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 unaudited financial
results for the third quarter ended September 30, 2021.
Background on Cyngn – A Company Targeting Full-scale
Commercialization and Recurring Revenue Streams
Cyngn is a pre-revenue company developing the Enterprise
Autonomy Suite (“EAS”) that combines advanced in-vehicle autonomous
driving technology with leading supporting technologies like data
analytics, fleet management, cloud, and connectivity. EAS provides
a differentiated solution that the Company believes will drive
pervasive proliferation of industrial autonomous vehicles and
create value for customers at every stage of their journey towards
full automation and the adoption of Industry 4.0.
EAS is currently available as a beta release, and both the
components and the combined solution are still under development.
Components of EAS have previously been used for a paid customer
trial and pilot deployments; EAS is currently available to select
beta customers. The Company expects EAS to continually be developed
and enhanced according to evolving customer needs, which will take
place concurrently while other completed features of EAS are
commercialized.
Cyngn expects annual research and development (“R&D”)
expenditures in the foreseeable future to equal or exceed that of
2019 and 2020. The Company also expects that limited paid pilot
deployments in 2022 and 2023 will offset some of the ongoing
R&D costs of continually developing EAS. The Company is
targeting for scaled deployments to begin in 2024.
Recent Operating Highlights:
- On October 13, 2021, Cyngn announced its partnership with
Columbia Vehicle Group. The partnership marks a key milestone in
Cyngn’s roadmap to bringing scalable, secure, and reliable
autonomous vehicle technologies to industrial enterprises. The
pairing of Cyngn’s DriveMod with Columbia’s fleet of electric
utility vehicles means material handling organizations can begin to
implement autonomy today, either by retrofitting their existing
fleets or by buying new industrial vehicles with DriveMod
pre-installed.
- On October 19, 2021, Cyngn’s registration statement on Form S-1
(File No. 333-259278) related to its initial public offering
(“IPO”) was declared effective by the U.S. Securities and Exchange
Commission (“SEC”). The Company’s common stock began trading on the
Nasdaq Capital Market on October 20, 2021. The IPO closed on
October 22, 2021. As a result, the Company’s unaudited consolidated
financial statements as of September 30, 2021 do not reflect the
impact of the IPO, which generated net proceeds of $23.3 million
after deducting underwriting discounts, commissions and offering
expenses.
Management Commentary:
Lior Tal, Chairman and CEO of Cyngn, stated, “The last three
months have been a landmark period in Cyngn’s journey, with the
demand for industrial autonomous driving solutions serving as a
catalyst for the development of our EAS. Subsequent to the quarter
ended September 30, 2021, we were pleased to have successfully
completed our IPO with the proceeds being immediately deployed into
our daily operations and research and development of EAS. In
addition to adding resources to our R&D team, our goal in the
coming months will be to further develop our eco-system of
partnerships like the one we announced with Columbia Vehicle Group
last month and to deploy DriveMod, our end-to-end in-vehicle
solution, on the various industrial vehicles of our OEM partners.
These partnerships and subsequent beta deployments are key
milestones as we work to productize our autonomous vehicle
technologies toward full-scale commercialization of EAS.”
GAAP Financial Review for the Third Quarter Ended September
30, 2021:
- Total operating expenses were $2.1 million for the quarter
ended September 30, 2021, compared to $1.8 million in the
prior-year quarter. The increase was primarily due to $0.7 million
increase in general and administrative (“G&A”) expense related
to costs incurred for additional personnel and professional
services necessary to support the Company’s IPO and becoming a
public company. The increase was partially offset by decreased
R&D expense related to a decrease in personnel engaged in the
R&D of the Company’s AV technology in 2021 compared to
pre-COVID-19 headcount levels. The Company plans to continue to
restore the appropriate level of engineering and other personnel to
support its R&D efforts and therefore expects R&D costs to
increase over time.
- Net loss was $2.1 million for the quarter ended September 30,
2021, compared to net loss of $1.8 million in the prior-year
quarter. Net loss per share on a basic and diluted basis was $2.17
for the quarter ended September 30, 2021, compared to net loss per
share on a basic and diluted basis of $1.85 per share in the
prior-year quarter.
Balance Sheet Highlights:
As of September 30, 2021, Cyngn’s cash and cash equivalents
including restricted cash were $1.7 million, working capital was
$1.5 million, and total stockholders’ equity was $0.03 million;
compared to cash and cash equivalents of $6.5 million, working
capital of $6.1 million and total stockholders’ equity of $5.6
million, respectively, as of December 31, 2020.
Including the proceeds from the IPO in October 2021, pro forma
cash and cash equivalents including restricted cash, working
capital and total stockholders’ equity as of September 30, 2021,
are $25.0 million, $24.8 million and $23.3 million,
respectively.
For more details on Cyngn’s financial results for the quarter
ended September 30, 2021, please refer to the Company’s Quarterly
Report on Form 10-Q to be filed with the SEC, which is 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, November 17, 2021), during which management will
discuss the results of the third quarter ended September 30, 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): +1 (877) 407-9753
International (Toll): +1 (201) 493-6739
The conference call can also be accessed via webcast at:
https://78449.themediaframe.com/dataconf/productusers/cyn/mediaframe/47383/indexl.html.
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 www.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 September 30, December 31,
2021
2020
(Unaudited) Assets Current assets Cash and cash equivalents
$ 1,650,684
$ 6,056,190
Restricted cash
50,000
400,000
Prepaid expenses and other current assets
317,783
48,852
Total current assets
2,018,467
6,505,042
Property and equipment, net
70,197
133,805
Intangible assets, net
31,783
34,383
Total Assets
$ 2,120,447
$ 6,673,230
Liabilities and Stockholders' Equity Current liabilities
Accounts payable
269,231
73,016
Accrued expenses and other current liabilities
218,588
307,402
Total current liabilities
487,819
380,418
Note payable, Payroll Protection Program
1,602,936
695,078
Total liabilities
2,090,755
1,075,496
Stockholders' Equity Convertible preferred stock, Par
$0.00001; 21,982,491shares authorized, issued and outstanding as of
December31, 2020 and 2019, respectively
220
220
Common stock, Par $0.00001; 42,000,000 sharesauthorized, 966,210
and 951,794 shares issued andoutstanding as of September 30, 2021
and December 31,2020, respectively
10
10
Additional paid-in capital
114,466,043
114,291,505
Accumulated deficit
(114,436,581)
(108,694,001)
Total stockholders' equity
29,692
5,597,734
Total Liabilities and Stockholders' Equity
$ 2,120,447
$ 6,673,230
CYNGN INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED) Three
months ended September 30, Nine months ended September
30,
2021
2020
2021
2020
Revenue
$
-
$
-
$
-
Operating expenses: Research and development
1,151,109
1,496,883
2,917,295
4,175,302
General and administrative
973,943
267,343
2,851,061
1,947,481
Total operating expenses
2,125,052
1,764,226
5,768,356
6,122,782
Loss from operations
(2,125,052)
(1,764,226)
(5,768,356)
(6,122,782)
Other income, net Interest (expense) income
(3,989)
1,604
(10,032)
35,580
Other income
29,856
450
35,808
11,119
Total other income, net
25,867
2,054
25,776
46,699
Net loss
$
(2,099,185)
$
(1,762,172)
$
(5,742,580)
$
(6,076,084)
Net loss per share attributable toordinary shareholders,
basic anddiluted
$
(2.17)
$
(1.85)
$
(5.94)
$
(6.38)
Weighted-average shares used incomputing net loss per
shareattributable to ordinary shareholders,basic and diluted
966,210
951,794
966,210
951,794
CYNGN INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) Nine months
ended September 30,
2021
2020
Cash flows from operating activities Net loss
$
(5,742,580)
$
(6,076,084)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
68,597
68,727
Stock-based compensation
166,458
130,521
Gain in disposal of assets
(31,356)
-
Changes in operating assets and liabilities: Prepaid expenses and
other current assets
(268,931)
33,440
Accounts payable and accrued expenses
196,215
(108,944)
Other current liabilities
(88,812)
13,985
Net cash used in operating activities
(5,700,409)
(5,938,354)
Cash flows from investing activities Purchase of
property, plant, and equipment
(18,224)
-
Disposal of assets
47,189
-
Net cash used in investing activities
28,965
-
Cash flows from financing activities Proceeds from
note payable, inclusive of accrued interest
907,858
698,322
Proceeds from exercise of stock options
8,080
623
Net cash provided by financing activities
915,938
698,945
Net decrease in cash and cash equivalents and restricted
cash
(4,755,506)
(5,239,409)
Cash and cash equivalents and restricted cash, beginning of period
6,456,190
13,680,550
Cash and cash equivalents and restricted cash, end of period
$
1,700,684
$
8,441,141
Supplemental disclosure of cash flow: Cash paid during the
period for interest and taxes
$
-
$
-
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version on businesswire.com: https://www.businesswire.com/news/home/20211117006250/en/
Carolyne Sohn Vice President, The Equity Group
csohn@equityny.com (415) 568-2255
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