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Cyngn Reports First Quarter 2024 Financial Results

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Cyngn Inc. reported its Q1 2024 financial results, highlighting achievements like joining John Deere supply base, renewing deployment contracts, and receiving new patents. The company's CEO expressed confidence in continued growth and improved sales processes. However, Q1 revenue decreased to $5.5 thousand from $872.8 thousand in 2023, with a net loss of $(6.0) million. Cyngn's cash and short-term investments decreased to $4.8 million at the end of Q1 2024.

Positive
  • Renewed deployment contracts with U.S. Continental and achieved 4x gains in efficiency.

  • Received a notice of allowance for a 20th U.S. patent, strengthening the company's IP portfolio.

  • Joined John Deere supply base, showcasing credibility and expanding market reach.

Negative
  • First quarter revenue decreased to $5.5 thousand from $872.8 thousand in the first quarter of 2023.

  • Net loss for Q1 2024 was $(6.0) million compared to $(5.6) million in Q1 2023.

  • Cyngn's cash and short-term investments decreased to $4.8 million at the end of Q1 2024.

Looking at the figures presented by Cyngn Inc., there are significant shifts in their financial landscape. The substantial drop in first quarter revenue from $872.8 thousand to just $5.5 thousand year-over-year is a red flag that merits a closer look. This stark revenue decline may indicate a shift in the company's business model or potential challenges in market acceptance of their products or services.

The reduction in total costs and expenses is a silver lining, albeit not sufficient to offset the revenue downturn. The savings in general and administrative expenses, coupled with reduced costs of revenue, show efforts towards financial efficiency. However, the incremental increase in R&D spending suggests continued investment in innovation and technology development, which could be positive if it leads to successful commercialization.

It's also worth noting the company's move to increase liquidity through a public offering, raising $5.2 million. Despite the short-term boost in cash, the dilution of shares can affect shareholder value. Investors should weigh the potential for growth and product development against the reality of current financial performance and increased share count.

The strategic partnerships and advancements mentioned, such as joining the John Deere supply base and completing the DriveMod Tugger deployment with Rivian, suggest that Cyngn is actively expanding its commercial footprint. The receipt of a 20th U.S. patent is indicative of a growing intellectual property portfolio, which can be critical in establishing a competitive advantage in the autonomous vehicle technology sphere.

The mention of 4x gains in efficiency achieved with a renewed contract and the development of next-gen AI-powered industrial autonomous vehicles highlight an evolution in Cyngn's product offerings. The emphasis on an ecosystem of partners and progress in technological capabilities like automatic unhitching could be pivotal for adoption in manufacturing and logistics sectors.

However, these operational highlights need to translate into sustainable revenue streams for them to be meaningful to investors. The transition from pilot programs to fleet purchases will be important for Cyngn’s growth and should be monitored closely by any stakeholder.

MENLO PARK, Calif., May 8, 2024 /PRNewswire/ -- Cyngn Inc. (the "Company" or "Cyngn") (Nasdaq: CYN) today announced its financial results for the fiscal first quarter ended March 31, 2024.

Recent Operating Highlights:

"During the first quarter, we continued the momentum we made during 2023, marked by rapid strides toward broad commercialization," said Lior Tal, Cyngn's CEO. "Our success is bolstered by the strength of our ecosystem partners, particularly with MCL Industries who is positioned to build DriveMod Kits at scale, and Motrec as an OEM partner with a long history of providing vehicles to our target markets in manufacturing and logistics."

"In my recent Business Update, I shed some light on the challenges of the industrial sales cycle—especially for a new, safety-critical technology that offers the competitive advantages that automation does to large enterprises. We remain confident in our ability to grow sales with our target customers, as was exemplified by our achievement of Deere selecting Cyngn to supply DriveMod Tuggers. Similarly, we are working with several customers to advance through the pilot purchase phase and unlock the fleet purchases that will establish our foundation for growth. In parallel, we continue to pursue new prospective customers. Advancements in our mapping and deployment tools have streamlined the demonstration phase that is often required early in the sales process to just a few days, which significantly lowers our customer acquisition costs and enables us to convert more customers to advanced sales discussions."

Q1 2024 Financial Review:

  • First quarter revenue was $5.5 thousand compared to $872.8 thousand in the first quarter of 2023. First quarter 2024 revenue consisted of EAS software subscriptions from DriveMod Stock chaser vehicle deployments whereas prior year revenue was primarily the result of NRE contracts.
  • Total costs and expenses in the first quarter were $6.0 million, down from $6.7 million in the first quarter of 2023. This decrease was primarily due to a $367.5 thousand reduction in G&A expenses and a $502.9 thousand decrease in cost of revenue, offset by an increase  in R&D expenses of $124.6 thousand. The decrease in G&A expenses is due to a decrease in personnel costs, reduced premiums for Director and Office Liability Insurance, and savings on general office expenses. The decrease in cost of revenue is driven by the lower costs associated with EAS revenue compared to the NRE contracts in 2023. The increase in R&D expense was primarily driven by personnel costs incurred for additional engineering staff and external contractor costs to support the development of Cyngn's technology, offset by $102 thousand of capitalized software.  Headcount at the end of the first quarter of 2024 was 80 versus 73 from the first quarter of 2023.
  • Net loss for the first quarter was $(6.0) million compared to $(5.6) million in the corresponding quarter of 2023. First quarter 2024 net loss per share was $(0.08), based on basic and diluted weighted average shares outstanding of approximately 77.1 million in the quarter. This compares to a net loss per share of $(0.15) in the first quarter of 2023, based on approximately 37.7 million basic and diluted weighted average shares outstanding.

Balance Sheet Highlights:
Cyngn's cash and short-term investments at March 31, 2024 total $4.8 million compared to $8.2 million as of December 31, 2023.  At the end of the same period, working capital was $4.6 million and total stockholders' equity was $8.0 million, as compared to year-end working capital of $7.4 million and total stockholders' equity of $10.6 million, respectively as of December 31, 2023.  The Company had no debt as of March 31, 2024 and December 31, 2023.

Subsequent to March 31, 2024, Cyngn completed a $5.2 million public offering of its common stock.  After giving effect of the net proceeds of $4.6 million, Cyngn's pro-forma cash and short-term investments, working capital, and total stockholders' equity was $9.4 million, $9.2 million and  $12.6 million, respectively.

For more information on Cyngn, visit the "Investor Relations" page of the Company's website (https://investors.cyngn.com/).

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). For all terms referenced within, please refer to the company's annual report on Form 10-K with the SEC filed on March 7th, 2024. 

Find Cyngn on:

Investor Contact:
Don Alvarez
investors@cyngn.com 

Media Contact:
Luke Renner
media@cyngn.com 

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. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in the Company's reports to the SEC, including, without limitation the risk factors discussed in the Company's annual report on Form 10-K filed with the SEC on March 7, 2024. Readers are cautioned that it is not possible to predict or identify all the risks, uncertainties and other factors that may affect future results No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Cyngn undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

CYNGN INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months Ended
 March 31,




2024



2023









Revenue


$

5,513



$

872,800


Costs and expenses









 Cost of revenue



113,776




616,694


Research and development



3,154,695




3,030,056


General and administrative



2,703,401




3,070,920


Total costs and expenses



5,971,872




6,717,670











Loss from operations



(5,966,359)




(5,844,870)











Other income, net









Interest income



1,327




46,902


Other income (expense), net



(5,047)




169,210


Total other income (expense), net



(3,720)




216,112











Net loss


$

(5,970,079)



$

(5,628,758)











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


$

(0.08)



$

(0.15)











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



77,081,105




37,685,413


 

CYNGN INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS




(Unaudited)






March 31,



December 31,



2024



2023







Assets






Current assets






Cash


$

2,192,398



$

3,591,623

Short-term investments



2,578,882




4,561,928

Prepaid expenses and other current assets



1,502,115




1,316,426

Total current assets



6,273,395




9,469,977









Property and equipment, net



1,652,382




1,486,672

Right of use asset, net



821,144




992,292

Intangible assets, net



1,045,412




1,084,415

Total Assets


$

9,792,333



$

13,033,356









Liabilities and Stockholders' Equity








Current liabilities








Accounts payable


$

248,677



$

196,963

Accrued expenses and other current liabilities



720,239




1,201,142

Current operating lease liability



724,654




682,718

Total current liabilities


$

1,693,570




2,080,823









Non-current operating lease liability



127,572




317,344

Total liabilities


$

1,821,142




2,398,167









Commitments and contingencies (Note 12)








Stockholders' Equity








Preferred stock, Par $0.00001, 10 million shares authorized; no shares issued and outstanding as of March 31, 2024 and December 31, 2023



-




-

Common stock, Par $0.00001; 200,000,000 shares authorized, 88,454,654 and 64,773,756 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively



884




648

Additional paid-in capital



173,958,005




170,652,160

Accumulated deficit



(165,987,698)




(160,017,619)

Total stockholders' equity



7,971,191




10,635,189

Total Liabilities and Stockholders' Equity


$

9,792,333



$

13,033,356

 

CYNGN INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Three Months Ended
 March 31,




2024



2023


Cash flows from operating activities







Net loss


$

(5,970,079)



$

(5,628,758)


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









Depreciation and amortization



225,590




228,031


Stock-based compensation



654,024




924,898


Realized gain on short-term investments



(39,938)




(169,209)


Gain (Loss) on asset



52,723




-


Changes in operating assets and liabilities:









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



(185,689)




(258,859)


Accounts payable



51,714




287,656


Accrued expenses, lease liabilities, and other current liabilities



(628,739)




(761,207)


Net cash used in operating activities



(5,840,394)




(5,377,448)











Cash flows from investing activities









Purchase of property and equipment



(214,238)




(447,739)


Acquisition of intangible asset



(19,634)




(44,745)


Purchase of short-term investments



(1,787,016)




(10,497,206)


Proceeds from maturity of short-term investments



3,810,000




13,742,000


Net cash provided by investing activities



1,789,112




2,752,310











Cash flows from financing activities









Proceeds from at-the-market equity financing, net of issuance costs


$

2,652,110



$

-


Proceeds from public issuance of common stock and pre-funded warrants, net of offering costs



(53)




-


Proceeds from exercise of stock options



-




6,844


Net cash provided by financing activities



2,652,057




6,844











Net decrease in cash and restricted cash



(1,399,225)




(2,618,294)


Cash and restricted cash, beginning of period



3,591,623




10,586,273


Cash and restricted cash, end of period


$

2,192,398



$

7,967,979


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cyngn-reports-first-quarter-2024-financial-results-302138805.html

SOURCE Cyngn

FAQ

What were Cyngn's Q1 2024 revenue and net loss figures?

In Q1 2024, Cyngn reported revenue of $5.5 thousand and a net loss of $(6.0) million.

What were some of Cyngn's recent operating highlights?

Recent highlights include joining John Deere supply base, renewing deployment contracts, and receiving a notice of allowance for a 20th U.S. patent.

What was Cyngn's cash and short-term investments at the end of Q1 2024?

Cyngn's cash and short-term investments at the end of Q1 2024 totaled $4.8 million.

Where can more information on Cyngn be found?

For more information on Cyngn, visit the 'Investor Relations' page of the Company's website at https://investors.cyngn.com/.

Cyngn Inc.

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