Cyngn (CYN) 12 May 222022 Q1 Earnings call transcript

Greetings, and welcome to Cyngn's First Quarter 2022 Financial Results Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the call over to our host, Carolyne Sohn of The Equity Group. Thank you.

begin. may You

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to the do as a site now access at company's You webcast few IR go please investors.cyngn.com. page so, harbor will safe and of to the the minutes have Presentations the Events over information. go I To

future, contains harbor Before strategy, well from respond changing company's by forward-looking components, growth ability impact operations meaning regarding Securities we such company's would long-term pandemic like operational herein conference call outlook identified terms Autonomy to or of its results. on statements Suite within the COVID-XX to regarding will the planned, Infinitracker; statements expectations deliver to the I expect, among focus business, Enterprise environment, ability Litigation sustainable provision other revenues and safe as EAS, and/or things, continued as XXXX. and of the development financial to and the the as of of value, any Act statements and get the of be include, information Reform discussed everyone the that the accompanying anticipate, forward-looking can remind started, this certain Private believe, These sales and the

subject about and Although the results information, reasonable with reflected XXXX. events, no There those that to Alvarez, recent risks make conditions will I discuss update it will a Chief call, any new few to future could ahead. forward-looking is of expectations forward-looking CEO, Lior decision. market opening expectations in company from with required go differ will remarks associated review to to statements law. Officer, Lior. first cause projected. not floor its Financial changes highlights. operating by actual before The which today, those statements in the or Information Please Chairman does believes its of that filings for correct. uncertainties included follow assurance otherwise, in to in Securities concluding of obligation and return except that Commission, the the company's turn be statements will will can over Lior quarter are are Cyngn result of dramatically as Tal, today's as as financials a questions. company's risks the and with investing the company to Don the those the making a On With we that, before to to you be investment an the prove assume any Exchange review encourage

and recent here Nasdaq Development. Landen, joined commemorate Stock I'm our and and bell Exchange Don joined Chief our This our of being by for a solution in problems at developing rapidly the Six and so during and become It you, result technology publicly organizations knew of colleagues, company Ben we it operational commercial the Officer; industrial traded good Financial facing, of involved to been was a are DriveMod, solving pleasure is costs York. tirelessly reminder New have today. human started the our who the people autonomous company by revolutionize for IPO, vehicle wonderful opening ago, to that partners like cases, Thank of number and the increasing huge use have all President our driving could supporters worked everyone. morning, singing had Vice I autonomous Carolyne, afternoon, today accident it industries when by from Business Alvarez, we of years error.

the chain Over can is to today's are operations. disruption. the industrial overcome most we will shown several last our week highlight and call, presentation note, analytic a we that progress global global Cyngn last what showcases we the us of labor as recent pandemic and let's critical development X shortage On our ahead. years that a they how have Automation begin that just with at continuity intelligence video of Infinitracker, and and part the next suite. data new mean ensure how of Insight, and months launched automation supply here terms product see in Cyngn, brief On

cause that a disruption. at take [Presentation] Infinitracker Let's some supply of addresses look the chain issues how

web tethered built-in in with to other enabling portal management the or track sensors and Infinitracker's SIM its systems asset to devices world, assets device users be gateway. even compact temperature, of IoT through data equipment speed, exact anywhere a via the global to any shipping vehicles. is travel tracking attached or or pushes as Cyngn's can asset through about pallets, direction and API. location, Infinitracker bluetooth GPS containers, Infinitracker card integration just such It from cloud

devices recharge/replacement, most XX While on similar today Infinitracker require years. market last can to the battery up frequent

opportunity is on DriveMod product. to that data as We focused, near-term a fulfillment, Insight complement are insights could the familiar part recognize mining, industrial we to Cyngn we presents bring believe Cyngn perfect domains with of to that Infinitracker manufacturing, additional logistics, explore revenues. generating construction and the and As ES opportunities which to we Infinitracker continue the begin immediately

long we a strategic We pleased that with need product resellers. to for that value-add fulfillment and we'll be potential significant as continuous first the e-commerce that term, partners and large multibillion-dollar opportunities this and corporations. and customer We resellers, with have that also booking We've the Infinitracker believe global act received especially see will product the offering significant to account-based as pursuing through enterprise for sales our continues begun growth grow for over expense. report are has already

to vehicle production officially needed on April. vehicle hardware autonomous our February, module. and the Kit off launch AV technology assembly Moving all early autonomous the We line for excited began were the DriveMod to in back integration equipped contains of sensors our it DriveMod hardware DriveMod coming products, core found for fully Kit, and in advanced integration. patent application we

necessary market. the vehicle Installation of this with million This will is we and placement market, today. their easily other required. of can mind, While lower have $XX our and just the manufacturers closely for Colombia we Vehicle the be go-to-market we company working be and to brands the training April closing On in kit funds, announced have models. With opportunity begin that the to private what plan. turnkey to vehicles, we improved technology on special a Cyngn's ensure volatile solutions reap to retrofit funding to These execute safety resources the new autonomy, of operational the increased no DriveMod of believe fit for and lead industrial logistics benefits can Kit beginning been XX, priced in costs especially develop be as productivity, transaction such at with easily to Group industrial quickly of vehicles. rapid and AV done can adoption adapted both

our We select on top on are remain continue that, according building to recurring talent, revenues track to and additional We to working with our scale about both out AES. to turn our I'll excited which strategic successful team results. Don are and while partners of our review come. and productization With deployment deployments to of to with deliver financial time over key line it original commercialization what's

quickly financial XXXX. over first quarter highlights I'll go Lior. the Thanks, the for of

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

As generation anticipate many pre-revenue in and for quarters, generate did Infinitracker. revenue know, a months however, we particularly of ended coming with We you any X the do, such, XX, launch the and March start XXXX. the the not of XXXX of revenue company as are

the quarter our company. in for costs compared $X.X operating was as $X.X and For year. well increase a This XX, March additional to expenses were stock-based related to quarter as same to incurred G&A prior million total expenses increase personnel million the first a XXXX, due public support ended the compensation to of primarily for $X.X services status million non-cash as professional

also in offices Additional to the the increase G&A our expansion contributed Park of costs to occupancy Menlo related expenses.

to also R&D additional occupancy in a allocated incurred expenses stock-based staff costs contractors, non-cash $XXX,XXX We and costs travels. also for increase incurred and R&D-related engineering related compensation,

level compared appropriate support efforts. of to previously a loss quarter total quarter increase personnel million for towards result $X.X we of net XXXX each quarter the in increase disclosed, million to quarter -- of a the other the the work net a reported in of prior we costs As our as for incrementally as engineering year the R&D we to with We of $X.X OpEx. first R&D loss and expect

ended XXXX, diluted share year on million average million was share share based compares per prior in weighted approximately approximately XX, outstanding. and per the a of weighted on the per to net March This For XX.X on loss a shares basis a on based quarter loss $X.XX basic $X.XX net quarter. basis diluted and basic X shares

million in XXXX, cash Turning the cash of the XX, sheet. March compares XXXX. to $XX.X equivalents end and $XX.X which We had of to million at balance as

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

expenses. transaction, we proceeds million, of total As from earlier, resulted $XX.X placement Including restricted equity million was working fees offering including April, and stockholders' and Lior of $XX.X net cash other March the and respectively. of XX, in cash this and million underwriter equivalents, the private capital deducting $XX.X mentioned pro $XX.X million, XXXX cash, as after proceeds forma approximately which end completed at a

the the Following it well come. initiatives Lior? positioned like now execute to placement, to turn to private strategic our to and in quarters over Lior. I'd we're strongly on back capitalized

operator, very It a With let's of months and less And ongoing been appreciate first first that, the remainder the busy nothing We more quarter. it year. the XXXX. look for this open stakeholders our Thank to of support X up milestones Q&A. all the has half reporting I forward you, significant expect in coming of Don. of

[Operator Instructions].

first with comes Dionisio Capital. Our Aegis question Rommel from

I my possible to One, on think weeks. to in initial personnel feedback marketplace busy expanding products? the on the parter. it's the begin been Infinitracker, how guys now second of those question is, about effort really hiring this to do you marketing ramping market or of up in part gotten between DriveMod and terms the in aggressively obviously, you've several if the that share And these Two you've first announcements. just wonder Kit

This is Ben Landen here.

those answer forward marketing in increase those You've with the The me Let sales to effort sales what It moving more moving exactly customers. -- to so our scale focus is up is on Infinitracker of with products touched and reverse order. placing are forward. we that the effort

account-based traditional to much very marketing we'll ranging sales. be So ads from avenues focused on

sales We are staffing the support up that. team to

So -- exactly I can't for what of next you've months. exactly has into terms for DriveMod market focus the acceptance tell Infinitracker in you the the is we the And how of responded. keyed several Kit,

up are working resonated we plan hardware You'd to and to customers. vehicles vehicles to significant so scaling numbers up out XXXX, a those we in out build vehicle seeing the but increase. certainly leading our get with scale up DriveMod with that operating and say for we enabling for the are into who has of towards have on our can to the XXXX those so with we number yourself, that partners the that role increase efficiently with have us and to customers plays that pick effort look can we according I Kit signals that builds deploying it XXXX that laid And can again software

appears back [Operator no Thank and Instructions]. to there Management turn at floor questions remarks. be for ladies closing I'll additional gentlemen, the And to you. time. this

people Thank month welcome today. Menlo Silicon Thank Equity forward and this for look next with firm, to Investor H.C. Valley. you in your of the offices Please hope our to Wainwright We down to Conference free questions. with investors, conversation plan our call. all always time later again The to additional in open see you at Park the yourself out to to to be [indiscernible] and in you much. We're We on speaking or there. very feel to us Relations to some Group our quarterly any reach you Miami

Have disconnect. may with Thank conference. you. day. And today's that now that, a All concludes great parties