Foresight(FRSX) - 2025 Q2 - Quarterly Report

Interim Condensed Consolidated Balance Sheets As of June 30, 2025, total assets, liabilities, and equity decreased, while issued shares significantly increased | Metric | June 30, 2025 (Unaudited, in thousands) | December 31, 2024 (Audited, in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | ASSETS | | | | Cash and cash equivalents | $6,342 | $7,082 | | Total current assets | $6,881 | $7,846 | | Total non-current assets | $1,668 | $1,899 | | Total assets | $8,549 | $9,745 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Total current liabilities | $1,710 | $1,743 | | Total liabilities | $2,924 | $3,015 | | Total equity | $5,625 | $6,730 | | Total liabilities and shareholders' equity | $8,549 | $9,745 | - Issued and outstanding shares increased from 508,710,696 as of December 31, 2024, to 712,203,276 as of June 30, 2025[5] Interim Condensed Consolidated Statements of Comprehensive Loss Net loss increased to $6,095 thousand for the six months ended June 30, 2025, primarily due to higher operating expenses | Metric (Six months ended June 30) | 2025 (Unaudited) | 2024 (Unaudited) | Change (YoY) | | :-------------------------------- | :--------------- | :--------------- | :----------- | | Revenues | $240 | $224 | +$16 | | Cost of revenues | $(84) | $(72) | -$(12) | | Gross profit | $156 | $152 | +$4 | | Operating expenses: | | | | | Research and development, net | $(4,426) | $(4,525) | +$99 | | Sales and marketing | $(629) | $(576) | -$(53) | | General and administrative | $(1,296) | $(1,161) | -$(135) | | Operating loss | $(6,195) | $(6,110) | -$(85) | | Financing income, net | $100 | $1,402 | -$(1,302) | | Net loss | $(6,095) | $(4,708) | -$(1,387) | | Basic and diluted net loss per share | $(0.01) | $(0.01) | $0.00 | - Weighted average number of shares outstanding used in computing basic and diluted net loss per share increased from 459,778,056 in 2024 to 574,685,928 in 2025 for the six-month period[8] Interim Condensed Consolidated Statements of Changes in Shareholders' Equity Total shareholders' equity decreased to $5,625 thousand by June 30, 2025, primarily due to net loss | Metric | Balance as of Dec 31, 2024 | Changes (Jan 1 - Jun 30, 2025) | Balance as of Jun 30, 2025 (Unaudited) | | :-------------------------------- | :------------------------- | :----------------------------- | :------------------------------------- | | Ordinary Shares (Number) | 508,710,696 | +203,492,580 | 712,203,276 | | Additional paid-in-capital | $137,094 | +$5,961 | $142,984 | | Accumulated deficit | $(131,028) | -$(6,025) | $(137,053) | | Total Foresight Autonomous Holdings Ltd. shareholders' equity | $6,066 | -$(135) | $5,931 | | Non-controlling interest | $664 | -$(970) | $(306) | | Total equity | $6,730 | -$(1,105) | $5,625 | - Issuance of ordinary shares, net of costs, contributed $1,870 thousand in 2025[11] - Issuance of warrants, net of costs, contributed $2,130 thousand in 2025[11] Interim Condensed Consolidated Statements of Cash Flows Operating cash outflow of $5,373 thousand was partially offset by $4,482 thousand from financing activities | Cash Flow Activity (Six months ended June 30) | 2025 (Unaudited, in thousands) | 2024 (Unaudited, in thousands) | Change (YoY, in thousands) | | :------------------------------------------ | :--------------- | :--------------- | :----------- | | Net loss for the period | $(6,095) | $(4,708) | -$(1,387) | | Total net cash used in operating activities | $(5,373) | $(5,125) | -$(248) | | Total net cash provided (used) in investing activities | $(4) | $1,815 | -$(1,819) | | Total net cash provided by (used in) financing activities | $4,482 | $(98) | +$4,580 | | Decrease in cash, cash equivalents and restricted cash | $(790) | $(3,670) | +$2,880 | | Cash, cash equivalents and restricted cash at the end of the period | $6,392 | $12,064 | -$(5,672) | - Cash provided by financing activities in 2025 was primarily from the issuance of ordinary shares and warrants, net of issuance expenses, totaling $4,482 thousand[15] - Investing activities in 2024 included $1,847 thousand from sales of marketable securities, which was not present in 2025[15] Notes to Interim Condensed Consolidated Financial Statements NOTE 1 - GENERAL Foresight Autonomous Holdings Ltd. develops vision software and pre-collision alerts, facing 'going concern' doubts from operating losses A. Reporting Entity - Foresight Autonomous Holdings Ltd. is an Israeli technology company developing smart multi-spectral vision software solutions for automotive, defense, autonomous vehicles, heavy industrial equipment, and drones[20] - The company also develops a cellular-based solution suite for real-time pre-collision alerts to enhance road safety through its subsidiary, Eye-Net Mobile Ltd., incorporating AI technology[20] - The company's ADSs are listed on The Nasdaq Capital Market, with a ratio of 30 Ordinary Shares to 1 ADS[21] B. Going Concern - The Company has not generated significant revenues and has incurred substantial operating losses, raising substantial doubts about its ability to continue as a going concern[23][24] - Management plans to fund operations through current financial resources, product sales, and additional capital raises, but there is no assurance such funding will be available or sufficient[23][24] NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Unaudited interim financial statements follow U.S. GAAP, using consistent policies and management estimates A. Unaudited Interim Financial Statements - The accompanying unaudited interim condensed financial statements are prepared in accordance with U.S. GAAP for interim financial information and do not include all information and footnotes required for complete financial statements[25] - The results for the six and three months ended June 30, 2025, are not necessarily indicative of the results expected for the full year ending December 31, 2025[26] B. Significant Accounting Policies - The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements[28] C. Use of estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts, and actual results could differ from these estimates[29] NOTE 3 - SEGMENT REPORTING The company operates as a single automotive vision segment, with diverse revenues from key regions and limited customers A. Revenues by geographic region | Region | Six months ended June 30, 2025 (Unaudited, in thousands) | Six months ended June 30, 2024 (Unaudited, in thousands) | | :----- | :----------------------------------------- | :----------------------------------------- | | Israel | $104 | $104 | | Japan | $75 | $115 | | USA | $32 | $- | | Other | $29 | $5 | | Total | $240 | $224 | - Revenues from Japan decreased by $40 thousand, while USA and Other regions showed new or increased revenue contributions in 2025[31] B. Revenues by main customers | Customer | Six months ended June 30, 2025 (Unaudited, in thousands) | Six months ended June 30, 2024 (Unaudited, in thousands) | | :--------- | :----------------------------------------- | :----------------------------------------- | | Customer A | $104 | $104 | | Customer B | $- | $72 | | Customer C | $- | $44 | | Customer D | $40 | $- | | Total | $144 | $220 | - Customer B and C, which contributed $72 thousand and $44 thousand respectively in 2024, did not contribute revenue in 2025. Customer D emerged as a new significant customer in 2025 with $40 thousand in revenue[31] NOTE 4 - MATERIAL EVENTS DURING THE REPORTING PERIOD Foresight increased ADS offering capacity and raised $1,870 thousand net from sales, also diluting Eye-Net Mobile Ltd. ownership to 94.2% via a $2.75 million equity investment - On February 21, 2025, the Company increased the maximum aggregate offering price of ADSs under its June 2024 Sales Agreement from $7,000,000 to $11,400,000[32] - As of June 30, 2025, the Company raised a net amount of $1,870 thousand through the sale of 2,216,369 ADSs (66,491,070 Ordinary Shares) under the June 2024 Sales Agreement[33] - On March 7, 2025, Eye-Net Mobile Ltd. received an equity investment resulting in gross proceeds of $2.75 million, diluting the Company's ownership from 100% to 94.2%. This transaction included the issuance of Series A Warrants (exercised for 4,315,507 ADSs by June 30, 2025) and Series B Warrants (89,836,950 warrants issued)[33][35] NOTE 5 - SUBSEQUENT EVENTS Post-period, Foresight raised $745 thousand net from ADS sales and approved a $5 million joint drone development project, 50% funded by I4F - From July 1, 2025, until the report date, the Company raised an additional net $745 thousand through the sale of 1,612,981 ADSs under the June 2024 Sales Agreement[36] - On August 4, 2025, a $5 million joint development and commercialization project with Big Bang Boom Solutions Pvt. Ltd. (an Indian drone manufacturer) was approved under the India-Israel Industrial R&D and Technological Innovation Fund (I4F)[36] - The project, scheduled to commence in September 2025 and span 24 months, aims to develop autonomous industrial inspection drones equipped with advanced sensors and AI-based navigation capabilities, with I4F funding 50% of the budget[36]