Cyngn Inc.

Greetings and welcome to Syngin's second quarter 2020 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference to your host, Ben Merrick, Head of Investor Relations. Thank you. You may begin.

Thank you, Operator, and thank you to everyone on the call for joining us today. The press release announcing Syngin's results for the second quarter, ended June 30th, 2023, is available at the Investors section of the company's website at investors.syngin.com. A replay of this broadcast will also be made available on the website approximately one hour after the conclusion of this call. Before we get started, I would like to remind everyone that this conference call and any accompanying information discussed herein contains certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as anticipate, believe, expect, future, plan, outlook, and will, and include, among other things, statements regarding the company's continued development of its commercial products, expectations regarding sales and or revenues, growth strategy, ability to deliver sustainable long-term value, ability to respond to the changing environment, and operational focus. Although the company believes that the expectations reflected in its forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove to be correct. Information about the risks associated with investing in Syngin is included in its filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision. The company does not assume any obligation to update any forward-looking statements as a result of new information, future events, changes in market conditions, or otherwise, except as required by law. On today's call, Zinja's Chairman and CEO, Lior Taal, will discuss recent operating highlights. Chief Financial Officer Don Alvarez will follow with a review of the company's financials for the second quarter of 2023. Lior will then return to make a few concluding remarks before opening the floor for questions. And with that, I will turn the call over to Lior.

Thanks, Ben. Good afternoon, everyone. During the second quarter, we made significant progress in all areas of the business, but particularly on applying to sign up new commercial customers and deployments. In a moment, I'll talk in more detail about the major announcement we've made over the past few weeks. But first, for those new to our story, I want to give a brief overview of Syngent and the significant opportunity we're delivering on. We're an autonomous vehicle solution company that's focused on addressing industrial uses for autonomous vehicles. Our vehicle agnostic software enables industrial enterprises to harness autonomous driving to overcome labor shortages, increase safety, and reduce the costs associated with labor. Our Enterprise Autonomy Suite, or EAS, enables vehicles to use artificial intelligence to navigate the world around them. And as one of the pioneering AI development companies, we have been excited to see the increasing proliferation of AI into all aspects of life. The use of AI to improve safety, productivity, and efficiency in manufacturing, logistics, and other industrial sectors is on the cusp of transforming the way work gets done, and Syngen is in the vanguard of that effort. Industrial firms today continue to experience significant labor shortages, which are destined to remain a bottleneck as demographic changes and worker sentiment impact the pool of available workers. In fact, in the July jobs report from National Federation of Independent Business, 92% of business owners surveyed reported few or no applications for positions they were trying to fill, a two-point increase from June. Companies are also focused on improving the safety of their workplace environment while improving efficiency to compete with peers who are deploying the latest automation technologies. Given these needs and based on the number of industrial vehicles in operation in the world today, We conservatively estimate that the addressable market for self-driving industrial vehicles is over $200 billion today. Syngent's flexible vehicle agnostic solutions are perfectly designed to penetrate this market, a process we have already started with our initial commercial stock chaser deployment in the first quarter. During the second quarter, we continued to meet milestones and make progress on our paid NRE contract, to adapt drive mode proprietary localization technology to a major global heavy industry OEM. In April, we announced that we had successfully completed phase two of this multi-phase project, which implemented autonomy technology not currently used in the mining industry and would allow an increase in uptime for autonomous mining vehicles with the potential to drive significant operational improvement. More recently, we also announced that we partnered with MOTRAC, a manufacturer of electric industrial vehicles, to integrate Syngent's autonomy technology into MOTRAC's MT-160 Tugger. The MT-160 is a robust vehicle offering 6,000 pounds of towing capacity, and with the addition of Syngent's technology, will soon be capable of autonomously and safely hauling goods through various industrial environments. MOTREC Tuggers operate around the globe for notable customers such as GM, FedEx, Tesla, and Walmart. We're very excited to extend our drive mode autonomy system to another popular vehicle type and offer an even more compelling solution to potential customers who own sizable fleets of multiple industrial vehicle types. Turning now to our drive mode stock chaser product. At the end of July, we announced an agreement with a Fortune 100 heavy equipment manufacturer to use our drive mode-enabled stock chaser in one of their many facilities. This customer uses hundreds of stock chasers in facilities across the globe, and the initial deployment, our second commercial stock chaser deployment, has the potential to grow significantly in the future as we prove out the flexibility and capability of our drive mode stock chaser solution. This further confirmation of demand for our autonomous stock chaser is testament to the market need for a flexible and innovative approach to industrial vehicle autonomy offered by Syngent. I look forward to updating you on additional deployment through the remainder of the year. Our biggest recent news occurred just yesterday when we shared the significant development from our autonomous forklift project and announced that we have secured a pre-order of 100 drive mode-enabled autonomous forklifts from Arauco. Arauco is a $7 billion global wood supplier, a leader in the furniture and construction industries, and the sponsor of the autonomous forklift development project we announced last year. Arauco's order resulted from the successful development work we did to adapt BYD forklifts to enable self-driving capabilities. We'll now show a short video that highlights the capabilities of the autonomous drive mode forklift and demonstrates why Arauco placed the order and why we're already securing firm orders for the product that will be available in 2024.