UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-40932 CYNGN INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Financial Performance - Q1 2025 revenue was $47.2 thousand, a significant increase from $5.5 thousand in Q1 2024, primarily from EAS software subscriptions[11] - Total costs and expenses decreased by $710 thousand or 11.8% to $5.3 million in Q1 2025, down from $6.0 million in Q1 2024[12] - Net loss for Q1 2025 was $(7.6) million, compared to $(6.0) million in Q1 2024, with a net loss per share of $(6.60) based on approximately 1.2 million shares outstanding[13] Cash and Investments - Cyngn's unrestricted cash and short-term investments totaled $16.3 million as of March 31, 2025, down from $23.6 million at the end of 2024[14] - Cyngn's total stockholders' equity increased to $22.1 million as of March 31, 2025, compared to $11.6 million at the end of 2024[14] Research and Development - The company experienced a $1 million decrease in R&D expenses, primarily due to capitalizing costs for specific customers and software development[12] Business Development - Cyngn secured approximately $308k in new bookings for DriveMod vehicles from direct sales during Q1 2025[2] - Cyngn has conducted DriveMod deployments with five major automotive OEMs and Tier-1 suppliers across the U.S. and Mexico, indicating strong momentum in the automotive sector[5] - The company expanded into new verticals, with DriveMod vehicles now used in manufacturing, CPG, logistics, and defense environments[6] Innovation and Patents - Cyngn received its 22nd U.S. patent for AI-powered autonomous vehicle technologies, reinforcing its innovation in the sector[2]

Core Insights - Cyngn Inc. reported strong commercial momentum in Q1 2025, with significant customer wins in the automotive sector and expansion into new verticals, indicating a growing demand for its autonomous vehicle technology [3][5][6]. Financial Performance - Q1 2025 revenue was $47.2 thousand, a substantial increase from $5.5 thousand in Q1 2024, primarily driven by EAS software subscriptions from DriveMod vehicle deployments [7]. - Total costs and expenses decreased to $5.3 million, down 11.8% from $6.0 million in Q1 2024, attributed to lower deployment costs and reduced R&D expenses [8]. - The net loss for Q1 2025 was $(7.6) million, compared to $(6.0) million in the same quarter of 2024, with a net loss per share of $(6.60) based on approximately 1.2 million shares outstanding [10]. Operational Highlights - Cyngn achieved successful DriveMod deployments with five major automotive OEMs and Tier-1 suppliers across the U.S. and Mexico, marking a significant milestone in the automotive sector [9]. - The company secured its 22nd U.S. patent for AI-powered autonomous vehicle technologies, reinforcing its innovation capabilities [9]. - Cyngn's unrestricted cash and short-term investments totaled $16.3 million as of March 31, 2025, down from $23.6 million at the end of 2024, with no debt reported [11]. Strategic Initiatives - The company invested in its sales team to enhance fleet-scale deployments and appointed industry veteran Marty Petraitis as VP of Sales to align its Go-To-Market strategy with target companies [5][6]. - Cyngn's DriveMod technology is being utilized across various industries, including manufacturing, consumer packaged goods (CPG), logistics, and defense, highlighting its scalability and adaptability [5][6].

Core Viewpoint - Cyngn, Inc. is set to announce its fiscal first quarter 2025 financial results on May 7, 2025, after market close, and will not host an earnings call [1] Company Overview - Cyngn develops scalable autonomous vehicle technology aimed at enhancing productivity and efficiency for industrial organizations [2] - The company addresses challenges such as labor shortages, costly safety incidents, and rising consumer demand for eCommerce [2] Product Offerings - Cyngn's DriveMod Kit allows for the installation of self-driving technology on new industrial vehicles or retrofitting existing ones, minimizing upfront costs [3] - The Enterprise Autonomy Suite includes: - DriveMod (autonomous vehicle system) - Cyngn Insight (AV fleet management and analytics tools) - Cyngn Evolve (internal toolkit for AI, simulation, and modeling) [4]

Core Viewpoint - Cyngn has been granted its 22nd U.S. patent, enhancing its position in the autonomous vehicle industry and reflecting its commitment to innovation in AI-powered AV technologies [1][4]. Patent Details - The newly granted patent, titled "System and Methods of Off-Board Centric Autonomous Driving Computation," introduces a cloud-based approach that reduces onboard hardware requirements by distributing computing tasks between the vehicle and the cloud [2][13]. - This patent allows vehicles to transmit sensor data to cloud servers for processing tasks such as environment mapping, decision-making, and route planning, which are then sent back to the vehicle for execution [2][13]. Significance of the Patent - The patent enables the development of lighter and more cost-effective autonomous vehicles while supporting sophisticated driving algorithms [3][14]. - It also includes fleet management functionality, allowing for the coordination of multiple autonomous vehicles through a centralized cloud infrastructure [3][14]. Company Strategy - Cyngn's CEO emphasized that the recent patent grants reflect the company's dedication to advancing autonomous technology and building a robust patent portfolio to protect its intellectual property [4]. - The company aims to provide customers with a seamless way to adopt self-driving technology without incurring high upfront costs [5][9]. Product Offerings - Cyngn's flagship product, the Enterprise Autonomy Suite, includes the DriveMod (autonomous vehicle system), Cyngn Insight (AV fleet management tools), and Cyngn Evolve (internal toolkit for leveraging field data) [10].

MENLO PARK, Calif., March 11, 2025 /PRNewswire/ -- Cyngn Inc. (Nasdaq: CYN) today announced that it will be deploying its DriveMod Tugger at a global Fortune 500 automotive supplier. This milestone highlights Cyngn's growing proven ability to meet the unique demands of the automotive manufacturing industry and deliver innovative autonomous vehicle (AV) solutions. The automotive supplier company—whose name is withheld for confidentiality—intends to integrate DriveMod Tuggers to automate the transfer of finis ...

Autonomous Vehicle Technology - Cyngn Inc. has deployed DriveMod software on over ten different vehicle types, including tow tractors and electric forklifts, demonstrating the extensibility of its autonomous vehicle technology [21]. - The DriveMod Stockchaser, with a towing capacity of 6,000 lbs, became commercially available in early 2023, followed by the DriveMod Forklift and DriveMod Tugger, expanding the vehicle-type portfolio [22]. - DriveMod has been deployed on more than ten different vehicle form factors, with commercial releases for Columbia Stockchaser and Motrec MT160 Tugger, and BYD ECB50+ Forklift targeted next [52]. - Cyngn's Enterprise Autonomy Suite (EAS) aims to provide a universal autonomous driving solution with minimal marginal costs for companies to adopt new vehicles and expand their autonomous fleets [21]. - Cyngn's EAS integrates advanced autonomous driving technology with data analytics and fleet management tools, creating a differentiated solution for industrial autonomy [38]. - DriveMod's modular software allows for retrofitting existing vehicle assets or integration into manufacturing partners' vehicles, facilitating both evolutionary and revolutionary AV adoption strategies [57]. - Cyngn's technology enables vehicles to perceive over 100 dynamic objects per second, enhancing navigation capabilities in complex environments [53]. - Cyngn's proprietary mapping and localization system optimizes AV operation across diverse sites, enabling consistent navigation in both indoor and outdoor environments [78]. Market Potential and Growth - The global installed base of industrial electric vehicles with a lifespan of three years or less is approximately 3.75 million vehicles, presenting a market potential opportunity exceeding $268 billion [32]. - In 2022, 1.42 million industrial electric vehicles were shipped worldwide, but fewer than 1% of material handling vehicles shipped annually are automated, indicating significant growth potential for automation [32]. - The material handling equipment market was valued at $213.4 billion in 2021, with a projected CAGR of 5.7% from 2022 to 2030, driven by increased safety awareness and Industry 4.0 initiatives [31]. - 74% of supply chain leaders are increasing their technology and innovation investments, with 90% planning to spend over $1 million, a 24% increase from 2022 levels [32]. - The cloud robotics market is projected to grow from $3.3 billion in 2019 to $157.8 billion by 2030, representing 30% of the robotic industry's total worth [71]. Financial Performance and Projections - The company incurred net losses of $29.3 million and $22.8 million for the years ended December 31, 2024, and 2023, respectively, with an accumulated deficit of $189.3 million as of December 31, 2024 [118]. - Research and development costs were $11.3 million and $12.7 million for the years ended December 31, 2024, and 2023, respectively, and are expected to grow in the future [120]. - The company had an unrestricted cash balance of $23.6 million as of December 31, 2024, compared to approximately $3.6 million as of December 31, 2023 [127]. - The company plans to increase revenue while controlling operating costs and expenses to alleviate going concern issues [128]. - The company has substantial doubt about its ability to continue as a going concern for the next 12 months following the issuance date of the financial statements [127]. - The company expects the rate of losses to increase significantly in future periods due to various expansion and development efforts [119]. - The company may need to raise additional funds to continue its commercialization activities, which may not be available on attractive terms [125]. Intellectual Property and Legal Risks - Cyngn's patent portfolio expanded with 16 new U.S. patent grants in 2023 and 2 granted in 2024, bringing the total to 21 [23]. - The company has 21 granted U.S. patents and 5 pending U.S. patents as of February 28, 2025, indicating a strong focus on intellectual property protection [93]. - The company acknowledges the risk of product defects in its autonomous industrial vehicle software, which could lead to reputational harm and financial losses [138]. - The company is vulnerable to intellectual property litigation, which could result in significant costs and operational disruptions [150][151]. - The company relies on a combination of intellectual property rights to protect its technology, and failure to do so could lead to loss of competitive advantage and revenue [155]. - The company may face expensive and time-consuming litigation to enforce its intellectual property rights, which could negatively impact its financial condition [157]. - Changes in U.S. patent law, such as the transition to a "first-to-file" system, could impair the company's ability to protect its technology and enforce its intellectual property rights [158]. Regulatory and Compliance Challenges - The regulatory environment for autonomous industrial vehicles is still developing, with the company preparing to comply with various standards such as OSHA and ISO [89]. - Compliance with evolving data privacy laws, such as the GDPR, may require substantial resources and could impact the company's operations and financial condition [182]. - The regulatory framework for data privacy and security is continuously evolving, creating uncertainty and potential compliance challenges for the company [181]. - Non-compliance with data privacy laws could lead to significant fines, penalties, and reputational harm, adversely affecting the company's financial condition [183]. Operational and Market Challenges - The company faces challenges in market acceptance of autonomous driving technology, regulatory requirements, and competition from established players [107]. - The company faces intense competition for skilled personnel, which could impact its ability to execute its business plan [132]. - The company faces challenges in managing employee integration and operational efficiency, which could adversely affect productivity and solution quality as it continues to grow [135]. - External factors such as pandemics, geopolitical conflicts, and inflation could materially impact the company's financial condition and operational results [140][141]. Corporate Governance and Shareholder Matters - The company executed a reverse stock split on February 18, 2025, and its common stock has traded above $1.00 since then [188]. - The company is currently not in compliance with The Nasdaq Capital Market $1.00 minimum bid price requirement, which could lead to delisting and adversely affect the market price and liquidity of its common stock [188]. - The company received a notification letter from The Nasdaq Stock Market on February 6, 2025, indicating it did not meet the minimum bid price requirement for 30 consecutive business days [188]. - The board of directors declared a one-time special stock dividend of 10% on issued and outstanding shares, payable to holders of record on October 23, 2023 [196]. - The company has never declared or paid cash dividends and does not intend to do so in the foreseeable future [216]. - Future sales of common stock could depress the market price and impair the ability to raise capital [190]. - The company anticipates needing to raise additional capital, which may result in dilution for existing shareholders [195]. Company Overview and Strategy - The company has established a go-to-market strategy focused on collaboration with industrial vehicle OEMs and end customers to drive growth [74]. - The company aims to expand its market presence by addressing other industrial vehicle use cases, including mining, construction, and agriculture [67]. - The company plans to continue scaled commercialization of its autonomous driving technology throughout 2025 and beyond [105]. - The company’s mission includes enhancing safety and operational efficiency in supply chain logistics while reducing greenhouse gas emissions [95]. - The company is classified as an "emerging growth company," which allows it to take advantage of reduced reporting requirements [197]. - The corporate headquarters is located in Menlo Park, California, covering approximately 16,400 square feet [210].

Revenue Performance - Cyngn reported Q4 2024 revenue of $306.4 thousand, a significant increase from $40.4 thousand in Q4 2023, primarily from EAS software subscriptions[12] - Total revenue for 2024 was $368 thousand, down from $1.5 million in 2023, with the decline attributed to a shift from NRE contracts to EAS software subscriptions[9] Costs and Expenses - Total costs and expenses in 2024 were $23.2 million, a decrease of $1.6 million or 6.5% from $24.8 million in 2023[10] - Depreciation and amortization expenses decreased to $669,409 in 2024 from $961,281 in 2023, a reduction of 30.4%[27] Net Loss - The net loss for 2024 was $(29.3) million, compared to $(22.8) million in 2023, resulting in a net loss per share of $(2,213) based on approximately 13.2 thousand shares outstanding[11] - Net loss for 2024 was $29,252,284, compared to a loss of $22,811,230 in 2023, representing a 28.5% increase in losses year-over-year[27] Cash Flow and Investments - Net cash used in operating activities improved to $9,493,500 in 2024 from $19,477,605 in 2023, indicating a 51.3% reduction in cash outflow[27] - Net cash provided by investing activities decreased to $2,935,230 in 2024 from $6,362,166 in 2023, reflecting a 53.9% decline[27] - Net cash provided by financing activities significantly increased to $26,584,380 in 2024, up from $6,120,789 in 2023, marking a 335.5% rise[27] - Cash and cash equivalents at the end of 2024 were $23,617,733, a substantial increase from $3,591,623 at the end of 2023, representing a 558.5% growth[27] - Proceeds from at-the-market equity financing in 2024 were $6,789,427, compared to $1,747,468 in 2023, showing a 287.5% increase[27] - Proceeds from public issuance of common stock and pre-funded warrants rose to $22,369,285 in 2024 from $4,380,975 in 2023, a 408.5% increase[27] Business Development - Cyngn secured approximately $1.3 million in new bookings for DriveMod vehicles from direct sales during Q4 2024[1] - The company raised $33 million in December 2024 to scale customer deployments and fuel growth[1] - Cyngn completed its first paid DriveMod Forklift deployment, marking a key monetization milestone for its autonomous solutions[6] - The global forklift market is projected to double to $103.9 billion by 2031, presenting significant opportunities for Cyngn's autonomous forklifts[7] - The company hired Marty Petraitis as VP of Sales to enhance its focus on expanding into more fleet purchases and scaling opportunities[4] Financial Adjustments - The company recorded a patent impairment of $118,831 in 2024, which was not present in 2023[27] - The change in fair value of warrant liability contributed $5,359,780 in 2024, indicating new financial dynamics compared to the previous year[27]

Core Insights - Cyngn Inc. reported financial results for Q4 and the full year 2024, highlighting a significant focus on its autonomous DriveMod technology and commercial momentum [1][3][4] Financial Performance - 2024 revenue was $368 thousand, a decrease from $1.5 million in 2023, primarily due to a shift from NRE contracts to EAS software subscriptions [8][22] - Total costs and expenses in 2024 were $23.2 million, down 6.5% from $24.8 million in 2023, driven by reduced costs in revenue and R&D [9][22] - The net loss for 2024 was $(29.3) million, compared to $(22.8) million in 2023, with a net loss per share of $(2,213) based on approximately 13.2 thousand shares outstanding [11][22] Q4 Financial Review - Q4 2024 revenue was $306.4 thousand, up from $40.4 thousand in Q4 2023, with revenue primarily from EAS software subscriptions [12][22] - Total costs and expenses in Q4 were $5.8 million, an increase of 7.4% from $5.4 million in Q4 2023, mainly due to higher G&A expenses [13][22] - The net loss for Q4 was $(12.0) million, compared to $(5.4) million in Q4 2023, with a net loss per share of $(502) based on approximately 24 thousand shares outstanding [14][22] Market Expansion and Product Development - Cyngn achieved a significant market expansion milestone with a contract for its DriveMod Tugger at a Consumer Packaged Goods company, indicating growth in various industries [4] - The company has ramped up production of its DriveMod Tugger and initiated revenue-generating activities with its DriveMod Forklift solution, marking a key monetization point [6][7] - The global forklift market is projected to double to $103.9 billion by 2031, presenting substantial opportunities for Cyngn's autonomous forklifts [7] Balance Sheet Highlights - As of December 31, 2024, Cyngn's unrestricted cash and short-term investments totaled $23.6 million, a significant increase from $3.6 million at the end of 2023 [16][23] - The company had no debt and reported total stockholders' equity of $11.6 million, up from $10.6 million in 2023 [16][23]

Core Insights - Cyngn Inc. has successfully deployed its DriveMod Tuggers and Forklifts across various industries, including Manufacturing, Consumer Packaged Goods, Logistics, and Defense, highlighting its leadership in autonomous vehicle solutions [1][3][9] Manufacturing - A major automotive supplier has signed a Letter of Intent (LOI) to deploy multiple DriveMod Tuggers, aimed at optimizing material handling and increasing operational efficiency [4] - Cyngn has initiated a production deployment of DriveMod Tuggers at COATS Company, the largest full-line wheel service equipment manufacturer in North America, at its 150,000+ square foot facility in La Vergne, Tennessee [5] Consumer Packaged Goods - The deployment of DriveMod Tuggers at a major CPG distribution company demonstrates the technology's ability to address high throughput demands and safety considerations, streamlining distribution workflows [6] Defense - The deployment of DriveMod Tuggers at a major defense contractor's facility showcases the adaptability of Cyngn's solutions in meeting stringent industry standards, although specific details are confidential for security reasons [7] Logistics - Cyngn's DriveMod technology has been successfully integrated into Global Logistics and Fulfillment LLC's Las Vegas distribution center, improving workflow efficiency and operational visibility [8] Technology and Product Offering - Cyngn develops scalable autonomous vehicle technology that addresses challenges such as labor shortages and increased consumer demand for eCommerce [10] - The DriveMod Kit can be installed on new industrial vehicles or retrofitted, allowing customers to adopt self-driving technology without high upfront costs [11] - Cyngn's flagship product, the Enterprise Autonomy Suite, includes various tools for fleet management and analytics, enhancing operational capabilities [12]