Rail Vision Announces First Half 2024 Financial Results
RA’ANANA,
“We continued to strengthen our foundation during 2024, completing a series of financing transactions that raised gross proceeds of over
First Half 2024 & Recent Highlights:
Cash position
Executing on sales:
- Received $1 million order out of a contract valued at up to $5 million in potential follow-on orders with leading US-based rail and leasing services company: In April,
Rail Vision received an initial purchase order amounting to approximately $1 million as part of a contract valued at up to $5 million in potential follow-on orders with a leading US-based rail and leasing services company that the Company initially announced in January 2024. - In
June 2024 Rail Vision received a follow-on order from the same customer, in the amount of approximately$200,000 , which is in addition to the original agreement and refers to additional services requested by the customer.
Engaging with US and global industry leaders:
- Rail Vision Successfully Installed its AI-Driven System for Class 1 US Operator: In June 2024,
Rail Vision completed the successful installation of its AI-driven Shunting Yard product for a Class 1 freight rail US-based company. The North American Class 1 rail company will use the system on its locomotives for evaluation in different scenarios related to safety and efficiency. This installation follows the purchase order, which was announced in March 2024. - Rail Vision Installed its AI-Driven Product with
Loram , a Top US-Based Railway Track Maintenance Supplier: In June 2024, Rail Vision completed the successful delivery and installation of its AI-driven Shunting Yard product to Loram, a leading US-based provider of railway track maintenance equipment and services. This installation fulfills the purchase order that was announced in April 2024. - Rail Vision Successfully Installed its AI-based Product at a
Leading Global Mining Company : InJune 2024 ,Rail Vision successfully installed its product at one of Latin America’s leading mining companies. Following a successful delivery, Rail Vision’s team arrived at the mining company’s installation site, where both sides installed the AI-based MainLine product andRail Vision led training sessions for the mining company’s team. - Announced first-ever commercial installation of its AI-driven systems in a national railways line: In
February 2024 , Rail Vision announced the first ever commercial installation of its AI-driven Main Line Systems in a national railways line, marking a significant milestone in the Company’s journey towards revolutionizing railway safety and efficiency. A successful evaluation process resulted in the purchase of ten Rail Vision Main Line Systems for $1.4 million by Israel Railways.
Strengthening IP protection:
In
First Half 2024 Financial Results
- Revenues were $761,000 for the six months ended
June 30, 2024 , comprised from the mining company that purchased a Rail Vision Main Line System, first installation of Rail Vision’s Main Line Systems inIsrael Railways and the successful delivery and installation of Rail Vision’s Shunting Yard product to Loram. - Research and development (“R&D”) expenses for the six months ended
June 30, 2024 , were$2,458,000 , compared to R&D expenses of$3,682,000 in the six months endedJune 30, 2023 . The decrease in R&D expenses was primarily attributable to a decrease in R&D salaries due to a reduction in workforce, including a reduction in the Company employee base by 12 R&D employees and R&D equipment purchases. - General and administrative expenses for the six months ended
June 30, 2024 , were$2,116,000 , compared to$2,303,000 in the six months endedJune 30, 2023 . The decrease is primarily attributed to a decrease in salaries and other administrative and operational costs, as part of the process of reducing costs as mentioned above. - As a result of the foregoing, the Company’s operating loss for the six months ended
June 30, 2024 , was$4,185,000 compared to an operating loss of$5,985,000 for the six months endedJune 30, 2023 . - Financial expenses amounted to
$1,304,000 for the six months endedJune 30, 2024 , a decrease of$1,454,000 , compared to$150,000 financial income for the six months endedJune 30, 2023 . The decrease was primarily attributable to the amortization of discount related to a convertible loan credit facility that the Company entered into inJanuary 2024 . - GAAP net loss for the six months ended
June 30, 2024 , was$24,324,000 , or$1.99 per ordinary share, compared to a GAAP net loss of$5,835,000 , or$2.69 per ordinary share, in the six months endedJune 30, 2023 . - Non-GAAP net loss for the six months ended
June 30, 2024 , was$5,394,000 or$0.44 per ordinary share, compared to a non-GAAP net loss of$5,671,000 , or$2.62 per ordinary share, in the six months endedJune 30, 2023 .
| Six months ended |
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| ( |
2024 | 2023 | ||||||
| GAAP Results | ||||||||
| Net loss | (24,324 | ) | (5,835 | ) | ||||
| Basic and diluted loss per share | (1.99 | ) | (2.69 | ) | ||||
| Non-GAAP Results | ||||||||
| Net loss | (5,394 | ) | (5,671 | ) | ||||
| Basic and diluted loss per share | (0.44 | ) | (2.62 | ) | ||||
A reconciliation between GAAP operating results and non-GAAP operating results is provided in the financial statements that are part of this release. Non-GAAP results exclude stock-based compensation expenses and revaluation of derivative warrant liabilities.
- As of
June 30, 2024 , cash and cash equivalents were$9.7 million , compared to$3.1 million as ofDecember 31, 2023 . The increase compared toDecember 31, 2023 , is mainly due to the proceeds received from a private placement and credit facility and from warrants exercised by shareholders that occurred in the first half of 2024, totaling$11.5 million gross ($11.3 net proceeds), less cash used during the first half of 2024.
Use of Non-GAAP Financial Results
In addition to disclosing financial results calculated in accordance with
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 excellence and innovation, as it continues to implement solutions that meet and exceed customer expectations. 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:
investors@railvision.io
INTERIM CONDENSED BALANCE SHEETS ( |
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2024 |
2023 |
|||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,691 | $ | 3,066 | ||||
| Restricted cash | 215 | 223 | ||||||
| Accounts receivable | 135 | -- | ||||||
| Inventories | 968 | 977 | ||||||
| Other current assets | 354 | 336 | ||||||
| Total current assets | 11,363 | 4,602 | ||||||
| Non-current Assets: | ||||||||
| Operating lease - right of use asset | 738 | 889 | ||||||
| Fixed assets, net | 351 | 430 | ||||||
| 1,089 | 1,319 | |||||||
| Total assets | 12,452 | 5,921 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Trade accounts payables | 88 | 185 | ||||||
| Current operating lease liability | 282 | 285 | ||||||
| Other accounts payable | 1,823 | 2,140 | ||||||
| Total current liabilities | 2,193 | 2,610 | ||||||
| Non-current operating lease liability | 363 | 524 | ||||||
| Total liabilities | 2,556 | 3,134 | ||||||
| Shareholders’ equity | ||||||||
| Ordinary shares | -- | 68 | ||||||
| Additional paid in capital | 100,182 | 68,681 | ||||||
| Accumulated deficit | (90,286 | ) | (65,962 | ) | ||||
| Total shareholders’ equity | 9,896 | 2,787 | ||||||
| Total liabilities and shareholders’ equity | 12,452 | 5,921 | ||||||
UNAUDITED INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE LOSS ( |
||||||||
| Six months ended | ||||||||
| 2024 | 2023 | |||||||
| Revenues | $ | 761 | $ | -- | ||||
| Cost of revenues | (372 | ) | -- | |||||
| Gross profit | 389 | -- | ||||||
| Research and development expenses | (2,458 | ) | (3,682 | ) | ||||
| General and administrative expenses | (2,116 | ) | (2,303 | ) | ||||
| Operating loss | (4,185 | ) | (5,985 | ) | ||||
| Financial (expenses) income: | ||||||||
| Revaluation of derivative warrant liabilities | (18,835 | ) | -- | |||||
| Other financing income (expenses), net | (1,304 | ) | 150 | |||||
| Net loss for the period | (24,324 | ) | (5,835 | ) | ||||
| Basic and diluted loss per share | (1.99 | ) | (2.69 | ) | ||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per ordinary share | 12,193,918 | 2,167,170 | ||||||
UNAUDITED INTERIM CONDENSED STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY ( |
|||||||||||||||
| Ordinary Shares | Additional | Total | |||||||||||||
| Number of shares |
USD | paid in capital |
Accumulated Deficit |
shareholders’ equity |
|||||||||||
| Balance as of |
2,998,278 | 68 | 68,681 | (65,962 | ) | 2,787 | |||||||||
| Cancelation of the par value of ordinary shares | -- | (68 | ) | 68 | -- | -- | |||||||||
| Issuance of units of ordinary shares and pre-funded warrants, net of issuance costs (*) | 3,554,200 | (**) | -- | 1,404 | -- | 1,404 | |||||||||
| Exercise of warrants to ordinary shares, net of issuance costs (***) | 12,258,487 | -- | 23,791 | -- | 23,791 | ||||||||||
| Classification of warrant liabilities to equity warrants | -- | -- | 6,143 | -- | 6,143 | ||||||||||
| Share-based payment | -- | -- | 95 | -- | 95 | ||||||||||
| Net loss for the period | -- | -- | -- | (24,324 | ) | (24,324 | ) | ||||||||
| Balance as of |
18,810,965 | -- | 100,182 | (90,286 | ) | 9,896 | |||||||||
| (*) | Issuance costs in the amount of approximately |
| (**) | Including 1,902,742 Pre-funded Warrants which were exercised to 1,902,742 ordinary shares during February and |
| (***) | Issuance costs in the amount of approximately |
UNAUDITED INTERIM CONDENSED STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (Cont.) ( |
|||||||||||||||
| Ordinary Shares | Additional | Total | |||||||||||||
| Number of shares |
USD | paid in capital |
Accumulated Deficit |
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 costs (*) | 986,842 | 21 | 5,374 | -- | 5,395 | ||||||||||
| Share-based payment | -- | -- | 165 | -- | 165 | ||||||||||
| Net loss for the period | -- | -- | -- | (5,835 | ) | (5,835 | ) | ||||||||
| Balance as of |
2,998,278 | 68 | 68,571 | (60,649 | ) | 7,990 | |||||||||
| (*) | Issuance expenses in the amount of approximately |
INTERIM CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) ( |
||||||||
| Six months ended |
||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss for the period | $ | (24,324 | ) | $ | (5,835 | ) | ||
| Adjustments to reconcile loss to net cash used in operating activities: | ||||||||
| Depreciation | 85 | 80 | ||||||
| Share-based payment | 95 | 165 | ||||||
| Change in operating lease liability | (13 | ) | (39 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 56 | -- | ||||||
| Revaluation of derivative warrant liabilities | 18,835 | -- | ||||||
| Amortization of a discount related to a convertible loan credit facility | 1,229 | -- | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in accounts receivables | (135 | ) | -- | |||||
| Increase in other current assets | (18 | ) | (80 | ) | ||||
| Decrease (increase) in Inventories | 9 | (491 | ) | |||||
| Increase (decrease) in trade accounts payable | (97 | ) | 167 | |||||
| Increase (decrease) in other accounts payable | (317 | ) | 624 | |||||
| Net cash used in operating activities | (4,595 | ) | (5,409 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of fixed assets | (6 | ) | (137 | ) | ||||
| Net cash used in investing activities | (6 | ) | (137 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from a convertible loan credit facility and issuance of warrants | 1,500 | -- | ||||||
| Payments on convertible loan credit facility | (1,000 | ) | -- | |||||
| Proceeds from exercise of warrants, net of issuance expenses | 7,813 | -- | ||||||
| Proceeds from issuance of shares and warrants, net of issuance expenses | 2,961 | 5,460 | ||||||
| Net cash provided by financing activities | 11,274 | 5,460 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (56 | ) | -- | |||||
| Increase (Decrease) in cash, cash equivalents and restricted cash | 6,617 | (86 | ) | |||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 3,289 | 8,492 | ||||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 9,906 | $ | 8,406 | ||||
| Non Cash Activities: | ||||||||
| Conversion of a convertible loan credit facility to ordinary shares | 500 | -- | ||||||
| Issuance expenses recorded in other accounts payables | -- | 65 | ||||||
RECONCILIATION OF GAAP TO NON-GAAP Financial Measures ( |
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| Six months ended |
||||||||
| 2024 | 2023 | |||||||
| GAAP operating loss | (4,185 | ) | (5,985 | ) | ||||
| Stock-based compensation in research and development expenses | 18 | 28 | ||||||
| Stock-based compensation in general and administrative expenses | 77 | 136 | ||||||
| Non-GAAP operating loss | (4,090 | ) | (5,821 | ) | ||||
| GAAP Revaluation of derivative warrant liability expenses | (18,835 | ) | -- | |||||
| Revaluation of derivative warrant liabilities | 18,835 | -- | ||||||
| Non-GAAP Revaluation of derivative warrant liabilities expenses | -- | -- | ||||||
| GAAP net loss | (24,324 | ) | (5,835 | ) | ||||
| Stock-based compensation expenses | 95 | 164 | ||||||
| Revaluation of derivative warrant liability expenses | 18,835 | -- | ||||||
| Non-GAAP net loss | (5,394 | ) | (5,671 | ) | ||||
| GAAP Basic and diluted loss per share | (1.99 | ) | (2.69 | ) | ||||
| Non-GAAP Basic and diluted loss per share | (0.44 | ) | (2.62 | ) | ||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per ordinary share | 12,193,918 | 2,167,170 | ||||||
Source: Rail Vision Ltd.