Rail Vision Announces Third Quarter 2023 Financial Results
RA’ANANA,
“We reached another significant milestone in the third quarter with the successful completion of a pilot program with a leading US-based rail and leasing services company. This customer purchased one of our Switch Yard Systems this year and has been impressed with the results on extensive testing. We are now discussing plans with this customer to implement our technology on additional locomotives beginning as soon as Q4 2023. This is a testament to the reliability and effectiveness of our solutions in improving safety and efficiency in rail operations,” continued Hania.
“In addition, we recently expanded our global footprint with a
“As we move forward, we remain steadfast in our mission: to leverage advanced technology to make railways safer and more efficient. This belief drives every decision we make at
Third Quarter 2023 & Recent Highlights
- In
October 2023 , the Company received a purchase order in the amount of approximately$500,000 for a Main Line ADAS system and related services from a leading Latin American (LATAM) mining company. This Main Line ADAS system is expected to be delivered to the new customer during the fourth quarter of 2023. The LATAM mining company will benefit from Rail Vision’s robust Main Line ADAS system which uses high-end electro-optical sensors, machine learning algorithms, and edge computing capabilities to improve the safety of train operations by providing operators with accurate and timely information to make informed decisions.Rail Vision will also provide supervision, guidance, and training services as part of the purchase order. This comprehensive approach ensures that the Main Line ADAS system is seamlessly integrated into the customer's existing infrastructure and operations, minimizing disruption and downtime during implementation. - A trial was completed for a leading US-based rail and leasing services company that purchased a Rail Vision Switch Yard System during 2023. This new customer, which offers a suite of rail-centric services, including in-plant rail switching and material handling services, is expected to begin implementing Rail Vision’s technology on additional locomotives during Q4 2023.
- On
November 15, 2023 , the Company effected a reverse share split of its ordinary shares at the ratio of 1-for-8, such that each eight (8) ordinary shares, par valueNIS 0.01 per share, were consolidated into one (1) ordinary share, par valueNIS 0.08 . All references to share and per share amounts referred to herein reflect the reverse share split.
Third Quarter 2023 Financial Results
- Revenues were
$142,000 for the three months endedSeptember 30, 2023 , compared to$202,000 for the three months endedSeptember 30, 2022 . Q3 2023 revenues were primarily driven by a US-based rail and leasing services company that purchased a Rail Vision Switch Yard System during Q1 2023 and completed its evaluation during Q3 2023.
- Research and development (“R&D”) expenses, net for the three months ended
September 30, 2023 , were$1,852,000 , compared to R&D expenses of$1,651,000 in the three months endedSeptember 30, 2022 . The increase in R&D expenses was primarily attributable to an increase in R&D employees and an increase in R&D equipment purchases.
- General and administrative expenses for the three months ended
September 30, 2023 , were$1,050,000 , similar to the general and administrative expenses in the three months endedSeptember 30, 2022 . - Net loss for the three months ended
September 30, 2023 , was$2,788,000 or$0.93 per ordinary share, compared to a net loss of$2,769,000 , or$1.39 per ordinary share, in the three months endedSeptember 30, 2022 . - As of
September 30, 2023 , cash, cash equivalents and restricted cash were$5.1 million .
About
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses its commitment to delivering innovative, safety-enhancing technology to the global rail industry and remaining steadfast in its mission to leverage advanced technology to make railways safer and more efficient. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the
Contacts
Chief Executive Officer
15 Ha'Tidhar St
Ra'anana, 4366517 Israel
Telephone: +972- 9-957-7706
Investor Relations:
407-491-4498
RVSN@redchip.com
| INTERIM CONDENSED BALANCE SHEETS |
| ( |
| Unaudited | Audited | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | ||||||
| Restricted cash | 209 | 222 | ||||
| Trade accounts receivable | 28 | 115 | ||||
| Other current assets | 301 | 225 | ||||
| Inventory | 952 | -- | ||||
| Total current assets | 6,415 | 8,832 | ||||
| Non-current Assets: | ||||||
| Operating lease - right of use asset | 967 | 1,151 | ||||
| Fixed assets, net | 468 | 449 | ||||
| Total Non-current assets | 1,435 | 1,600 | ||||
| Total assets | 7,850 | 10,432 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Trade payables | 291 | 56 | ||||
| Current operating lease liability | 269 | 281 | ||||
| Other accounts payable | 1,488 | 1,032 | ||||
| Total current liabilities | 2,049 | 1,369 | ||||
| Non-current operating lease liability | 542 | 798 | ||||
| Total liabilities | 2,598 | 2,167 | ||||
| Shareholders' equity | ||||||
| Ordinary shares, |
68 | 46 | ||||
| Additional paid in capital | 68,629 | 63,033 | ||||
| Accumulated deficit | (63,438) | (54,814) | ||||
| Total shareholders' equity | 5,259 | 8,265 | ||||
| Total liabilities and shareholders' equity | 7,850 | 10,432 | ||||
(*) On
| UNAUDITED INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE LOSS |
| ( |
| Nine months ended | Three months ended | |||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Revenues | 142 | 421 | 142 | 202 | ||||
| Cost of revenues | (61) | (661) | (61) | (303) | ||||
| Gross Profit (Loss) | 81 | (240) | 81 | (101) | ||||
| Research and development expenses, net | (5,534) | (4,757) | (1,852) | (1,651) | ||||
| General and administrative | (3,353) | (3,178) | (1,050) | (1,050) | ||||
| Operating loss | (8,806) | (8,175) | (2,821) | (2,802) | ||||
| Financing income, net | 183 | 158 | 33 | 33 | ||||
| Net loss for the period | (8,623) | (8,017) | (2,788) | (2,769) | ||||
| Basic and diluted loss per share (*) | (3.52) | (4.72) | (0.93) | (1.39) | ||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per ordinary share (*) | 2,448,280 | 1,699,013 | 2,998,278 | 1,987,005 | ||||
(*) On
| UNAUDITED INTERIM CONDENSED STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY |
| ( |
| Convertible Preferred A Shares | Ordinary Shares | ||||||||||||||
Number of shares |
USD | Number of shares (*) |
USD | Additional paid in capital | Accumulated Deficit | Total shareholders' equity | |||||||||
| Balance as of |
-- | -- | 1,987,005 | 46 | 63,033 | (54,814) | 8,265 | ||||||||
| Issuance of shares as a result of exercise of warrants | -- | -- | 24,431 | 1 | (1) | -- | -- | ||||||||
| Issuance of units of ordinary shares and warrants, net of issuance expenses (**) | -- | -- | 986,842 | 21 | 5,374 | -- | 5,395 | ||||||||
| Share-based payment | -- | -- | -- | -- | 222 | -- | 222 | ||||||||
| Loss for the period | -- | -- | -- | -- | -- | (8,623) | (8,623) | ||||||||
| Balance as of |
-- | -- | 2,998,278 | 68 | 68,628 | (63,437) | 5,259 | ||||||||
(*) On
(**) Issuance expenses in the amount of approximately
| UNAUDITED INTERIM CONDENSED STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (Cont.) |
| ( |
| Convertible Preferred A Shares | Ordinary Shares | ||||||||||||||
Number of shares |
USD | Number of shares (*) |
USD | Additional paid in capital | Accumulated Deficit | Total shareholders' equity | |||||||||
| Balance as of |
51,282 | 9,965 | 1,144,666 | 25 | 35,987 | (44,339) | (8,327) | ||||||||
| Issuance of convertible preferred shares | 10,256 | 2,000 | -- | -- | -- | -- | -- | ||||||||
| Conversion of convertible preferred shares into ordinary shares upon completion of initial public offering | (61,538) | (11,965) | 338,459 | 8 | 11,957 | -- | 11,965 | ||||||||
| Issuance of units of ordinary shares and warrants in connection with the initial public offering, net of issuance expenses (***) | -- | -- | 473,405 | 12 | 13,575 | -- | 13,587 | ||||||||
| Conversion of convertible debt into ordinary shares upon completion of initial public offering | -- | -- | 30,266 | 1 | 999 | -- | 1,000 | ||||||||
| Issuance of ordinary shares as a result of exercise of options | -- | -- | 209 | (**) | 10 | -- | 10 | ||||||||
| Share-based payment | -- | -- | -- | -- | 380 | -- | 380 | ||||||||
| Loss for the period | -- | -- | -- | -- | -- | (8,017) | (8,017) | ||||||||
| Balance as of |
-- | -- | 1,987,005 | 46 | 62,908 | (52,356) | 10,598 | ||||||||
(*) On
(**) Represents an amount less than
(***) Issuance costs in the amount of approximately
| UNAUDITED STATEMENTS OF CASH FLOWS |
| ( |
| Nine months ended |
Three months ended |
|||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Cash flows from operating activities | ||||||||
| Net loss for the period | (8,623) | (8,017) | (2,788) | (2,769) | ||||
| Adjustments to reconcile loss to net cash used in operating activities: | ||||||||
| Depreciation | 125 | 115 | 45 | 39 | ||||
| Share-based payment | 222 | 380 | 57 | 91 | ||||
| Change in operating lease liability | (84) | (200) | (45) | (41) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in other current assets | 11 | (43) | 91 | 262 | ||||
| Increase in Inventory | (952) | -- | (461) | -- | ||||
| Increase (decrease) in trade accounts payable | 236 | (16) | 69 | (6) | ||||
| Increase (decrease) in other accounts payable | 456 | (51) | (168) | (53) | ||||
| Net cash used in operating activities | (8,609) | (7,832) | (3,200) | (2,477) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of fixed assets | (144) | (15) | (7) | (15) | ||||
| Net cash used in investing activities | (144) | (15) | (7) | (15) | ||||
| Cash flows from financing activities: | ||||||||
| Issuance of Preferred Shares | -- | 2,000 | -- | -- | ||||
| Proceeds from convertible debt | -- | 1,000 | -- | -- | ||||
| Proceeds from exercise of options | -- | 10 | -- | -- | ||||
| Issuance of ordinary shares and warrants, net of issuance expenses | 5,395 | 13,643 | -- | |||||
| Issuance expenses | -- | -- | (65 | ) | -- | |||
| Net cash provided by financing activities | 5,395 | 16,653 | (65 | ) | -- | |||
| Increase (Decrease) in cash, cash equivalents and restricted cash | (3,358 | ) | 8,806 | (3,272 | ) | (2,492 | ) | |
| Cash, cash equivalents and restricted cash at the beginning of the period | 8,492 | 1,849 | 8,406 | 13,147 | ||||
| Cash, cash equivalents and restricted cash at the end of the period | 5,134 | 10,655 | 5,134 | 10,655 | ||||
| Non Cash Activities: | ||||||||
| Conversion of preferred shares | -- | 11,965 | -- | -- | ||||
| Conversion of a convertible debt | -- | 1,000 | -- | -- | ||||
| Issuance expenses | -- | 56 | -- | -- | ||||
Source: Rail Vision Ltd.