DGAP-News: Foresight Autonomous Holdings Ltd. Foresight Announces Second Quarter 2021 Financial Results 2021-08-20 / 22:05 The issuer is solely responsible for the content of this announcement.

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Foresight Autonomous Holdings Ltd., an innovator in automotive vision systems (Nasdaq and TASE: FRSX), today reported financial results for the second quarter of 2021. Foresight ended the second quarter of 2021 with USD52.3 million in cash, cash equivalent and short-term deposits.

The Company reported U.S. generally accepted accounting principles (GAAP) net loss of USD3.2 million and non-GAAP net loss of USD2.7 million for the second quarter of 2021, compared to GAAP net loss of USD4.4 million and non-GAAP net loss of USD3.2 million for the first quarter of 2021, reflecting a decrease of USD1.2 million and USD0.5 million, respectively, resulting primarily from financial income accrued during the second quarter of 2021.

'Foresight continues to achieve remarkable progress as it expands into new markets and geographic areas,' said Haim Siboni, Foresight's Chief Executive Officer. 'We believe that our prototype sale to a leading agriculture and construction machinery manufacturer demonstrates the potential of our QuadSight^(R) vision system in the agricultural equipment market, while our coming proof of concept with the American subsidiary of a leading European passenger car manufacturer shows the continued appeal of our technology to the automotive industry.'

'The second quarter also saw important milestones for our wholly-owned subsidiary, Eye-Net Mobile, as well as our affiliate, Rail Vision Ltd. ('Rail Vision'). Eye-Net Mobile pilot projects expansion in Japan and Europe, and the announcements that Rail Vision has filed a draft prospectus for an initial public offering on the Tel Aviv Stock Exchange, reflect the ambitious goals and long-term growth anticipated by both companies.'

Second Quarter 2021 Financial Results . Research and development (R&D) expenses, net for the three months ended June 30, 2021 were USD2,436,000,compared to USD1,876,000 in the three months ended June 30, 2020. The increase is attributed mainly to an increase inpayroll and related expenses and an increase in subcontracted services. . General and administrative (G&A) expenses for the three months ended June 30, 2021 were USD812,000,compared to USD634,000 in the three months ended June 30, 2020. The increase is attributed primarily to an increasein share-based compensation expenses to employees and service providers. . GAAP net loss for the three months ended June 30, 2021 was USD3,163,000, or USD0.01 per ordinary share,compared to a GAAP net loss of USD3,331,000, or USD0.02 per ordinary share, in the three months ended June 30, 2020.The decrease in the net loss is attributed mainly to the increase in financing income, net, offset mainly by anincrease in payroll and related expenses. . Non-GAAP net loss for the three months ended June 30, 2021 was USD2,661,000, or USD0.01 per ordinary share,compared to a non-GAAP net loss of USD3,136,000, or USD0.02 per ordinary share, in the same quarter last year. Areconciliation between GAAP net loss and non-GAAP net loss is provided in the financial statements that are part ofthis release.

Balance Sheet Highlights . Cash and cash equivalents and short-term deposits totaled USD52.3 million as of June 30, 2021, compared toUSD43.9 million as of December 31, 2020. . GAAP shareholders' equity totaled USD55.3 million as of June 30, 2021, compared to USD47 million as ofDecember 31, 2020. The increase is attributed to the receipt of proceeds from the securities offerings completedduring the first quarter of 2021 and option exercises, offset by the net loss for the same period.

Second Quarter Corporate Highlights: . Foresight Chosen for Joint POC Project by a Leading European Auto Manufacturer: Foresight was chosen bythe American subsidiary of a leading European passenger car manufacturer to provide a proof-of-concept (POC) totest Foresight's stereoscopic technology. Following successful completion of the project, the European passengercar manufacturer may consider integrating Foresight's solutions into its vehicle safety applications. . Foresight Receives Prototype Order of QuadSight Vision System from Leading Agricultural EquipmentManufacturer: In June, Foresight announced the sale of a prototype of its QuadSight four-camera vision system to aleading global manufacturer of agricultural and construction equipment. The manufacturer will evaluate theQuadSight system for use in agricultural machinery, marking the Company's first sale to the agricultural equipmentmarket. Foresight's advanced thermal stereoscopic capabilities are designed to offer added value to precisionagriculture and automated navigation. . Rail Vision Files Draft Prospectus for Initial Public Offering: In May, Rail Vision, an affiliate ofForesight, filed a public draft prospectus for an initial public offering and registration for trade of itssecurities on the Tel Aviv Stock Exchange. Rail Vision intends to simultaneously test the prevailing conditions onthe Israeli capital markets towards a potential public offering. The filing of a final prospectus is subject to apermit from the Israeli Securities Authority and the approval of the Tel Aviv Stock Exchange. . Eye-Net Mobile to Pursue Potential Nasdaq Listing: Foresight's wholly owned subsidiary, Eye-Net MobileLtd. ('Eye-Net Mobile'), announced in May that it intends to pursue a potential listing on the Nasdaq Stock Market.The strategic decision was made following a resolution of the board of directors of both Foresight and Eye-NetMobile. . Eye-Net Partners with WebSIA for Exclusive Distribution in Brazil: In April, Foresight announced that itswholly owned subsidiary, Eye-Net Mobile, signed a distribution agreement with WebSIA Soluções Disruptivas,Inteligências Associadas, Tecnologia e Serviços Ltda. ('WebSIA'), a Brazilian distributor, developer and integratorfocused on cutting-edge technologies. WebSIA will exclusively promote the Eye-Net Protect accident preventionsolution and serve as Eye-Net's distributor in the city of Sao Paulo, Brazil's most densely populated andtechnologically advanced region. . Rail Vision Signs Agreement to Supply Prototype to Rio Tinto Railway Network: In May, Foresight'saffiliate Rail Vision announced an agreement to supply equipment, services and personnel to the Australian railcompany Rio Tinto Railway Network. According to the agreement, Hitachi Rail STS, the project integrator, willsupply Rio Tinto with a prototype of Rail Vision's Collision Avoidance System to conduct demonstration andfeasibility testing for a proof-of-concept project. Successful demonstrations may lead to Rail Vision outfittingRio Tinto's entire fleet of approximately 220 vehicles with its systems.

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 exclude the effect of stock-based compensation expenses. 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 sensor systems for the automotive industry. Through the company's wholly owned subsidiaries, Foresight Automotive Ltd. and Eye-Net Mobile Ltd., Foresight develops both 'in-line-of-sight' vision systems and 'beyond-line-of-sight' cellular-based applications. Foresight's vision sensor is a four-camera system based on 3D video analysis, advanced algorithms for image processing, and sensor fusion. Eye-Net Mobile's cellular-based application is a V2X (vehicle-to-everything) accident prevention solution based on real-time spatial analysis of clients' movement.

The company's systems are designed to improve driving safety by enabling highly accurate and reliable threat detection while ensuring the lowest rates of false alerts. Foresight is targeting the semi-autonomous and autonomous vehicle markets and predicts that its systems will revolutionize automotive safety by providing an automotive-grade, cost-effective platform and advanced technology.

For more information about Foresight and its wholly owned subsidiary, Foresight Automotive, visit www.foresightauto.com, follow @ForesightAuto1 on Twitter, or join Foresight Automotive on LinkedIn.

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August 20, 2021 16:05 ET (20:05 GMT)