Cyngn (CYN) 23 Mar 222021 Q4 Earnings call transcript

Greetings. Welcome to Cyngn’s Fourth Quarter and Year End 2021 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. the Equity to Group. turn Sohn host, now The of will conference your over Carolyne I Thank you.

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the have January, the changed enterprise just they operations development in material path only of in Columbia incorporate with solution the chose that shared GL&F manufacturers an and to exclusive way Stockchasers. provider, In self-driving will select looking automation automation Cyngn, The facing here can with and have handling recent which labor talent following include January, role and our suite, play pilot automation in what technology begin half system. today. and driving a is These months Columbia, ahead? acquisition. to represents XXXX. progress, cost, we to industrial like major significant GL&F the pilot completely made of in the high or autonomous on mean DriveMod, not Those of Global of vehicle commercialization technology these Since at most we the they our we tomorrow's milestones announcements joint today, It a Fulfillment several next Logistics such vehicle several discuss the see as autonomous & To space. into deployments our how into effective deployments deployment its partner the something in customers, their and terms the are video or strategical demonstrate customers ventures we Cyngn address second enterprises series shortage include is operations integrated as manufacturer skilled at issue way but of

along the look to of additional kit application patent DriveMod new Group of been to with fleet autonomous expanding help, team additional Vehicle our its benefit including locations new footprint, on tasks facing across production us solutions the be identified Cyngn the in they to we members process will Nevada more Stockchasers the enables fulfill vehicles streamline closely with unprecedented integrated with operation, Insight, which filed In kicked has past of the online. in other mission-critical GL&F This management GL&F DriveMod. interfaces. additional excited to deployment most powered customers, month. the has their With work facilities These focus California. and business to Over for from making as self-driving visibility its data areas GL&F into our year last Columbia our months, and autonomy-ready Columbia to Stockchasers order and several streamline customer analytics autonomous customer applications We're for on off this core available its for upcoming by and demand bring to Cyngn leveraging has facilities. customers vehicles with Cyngn

into and customer already standards as that the vehicles of of well of autonomous faster directly is off as vehicles, tomorrow's or It allowing Our the simpler ownership. vehicles the two turnkey cost vehicles own, for a is hardware sensors retrofit and kit truly streamlining installation DriveMod industrial coming contains both assembly overall advanced for system maintenance, scalable line. lower industrial deployment, upgrading components,

doing serve expanding the path the material pay existing us leverage to actively We key will dealer network will talks are is develop The well Greenland manual, capabilities to network, Technologies, to already foundational a upon strategic closely key handling and strength our of work continue us encompass initial the our vehicles fully in vehicles as in customer will Greenland they electric recurring with revenues. help remotely easily partners, established manufacturer servicing which bring now working capabilities, enable base, In space. doing February, core we're and now the Portland. autonomous, of drivetrain control we handling systems exciting Greenland, Cyngn between In Forklift our material announced another be to switch vehicle so, and very will able to self-driving machinery mode. partnership. industrial to for organization

the half OSHA, also in accidents exercise safety operate forklifts of industrial utilized an in reduce with operate ubiquitous U.S. helping accident to which most to safety or one increase nearly employee around will of vehicles will fulfillment country. XX% autonomy customer would increasing today, Vehicles by the to in warehouses of that to under According committed injury. technologies. at that be being these is over be. the centers number approximately the safety autonomously and able to conditions involved be our at facility Cyngn by dangerous are in night advanced Forklifts serious and of result XXX,XXX using being

role in addition In by vehicles like cost ESG and and to play DriveMod. and enterprises a helping to achieve their gains, sustainability as autonomous transition goals zero driving emission intelligent productivity electrification they are operated systems central that will

organization part revenues. to solutions to our partnerships, scale that, customers, recurring our our which Don and top successful deploying productization be excited turn talent and of of results. attracting strengthening autonomous To our industrial are transformation. major to over I'll represents and it financial review this towards to commercialization will With milestones translate EAS, into deployment select strategic our to We summarize,

the over ended go Thanks Lior. fourth year quarter for highlights and financial I'll quickly XXXX.

as with this we Additional XX-Q, be can press release earlier on SEC found Form earnings week. as filing our which that today, well issued details anticipate the was an in

We generate XXst, for XXXX. revenue any years and ended as the and company XXXX December not pre-revenue such did are

million For primarily public to incurred costs services, as was personnel, in additional the and fourth to support quarter incurred $X.X of being $X.X in operating $X.X G&A for total and other for a company. as compensation stock-based compensation, also related million professional to for additional a compared a to costs increase million staff, the expenses, the $XXX,XXX engineering expense necessary well ended R&D same quarter insurance were and increase December related expenses XXst, stock-based The XXXX, year. due prior increase to

of million incrementally an R&D in to we which by to and quarter. from income, year was towards to increase with attributed compares developing XX.X basis loss The This net loans increase OpEx PPP cost average prior quarter, a and we a X on million prior quarter other each loss engineering to R&D per average was on we diluted a other a disclosed, the of the on Net $X.XX previously increase amounting $X.X the ongoing reported shares weighted is As Administration, share year appropriate Small million relatively the EAS. net outstanding XXXX. basic of XXXX approximately support expect per share as continuously cost weighted per XXst, forgiveness December ended quarter the of for loss based fourth million share work We in basis based which level to personnel by was the offset the for flat diluted the total and in during the on approximately quarter. of shares period. Business $X.X primarily basic $X.XX

year compared by was services professional well due decrease million in becoming headcount decrease a increase partially to to were to expenses The increase pre-COVID-XX December R&D total stock-based as personnel public XXXX, $X compensation, primarily level. $X.X costs the $XXX,XXX ended to incurred company's the additional and was This XXst, necessary in related for personnel million a in compared operating the to million as expenses XXXX. a R&D For offset IPO support company. in $X.X and

to loss in Our net year $X.X prior a net XXXX loss $X.X million for full compared of was the million year. the

million year weighted year. to average other PPP the a income million of and loss fourth $X.XX share to in X a and shares based $X.X result share approximately per due basic full per weighted basis approximately shares million diluted by forgiveness on Net with quarter, per during the on the basic loss the year. X.X outstanding was $X.XX prior a based the basis As the the the of net on share loans for increase average in decrease diluted SBA XXXX primarily was of on compared this

balance $XX.X ended XXXX. with the IPO. and cash the end to includes equivalents, we to the from sheet, in Turning which at compares $X.X year million proceeds of cash our million This the

compared XXXX. Our $X.X $X.X working the to at million stockholders' total capital XXXX. to And equity million million end XXst, was compared of was million December $XX.X at $XX.X

our are on it Lior? now over Following execute and our strategic to IPO, initiatives. well-capitalized I'll Lior. we well-positioned to turn back

In year. of Thank We short, weeks to anticipate here more you, and this lots QX developments in the Don. exciting months in ahead. come

operator, working for closely on With it come partners, with up look news that forward and continue Q&A. and to let's deployments our partnerships as additional We and they sharing customers along. open

you. Thank Thank [Operator you. Instructions]

comes with question. your state Aegis question first Rommel from Capital. Dionisio Please Our

taking question. afternoon. Thanks for Good my

last been business really just that significant that just been? several in factors driving new and with in And feedback here of And activity, in driving-- You weeks with investments weeks the second, the put -- into you place guys on, a what seem obviously two first here some very to the kind have plan had acceleration new how all, feedback near-term Columbia that? much. over the of Greenland. discuss Thank partnerships What's you partnership the I might several given of of that result has months? wonder obviously of two business increased just you if key signings. with next these release, partnerships maybe could additional are busy and

is This Development. the Rommel. of Thanks Ben, VP Business

the these what exactly that that to do products. provide is So, to that out seeing vehicle additional areas to partnerships demand leveraging solutions autonomous we're access there which need are is we the and

need there's be know So, labor to becoming demand. into difficulty and roles, shortages know companies that the ongoing. to able growing they're fulfill these are just chain hiring elements We growing of workflows these e-commerce automating to roles, that that from of we like, and skilled for are a that the demand the these the seeing supply continue

into we and versions for -- scale for that that's are And milestones are of taking important for getting end of are the those us we'll have customers. these is the what that products focus continuation for representative we EAS example GLF that of of customers doing commercialization vehicles a GLF, ready ready hands the So, like in are increasing be customers. XXXX. to

With that are products like these heard in three as for example, their being expectation to for has that fulfillment delivering you current automation the for the center the proof that points the early a video, business PL, needs. a GLF

very Okay, Thanks helpful. that’s Congratulations. Ben.

Thank you. question-and-answer now [Operator session. gentlemen, Thank over Tal and end to the of we've you. ladies turn remarks. call seems Instructions] the for it our I'll Lior I'll closing And now reached

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a parties you. today's may disconnect. Have gentlemen, conference. Ladies Thank great this and day. concludes All