PETAH TIKVAH, Israel, April 2, 2024 (Newsfile) – SaverOne 2014 Ltd. (Nasdaq: SVRE, TASE: SVRE) develops and deploys transportation safety and advanced driver-assistance systems (ADAS) technologies and solutions that can be vital to driver, passenger, and pedestrian safety. Specifically, its SaverOne vehicle-installed system eliminates in-route and on-the-road driver distractions by limiting non-essential phone and device app functionality while driving. The intent is self-explanatory- the system helps mitigate dangerous circumstances that endanger personal, passenger, and public safety in real time.
While it may be easy to understand how the SaverOne system helps reduce catastrophic incidents, explaining how it was created is a more complex story. To get the entirety of that and to allow telling of its fast-paced market penetration into Tier-One client vehicles, Hawk Point Media reached out to SaverOne CEO Ori Gilboa for a “Spotlight” take on how his company has turned ambition into measurable progress, including the deals that he says have appreciably steepened his company’s growth trajectory. Here’s what he said:
Q: Ori, before we discuss the specifics made since SaverOne’s founding, can you explain what SaverOne is, does, and its mission?
A: Indeed, that’s a perfect place to start. SaverOne was founded in 2014 with a mission as true today as it was over a decade ago – to save lives. The inspiration to do so resulted from increasing media exposure highlighting the number of incidents, including loss of life, caused by inattentive driving related to cell phone and mobile device use. The distractions those devices caused inspired us to develop a technology to mitigate those potential risks.
However, the lost lives created a sense of urgency for us to attempt to do it faster and better than anyone or any company could. The importance of both led to our team designing and developing our SaverOne solution, the In Cabin Driver Distraction Prevention Solution, a sophisticated but easy-to-implement system that can eliminate common distractions without limiting device functionality. Since its founding, the mission has been to make the SaverOne system available globally to consumers, brands, and vehicles as fast as possible. Because of its seamless connectivity and integration into virtually any vehicle through any device, adoption is, I’m happy to say, happening at a pace exceeding our original expectations.
Q: Based on recent announcements, you have reason to be optimistic about 2024. Can you elaborate on some of them?
A: Absolutely. We entered what we consider a transformative OEM deal with IVECO, something we’ve been working to close since 2022. The agreement calls for integrating SaverOne’s “safety technology” within IVECO’s vehicles. Those unfamiliar with IVECO, especially in the U.S., need to appreciate the significance of this deal, noting that they manufacture over 150,000 vehicles globally per year and are considered a major producer of commercial vehicles in Europe. The excellent news for us and their customers is that the SaverOne solution will be integrated into IVECO’s hardware.
That’s valuable because it increases the inherent safety in IVECO’s trucks supporting our mutual mission to increase the safety of IVECO trucks.
Our roadmap with IVECO includes a number of steps. The integration of the SaverOne mobile app within IVECO’s mobile app is a step in the process, as well as the integration of SaverOne’s hardware and software solution into IVECO’s vehicles, which is another milestone that will enable additional features and capabilities. Eventually our hardware and software will be integrated into IVECO vehicles on the assembly line. But here’s the thing to know for now—we plan for these SaverOne-equipped IVECO trucks to be roll off the assembly line this year. When they do, investors will understand why this deal is a game-changer for SaverOne today and moving forward. On that front, stay tuned.
Q: You announced another significant deal in March, right?
A: We did. We announced that G.B. Tours decided to expand the installation of the SaverOne system across its entire fleet of public transportation and tour buses. They are a leading Israel-based transportation company that operates public transportation and tour bus lines through a fleet of about one hundred buses. What’s important to note is that these additional installations come after a 20-bus pilot program, which is more than a revenue driver; we believe it’s validation of our product and vision.
Frankly, deals like that make us more than optimistic about our company’s future; they make us ecstatic about it based on the potential these value drivers add this year and may add in the future. Included in that assessment is the value expected from executing our land-and-expand strategy, which immediately broadens initial penetrations to full fleets and expedites pilot programs that can and are leading to international contract wins.
Q: Like the deal announced with the renowned automaker and company Volvo?
A: Precisely. We are incredibly proud to have announced the signing of our first OEM agreement with Volvo Bus Corporation in Mexico. Under this OEM agreement, SaverOne’s Safety Solution will be installed in new Volvo buses manufactured for the Mexican market, with Volvo Bus customers in Mexico offered the SaverOne Safety Solution pre-installed through Volvo’s assembly line. We believe that this can be a massive and seamless win for our revenue streams, with additional potential. The agreement also allows for a retrofit of existing buses covered under Volvo’s maintenance agreement, representing approximately 3,000 in-service buses. Those contribute value to us as an aftermarket installation in addition to the OEM segment, so we have access to both Volvos buses in the manufacturing stage and Volvo buses already on the road.
Q: SaverOne has done considerably more to create value above that from the deals made with IVECO and Volvo. Provide a brief overview of the value from additional agreements and events you think are lacking from your company stock’s current valuation.
A: Sure, there’s quite a bit. While I can be brief, investors should definitely take the time to read more about these deals and agreements on our website. Those inclusions are essential for those wanting tangibles to fairly appraise our assets and potential. Since January 2024, we announced that the SaverOne system will be installed across the entire fleet of vehicles of Strauss Group, one of Israel’s largest food manufacturers, with over 80 food delivery trucks. We also signed a deal with a leading Israel-based private transit company Bon Tour, which will have them install 300 systems over the coming months.
In February, we announced the launch of a pilot project in the United States with Motor Supply, Inc., a Columbia, South Carolina-based services company. Like others, this deal has significant add-on potential. We also announced that Egged Tours, which operates the largest tour bus fleet in Israel, plans to install 300 SaverOne Systems on all its buses. If successful, and we believe the data may prove it, it could lead to installing additional systems into their over 3,000-bus fleet.
Also, in February, SaverOne was granted a new U.S. patent covering aspects of our SaverOne System to prevent distraction while driving, which is an important value driver to any appraisal model. This latest addition adds to our I.P. portfolio comprised of 23 patents, 10 of which are granted in various jurisdictions, and 13 additional patent applications in process. By the way, these patents are strategically filed in markets like the U.S., China, Israel, the United Kingdom, and the European Union, highlighting our intent for global expansion.
Q: Last year, there was also a long and impressive list on the deal-making front. Can you provide a synopsis?
A: I can, but don’t take brevity to indicate their value contributions. In 2023, we launched a pilot deal with Cemex in Spain, announced the win of six new customers covering 90 vehicles in Israel, signed a distribution deal with GVZ Company in Milan, Italy, and signed an Italian country partner to assist us in safely providing automotive components and solutions in the European markets.
We also launched a strategically important pilot project with Tecne, one of Europe’s leading concessionaries for the construction and management of toll motorways, with a fleet of 3,000 vehicles, and announced a pilot program with System Logistics, an Italian designer, manufacturer, and provider of automated warehousing. They operate a fleet of over 100 vehicles.
The great news is that these agreements are expected to mature in 2024. When they do, we believe that each will significantly impact 2024 growth if the pilot projects turn into firm orders. When added to the value expected from recent initiatives and contracts made in 2024, we expect to see that we are better positioned to exploit new business opportunities.
Q: The achievements are impressive. From a company and evaluation perspective, what have they delivered?
A: In one word – GROWTH. We have strengthened across the board. Year-over-year revenues increased 128% in 2023 to roughly $750,000. Gross profit increased by 107% year-over-year, and we see operating leverage in the business as the revenues grow.
That will allow us to utilize our roughly $4.7 million in cash on hand at the end of 2023 more effectively in 2024. What’s important to recognize about that performance is that while these numbers might not sound like much to large-cap investors, as an emerging company with a significant number of ongoing pilot projects, a substantial amount of deals entered in 2023 and the first quarter of 2024, and as well as an equity line financing vehicle at favorable rates when raising capital, we believe that our current capital resources will be sufficient to support an aggressive 2024 agenda that we plan to embark on as we attempt to create new revenue streams and maximize existing ones.
Keep this in mind: we announced that 4,600 systems have been ordered by customers as of March 12, 2024, and at least 3,200 of those have already been installed. Thus, those results aren’t reflected in our Q4 results. As a CEO, I believe that our deliverables in the first half of 2024 may serve as a barometer of future success through 2024 and beyond.
Q: What makes you confident that 2024 can be SaverOne’s breakout year?
A: Foremost is that we believe that we are a company doing the right things at the right time. While it took markets to catch up to what our technology can do and the value that we see in it, we believe that our time is here. The unbreakable relationship between humans and devices has made the technology we provide more than timely; it’s necessary. Not only because our solution has proven an ability to mitigate distractions, but also because it can help to save lives. That’s the ultimate value of our product.
From a company growth perspective, the critical multiplier to factor in is that we didn’t box ourselves into serving one specific market opportunity. SaverOne’s target markets include commercial and private vehicle fleets, public transportation and buses, vehicle manufacturers interested in integrating safety solutions into their vehicles in the assembly line and also as part of a large retrofit market, and insurance and leasing companies that share a common goal to reduce damages, fatalities, and lessen the enormous associated costs.
We believe that we are uniquely positioned and able to exploit the opportunities inherent to those markets. Remember, too, that we are currently showing our initial line of products to save lives and protect property by preventing distraction-related accidents. Forward-looking, we are actively developing a sensor system for early location and direction detection under all visibility conditions of vulnerable road users through their cellphone footprint. That market, which is a subject that is discussed by vehicle manufacturers adding additional and enhanced sensors to increase safety and is a particular focus points for vehicle manufacturers ushering in autonomous driving, could be a very valuable market.
Q: Any Closing thoughts?
A: Summing up, today’s SaverOne story is compelling, serving investors searching for value and proactive clients wanting to stay ahead of the pack to meet changing regulations through easily implemented common-sense safety systems. We believe that both can benefit from a more energized SaverOne, evidenced by expansion into new global markets to extend our reach beyond Israel, Europe, and the U.S.
At the risk of sounding hyper-bullish on our potential, with pending regulations in the E.U. and other countries considering mandating the kinds of services we provide, we believe that we could have rocket fuel added to an engine already revved for growth.
To close, I believe that the current share price of SaverOne does not reflect any of the growth or upside potential that we expect to unleash in 2024 and beyond.
End Interview
*Published with permission from Hawk Point Media Group, LLC.
About the SaverOne System
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 and the safety of their passengers. 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.
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; 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; 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.
International Investor Relations Contact:
Ehud Helft
+1 212 378 8040
[email protected]
Israeli Investors Contact:
Jonathan Eilat
[email protected]
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