Core Insights - Cyngn has been recognized for its innovative use of NVIDIA Isaac technologies to enhance autonomy in real-world industrial environments [1][2] - The collaboration with NVIDIA aims to provide significant return on investment (ROI) for industrial operators through advanced autonomous vehicle solutions [2] Company Overview - Cyngn specializes in developing and deploying autonomous vehicle technology tailored for industrial sectors, addressing challenges like labor shortages and safety incidents [3] - The company's DriveMod technology allows for the integration of self-driving capabilities without substantial upfront costs or extensive infrastructure [4] Product Details - Cyngn's DriveMod Tugger can haul loads up to 12,000 lbs and is designed for a payback period of less than 2 years [5] - The DriveMod Forklift is capable of lifting heavy loads using non-standard pallets and is currently available to select customers [5]

Core Viewpoint - Cyngn has launched the Cyngn Dealer Portal to support its expanding dealer network, providing resources to enhance sales efficiency and accelerate the adoption of its autonomous solutions [1][3][5] Group 1: Dealer Portal Features - The Dealer Portal offers access to sales materials, pricing information, and co-marketing resources, enabling dealers to present Cyngn's autonomous solutions effectively [1][4] - The portal includes training materials and technical documentation to assist dealers in engaging new customers and pursuing opportunities in industrial autonomy [4] Group 2: Strategic Importance - The launch of the Dealer Portal is a significant step in scaling Cyngn's Dealer Network, which includes partnerships with key dealers and service providers in the industrial vehicle sector [5] - These partnerships are crucial for expanding Cyngn's market reach and facilitating the implementation of autonomous vehicle solutions across various industries [5][7] Group 3: Product Offerings - Cyngn's DriveMod technology allows customers to integrate self-driving technology into their operations without high upfront costs or extensive infrastructure [8] - The DriveMod Tugger can haul up to 12,000 lbs and has a typical payback period of less than 2 years, while the DriveMod Forklift is designed for heavy loads using non-standard pallets [9]

Core Viewpoint - Cyngn Inc. has received a notice of allowance for its 23rd U.S. patent related to its autonomous vehicle solutions, specifically a modular sensor system designed for industrial applications [1][2][4]. Patent Details - The newly allowed patent focuses on a modular sensor system that can be integrated with existing industrial machines with minimal modifications, enhancing adaptability across various machine geometries and operational constraints [3]. - This patent adds to Cyngn's growing intellectual property portfolio, which now includes a total of 22 granted patents, reflecting the company's commitment to research and development in autonomous vehicle technology [4]. Company Positioning - Cyngn's CEO emphasized that the expanding patent portfolio reinforces the company's position as a technology leader in the autonomous vehicle sector, highlighting the importance of innovation and intellectual property protection for long-term differentiation [4]. - The company has been actively securing patents in key areas such as perception, navigation, and mapping, which are critical for advancing its DriveMod solution [4]. DriveMod Technology - Cyngn's DriveMod technology allows customers to implement self-driving capabilities in their operations without incurring high upfront costs or needing extensive infrastructure changes [9]. - The DriveMod Tugger can haul up to 12,000 lbs and aims for a payback period of less than two years, while the DriveMod Forklift is designed for handling non-standard pallets and is currently available to select customers [10]. Industry Context - Cyngn targets significant challenges faced by industrial organizations, such as labor shortages and safety incidents, by providing innovative autonomous vehicle solutions [8].

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].

Core Insights - Cyngn Inc. has announced the deployment of its DriveMod Tugger at a global Fortune 500 automotive supplier, showcasing its capability to meet the automotive manufacturing industry's demands for innovative autonomous vehicle solutions [1][3]. Company Developments - The recent contract with the automotive supplier builds on Cyngn's previous commercial agreements, including a contract with a major manufacturer in the automotive service equipment sector and a letter of intent signed in Q4 [3]. - In January, Cyngn also signed a contract to deploy DriveMod Tuggers with a major consumer packaged goods company, indicating a broadening of its market reach [3]. Industry Context - The automotive industry is increasingly seeking technology that addresses immediate needs while adapting to market shifts, with Cyngn's DriveMod Tugger designed to meet these requirements with a towing capacity of 12,000 pounds [4]. - Recent economic factors, such as tariffs on steel and aluminum, have highlighted the necessity for automation in U.S. manufacturing to enhance operational efficiency and reduce reliance on fluctuating labor markets [4]. Product Features - The DriveMod Tugger incorporates advanced AI technology and safety features, including 360° visibility and collision avoidance, facilitating smooth navigation in complex industrial environments [5]. - Powered by Cyngn Insight, the fleet management and analytics platform, users can achieve enhanced coordination and operational efficiency with complete visibility into the performance of their autonomous vehicle fleets [5]. Company Overview - Cyngn specializes in developing scalable autonomous vehicle technology for industrial organizations, addressing challenges such as labor shortages and increasing consumer demand for eCommerce [6]. - The DriveMod Kit can be retrofitted onto existing industrial vehicles, allowing customers to adopt self-driving technology without significant upfront costs [7]. - Cyngn's Enterprise Autonomy Suite includes the DriveMod system, Cyngn Insight for fleet management, and Cyngn Evolve for leveraging field data for AI and modeling [8].

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].