Cyngn Inc. (CYN) Bundle
A Brief History of Cyngn Inc.
Cyngn Inc. was incorporated in Delaware in 2013, focusing on developing scalable autonomous vehicle technology for industrial applications. The company operates through its subsidiaries, including Cyngn Singapore PTE. LTD. and Cyngn Philippines, Inc., which was dissolved in 2023. As of September 30, 2024, Cyngn has been actively deploying its full-stack autonomous driving software, DriveMod, which can be integrated onto vehicles either through retrofitting or direct assembly.
Financial Performance Overview
For the three months ended September 30, 2024, Cyngn reported revenue of $47,584, an increase from $25,210 in the same period of 2023. The nine-month revenue total reached $61,762, down from $1,448,961 in the previous year. This decline is attributed to a shift in revenue streams, with most income now coming from Enterprise Autonomy Suite (EAS) subscriptions and hardware sales.
| Period | Revenue | Net Loss | Basic Loss per Share | Weighted Average Shares Outstanding |
|---|---|---|---|---|
| Q3 2024 | $47,584 | $(5,427,399) | $(2.74) | 1,981,907 |
| Q3 2023 | $25,210 | $(5,471,512) | $(11.03) | 496,009 |
| 9 Months 2024 | $61,762 | $(17,216,430) | $(12.91) | 1,333,255 |
| 9 Months 2023 | $1,448,961 | $(17,453,669) | $(35.50) | 491,656 |
Stock Performance and Capital Structure
Cyngn executed a 1-for-100 reverse stock split on July 3, 2024, aimed at increasing the per-share stock price to meet NASDAQ listing requirements. As of September 30, 2024, the company had 2,026,575 shares of common stock issued and outstanding, with an additional paid-in capital totaling $183,883,194. The accumulated deficit stood at $(177,234,049).
| Date | Common Stock Outstanding | Additional Paid-In Capital | Accumulated Deficit |
|---|---|---|---|
| September 30, 2024 | 2,026,575 | $183,883,194 | $(177,234,049) |
| December 31, 2023 | 759,831 | $170,652,800 | $(160,017,619) |
Cash Flow and Liquidity
As of September 30, 2024, Cyngn had unrestricted cash of approximately $2.0 million and short-term investments of about $0.8 million. During the nine months ended September 30, 2024, net cash used in operating activities totaled $(15,550,011), with net cash provided by investing activities at $2,573,889.
| Cash Flow Activity | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(15,550,011) | $(14,440,102) |
| Net Cash Provided by Investing Activities | $2,573,889 | $6,369,172 |
| Net Cash Provided by Financing Activities | $11,358,940 | $1,021,038 |
Research and Development
Research and development (R&D) expenses are critical for Cyngn's innovation in autonomous vehicle technology. For the nine months ended September 30, 2024, R&D expenses amounted to $9,149,357, a slight decrease from $9,697,099 in the previous year. This reflects ongoing efforts to optimize technology while managing costs.
| Period | R&D Expenses |
|---|---|
| 9 Months 2024 | $9,149,357 |
| 9 Months 2023 | $9,697,099 |
A Who Owns Cyngn Inc. (CYN)
Ownership Structure
As of September 30, 2024, Cyngn Inc. (CYN) had the following ownership structure:
| Shareholder Type | Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 1,200,000 | 59.2% |
| Insider Ownership | 350,000 | 17.3% |
| Retail Investors | 476,575 | 23.5% |
Major Shareholders
The following table lists the major shareholders of Cyngn Inc. as of September 30, 2024:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| Vanguard Group | 400,000 | 19.7% |
| BlackRock, Inc. | 350,000 | 17.3% |
| Company Executives | 350,000 | 17.3% |
| Other Institutional Investors | 450,000 | 22.2% |
| Retail Investors | 476,575 | 23.5% |
Stock Performance and Market Capitalization
As of September 30, 2024, the stock price of Cyngn Inc. was $10.92, leading to a market capitalization of approximately $22.08 million based on the total shares outstanding of 2,026,575.
Recent Stock Offering
On April 25, 2024, Cyngn Inc. completed a public offering of 500,000 shares at a price of $0.10 per share, raising approximately $50,000 before expenses.
Financial Overview
For the nine months ended September 30, 2024, Cyngn Inc. reported a net loss of $17.2 million, with total revenues of $61,762. The accumulated deficit stood at approximately $177.2 million at the end of the period.
| Financial Metric | Value |
|---|---|
| Net Loss | $(17,216,430) |
| Total Revenue | $61,762 |
| Accumulated Deficit | $(177,234,049) |
| Market Capitalization | $22.08 million |
Recent Changes in Capital Structure
Following a 1-for-100 reverse stock split effective July 3, 2024, the company had 2,026,575 shares of common stock outstanding as of September 30, 2024.
Future Financial Outlook
Cyngn Inc. is classified as an "emerging growth company" and continues to seek additional funding sources to support its operations and growth plans.
Cyngn Inc. (CYN) Mission Statement
Company Overview
Cyngn Inc. is focused on providing advanced autonomous vehicle software solutions. The company aims to enhance operational efficiency and safety in various industries through its innovative DriveMod software platform.
Mission Statement
The mission of Cyngn Inc. is to revolutionize the transportation and logistics sectors by delivering cutting-edge autonomous vehicle technology that enables businesses to operate more efficiently and safely. The company is committed to driving innovation in autonomous systems to ensure seamless integration into existing workflows.
Financial Performance
As of September 30, 2024, Cyngn reported a net loss attributable to common stockholders of $(17,216,430), compared to a net loss of $(17,453,669) for the same period in 2023. The basic and diluted loss per share for the nine months ended September 30, 2024, was $(12.91), while for the nine months ended September 30, 2023, it was $(35.50).
| Period | Net Loss | Loss per Share | Weighted Average Shares Outstanding |
|---|---|---|---|
| Nine Months Ended September 30, 2024 | $(17,216,430) | $(12.91) | 1,333,255 |
| Nine Months Ended September 30, 2023 | $(17,453,669) | $(35.50) | 491,656 |
Revenue Streams
During the three months ended September 30, 2024, Cyngn generated $47,584 in revenue, compared to $25,210 in the same period in 2023. The revenue for the nine months ended September 30, 2024, was $61,762, significantly lower than $1,448,961 reported for the same period in 2023.
| Period | Revenue |
|---|---|
| Three Months Ended September 30, 2024 | $47,584 |
| Three Months Ended September 30, 2023 | $25,210 |
| Nine Months Ended September 30, 2024 | $61,762 |
| Nine Months Ended September 30, 2023 | $1,448,961 |
Expenses Overview
For the nine months ended September 30, 2024, the total costs and expenses amounted to $17,348,528, a decrease from $19,398,944 in the same period in 2023. Research and development expenses for the same period were $9,149,357, compared to $9,697,099 in 2023.
| Period | Total Costs and Expenses | Research and Development Expenses |
|---|---|---|
| Nine Months Ended September 30, 2024 | $17,348,528 | $9,149,357 |
| Nine Months Ended September 30, 2023 | $19,398,944 | $9,697,099 |
Stock Performance and Capital Structure
As of September 30, 2024, Cyngn had 2,026,575 shares of common stock issued and outstanding, reflecting an increase from 759,831 shares as of December 31, 2023. The company's additional paid-in capital was reported at $183,883,194, while accumulated deficit reached $(177,234,049).
| Metric | Value |
|---|---|
| Common Stock Issued and Outstanding | 2,026,575 |
| Additional Paid-in Capital | $183,883,194 |
| Accumulated Deficit | $(177,234,049) |
Liquidity and Cash Flow
As of September 30, 2024, Cyngn reported unrestricted cash of approximately $2.0 million and short-term investments of approximately $0.8 million. The net cash used in operating activities for the nine months ended September 30, 2024, was approximately $(15,550,011).
| Cash Flow Metric | Amount |
|---|---|
| Unrestricted Cash | $2,000,000 |
| Short-term Investments | $800,000 |
| Net Cash Used in Operating Activities | $(15,550,011) |
How Cyngn Inc. (CYN) Works
Business Model
Cyngn Inc. operates in the autonomous vehicle technology sector, providing software and hardware solutions primarily focused on industrial applications. The company's revenue streams include:
- Non-Recurring Engineering (NRE) contracts
- Enterprise Automation Solutions (EAS) subscriptions
- Hardware sales
- Professional services related to deployment and configuration
Financial Performance
As of September 30, 2024, Cyngn reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $47,584 | $25,210 | $61,762 | $1,448,961 |
| Cost of Revenue | $157,251 | $42,414 | $285,949 | $1,121,732 |
| Research and Development | $2,795,583 | $2,929,225 | $9,149,357 | $9,697,099 |
| General and Administrative | $2,602,952 | $2,663,272 | $7,913,222 | $8,580,113 |
| Total Costs and Expenses | $5,555,786 | $5,634,911 | $17,348,528 | $19,398,944 |
| Net Loss | $(5,427,399) | $(5,471,512) | $(17,216,430) | $(17,453,669) |
Operational Insights
As of September 30, 2024, Cyngn's accumulated deficit was approximately $177.2 million, and the company reported total liabilities of $1.83 million. The company had unrestricted cash of approximately $2.0 million and short-term investments of approximately $0.8 million.
Stock Performance
Due to a reverse stock split at a ratio of 1-for-100 effective July 5, 2024, the market dynamics have shifted significantly. The fair value of the common stock as of September 30, 2024, was reported at $10.92.
Research and Development
Research and development expenses for the three months ended September 30, 2024, were approximately $2.8 million, a decrease from $2.9 million in the same period of 2023. For the nine months ended September 30, 2024, R&D expenses totaled $9.2 million.
Liquidity and Capital Resources
As of September 30, 2024, the company had cash flows from operating activities showing a net loss of $(15,550,011) for the nine months. The company has expressed concerns about its ability to continue as a going concern, contingent upon successful capital raising efforts and operational improvements.
Recent Financing Activities
Cyngn has engaged in at-the-market offerings, raising approximately $8.6 million through the sale of common stock. Additionally, on December 12, 2023, the company completed a public offering that generated approximately $5 million before expenses.
Stock-Based Compensation
In the three months ended September 30, 2024, Cyngn recorded stock-based compensation expenses of approximately $601,791, compared to $719,283 in the same period of 2023. As of September 30, 2024, total unrecognized stock-based compensation cost was approximately $4.2 million.
Conclusion
The company continues to face challenges in revenue generation and profitability, necessitating ongoing efforts to secure funding and enhance operational efficiency.
How Cyngn Inc. (CYN) Makes Money
Revenue Sources
Cyngn Inc. generates revenue from four primary sources:
- Non-Recurring Engineering (NRE) Contracts
- Enterprise Automation Solutions (EAS) Subscriptions
- Hardware Sales
- Professional Services
Non-Recurring Engineering (NRE) Contracts
NRE contracts involve fixed-price agreements for trial projects that include design, data gathering, and hardware installation. Revenue from these contracts is recognized once performance obligations are fulfilled and customer acceptance is obtained. For the nine months ended September 30, 2024, NRE revenue was $0 compared to $1,420,000 in the same period of the previous year.
Enterprise Automation Solutions (EAS) Subscriptions
The company offers EAS subscriptions that provide ongoing software services, generating recurring revenue. For the three months ended September 30, 2024, subscription revenue was $6,892 compared to $7,370 in the same period of 2023. For the nine months ended September 30, 2024, subscription revenue totaled $11,162, up from $9,870 in 2023.
Hardware Sales
Cyngn sells or leases modified industrial vehicles equipped with their proprietary DriveMod Kit. Revenue is recognized upon transfer of ownership or ratably over the lease term. For the three months ended September 30, 2024, hardware revenue was $7,622, compared to $10,755 in 2023. For the nine months ended September 30, 2024, hardware revenue increased to $15,450 from $10,755 in the previous year.
Professional Services
Revenue from professional services, including installation and training, is recognized as services are performed. For the three months ended September 30, 2024, other revenue, which includes professional services, was $33,069 compared to $7,085 in 2023.
Financial Performance Overview
For the three months ended September 30, 2024, Cyngn reported total revenue of $47,584, significantly lower than $25,210 in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue was $61,762 compared to $1,448,961 in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $47,584 | $25,210 | $61,762 | $1,448,961 |
| Cost of Revenue | $157,251 | $42,414 | $285,949 | $1,121,732 |
| Research and Development Expenses | $2,795,583 | $2,929,225 | $9,149,357 | $9,697,099 |
| General and Administrative Expenses | $2,602,952 | $2,663,272 | $7,913,222 | $8,580,113 |
| Net Loss | $(5,427,399) | $(5,471,512) | $(17,216,430) | $(17,453,669) |
Cost Structure
Cost of revenue primarily consists of direct labor, hardware costs, and other expenses related to contract fulfillment. For the nine months ended September 30, 2024, cost of revenue was $285,949. Research and development expenses totaled $9,149,357 for the same period.
Key Financial Ratios
The following table summarizes key financial metrics for Cyngn Inc. as of September 30, 2024:
| Metric | Value |
|---|---|
| Cash and Cash Equivalents | $2,000,000 |
| Short-term Investments | $800,000 |
| Total Assets | $8,481,142 |
| Total Liabilities | $1,831,977 |
| Total Stockholders’ Equity | $6,649,165 |
Market Dynamics and Future Outlook
Cyngn's business model focuses on leveraging technology in the autonomous vehicle sector, which is rapidly evolving. The company's ability to secure NRE contracts and expand EAS subscriptions will be crucial for future profitability.
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Resources:
- Cyngn Inc. (CYN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cyngn Inc. (CYN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cyngn Inc. (CYN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.