Cyngn Reports First Quarter 2024 Financial Results
Cyngn Inc. reported its Q1 2024 financial results, highlighting achievements like joining John Deere supply base, renewing deployment contracts, and receiving new patents. The company's CEO expressed confidence in continued growth and improved sales processes. However, Q1 revenue decreased to $5.5 thousand from $872.8 thousand in 2023, with a net loss of $(6.0) million. Cyngn's cash and short-term investments decreased to $4.8 million at the end of Q1 2024.
Renewed deployment contracts with U.S. Continental and achieved 4x gains in efficiency.
Received a notice of allowance for a 20th U.S. patent, strengthening the company's IP portfolio.
Joined John Deere supply base, showcasing credibility and expanding market reach.
First quarter revenue decreased to $5.5 thousand from $872.8 thousand in the first quarter of 2023.
Net loss for Q1 2024 was $(6.0) million compared to $(5.6) million in Q1 2023.
Cyngn's cash and short-term investments decreased to $4.8 million at the end of Q1 2024.
Insights
Looking at the figures presented by Cyngn Inc., there are significant shifts in their financial landscape. The substantial drop in first quarter revenue from $872.8 thousand to just $5.5 thousand year-over-year is a red flag that merits a closer look. This stark revenue decline may indicate a shift in the company's business model or potential challenges in market acceptance of their products or services.
The reduction in total costs and expenses is a silver lining, albeit not sufficient to offset the revenue downturn. The savings in general and administrative expenses, coupled with reduced costs of revenue, show efforts towards financial efficiency. However, the incremental increase in R&D spending suggests continued investment in innovation and technology development, which could be positive if it leads to successful commercialization.
It's also worth noting the company's move to increase liquidity through a public offering, raising
The strategic partnerships and advancements mentioned, such as joining the John Deere supply base and completing the DriveMod Tugger deployment with Rivian, suggest that Cyngn is actively expanding its commercial footprint. The receipt of a 20th U.S. patent is indicative of a growing intellectual property portfolio, which can be critical in establishing a competitive advantage in the autonomous vehicle technology sphere.
The mention of 4x gains in efficiency achieved with a renewed contract and the development of next-gen AI-powered industrial autonomous vehicles highlight an evolution in Cyngn's product offerings. The emphasis on an ecosystem of partners and progress in technological capabilities like automatic unhitching could be pivotal for adoption in manufacturing and logistics sectors.
However, these operational highlights need to translate into sustainable revenue streams for them to be meaningful to investors. The transition from pilot programs to fleet purchases will be important for Cyngn’s growth and should be monitored closely by any stakeholder.
Recent Operating Highlights:
- Joined John Deere supply base
- Completed initial DriveMod Tugger deployment with Rivian
- Received a notice of allowance for a 20th
U.S. patent, with 19U.S. patents granted to-date - RobotLAB joined the Cyngn Distributor Network, establishing an initial fleet for sale to end customers
- Released first video footage of AI-powered autonomous DriveMod Tugger by Motrec
- Renewed deployment contract with
U.S. Continental; 4x gains in efficiency achieved - Released automatic unhitching capabilities for industrial autonomous vehicles
- Announced that the next-gen DriveMod Kit will harness Nvidia AI computers
"During the first quarter, we continued the momentum we made during 2023, marked by rapid strides toward broad commercialization," said Lior Tal, Cyngn's CEO. "Our success is bolstered by the strength of our ecosystem partners, particularly with MCL Industries who is positioned to build DriveMod Kits at scale, and Motrec as an OEM partner with a long history of providing vehicles to our target markets in manufacturing and logistics."
"In my recent Business Update, I shed some light on the challenges of the industrial sales cycle—especially for a new, safety-critical technology that offers the competitive advantages that automation does to large enterprises. We remain confident in our ability to grow sales with our target customers, as was exemplified by our achievement of Deere selecting Cyngn to supply DriveMod Tuggers. Similarly, we are working with several customers to advance through the pilot purchase phase and unlock the fleet purchases that will establish our foundation for growth. In parallel, we continue to pursue new prospective customers. Advancements in our mapping and deployment tools have streamlined the demonstration phase that is often required early in the sales process to just a few days, which significantly lowers our customer acquisition costs and enables us to convert more customers to advanced sales discussions."
Q1 2024 Financial Review:
- First quarter revenue was
$5.5 thousand $872.8 thousand - Total costs and expenses in the first quarter were
$6.0 million $6.7 million $367.5 thousand $502.9 thousand $124.6 thousand $102 thousand - Net loss for the first quarter was
$(6.0) million $(5.6) million $(0.08) $(0.15)
Balance Sheet Highlights:
Cyngn's cash and short-term investments at March 31, 2024 total
Subsequent to March 31, 2024, Cyngn completed a
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). For all terms referenced within, please refer to the company's annual report on Form 10-K with the SEC filed on March 7th, 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
Investor Contact:
Don Alvarez
investors@cyngn.com
Media Contact:
Luke Renner
media@cyngn.com
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 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 5,513 | $ | 872,800 | ||||
Costs and expenses | ||||||||
Cost of revenue | 113,776 | 616,694 | ||||||
Research and development | 3,154,695 | 3,030,056 | ||||||
General and administrative | 2,703,401 | 3,070,920 | ||||||
Total costs and expenses | 5,971,872 | 6,717,670 | ||||||
Loss from operations | (5,966,359) | (5,844,870) | ||||||
Other income, net | ||||||||
Interest income | 1,327 | 46,902 | ||||||
Other income (expense), net | (5,047) | 169,210 | ||||||
Total other income (expense), net | (3,720) | 216,112 | ||||||
Net loss | $ | (5,970,079) | $ | (5,628,758) | ||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.08) | $ | (0.15) | ||||
Weighted-average shares used in computing net loss per share attributable to common shareholders', basic and diluted | 77,081,105 | 37,685,413 | ||||||
CYNGN INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
March 31, | December 31, | ||||||
2024 | 2023 | ||||||
Assets | |||||||
Current assets | |||||||
Cash | $ | 2,192,398 | $ | 3,591,623 | |||
Short-term investments | 2,578,882 | 4,561,928 | |||||
Prepaid expenses and other current assets | 1,502,115 | 1,316,426 | |||||
Total current assets | 6,273,395 | 9,469,977 | |||||
Property and equipment, net | 1,652,382 | 1,486,672 | |||||
Right of use asset, net | 821,144 | 992,292 | |||||
Intangible assets, net | 1,045,412 | 1,084,415 | |||||
Total Assets | $ | 9,792,333 | $ | 13,033,356 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 248,677 | $ | 196,963 | |||
Accrued expenses and other current liabilities | 720,239 | 1,201,142 | |||||
Current operating lease liability | 724,654 | 682,718 | |||||
Total current liabilities | $ | 1,693,570 | 2,080,823 | ||||
Non-current operating lease liability | 127,572 | 317,344 | |||||
Total liabilities | $ | 1,821,142 | 2,398,167 | ||||
Commitments and contingencies (Note 12) | |||||||
Stockholders' Equity | |||||||
Preferred stock, Par | - | - | |||||
Common stock, Par | 884 | 648 | |||||
Additional paid-in capital | 173,958,005 | 170,652,160 | |||||
Accumulated deficit | (165,987,698) | (160,017,619) | |||||
Total stockholders' equity | 7,971,191 | 10,635,189 | |||||
Total Liabilities and Stockholders' Equity | $ | 9,792,333 | $ | 13,033,356 | |||
CYNGN INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (5,970,079) | $ | (5,628,758) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 225,590 | 228,031 | ||||||
Stock-based compensation | 654,024 | 924,898 | ||||||
Realized gain on short-term investments | (39,938) | (169,209) | ||||||
Gain (Loss) on asset | 52,723 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses, operating lease right-of-use assets, and other current assets | (185,689) | (258,859) | ||||||
Accounts payable | 51,714 | 287,656 | ||||||
Accrued expenses, lease liabilities, and other current liabilities | (628,739) | (761,207) | ||||||
Net cash used in operating activities | (5,840,394) | (5,377,448) | ||||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (214,238) | (447,739) | ||||||
Acquisition of intangible asset | (19,634) | (44,745) | ||||||
Purchase of short-term investments | (1,787,016) | (10,497,206) | ||||||
Proceeds from maturity of short-term investments | 3,810,000 | 13,742,000 | ||||||
Net cash provided by investing activities | 1,789,112 | 2,752,310 | ||||||
Cash flows from financing activities | ||||||||
Proceeds from at-the-market equity financing, net of issuance costs | $ | 2,652,110 | $ | - | ||||
Proceeds from public issuance of common stock and pre-funded warrants, net of offering costs | (53) | - | ||||||
Proceeds from exercise of stock options | - | 6,844 | ||||||
Net cash provided by financing activities | 2,652,057 | 6,844 | ||||||
Net decrease in cash and restricted cash | (1,399,225) | (2,618,294) | ||||||
Cash and restricted cash, beginning of period | 3,591,623 | 10,586,273 | ||||||
Cash and restricted cash, end of period | $ | 2,192,398 | $ | 7,967,979 | ||||
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SOURCE Cyngn
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