Cyngn Inc. Q4 FY2022 earnings call

• Cyngn's mission is to solve industry challenges related to labor cost, shortages, and accidents using its Enterprise Autonomy Suite (EAS) and DriveMod. • Achievements in 2022 include collaborating with Columbia Vehicle Group, launching Version 8.0 of EAS, signing contracts for electric forklifts and mining equipment. • Appointed Chris Wright as Head of Sales in December 2022. • Aimed to advance commercial success, continue forklift project development, and work on heavy industrial products in 2023.

In the fourth quarter ended December 31, 2022, Cyngn reported $262,000 in revenue. Of this, $250,000 was related to the completion of the first phase of one of two multiphase nonrecurring engineering development contracts signed in 2022. These contracts have a total value of $1.6 million.

• In 2023, advance initial commercial success from 2022, building on stockchaser deployment and customer engagements. • Continue to meet development milestones on forklift project, targeting mass market release of autonomous electric forklift. • Work to meet requirements of multi-stage development contract on heavy industrial vehicles, aiming to release commercial products in mining in the next year.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from projections. Risks associated with investing in Cyngn are included in SEC filings.

Q: You have multiple paths to commercialization for the DriveMod stack. Is it too early to tell which is more promising for 2023 or 2024 and any pricing information?

A: Stockchasers are most advanced for commercialization. The initial contract with U.S. Continental validates pricing based on human labor costs.

Q: Do you see international expansion as a significant opportunity in mining and materials handling and how to build an international sales force?

A: Being a software company working with OEMs allows global expansion through their global footprints and focus on private spaces reduces regulatory hurdles.

Q: To what extent do Infinitracker play a part in revenues and outlook?

A: Infinitracker is a natural fit into EAS, seen as an additional opportunity to create value for customers.

Q: Related to non-reoccurring engineering contract revenues, is it related to pilot vehicles? And scope of mining contract?

A: NRE contracts are engineering development for commercial-ready vehicles. The mining contract is targeting outdoor open pit mining.

Q: Guidance on cash at end of first quarter 2023?

A: Ended 2022 with ~$22.6 million in cash, burn rate in first quarter not dramatically different from fourth quarter, enough cash for the year.

Q: Feedback from potential customers on U.S. Continental contract and expected similar announcements?

A: Got positive response, moving through adoption curve, expecting more success stories in 2023.

Q: View on vehicle automation replacing or supplementing conveyor belt technology?

A: Autonomy in industrial settings brings flexibility and configurability, can supplement conveyor belt operations by streamlining repair processes.