Foresight Autonomous Holdings Ltd. — 2022 Form 20-F Summary
Business context and reporting period
This is an annual report for the fiscal year ended December 31, 2022, filed March 30, 2023—not a standalone fourth-quarter report. Foresight is an Israeli development-stage technology company developing 3D vision systems and cellular-based collision-warning applications through its subsidiaries. Its products target automotive, defense, agriculture, heavy equipment and urban mobility markets. Financial statements are prepared under U.S. GAAP.
Key financial metrics
Amounts below are in U.S. dollars; financial statement amounts are in thousands unless stated otherwise.
| Metric | 2022 | 2021 |
|---|---|---|
| Revenue | $550 | $120 |
| Cost of revenue | $252 | $67 |
| Gross profit / gross margin | $298 / approximately 54% | $53 / approximately 44% |
| Research and development expense, net | $11,534 | $10,170 |
| Sales and marketing expense | $2,230 | $1,848 |
| General and administrative expense | $3,989 | $3,980 |
| Operating loss | $17,455 | $15,945 |
| Financial expense (income), net | $4,221 | ($909) |
| Net loss | $21,676 | $15,036 |
| Basic and diluted loss per ADS | $0.35 | $0.25 |
| Net cash used in operating activities | $17,057 | $12,125 |
At December 31, 2022, cash and cash equivalents were $19.2 million, restricted cash $0.1 million, and short-term deposits $7.2 million, totaling approximately $26.5 million. Current assets were $27.3 million against current liabilities of $2.6 million. Total liabilities were $4.1 million, including $2.0 million of operating lease liabilities; the filing does not report borrowings or other financial debt. Total assets were $32.9 million and shareholders’ equity was $28.8 million. The company reported 322,979,556 ordinary shares outstanding at year-end.
Material changes versus 2021
- Revenue increased by $430,000, while gross profit rose from $53,000 to $298,000; revenue remained small relative to operating expenses.
- Operating loss widened by $1.5 million, or 9.5%. R&D expense increased 13.4% and sales and marketing expense increased 20.7%; G&A was broadly flat.
- Net loss increased by $6.6 million. Financial results shifted from $909,000 net financial income to $4.2 million net financial expense, principally reflecting a $2.2 million fair-value revaluation loss on the Rail Vision investment and $2.2 million of foreign-exchange losses.
- Operating cash use increased by $4.9 million. Investing activities provided $9.0 million, largely due to movements in short-term deposits; financing activities provided no cash in 2022, compared with $14.2 million in 2021.
- The company established its Chinese subsidiary, Foresight Changzhou, and completed a restructuring that made Eye-Net Mobile a direct wholly owned subsidiary.
Outlook, commentary and risks
- Management said year-end cash, cash equivalents and short-term deposits were expected to fund current operations through the second quarter of 2024. The company expects continuing losses and may need additional capital; availability and terms of financing are uncertain.
- The November 2022 SUNWAY agreement covers development and supply of systems and could generate up to $51 million over four years, depending on demand. SUNWAY planned to begin commercialization in the second half of 2023. The amount is potential contract value, not reported revenue or guaranteed sales.
- Management’s 2023 priorities included expanding paid proof-of-concept and co-development projects and initiating sales through SUNWAY for airport ground vehicles. The filing provides no quantified revenue or earnings guidance.
- The company remains dependent on successful product development, customer evaluations, regulatory and quality approvals, and conversion of projects into commercial production. It warns of competition, long sales cycles, reliance on third-party suppliers, product liability exposure and the need for additional funding.
- Other material risks include Nasdaq’s $1 minimum bid-price requirement: the company had until May 22, 2023 to regain compliance; foreign-exchange exposure, particularly to the NIS; Israeli political and security conditions; and restrictions attached to Israel Innovation Authority grants, including royalties and limits on transferring supported technology or manufacturing abroad.
- In March 2023, the company disclosed approximately $0.6 million held at Silicon Valley Bank. Following U.S. authorities’ intervention, it said it recovered and moved those funds and did not consider the exposure material to its financial condition.
- The audited financial statements received an unqualified audit opinion. Management reported effective disclosure controls and internal control over financial reporting as of year-end; no auditor attestation on internal controls was included because the company is an emerging growth company. The filing reports no material legal proceedings and no cash dividends paid or expected in the foreseeable future.
Important facts for investors to verify
- Confirm the timing and terms of any new financing, cash use since year-end, and whether the stated runway remains current.
- Track actual revenue, customer orders and cash collections—especially SUNWAY commercialization and whether its conditional potential value converts into sales.
- Check subsequent Nasdaq listing status and any share consolidation or other action taken to regain minimum bid-price compliance.
- Review the Rail Vision investment’s subsequent fair value and the effect of foreign-exchange movements on results and cash.
- Assess dilution risk from equity financing and outstanding share options; year-end shares outstanding were approximately 323.0 million.
- Verify progress on customer proof-of-concept projects, automotive qualification requirements, and IIA approvals or royalties if technology or manufacturing is transferred outside Israel.