Foresight Autonomous Holdings Ltd ADR (NASDAQ:FRSX) was able to achieve a number of milestones during Q317. These included tests with two major Chinese auto manufacturers, demonstration of a proof of concept for FRSX’s road traffic preventions system using thermal and visible light cameras and a successful system demonstration of its all-weather ADAS system for use in electric vehicles with Uniti Sweden. With higher R&D spend, cash burn rose slightly to $1.5m in the third quarter, up from a quarterly average of $1.2m in H1. The group nevertheless ended the quarter with $3.2m higher net cash balances helped by $5.0m cash inflow from warrant conversions during the period.
Mostly non-cash swings
FRSX reported a normalised Q3 net loss of $2.1m principally due to a boost to spending on R&D to $1.0m, which, stripping out employee share option payment (ESOP) outlays, almost equalled the entire H1 spend of $1.1m. The group nevertheless reported a net profit of $4.5m in Q317 after a $7.0m boost from the revaluation of warrant liabilities. We have maintained our FY17 normalised loss forecast of $5.7m, but on the back of this revaluation of warrant liabilities and an increase in our ESOP payment forecasts of $0.9m, we have reduced our reported net loss forecast by $6.1m to $24.3m.
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