CYNGN Inc.

CYNGN Inc. (NASDAQ: CYN) is a self-driving vehicle (AV) technology corporation that focuses on industrial applications of driverless vehicles. The business builds autonomous driving algorithms that may be used on a variety of vehicles in diverse conditions.

Key Highlights

• CYNGNis a prerevenue firm, which means it has no revenue for the years ending December 31, 2021, and 2020.
• Total operational expenditures for the fourth quarter ending December 31, 2021, were $3.6 million, up from $2.3 million in the same quarter the previous year. The rise was mostly attributable to a $500 thousand R&D expense and a $1.1 million increase in general and administrative expenditures required to support the business's transition to a public company.
• In Q4 2021, CYNGN Inc. recorded a net loss of $2.1 million, which was relatively constant on YoY.
• For the quarter ended December 31, 2021, net loss per share was $0.10, compared to a net loss per share of $2.38 per share from last quarter.
• As of December 31, 2021, the company had cash and cash equivalents of USD 21.9 million which has increased from $6.1 million from last year. This cash includes proceeds from the IPO as well.
• CYNGN announced the Drive Mod kit on April 21, 2022, which is aimed to simplify retrofitting of current industrial vehicles or integration onto newly produced vehicles. The shares of CYN increased by 83% the same day, closing at $2.12.
• Technical and phycological resistance of $2 has been broken, which can now act as a support on daily time frame.
• The price was consolidating in the range of $1-$2 since February 2022, which has been broken because of the Drive Mod kit release news.

Conclusion

Considering improved last year financials, big news release and technical analysis. We recommend a "Watch" rating on the stock at current market price of USD 1.92 as of 7:00 AM PDT on April 22, 2022.

Technical Price Chart (as on April 22, 2022, at 07:00 AM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical analysis summary

Source: REFINITIV, Analysis by Kalkine group

* Market price as of 7:00 AM PDT on April 22, 2022

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.