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Cyngn Reports Second Quarter 2023 Financial Results

  • Quarterly revenue of $0.6 million following successful achievement of milestones on autonomous vehicle development contracts

MENLO PARK, Calif., Aug. 9, 2023 /PRNewswire/ -- Cyngn Inc. (the "Company" or "Cyngn") (NASDAQ: CYN), a developer of AI-powered autonomous driving software solutions for industrial applications, today announced its financial results for the fiscal second quarter ended June 30, 2023.

CYN 2Q23 Earnings Results (PRNewsfoto/Cyngn)

Recent Operating Announcements:

"During the past few months, we have made incredible progress on our commercial targets," said Lior Tal, Cyngn's CEO. "In addition to the order from Arauco for our autonomous forklifts that we announced yesterday morning, we also announced our largest stockchaser customer to-date and a new vehicle type with the DriveMod enabled Motrec tow tractor. These announcements are a strong indication of the significant market opportunity for industrial vehicle autonomy and the excellent product market fit for Cyngn's solutions. Our focus for the second half of 2023 will be to continue securing additional commercial deployments.

"In the second quarter, we also achieved new milestones on our funded development projects to expand our Enterprise Autonomy Suite to additional vehicles. Cyngn's flexible, vehicle agnostic, autonomy solutions have the potential to transform the use of industrial vehicles worldwide and we are extremely encouraged with the inbound interest in our products and solutions."

Financial Review

Second Quarter ending June 30, 2023:

  • Second quarter revenue was $0.6 million compared to no revenues in the second quarter of 2022. Substantially all of this revenue was from the two multi-phase non-recurring engineering ("NRE") contracts related to expanding Cyngn's autonomy solutions to forklifts and heavy industry vehicles.
  • Total costs and expenses in the second quarter were $7.0 million, an increase from $4.6 million in the June quarter of 2022. This increase was primarily due to increases in cost of revenue, additional marketing and advertising expenses, higher legal and professional fees and the increase in headcount from 59 employees in the second quarter of 2022 to 75 employees today.
  • Net loss for the second quarter was $6.4 million compared to $4.6 million in the corresponding quarter of 2022. Second quarter 2023 net loss per share was $0.19, based on a weighted average of approximately 33.8 million basic and diluted shares outstanding in the quarter. This compares to a basic and diluted net loss per share of $0.15 in the second quarter of 2022, against a weighted average of approximately 30.7 million basic and diluted shares outstanding.

Balance sheet highlights:
Cyngn's unrestricted cash and short-term investments at the end of the June quarter of 2023 totaled $12.1 million. At the end of the same period, working capital was $11.6 million and total stockholders' equity was $13.9 million, as compared to year-end working capital of $22.4 million and total stockholders' equity of $24.1 million respectively in 2022.

Conference Call and Webcast Information:
Cyngn will host a conference call at 1.30 p.m. PDT/4.30 p.m. EDT today (Wednesday, August 9, 2023), during which management will discuss the results of the fiscal second quarter ended June 30, 2023.

As the call will include a video presentation, the Company recommends viewing the live webcast of the call which will be available on the Cyngn website under "Events & Presentations" or by clicking here.

To participate via telephone:

Toll-Free:

   

877-407-0890

International:

   

201-389-0918

Those who are unable to attend the live conference call may access the recording, approximately one hour after the conclusion of the call, at the above webcast link or at the "Investor Relations" page of the Company's website (https://investors.cyngn.com/).

Shareholders are also encouraged to visit Cyngn's second quarter earnings Q&A page at sequirecommunity.com where they can post questions for company management.

About Cyngn

Cyngn develops and deploys scalable, differentiated autonomous vehicle technology for industrial organizations. Cyngn's self-driving solutions allow existing workforces to increase productivity and efficiency. The Company addresses significant challenges facing industrial organizations today, such as labor shortages, costly safety incidents, and increased consumer demand for eCommerce. 

Cyngn's DriveMod Kit can be installed on new industrial vehicles at end of line or via retrofit, empowering customers to seamlessly adopt self-driving technology into their operations without high upfront costs or the need to completely replace existing vehicle investments.

Cyngn's flagship product, its Enterprise Autonomy Suite, includes DriveMod (autonomous vehicle system), Cyngn Insight (customer-facing suite of AV fleet management, teleoperation, and analytics tools), and Cyngn Evolve (internal toolkit that enables Cyngn to leverage data from the field for artificial intelligence, simulation, and modeling).

Find Cyngn on:
Website: https://cyngn.com
Twitter: http://twitter.com/cyngn
LinkedIn: https://www.linkedin.com/company/cyngn
YouTube: https://www.youtube.com/@cyngnhq

Investor Contact: Ben Mimmack, This email address is being protected from spambots. You need JavaScript enabled to view it.
Media Contact: Bill Ong, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements about the Company's growth, ability to deliver sustainable long-term value, ability to respond to the changing environment, operational focus, strategic growth plans, product launches and corresponding revenue generation, operations and financial results. Forward-looking statements reflect current views with respect to future events and financial performance and therefore cannot be guaranteed. Such statements are based on the current expectations and certain assumptions of the Company's management, and some or all of such expectations and assumptions may not materialize or may vary significantly from actual results. Actual results may also vary materially from forward-looking statements due to risks, uncertainties and other factors, known and unknown, including the risk factors described from time to time in the Company's reports filed with the Securities and Exchange Commission, including, without limitation the risk factors discussed in the Company's annual reports on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements are applicable only as of the date on which they are made, and the Company does not assume any obligation to update any forward-looking statements.

CYNGN INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 
  

(Unaudited)

  
  

June 30,

 

December 31,

  

2023

 

2022

     

Assets

    

Current assets

    

Cash

 

$     3,055,843

 

$   10,536,273

Restricted cash

 

-

 

50,000

Short-term investments

 

9,063,675

 

12,064,337

Prepaid expenses and other current assets

 

1,134,255

 

1,126,137

Total current assets

 

13,253,773

 

23,776,747

     

Property and equipment, net

 

1,191,275

 

884,000

Right of use asset, net

 

553,919

 

371,189

Intangible assets, net

 

556,778

 

473,076

Total Assets

 

$   15,555,745

 

$   25,505,012

     

Liabilities and Stockholders' Equity

    

Current liabilities

    

Accounts payable

 

$        305,403

 

$        155,943

Accrued expenses and other current liabilities

 

751,190

 

854,920

Operating lease liability, current portion

 

557,108

 

376,622

Total liabilities (all current)

 

1,613,701

 

1,387,485

     

Commitments and contingencies

    

Stockholders' Equity

    

Preferred stock, $0.00001, 10 million shares authorized; no shares issued and
 outstanding as of June 30, 2023 and December 31, 2022

 

-

 

-

Common stock, Par $0.00001; 100,000,000 shares authorized,
 33,830,900 and 33,684,864 shares issued and outstanding as of
 June 30, 2023 and December 31, 2022

 

338

 

337

Additional paid-in capital

 

161,653,902

 

159,847,229

Accumulated deficit

 

(147,712,196)

 

(135,730,039)

Total stockholders' equity

 

13,942,044

 

24,117,527

Total Liabilities and Stockholders' Equity

 

$   15,555,745

 

$   25,505,012

CYNGN INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

         
  

Three months ended

 

Six months ended

  

June 30,

 

June 30,

  

2023

 

2022

 

2023

 

2022

         

Revenue

 

$        550,952

 

$                -

 

$     1,423,752

 

$                -

Costs and expenses

        

Cost of revenue

 

462,624

   

1,079,318

  

Research and development

 

3,737,818

 

2,255,666

 

6,767,874

 

3,936,811

General and administrative

 

2,845,922

 

2,357,247

 

5,916,841

 

4,494,763

Total costs and expenses

 

7,046,364

 

4,612,913

 

13,764,033

 

8,431,574

         

Loss from operations

 

(6,495,412)

 

(4,612,913)

 

(12,340,281)

 

(8,431,574)

         

Other income, net

        

Interest income (expense), net

 

18,891

 

(1,607)

 

65,793

 

(1,986)

Other income

 

123,122

 

2,559

 

292,331

 

2,560

Total other income, net

 

142,013

 

952

 

358,124

 

574

         

Net loss

 

(6,353,399)

 

(4,611,961)

 

(11,982,157)

 

(8,431,000)

         

Net loss per share attributable to common stockholders',
 basic and diluted

 

$           (0.19)

 

$           (0.15)

 

$           (0.36)

 

$           (0.29)

         

Weighted-average shares used in computing net loss per
 share attributable to common stockholders', basic and
 diluted

 

33,794,325

 

30,706,235

 

33,748,799

 

28,682,245

CYNGN INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

  

Six Months Ended

  

June 30,

  

2023

 

2022

Cash flows from operating activities

    

Net loss

 

$  (11,982,157)

 

$    (8,431,000)

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

 

474,990

 

229,102

Stock-based compensation

 

1,798,607

 

1,233,712

Realized gain on short-term investments

 

(291,555)

 

-

Changes in operating assets and liabilities:

    

Prepaid expenses, operating lease right-of-use assets, and other current assets

 

(473,047)

 

(902,512)

Accounts payable

 

149,460

 

131,260

Accrued expenses, lease liabilites, and other current liabilities

 

76,756

 

736,805

Net cash used in operating activities

 

(10,246,946)

 

(7,002,633)

     

Cash flows from investing activities

    

Purchase of property and equipment

 

(481,777)

 

(410,289)

Acquisition of intangible asset

 

(101,991)

 

(153,550)

Purchase of short-term investments

 

(17,011,782)

 

(27,000,000)

Proceeds from maturitity of short-term investments

 

20,304,000

 

-

Net cash provided by (used in) investing activities

 

2,708,450

 

(27,563,839)

     

Cash flows from financing activities

    

Proceeds from private placement offering, net of offering costs

 

-

 

18,121,945

Proceeds from exercise of pre-funded warrants

 

-

 

2,662

Proceeds from exercise of stock options

 

8,066

 

97,658

Net cash provided by financing activities

 

8,066

 

18,222,265

     

Net decrease in cash and restricted cash

 

(7,530,430)

 

(16,344,207)

Cash and restricted cash, beginning of period

 

10,586,273

 

21,995,981

Cash and restricted cash, end of period

 

$     3,055,843

 

$     5,651,774

     

Reconciliation of cash and restricted cash, end of period

    

Cash

 

3,055,843

 

5,601,774

Restricted cash

 

-

 

50,000

Total cash and restricted cash

 

3,055,843

 

5,651,774

     

Supplemental disclosure of cash flow:

    

Cash paid during the period for interest and taxes

 

$                   -

 

$                   -

Supplemental disclosure of non-cash activities:

    

Recognition of operating lease right-of-use assets and operating lease liabilities

 

$       464,929

 

$        824,292

Change in deferred rent associated with ASC 842

 

$                   -

 

$          58,676

Acquisition of property and equipment included in accounts payable and accrued
 expenses

 

-

 

22,185

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