Cyngn reports first revenue of $262k in Q4; net loss widens to $5.5M

● Revenue was $262 thousand for the quarter compared to zero revenue in the fourth quarter of 2021. This revenue was primarily related to multi-phase non-recurring engineering (“NRE”) development contracts. Total operating expenses in the fourth quarter were $5.8 million, up $2.2 million from $3.6 million in the prior year quarter, mainly due to increases in personnel costs, professional and contractor fees, and occupancy costs. General and Administrative (“G&A”) expenses were $1.4 million higher in the fourth quarter of 2022, compared to the fourth quarter of 2021, due to the increase in personnel costs and professional services necessary to support public company compliance requirements. The increase in operating expense was also driven by a $0.7 million year-over-year increase in Research and Development (“R&D”) expense due to higher personnel costs incurred for the addition of top-quality engineering staff, contractor costs, increased occupancy costs, and R&D-related travel costs.

● Full-year revenue was $262 thousand compared to zero revenue in 2021 primarily as a result of the NRE contracts mentioned above. Total operating expenses in 2022 were $19.5 million, an increase of $10.1 million from $9.4 million for the fiscal year 2021. The increase was due to higher G&A and R&D expenses for the reasons outlined above. ● Net loss for the fiscal year in 2022 was $19.2 million compared to $7.8 million in the prior year. Net loss per share on a basic and diluted basis was $0.62 based on a weighted average of 31.2 million shares for the year ended December 31,2022. Net loss per share in 2021 was $1.33 based on a weighted average of 5.9 million shares.