Cyngn Inc. Q3 FY2022 earnings call

• Signed a multiphase contract with a significant new customer to apply DriveMod to electric forklift, expanding DriveMod to a second vehicle platform.
• Contracted with a U.S.-based manufacturer to scale production of DriveMod Kits for autonomous stockchasers, aiming to lower costs and expand deployment.
• Contracted with HEVI to be exclusive supplier of vehicle tracking systems (Infinitracker) on HEVI's electric industrial vehicles, validating Infinitracker's value.
• Surpassed major 2022 milestones set since going public, including deploying EAS at multiple sites and expanding DriveMod to a second vehicle type.
• Expanded Menlo Park headquarters to include an autonomous vehicle development and test facility.

No detailed product segment financial performance with revenue contribution % provided in the transcript.

• Expect R&D and G&A expenses to continue increasing as they invest in building the engineering team and supporting public company status.
• Look forward to 2023 and beyond, aiming for recurring revenue streams via Software-as-a-Service and robotics-as-a-service models, and scaling commercialization.
• Anticipate making key personal hires in the coming months.

• Forward-looking statements subject to risks and uncertainties from filings with the SEC, including market conditions, ability to respond to changing environments, and operational focus, which could cause actual results to differ from projections.

Q: Could you give milestones related to recent contracts in the next 12 months?

A: For DriveMod on stockchasers, focus on larger deployments and moving to commercial contracts beyond pilot; for HEVI, initial few dozen Infinitrackers with expansion over time; for forklift, will update once more milestones cleared.

Q: Any expectation of significant R&D expense growth before year end?

A: R&D expenses will continue to increase, though not as dramatically as Q1 to Q2; some high-paying positions planned for later quarters.

Q: Thoughts on outsourcing sales for Infinitracker and SaaS revenue growth?

A: Doing a combination of in-house B2B sales and looking for leveraged opportunities via distribution channels/value-add resellers; Infinitracker seen as a springboard for revenue and customer onboarding; telecoms providers are a meaningful partner opportunity for Infinitracker.