MENLO PARK, Calif.,
March 6, 2024 /PRNewswire/ -- Cyngn
Inc. (the "Company" or "Cyngn") (Nasdaq: CYN) today announced its
financial results for the fourth quarter and year ending on
December 31, 2023.
Recent Operating Highlights:
- U.S. Continental Renews Contract; 4x Gains in Efficiency
Achieved
- Nasdaq Grants Extension for Continued Exchange Listing
- U.S. patent office granted 19 patents to-date; Cyngn's patent
portfolio also includes 6 additional pending U.S. patents and 20
pending international patents
- Next-Gen DriveMod Kit will Harness Nvidia AI Computers
- Closes $5.0 million Public
Offering of Common Stock
- Hands-off Automatic Unhitching Capabilities for Industrial
Autonomous Vehicles
"I am pleased with the accomplishments of our Cyngn team as we
transitioned from years of R&D into 2023 commercial readiness
and finished the year with annual revenue at $1.5 million," said Lior
Tal, Chairman and Chief Executive Officer of Cyngn.
"Our success is also driven in part with our key leading OEM
partnerships from Motrec and BYD, and, aided by our technology
alignment with Ouster's LiDAR sensors and Nvidia's artificial
intelligence computation capabilities that power Cyngn's AI-driven
autonomous vehicle software solutions. During the first couple of
months of 2024 we already successfully completed multiple trial
deployments of DriveMod Autonomous Vehicles with leading vehicle
manufacturers and automotive suppliers, and anticipate 2024 to be a
fast-paced and exciting year as these transition to follow-on
sales, and we scale up production deployment and rapidly expand our
customer installed base. This will happen in parallel to continued
development of the DriveMod Autonomous Forklifts, which are
expected to begin initial deployments during the second half of the
year."
To learn more, watch our 2023 year in review video
here.
2023 Financial Review:
- 2023 revenue was $1.5 million
compared to $262 thousand in 2022,
the majority of which was substantially the result of NRE
(Non-Recurring Engineering) contracts in both years.
- Total costs and expenses in 2023 were $24.8 million, an increase from $19.7 million in 2022. This increase was
primarily related to R&D expenses, up $3.2 million due to increased technical staffing
to support our AV technology offset by the recognition of an
Employee Retention Credit of $572
thousand and capitalized software of $885 thousand. G&A expenses increased by
$898 thousand year-over-year related
to increased staffing to support public company responsibilities,
increased marketing, advertising and other general and
administrative expenses offset by the recognition of an Employee
Retention Credit of $192 thousand.
Cost of revenue increased by $1.0
million primarily from higher engineering development
resources and hardware costs to support the completion of the final
phases of NRE contracts. Headcount, including full time
contractors, at the end of 2023 was 81 versus 79 from the prior
year.
- Net loss for 2023 was $(22.8)
million compared to $(19.2)
million in 2022. 2023 net loss per share was $(0.57), based on basic and diluted weighted
average shares outstanding of approximately 40.0 million. This
compares to a net loss per share of $(0.55) in 2022, based on approximately 34.9
million basic and diluted weighted average shares outstanding.
Q4 2023 Financial Review:
- Fourth quarter revenue was $40.4
thousand compared to $262
thousand in the fourth quarter of 2022. Fourth quarter 2023
revenue was derived primarily from 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 fourth quarter were
$5.4 million, down from $6.0 million in the fourth quarter of 2022. This
decrease was primarily due to a $635
thousand reduction in G&A expenses, partially due to the
recognition of an Employee Retention Credit of $192 thousand. In addition, cost of revenue
decreased by $86 thousand and R&D
expenses increased by $204 thousand.
The increase in R&D expense was primarily driven by commercial
deployments, offset by the recognition of an Employee Retention
Credit of $572 thousand and
$123 thousand of capitalized
software.
- Net loss for the fourth quarter was $(5.4) million compared to $(5.5) million in the corresponding quarter of
2022. Fourth quarter 2023 net loss per share was $(0.12), based on basic and diluted weighted
average shares outstanding of approximately 46.0 million in the
quarter. This compares to a net loss per share of $(0.15) in the fourth quarter of 2022, based on
approximately 37.7 million basic and diluted weighted average
shares outstanding.
Balance Sheet Highlights:
Cyngn's unrestricted cash
and short-term investments at the end 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 $7.4
million and total stockholders' equity was $10.6 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. The Company had no debt as of December 31, 2023 and 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 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
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
(Unaudited)
|
|
Three Months Ended
December 31,
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
Revenue
|
$
|
40,356
|
|
|
$
|
262,000
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
100,589
|
|
|
|
186,823
|
|
Research and
development
|
|
3,022,884
|
|
|
|
2,818,599
|
|
General and
administrative
|
|
2,312,843
|
|
|
|
2,947,394
|
|
Total costs and
expenses
|
|
5,436,316
|
|
|
|
5,952,816
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(5,395,960)
|
|
|
|
(5,690,816)
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
|
|
|
|
|
Interest
income
|
|
39,189
|
|
|
|
41,409
|
|
Other income
(expense)
|
|
(790)
|
|
|
|
103,262
|
|
Total other income,
net
|
|
38,399
|
|
|
|
144,671
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(5,357,561)
|
|
|
$
|
(5,546,145)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common
stockholders, basic and diluted
|
$
|
(0.12)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing
net loss per share attributable to common
stockholders, basic and diluted
|
|
46,005,620
|
|
|
|
37,654,019
|
|
CYNGN INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
Year
ended
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,489,317
|
|
$
|
262,000
|
|
Costs and
expenses:
|
|
|
|
|
|
-
|
|
Cost of
revenue
|
|
|
1,222,321
|
|
|
186,823
|
|
Research and
development
|
|
|
12,719,983
|
|
|
9,481,329
|
|
General and
administrative
|
|
|
10,892,955
|
|
|
9,994,575
|
|
Total costs and
expenses
|
|
|
24,835,259
|
|
|
19,662,727
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(23,345,942)
|
|
|
(19,400,727)
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
|
|
|
|
|
Interest
income
|
|
|
137,887
|
|
|
44,100
|
|
Other income
|
|
|
396,825
|
|
|
120,118
|
|
Total other income ,
net
|
|
|
534,712
|
|
|
164,218
|
|
|
|
|
|
|
-
|
|
Net loss
|
|
$
|
(22,811,230)
|
|
$
|
(19,236,509)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common
stockholders, basic and diluted
|
|
$
|
(0.57)
|
|
$
|
(0.55)
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing net
loss per share attributable to common
stockholders, basic and diluted
|
|
|
39,987,864
|
|
|
34,947,710
|
|
CYNGN INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
|
$
|
3,591,623
|
|
$
|
10,536,273
|
|
Restricted
cash
|
|
|
-
|
|
|
50,000
|
|
Short-term
investments
|
|
|
4,561,928
|
|
|
12,064,337
|
|
Prepaid expenses and
other current assets
|
|
|
1,316,426
|
|
|
1,126,137
|
|
Total current
assets
|
|
|
9,469,977
|
|
|
23,776,747
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
1,486,672
|
|
|
884,000
|
|
Right-of-use asset,
net
|
|
|
992,292
|
|
|
371,189
|
|
Intangible assets,
net
|
|
|
1,084,415
|
|
|
473,076
|
|
Total Assets
|
|
$
|
13,033,356
|
|
$
|
25,505,012
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
196,963
|
|
$
|
155,943
|
|
Accrued expenses and
other current liabilities
|
|
|
1,201,142
|
|
|
854,920
|
|
Current operating lease
liability
|
|
|
682,718
|
|
|
376,622
|
|
Total current
liabilities
|
|
|
2,080,823
|
|
|
1,387,485
|
|
|
|
|
|
|
|
|
Non-current operating
lease liability
|
|
|
317,344
|
|
|
|
|
Total
liabilities
|
|
|
2,398,167
|
|
|
1,387,485
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 12)
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
Common stock, Par
$0.00001; 200,000,000 shares authorized,
64,773,756 and 33,684,864 shares issued and outstanding as of
December 31, 2023 and December 31, 2022, respectively
|
|
|
648
|
|
|
337
|
|
Additional paid-in
capital
|
|
|
170,652,160
|
|
|
159,847,229
|
|
Accumulated
deficit
|
|
|
(160,017,619)
|
|
|
(135,730,039)
|
|
Total stockholders'
equity
|
|
|
10,635,189
|
|
|
24,117,527
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
13,033,356
|
|
$
|
25,505,012
|
|
CYNGN INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
|
|
|
Year
Ended
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net loss
|
|
$
|
(22,811,230)
|
|
$
|
(19,236,509)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
961,281
|
|
|
604,871
|
|
Stock-based
compensation
|
|
|
3,208,103
|
|
|
2,867,698
|
|
Realized gain on
short-term investments
|
|
|
(443,392)
|
|
|
(90,216)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
|
(1,403,049)
|
|
|
(1,425,126)
|
|
Accounts
payable
|
|
|
41,020
|
|
|
43,672
|
|
Accrued expenses and
other current liabilities
|
|
|
969,662
|
|
|
936,387
|
|
Net cash used in
operating activities
|
|
|
(19,477,605)
|
|
|
(16,299,223)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(1,045,822)
|
|
|
(918,318)
|
|
Acquisition of
intangible asset
|
|
|
(718,711)
|
|
|
(456,822)
|
|
Purchase of short-term
investments
|
|
|
(21,573,199)
|
|
|
(27,000,000)
|
|
Proceeds from
maturities of short-term investments
|
|
|
29,519,000
|
|
|
15,025,879
|
|
Disposal of
assets
|
|
|
180,898
|
|
|
-
|
|
Net cash provided by
(used in) investing activities
|
|
|
6,362,166
|
|
|
(13,349,261)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Proceeds from
at-the-market equity financing, net of issuance costs
|
|
|
1,747,468
|
|
|
-
|
|
Proceeds from private
placement offering and pre-funded warrants, net
of offering costs
|
|
|
4,380,975
|
|
|
18,121,945
|
|
Proceeds from exercise
of pre-funded warrants
|
|
|
-
|
|
|
2,662
|
|
Issuance of stock
dividend
|
|
|
(16,182)
|
|
|
-
|
|
Proceeds from exercise
of stock options
|
|
|
8,528
|
|
|
114,169
|
|
Net cash provided by
financing activities
|
|
|
6,120,789
|
|
|
18,238,776
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
|
(6,994,650)
|
|
|
(11,409,708)
|
|
Cash and cash
equivalents and and restricted cash, beginning of year
|
|
|
10,586,273
|
|
|
21,995,981
|
|
Cash and cash
equivalents and restricted cash, end of year
|
|
$
|
3,591,623
|
|
$
|
10,586,273
|
|
|
|
|
|
|
|
|
Reconciliation of
cash and restricted cash, end of period:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
3,591,623
|
|
$
|
10,536,273
|
|
Restricted
cash
|
|
|
-
|
|
|
50,000
|
|
Total cash and
restricted cash
|
|
$
|
3,591,623
|
|
$
|
10,586,273
|
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SOURCE Cyngn
