Cyngn Inc. Q2 FY2022 earnings call

Pilot Deployments and Product Updates

• Launched and expanded pilot deployment of autonomous stockchaser with Flambeau Inc at their Columbus, Indiana facility. A case study with GL&F showed 64% reduction in human labor costs and 33% increase in productivity.
• Released EAS version 8.0 with major backend/infrastructure improvements and over 100 new features, reducing component complexity and cloud costs.

Recruitment Efforts

• Filled several key positions during the second quarter, with 62 employees as of July 31, 2022, a net increase of 29 since the end of last year. Team is focused on hybrid/distributed work and hiring domestically, out of state, and internationally for cost-effectiveness and talent acquisition.

Cyngn is a pre-revenue company. For the second quarter ended June 30, 2022, there was no revenue generated. Operating expenses were a key aspect, but no product segments with revenue contribution to report as it's pre-revenue.

Forward-Looking Statements

• Anticipate nominal revenue generation from pilot deployments and other products/services in coming quarters.
• Continue to invest in resources to support commercializing the Enterprise Autonomy Suite (EAS).

Risks

• Forward-looking statements are subject to risks and uncertainties as outlined in SEC filings, which could cause actual results to differ from projected ones. Risks include factors that could impact the company's ability to commercialize EAS and meet revenue expectations.

Q: Could you characterize the hiring environment, especially with tight labor market and tech layoffs?

A: COVID led to hybrid/distributed work setup. Concentrated team in Menlo Park, hiring domestically, out of state, and internationally. Currently able to hire desired talent; cost increases are somewhat offset by hybrid work.

Q: Are future potential partnerships or sales delayed by macroeconomic uncertainty?

A: Organizations are more cautious with spend, but autonomy/automation is recession-resilient. Supply chain has efforts to add alternatives and reduce dependence on China. Overall, optimistic and working according to timeline.