MENLO
PARK, Calif., Nov. 8, 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 third quarter ended September 30, 2023.
Recent Operating Highlights:
- Raised $1.5 million from common
stock only at-the-market sales agreement through October 31, 2023
- Stockholders of record on October 23,
2023 received 10% pro rata common stock dividend
- Launched dealer network to expand customer base
- Unveiled DriveMod Tugger: Motrec MT160 autonomous electric
tugger that will be made available to select customers in Q4
2023
- Arauco pre orders 100 DriveMod Forklifts, targeting initial
rollout in South Carolina facility
in mid-2024; this one order has the potential to cover
approximately 20% of Company's current cash burn
- Successful paid initial deployment of DriveMod Stock Chaser
with a Fortune 100 heavy equipment manufacturer at its North
American facility
- U.S. patent office granted 16 patents to-date; Cyngn's patent
portfolio also includes 9 additional pending U.S. patents and 20
pending international patents
"We've achieved a number of impressive successes in both the
third quarter and in October, and we anticipate continued business
momentum through the end of the fiscal year," said Lior Tal, Chairman and Chief Executive Officer
of Cyngn. "Most notably, I am very pleased with the results
of the DriveMod Stock chaser deployment at a North American
facility for a Fortune 100 customer, the DriveMod Tugger debut with
our partner Motrec's MT160 vehicle, and the identification of the
Arauco South Carolina site for our DriveMod Forklift rollout in
mid-2024 as these achievement are pivotal in the commercialization
of EAS (Enterprise Autonomy Suite) and signal market acceptance of
our ever-advancing product suite for industrial automation.
Additionally, our recent dealer network launch will further expand
our customer base as we scale deployments in 2024."
Q3 2023 Financial Review:
- Third quarter revenue was $25.2
thousand compared to no revenues in the third quarter of
2022. Third quarter revenue was derived for the first time from EAS
software subscriptions from DriveMod Stock chaser vehicle
deployments.
- Total costs and expenses in the third quarter were $5.6 million, an increase from $5.3 million in the third quarter of 2022. This
increase was primarily due to costs incurred for bringing up
initial customer vehicle deployments, costs related to increased
headcount in both R&D and G&A, as well as modest increases
in other operating expenses. Increased R&D expense was offset
by the first-time capitalization of internally developed software.
Headcount is currently at 72, up from 64 employees at the end of
the third quarter of 2022.
- Net loss for the third quarter was $(5.5) million compared to $(5.3) million in the corresponding quarter of
2022. Third quarter 2023 net loss per share was $(0.14), based on basic and diluted weighted
average shares outstanding of approximately 37.8 million in the
quarter. This compares to a net loss per share of $(0.14) in the third quarter of 2022, based on
approximately 37.0 million basic and diluted weighted average
shares outstanding.
Balance Sheet Highlights:
Cyngn's unrestricted cash
and short-term investments at the end of the third quarter of 2023
total $8.2 million compared to
$22.6 million as of December 31, 2022. At the end of the same
period, working capital was $7.2
million and total stockholders' equity was $10.2 million, as compared to year-end working
capital of $22.4 million and total
stockholders' equity of $24.1
million, respectively as of December
31, 2022.
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).
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/Media Contact: Bill Ong,
bill@cyngn.com; 650-204-1551
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 17, 2023. 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
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
September
30,
|
September
30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
25,210
|
|
|
$
|
-
|
|
|
$
|
1,448,961
|
|
|
$
|
-
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
42,414
|
|
|
|
-
|
|
|
|
1,121,732
|
|
|
|
-
|
|
Research and
development
|
|
|
2,929,225
|
|
|
|
2,725,919
|
|
|
|
9,697,099
|
|
|
|
6,662,730
|
|
General and
administrative
|
|
|
2,663,272
|
|
|
|
2,552,418
|
|
|
|
8,580,113
|
|
|
|
7,047,181
|
|
Total costs and
expenses
|
|
|
5,634,911
|
|
|
|
5,278,337
|
|
|
|
19,398,944
|
|
|
|
13,709,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(5,609,701)
|
|
|
|
(5,278,337)
|
|
|
|
(17,949,983)
|
|
|
|
(13,709,911)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
|
32,905
|
|
|
|
4,677
|
|
|
|
98,698
|
|
|
|
2,691
|
|
Other
income
|
|
|
105,284
|
|
|
|
14,296
|
|
|
|
397,616
|
|
|
|
16,856
|
|
Total other income ,
net
|
|
|
138,189
|
|
|
|
18,973
|
|
|
|
496,314
|
|
|
|
19,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,471,512)
|
|
|
$
|
(5,259,364)
|
|
|
$
|
(17,453,669)
|
|
|
$
|
(13,690,364)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders,
basic and
diluted
|
|
$
|
(0.14)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.47)
|
|
|
$
|
(0.41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in computing net loss per
share
attributable to common
stockholders, basic and diluted
|
|
|
37,771,928
|
|
|
|
37,005,071
|
|
|
|
37,344,276
|
|
|
|
33,458,338
|
|
CYNGN INC. AND
SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
3,536,381
|
|
|
$
|
10,536,273
|
|
Restricted
cash
|
|
|
-
|
|
|
|
50,000
|
|
Short-term
investments
|
|
|
4,619,260
|
|
|
|
12,064,337
|
|
Prepaid expenses and
other current assets
|
|
|
436,923
|
|
|
|
1,126,137
|
|
Total current
assets
|
|
|
8,592,564
|
|
|
|
23,776,747
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
1,393,393
|
|
|
|
884,000
|
|
Right of use asset,
net
|
|
|
404,868
|
|
|
|
371,189
|
|
Intangible assets,
net
|
|
|
1,159,642
|
|
|
|
473,076
|
|
Total
Assets
|
|
$
|
11,550,467
|
|
|
$
|
25,505,012
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
234,357
|
|
|
$
|
155,943
|
|
Accrued expenses and
other current liabilities
|
|
|
699,953
|
|
|
|
854,920
|
|
Operating lease
liability, current portion
|
|
|
413,371
|
|
|
|
376,622
|
|
Total liabilities (all
current)
|
|
|
1,347,681
|
|
|
|
1,387,485
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 12)
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.00001, 10 million shares authorized; no shares issued
and
outstanding as of
September 30, 2023 and December 31, 2022
|
|
|
-
|
|
|
|
-
|
|
Common stock, Par
$0.00001; 100,000,000 shares authorized, 35,205,748 and
33,684,864 shares
issued and outstanding as of September 30, 2023 and
December 31,
2022
|
|
|
352
|
|
|
|
337
|
|
Additional paid-in
capital
|
|
|
163,386,142
|
|
|
|
159,847,229
|
|
Accumulated
deficit
|
|
|
(153,183,708)
|
|
|
|
(135,730,039)
|
|
Total stockholders'
equity
|
|
|
10,202,786
|
|
|
|
24,117,527
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
11,550,467
|
|
|
$
|
25,505,012
|
|
|
|
|
|
|
|
|
|
|
CYNGN INC. AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
September 30,
|
|
|
2023
|
|
|
2022
|
|
Cash flows from operating
activities
|
|
|
|
|
|
|
Net loss
|
|
$
|
(17,453,669)
|
|
|
$
|
(13,690,364)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
707,337
|
|
|
|
411,512
|
|
Stock-based
compensation
|
|
|
2,517,890
|
|
|
|
1,990,834
|
|
Realized gain on
short-term investments
|
|
|
(396,141)
|
|
|
|
(13,541)
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
|
|
|
Prepaid expenses,
operating lease right-of-use assets, and other current
assets
|
|
|
261,034
|
|
|
|
(835,747)
|
|
Accounts
payable
|
|
|
78,414
|
|
|
|
186,797
|
|
Accrued expenses,
lease liabilities, and other current liabilities
|
|
|
(154,967)
|
|
|
|
351,524
|
|
Net cash used in
operating activities
|
|
|
(14,440,102)
|
|
|
|
(11,598,985)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(904,417)
|
|
|
|
(639,545)
|
|
Acquisition of
intangible asset
|
|
|
(698,527)
|
|
|
|
(340,850)
|
|
Disposal of
assets
|
|
|
130,898
|
|
|
|
|
|
Purchase of short-term
investments
|
|
|
(17,050,782)
|
|
|
|
(27,000,000)
|
|
Proceeds from maturity
of short-term investments
|
|
|
24,892,000
|
|
|
|
5,025,879
|
|
Net cash provided by
(used in) investing activities
|
|
|
6,369,172
|
|
|
|
(22,954,516)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from
at-the-market equity financing, net of issuance costs
|
|
|
1,012,511
|
|
|
|
|
|
Proceeds from private
placement offering, net of offering costs
|
|
|
0
|
|
|
|
18,121,945
|
|
Proceeds from exercise
of pre-funded warrants
|
|
|
-
|
|
|
|
2,662
|
|
Proceeds from exercise
of stock options
|
|
|
8,527
|
|
|
|
114,169
|
|
Net cash provided by
financing activities
|
|
|
1,021,038
|
|
|
|
18,238,776
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash
and restricted cash
|
|
|
(7,049,892)
|
|
|
|
(16,314,725)
|
|
Cash and restricted
cash, beginning of period
|
|
|
10,586,273
|
|
|
|
21,995,981
|
|
Cash and restricted
cash, end of period
|
|
$
|
3,536,381
|
|
|
$
|
5,681,256
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash and restricted cash, end of
period:
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
3,536,381
|
|
|
$
|
5,631,256
|
|
Restricted
cash
|
|
|
-
|
|
|
|
50,000
|
|
Total cash and restricted cash
|
|
$
|
3,536,381
|
|
|
$
|
5,681,256
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Acquisition of
property and equipment included in accounts payable and accrued
expenses
|
|
|
20,625
|
|
|
|
28,854
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Cyngn