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Foresight Announces Third Quarter 2021 Financial Results

·15-min read

DGAP-News: Foresight Autonomous Holdings Ltd.
12.11.2021 / 14:25
The issuer is solely responsible for the content of this announcement.

Foresight Autonomous Holdings Ltd., an innovator in automotive vision systems (Nasdaq and TASE: FRSX) ('Foresight'), today reported financial results for the third quarter of 2021. Foresight ended the third quarter of 2021 with $49 million in cash, cash equivalent and short-term deposits.

The Company reported U.S. generally accepted accounting principles (GAAP) net loss of approximately $3.8 million and non-GAAP net loss of approximately $3.4 million for the third quarter of 2021, compared to GAAP net loss of approximately $4 million and non-GAAP net loss of approximately $3.4 million for the third quarter of 2020.

'During the third quarter, Foresight achieved several significant milestones as part of our strategy to establish a worldwide network of partners for our stereoscopic vision systems for autonomous and semi-autonomous vehicles,' stated Haim Siboni, Foresight's chief executive officer. 'We launched pilot projects and signed new agreements with partners in multiple regions, including our first proof-of-concept (POC) project within the autonomous drones category. We are seeing widespread and diverse interest in our innovative vision systems, as manufacturers across industries and geographies recognize the need for safety and reliability in the autonomous vehicle revolution.

Foresight has also made important progress in our penetration of the Chinese market, as the company began two POC projects with leading Chinese vehicle manufacturers.

This quarter we note an important milestone of the Company's first recorded revenues, from our previously announced paid POC project with a European OEM. POC projects are an essential aspect of our sales cycle, which may lead to design-wins and potential revenues. Over time, we expect the caliber and geographic diversity of our POC partners to lead to significant growth.

Our wholly owned subsidiary, Eye-Net Mobile Ltd., also experienced key breakthroughs during the third quarter. Eye-Net Mobile launched pilot projects with leading manufacturers in Europe and Japan, reflecting a significant and expanding market for its vehicle-to-everything (V2X) accident prevention technology.'

Third Quarter 2021 Financial Results

Balance Sheet Highlights

Third Quarter Corporate Highlights:

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 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 widespread and diverse interest in our innovative vision systems, a significant and expanding market for its vehicle-to-everything accident detection technology, that the Company's POC projects may lead to design-wins and potential revenues, and the Company's expectation that the caliber and geographic diversity of its POC partners will lead to significant growth over time, the timing of the successful completion of the second milestone with a European Vehicle Manufacturer, negotiation of a commercial agreement for the co-development of advanced solutions integrating Foresight's technology with XY's automotive sensors, that a leading Chinese passenger car manufacturer may consider future cooperation for possible integration into its semi- and fully autonomous vehicles, the expected timing of the completion of the POC project with a leading European vehicle manufacturer, the POC project with Wonder Robotics, a pilot project with the IT subsidiary of a multi-billion-dollar multinational Japanese company, and its collaboration on a pilot project with V-tron. 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

msegal@ms-ir.com

917-607-8654

FORESIGHT AUTONOMOUS HOLDINGS LTD.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

As of

September 30,

2021

As of

September 30,

2020

As of

December 31,

2020

ASSETS

Current assets:

Cash and cash equivalents

$

32,268

$

9,395

$

38,772

Restricted cash

60

-

-

Short term deposits

16,724

5,142

5,166

Marketable equity securities

17

19

42

Other receivables

675

446

401

Total current assets

49,744

15,002

44,381

Non-current assets:

ROU asset

1,867

1,127

1,104

Investment in affiliate company

-

4,730

-

Investment in equity securities

4,011

-

4,011

Fixed assets, net

426

487

427

6,304

6,344

5,542

Total assets

$

56,048

$

21,346

$

49,923

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Trade payables

$

278

$

188

$

391

Operating lease liability

430

401

427

Other accounts payables

1,904

1,158

1,207

Total current liabilities

2,612

1,747

2,025

Non-current liabilities:

Operating lease liability

1,499

832

853

-

Total liabilities

4,111

2,579

2,878

Shareholders' equity:

Common stock of no par value;

-

-

-

Additional paid-in capital

127,834

79,478

111,739

Accumulated deficit

(76,078

)

(60,753

)

(64,768

)

Total Foresight Autonomous Holdings Ltd. shareholders' equity

51,756

18,725

46,971

Non-controlling interest

181

42

74

Total equity

51,937

18,767

47,045

Total liabilities and shareholders' equity

$

56,048

$

21,346

$

49,923

FORESIGHT AUTONOMOUS HOLDINGS LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

U.S. dollars in thousands

Nine months ended

Three months ended

September 30,

September 30,

2021

2020

2021

2020

Service revenues

40

-

40

-

Cost of revenues

35

-

35

-

Gross profit

5

-

5

-

Research and development expenses, net

(7,523)

(6,374)

(2,428)

(2,157)

Marketing and sales

(1,318)

(973)

(333)

(307)

General and administrative expenses

(2,993)

(2,212)

(975)

(918)

Operating loss

(11,829)

(9,559)

(3,731)

(3,382)

Equity in net loss of an affiliated company

-

(1,999)

-

(655)

Financing income (expense), net

519

198

(54)

57

Net loss

(11,310)

(11,360)

(3,785)

(3,980)

FORESIGHT AUTONOMOUS HOLDINGS LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

U.S. dollars in thousands

Nine months ended

September 30,

Three months ended

September 30,

2021

2020

2021

2020

Net cash used in operating activities

Loss for the Period

(11,310)

(11,360)

(3,785)

(3,980)

Adjustments to reconcile loss to net cash used in operating activities:

2,335

2,852

573

1,249

Net cash used in operating activities

(8,975)

(8,508)

(3,212)

(2,731)

Cash Flows from Investing Activities

Changes in short term deposits

(11,558)

91

11,738

1,987

Proceed from sales of marketable securities

-

68

-

-

Purchase of fixed assets

(118)

(48)

(56)

(39)

Net cash provided (used) by investing activities

(11,676)

111

11,682

1,948

Cash flows from Financing Activities:

Issuance of ordinary shares and warrants, net of issuance expenses

13,508

12,929

-

(153)

Proceeds from exercise of warrants

595

-

-

-

Proceeds from exercise of options

57

-

-

-

Net cash provided (used) by financing activities

14,160

12,929

-

(153)

Effect of exchange rate changes on cash and cash equivalents

47

36

(25)

19

Increase (decrease) in cash and cash equivalents and restricted cash

(6,444)

4,568

8,445

(917)

Cash and cash equivalents at the beginning of the period

38,772

4,827

23,883

10,312

Cash and cash equivalents and Restricted cash at the end of the period

32,328

9,395

32,328

9,395

FORESIGHT AUTONOMOUS HOLDINGS LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

U.S. dollars in thousands

Adjustments to reconcile loss to net cash used in operating activities:

Nine months

ended

September 30,

Three months

ended

September 30,

2021

2020

2021

2020

Share-based payment

2,042

910

379

560

Depreciation

119

192

38

61

Equity in loss of an affiliated company

-

1,999

-

655

Revaluation of securities

25

(64)

(6)

(5)

Exchange rate changes on cash and cash equivalents

(47)

(36)

25

(19)

Changes in assets and liabilities:

Decrease (increase) in other receivables

(274)

167

(151)

(135)

Increase (decrease) in trade payables

(113)

(310)

58

94

Change in operating lease liability

(107)

(15)

15

2

Increase in other accounts payable

690

9

215

36

Adjustments to reconcile loss to net cash used in operating activities

2,335

2,852

573

1,249

Supplemental cash flow information related to operating leases was as follows:

Nine months ended

Three months ended

September 30,

September 30,

2021

2020

2021

2020

Cash payments for operating leases

334

316

115

95

New operating lease assets obtained in exchange for operating lease liabilities

1,010

101

38

37

FORESIGHT AUTONOMOUS HOLDINGS LTD.

SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands

Nine months ended

September 30

Three months ended

September 30,

2021

2020

2021

2020

GAAP net loss

(11,310)

(11,360)

(3,785)

(3,980)

Share-based payment in research and development

2,042

910

379

560

Non-GAAP net loss

(9,268)

(10,450)

(3,406)

(3,420)

Contact Details

Investor Relations Contact:

Miri Segal-Scharia, CEO, MS-IR LLC

+1 917-607-8654

msegal@ms-ir.com

Company Website

https://www.foresightauto.com/


News Source: News Direct


12.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Foresight Autonomous Holdings Ltd.

United States

ISIN:

US3455231049

EQS News ID:

1248747


 

End of News

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