87.6 F
Miami
HomeBusinessCyngn Reports 2023 Fourth Quarter and Year-End Financial Results

Cyngn Reports 2023 Fourth Quarter and Year-End Financial Results

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:

“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, [email protected]; 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

SOURCE Cyngn



Originally published at https://www.prnewswire.com/news-releases/cyngn-reports-2023-fourth-quarter-and-year-end-financial-results-302081922.html
Images courtesy of https://pixabay.com

- Part of VUGA -marketing agency

latest articles

gossip tv free

explore more

free fashion tv