Yet another company from the disappointing wave of tech IPOs on the Tel Aviv Stock Exchange (TASE) in 2021 has reported financial difficulties and streamlining measures. Auto-tech company Cipia Vision (TASE: CPIA), which at the end of 2021 raised NIS 68 million at a company valuation of NIS 354 million, before money, has snice lost 93% of its market cap and is currently trading at a market cap of just NIS 55 million.
Cipia has notified the Tel Aviv Stock Exchange (TASE) that due to its financial situation and the ‘going concern’ qualification attached to its financial reports, the company’s board of directors has decided to adopt a streamlining plan to allow continued operations. According to the notification will focus on continued operations with existing customers and work on other strategic projects as far as the financial situation allows.
The streamlining plan includes a major reduction in operational expenses and the laying off of 50% of the work force. At the end of 2024, Cipia had 62 employees including 34 in R&D, 22 in marketing and six in management and general positions.
The company says it will also reduce the number of officers through termination of contracts. At the same time, the directors announced a unilateral waiver of their salaries until the end of 2025 (without the right to return), with the exception of the external and independent directors who will receive the minimum directors’ remuneration stipulated by law. According to the report, Cipia will continue to try to raise sources of financing for its ongoing activities and will examine “additional operational and strategic steps, for the benefit of the company.”
Cipia, managed by CEO Yehuda Holtzman, is developing driver monitoring software based on AI computer vision technology, which has been expanded from gesture recognition to analyze visual facial and behavioral signs. The product is designed to monitor driver behavior and updates in cases of fatigue and distraction.
The company, which began operating in 2007, is managed without a controlling interest, and its shares are held by a number of foreign and Israeli investment entities (including Leon Recanati and Professor Eli Talmor, who serves as the company’s chairman). In 2024, the company’s revenue was $5.7 million, up from $5.4 million in 2023. Net loss was $8 million in 2024, compared with $9.1 million in 2023. Since its founding and through until the end of 2024, the company has “burned” over $100 million and had $5 million in its coffers at of the end of 2024.
Published by Globes, Israel business news – en.globes.co.il – on April 21, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
