Rail Vision Ltd. (“Rail Vision” or the “Company”), a development stage technology company seeking to revolutionize railway safety and the data-related market, today reported financial results for the third quarter ended September 30, 2023.

Shahar Hania, CEO of Rail Vision, stated, “I would like to begin by expressing our heartfelt sympathies and condolences to all those who have been affected by the recent tragic events in Israel. Despite the difficult circumstances in our home country, I want to reassure our shareholders and stakeholders that Rail Vision's operations continue unabated. Our commitment to delivering innovative, safety-enhancing technology to the global rail industry remains as strong as ever.”

“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 $500,000 purchase order from a leading Latin American mining company received in October 2023,” said Hania. “This contract demonstrates the trust that a growing number of customers worldwide place in our technology solutions. This new customer purchased a Main Line Advance Driver Assistance System (ADAS), equipped with high-end electro-optical sensors, machine learning algorithms and edge computing capabilities. Our ADAS solution provides operators with accurate and timely information, enabling them to make informed decisions and enhance the safety of train operations.

“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 Rail Vision, and we are committed to continuing to execute on this vision for the benefit of our customers, shareholders and stakeholders worldwide,” concluded Hania.

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 value NIS 0.01 per share, were consolidated into one (1) ordinary share, par value NIS 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 ended September 30, 2023, compared to $202,000 for the three months ended September 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 ended September 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 ended September 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 ended September 30, 2022.
  • As of September 30, 2023, cash, cash equivalents and restricted cash were $5.1 million.