Billionaire Boys Club Member Forum (BBCMF)

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Rail Vision Ltd. (Nasdaq: RVSN) (“Rail Vision” or the “Company”), an early commercialization stage technology company seeking to revolutionize railway safety and the data-related market, today announced its financial results for the second half and full year ended December 31, 2024. The Company reported significant revenue growth and operational progress, strengthening its market presence in the U.S. and beyond.

“2024 was a transformative year for Rail Vision,” said Shahar Hania, CEO of Rail Vision. “Since the beginning of 2024, we’ve secured over $34 million in funding, delivered key orders to global industry leaders and strengthened our U.S. market presence. With expanding fleet management, data services, and cloud integration, we are moving beyond hardware to a complete railway safety and analytics ecosystem.”

Commercial Execution

? In early 2025, received a purchase order from a Central American freight operator for its MainLine system.

? Completed in 2024 the first deliveries of MainLine systems related to a $1.4 million order from Israel Railways for ten Main Line Systems after successful evaluation, —marking the first-ever national rail installation of the Company’s AI-based tech.

? Completed multiple installations in 2024, including with a Class 1 U.S. freight operator, Loram, a top U.S. rail maintenance firm, and a leading Latin American mining company.

? Secured an initial $1 million order in January 2024 from a leading U.S.-based rail services company, followed by a $200,000 follow-on order in June 2024.

Global Expansion

? Entered the Indian market through a non-binding MOU with Sujan Ventures, targeting thousands of locomotives operated by Indian Railways.

? Joined the MxV Rail Technology Roadmap Program under the American Association of Railroads to support safety and efficiency initiatives across North America.

Product Innovation

? Launched an Active Control System enabling semi-autonomous train operation in collaboration with a U.S. rail company.

? Introduced D.A.S.H., a proprietary SaaS platform delivering real-time operational insights and enhanced safety.

Milestones and IP Protection

? Gained regulatory approval from Israel Railways for its MainLine System, unlocking a $300,000 milestone payment.

? Secured a U.S. patent and received a notice of allowance in Japan for its AI-powered obstacle detection system.

Full Year 2024 Financial Results

? Revenues for the year ended December 31, 2024, increased by 815% to $1.3 million, compared to $142,000 for the year ended December 31, 2023. The increase was primarily driven by installations for a leading global mining company that purchased a Rail Vision Main Line System, the first installation of Rail Vision’s Main Line Systems for Israel Railways and the successful delivery and installation of Rail Vision’s Shunting Yard systems to Loram and a Class 1 US Railroad company.

? Research and development expenses for the year ended December 31, 2024, decreased to $5,279,000 compared to $7,145,000 for the year ended December 31, 2023. The decrease was primarily attributable to a decrease in salaries and related personnel expenses due to a reduction in workforce, including a reduction in our employee base by 12 R&D employees, and a decrease in R&D equipment purchases

? General and administrative expenses totaled $4,175,000 for the year ended December 31, 2024, compared to $4,339,000 for the year ended December 31, 2023, representing a decrease of $164,000 or 3.7%. The decrease was primarily attributable to a decrease in salaries as part of the process of reducing costs and a decrease in share-based payment expenses of grants which were fully vested or forfeited in 2024.

? As a result of the foregoing, the Company’s operating loss for the year ended December 31, 2024, was $9,004,000 compared to an operating loss of $11,403,000 for the year ended December 31, 2023.

? For the year ended December 31, 2024, we recorded expenses in amount of $20,181,000 due to the revaluation of derivatives and warrants liabilities in connection with warrants issued in a private placement and a convertible loan credit facility that we entered into in January 2024 and an equity line facility that the Company established in October 2024. For the year ended December 31, 2023, we did not incur any expenses related to revaluation of derivatives and warrants liabilities.

? Other financial expenses amounted to $1,523,00 for the year ended December 31, 2024, compared to $255,000 other financial income for the year ended December 31, 2023. The decrease was primarily attributable to the full amortization of discount related to a convertible loan credit facility that we entered into in January 2024 and set up fees of an equity line facility that the Company established in October 2024.

? GAAP net loss for the year ended December 31, 2024, was $30,708,000, or $1.85 per ordinary share, compared to a GAAP net loss of $11,148,000, or $4.30 per ordinary share, in the year ended December 31, 2023.

? Non-GAAP net loss for the year ended December 31, 2024, was $10,129,000, or $0.61 per ordinary share, compared to a non-GAAP net loss of $10,875,000, or $4.20 per ordinary share, in the year ended December 31, 2023.

Balance Sheet Highlights

? As of December 31, 2024, cash and cash equivalents rose to $17.5 million from $3.3 million as of December 31, 2023. The increase compared to December 31, 2023, is mainly due to the proceeds received from a private placement and credit facility, from warrants exercised by shareholders and from issuance of shares under the equity line facility that the Company established in October 2024, totaling $24.1 million gross ($23.9 net proceeds), less cash used during 2024.

Cash position and financing activities

? Rail Vision secured during 2024 and the first quarter of 2025 over $34 million in gross proceeds to fuel its business through various financing transactions, including a private placement of its shares and warrants, exercises of warrants and using its equity line facility.

? In October 2024, the Company established an equity line facility, as amended in February 2025, pursuant to which it has the right to sell up to $30.0 million of its ordinary shares, subject to certain limitations, from time to time during the 36-month period following the date of execution of the agreement. As of the date hereof, the Company has issued an aggregate of 22,210,892 ordinary shares for aggregate gross proceeds of approximately $18.3 million.

Second Half Financial Results

? Revenues for the six months ended December 31, 2024, were $539,000, compared to $142,000 for the six months ended December 31, 2023, representing an increase of 380%, mainly comprised from installation of Rail Vision’s Main Line Systems for Israel Railways and the successful delivery and installation of Rail Vision’s Shunting Yard systems to a Class 1 US Railroad company.

? Research and development expenses for the six months ended December 31, 2024, were $2,821,000, compared to $3,463,000 for the six months ended December 31, 2023 representing a decrease of 18%. The decrease in R&D expenses was primarily attributable to a decrease in R&D salaries due to a reduction in the Company employee base by 12 R&D employees.

? General and administrative expenses for the six months ended December 31, 2024, were $2,059,000, similar to $2,036,000 in the six months ended December 31, 2023.

? As a result of the foregoing, the Company’s operating loss for the six months ended December 31, 2024, was $4,819,000 compared to an operating loss of $5,418,000 for the six months ended December 31, 2023.


? For the six months ended December 31, 2024, the Company recorded expenses in amount of $1,346,000 due to the revaluation of derivatives and warrants liabilities in connection with the equity line facility that the Company established in October 2024. For the six months ended December 31, 2023, we did not incur any expenses related to revaluation of derivatives and warrants liabilities.

? Financial expenses amounted to $219,000 for the six months ended December 31, 2024, compared to $155,000 financial income for the six months ended December 31, 2023. The decrease was primarily attributable to set up fees related to the equity line facility that the Company established in October 2024.

? GAAP net loss for the six months ended December 31, 2024, was $6,384,000, or $0.30 per ordinary share, compared to a GAAP net loss of $5,313,000, or $1.77 per ordinary share, in the six months ended December 31, 2023.

? Non-GAAP net loss for the six months ended December 31, 2024, was $4,736,000 or $0.23 per ordinary share, compared to a non-GAAP net loss of $5,204,000, or $1.74 per ordinary share, in the six months ended December 31, 2023.

A copy of Rail Vision’s annual report on Form 20-F for the year ended December 31, 2024 has been filed with the U.S. Securities and Exchange Commission at https://www.sec.gov/ and posted on Rail Vision’s investor relations website at https://ir.railvision.io/. Rail Vision will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at [e-mail].

Use of Non-GAAP Financial Results

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the company’s earnings release contains non-GAAP financial measures of net loss for the period that excludes the effect of stock-based compensation expenses and revaluation of derivative warrant liabilities. The company’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of the company’s on-going operations. Management also uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors. The non-GAAP financial measures disclosed by the company should not be considered in isolation or as a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these Non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures and not rely on any single financial measure to evaluate the company’s business. For more information on the non-GAAP financial measures, please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” later in this release. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.