Cyngn, a developer of industrial autonomous vehicles, announced its financial results for the second quarter ended June 30, 2024. The company highlighted significant progress towards commercialization, driven by strategic partnerships and expanding sales channels.
The company’s CEO, Lior Tal, stated that the second quarter saw continued momentum from Q1, marked by rapid strides towards broad commercialization. Key achievements included joining the John Deere supply base, rolling out a partnership with RobotLAB, and receiving notices of allowance for its 20th and 21st U.S. patents for AI-powered autonomous vehicle solutions. Cyngn also emphasized its proprietary computer vision advancements with NVIDIA accelerated computing and expanded its dealer network to include Alta Equipment Group, a company with over $1 billion in annual sales.
The expansion of the dealer network has created new avenues for consistent commercial opportunities. Cyngn also saw positive results in its marketing efforts, doubling the number of marketing-sourced leads and reducing the acquisition cost of these leads by 67%. The company’s pipeline of potential customers remains strong, encompassing automotive manufacturers, tier-1 suppliers, defense contractors, and heavy equipment manufacturers.
Ben Landen, VP of Business Development, highlighted the importance of real-world testing for autonomous vehicle deployments. He explained that Cyngn vehicles must prove their reliability and safety at customer facilities before widespread adoption. While this process takes time, Cyngn’s robust testing and industry expertise have led to a growing pipeline and strong interest from potential customers.
Don Alvarez, Cyngn’s CFO, emphasized the company’s financial health, noting their clean balance sheet with no debt and their ability to regain compliance with Nasdaq’s minimum bid price. Alvarez expressed confidence in Cyngn’s future success, citing their strong foundation and strategic direction.
Financially, Cyngn’s second-quarter revenue was $8.7 thousand, down from $550.9 thousand in the same period last year. This decrease was attributed to a shift from NRE contracts to EAS software subscriptions. However, total costs and expenses for the quarter decreased from $7.0 million to $5.8 million, primarily due to reductions in cost of revenue, general and administrative expenses, and research and development expenses. The net loss for the quarter was $(5.8) million compared to $(6.4) million in the previous year.
Cyngn’s cash and short-term investments at June 30, 2024, totaled $7.0 million, and the company had no debt. Subsequent to June 30, 2024, the company sold 256,500 shares of common stock under the ATM Sales Agreement, generating gross proceeds of $1.8 million.
Cyngn continues to develop and deploy its scalable, differentiated autonomous vehicle technology for industrial organizations, addressing key challenges such as labor shortages, safety concerns, and increased demand for e-commerce. The company’s DriveMod Kit allows customers to adopt self-driving technology seamlessly and cost-effectively without the need to completely replace existing vehicle investments. Cyngn’s Enterprise Autonomy Suite, which includes DriveMod, Cyngn Insight, and Cyngn Evolve, provides comprehensive solutions for autonomous vehicle fleet management, teleoperation, analytics, and data-driven insights.
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