|
|
|
48
|
|
261
|
|
Stock-based compensation in general and administrative
|
|
|
735
|
|
1,196
|
|
|
359
|
|
962
|
|
Non-GAAP operating loss
|
|
|
(5,563)
|
|
(2,485)
|
|
|
(2,735)
|
|
(1,430)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Financing income (expenses), net
|
|
|
6,335
|
|
(22,394)
|
|
|
(316)
|
|
(18,396)
|
|
Revaluation of other investments
|
|
|
(5,328)
|
|
-
|
|
|
-
|
|
-
|
|
Revaluation of derivative warrant liability
|
|
|
(1,552)
|
|
23,050
|
|
|
(127)
|
|
18,916
|
|
Non-GAAP Financing income (expenses), net
|
|
|
(545)
|
|
656
|
|
|
(443)
|
|
520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net profit (loss)
|
|
|
(1,485)
|
|
(26,902)
|
|
|
(4,083)
|
|
(21,447)
|
|
Stock-based compensation expenses
|
|
|
1,180
|
|
1,640
|
|
|
573
|
|
1,406
|
|
Revaluation of other investments
|
|
|
(5,328)
|
|
-
|
|
|
-
|
|
-
|
|
Revaluation of derivative warrant liability
|
|
|
(1,552)
|
|
23,050
|
|
|
(127)
|
|
18,916
|
|
Non-GAAP net loss
|
|
|
(7,185)
|
|
(2,212)
|
|
|
(3,637)
|
|
(1,125)
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180817005055/en/
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