Market Overview

Foresight Announces Fourth Quarter and Full Year 2017 Financial Results

Share:

Foresight Autonomous Holdings Ltd., an innovator in automotive vision
systems (NASDAQ and TASE: FRSX), today reported financial results for
the fourth quarter and full year 2017. Foresight ended the fourth
quarter of 2017 with $21.8 million in cash and short-term deposits, with
GAAP net loss for the full year 2017 of $15.9 million and with non-GAAP
net loss of $5.3 million.

"The excitement for Foresight's life-saving automotive vision solutions
continues to grow," commented Foresight Chief Executive Officer Haim
Siboni. "Most recently, our innovative QuadSightTM vision
system drew a tremendous amount of attention at the International
Consumer Electronics Show in Las Vegas. We have also seen considerable
progress in China, as Foresight concluded pilot programs with multiple
leading Chinese car manufacturers during 2017. In the coming year, we
will continue to leverage our industry-leading technology through pilot
tests and commercial partnerships, leading us to long-term success."

Fourth Quarter 2017 Financial Results

  • Research and development (R&D) expenses for the three months ended
    December 31, 2017 were $1,670,000, compared to $308,000 in the three
    months ended December 31, 2016. General and administrative (G&A)
    expenses for the three months ended December 31, 2017 were $732,000,
    compared to $645,000 in the three months ended December 31, 2016. This
    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.
  • GAAP net profit for the three months ended December 31, 2017 was
    $6,493,000, or $0.06 per ordinary share, compared to a GAAP net loss
    of $1,019,000, or $0.01 per ordinary share, in the three months ended
    December 31, 2016. The decrease is attributed mainly to the
    revaluation of derivative warrant liability, and revaluation of other
    investments (mainly the warrants we hold in Rail Vision Ltd.).

    Non-GAAP
    net loss for the three months ended December 31, 2017 was $977,000 or
    $(0.01) per ordinary share compared to a non-GAAP net loss of
    $1,032,000, or $(0.01) per ordinary share, in the three months ended
    December 31, 2016.

Full Year 2017 Financial Results

  • R&D expenses for the full year ended December 31, 2017 were
    $4,089,000, compared to $904,000 in the full year ended December 31,
    2016. The increase is attributed to acceleration in Research &
    Development efforts and employee recruitment, and is comprised
    primarily of payroll and related expenses, stock-based compensation
    expenses and subcontracted services expenses.
  • G&A expenses for the full year ended December 31, 2017 were
    $3,753,000, compared to $2,627,000 in the full year ended December 31,
    2016. The increase is attributed primarily to payroll and related
    expenses, stock-based compensation expenses and expenses related to
    service providers.
  • GAAP net loss for the full year ended December 31, 2017 was
    $15,942,000, or $(0.17) per ordinary share, compared to a GAAP net
    loss of $1,913,000 or $(0.03) per ordinary share, in the full year
    ended December 31, 2016. The increase is attributed mainly to the
    increase in R&D expenses, the increase in stock-based compensation
    expenses, and the increase in revaluation of derivative warrant
    liability.

    Non-GAAP net loss for the full year ended
    December 31, 2017 was $5,274,000 or $(0.06) per ordinary share
    compared to a non-GAAP net loss of $3,355,000 or $(0.05) per ordinary
    share, in the full year ended December 31, 2016.
  Full year ended   Three months ended
December 31, December 31,

(thousands of U.S. dollars,

2017   2016 2017   2016

except per share data)

             
GAAP Results
Net (loss) profit $ (15,942) $ (1,913) $ 6,493 $ (1,019)
Basic and diluted (loss) profit per share (0.17) (0.03) 0.06 (0.01)
Non-GAAP Results
Net loss $ (5,274) $ (3,355) $ (977) $ (1,032)
Basic and diluted loss per share (0.06) (0.05) (0.01) (0.01)
 

A reconciliation between GAAP operating results and non-GAAP operating
results is provided in the following financial statements that are part
of this release. Non-GAAP results exclude stock-based compensation
expenses, revaluation of other investments and revaluation of derivative
warrant liability.

Balance Sheet Highlights

  • Cash and short-term deposits totaled $21.8 million as of December 31,
    2017, compared to $3.8 million on December 31, 2016. The increase
    compared to December 31, 2016 is attributed mainly to the proceeds
    received from private placements that occurred in the first half of
    2017, totaling $11.6 million gross ($10.7 net) proceeds and to the
    warrants exercise proceeds, equal to $12.6 million, less the cash used
    during the period.
  • GAAP shareholders' equity totaled $24.8 million as of December 31,
    2017, compared to $4.7 million as of December 31, 2016.

    Non-GAAP
    shareholders' equity totaled $22.9 million as of December 31, 2017,
    compared to $4.8 million as of December 31, 2016.
  As of
December 31,
(thousands of U.S. dollars) 2017   2016
GAAP Results
Shareholders' equity $ 24,817 $ 4,669
Non-GAAP Results
Shareholders' equity $ 22,921 $ 4,800
 

A reconciliation between GAAP shareholders' equity results and non-GAAP
shareholders' equity results is provided in the following financial
statements that are part of this release. Non-GAAP results exclude
derivative warrant liability and revaluation of other investments.

Recent Corporate Highlights:

  • Demonstrated QuadSightTM vision system at
    CES 2018:
    Foresight exhibited its groundbreaking QuadSightTM
    vision system at CES 2018 in Las Vegas, drawing considerable attention
    including a feature on CNBC's "Halftime Report." Foresight
    demonstrated the quad-camera vision system's industry-leading obstacle
    detection in all lighting and weather conditions.
  • Increased stake in Rail Vision following successful trial in Europe:
    Foresight increased its stake in Rail Vision Ltd. by exercising
    warrants on 11,486 of Rail Vision's ordinary shares for an aggregate
    of $2.24 million. As of the date hereof, Foresight holds 32.16% of the
    issued and outstanding share capital of Rail Vision and 35.39% on a
    fully diluted basis.
  • Completed Pilot Project with One of China's Largest Car
    Manufacturers:
    Foresight successfully completed its
    previously-announced pilot project with one of China's top three
    largest car manufacturers, meeting the pre-defined requirements and
    criteria established for success. Foresight's Eyes-OnTM
    system was tested in both controlled and uncontrolled environments
    against both predefined and incidental targets. The parties have
    agreed to examine potential opportunities for cooperation.

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 and revaluation of derivative warrant liability, and non-GAAP
financial measures of shareholders' equity that excludes the effect of
derivative warrant liability. 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 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 estimates
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 it will continue to leverage industry-leading
technology through pilot tests and commercial partnerships and that it
will examine potential opportunities for cooperation in the coming
months. 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.

 

FORESIGHT AUTONOMOUS HOLDINGS LTD.

INTERIM CONDENSED CONSOLIDATED BALANCE
SHEETS

U.S. dollars in thousands

 

  As of     As of
December 31, December 31,
2017 2016

ASSETS

 
Current assets:
Cash and cash equivalents $ 9,636 $ 3,364
Short term deposits 12,169 390
Marketable equity securities 22 -
Other Investments 2,361 -
Other receivables   482   104
Total current assets 24,670 3,858
 
Non-current assets:
Marketable equity securities - 18
Investment in affiliate company 1,404 1,248
Other investments 1,672 66
Fixed assets, net   289   67
3,365 1,399
 
Total assets $ 28,035 $ 5,257
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities:
Trade payables $ 330 $ 104
Other accounts payable 817 353
Total current liabilities 1,147 457
 
Derivative warrant liability 2,071 131
Total liabilities 3,218 588
 
Shareholders' equity:
 
Common stock of NIS 0 par value; - -
Additional paid-in capital 44,114 8,024
Accumulated deficit   (19,297)   (3,355)
Total shareholders' equity   24,817   4,669
 
Total liabilities and shareholders' equity $ 28,035 $ 5,257
 
 

SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP SHAREHOLDRES'
EQUITY U.S.

dollars in thousands

 
  As of     As of
December December
31, 2017 31, 2016
GAAP Shareholders' equity 24,817 4,669
Revaluation of other investments (3,967) -
Derivative warrant liability 2,071 131
Non-GAAP Shareholders' equity 22,921 4,800
 
 

FORESIGHT AUTONOMOUS HOLDINGS LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS

U.S. dollars in thousands
 
  Year ended     Three months ended
December 31, December 31,
2017   2016 2017   2016
Research and development expenses, net (4,089) (904) (1,670) (308)
 
Marketing and sales (1,015) (224) (239) (64)
 
General and administrative expenses (3,753) (2,627) (732) (645)
 
Operating loss (8,857) (3,755) (2,641) (1,017)
 
Equity in net loss (gain) of an affiliated company (156) 108 (882) 108
 
Financing income (expenses), net (7,241) 1,950 8,253 106
 
Net (loss) profit (15,942) (1,913) 6,494 (1,019)
 
 

FORESIGHT AUTONOMOUS HOLDINGS LTD.

SUPPLEMENTAL RECONCILIATION OF GAAP TO
NON-GAAP RESULTS

U.S. dollars in thousands

 

  Year ended     Three months ended
December 31 December 31,
2017   2016 2017   2016
GAAP operating loss (8,857) (3,755) (2,641) (1,017)
Stock-based compensation in research and development

491

-

146

-

Stock-based compensation in sales and marketing 443 - 89 -
Stock-based compensation in general and administrative

1,521

405

157

81

Non-GAAP operating loss (6,402) (3,350) (2,249) (936)
 
GAAP Financing income (expenses), net

(7,241)

1,950

8,253

106

Revaluation of derivative warrant liability 12,180 (1,847) (3,894) (94)
Revaluation of other investments (3,967) - (3,967) -
Non-GAAP financing (expenses) income, net

972

103

392

12

 
GAAP net profit (loss) (15,942) (1,913) 6,494 (1,019)
Stock-based compensation expenses 2,455 405 391 81
Revaluation of other investments (3,967) - (3,967) -
Revaluation of derivative warrant liability expenses/ income

12,180

(1,847)

(3,894)

(94)

Non-GAAP net loss (5,274) (3,355) (977) (1,032)
 

View Comments and Join the Discussion!