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Cyngn Reports Second Quarter 2022 Results

·12 min read

Company to Host Conference Call Today at 2 p.m. PT/5 p.m. ET

MENLO PARK, Calif., August 10, 2022--(BUSINESS WIRE)--Cyngn Inc. (the "Company" or "Cyngn") (NASDAQ: CYN), a developer of innovative autonomous driving software solutions for industrial and commercial applications, today announced its financial results for the second quarter and six months ended June 30, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220810005694/en/

Cyngn announces its financial results for the second quarter and six months ended June 30, 2022, after the close of the stock market on August 10, 2022. The Company is also hosting its earnings call that same day. Source: Cyngn

Recent Operating Highlights:
The following operational developments occurred subsequent to June 30, 2022:

  • On July 21, 2022, Cyngn announced the launch of its Enterprise Autonomy Suite ("EAS") v8.0. This latest release includes 138 new features, a 33% reduction in component complexity, and a 75% reduction in cloud computing costs, spanning some 27,000 new lines of code.

  • As of July 31, 2022, Cyngn had 62 employees, a net increase of 29 since December 31,2021. This increase is in line with the Company’s plans and the result of recent success in recruiting top talent, primarily in the areas of engineering and product management. Since December 31, 2021, the Company’s research and development ("R&D") team has grown 126% to 43 members, excluding contractors.

  • In July 2022, Cyngn launched a pilot deployment of its autonomous Columbia Stockchaser with Flambeau, Inc. at their 177,000-sq. foot manufacturing facility in Columbus, Indiana. A member of the Nordic Group of Companies, Flambeau specializes in manufacturing and distribution of a variety of products, including toys, sporting goods, and automotive and industrial parts through their various locations in the U.S. and Mexico.

Lior Tal, Cyngn’s CEO, stated, "During the second quarter of 2022, we were focused on continuing to productize our suite of technology products, working closely with our partners on existing and additional deployments. We are thrilled to have launched a pilot deployment with Flambeau, expanding upon our relationship with the Nordic Group, which we believe is a testament to the incredible value our technology and platform have brought to their operations. Insight from these deployments and the effort our development team culminated in our latest release of EAS just three weeks ago: version 8.0. EAS 8.0 is a significant upgrade to its predecessor and an important milestone in commercialization.

"At the end of July, we released a case study quantifying the value that our AV technology brings to Global Logistics and Fulfillment (‘GLF’), a West Coast distribution, fulfillment and 3PL services company. The study reported notable labor cost savings and productivity gains at GLF’s Las Vegas facility where we had deployed an autonomous Stockchaser in late 2021, and the data demonstrated that the higher the throughput of a facility, the greater the potential savings and efficiencies. The value only increases with each vehicle that is made autonomous with Cyngn’s software, platform, and data insights.

"We have continued working to build out our team, particularly in engineering, and are pleased to have filled several key positions in recent months. Our success in hiring will be critical to our ability to continue achieving future milestones. We remain in a strong financial position to move forward with our business initiatives over the next several months and are excited to make greater strides in the remainder of 2022."

GAAP Financial Review

Second Quarter Ended June 30, 2022:

  • Total operating expenses were $4.6 million for the quarter ended June 30, 2022, compared to $2.1 million in the prior-year quarter. The increase was primarily due to a $1.4 million increase in R&D expense, which was attributable to significantly increased non-cash, stock-based compensation expense, costs incurred for additional engineering staff and contractors, allocated occupancy costs and R&D-related travel costs. The Company expects R&D costs to continue to increase as it continues to invest in additional engineering and other personnel to support its R&D efforts. General and administrative ("G&A") expense also increased by $1.1 million due to significantly increased non-cash, stock-based compensation expense, costs incurred for additional personnel and professional services necessary to support becoming a public company and for additional occupancy costs following the renewal of the Company’s lease that expanded the square footage of its Menlo Park offices.

  • Net loss was $4.6 million for the quarter ended June 30, 2022, compared to net loss of $2.1 million in the prior-year quarter. Net loss per share on a basic and diluted basis was $0.15 based on approximately 30.7 million weighted average shares outstanding for the quarter ended June 30, 2022, compared to net loss per share on a basic and diluted basis of $2.20 based on approximately 1.0 million weighted average shares outstanding in the prior-year quarter.

Six Months Ended June 30, 2022:

  • Total operating expenses were $8.4 million for the six months ended June 30, 2022, compared to $3.6 million in the prior-year period. The increase was primarily due to a $2.6 million increase in G&A expense and $2.2 million increase in R&D expense as explained above.

  • Net loss was $8.4 million for the six months ended June 30, 2022, compared to net loss of $3.6 million in the prior-year period. Net loss per share on a basic and diluted basis was $0.29 based on approximately 28.7 million weighted average shares outstanding for the six months ended June 30, 2022, compared to net loss per share on a basic and diluted basis of $3.83 based on approximately 1.0 million weighted average shares outstanding in the prior-year period.

Balance Sheet Highlights:
As of June 30, 2022, Cyngn’s cash and cash equivalents and investments in marketable securities were $32.7 million, working capital was $32.2 million, and total stockholders’ equity was $33.3 million; compared to cash and cash equivalents of $21.9 million, working capital of $22.1 million and total stockholders’ equity of $22.2 million, respectively, as of December 31, 2021.

For more details on Cyngn’s financial results for the second quarter and six months ended June 30, 2022, please refer to the Company’s Form 10-Q to be filed with the SEC, which will be accessible at www.sec.gov.

Conference Call and Webcast Information:
Cyngn will host a conference call at 2 p.m. PT/5 p.m. ET today (Wednesday, August 10, 2022), during which management will discuss the results of the second quarter and six months ended June 30, 2022. To participate in the conference call, please use the following dial-in numbers about 5 minutes prior to the scheduled conference call time:

U.S. & Canada (Toll-Free): (877) 407-9753
International (Toll): (201) 493-6739

The conference call can also be accessed via webcast at the "Events & Presentations" page of Cyngn’s Investor Relations website by clicking here. The Company encourages all participants to also log into the live webcast as it expects to broadcast a short video client testimonial showcasing footage of one of Cyngn’s vehicles being used at a manufacturing facility.

Those who are unable to attend the live conference call may access the recording shortly 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/).

About Cyngn
Cyngn is an autonomous vehicle technology company that is focused on addressing industrial uses for autonomous vehicles. Cyngn believes that technological innovation is needed to enable adoption of autonomous industrial vehicles that will address the substantial industry challenges that exist today. These challenges include labor shortages, lagging technological advancements from incumbents, and high upfront investment requirements. Cyngn addresses these challenges with its Enterprise Autonomy Suite, which includes DriveMod (modular industrial vehicle autonomous driving software), Cyngn Insight (customer-facing software suite for monitoring/managing AV fleets and aggregating/analyzing data), and Cyngn Evolve (internal toolkit that enables Cyngn to leverage data from the field for artificial intelligence, simulation, and modeling).

To learn more, please visit https://cyngn.com/.

Find Cyngn on:

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 to the Securities and Exchange Commission (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 24, 2022. 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,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,601,774

 

 

$

21,945,981

 

Restricted cash

 

 

50,000

 

 

 

50,000

 

Short-term investments

 

 

27,000,015

 

 

 

-

 

Prepaid expenses and other current assets

 

 

603,508

 

 

 

525,304

 

Total current assets

 

 

33,255,297

 

 

 

22,521,285

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

467,671

 

 

 

102,787

 

Right of use asset, net

 

 

643,183

 

 

 

-

 

Intangible assets, net

 

 

181,880

 

 

 

30,917

 

Total Assets

 

$

34,548,031

 

 

$

22,654,989

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

243,531

 

 

$

112,271

 

Accrued expenses and other current liabilities

 

 

386,605

 

 

 

295,156

 

Operating lease liability, current portion

 

 

455,545

 

 

 

-

 

Total current liabilities

 

 

1,085,681

 

 

 

407,427

 

 

 

 

 

 

 

 

 

 

Operating lease liability, net of current portion

 

 

189,811

 

 

 

-

 

Total liabilities

 

 

1,275,492

 

 

 

407,427

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

Convertible Series A, B and C preferred stock, Par $0.00001; 10,000,000 shares authorized; none issued and outstanding as of as of June 30, 2022 and December 31, 2021

 

 

-

 

 

 

-

 

Common stock, Par $0.00001; 100,000,000 shares authorized; 33,575,334 and 26,487,680 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

336

 

 

 

265

 

Additional paid-in capital

 

 

158,196,733

 

 

 

138,740,827

 

Accumulated deficit

 

 

(124,924,530

)

 

 

(116,493,530

)

Total stockholders’ equity

 

 

33,272,539

 

 

 

22,247,562

 

Total Liabilities and Stockholders’ Equity

 

$

34,548,031

 

 

$

22,654,989

 

CYNGN INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,255,666

 

 

 

831,896

 

 

 

3,936,811

 

 

 

1,766,186

 

General and administrative

 

 

2,357,247

 

 

 

1,261,727

 

 

 

4,494,763

 

 

 

1,877,118

 

Total operating expenses

 

 

4,612,913

 

 

 

2,093,623

 

 

 

8,431,574

 

 

 

3,643,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(4,612,913

)

 

 

(2,093,623

)

 

 

(8,431,574

)

 

 

(3,643,304

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(1,607

)

 

 

(3,901

)

 

 

(1,986

)

 

 

(6,043

)

Other income

 

 

2,559

 

 

 

5,952

 

 

 

2,560

 

 

 

5,952

 

Total other income (expense), net

 

 

952

 

 

2,051

 

 

 

574

 

 

(91

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,611,961

)

 

$

(2,091,572

)

 

$

(8,431,000

)

 

$

(3,643,395

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(0.15

)

 

$

(2.20

)

 

$

(0.29

)

 

$

(3.83

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

30,706,235

 

 

 

951,794

 

 

 

28,682,245

 

 

 

951,794

 

CYNGN INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(8,431,000

)

 

$

(3,643,395

)

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

229,102

 

 

 

45,818

 

Stock-based compensation

 

 

1,233,712

 

 

 

96,058

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

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

 

 

(902,512

)

 

 

(38,329

)

Accounts payable

 

 

131,260

 

 

 

57,036

 

Accrued expenses, lease liabilities, and other current liabilities

 

 

736,805

 

 

 

(61,126

)

Net cash used in operating activities

 

 

(7,002,633

)

 

 

(3,543,938

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(410,289

)

 

 

(7,523

)

Disposal of assets

 

 

-

 

 

 

(4,150

)

Acquisition of intangible asset

 

 

(153,550

)

 

 

-

 

Purchase of short-term investments

 

 

(27,000,000

)

 

 

-

 

Net cash used in investing activities

 

 

(27,563,839

)

 

 

(11,673

)

 

 

 

 

 

 

 

 

 

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 Paycheck Protection Program Note

 

 

-

 

 

903,802

 

Proceeds from exercise of stock options

 

 

97,658

 

 

 

-

 

Net cash provided by financing activities

 

 

18,222,265

 

 

 

903,802

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents and restricted cash

 

 

(16,344,207

)

 

 

(2,651,809

)

Cash and cash equivalents and restricted cash, beginning of period

 

 

21,995,981

 

 

 

6,456,190

 

Cash and cash equivalents and restricted cash, end of period

 

$

5,651,774

 

 

$

3,804,381

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220810005694/en/

Contacts

Carolyne Sohn
Vice President, The Equity Group
csohn@equityny.com
(415) 568-2255