Ra’anana, Israel, Dec. 01, 2025 (GLOBE NEWSWIRE) -- Rail Vision Ltd. (Nasdaq: RVSN) (“Rail Vision” or the “Company”), an early commercialization stage technology company seeking to revolutionize railway safety and the data-related market, today announced the signing of an agreement for a strategic transaction to acquire 51% ownership of Quantum Transportation Ltd. (the “Acquisition” and “Quantum Transportation”), a cutting-edge quantum computing and AI company specializing in error correction technologies. ...

Core Viewpoint - Rail Vision Ltd. has announced a strategic acquisition to acquire 51% of Quantum Transportation Ltd., aiming to combine quantum computing capabilities with its railway safety technologies, which could create significant synergies and enhance product offerings [1][2]. Acquisition Details - The acquisition involves Rail Vision issuing ordinary shares representing approximately 4.99% of its share capital to select Quantum Transportation shareholders in exchange for their full holdings, ensuring majority control post-closing [3]. - Rail Vision will also extend a convertible loan of up to $700,000 to Quantum Transportation at an 8% annual interest rate, to support ongoing operations and development [3]. Technology and Innovation - Quantum Transportation's patented machine learning-based universal decoder addresses quantum error correction, which is crucial for scalable quantum computing, and is adaptable across various hardware platforms [4]. - The integration of this technology into Rail Vision's operations is expected to enhance capabilities in anomaly detection, predictive maintenance, and autonomous rail operations, tapping into the growing quantum computing market [4]. Transaction Timeline - The transaction is subject to the signing of definitive agreements and key milestones, with an expected closing within the next 60 days, pending regulatory approvals [5]. Company Overview - Rail Vision is a development stage technology company focused on revolutionizing railway safety and the data-related market through advanced AI technologies designed for railways, aiming to increase safety and efficiency while reducing costs for railway operators [6].

Company Overview - Rail Vision (RVSN) is valued at a market cap of $27 million and specializes in developing railway detection systems aimed at enhancing operational safety, efficiency, and predictive maintenance [1] - The company utilizes specialized cameras and onboard computers to monitor train operations, prevent collisions, and reduce downtime, while also offering cloud-based data services and geographic mapping systems to railway operators globally [1] Recent Developments - Rail Vision has signed a term sheet to acquire 51% of Quantum Transportation, a startup focused on error correction technology for quantum systems, marking an unusual move into quantum computing [2] - The acquisition deal involves issuing shares worth approximately 5% of Rail Vision's capital to certain shareholders of Quantum Transportation and providing a convertible loan of up to $700,000 at an 8% annual interest rate to support operations [3] Technology and Applications - Quantum Transportation has developed a patented machine learning decoder that addresses noise in qubits, a significant challenge in quantum computing, which can assist smaller quantum companies in testing error correction methods [4] - Rail Vision plans to leverage this intellectual property for railway applications, including predictive maintenance and autonomous operations [4] Financial Performance - Rail Vision reported mixed financial results for the first half of 2025, ending Q2 with $22.3 million in cash, an increase from $17.2 million in 2025, providing a runway for growth strategy execution [5] - Revenue for the first six months of 2025 decreased by 69% year-over-year to $237,000 from $761,000, attributed to timing issues with revenue recognition rather than lost business [6] - The majority of revenue was generated from additional MainLine system installations for Israel Railways and servicing existing customers [6] - Research and development spending increased to $3.2 million from $2.5 million, driven by higher headcount, salary increases, and currency headwinds due to the weakening of the dollar against the Israeli shekel [7] - General and administrative costs rose to $2.5 million from $2.1 million, influenced by one-time employee bonuses and stock-based compensation [7]

Core Viewpoint - Rail Vision Ltd. has announced a strategic transaction to acquire 51% of Quantum Transportation Ltd., aiming to enhance railway safety and innovation through the integration of quantum computing and AI technologies [1][2][5]. Company Overview - Rail Vision is a development stage technology company focused on revolutionizing railway safety and the data-related market with AI-based technologies designed to improve efficiency and reduce costs for railway operators [6]. Acquisition Details - The acquisition involves Rail Vision issuing ordinary shares representing approximately 4.99% of its share capital to select Quantum Transportation shareholders in exchange for their full holdings, securing majority control post-closing [3]. - Rail Vision will also extend a convertible loan of up to $700,000 to Quantum Transportation at an 8% annual interest rate, to support ongoing operations and development [3]. Technology Synergies - Quantum Transportation's patented machine learning-based universal decoder addresses noise in qubits, enabling scalable quantum computing and enhancing error correction capabilities [4]. - The integration of this technology with Rail Vision's existing systems aims to unlock new capabilities in anomaly detection, predictive maintenance, and autonomous rail operations, capitalizing on the growing quantum computing market [4][5]. Strategic Importance - The CEO of Rail Vision emphasized that this acquisition would blend rail-focused AI expertise with quantum error correction, aiming to redefine safety and efficiency in the global railway sector [5]. - The transaction is expected to close within the next 60 days, subject to regulatory approvals and other conditions [5].

Core Viewpoint - Rail Vision Ltd. has been granted an additional 180-day compliance period by Nasdaq to regain compliance with the minimum bid price rule, extending the deadline to March 2, 2026 [1][2][3] Company Compliance Status - The company was initially notified on March 6, 2025, that its shares did not meet the minimum bid price of $1.00 for 30 consecutive business days, leading to a 180-day compliance period until September 2, 2025 [3] - After failing to regain compliance during the first period, the company requested and received an additional 180-day compliance period [3][5] Compliance Requirements - To regain compliance, the company's ordinary shares must close at or above $1.00 for at least 10 consecutive business days before March 2, 2026 [4] - Nasdaq may require the company to maintain the bid price for a longer period, generally not exceeding 20 consecutive business days [4] Trading Status - The current notification from Nasdaq does not affect the listing or trading of the company's shares, which will continue to trade under the symbol "RVSN" [5] Company Overview - Rail Vision is a technology company focused on enhancing railway safety and efficiency through artificial intelligence [6] - The company aims to revolutionize the railway industry by developing systems that save lives, increase operational efficiency, and reduce costs for railway operators [6] - Rail Vision's technology is positioned to advance the concept of autonomous trains into practical applications [6]

Financial Performance - Revenues for the six months ended June 30, 2025, were $237,000, a decline of 68.8% compared to $761,000 for the same period in 2024[7] - The net loss for the period was $5,679,000, significantly reduced from a net loss of $24,324,000 in the prior year, representing a 76.6% improvement[7] - Basic and diluted loss per share improved to $(0.11) from $(1.99) in the same period last year[7] Assets and Equity - As of June 30, 2025, Rail Vision Ltd. reported total assets of $25,370,000, an increase of 23.5% from $20,597,000 as of December 31, 2024[5] - Cash and cash equivalents at the end of the period were $22,431,000, up from $17,238,000 at the end of 2024, reflecting a 30.5% increase[5] - Total shareholders' equity increased to $22,694,000 as of June 30, 2025, compared to $17,702,000 at the end of 2024, marking a 28.3% increase[5] Research and Development - Research and development expenses increased to $3,241,000, up 31.7% from $2,458,000 in the same period last year[7] - Rail Vision Ltd. continues to focus on the development of railway detection systems aimed at enhancing operational safety and efficiency[15] Fundraising and Share Issuance - The company raised approximately $11.3 million during the reported period through share issuances and warrant exercises[19] - The Company entered into a Standby Equity Purchase Agreement allowing Yorkville to purchase up to $30 million of ordinary shares, with 22,210,892 shares issued under the SEPA for total gross proceeds of approximately $18,308[28][29] - During the six-month period ended June 30, 2025, the Company sold 308,987 ordinary shares under the ATM Sales Agreement, generating gross proceeds of approximately $130 thousand[32] - As of June 30, 2025, a total of 17,170,000 Facility Warrants had been exercised, generating gross proceeds of approximately $7,005, of which $2,428 was received during the six-month period ended June 30, 2025[27] Management Changes - Mr. David BenDavid was appointed as Chief Executive Officer on April 24, 2025, succeeding Mr. Shahar Hania[34] Strategic Partnerships - The Company signed a Memorandum of Understanding with Sujan Ventures to introduce advanced safety systems to the Indian market, with an initial trial planned[24] Operational Outlook - The company anticipates that its cash and cash equivalents will be sufficient for more than 12 months of operations based on the current burn rate[19] - In April 2025, the Company granted 2,934,000 restricted share units to employees, with an expense of $273 recorded for the six months ended June 30, 2025[33]

Core Viewpoint - Rail Vision Ltd. is positioned to expand its market reach and enhance railway safety through innovative technology, despite facing a significant decrease in revenue in the first half of 2025 compared to the previous year [2][6]. Financial Performance - Rail Vision reported revenues of $237,000 for the six months ended June 30, 2025, a decrease of $524,000 or 69% from $761,000 in the same period of 2024, primarily due to the timing of revenue recognition [6][11]. - The company's operating loss for the first half of 2025 was $5,705,000, compared to an operating loss of $4,185,000 for the same period in 2024 [7][17]. - GAAP net loss for the six months ended June 30, 2025, was $5,679,000 or $0.11 per share, significantly improved from a net loss of $24,324,000 or $1.99 per share in the same period of 2024 [8][11]. - Non-GAAP net loss for the same period was $4,869,000 or $0.10 per share, compared to a non-GAAP net loss of $5,394,000 or $0.44 per share in 2024 [11][25]. Cash Position - As of June 30, 2025, Rail Vision had cash and cash equivalents of $22.4 million, an increase from $17.2 million as of December 31, 2024, primarily due to proceeds from share issuances totaling $9.8 million [3][9]. Commercial Developments - Rail Vision received a purchase order from a Central American freight operator for its MainLine system, marking its initial penetration in Central America [6]. - The company secured a follow-on order worth $335,000 from a leading Latin American mining company, following a successful trial of the MainLine system [6]. - Rail Vision signed a binding Memorandum of Understanding with Sujan Ventures to introduce its safety systems to the Indian market, reflecting its intent to enter a significant rail market [6]. Research and Development - Research and development expenses for the first half of 2025 were $3,241,000, an increase from $2,458,000 in the same period of 2024, attributed to higher salaries and increased R&D activities [6][11]. General and Administrative Expenses - General and administrative expenses rose to $2,512,000 for the first half of 2025, compared to $2,116,000 in the same period of 2024, driven by salary adjustments and one-time bonuses [6][11]. Overall Strategy - The company aims to leverage its strong technological foundation and solid cash position to expand its market reach while continuing to innovate in the railway safety sector [2][12].

Core Viewpoint - Rail Vision Ltd. has received a Decision to Grant from the European Patent Office for a novel system aimed at enhancing railway safety through improved imaging technology [1][4]. Group 1: Patent and Technology - The patented system consists of an imaging device and a processing unit that work together to capture and analyze visual data from a train's forward-facing camera [2]. - The system allows for higher sampling rates by acquiring partial datasets from a Selected Region Of Interest (SROI) during residual time within handling cycles [2][3]. - The processing unit includes a tracking module that detects rails, calculates a safe braking line, and establishes a safe zone for early hazard detection [3]. Group 2: Company Vision and Impact - The CEO of Rail Vision emphasized that the technology will enable train operators to detect hazards sooner and improve operational efficiency, contributing to safer railway transportation [4]. - Rail Vision aims to enhance railway safety and operational efficiency globally, with the potential to advance the concept of autonomous trains [5].

Core Insights - Rail Vision Ltd. has secured a $335,000 follow-on order from a prominent Latin American mining company for its MainLine system, marking a significant commercial milestone and indicating continued expansion in the Latin American market [1][2][4] - The MainLine system enhances safety and optimizes rail transport efficiency within the mining company's extensive operations, following a successful long-term trial [2][3] - The technology provides real-time obstacle detection and alerting capabilities up to two kilometers ahead, ensuring safer railway operations under extreme conditions [3] Company Overview - Rail Vision is focused on revolutionizing railway safety through AI-driven vision technology, integrating advanced electro-optics, deep learning, and big data analytics [5] - The company's solutions aim to enhance safety, optimize efficiency, and facilitate the transition toward autonomous railway operations [5] - Increasing customer adoption and repeat orders reinforce Rail Vision's position as a key technology provider in the railway industry [5]

Core Insights - Rail Vision Ltd. has announced a leadership transition with Mr. Shahar Hania stepping down as CEO to pursue new opportunities, effective April 24, 2025, while remaining on the Board of Directors [1][2] - Mr. David BenDavid has been appointed as the new CEO, bringing extensive experience in technology and leadership, having previously served as Rail Vision's CTO [2][3] Company Overview - Rail Vision is a development stage technology company focused on revolutionizing railway safety and the data-related market through advanced artificial intelligence technology [5] - The company's technology aims to enhance railway safety, increase operational efficiency, and reduce costs for railway operators, with potential applications in autonomous train systems [5]