Letter to Shareholders
The past year was unprecedented in its impact on business operations, the economy, and our daily lives. As the world begins to turn the corner on the COVID-19 pandemic with active vaccination campaigns and ongoing economic support initiatives, I would like to issue an update on Foresight’s current position and long-term outlook. The company’s stable business development performance throughout 2020 was remarkable given the circumstances, and several key business milestones have set a course for what I believe will be a successful coming year.
Over the course of 2020, Foresight made inroads in important markets and verticals with prototype sales of its QuadSight® vision system. In February 2020, the company received a prototype order from a multi-billion-dollar Japanese vehicle manufacturer. Three months later, the company sold a QuadSight prototype to a Tier One European supplier of commercial vehicles for the autonomous truck market. In July 2020, Foresight received two orders for product development and customization from leading Israeli defense company Elbit Systems Ltd, which signed a first commercial agreement with Foresight in July 2019 for exclusive marketing of its proprietary image processing software for the defense, paramilitary and homeland security markets. Finally, also in July 2020, Foresight received a prototype order from a multi-billion-dollar global Chinese technology company. I believe that these sales milestones demonstrate the diverse market recognition of our technology, as well as its myriad potential applications across geographies and industries.
Foresight achieved a noteworthy milestone in April 2020, signing an agreement with FLIR Systems, the world’s leading manufacturer of thermal imaging cameras and imaging sensors. We believe that the integration of FLIR’s thermal cameras into our QuadSight® vision system increases the performance of our groundbreaking four-camera solution. Our collaboration with FLIR enables us to introduce our solutions to new audiences and sales regions, building off of FLIR’s sterling reputation.
Foresight’s prototype sales success took place in parallel to several noteworthy technological developments. The year began with the announcement of significant new features for the QuadSight vision system, including automatic calibration, multispectral sensor fusion, and 3D point cloud. These features provide noticeable improvements to the system’s ability to accurately measure the size, location and distance of objects, even in challenging weather and lighting conditions. In September 2020, the Company announced the development of a commercial version of its automatic calibration software, enabling it to be offered as a standalone product.
We believe that multiple key partnerships announced in the fourth quarter of 2020 indicate that the future is bright for Foresight and its technology. In early November 2020, the Company completed integration of its QuadSight software on NVIDIA platforms, enabling it to be used for shuttles, agriculture and other heavy equipment. Foresight also announced its participation in a European project for the development of autonomous heavy-duty vehicles as part of the All-Weather Autonomous Real logistics operations and Demonstrations (AWARD) consortium. The AWARD consortium received a funding grant of nearly 20 million Euro from the European Commission. In December 2020, Foresight announced its participation in the University of Michigan’s TechLab at Mcity 2021 startup cohort, where the company will further develop its automotive vision system.
During the past year, Foresight strengthened its intellectual property with the approval of its “running vehicle alerting system and method” patent received from both the U.S. Patent and Trademark Office and the Chinese Patent Office. The Company also submitted three patent applications pertaining to multiple-sensor camera systems, including its automatic calibration software.
The company solidified its financial position throughout 2020 with multiple successful capital raises. Foresight announced three capital raises in the second quarter of 2020, raising a total of $14.4 million, while the company announced a registered direct offering in late December totaling $26 million. Foresight entered 2021 with a robust balance sheet and strong business fundamentals, putting the company in an advantageous position for global expansion and growth.
In spite of the pandemic, 2020 was a noteworthy year for both Eye-Net Mobile, Foresight’s wholly owned subsidiary, and Rail Vision, Foresight’s affiliate (Foresight owns approximately 19% of Rail Vision’s outstanding shares). Eye-Net Mobile announced the launch of multiple pilot programs with leading Japanese multinational companies, pursuing the company’s strategy of achieving a critical mass of users in a single geographic area to demonstrate the technology’s potential for preventing accidents and saving lives.
In April 2020, Rail Vision received its first commercial order, valued at approximately 500,000 Euro, for a prototype of its shunting yard system from a leading European train operator. In addition, Rail Vision signed a commercial agreement in September 2020 with an affiliate of Knorr-Bremse AG (KBX.DE), where Knorr-Bremse will supply Rail Vision’s Assisted Remote Shunting (ARS) systems to a leading European train operator for a total potential value of 2.3 million Euro, with an additional option for 3.5 million Euro. Furthermore, in December 2020, Rail Vision received another order for two samples from Knorr-Bremse, thereby entering the multi-billion-dollar electrically powered light rail vehicle market.
I appreciate your continued trust and support as we work to make the future of transportation safer and more efficient. I am grateful to our outstanding and dedicated employees, and I am confident that we will continue to deliver successful milestones as we emerge from these challenging times stronger than ever.
Founder & CEO, Foresight Autonomous Holdings
This letter to shareholders contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal 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, Foresight is using forward-looking statements in this letter to shareholders when it discusses the belief that several key business milestones in 2020 have set a course for a successful coming year, its 2020 sales milestones demonstrate the diverse market recognition of its technology, as well as the technology’s myriad potential applications across geographies and industries, its collaboration with FLIR enables it to introduce its solutions to new audiences and sales regions, building off of FLIR’s sterling reputation, that the multiple key partnerships announced in the fourth quarter of 2020 indicate that the future is bright for Foresight and its technology and that it entered 2021 with a robust balance sheet and strong business fundamentals, putting it in an advantageous position for global expansion and growth. Because such statements deal with future events and are based on Foresight’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Foresight could differ materially from those described in or implied by the statements in this letter to shareholders. The forward-looking statements contained or implied in this letter to shareholders are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Foresight’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 31, 2020, and in any subsequent filings with the SEC. Except as otherwise required by law, Foresight undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this letter to shareholders.