Cyngn Reports 2023 Fourth Quarter and Year-End Financial Results
- Revenue growth from $262 thousand in 2022 to $1.5 million in 2023 is a significant positive indicator of Cyngn's financial performance.
- The increase in R&D expenses by $3.2 million in 2023 shows the company's commitment to technological advancements and product development.
- Cyngn's successful completion of multiple trial deployments of DriveMod Autonomous Vehicles with leading manufacturers in early 2024 indicates potential growth and market acceptance.
- Cyngn's patent portfolio growth with 19 granted patents and additional pending patents reflects the company's focus on innovation and intellectual property protection.
- The absence of debt for Cyngn in both 2022 and 2023 highlights a strong financial position and reduced financial risks for the company.
- The increase in total costs and expenses from $19.7 million in 2022 to $24.8 million in 2023 may raise concerns about the company's cost management strategies and operational efficiency.
- A decrease in revenue from $262 thousand in Q4 2022 to $40.4 thousand in Q4 2023 could indicate challenges in maintaining consistent revenue streams or market demand for Cyngn's products.
- The decline in unrestricted cash and short-term investments from $22.6 million in 2022 to $8.2 million in 2023 may raise liquidity concerns and affect the company's ability to fund future operations.
- The net loss per share increasing from $(0.55) in 2022 to $(0.57) in 2023 may indicate profitability challenges and financial performance issues for Cyngn.
- The reduction in G&A expenses in Q4 2023 and the recognition of an Employee Retention Credit could positively impact the company's bottom line and operational efficiency.
- The decrease in working capital from $22.4 million in 2022 to $7.4 million in 2023 raises concerns about Cyngn's liquidity position and ability to meet short-term financial obligations.
- The net loss per share increasing from $(0.15) in Q4 2022 to $(0.12) in Q4 2023 may indicate ongoing profitability challenges and financial performance issues for Cyngn.
- The decline in total stockholders' equity from $24.1 million in 2022 to $10.6 million in 2023 could signal potential shareholder value dilution or financial instability.
- The decrease in revenue from $262 thousand in Q4 2022 to $40.4 thousand in Q4 2023 may raise concerns about Cyngn's ability to sustain revenue growth and profitability in the future.
- The increase in total costs and expenses from $19.7 million in 2022 to $24.8 million in 2023 may indicate challenges in cost management and operational efficiency for Cyngn.
- The decline in unrestricted cash and short-term investments from $22.6 million in 2022 to $8.2 million in 2023 may raise liquidity concerns and impact Cyngn's financial flexibility.
Insights
The financial results presented by Cyngn Inc. indicate a substantial year-over-year revenue increase from $262 thousand to $1.5 million, primarily attributed to Non-Recurring Engineering contracts. However, the company's net loss widened from $(19.2) million in 2022 to $(22.8) million in 2023, despite the revenue growth. This discrepancy suggests that the increased revenue is not translating into bottom-line profitability, which could be a red flag for investors. The increased R&D expenses, which rose by $3.2 million, are reflective of the company's investment in advancing its autonomous vehicle (AV) technology. While such investments are critical for long-term growth, they do impact short-term financial stability.
The decline in unrestricted cash and short-term investments from $22.6 million to $8.2 million, coupled with a decrease in total stockholders' equity from $24.1 million to $10.6 million, indicates significant cash burn. This scenario could potentially lead to liquidity concerns if the company does not manage to scale revenue at a faster pace or secure additional funding. The lack of debt is a positive sign, suggesting Cyngn is not over-leveraged, which provides some financial flexibility.
Cyngn’s strategic partnerships with leading OEMs like Motrec and BYD and technology alignment with Ouster's LiDAR sensors and Nvidia's AI computation capabilities, highlight its integration within the AV ecosystem. The company's focus on AI-driven autonomous vehicle software solutions positions it within a high-growth potential market, as the demand for automation and efficiency in industries like logistics and transportation is increasing. The successful trial deployments and anticipated initial deployments of DriveMod Autonomous Forklifts in the second half of the year could be pivotal in establishing Cyngn's market presence.
However, the market for autonomous industrial vehicles is highly competitive and rapidly evolving, with significant R&D investments required to stay at the forefront. Cyngn's ability to convert trial deployments into follow-on sales and scale up production will be crucial for market penetration and revenue growth. Investors should monitor the company's customer acquisition rate and the effectiveness of its go-to-market strategy.
The Nasdaq extension for continued exchange listing provided to Cyngn is a critical aspect that allows the company to maintain its public company status and access capital markets for potential future fundraising. However, it is essential to recognize that such extensions are typically granted when a company is at risk of not meeting the exchange's listing requirements, which can be a concern for investors regarding the company's financial health.
The acquisition of 19 patents and numerous pending patents both in the U.S. and internationally signifies a strong intellectual property (IP) portfolio, which is a valuable asset for technology companies. A robust IP portfolio can provide competitive advantages and potential revenue streams through licensing agreements. Nevertheless, it is also important to consider the costs associated with maintaining these patents and the potential for IP litigation, which is common in the tech industry.
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 pendingU.S. patents and 20 pending international patents- Next-Gen DriveMod Kit will Harness Nvidia AI Computers
- Closes
$5.0 million - 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
To learn more, watch our 2023 year in review video here.
2023 Financial Review:
- 2023 revenue was
$1.5 million $262 thousand - Total costs and expenses in 2023 were
$24.8 million $19.7 million $3.2 million $572 thousand $885 thousand $898 thousand $192 thousand $1.0 million - Net loss for 2023 was
$(22.8) million $(19.2) million $(0.57) $(0.55)
Q4 2023 Financial Review:
- Fourth quarter revenue was
$40.4 thousand $262 thousand - Total costs and expenses in the fourth quarter were
$5.4 million $6.0 million $635 thousand $192 thousand $86 thousand $204 thousand $572 thousand $123 thousand - Net loss for the fourth quarter was
$(5.4) million $(5.5) million $(0.12) $(0.15)
Balance Sheet Highlights:
Cyngn's unrestricted cash and short-term investments at the end of 2023 total
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 | $ | (0.12) | $ | (0.15) | ||
Weighted-average shares used in computing | 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 | $ | (0.57) | $ | (0.55) | ||
Weighted-average shares used in computing net | 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 | 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 | ||||||
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 | 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
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