Foresight(FRSX) - 2024 Q4 - Annual Report

Foresight 2024 Q4 and Full Year Financial Results This section provides an overview of Foresight's financial performance for Q4 and full year 2024, alongside strategic commentary from the CEO and key business developments Financial Highlights For the full year 2024, Foresight reported revenues of $436,000 and a GAAP net loss of $11.1 million, a 39.5% improvement from 2023. The company ended the year with $7.2 million in cash and equivalents and secured an additional $4.75 million in financing in early 2025. The fourth quarter GAAP net loss was $3.1 million, down from $3.6 million in Q4 2023 Full Year 2024 Key Financial Metrics | Metric | Value (USD) | Source | | :--- | :--- | :--- | | Revenues | $436,000 | Year ended Dec 31, 2024 | | GAAP Net Loss | $11.1 million | 39.5% decrease YoY | | Cash, Cash Equivalent & Restricted Cash | $7.2 million | As of Dec 31, 2024 | Q4 2024 Net Loss (GAAP vs. Non-GAAP) | Metric | Q4 2024 (USD) | Q4 2023 (USD) | | :--- | :--- | :--- | | GAAP Net Loss | $3.1 million | $3.6 million | | Non-GAAP Net Loss | $2.8 million | $3.3 million | - In early 2025, the company secured an additional $4.75 million in financing, primarily through the sale of securities in its subsidiary, Eye-Net Mobile Ltd., strengthening its financial position[3] CEO Commentary and Strategic Outlook CEO Haim Siboni highlighted Q4 2024 as a transformative period, marked by key strategic agreements and technological progress. He emphasized the strong foundation for commercialization with KONEC in South Korea, significant strides by subsidiary Eye-Net in Europe with partners like Renault, and the company's alignment with expected U.S. regulatory support for autonomous vehicles. These developments position Foresight to shape the future of autonomous mobility and industrial automation - The fourth quarter was a transformative period with significant strategic agreements in autonomous tractors, smart parking, and AI-driven mobility solutions[6] - The strategic collaboration with KONEC in South Korea is expected to generate substantial revenue opportunities and may lead to a joint venture[6] - Subsidiary Eye-Net advanced its V2X collision prevention solution in the European market through an agreement with Software République, which includes major players like the Renault Group and Orange S.A[6] - The company believes its technology is well-aligned with expected U.S. regulatory support for autonomous vehicles, underscoring long-term potential[6] Recent Corporate Highlights & Business Developments Foresight has secured several key commercial and collaboration agreements to drive future growth. A distribution agreement with South Korean supplier KONEC projects potential revenues of $7 million by 2029. A partnership with Tata Elxsi aims to commercialize ADAS solutions, starting in India. The company also launched six advanced stereoscopic sensor kits to accelerate development in industrial automation and autonomous mobility. Additionally, collaborations were signed with GINT Ltd. for autonomous tractors, Bumhan Motors for electric buses, and an initiative with Software République to test Eye-Net's V2X solution in France - Signed a commercial agreement with South Korean supplier KONEC, which forecasts sales of $1.5 million by 2027 and potential revenues of $7 million by 2029, with a joint venture also being considered[7] - Partnered with Tata Elxsi Limited to develop and commercialize ADAS and autonomous vehicle solutions, initially targeting the Indian market before global expansion[7] - Launched six advanced stereoscopic sensor kits (ScaleCam™ Vision, ScaleCam™ Thermal, QuadSight®) to support developers in industrial automation and autonomous mobility[7] - Subsidiary Eye-Net Mobile signed an agreement with Software République to integrate and test its V2X collision prevention solution in Bordeaux, France, with potential for wider European deployment[9] - Entered multi-phase collaboration agreements with GINT Ltd. and KONEC for autonomous tractors, and with Bumhan Motors Ltd. for autonomous electric buses in South Korea[9] Detailed Financial Results This section presents a detailed breakdown of Foresight's financial performance for the fourth quarter and full year 2024, including key balance sheet metrics Fourth Quarter 2024 Financial Results In Q4 2024, revenues decreased by 26.8% year-over-year to $101,000. The company successfully reduced its GAAP net loss to $3.1 million from $3.55 million in Q4 2023, driven by a 10.5% decrease in R&D expenses and positive net financial income, which offset modest increases in S&M and G&A expenses Q4 2024 vs. Q4 2023 Financial Performance (in thousands USD) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $101 | $138 | -26.8% | | R&D Expenses, net | $2,176 | $2,430 | -10.5% | | S&M Expenses | $306 | $290 | +5.5% | | G&A Expenses | $770 | $675 | +14.1% | | GAAP Net Loss | $3,100 | $3,551 | -12.7% | | Non-GAAP Net Loss | $2,847 | $3,293 | -13.5% | - Q4 2024 revenue was primarily generated from a POC project with KONEC ($33,000) and a commercialization agreement with Elbit Systems Land Ltd. ($32,000)[8] - Net financial income was $75,000 in Q4 2024, a significant improvement from net financial expenses of $255,000 in Q4 2023, mainly due to a smaller loss from the revaluation of the Rail Vision investment[12] Full Year 2024 Financial Results For the full year 2024, revenues were $436,000, a 12.3% decrease from 2023. However, the company demonstrated strong cost control, with significant reductions in R&D (-21.1%), S&M (-42.2%), and G&A (-14.2%) expenses. This, combined with a shift to net financial income of $1.5 million (from a $2.1 million expense in 2023), led to a 39.5% reduction in the GAAP net loss to $11.1 million Full Year 2024 vs. 2023 Financial Performance (in thousands USD) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $436 | $497 | -12.3% | | R&D Expenses, net | $9,143 | $11,587 | -21.1% | | S&M Expenses | $1,120 | $1,939 | -42.2% | | G&A Expenses | $2,677 | $3,119 | -14.2% | | GAAP Net Loss | $11,138 | $18,410 | -39.5% | | Non-GAAP Net Loss | $10,350 | $16,969 | -39.0% | - FY 2024 revenue sources included agreements with Elbit ($162k), KONEC ($55k), SoftBank Corp. ($74k), and two Japanese vehicle manufacturers ($83k)[11] - Net financial income for FY 2024 was $1.54 million, compared to net financial expenses of $2.12 million in FY 2023, primarily driven by a gain from the sale of Rail Vision shares[15] Balance Sheet Highlights As of December 31, 2024, Foresight's cash, cash equivalents, and restricted cash stood at $7.2 million, down from $15.7 million at the end of 2023. Total equity decreased by 58.1% to $6.7 million, primarily due to the net loss for the period, which was partially offset by share-based payments and the issuance of new shares Balance Sheet Comparison (as of Dec 31, in millions USD) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Cash, Cash Equivalents & Restricted Cash | $7.2 | $15.7 | -54.1% | | GAAP Total Equity | $6.7 | $16.0 | -58.1% | Consolidated Financial Statements This section provides the complete consolidated financial statements, including balance sheets, statements of comprehensive loss, cash flows, and reconciliation of GAAP to non-GAAP results Condensed Consolidated Balance Sheets This section provides the company's condensed consolidated balance sheets as of December 31, 2024, compared to December 31, 2023, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets (U.S. dollars in thousands) | | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | ASSETS | | | | Total current assets | $7,846 | $17,047 | | Total non-current assets | $1,899 | $2,263 | | Total assets | $9,745 | $19,310 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Total current liabilities | $1,743 | $2,152 | | Total non-current liabilities | $1,272 | $1,163 | | Total liabilities | $3,015 | $3,315 | | Total equity | $6,730 | $15,995 | | Total liabilities and shareholders' equity | $9,745 | $19,310 | Condensed Consolidated Statements of Comprehensive Loss This section presents the company's condensed consolidated statements of comprehensive loss for the fourth quarter and full year ended December 31, 2024, with comparative figures for the same periods in 2023 Condensed Consolidated Statements of Comprehensive Loss (U.S. dollars in thousands) | | Year ended Dec 31, | | Three months ended Dec 31, | | | :--- | :--- | :--- | :--- | :--- | | | 2024 | 2023 | 2024 | 2023 | | Revenues | 436 | 497 | 101 | 138 | | Gross profit | 264 | 354 | 77 | 99 | | Operating loss | (12,676) | (16,291) | (3,175) | (3,296) | | Financing income (expenses), net | 1,538 | (2,119) | 75 | (255) | | Net loss | (11,138) | (18,410) | (3,100) | (3,551) | Condensed Consolidated Statements of Cash Flow This section details the company's cash flows from operating, investing, and financing activities for the fourth quarter and full year ended December 31, 2024, compared to the same periods in 2023. It shows a year-end cash and restricted cash balance of $7.2 million Condensed Consolidated Statements of Cash Flow (U.S. dollars in thousands) | | Year ended Dec 31, | | Three months ended Dec 31, | | | :--- | :--- | :--- | :--- | :--- | | | 2024 | 2023 | 2024 | 2023 | | Net cash used in operating activities | (11,055) | (14,926) | (2,620) | (3,596) | | Net cash provided by (used in) investing activities | 1,785 | 7,092 | (7) | (10) | | Net cash provided by financing activities | 903 | 4,181 | 857 | 4,048 | | Increase (decrease) in cash and restricted cash | (8,552) | (3,541) | (1,756) | 1,536 | | Cash and restricted cash at end of period | 7,182 | 15,734 | 7,182 | 15,734 | Reconciliation of GAAP to Non-GAAP Results This section provides a reconciliation of GAAP to non-GAAP financial measures for the fourth quarter and full year of 2024 and 2023. The primary adjustment is the exclusion of non-cash share-based compensation expenses to offer investors a different perspective on the company's ongoing operational performance GAAP to Non-GAAP Net Loss Reconciliation (U.S. dollars in thousands) | | Year ended Dec 31, | | Three months ended Dec 31, | | | :--- | :--- | :--- | :--- | :--- | | | 2024 | 2023 | 2024 | 2023 | | GAAP net loss | (11,138) | (18,410) | (3,100) | (3,551) | | Share-based compensation expenses | 788 | 1,441 | 253 | 258 | | Non-GAAP net loss | (10,350) | (16,969) | (2,847) | (3,293) | - The company's management uses non-GAAP financial measures, which exclude stock-based compensation, to evaluate and operate the business internally and believes this information is useful for investors[17]