Foresight Announces Second Quarter 2021 Financial Results

(TheNewswire)

NEWS RELEASE BY Foresight Autonomous Holdings Ltd.

NessZiona,Israel|August20,202104:05PM,Eastern

ForesightAutonomousHoldingsLtd.,aninnovatorinautomotivevisionsystems(NasdaqandTASE:FRSX),todayreportedfinancialresultsforthesecondquarterof2021.Foresightendedthesecondquarterof2021with$52.3millionincash,cashequivalentandshort-termdeposits.

The Company reported U.S. generally accepted accounting principles (GAAP) net loss of $3.2million and non-GAAPnetloss of$2.7 millionforthesecond quarterof 2021,comparedto GAAPnet loss of $4.4 million and non-GAAP net loss of $3.2 million for the first quarter of 2021,reflecting a decrease of $1.2 million and $0.5 million, respectively, resulting primarily fromfinancialincomeaccruedduringthesecondquarterof2021.

“Foresightcontinues to achieve remarkable progress as itexpands into new markets andgeographic areas,” said Haim Siboni, Foresight’s Chief Executive Officer. “We believe that ourprototypesaletoaleadingagricultureandconstructionmachinerymanufacturerdemonstrates thepotentialofourQuadSight®visionsystemintheagriculturalequipmentmarket,whileour comingproofofconceptwiththeAmericansubsidiaryofaleadingEuropeanpassengercarmanufacturershowsthecontinuedappealofourtechnologytotheautomotiveindustry.” “Thesecondquarteralsosawimportantmilestonesforourwholly-ownedsubsidiary,Eye-NetMobile, as well as our affiliate, Rail Vision Ltd. (“Rail Vision”). Eye-Net Mobile pilot projectsexpansion in Japan and Europe, and the announcements that Rail Vision has filed a draftprospectusfor aninitialpublicofferingontheTelAvivStockExchange, reflecttheambitiousgoals andlong-termgrowthanticipatedbybothcompanies.”

SecondQuarter2021FinancialResults

• - Researchanddevelopment(R&D)expenses,netforthethreemonthsendedJune30,2021were $2,436,000, compared to $1,876,000 in the three months ended June 30, 2020. Theincreaseisattributedmainlytoanincreaseinpayrollandrelatedexpensesandanincreaseinsubcontractedservices.

  - Generalandadministrative(G&A)expensesforthethreemonthsendedJune30,2021were $812,000,comparedto$634,000inthethreemonthsendedJune30,2020.Theincreaseisattributedprimarilytoanincreaseinshare-basedcompensationexpensestoemployeesandserviceproviders.

  - GAAPnetlossforthethreemonthsendedJune30,2021was$3,163,000,or$0.01per ordinaryshare,comparedtoaGAAPnetlossof$3,331,000,or$0.02perordinaryshare,inthe threemonthsendedJune30, 2020.Thedecrease inthe netlossisattributed mainlytothe increaseinfinancingincome,net,offsetmainlybyanincreaseinpayrollandrelatedexpenses.

  - Non-GAAPnetlossforthethreemonthsendedJune30,2021was$2,661,000,or$0.01per ordinary share, compared to a non-GAAP net loss of $3,136,000, or $0.02 per ordinaryshare,inthesamequarterlastyear.AreconciliationbetweenGAAPnetlossandnon-GAAPnetlossisprovidedinthefinancialstatementsthatarepartofthisrelease.

BalanceSheetHighlights

• - Cash and cash equivalents and short-term deposits totaled $52.3 million as of June 30, 2021,comparedto$43.9millionasofDecember31,2020.

  - GAAP shareholders’ equity totaled $55.3 million as of June 30, 2021, compared to $47million asof December31, 2020.Theincrease isattributed to the receiptof proceedsfromthe securities offerings completed during the first quarter of 2021 and option exercises,offsetbythenetlossforthesameperiod.

SecondQuarterCorporateHighlights:

• - ForesightChosenforJointPOCProjectbyaLeadingEuropeanAutoManufacturer:ForesightwaschosenbytheAmericansubsidiaryofaleadingEuropeanpassengercarmanufacturer to provide a proof-of-concept (POC) to test Foresight’s stereoscopictechnology.Followingsuccessfulcompletionoftheproject,theEuropeanpassengercarmanufacturer may consider integrating Foresight’s solutions into its vehicle safetyapplications.

  - ForesightReceivesPrototypeOrderofQuadSightVisionSystemfromLeading Agricultural Equipment Manufacturer: In June, Foresight announced the sale of aprototypeofitsQuadSightfour-cameravisionsystemtoaleadingglobalmanufacturerofagriculturalandconstructionequipment.ThemanufacturerwillevaluatetheQuadSightsystemforuseinagriculturalmachinery,markingtheCompany’sfirstsaletotheagriculturalequipmentmarket.Foresight’sadvancedthermalstereoscopiccapabilitiesaredesignedtoofferaddedvaluetoprecisionagricultureandautomatednavigation.

  
  - Rail Vision Files Draft Prospectus for Initial Public Offering: In May, Rail Vision, anaffiliate of Foresight, filed a public draft prospectus for an initial public offering andregistration for trade of its securities on the Tel Aviv Stock Exchange. Rail Vision intends tosimultaneously testtheprevailing conditions onthe Israeli capitalmarketstowardsapotential public offering. The filing of a final prospectus is subject to a permit from theIsraeliSecuritiesAuthorityandtheapprovaloftheTelAvivStockExchange.

  - Eye-NetMobiletoPursuePotentialNasdaqListing:Foresight’swhollyownedsubsidiary, Eye-NetMobileLtd.(“Eye-NetMobile”),announcedinMaythatitintendstopursueapotentiallistingontheNasdaqStockMarket.ThestrategicdecisionwasmadefollowingaresolutionoftheboardofdirectorsofbothForesightandEye-NetMobile.
  

  - Eye-NetPartnerswithWebSIAforExclusiveDistributioninBrazil:InApril,Foresight announced that its wholly owned subsidiary, Eye-Net Mobile, signed a distributionagreement with WebSIA Soluções Disruptivas, Inteligências Associadas, Tecnologia eServiçosLtda.(“WebSIA”),a Braziliandistributor,developer andintegrator focusedoncutting-edgetechnologies.WebSIAwillexclusivelypromotetheEye-NetProtectaccidentpreventionsolutionandserveasEye-Net’sdistributorinthecityofSaoPaulo,Brazil’smost denselypopulatedandtechnologicallyadvancedregion.

  - RailVisionSignsAgreementtoSupplyPrototypetoRioTintoRailwayNetwork:InMay, Foresight’saffiliateRailVisionannouncedanagreementtosupplyequipment,servicesandpersonnel to the Australian rail company Rio Tinto Railway Network. According to theagreement, Hitachi Rail STS,the project integrator, will supply RioTinto with a prototype ofRailVision’sCollision Avoidance System to conductdemonstration and feasibility testing foraproof-of-conceptproject.SuccessfuldemonstrationsmayleadtoRailVisionoutfittingRioTinto’sentirefleetofapproximately220vehicleswithitssystems.

UseofNon-GAAPFinancialResults

InadditiontodisclosingfinancialresultscalculatedinaccordancewithUnitedStatesgenerallyacceptedaccountingprinciples(GAAP),thecompany'searningsreleasecontainsnon-GAAPfinancialmeasuresofnetlossfortheperiodthatexcludetheeffectofstock-basedcompensationexpenses.Thecompany’smanagementbelievesthenon-GAAPfinancialinformationprovidedinthis release is useful to investors’ understanding and assessment of the company's ongoingoperations.ManagementalsousesbothGAAPandnon-GAAPinformationinevaluatingandoperatingbusinessinternallyandassuchdeemeditimportanttoprovideallthisinformationtoinvestors.Thenon-GAAPfinancialmeasuresdisclosedbythecompanyshouldnotbeconsideredinisolationorasasubstitutefor,orsuperiorto,financialmeasurescalculatedinaccordancewithGAAP,andthefinancialresultscalculatedinaccordancewithGAAPandreconciliationstothosefinancialstatementsshouldbecarefullyevaluated.ReconciliationsbetweenGAAPmeasuresandnon-GAAPmeasuresareprovidedlaterinthispressrelease.

AboutForesight

Foresight Autonomous Holdings Ltd. (Nasdaq and TASE: FRSX), founded in 2015, is a technologycompanyengagedinthedesign,developmentandcommercializationofsensorsystemsfortheautomotiveindustry.Throughthecompany’swhollyownedsubsidiaries,ForesightAutomotiveLtd. and Eye-Net Mobile Ltd., Foresight develops both “in-line-of-sight” vision systems and“beyond-line-of-sight”cellular-basedapplications.Foresight’svisionsensorisafour-camerasystembasedon3Dvideoanalysis,advancedalgorithmsforimageprocessing,andsensorfusion.Eye-NetMobile’scellular-basedapplicationisaV2X(vehicle-to-everything)accidentpreventionsolutionbasedonreal-timespatialanalysisofclients’movement.

Thecompany’ssystemsaredesignedtoimprovedrivingsafetybyenablinghighlyaccurateandreliablethreatdetectionwhileensuringthelowestratesoffalsealerts.Foresightistargetingthesemi-autonomous and autonomous vehicle markets and predicts that its systems willrevolutionizeautomotivesafetybyprovidinganautomotive-grade,cost-effectiveplatformandadvancedtechnology.

FormoreinformationaboutForesightanditswhollyownedsubsidiary,ForesightAutomotive,visitwww.foresightauto.com, follow@ForesightAuto1on Twitter,or joinForesightAutomotiveonLinkedIn.

Forward-LookingStatements

Thispressreleasecontainsforward-lookingstatementswithinthemeaningofthe“safeharbor”provisionsofthePrivateSecuritiesLitigationReformActof1995andotherFederalsecuritieslaws.Wordssuchas“expects,”“anticipates,”“intends,”“plans,”“believes,”“seeks,”"estimates"andsimilarexpressionsorvariationsofsuchwordsareintendedtoidentifyforward-lookingstatements.Forexample,Foresightisusingforward-lookingstatementsinthispressreleasewhen itdiscussesthepotentialoftheCompany’sQuadSight®visionsystemintheagriculturalequipmentmarketandthecontinuedappealofForesight’stechnologytotheautomotiveindustry,long-termgrowthanticipatedbybothRailVisionandEye-NetMobile,thatfollowingthesuccessfulcompletion of the POC project, the European passenger car manufacturer may considerintegrating Foresight’s solutions into its vehicle safety applications, that Rail Vision intends to testthe prevailing conditions on the Israeli capital markets towards a potential public offering, thatEye-NetMobileintendstopursueapotentiallistingontheNasdaqStockMarket,thatWebSIAwillexclusivelypromotetheEye-NetProtectaccidentpreventionsolutionandserveasEye-Net’sdistributor in the city of Sao Paulo, and that successful demonstrations of Rail Vision’s CollisionAvoidance System may lead to Rail Vision outfitting Rio Tinto’sentire fleet.Because suchstatementsdealwithfutureeventsandarebasedonForesight’scurrentexpectations,theyaresubjecttovariousrisksanduncertaintiesandactualresults,performanceorachievementsof Foresightcoulddiffermateriallyfromthosedescribedinorimpliedbythestatementsinthispressrelease.Theforward-lookingstatementscontainedorimpliedinthispressreleasearesubjecttoother risks and uncertainties, including those discussed under the heading “Risk Factors” inForesight’sannualreportonForm20-FfiledwiththeSecuritiesandExchangeCommission(“SEC”)onMarch 30,2021,and inany subsequentfilingswith the SEC. Exceptasotherwiserequired bylaw,Foresightundertakesnoobligationtopubliclyreleaseanyrevisionstotheseforward-lookingstatementstoreflecteventsorcircumstancesafterthedatehereofortoreflecttheoccurrenceofunanticipatedevents.Referencesandlinkstowebsiteshavebeenprovidedasaconvenience,andtheinformationcontainedonsuchwebsitesisnotincorporatedbyreferenceintothispressrelease.

InvestorRelationsContact:

Miri Segal-SchariaCEO

MS-IRLLC

msegal@ms-ir.com

917-607-8654

FORESIGHTAUTONOMOUSHOLDINGSLTD.

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ContactDetails

InvestorRelationsContact

MiriSegal-Scharia,CEO,MS-IRLLC

+1917-607-8654

msegal@ms-ir.com

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