Cyngn reports Second Quarter 2024 financial results
Recent Operating Highlights:
- Joined John Deere supply base
- Rolled out a partnership with RobotLAB, adding the autonomous DriveMod Tugger vehicles to its portfolio of 200+ robots
- Received a notice of allowance for a 20th U.S. patent and 21st U.S. patent for its AI-powered autonomous vehicle solutions
- Highlighted its proprietary computer vision advancements with NVIDIA accelerated computing
- Expanded the Cyngn Dealer Network to include Alta Equipment Group, with more than $1 billion in annual sales
Cyngn, developer of industrial autonomous vehicles, today announced financial results for its second quarter, which ended Jun 30, 2024.
Lior Tal
“During the second quarter, we continued the momentum we made in Q1, marked by rapid strides toward broad commercialization,” said Cyngn CEO Lior Tal. “In addition to the progress we made with John Deere, another key priority has been to expand our sales channels to access more opportunities via established dealers and partners. We are well on our way toward bringing Cyngn’s autonomous industrial vehicle products to even more facilities by partnering with experienced material handling and automation leaders like Motrec, Alta, and RobotLAB.
“Our expanding dealer network yields channels that consistently deliver commercial opportunities. On the advertising side, we doubled the number of marketing-sourced leads and decreased the acquisition cost of these opportunities by 67%.
“Overall, our pipeline is very healthy. We continue to make progress with automotive manufacturers and their tier-1 suppliers, defense contractors, and heavy equipment manufacturers. We are largely engaging with known brands in the Fortune 500, and we will continue to work closely with our customers to share these exciting logos with the public when we can.”
Ben Landen
“Autonomous vehicle deployments have a long sales cycle,” said Ben Landen, VP of Business Development. Vehicles need to be put through their paces at customer facilities to ensure they will operate as reliably and safely as a well-trained human driver. Cyngn passes this test easily, but it takes time. These big organizations with well-established workflows need to see for themselves that Cyngn vehicles are the best employees they’ve ever had.
“By all accounts, this process is working. Our pipeline is growing, we keep adding industry veterans with extensive experience to our sales team, and we have the resolve and partners to stay the course in our pursuit of the significant industrial automation market in front of us.
“We look forward to providing additional updates and continuing to increase momentum.”
“Regaining compliance with Nasdaq’s minimum bid price was a significant priority,” added Don Alvarez, Cyngn’s CFO. “Our balance sheet remains clean with no debt, and these factors underscore our financial health and position us favorably as we move forward. Our solid foundation and strategic direction are positioning us for a successful future.”
When reviewing the financial information below, note that all share and per share information, Common stock, and Additional paid-in capital have been restated to reflect the 1-for-100 reverse stock split effected on July 3, 2024.
Q2 2024 Three-Month Financial Review:
- The second quarter’s revenue was $8.7 thousand compared to $550.9 thousand in the second quarter of 2023. In the second quarter of 2024, revenue consisted of EAS software subscriptions from DriveMod Stockchaser vehicle deployments, whereas prior year revenue resulted from NRE contracts.
- Total costs and expenses in the second quarter were $5.8 million, down from $7.0 million in the second quarter of 2023. This decrease was primarily due to a $447.7 thousand decrease in cost of revenue, a $239.1 thousand reduction in G&A expenses, and a decrease in R&D expenses of $538.7 thousand. The decrease in the cost of revenue is driven by the lower costs associated with EAS revenue compared to the NRE contracts in 2023. The decrease in G&A expenses is due to a decrease in personnel costs, reduced premiums for Director and Office Liability Insurance, and spending improvements on general office expenses. The decrease in R&D expense was primarily driven by capitalizing costs for specific customers and capitalizing costs related to the development of software. The headcount at the end of the second quarter of 2024 was 85 versus 75 at the end of the second quarter of 2023.
- Net loss for the second quarter was $(5.8) million, compared to $(6.4) million in the corresponding quarter of 2023. The second quarter of 2024 net loss per share was $(4.11), based on basic and diluted weighted average shares outstanding of approximately 1,416.8 thousand. This compares to a net loss per share of $(12.97) in the second quarter of 2023, based on approximately 489.9 thousand basic and diluted weighted average shares outstanding.
Q2 2024 Six-Month Financial Review:
- Year-to-date second-quarter revenue was $14.2 thousand, compared to $1.4 million in the second quarter of 2023. Second-quarter 2024 revenue consisted of EAS software subscriptions from DriveMod Stock chaser vehicle deployments, whereas prior-year revenue was the result of NRE contracts.
- Total costs and expenses in the second quarter were $11.8 million, down from $13.8 million in the second quarter of 2023. This decrease was primarily due to a $950.6 thousand decrease in cost of revenue, a $606.6 thousand reduction in G&A expenses, and a decrease in R&D expenses of $414.1 thousand. The decrease in the cost of revenue is driven by the lower costs associated with EAS revenue compared to the NRE contracts in 2023. The decrease in G&A expenses is due to a decrease in personnel costs, reduced premiums for Director and Office Liability Insurance, and spending improvements on general office expenses. The decrease in R&D expense was primarily driven by capitalizing costs for specific customers and capitalizing costs related to the development of software.
- Net loss for the second quarter was $(11.8) million, compared to $(12.0) million in the corresponding quarter of 2023. The second quarter of 2024 net loss per share was $(12.15), based on basic and diluted weighted average shares outstanding of approximately 970.3 thousand. This compares to a net loss per share of $(24.48) for the first six months of 2023, based on approximately 489.4 thousand basic and diluted weighted average shares outstanding during the period.
Balance Sheet Highlights*:
Cyngn’s cash and short-term investments at June 30, 2024, total $7.0 million compared to $8.2 million as of December 31, 2023. At the end of the same period, working capital was $6.1 million, and total stockholders’ equity was $9.7 million, as compared to year-end working capital of $7.4 million and total stockholders’ equity of $10.6 million, respectively, as of December 31, 2023. The Company had no debt as of June 30, 2024, and December 31, 2023.
Subsequent to June 30, 2024, the Company sold 256,500 shares of common stock under the ATM Sales Agreement for gross proceeds of $1.8 million. After giving the effect of the net proceeds of $1.8 million, Cyngn’s pro-forma cash and short-term investments, working capital, and total stockholders’ equity were $8.8 million, $7.9 million, and $11.5 million, respectively.
