Company to Host Conference Call Today at 2 p.m. PT/5 p.m. ET
Cyngn (or the “Company”) (NASDAQ: CYN), a developer of
innovative autonomous driving software solutions for industrial and
commercial enterprises, today announced its financial results for
the fourth quarter and year ended December 31, 2021.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220323005835/en/
Cyngn announces its financial results for
the fourth quarter and year ended December 31, 2021, after the
close of the stock market on March 23, 2022. The Company is also
hosting its earnings call that same day. Source: Cyngn
Recent Operating Highlights:
The following operational updates occurred subsequent to
December 31, 2021:
- On January 10, 2022, Cyngn announced that Global Logistics and
Fulfillment LLC (“GLF”), a premier warehousing and fulfillment
provider, engaged the Company as its exclusive autonomous vehicle
(“AV”) solutions provider following a successful 2021 pilot
deployment at GLF’s Las Vegas distribution center, which included
Cyngn’s AV technology integrated into the Stockchaser from Columbia
Vehicle Group (“Columbia”).
- On January 18, 2022, Cyngn announced that, together with its
partner Columbia, an electric vehicle manufacturer serving
industrial and commercial environments, the Company began
production of a fleet of autonomous Stockchasers powered by Cyngn’s
Enterprise Autonomy Suite (“EAS”).
- On February 3, 2022, Cyngn and Greenland Technologies Holding
Corporation (Nasdaq: GTEC) (“Greenland”), a technology developer
and manufacturer of electric industrial vehicles and drivetrain
systems for material handling machinery and vehicles, announced a
strategic partnership whereby Cyngn will bring its self-driving
vehicle capabilities to Greenland forklifts with its proprietary
EAS enabling Greenland forklifts to switch easily between fully
autonomous, manual, and remotely-controlled modes.
- On February 15, 2022, Cyngn announced the filing of a patent
application for DriveMod Kit, a complete autonomy integration
package designed to streamline the retrofitting of existing
industrial vehicles or installation into newly manufactured
vehicles. DriveMod Kit would enable faster and more cost-effective
deployments of Cyngn’s industrial autonomy solutions, supporting
scalability and rapid adoption of AV technologies by industrial and
commercial enterprises.
Lior Tal, Chairman and CEO of Cyngn, stated, “In the months
since October 2022 when Cyngn completed its IPO and became a public
company, we have made notable progress toward productizing and
commercializing EAS, remaining on schedule to begin scaled
deployments in 2024 as previously disclosed. In January, GLF
selected Cyngn as its exclusive AV solutions provider, marking a
significant step forward in our partnership with Columbia. This was
the result of a series of deployments in the second half of 2021,
which included Cyngn’s AV technology integrated into Columbia’s
Stockchaser. We look forward to additional deployments with GLF
this year, especially as we partner to bring new facilities that
are geared towards automation online. We also deepened our
partnership with Columbia, kicking off production of autonomy-ready
Stockchasers powered by EAS. This ensures that the best possible
version of a Columbia Stockchaser is coming off the line, and it is
ready for the integration of the DriveMod Kit for which we filed a
patent application last month. Finally, we announced our
partnership with Greenland where we will be embarking on our
forklift automation effort. We are excited to be working with a
leader in the electric industrial vehicle and equipment space,
bringing self-driving capabilities to forklifts, which are one of
the most ubiquitous material handling vehicles out there.
“Cyngn is pleased to be helping our customers make tangible
steps toward achieving their ESG and sustainability goals. In
addition to increasing operational efficiencies while enhancing
safety measures for employees by implementing self-driving
solutions, organizations may also decrease their energy footprint
by utilizing electric vehicles, such as Greenland’s electric
forklifts, powered by Cyngn technology.
“Another key priority for us is to continue building out our
team here at Cyngn, something we believe is critical to the
Company’s long-term success. We are focused on ensuring we have the
necessary people in place to support the ongoing development,
productization and commercialization of EAS, as well as the
additional staff needed to support our status as a public company.
In the months ahead, we anticipate expanding upon our existing
network of key strategic partners allowing us to leverage the
strengths, dealer networks, servicing capabilities, and incumbency
of organizations that are already ingrained in the material
handling space. This will allow us to develop our initial core
paying customer base that will serve as the foundational path to
recurring revenues.”
GAAP Financial Review
The Company did not generate any revenue for the years ended
December 31, 2021, and 2020.
Fourth Quarter Ended December 31, 2021:
- Total operating expenses were $3.6 million for the quarter
ended December 31, 2021, compared to $2.3 million in the prior-year
quarter. The increase was primarily due to a $0.5 million increase
in R&D expense related to costs incurred for additional
engineering staff and a $1.1 million increase in general and
administrative (“G&A”) expense related to costs incurred for
additional personnel and professional services necessary to support
becoming a public company. The Company expects R&D costs to
continue to increase as it works to restore the appropriate level
of engineering and other personnel to support its R&D
efforts.
- Net loss was $2.1 million for the quarter ended December 31,
2021, compared to net loss of $2.3 million in the prior-year
quarter. The increase in total operating expenses was offset by an
increase in other income, which was primarily attributed to the
forgiveness of the Paycheck Protection Program (“PPP”) loans by the
Small Business Administration (“SBA”) amounting to $1.6 million
during the period. Net loss per share on a basic and diluted basis
was $0.10 based on approximately 20.4 million weighted average
shares for the quarter ended December 31, 2021, compared to net
loss per share on a basic and diluted basis of $2.38 per share
based on approximately 1.0 million weighted average shares in the
prior-year quarter.
Year Ended December 31, 2021:
- Total operating expenses were $9.4 million for the year ended
December 31, 2021, compared to $8.4 million in the prior year. The
increase was primarily due to a $1.0 million increase in G&A
expense related to a $1.0 million increase in stock-based
compensation and increased costs incurred for additional personnel
and professional services necessary to support the Company’s IPO
and becoming a public company, partially offset by a $0.1 million
decrease in R&D expense related to a decrease in R&D
personnel compared to pre-COVID-19 headcount levels.
- Net loss was $7.8 million for the year ended December 31, 2021,
compared to net loss of $8.3 million in the prior year. The
decrease was primarily the result of a $1.6 million increase in
other income attributed to the forgiveness of the PPP loans by the
SBA during the year. Net loss per share on a basic and diluted
basis was $1.33 based on approximately 5.9 million weighted average
shares for the year ended December 31, 2021, compared to net loss
per share on a basic and diluted basis of $8.76 per share based on
approximately 1.0 million weighted average shares in the prior
year.
Balance Sheet Highlights:
As of December 31, 2021, Cyngn’s cash and cash equivalents were
$21.9 million, working capital was $22.1 million, and total
stockholders’ equity was $22.2 million; compared to cash and cash
equivalents of $6.1 million, working capital of $6.1 million and
total stockholders’ equity of $5.6 million, respectively, as of
December 31, 2020.
For more details on Cyngn’s financial results for the year ended
December 31, 2021, please refer to the Company’s Annual Report on
Form 10-K 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, March 23, 2022), during which management will discuss
the results of the fourth quarter and year ended December 31, 2021.
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 showcasing its autonomous driving technology in action,
customer interviews, long-term vision and more.
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/.
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, acquisition
strategy, ability to deliver sustainable long-term value, ability
to respond to the changing environment, operational focus,
strategic growth plans and merger integration efforts, 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 SEC, including, without limitation the
risk factors discussed in the Company’s Prospectus. 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
December 31,
December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
21,945,981
$
6,056,190
Restricted cash
50,000
400,000
Prepaid expenses and other current
assets
525,304
48,852
Total current assets
22,521,285
6,505,042
Property and equipment, net
102,787
133,805
Intangible assets, net
30,917
34,383
Total Assets
$
22,654,989
$
6,673,230
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
112,271
73,016
Accrued expenses and other current
liabilities
295,156
307,402
Total current liabilities
407,427
380,418
Note payable, Payroll Protection
Program
-
695,078
Total liabilities
407,427
1,075,496
Commitments and contingencies
Stockholders' Equity
Convertible Series A, B and C preferred
stock, Par $0.00001; 10,000,000 authorized as of December 31, 2021
and 21,982,491 shares authorized, issued and outstanding as of
December 31, 2020
-
220
Common stock, Par $0.00001; 100,000,000
shares authorized, 26,487,680 shares issued and outstanding as of
December 31, 2021 and 42,000,000 shares authorized, 951,794 shares
issued and outstanding as of December 31, 2020
265
10
Stock Warrants Outstanding
170,397
-
Additional paid-in capital
138,570,430
114,291,505
Accumulated deficit
(116,493,530)
(108,694,001)
Total stockholders' equity
22,247,562
5,597,734
Total Liabilities and Stockholders'
Equity
$
22,654,989
$
6,673,230
CYNGN INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three months ended December 31, Year ended
December 31,
2021
2020
2021
2020
Revenue
$
-
$
-
$
-
$
-
Operating expenses: Research and development
2,003,867
1,158,942
4,990,407
5,120,979
General and administrative
1,627,835
1,091,904
4,409,651
3,252,649
Total operating expenses
3,631,702
2,250,846
9,400,058
8,373,628
Loss from operations
(3,631,702
)
(2,250,846
)
(9,400,058
)
(8,373,628
)
Other income, net Interest (expense) income
452
4,261
(9,580
)
39,841
Other (expense) income
(28,635
)
(16,139
)
7,173
(5,020
)
PPP Loan forgiveness
1,602,936
-
1,602,936
-
Total other income, net
1,574,753
(11,878
)
1,600,529
34,821
Net loss
$
(2,056,949
)
$
(2,262,724
)
$
(7,799,529
)
$
(8,338,807
)
Net loss per share attributable to ordinary shareholders,
basic and diluted
$
(0.10
)
$
(2.38
)
$
(1.33
)
$
(8.76
)
Weighted-average shares used in computing net loss per
shareattributable to ordinary shareholders, basic and diluted
20,384,421
951,794
5,861,730
951,794
CYNGN INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year ended December 31,
2021
2020
Cash flows from operating activities Net loss
$
(7,799,529
)
$
(8,338,807
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
85,855
159,040
Stock-based compensation
1,139,247
131,732
Gain on disposal of asset
(31,356
)
-
Gain on forgiveness of Paycheck Protection Program loans
(1,602,936
)
-
Changes in operating assets and liabilities: Prepaid
expenses and other current assets
(476,452
)
33,774
Accounts payable
39,255
(43,335
)
Accrued expenses and other current liabilities
3,496
137,535
Net cash used in operating activities
(8,642,419
)
(7,920,061
)
Cash flows from investing activities Purchase of
property and equipment
(62,204
)
-
Disposal of assets
42,189
-
Net cash used in investing activities
(20,015
)
-
Cash flows from financing activities Proceeds from
issuance of common stock upon initial public offering, net of
offering costs
23,295,890
-
Proceeds from PPP Notes
892,115
695,078
Proceeds from exercise of stock options
14,220
623
Net cash provided by financing activities
24,202,225
695,701
Net increase/(decrease) in cash and cash equivalents and
restricted cash
15,539,791
(7,224,360
)
Cash and cash equivalents and restricted cash, beginning of year
6,456,190
13,680,550
Cash and cash equivalents and restricted cash, end of year
$
21,995,981
$
6,456,190
Supplemental disclosure of cash flow: Cash paid during the
year for taxes
$
16,719
$
10,813
Supplemental disclosure of non-cash
financing activities:
The Company’s PPP loan was forgiven by the SBA in the amount
of $1,602,936.
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version on businesswire.com: https://www.businesswire.com/news/home/20220323005835/en/
Carolyne Sohn Vice President, The Equity Group
csohn@equityny.com (415) 568-2255
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