Cyngn (CYN) 11 Aug 222022 Q2 Earnings call transcript

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

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

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

and everyone. Carolyne, good you, Thank afternoon

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In particular, priorities and deployments main material pilot on engineering. stockchaser autonomous expanding Our were handling, efforts of recruitment. our recruitment focus

this minutes, In for deployment facility foot The Columbus, pilot of they're deployment. and Flambeau's Stockchaser member operations. companies. excited of to and this bring manufacturing seeing video various presentation the Nordic featuring their Autonomous with Inc, with that very in including Manager to deployment part distribution footage XXX,XXX pleased Flambeau through our point, thrilled of the of we first to General the this will Flambeau share are We're of in facility, is of vehicles taking Flambeau launch of few stockchaser our expand with immediately our a Group where we're handling a they an share specialize in value autonomous a Indiana, square the the places manufacturing the material On and with action pilot partnership industries. interview additional products Nordic as as Group autonomous

Las and case GL&F, Cyngn's example our month, in whom customers released Suite Another value we operated compared beginning for that be in when human quantified late in Global and The reduction compared electric deployed of The using handling project. found impact, can the XX% XX% their in last numbers industrial has facility productivity speak technology at Vegas Enterprise operated on brings a seen to which for stockchaser when manually material forklifts, to Autonomy or that costs the using XPL Fulfillment labor themselves. XXXX. we Logistics or case autonomous increase a autonomy study study manually

made enabled greater Additionally, Flambeau the potential increases vehicle is with facility, higher the throughput the the well a Suite, one our have allowed autonomous features feedback component us to the important the a like solution. reducing step Cyngn's and insights complexity costs. computing EAS released efficiencies GL&F over version in gather improvements that to X.X few make we each commercialization. weeks significant with and key in improvement XXX includes the our of ago. an is Deployments that us new savings value and with X.X and that infrastructure, release have milestone just backend cloud culminating and further client Enterprise to as towards major over EAS as This to Autonomy

to point Moving of half for the second of recruitment. year focus the the first

excited months. to several quarter, We are filled in very successful during second recent in this have positions key are area the and

of last year. since XX, Cyngn increase employees, a had XX the net of XX end July XXXX, of As

just already critical seven future milestones months, talent competitive. ability to We continues team organization financing to motivated have putting of size in intended highly our of be doubled process our remain that believe the of the to We to use. their and top achieve

a where their daily to stockchaser Flambeau value believe that, results. recently cutting was the and featuring leading that platform share will Presentation] on workflows, financials, our [Video every impact autonomy hear in a turn truly it move from Before deployed. outlook some that technology and towards to we alongside I'll our time now increasing make will sharing autonomous immediate words industrial We're working Manager be the financial the General by this lowering X.X. vehicles, we the video data with can factor their We turning costs. Don autonomous software to facility excited people from productivity edge review of And industry our over review bringing our

and total OpEx. highlights make which of expenses, our half Lior. quickly quarter the financial first XXXX, up and for second Thanks, go I'll both over R&D covering G&A

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

As the revenue any pre we three not company, for the ended months did XXXX. and revenue June XXXX, generate XX,

compensation, a same costs of products engineering start from R&D allocated quarter to million, the and related additional the was and expenses million stock pilot to do increase XXXX the occupancy cash The non ended were June expenses million services primarily second staff other contractors, related of and we costs. quarters. nominal the anticipate coming compared operating incurred based for to XX. costs $X.X $X.X prior and R&D travel in $X.X increase year. due Total deployments, for revenue generation However, in for the quarter

square in as also costs We occupancy and and continue status EAS. to company's net we reported a expenses. continue diluted per share support prior to cash our higher of million related expenses XXXX. X on of commercializing a loss weighted the by outstanding average in quarter basis year a ended for company to loss also support to footage based loss Park of quarter per professional of as operating a diluted million $X.XX $X.X G&A quarter. costs resources on basic expanded was was stock Menlo compares $X.X public $X.X investing for personnel renewal increase as prior increased XX, the a expense, costs million a offices. million on the million, in shares to per of and based XXXX, $XX.X compared outstanding June based net basic share net to average the to the loss result incurred on of expect shares $X.XX, increased that non these Net which and compensation year share of increased second approximately our basis weighted additional the This services to a the related approximately for We quarter lease

year $XX.X based loss For share compared six This million period. loss Net million, period. basis year XX, a $X.X expense, the prior to shares loss in a was compared $X.X $X.X months period. weighted approximately million the prior a and outstanding basis due average average million on prior loss Net expense. R&D expenses XXXX the $X.XX, based the per a in June share in weighted year increase first net was million are operating half in to G&A of diluted XXXX, approximately diluted $X.X net a shares for in was increase million the X basic a million $X.X and of compared of $X.XX and million ended per basic on outstanding on on to $X.X total to

Turning to sheet. balance the

investments end million $XX.X XXXX, in to million the at $XX.X which cash June compares have and marketable XXXX. in We securities of XX, at

now $XX.X equity was capital million the total compared December end million of $XX.X XXXX. million was it I'd XXXX. compared at Lior. to like to working back Lior? turn stockholders to $XX.X Our to And XX, at million $XX.X

Thank to are deployments maturity With for a closely you, working with from to come up Don. our consistency it platform expect point, let's Q&A. move technology the and open to partners product To customers forward Cyngn operator, will and brand. close, we with that, that and continue together

Instructions] your from with Our first comes question. Dionisio Aegis. Please you. [Operator Rommel state question Thank

feel hear question. tight my layoffs, the hiring company another moving could There's a state. flip could market. Thanks people automotive give on? Thanks. are moving so a leaving a taking granularity on you. you labor the you want guys characterize us us give if the tech have the environment. us Obviously, you Maybe reach But side, the many to of successfully. parts, Thank for getting wonder Could we prominent barrier, very you you little But you as I that? headcount just environment for for on added to maybe you hiring?

joining you Hi, Thank us today. Sure. Rommel. for

very more a to when through the ended distributed effective to being work can things Park us ended of of up more come people of sense a from is the out went for COVID and need the hiring need a also where in sort be in makes test doing office of to more of in both business. where home, it's organizations the another, or we team other up hybrid working one in One other needed, facility but for and both country vehicles to states effective. concentrating to What including byproduct parts us, and that a go to Menlo setup in is close in And that domestic it, cost that manner. it places

hire So moment, the at by at have is day. we fact the we're up, prices actually to the significantly. the the you very office went exactly of want. But that compensated some able not every but cost people everyone The don't

So recruiting. us it's been for very year a in successful so far,

Okay, And follow quick good. a up, I may. if

market future any macro and stock sense be issues, issues potential get uncertainty there. overall already, of chain some in that but announcements of successful uncertainty global, Thanks. obviously, economic some any, sort Are issues? delayed obviously continued might do of these you've supply there you by partnerships partnerships had way Some any

what just you you partnerships, to? elaborate say Can when Thanks. refer you

I'm sorry, more that time? Lior, say one

refer? you say you Can explain you what partnerships, do just when

the all. potential just Oh, I processes, the obviously, successful Colombia days, just and you've they sales wonder if and very factors Greenland, are or challenges down just slowing technology But of marketing that perspective customers. from at your macroeconomic some like, -- strategic every initial faces company no, process some And partners. got these

resilient generally So giving cost comes more overtime cautious human type But are more some of is sort it a it's to on of product. a by And reduction labor reducing people's to operation spend. because of good autonomy, when flexibility. and question. it recession automation, makes the impact degree Organizations on dependence

customer of two supply One the the the sort have chain feeds components the that this drive market. us, sides And said, vehicles, other is for the We is, to market. facing. into like

if the has, facing, customers with to the or the things support of come an operating either really On line, is work new in off that they're customer ability allows want new vehicles one they fleet invest retrofit to be or vehicles to already existing Columbia and in the have not to that willing not the customer the existing that the able ready way fleet. us

we the things that. components general partnerships on the we're in optimistic chain, seems on expanding That investing to and reducing alternatives one supply buying, to domestically in aspect the working On according the Europe more be we're started so But timeline. everything China. to and more plan of in the U.S. is the our adding far, dependence we're the

you so Thank Okay. much.

you. appears turn I'll Thank the questions that's for closing you. to floor management the all [Operator back we Instructions] for It today. Thank have remarks.

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concludes disconnect. day. All may parties Have great Thank you. a This today's conference.