Cyngn(CYN) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Results and Operating Highlights Cyngn's Q2 2025 results highlight significant capital raise, extended operational runway, and advancements in autonomous vehicle technology, alongside mixed financial performance with revenue growth and balance sheet strengthening Recent Operating Highlights In Q2 2025, Cyngn secured $32 million in capital to extend its operational runway through 2027, enabling accelerated product development, expanded physical and technological infrastructure, grew its intellectual property portfolio, and continued DriveMod vehicle deployments - Completed a $32 million capital raise, extending the company's cash runway through 2027 based on current projections[1][3] - Relocated to a new, larger headquarters in Mountain View, CA, featuring expanded testing infrastructure to accelerate sales and support scaled deployments[2][3] - Advanced its technology roadmap through a collaboration with NVIDIA, leveraging Isaac Sim for rapid iteration and validation of AV features in simulation[3][4] - Expanded DriveMod vehicle deployments across industries including manufacturing, logistics, automotive, and consumer-packaged goods[3] - Secured its 23rd U.S. patent, strengthening its intellectual property portfolio in autonomous vehicle technologies[3][5] Financial Review The company's financial review for the second quarter and first half of 2025 shows significant year-over-year revenue growth from its EAS software subscriptions, with total costs decreasing, net loss widening for the six-month period but narrowing for the three-month period, and a strengthened balance sheet from a recent capital raise Six-Month Financial Review (YTD Q2 2025) For the six months ended June 30, 2025, revenue grew to $80.9 thousand from $14.2 thousand year-over-year, and despite an 8.3% decrease in total costs, the net loss widened to $(13.0) million from $(11.8) million, primarily driven by a $2.5 million non-cash expense related to the fair value measurement of warrant liability | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $80.9 thousand | $14.2 thousand | | Total Costs and Expenses | $10.8 million | $11.8 million | | Net Loss | $(13.0) million | $(11.8) million | | Net Loss Per Share | $(8.22) | $(1,522.00) | - The 8.3% decrease in total costs was mainly due to a $2.3 million reduction in R&D expenses, partially offset by a $1.4 million increase in G&A costs for personnel and bonuses[9] Three-Month Financial Review (Q2 2025) In the second quarter of 2025, revenue increased to $33.7 thousand compared to $8.7 thousand in Q2 2024, total costs and expenses decreased by 4.7% to $5.5 million, and the company's net loss slightly narrowed to $(5.5) million from $(5.8) million in the prior-year quarter, benefiting from increased investment income | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $33.7 thousand | $8.7 thousand | | Total Costs and Expenses | $5.5 million | $5.8 million | | Net Loss | $(5.5) million | $(5.8) million | | Net Loss Per Share | $(2.70) | $(610.85) | - The decrease in total costs was driven by a $1.2 million reduction in R&D, partially offset by a $1.0 million increase in G&A expenses related to personnel costs[12] Balance Sheet Highlights As of June 30, 2025, Cyngn's financial position strengthened considerably compared to year-end 2024, with cash and short-term investments increasing to $39.2 million, working capital growing to $40.6 million, total stockholders' equity rising to $46.7 million, and no debt maintained on its balance sheet | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Short-term Investments | $39.2 million | $23.6 million | | Working Capital | $40.6 million | $22.1 million | | Total Stockholders' Equity | $46.7 million | $11.6 million | - The company had no debt as of June 30, 2025, and December 31, 2024[14] Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements provide a detailed view of Cyngn's financial performance and position, highlighting revenue growth, controlled expenses, a stronger capital position from recent financing, and significant cash inflows from financing activities funding operations and investments Statements of Operations The statement details revenue, costs, and net loss for the three and six-month periods ending June 30, 2025, compared to 2024, driven by software subscription revenue growth, reduced R&D expenses, increased G&A costs, and a significant change in warrant liability impacting the six-month net loss Condensed Consolidated Statements of Operations (Unaudited) | (In thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | REVENUE | $33.7 | $8.7 | $80.9 | $14.2 | | TOTAL COSTS AND EXPENSES | $5,535.6 | $5,820.9 | $10,797.8 | $11,792.7 | | LOSS FROM OPERATIONS | $(5,501.9) | $(5,812.2) | $(10,716.9) | $(11,778.6) | | NET LOSS | $(5,448.3) | $(5,819.0) | $(13,041.2) | $(11,789.0) | | Net loss per share, basic and diluted | $(2.70) | $(610.85) | $(8.22) | $(1,521.56) | Balance Sheets The balance sheet as of June 30, 2025, shows a significant increase in total assets to $56.2 million from $30.1 million at the end of 2024, primarily driven by an increase in cash and short-term investments from financing activities, with total liabilities decreasing to $9.4 million from $18.5 million, mainly due to changes in warrant liability, resulting in a substantial increase in stockholders' equity to $46.8 million Condensed Consolidated Balance Sheets (Unaudited) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | TOTAL CURRENT ASSETS | $43,634.6 | $25,583.0 | | TOTAL ASSETS | $56,180.9 | $30,095.3 | | TOTAL CURRENT LIABILITIES | $3,000.2 | $3,489.3 | | TOTAL LIABILITIES | $9,417.8 | $18,501.7 | | TOTAL STOCKHOLDERS' EQUITY | $46,763.2 | $11,593.7 | Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $(12.8) million, investing activities used a net $(9.1) million primarily for short-term investments, and financing activities provided a significant net inflow of $29.6 million from a public stock issuance, resulting in a net cash increase of $7.7 million and a cash balance of $31.3 million Condensed Consolidated Statements of Cash Flows (Unaudited) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(12,770.4) | $(10,225.5) | | Net cash (used in) provided by investing activities | $(9,114.8) | $2,977.8 | | Net cash provided by financing activities | $29,610.7 | $9,587.0 | | Net increase in cash | $7,725.5 | $2,339.4 | | Cash, end of period | $31,343.2 | $5,931.0 | Company Overview and Disclosures This section provides a brief overview of Cyngn's business, which focuses on developing autonomous vehicle technology for industrial clients to solve issues like labor shortages, and includes a standard forward-looking statements disclaimer, cautioning that projections are subject to risks and uncertainties About Cyngn Cyngn develops and deploys autonomous vehicle technology for industrial organizations like manufacturers and logistics companies, with its core product, DriveMod, designed for seamless integration into existing operations on vehicles like tuggers and forklifts to address labor shortages and safety incidents, targeting a payback period of less than two years - Cyngn's business focuses on autonomous vehicle technology for industrial organizations to address labor shortages and costly safety incidents[21] - The company's DriveMod technology is available on Motrec MT-160 Tuggers and BYD Forklifts, enabling self-driving capabilities without high upfront costs or infrastructure changes[22][23] Forward-Looking Statements This section contains a standard legal disclaimer, cautioning investors that the press release includes forward-looking statements based on current management expectations, warning that actual results could differ materially due to various risks and uncertainties, and stating that the company does not commit to updating these statements - The press release contains forward-looking statements that are not historical in nature and are subject to a number of risks, uncertainties, and assumptions[24] - Investors are cautioned that actual results may differ materially from those projected, and Cyngn undertakes no obligation to publicly update any forward-looking statements[24]