Cyngn Reports Third Quarter 2024 Financial Results
Recent Operating Highlights:
-- Executed its first paid DriveMod Forklift Deployment.
-- Signed a commercial contract with a major automotive service equipment
manufacturer.
-- Executed LOI to sell multiple DriveMod Tuggers to global automotive
supplier.
-- Successfully completed DriveMod Tugger Initial Deployment with a major
defense contractor.
-- Hired Experienced Industrial Automation VP of Sales, Marty Petraitis.
-- Started deploying its next-gen 12,000 lb. DriveMod Tugger at customer
facilities.
-- Expanded its sales channels through Motrec dealers and 3rd party system
integrators that combine for billions of dollars of robotics and
material handling equipment annual sales.
-- Secured its 20th and 21st U.S. Patent.
-- Expanded DriveMod capabilities to outdoor operations in response to
demand.
MENLO PARK, Calif., Nov. 6, 2024 /PRNewswire/ -- Cyngn (or the "Company") (Nasdaq: CYN), developer of industrial autonomous vehicles, today announced financial results for its third quarter, ended September 30, 2024.
"Our third quarter marked meaningful additional commercial traction of our autonomous DriveMod technology," said Lior Tal, Cyngn CEO. "Building on the progress we made with direct sales efforts in the first half of the year, including being selected by Deere to supply the DriveMod Tugger, we have expanded our strategy to increase our channel sales efforts.
"We have also achieved a significant milestone with the first paid deployment of our DriveMod Forklift, an important progression into sales activities after initial R&D and projects focused on funding development."
"Through our OEM partner Motrec, we are able to expand our sales strategy beyond direct sales by leveraging a strong incumbent dealer network while also adding specialized distributors and system integrators like Kennedy Robotics AI and RobotLAB.
"By expanding our sales and distribution collaborations, we are enhancing our sales channels and creating consistent opportunities that strengthen our sales pipeline."
In addition to increasing lead generation and building a more robust pipeline, we also hired Marty Petraitis, a seasoned vet of the industrial automation industry, as our VP of Sales to capitalize on our growing opportunities. Broadly, our sales pipeline has matured into more advanced stages as per the process outlined in our recent update. We are actively converting more Pilot Purchases, creating a larger pool of existing and newly onboarded customers to grow into Fleet Purchases.
We are continuing to see validation of our solution through traction in heavy manufacturing industries like automotive and defense, highlighted by the first deployments of our next-generation 12,000 lb. DriveMod Tugger at customer facilities and multiple new customer contracts and LOIs as outlined above.
The next-gen DriveMod Tugger boasts increased towing capacity and enhanced autonomous capabilities that enable it to support outdoor operations. These improvements have expanded our use cases, broadened the environments where our autonomous vehicles deliver value, and ultimately created new sales opportunities.
Having ramped up the production of our DriveMod Tugger, we have also been able to shift to revenue-generating activities with our autonomous forklift solution. Our first paid DriveMod Forklift deployment marks a key turning point in monetizing the valuable solution offered by an autonomous forklift.
The global forklift market is expected to double to $103.9 billion by 2031. The opportunity for autonomous forklifts is significant, and this milestone positions us for the critical next steps that will result in the DriveMod Forklift being widely available to under-served forklift automation applications that require >10,000 lb. load capacity and use non-standard pallets.
When reviewing the financial information below, note that all share and per share information, Common stock and Additional paid-in capital, has been restated to reflect the 1-for-100 reverse stock split effected on July 3, 2024.
Q3 2024 Three Month Financial Review:
-- Third quarter revenue was $47.6 thousand compared to $25.2 thousand in
the third quarter of 2023. Similar to prior year, third quarter 2024
revenue consisted of EAS software subscriptions from DriveMod
Stockchaser vehicle deployments.
-- Total costs and expenses of $5.6 million in the third quarter of 2024
were consistent with the third quarter of 2023. However, R&D expenses in
2024 decreased by $133.6 thousand and G&A expenses decreased by $60.3
thousand, and these decreases were offset by an increase in cost of
revenue of $114.8 thousand. The decrease in R&D expense was primarily
driven by capitalizing costs for specific customers and capitalizing
costs related to the development of software. The decrease in G&A
expenses is due to a decrease in personnel costs, reduced insurance
premiums and spending improvements on general office expenses. The
increase in cost of revenue is driven by more customer deployments in
2024. Headcount at the end of the third quarter of 2024 was 81 versus 85
at the end of the third quarter of 2023.
-- Net loss for the third quarter was $(5.4) million compared to $(5.5)
million in the corresponding quarter of 2023. Third quarter 2024 net
loss per share was $(2.74), based on basic and diluted weighted average
shares outstanding of approximately 1,982 thousand in the quarter. This
compares to a net loss per share of $(11.03) in the third quarter of
2023, based on approximately 496 thousand basic and diluted weighted
average shares outstanding.
Q3 2024 Nine Month Financial Review:
-- Year-to-date third quarter revenue was $61.8 thousand compared to $1.4
million in the third quarter of 2023. Third quarter 2024 revenue
consisted of EAS software subscriptions from DriveMod Stockchaser
vehicle deployments whereas prior year revenue was the result of NRE
contracts.
-- Total costs and expenses in the third quarter were $17.3 million, down
from $19.4 million in the third quarter of 2023. This decrease was
primarily due to a decrease in R&D expenses of $547.7 thousand, a $666.9
thousand reduction in G&A expenses, and a $835.8 thousand decrease in
cost of revenue. The decrease in R&D expense was primarily driven by
capitalizing costs for specific customers and capitalizing costs related
to the development of software while the decrease in G&A expenses is due
to a decrease in personnel costs, reduced insurance premiums and
spending improvements 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.
-- Net loss for the third quarter was $(17.2) million compared to $(17.5)
million in the corresponding quarter of 2023. Third quarter 2024 net
loss per share was $(12.91), based on basic and diluted weighted average
shares outstanding of approximately 1,333.3 thousand in the period. This
compares to a net loss per share of $(35.50) for the nine months of
2023, based on approximately 491.7 thousand basic and diluted weighted
average shares outstanding during the period.
Balance Sheet Highlights:
Cyngn's cash and short-term investments at September 30, 2024 total $2.8 million compared to $8.2 million as of December 31, 2023. At the end of the same period, working capital was $2.6 million and total stockholders' equity was $6.65 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 September 30, 2024 and December 31, 2023 and to date, no one on the current management team has sold any shares of Company stock
For more information on Cyngn, visit the Investor Relations Page of the Company's website.
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 7, 2024.
Find Cyngn on:
-- Website: https://cyngn.com
-- Twitter: https://twitter.com/cyngn
-- LinkedIn: https://www.linkedin.com/company/cyngn
-- YouTube: https://www.youtube.com/@cyngnhq
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 Securities and Exchange Commission (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 Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Revenue $
47,584 $
25,210 $
61,762 $
1,448,961
Costs and expenses
Cost of revenue 157,251 42,414 285,949 1,121,732
Research and development 2,795,583 2,929,225 9,149,357 9,697,099
General and administrative 2,602,952 2,663,272 7,913,222 8,580,113
Total costs and expenses 5,555,786 5,634,911 17,348,528 19,398,944
Loss from operations (5,508,202) (5,609,701) (17,286,766) (17,949,983)
Other income, net
Interest income, net 46,336 32,905 45,994 98,698
Other income 34,467 105,284 24,342 397,616
Total other income, net 80,803 138,189 70,336 496,314
Net loss $
(5,427,399) $
(5,471,512) $
(17,216,430) $
(17,453,669)
Net loss per share attributable $
(2.74) $
(11.03) $
(12.91) $
(35.50)
to common stockholders,
basic and diluted
Weighted-average shares 1,981,907 496,009 1,333,255 491,656
used in computing net loss
per share attributable to
common stockholders, basic
and diluted
CYNGN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2024 2023
Assets
Current assets
Cash $
1,974,441 $
3,591,623
Short-term investments 812,750 4,561,928
Prepaid expenses and other current assets 1,664,063 1,316,426
Total current assets 4,451,254 9,469,977
Property and equipment, net 2,067,411 1,486,672
Right of use asset, net 474,149 992,292
Intangible assets, net 1,488,328 1,084,415
Total Assets $
8,481,142 $
13,033,356
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $
190,488 $
196,963
Accrued expenses and other current liabilities 1,136,258 1,201,142
Current operating lease liability 505,231 682,718
Total current liabilities 1,831,977 2,080,823
Non-current operating lease liability 317,344
Total liabilities 1,831,977 2,398,167
Commitments and contingencies
Stockholders' Equity
Preferred stock, Par $0.00001, 10 million shares
authorized; no shares issued and outstanding as
of September 30, 2024 and December 31, 2023
Common stock, Par $0.00001; 200,000,000 20 8
shares authorized, 2,026,575 and 759,831 shares
issued and outstanding as of September 30, 2024
and December 31, 2023, respectively
Additional paid-in capital 183,883,194 170,652,800
Accumulated deficit (177,234,049) (160,017,619)
Total stockholders' equity 6,649,165 10,635,189
Total Liabilities and Stockholders' Equity $
8,481,142 $
13,033,356
CYNGN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
2024 2023
Cash flows from operating activities
Net loss $
(17,216,430) $
(17,453,669)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 692,848 707,337
Stock-based compensation 1,871,466 2,517,890
Realized gain on short-term investments (105,414) (396,141)
Patent impairment 118,831
Changes in operating assets and liabilities:
Prepaid expenses, operating lease right-of-use assets, and other current assets (345,122) 261,034
Accounts payable (6,475) 78,414
Accrued expenses, lease liabilities, and other current liabilities (559,715) (154,967)
Net cash used in operating activities (15,550,011) (14,440,102)
Cash flows from investing activities
Purchase of property and equipment (739,947) (904,417)
Acquisition of intangible asset (540,756) (698,527)
Disposal of assets 130,898
Purchase of short-term investments (6,755,408) (17,050,782)
Proceeds from maturity of short-term investments 10,610,000 24,892,000
Net cash provided by investing activities 2,573,889 6,369,172
Cash flows from financing activities
Proceeds from at-the-market equity financing, net of issuance costs 6,789,427 1,012,511
Proceeds from private placement offering and pre-funded warrants, net of offering costs 4,570,110
Proceeds from exercise of stock options 8,527
Issuance of stock dividend, net of issuance costs (597)
Net cash provided by financing activities 11,358,940 1,021,038
Net increase (decrease) in cash (1,617,182) (7,049,892)
Cash, beginning of period 3,591,623 10,586,273
Cash, end of period $
1,974,441 $
3,536,381
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SOURCE Cyngn
