Cyngn Reports First Quarter 2023 Financial Results

MENLO PARK, Calif. Cyngn Inc. (the “Company” or “Cyngn”) (NASDAQ: CYN), a developer of AI-powered autonomous driving software solutions for industrial applications, today announced its financial results for the fiscal first quarter ended March 31, 2023.

Recent Operating Highlights:

• Announced automated robotics sales veteran Chris Wright as Head of Sales
• Delivered autonomous vehicles to U.S Continental Inc., the first commercial deployment of the Company’s autonomous stockchasers
• Hired Felix Singh as VP of Engineering Services to streamline deployment automation and expand customer technical support
• Announced the successful completion of Phase 2 of the multi-phase autonomous driving for mining project with a global mining vehicle OEM
• Released version 9.0 of the Company’s Enterprise Autonomy Suite (EAS)

“During the first quarter, we continued the strong progress we made during 2022,” said Lior Tal, Cyngn’s CEO. “We successfully completed the deployment of our autonomous stock chaser solution at U.S. Continental and our sales team saw significant interest from potential new customers for our commercially available products. Their focus for the rest of the year will be on securing additional, and larger, stockchaser deployments.

“We also made excellent progress on two funded projects to bring autonomous operations to forklifts and mining vehicles. We achieved new milestones on both projects and also increased the scope and length of the forklift engagement as we anticipate commercializing that project in 2024. The expansion of our product offering from stock chasers to forklifts and mining vehicles, are a testament to the power of EAS, how broadly it can be applied, and its huge potential. It is these strategic new development efforts in parallel with sales of our commercially released products that will continue to expand the industrial vehicle automation solutions that are available on the EAS platform.”

Financial Review

First Quarter ending March 31, 2023:

• Revenue was $0.9 million for the first quarter of 2023 compared to zero revenue in the corresponding quarter of 2022. Substantially, all of this revenue was related to two multi-phase non-recurring engineering (“NRE”) contracts related to projects that expand Cyngn’s technology to additional vehicle types - forklifts and mining vehicles.
• First quarter total costs and expenses were $6.7 million, up from $3.8 million in the prior year quarter, mainly due to increases in cost of revenue, personnel costs, professional and contractor fees, and subscription costs. The increase in costs and expenses was driven by an increase in Research and Development (“R&D”) expenses, which totaled $3.0 million compared to $1.7 million in the first quarter of the prior year. The increase was due to higher personnel costs incurred for additional engineering staff and external contractor costs to support the development of Cyngn’s technology. Operating expenses were also higher due to a $1.0 million increase in General and Administrative (“G&A”) expenses which totaled $3.1 million for the first quarter of 2023 due to the increase in personnel related costs and professional services necessary for public company reporting obligations, as well as supporting the overall growth of the Company.
• Net loss for the first quarter of 2023 was $5.6 million compared to $3.8 million in the corresponding quarter of 2022. Net loss per share was $0.17 for the first quarter of 2023, based on a weighted average of approximately 33.7 million basic and diluted shares outstanding in the first quarter. This compares to a first quarter 2022 basic and diluted net loss per share of $0.14 against a weighted average of approximately 26.9 million basic and diluted shares outstanding.

Balance sheet highlights:

Cyngn’s unrestricted cash and short-term investments at the end of the first quarter 2023 was $17.0 million, compared to $22.6 million at the end of 2022. Working capital was $17.4 million and total stockholders’ equity was $19.4 million at the end of the March quarter of 2023, compared to working capital of $22.4 million and total stockholders equity of $24.1 millionrespectively at the end of 2022.

Conference Call and Webcast Information:

Cyngn will host a conference call at 1.30 p.m. PDT/4.30 p.m. EDT today (Wednesday, May 10, 2023), during which management will discuss the results of the fiscal first quarter ended March 31, 2023.

A live webcast of the call will be available on the Cyngn website under “Events & Presentations” or by clicking here.

To participate via telephone:

Toll Free: 877-407-0890

International: 201-389-0918

Those who are unable to attend the live conference call may access the recording, approximately one hour 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/).