PETAH TIKVAH, Israel, Aug. 27, 2024 (GLOBE NEWSWIRE) -- SaverOne 2014 Ltd. (Nasdaq: SVRE, TASE: SVRE), a company developing and deploying transportation safety and advanced driver-assistance systems (ADAS) technologies and solutions, today presented its results for the first half ended June 30, 2024 and shared recent business updates.
Recent Highlights
- Significant reduction in first half operating expenses of NIS 2.3 million ($612 thousand), reducing operating loss and cash burn;
- 4,800 systems have been ordered by customers as of August 26, 2024, of which approximately 3,750 have been installed;
- OEM Agreement Signed with Volvo Group to install SaverOne Systems during the manufacturing process in Volvo Buses in Mexico;
- OEM Agreement Signed with IVECO to develop a software-as-a-service solution to prevent driver distraction from cellphone use, with first IVECO vehicles with integrated SaverOne software solution expected to be delivered in early 2025;
- Announced spinoff to advance development on the VRU Sensor Solution with estimated annual market potential of $1.5 billion by 2035;
- Purchase order from IVECO for a proof-of-concept (POC) for the VRU sensor for their Advanced Driver-Assistance System (ADAS);
- Launched a number of pilot projects for fleets in the United States, Latin America and Europe.
Financial Highlights
- Revenues of NIS 483 thousand (~$129 thousand) in the first half of 2024 versus NIS 1.5 million (~$395 thousand) in the first half of 2023;
- Operating expenses reduced to NIS 15.8 million ($4.2 million) in the first half of 2024 versus NIS 18.1 million ($4.9 million) in the first half of 2023;
- Net loss reduced to NIS 16.3 million (~$4.4 million) in the first half of 2024 versus NIS 17.8 million in the first half of 2023 (~$4.8 million);
- June 30, 2024 cash and cash equivalents of NIS 11.3 million (~$3.0 million).
Management Comment
Commented Mr. Ori Gilboa, CEO of SaverOne, "2024 has been challenging for SaverOne due to longer sales cycles in our home market of Israel. On the positive side, we are witnessing a broadening of our activities internationally through our partners, OEMs and new regional distributors. We are working to expand our global footprint with key existing customers by penetrating their international subsidiaries. We have also initiated new pilot projects in the United States, Europe and Latin America and have also secured initial commercial orders. International expansion requires significant effort, and in 2024, we have made substantial progress in establishing SaverOne as a global business. We remain optimistic and expect a renewed growth trend in the coming months."
Continued Mr. Gilboa, "During the quarter, we announced our plans for a spinoff company focused on advancing our VRU (Vulnerable Road User) sensor solution, which represents a significant opportunity for us. This decision was based on a comprehensive analysis by a world leading consultancy firm, which estimated the addressable annual market potential for our VRU product at $1.5 billion by 2035. Additionally, we received a new purchase order for a proof-of-concept (POC) from IVECO to integrate our VRU sensor into their Advanced Driver Assistance System (ADAS), further enhancing vehicle safety. We believe that our VRU presents significant value for SaverOne long-term."
Recent Developments in the First Half of 2024
- SaverOne to Install its System Across Entire Strauss Group Fleet. Strauss Group is one of the largest food manufacturers in Israel with a fleet of over 80 food delivery trucks. The new order covering the entire Strauss delivery fleet, follows a successful trial on 17 Strauss trucks, in which Strauss' management noted a statistically significant reduction in accident rates in the trucks that had the SaverOne system installed.
- SaverOne Signed Contract to Install its Systems on 300 Buses of Leading Israeli Transportation Company Bon Tour.Bon Tour is one of the leading private transit companies in Israel, operating hundreds of buses and providing transportation solutions and travel services to some of the largest companies in the country.
- Leading Israeli Transportation Company Egged Tours Selects SaverOne's Driver Distraction Solution System for a contract to install 300 SaverOne Systems on all of its buses. Egged Tours, operating the largest tour bus fleet in Israel, is a subsidiary of Egged Transportation, Israel's largest bus company, with over 3,000 buses operating nationally with a vast network of urban and intercity routes.
- SaverOne Granted New US Patent Strengthening its IP portfolio Supporting its Transportation Safety Solution. This marks SaverOne's 23rd patent and describes SaverOne's advanced algorithms and its selective blocking mechanism to prevent the driver from accessing distracting phone functionalities while the vehicle is in motion.
- SaverOne Launches New Pilot Project in the United States with Motor Supply, Inc., a trucking company based in Columbia, South Carolina. SaverOne's System was installed on a portion of Motor Supply's fleet of sixteen trucks. The pilot is expected to run over a period of 12 months and, if successful, could potentially expand to the rest of the fleet and any future trucks that Motor Supply may operate.
- GB Tours to Expand its Installation of the SaverOne System Across its Full Fleet of Public Transportation and Tour Buses. GB Tours is a leading Israel-based public transportation company that operates public transportation lines as well as tour buses with a fleet of about one hundred buses. This order for 77 buses follows the conclusion of a successful pilot of the SaverOne System on 20 of GB Tours' buses.
- OEM Agreement Signed to Install the SaverOne Safety Solution in Volvo Buses in Mexico. SaverOne's Safety Solution will be installed in new Volvo buses that are manufactured for the Mexican market. The agreement provides Volvo with two years of exclusivity in the OEM market in Mexico. SaverOne will also provide twelve months of service and support for Volvo bus customers. After that period, Volvo bus customers will continue to receive SaverOne's comprehensive service package for an on-going monthly fee.
- SaverOne Signs Milestone OEM Agreement with IVECO to develop a solution to prevent driver distraction from cellphone use. The first IVECO vehicles with the integrated SaverOne software solution are expected to be delivered this year. IVECO and SaverOne will also collaborate within their service centers to offer comprehensive support for drivers that use this technology. SaverOne's solution will be provided to IVECO's customers under a software-as-a-service model.
- SaverOne Expands its Collaboration with IVECO with its Vulnerable Road User Solution. Receives New Purchase Order for a vulnerable road user (VRU) proof-of-concept (POC). The POC will present SaverOne's radio frequency (RF)-based solution that could be integrated in the vehicle Advanced Driver Assistance System (ADAS) to enhance vehicle safety. This solution is expected to be installed in one of IVECO's vehicles in Europe in early 2025.
- SaverOne Granted New European Patent encompassing SaverOne's innovative system and groundbreaking methods that employ machine learning and channel fingerprinting techniques.
- SaverOne: External Analysis Projects Annual $1.5 Billion Market Potential by 2035 for its RF-ADAS Technology.Announced spinoff company dedicated to advancing VRU sensor solution following the conclusion of a comprehensive project completed by a leading global consultancy firm which analyzed the addressable market potential, as well as the initial interest from OEMs. The consultancy firm's analysis projects a market potential annually of $1.5 billion by 2035.
- Global Food Manufacturer Expands Installation of SaverOne Protection System. Follow-on order for 50 SaverOne Systems by the Israeli subsidiary of a leading global food manufacturer, for installation in their employee vehicles. This new order follows several successful trial phases and a prior order in November 2022, during which 80 employee vehicles in Israel were equipped with the SaverOne system.
- Global Food Manufacturer Adopts SaverOne System for Supply Chain Truck Protection. Following the successful completion of a pilot of SaverOne Systems' on the customer's trucks, an integral part of their supply chain in Israel, the customer ordered 46 SaverOne Systems. The customer is the Israeli subsidiary of one of the world's top food manufacturers.
- Egged Tours Broaden Installation of SaverOne System Across its Entire Bus Fleet. The follow-on project will install the SaverOne system on an additional 60 buses and cover Egged Tours' entire fleet at its central hub of 130 vehicles. Egged Tours is a subsidiary of Egged Transportation, Israel's largest public bus fleet with over 3,000 buses, representing significant broader sales potential for SaverOne.
Financial Summary for the First Half of 2024
Revenues was NIS 483 thousand (~$129 thousand) in the first half of 2024 compared to NIS 1.5 million (~$395 thousand) for the first half of 2023. This decrease was mainly due to the longer decision-making processes by current and prospective customers in the home market of Israel.
Gross profit was NIS 85 thousand (~$23 thousand), representing gross margin of 18% in the first half of 2024 compared to NIS 467 thousand (~$124 thousand), representing gross margin of 32%, in the first half of 2023.
Research and development expenses, net were NIS 8.9 million (~$2.4 million) in the first half of 2024 compared to NIS 12.2 million (~$3.3 million) in the first half of 2023. This decrease is primarily attributable to our efforts to streamline and optimize our research and development expenses.
Selling and marketing expenses were NIS 2.4 million (~$640 thousand) in the first half of 2024 compared to NIS 1.4 million (~$385 thousand) in the first half of 2023. The increase is attributable mainly to higher marketing expenses in light of the Company's efforts in expanding the business to international markets.
General and administrative expenses were NIS 4.5 million (~$1.2 million) in the first half of 2024, compared to NIS 4.5 million (~$1.2 million) in the first half of 2023.
Operating loss was NIS 15.7 million (~$4.2 million) in the first half of 2024, reduced in comparison to NIS 17.6 million (~$4.7 million) in the first half of 2023, primarily as a result of efforts taken by the company to reduce expenses and ongoing cash burn.
Net loss in the first half of 2024 was NIS 16.3 million (~$4.4 million), reduced in comparison to NIS 17.8 million (~$4.8 million) for the first half of 2023.
Cash and cash equivalents and short-term bank deposits as of June 30, 2024, amounted to NIS 11.3 million (~$3.0 million), compared with NIS 17.1 million (~$4.8 million) as of December 31, 2023. In July 2024, the Company secured an equity line amounting to $15 million.
The Company's financial results are presented in accordance with IFRS as issued by the IASB.
*Unless otherwise noted, for the purposes of the presentation of financial data, all conversions from New Israeli Shekels (NIS) to U.S. dollars and from U.S. dollars to NIS were made at the rate of NIS 3.759 to $1.00, based on the representative exchange rate reported by the Bank of Israel on June 30, 2024.
About SaverOne's Systems
SaverOne's system is installed in vehicles to provide a solution to the problem of driver distraction, as a result of drivers using distracting applications on the mobile phone while driving, in a way that endangers their safety, the safety of their passengers and others on the road. This phenomenon is considered one of the main causes of road accidents in the world. According to the US National Highway Traffic Safety Administration, the annual cost of road accidents just in the United States, stands at about $870 billion each year, excluding the costs of serious injury or death, with a quarter of those accidents estimated to be related to the use of the mobile phones while driving. SaverOne's technology specifically recognizes the driver area in the vehicle and prevents the driver from accessing distracting applications such as messaging, while allowing others (e.g. navigation, calls), without user intervention or consent, creating a safer driving environment.
SaverOne's primary target markets include commercial and private vehicle fleets, including public transportation and buses, that are interested in reducing potential damages and significant cost, vehicle manufacturers that are interested in integrating safety solutions to their vehicles, and insurance and leasing companies. SaverOne initially addresses car fleets with focus on the Israeli, European and US markets, as well as other markets around the world. SaverOne believes that ultimately increased focus on monitoring and prevention of cellular distraction systems in vehicles, in particular driven by upcoming expected EU regulation, will likely have a dramatic positive impact on the demand for its systems in the future.
The Company's strategy is to provide its technology for installation to customers in the aftermarket as well as address OEM vehicle manufacturers, to install the Company's protection technologies during the vehicle manufacturing process.
SaverOne has developed a Vulnerable Road User (VRU) solution with the potential to significantly enhance the performance of Advanced Driver Assistance System (ADAS) sensors through a superior ability to deal with NLoS (non-line of sight) situations as well as adverse weather conditions and low-visibility. SaverOne's technology identifies the exact location and direction of movement of the VRU via their RF footprint from their cellphone signal. This safety solution enables the avoidance of a collision by early detection VRUs such as pedestrians or cyclists in the vicinity of the vehicle.
About SaverOne
SaverOne is a technology company engaged in the design, development and commercialization of OEM and aftermarket solutions and technologies, to lower the risk of, and prevent, vehicle accidents.
SaverOne's initial line of products is a suite of solutions that saves lives by preventing car accidents resulting from distraction from the use of mobile phones while driving. SaverOne is also developing a sensor system for early location and direction detection under all visibility conditions of vulnerable road users (VRU) through their cellphone footprint.
Learn more at https://saver.one/
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements regarding SaverOne's strategic and business plans, technology, relationships, objectives and expectations for its business, growth, the impact of trends on and interest in its business, intellectual property or product and its future results, operations and financial performance and condition and may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on SaverOne's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Many factors could cause SaverOne's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to: the ability of SaverOne's technology to substantially improve the safety of drivers; market acceptance of SaverOne's protection solutions; SaverOne's planned level of revenues and capital expenditures; SaverOne's ability to market and sell its products; SaverOne's plans to continue to invest in research and development to develop technology for both existing and new products; SaverOne's intention to advance its technologies and commercialization efforts; SaverOne's intention to use local distributors in each country or region that it will conduct business to distribute our products or technology; SaverOne's plan to seek patent, trademark and other intellectual property rights for our products and technologies in the United States and internationally, as well as its ability to maintain and protect the validity of its currently held intellectual property rights; SaverOne's expectations regarding future changes in its cost of revenues and our operating expenses; interpretations of current laws and the passage of future laws; acceptance of SaverOne's business model by investors; the ability to correctly identify and enter new markets including expanding our global footprint with key existing customers by penetrating their international subsidiaries; our expectation regarding renewed growth trend; the impact of competition and new technologies; general market, political and economic conditions in the countries in which SaverOne operates; projected capital expenditures and liquidity; SaverOne's intention to retain key employees, and our belief that we maintain good relations with all of its employees; any resurgence of the COVID-19 pandemic and its impact on SaverOne's business and industry; security, political and economic instability in the Middle East that could harm SaverOne's business, including due to the current war between Israel and Hamas; and other risks and uncertainties, including, but not limited to, the risks detailed in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") on March 25, 2024 and in subsequent filings with the SEC. Forward-looking statements contained in this announcement are made as of this date, and SaverOne undertakes no duty to update such information except as required under applicable law.
| Investor Relations Contact: Ehud Helft +1 212 378 8040 saverone@ekgir.com |
| CONDENSED STATEMENTS OF FINANCIAL POSITION (New Israeli Shekels in thousands) | |||||||
| As of June 30, | As of December 31, | ||||||
| 2024 | 2023 | 2023 | |||||
| Unaudited | Audited | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 11,302 | 14,773 | 17,112 | ||||
| Short-term bank deposits | - | 3,805 | - | ||||
| Trade receivables, net | 1,290 | 1,860 | 1,054 | ||||
| Other current assets | 1,247 | 921 | 1,509 | ||||
| Inventory | 5,760 | 3,451 | 4,534 | ||||
| Total current assets | 19,599 | 24,810 | 24,209 | ||||
| Non-current assets | |||||||
| Trade receivables, net | 871 | - | 1,051 | ||||
| Property and equipment, net | 211 | 252 | 248 | ||||
| Restricted deposits | 216 | 206 | 211 | ||||
| Right of use asset, net | 1,142 | 354 | 1,271 | ||||
| Total non-current assets | 2,440 | 812 | 2,781 | ||||
| Total assets | 22,039 | 25,622 | 26,990 | ||||
| Current liabilities | |||||||
| Promissory note, net | 3,912 | 7,097 | 7,139 | ||||
| Current maturities of leasing liabilities | 469 | 429 | 352 | ||||
| Trade payables | 3,695 | 2,896 | 4,303 | ||||
| Other current liabilities | 2,037 | 2,456 | 2,042 | ||||
| Derivative warrants liability | 57 | 1,819 | 274 | ||||
| Liability in respect of government grants | 650 | 401 | 694 | ||||
| Total current liabilities | 10,820 | 15,098 | 14,804 | ||||
| Non-current liabilities | |||||||
| Liability in respect of government grants | 801 | 970 | 634 | ||||
| Leasing liability, net current | 796 | - | 980 | ||||
| Total non-current liabilities | 1,597 | 970 | 1,614 | ||||
| Shareholders' equity | |||||||
| Share capital and premium | 150,353 | 118,559 | 135,243 | ||||
| Capital reserve in respect of share-based payment | 11,163 | 10,523 | 10,939 | ||||
| Accumulated deficit | (151,894 | ) | (119,528 | ) | (135,610 | ) | |
| Total shareholders' equity | 9,622 | 9,554 | 10,572 | ||||
| Total liabilities and shareholders' equity | 22,039 | 25,622 | 26,990 | ||||
| CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (New Israeli Shekels in thousands, except per share and share data) | |||||||
| Six Months Ended June 30, | Year Ended December 31, | ||||||
| 2024 | 2023 | 2023 | |||||
| Unaudited | Audited | ||||||
| Revenues | 483 | 1,475 | 2,720 | ||||
| Cost of revenues | (398 | ) | (1,008 | ) | (1,968 | ) | |
| Gross profit | 85 | 467 | 752 | ||||
| Research and development expenses, net | (8,897 | ) | (12,188 | ) | (22,861 | ) | |
| Selling and marketing expenses | (2,406 | ) | (1,449 | ) | (3,787 | ) | |
| General and administrative expenses | (4,460 | ) | (4,468 | ) | (8,327 | ) | |
| Operating loss | (15,678 | ) | (17,638 | ) | (34,223 | ) | |
| Financing expenses | (1,242 | ) | (800 | ) | (1,219 | ) | |
| Financing income | 636 | 685 | 1,607 | ||||
| Financing income (expenses), net | (606 | ) | (115 | ) | 388 | ||
| Loss for the period | (16,284 | ) | (17,753 | ) | (33,835 | ) | |
| Comprehensive loss for the period | (16,284 | ) | (17,753 | ) | (33,835 | ) | |
| Basic and diluted loss per share | (0.21 | ) | (0.64 | ) | (1.08 | ) | |
| Weighted average of number of shares used to calculate the basic and diluted loss per share | 79,171,297 | 27,839,012 | 31,380,359 | ||||
| CONDENSED STATEMENTS OF CASH FLOWS (New Israeli Shekels in thousands, except per share and share data) | |||||||
| Six Months Ended June 30, | Year Ended December 31, | ||||||
| 2024 | 2023 | 2023 | |||||
| Unaudited | Audited | ||||||
| Cash flow from operating activity | |||||||
| Comprehensive loss for the period | (16,284 | ) | (17,753 | ) | (33,835 | ) | |
| Adjustments required to present cash flows from operating activities (Appendix A) | (31 | ) | (214 | ) | (1,185 | ) | |
| Net cash used in operating activities | (16,315 | ) | (17,967 | ) | (35,020 | ) | |
| Cash flows from investment activity | |||||||
| Change in restricted deposits | (5 | ) | (5 | ) | - | ||
| Changes in short-term deposits | - | 6,265 | 10,070 | ||||
| Purchase of property and equipment | (10 | ) | (75 | ) | (128 | ) | |
| Net cash provided by (used in) investment activity | (15 | ) | 6,185 | 9,942 | |||
| Cash flows from financing activity | |||||||
| Net proceeds received from issuance of unit includes put options, promissory note and ADS as Commitment Shares in transaction of equity line granted | - | 7,170 | 7,170 | ||||
| Proceeds received from issuance of ADSs resulted from partial exercise of Commitment Amount under equity line | 6,307 | 188 | 9,259 | ||||
| Repayment of first promissory note (principal and interest) | - | - | (754 | ) | |||
| Net proceeds received from issuance of second promissory note | - | - | 3,597 | ||||
| Net proceeds received from issuance of ADSs as part of shelf prospectus through public offering transaction | 4,222 | - | 3,685 | ||||
| Repayment of principal in respect of lease liability | (117 | ) | (234 | ) | (467 | ) | |
| Net cash provided by financing activity | 10,412 | 7,124 | 22,490 | ||||
| Change in balance of cash and cash equivalents | (5,918 | ) | (4,658 | ) | (2,588 | ) | |
| Exchange differences on cash and cash equivalents | 108 | 191 | 460 | ||||
| Balance of cash and cash equivalents, beginning of period | 17,112 | 19,240 | 19,240 | ||||
| Balance of cash and cash equivalents, end of period | 11,302 | 14,773 | 17,112 | ||||
| CONDENSED STATEMENTS OF CASH FLOWS (New Israeli Shekels in thousands, except per share and share data) | |||||||
| Six Months Ended June 30, | Year Ended December 31, | ||||||
| 2024 | 2023 | 2023 | |||||
| Unaudited | Audited | ||||||
| Appendix A - Adjustments required to present cash flows from operating activities | |||||||
| Income and expenses not involving cash flows | |||||||
| Depreciation | 47 | 41 | 98 | ||||
| Amortization of right for use asset | 129 | 213 | 425 | ||||
| Interest expenses related to leasing liabilities | 50 | 15 | 22 | ||||
| Share-based payment | 388 | 478 | 978 | ||||
| Revaluation of derivative warrant liability | (217 | ) | 668 | (877 | ) | ||
| Recognition of discount, interest and exchange differences expenses related to Promissory Note | 494 | 14 | 526 | ||||
| Finance expenses incurred from partial exercise of Commitment Amount under equity line | 696 | - | 531 | ||||
| Exchange differences on cash and cash equivalent | (108 | ) | (191 | ) | (470 | ) | |
| Changes in liability in respect of government grants | 123 | 117 | 74 | ||||
| 1,602 | 1,355 | 1,307 | |||||
| Changes in asset and liability items | |||||||
| Decrease (increase) in other current assets | 262 | 95 | (493 | ) | |||
| Increase in trade receivables | (56 | ) | (763 | ) | (1,008 | ) | |
| Increase in inventory | (1,226 | ) | (1,425 | ) | (2,508 | ) | |
| Increase (decrease) in trade payables | (608 | ) | 940 | 2,347 | |||
| Increase in other current liabilities | (5 | ) | (416 | ) | (830 | ) | |
| (1,633 | ) | (1,569 | ) | (2,492 | ) | ||
| (31 | ) | (214 | ) | (1,185 | ) | ||
| Appendix B - Non-cash investment and financing activities | |||||||
| Recognition of right for usage asset against a leasing liability | - | - | 1,129 | ||||
| Repayment of first promissory note (principal and interest) through issuance of ADSs resulted from partial exercise of Commitment Amount under equity line | 3,721 | - | 3,313 | ||||
