MENLO PARK, CA – Cyngn Inc. (NASDAQ:CYN), a computer programming services company with a market capitalization of just $1.76 million, has received a notice from The Nasdaq Stock Market LLC regarding non-compliance with the exchange’s minimum bid price requirement. According to InvestingPro data, the stock has lost nearly 99.6% of its value over the past year, with shares currently trading at $0.08. The notice, dated February 6, 2025, indicates that Cyngn’s common stock has failed to maintain the minimum $1.00 per share bid price as stipulated by Nasdaq Listing Rule 5550(a)(2). InvestingPro analysis reveals concerning fundamentals, with the company’s Financial Health Score rated as WEAK and revenue declining by 94% in the last twelve months.
In contrast to the typical 180-day period granted to regain compliance, Cyngn is ineligible for this timeframe due to previous reverse stock splits. The company has conducted reverse stock splits within the last two years with a cumulative ratio exceeding 250 to one, thus precluding the standard grace period under Listing Rule 5810(c)(3)(A)(iv).
Cyngn intends to appeal this decision and will request a hearing with the Nasdaq Hearings Panel by February 13, 2025. This action will temporarily suspend the delisting process and allow Cyngn’s stock to continue trading under the ticker symbol "CYN" until the Panel reviews the case.
To address the compliance issue, Cyngn has already received shareholder approval for a reverse stock split ranging from 1-for-5 to 1-for-150 on January 30, 2025. Moreover, the company secured the necessary consent from a majority of investors in certain Securities Purchase Agreements dated December 20, 2024, and December 30, 2024. The Board of Directors approved a 1-for-150 reverse stock split on the same day, and Cyngn plans to promptly implement this measure to regain compliance with Nasdaq’s minimum bid price requirement.
However, there is no guarantee that the Panel will accept Cyngn’s compliance plan or allow the company to remain listed on the exchange. If the Panel does grant a compliance period, Cyngn must meet all continued listing requirements within that timeframe. Despite challenges, InvestingPro data shows the company maintains a current ratio of 2.43, suggesting adequate short-term liquidity. Subscribers can access over 30 additional financial metrics and exclusive insights about Cyngn’s financial health and market position.
This news is based on a press release statement and reflects the current situation regarding Cyngn’s listing on the Nasdaq exchange.
In other recent news, Cyngn Inc. has seen a series of significant developments. The company’s shareholders approved an amendment to increase the authorized common stock and the potential for a reverse stock split, raising the authorized common stock from 200 million to 400 million shares. Additionally, Cyngn has expanded its automation footprint in the Consumer Packaged Goods logistics and automotive industry with the deployment of its DriveMod Tugger.
The company also secured $33 million in funding aimed at accelerating its growth, particularly in scaling production and deployment of its DriveMod Tuggers and advancing the commercial release of DriveMod Forklifts. In another financial move, Cyngn completed a $9 million stock offering, bolstering its general corporate purposes and working capital.
These developments represent the company’s strategic efforts to adjust its capital structure, expand its automation footprint, and secure the necessary funding for its growth. Analysts from Aegis Capital Corp. and firms such as Sichenzia Ross Ference Carmel LLP and Kaufman & Canoles, P.C. have been involved in these proceedings. These are recent developments, and further updates are expected in the future.
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