Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 17, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | CYNGN INC. | |
Trading Symbol | CYN | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 26,434,285 | |
Amendment Flag | false | |
Entity Central Index Key | 0001874097 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40932 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-2007094 | |
Entity Address, Address Line One | 1015 O’Brien Dr | |
Entity Address, City or Town | Menlo Park | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94025 | |
City Area Code | (650) | |
Local Phone Number | 924-5905 | |
Title of 12(b) Security | Common stock, $0.00001 | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 1,650,684 | $ 6,056,190 |
Restricted cash | 50,000 | 400,000 |
Prepaid expenses and other current assets | 317,783 | 48,852 |
Total current assets | 2,018,467 | 6,505,042 |
Property and equipment, net | 70,197 | 133,805 |
Intangible assets, net | 31,783 | 34,383 |
Total Assets | 2,120,447 | 6,673,230 |
Current liabilities | ||
Accounts payable | 269,231 | 73,016 |
Accrued expenses and other current liabilities | 218,588 | 307,402 |
Total current liabilities | 487,819 | 380,418 |
Note payable, Payroll Protection Program | 1,602,936 | 695,078 |
Total liabilities | 2,090,755 | 1,075,496 |
Commitments and contingencies (Note 11) | ||
Stockholders’ Equity | ||
Convertible preferred stock, Par $0.00001; 21,982,491 shares authorized, issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 220 | 220 |
Common stock, Par $0.00001; 42,000,000 shares authorized, 966,210 and 951,794 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 10 | 10 |
Additional paid-in capital | 114,466,043 | 114,291,505 |
Accumulated deficit | (114,436,581) | (108,694,001) |
Total stockholders’ equity | 29,692 | 5,597,734 |
Total Liabilities and Stockholders’ Equity | $ 2,120,447 | $ 6,673,230 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Convertible preferred stock, shares authorized | 21,982,491 | 21,982,491 |
Convertible preferred stock, shares issued | 21,982,491 | 21,982,491 |
Convertible preferred stock, shares outstanding | 21,982,491 | 21,982,491 |
Common stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 42,000,000 | 42,000,000 |
Common stock, shares issued | 966,210 | 951,794 |
Common stock, shares outstanding | 966,210 | 951,794 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | ||||
Operating expenses: | ||||
Research and development | $ 1,151,109 | 1,496,883 | 2,917,295 | 4,175,302 |
General and administrative | 973,943 | 267,343 | 2,851,061 | 1,947,481 |
Total operating expenses | 2,125,052 | 1,764,226 | 5,768,356 | 6,122,783 |
Loss from operations | (2,125,052) | (1,764,226) | (5,768,356) | (6,122,783) |
Other income, net | ||||
Interest (expense) income | (3,989) | 1,604 | (10,032) | 35,580 |
Other income | 29,856 | 450 | 35,808 | 11,119 |
Total other income, net | 25,867 | 2,054 | 25,776 | 46,699 |
Net loss | $ (2,099,185) | $ (1,762,172) | $ (5,742,580) | $ (6,076,084) |
Net loss per share attributable to ordinary shareholders, basic and diluted (in Dollars per share) | $ (2.17) | $ (1.85) | $ (5.94) | $ (6.38) |
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted (in Shares) | 966,210 | 951,794 | 966,210 | 951,794 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Convertible Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 220 | $ 10 | $ 114,159,150 | $ (100,355,194) | $ 13,804,186 |
Balance (in Shares) at Dec. 31, 2019 | 21,982,491 | 949,086 | |||
Exercise of stock options | 623 | 623 | |||
Exercise of stock options (in Shares) | 2,708 | ||||
Stock-based compensation | 128,903 | 128,903 | |||
Net loss | (2,207,930) | (2,207,930) | |||
Balance at Mar. 31, 2020 | $ 220 | $ 10 | 114,288,676 | (102,563,124) | 11,725,782 |
Balance (in Shares) at Mar. 31, 2020 | 21,982,491 | 951,794 | |||
Net loss | (2,105,982) | (2,105,982) | |||
Balance at Jun. 30, 2020 | $ 220 | $ 10 | 114,288,676 | (104,669,106) | 9,619,800 |
Balance (in Shares) at Jun. 30, 2020 | 21,982,491 | 951,794 | |||
Stock-based compensation | 1,617 | 1,617 | |||
Net loss | (1,762,171) | (1,762,171) | |||
Balance at Sep. 30, 2020 | $ 220 | $ 10 | 114,290,293 | (106,431,277) | 7,859,246 |
Balance (in Shares) at Sep. 30, 2020 | 21,982,491 | 951,794 | |||
Stock-based compensation | 1,212 | 1,212 | |||
Stock-based compensation (in Shares) | |||||
Net loss | (2,262,723) | (2,262,723) | |||
Balance at Dec. 31, 2020 | $ 220 | $ 10 | 114,291,505 | (108,694,001) | 5,597,734 |
Balance (in Shares) at Dec. 31, 2020 | 21,982,491 | 951,794 | |||
Net loss | (2,207,930) | (2,207,930) | |||
Balance at Mar. 31, 2021 | $ 220 | $ 10 | 114,291,505 | (110,901,931) | 3,389,804 |
Balance (in Shares) at Mar. 31, 2021 | 21,982,491 | 951,794 | |||
Stock-based compensation | 96,058 | 96,058 | |||
Net loss | (1,435,465) | (1,435,465) | |||
Balance at Jun. 30, 2021 | $ 220 | $ 10 | 114,387,563 | (112,337,396) | 2,050,397 |
Balance (in Shares) at Jun. 30, 2021 | 21,982,491 | 951,794 | |||
Exercise of stock options | 8,080 | 8,080 | |||
Exercise of stock options (in Shares) | 14,416 | ||||
Stock-based compensation | 70,400 | 70,400 | |||
Net loss | (2,099,185) | (2,099,185) | |||
Balance at Sep. 30, 2021 | $ 220 | $ 10 | $ 114,466,043 | $ (114,436,581) | $ 29,692 |
Balance (in Shares) at Sep. 30, 2021 | 21,982,491 | 966,210 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (5,742,580) | $ (6,076,084) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 68,597 | 68,727 |
Stock-based compensation | 166,458 | 130,521 |
Gain in disposal of assets | (31,356) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (268,931) | 33,440 |
Accounts payable and accrued expenses | 211,957 | (105,700) |
Other current liabilities | (88,812) | 13,983 |
Net cash used in operating activities | (5,684,667) | (5,935,112) |
Cash flows from investing activities | ||
Purchase of property, plant, and equipment | (18,224) | |
Disposal of assets | 47,189 | |
Net cash used in investing activities | 28,965 | |
Cash flows from financing activities | ||
Proceeds from note payable | 892,115 | 695,078 |
Proceeds from exercise of stock options | 8,080 | 623 |
Net cash provided by financing activities | 915,938 | 698,945 |
Net decrease in cash and cash equivalents and restricted cash | (4,755,506) | (5,239,411) |
Cash and cash equivalents and restricted cash, beginning of period | 6,456,190 | 13,680,550 |
Cash and cash equivalents and restricted cash, end of period | 1,700,684 | 8,441,139 |
Supplemental disclosure of cash flow | ||
Cash paid during the period for interest and taxes |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation CYNGN Inc., together with its subsidiaries (collectively, “Cyngn” or the “Company”) was incorporated in Delaware in 2013. Cyngn Singapore PTE. LTD., a Singaporean limited company organized in 2015 and Cyngn Philippines, Inc., a Philippines corporation incorporated in 2018 are wholly owned subsidiaries. The Company is headquartered in Menlo Park, CA. Cyngn develops autonomous driving software that can be deployed on multiple vehicle types in various environments. The Company has been operating autonomous vehicles (“AV”) in production environments. Built and tested in difficult and diverse real-world environments, the self-driving system (DriveMod), fleet management system, and Software Development Kit combine to create a full-stack advanced autonomy solution designed to be modular, extendable, and safe. The Company operates one business segment. Initial Public Offering On October 22, 2021, the Company closed its initial public offering (the “IPO”) of 3,500,000 shares of its authorized common stock at an offering price of $7.50 per share. Simultaneously with the closing of the IPO, the common stock began trading on the NASDAQ Capital Market under the symbol “CYN.” The IPO generated net proceeds of $23.3 million after deducting underwriting discounts, commissions and offering expenses. The Company also granted its underwriters the election to exercise a 45-day over-allotment option to purchase an additional 525,000 shares of common stock at the IPO offering price, less underwriting discounts. Simultaneous with the closing of its IPO, the Company also issued 140,000 warrants (the “Purchase Warrant”) to its underwriters. Each Purchase Warrant entitles its holder the option to purchase at a future exercise date, one share of common stock at an initial exercise price of $9.375 per share, subject to certain adjustments and restrictions relating to subsequent resale and transfers. At the completion of the IPO, all shares of the Company’s outstanding redeemable convertible preferred stock automatically converted to shares of common stock (see Note 7. Capital Structure). Immediately after the IPO, the Company filed an amended and restated certificate of incorporation, which became effective on October 22, 2021. The amended and restated certificate of incorporation authorized 110,000,000 shares consisting of 100,000,000 shares of common stock, at a par value of $0.00001, and 10,000,000 shares of preferred stock at a par value of $0.00001. The rights of the holders of common stock are subject to and qualified by rights of the holders of the preferred stock. Liquidity The Company has incurred losses from operations since inception. The Company incurred net losses of ($5.7) million and ($6.1) million for the nine months ended September 30, 2021 and 2020, respectively, and ($2.1) million and ($1.8) million for three months ended September 30, 2021 and 2020, respectively. Accumulated deficit amounted to ($114.4) million and ($108.7) million as of September 30, 2021 and December 31, 2020, respectively. Net cash used in operating activities was $5.7 million and $6.0 million for the nine months ended September 30, 2021 and 2020, respectively. The Company’s liquidity is based on its ability to enhance its operating cash flow position, obtain capital financing from equity interest investors and borrow funds to fund its general operations, research and development activities and capital expenditures. The Company’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenue while controlling operating costs and expenses to generate positive operating cash flows and obtaining funds from outside sources of financing to generate positive financing cash flows. As of September 30, 2021, the Company’s unrestricted balance of cash and cash equivalents was $1.7 million. As of December 31, 2020, the Company’s unrestricted balance of cash and cash equivalents was $6.1 million. Based on cash flow projections from operating and financing activities and existing balance of cash and cash equivalents, management is of the opinion that the Company has sufficient funds for sustainable operations and it will be able to meet its payment obligations from operations and debt related commitments for at least one year from the issuance date of this report. Based on the above considerations, the Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations (see Initial Public Offering above). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements as of and for the nine months ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to applicable rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements are unaudited and include all normal adjustments necessary for a fair presentation of the Company’s financial position at September 30, 2021 and 2020, and operating results and cash flows for the periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for any subsequent quarter or for the full year December 31, 2021. These unaudited consolidated financial statements should be read in conjunction with the following: i) audited consolidated financial statements as of and for the years ended December 31, 2020; ii) the discussion under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and’ iii) our final prospectus (the “Prospectus”), filed with the Securities and Exchange Commission or the SEC, pursuant to Rule 424(b) under the Securities Act of 1933, as amended or the Securities Act), on October 21, 2021. Principles of Consolidation The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated upon consolidation. The Company’s fiscal year begins on January 1 and ends on December 31. Foreign Currency Translation The functional and reporting currency for Cyngn is the U.S. dollar. Monetary assets and liabilities denominated in currencies other than U.S. dollar are translated into the U.S. dollar at period end rates, income and expenses are translated at the weighted average exchange rates for the period and equity is translated at the historical exchange rates. Foreign currency translation adjustments and transactional gains and losses are immaterial to the consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the balance sheet date, as well as reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates and judgments include but are not limited to share-based compensation. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents. The Company’s cash is placed with high-credit-quality financial institutions and at times exceeds federally insured limits. The Company has not experienced any credit loss relating to its cash equivalents. Concentration of Supplier Risk The Company is not currently in the production stage and generally utilizes suppliers for outside development and engineering support. The Company does not believe that there is any significant supplier concentration risk as of September 30, 2021 and 2020 and December 31, 2020 and 2019. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Additionally, the Company considers investments in money market funds with a floating net asset value to be cash equivalents. As of September 30, 2021 and December 31,2020, the Company had $1.7 million and $6.1 million of unrestricted cash and cash equivalents. In addition, the Company had $50,000 and $400,000 in restricted cash as of September 30, 2021 and December 31, 2020, respectively, which is reported separately as current assets on the consolidated balance sheet. The Company’s restricted cash consists of cash not available for immediate use that the Company is obligated to maintain in accordance with the terms of its credit card spending arrangement. The following table provides a reconciliation of cash and cash equivalents and restricted cash to amounts shown in the consolidated statements of cash flows: September 30, 2021 2020 Cash and cash equivalents $ 1,650,684 $ 8,041,139 Restricted cash 50,000 400,000 Total Cash and cash equivalents and Restricted cash $ 1,700,684 $ 8,441,139 Fair Value of Financial Instruments The accounting guidance defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The carrying amounts of cash equivalents, accounts payable and notes payable are reasonable estimates of their fair values due to the short-term nature of these accounts. Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Repair and maintenance costs are expensed as incurred. Depreciation is recorded on a straight-line basis over each asset’s estimated useful life. Property and Equipment Useful life Machinery and equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of 3 years or lease term Automobile 5 years Leases The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 842. All contracts are evaluated to determine whether or not they represent a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases are classified as finance or operating in accordance with the guidance in ASC 842. The Company does not hold any finance leases. The Company has elected to adopt the short-term lease exemption in ASC 842 and as such has not recognized a “right of use” asset or lease liability in the consolidated balance sheets as of September 30, 2021 and December 31, 2020. Long-Lived Assets and Finite Lived Intangibles The Company has finite lived intangible assets consisting of patents and trademarks. These assets are amortized on a straight-line basis over their estimated remaining economic lives. The patents and trademarks are amortized over 15 years. The Company reviews its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The events and circumstances the Company monitors and considers include significant decreases in the market price of similar assets, significant adverse changes to the extent and manner in which the asset is used, an adverse change in legal factors or business climate, an accumulation of costs that exceed the estimated cost to acquire or develop a similar asset, and continuing losses that exceed forecasted costs. The Company assesses the recoverability of these assets by comparing the carrying amount of such assets or asset group to the future undiscounted cash flow it expects the assets or asset group to generate. The Company recognizes an impairment loss if the sum of the expected long-term undiscounted cash flows that the long-lived asset is expected to generate is less than the carrying amount of the long-lived asset being evaluated. An impairment charge would then be recognized equal to the amount by which the carrying amount exceeds the fair value of the asset. Income Taxes The Company accounts for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance as of and September 30, 2021 and December 31, 2020 (see Note 11. Income Taxes). There are no uncertain tax positions that would require recognition in the financial statements. If the Company were to incur an income tax liability in the future, interest on any income tax liability would be reported as interest expense and penalties on any income tax would be reported as income taxes. Management’s conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analysis of or changes in tax laws, regulations and interpretations thereof as well as other factors. Convertible Preferred Stock The Company has applied the guidance in Accounting Standards Codification (“ASC”) 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities Stock-based Compensation The Company recognizes the cost of share-based awards granted to employees and directors based on the estimated grant-date fair value of the awards. Cost is recognized on a straight-line basis over the service period, which is generally the vesting period of the award. The Company recognizes stock-based compensation cost and reverses previously recognized costs for unvested awards in the period forfeitures occur. The Company determines the fair value of stock options using the Black-Scholes option pricing model, which is impacted by the fair value of common stock, expected price volatility of common stock, expected term, risk-free interest rates, and expected dividend yield (see Note 9. Stock-based Compensation Expense ) Net Loss Per Share Attributable to Ordinary Shareholders The Company computes loss per share attributable to ordinary shareholders by dividing net loss attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised into shares. In calculating diluted net loss per share, the numerator is adjusted for the change in the fair value of the shares (only if dilutive) and the denominator is increased to include the number of potentially dilutive common shares assumed to be outstanding (see Note 8. Net Loss per Share Attributable to Common Stockholders). Research and Development Expense Research and development expense consist primarily of outsourced engineering services, internal engineering and development expenses, materials, labor and stock-based compensation related to development of the Company’s products and services. Research and development costs are expensed as incurred. Selling, General, and Administrative Expense Selling, general, and administrative expense consist primarily of personnel costs, facilities expenses, depreciation and amortization, travel, and advertising costs. Commitments The Company recognizes a liability with regard to loss contingencies when it believes it is probable a liability has occurred and the amount can be reasonably estimated. If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, the Company accrues that amount. When no amount within the range is a better estimate than any other amount the Company accrues the minimum amount in the range. There have been no such liabilities recorded by the Company as of September 30, 2021 and December 31, 2020. Segment Reporting The Company’s chief operating decision maker, its Chief Executive Officer, manages its operations and business as one operating segment for the purposes of allocating resources, makes operating decisions and evaluates financial performance. Minimal product revenue has been generated since inception and substantially all assets are held in the United States. Revenue Recognition On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Recent Accounting Standards There were no significant updates to the recently issued accounting standards. Although there are several other new accounting standards issued or proposed by the FASB, the Company does not believe any of those accounting standards have had or will have a material impact on its financial position or operating results. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Property and Equipment Property and equipment is comprised of the following: Unaudited December 31, 2021 2020 Automobiles $325,406 $325,406 Furniture and fixtures 125,000 125,000 Computer and Equipment 35,169 26,157 Property and equipment, gross 485,575 476,563 Less: accumulated depreciation and amortization (415,378 ) (342,758 ) Total property and equipment, net $ 70,197 $ 133,805 Depreciation expense for the three months ended September 30, 2021 and 2020 was $21,913 and $22,042, respectively. Depreciation expense for the nine months ended September 30, 2021 and 2020 was $65,998 and $66,127, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are comprised of the following: Unaudited December 31, 2021 2020 Credit card payable $ 45,466 $ 37,455 Accrued expenses 30,526 175,761 Accrued payroll 142,597 94,186 Total accrued expenses and other current liabilities $ 218,588 $ 307,402 On March 27, 2020, the United States Congress passed the Coronavirus, Aid, Relief and Economic Security Act (the “CARES Act”) in response to the economic impact of the coronavirus (“COVID-19”) pandemic in the United States (see Note 13 Risks and Uncertainties). Section 2302 of the CARES Act allowed employers to defer the deposit and payment of the employer’s share of social security taxes that were otherwise required to be deposited between March 27 and December 31, 2020, and to pay the deferred taxes in two installments — with the first half due on December 31, 2021, and the remainder by December 31, 2022. Between May 1 and December 31, 2020, the Company deferred social security taxes due amounting to $135,916. Section 2301 of the CARES Act also provided refundable employee retention credits (the “ERC”) against certain employment taxes. The Company is currently evaluating its eligibility to claim the ERC and the impact of the credits on its consolidated statement of operations. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases Abstract | |
Leases | 4. Leases The Company leases its office space under a recurring lease agreement, with the current 1-year lease agreement entered into on March 2021, expiring in February 2022. Monthly payments are approximately $15,500 and the lease can be renewed for an additional year at the option of the Company. Future minimum payments under the primary terms of the lease are approximately $179,000 for the year ending December 31, 2021 and $31,000 in 2022 until the expiration of the lease in February 2022. Rent expense for the three months ended September 30, 2021 and 2020 was $60,383 and $49,552, respectively. Rent expense for the nine months ended September 30, 2021 and 2020 was $175,391and $127,599, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 5. Intangible Assets, Net The gross carrying amount and accumulated amortization of separately identifiable intangible assets are as follows: As of September 30, 2021 Gross Carrying Accumulated Net Carrying Patent $ 7,000 $ (3,967 ) $ 3,033 Trademark 45,000 (16,250 ) 28,750 Total intangible assets $ 52,000 $ (20,217 ) $ 31,783 As of December 31, 2020 Gross Carrying Accumulated Net Carrying Patent $ 7,000 $ (3,617 ) $ 3,383 Trademark 45,000 (14,000 ) 31,000 Total intangible assets $ 52,000 $ (17,617 ) $ 34,383 Amortization expense for each of the three months ended September 30, 2021, and 2020 was $867. Amortization expense for each of the nine months ended September 30, 2021 and 2020 was $2,600. Estimated amortization expense for all intangible assets subject to amortization in future years is expected to be: Period ending December 31, Amortization Three month period ending December 2021 $ 866 Twelve-month period ending 2022 3,467 Twelve-month period ending 2023 3,467 Twelve-month period ending 2024 3,467 Thereafter 20,516 Total $ 31,783 Years Ended December 31, Amortization 2021 $ 3,467 2022 3,467 2023 3,467 2024 3,467 2025 3,467 Thereafter 17,048 Total $ 34,383 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Payroll Protection Program Note In April 2020, the Company entered into a Note with JPMorgan Chase (the “Lender”) under the U.S. Small Business Administration (SBA) Paycheck Protection Program (“PPP”) established under Section 1102 of the CARES Act, pursuant to which the Company borrowed $695,078 (the “Note”). The Note accrues interest at a rate of 0.98% per annum and matures in 24 months from the date of the Note. The loan may be repaid at any time with no prepayment penalty. All of the funds received under the PPP had been used for qualified purposes. The Company applied for forgiveness of the loan in accordance with PPP guidelines, and in October, 2021, received approval of the forgiveness application (see Note 14 – Subsequent event). In February 2021, the Company entered into a second Note (the “PPP2 Note”) with the Lender, pursuant to which the Lender agreed to make a loan to the Company under the PPP offered by the SBA in a principal amount of $892,115 pursuant to Title 1 of the CARES Act. The PPP2 Note matures in five years with interest accruing at 1% per annum. Proceeds of the PPP2 Note are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves; rent; utilities; and interest on certain other outstanding debt. All of the funds received under the PPP2 Note were used for qualified purposes during 2021. The Company applied for forgiveness of the loan in accordance with PPP guidelines, and in November, 2021, received approval of the forgiveness application (see Note 14 – Subsequent event). |
Capital Structure
Capital Structure | 9 Months Ended |
Sep. 30, 2021 | |
Partners' Capital Notes [Abstract] | |
Capital Structure | 7. Capital Structure Common Stock As of September 30, 2021 and December 31, 2020, the Company is authorized to issue 42,000,000 shares of Common Stock with a par value of $0.00001 per share. As of September 30, 2021 and December 31, 2020, the Company had 966,210 and 951,794 shares of Common Stock issued and outstanding, respectively. Holders of common stock have no preemptive, conversion or subscription rights and there is no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that the Company may designate in the future. Convertible Preferred Stock As of September 30, 2021 and December 31, 2020, the Company’s Certificate of Incorporation authorized the Company to issue up to 21,982,491 shares of preferred stock at a par value of $0.00001, respectively. The authorized, issued and outstanding shares of the convertible preferred stock and liquidation preferences at September 31, 2021 and December 31, 2020 were as follows: Series Shares Authorized Shares Issued and Outstanding Per Share Liquidation Preference Aggregate Liquidation Amount Gross Proceeds Series A 10,157,843 10,157,843 0.6842 6,949,996 6,949,996 Series B 6,567,670 6,567,670 3.3939 22,290,015 22,290,015 Series C 5,256,978 5,256,978 15.7933 83,025,031 83,025,031 21,982,491 21,982,491 112,265,042 112,265,042 Dividends The holders of preferred stock are entitled to receive dividends, when and if declared by the Company’s Board of Directors, out of any legally available funds. The holders of preferred stock are entitled to receive dividends, prior and in preference to dividends declared on common stock, at the rate of: Series A - $0.0411 per share per annum; Series B - $0.2036 per share per annum; and Series C - $0.9476 per share per annum. Dividends are non-cumulative and will be paid pro rata, on an equal priority, pari passu basis. After payment of preferred stock dividends, any additional dividends will be paid ratably among holders of common stock and preferred stock on an as converted to Common Stock basis. As of September 30, 2021 and December 31, 2020, no dividends have been declared. Conversion Each share of preferred stock is convertible to common stock at any time after the date of issuance at a rate of dividing the original issuance price by the conversion price. As the conversion price is initially equal to the original issuance price, the preferred stock is currently convertible on a 1:1 basis, subject to certain adjustments. Voting The holder of each share of Preferred Stock is entitled to voting rights equal to the number of shares of common stock. Preferred stockholders shall cast the number of votes equal to the number of whole shares of common stock into which the shares of Preferred Stock held by such holder are convertible. So long as any shares of Series A Preferred Stock remain outstanding, the holders of the Series A Preferred Stock, voting as a separate class, are entitled to elect one director of the Company. So long as any shares of Series B Preferred Stock remain outstanding, the holders of the Series B Preferred Stock, voting as a separate class, are entitled to elect one director of the Company. So long as any shares of Series C Preferred Stock remain outstanding, the holders of the Series C Preferred Stock, voting as a separate class, are entitled to elect one director of the Company. The holders of Common Stock, voting as a separate class, are entitled to elect two directors of the Company. The holders of Preferred Stock and Common Stock, on an as converted to basis, are entitled to elect any remaining members to the Board of Directors. Liquidation In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, the holders of preferred stock on a pari passu basis, are entitled to receive, prior to and in preference over holders of common stock, an amount equal to the original issuance price—Series A - $0.6842 per share; Series B - $3.3939 per share; and Series C - $15.7933 per share. 2) If the assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Preferred Stock the full amount to which they are entitled, the holders of shares of Preferred Stock shall share ratably in any distribution of the assets available for distribution in proportion to the respective amount which would otherwise be payable in respect to the share of Preferred Stock held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 8. Net Loss Per Share Attributable to Common Stockholders The following table summarizes the computation of basic and diluted loss per share: Nine months Ended 2021 2020 Net loss attributable to common stockholders $ (5,742,580 ) $ (6,076,084 ) Basic and diluted weighted average common shares outstanding 966,210 951,794 Loss per share: Basic and diluted $ (5.94 ) $ (6.38 ) Three months ended 2021 2020 Net loss attributable to common stockholders $ (2,099,185 ) $ (1,762,172 Basic and diluted weighted average common shares outstanding 966,210 951,794 Loss per share: Basic and diluted $ (2.17 ) $ (1.85 ) Basic loss per share is based upon the weighted average number of shares of common stock outstanding during the period. Diluted loss per share would include the effect of unvested restricted stock awards and the convertible preferred Stock; however, such items were not considered in the calculation of the diluted weighted average common shares outstanding since they would be anti-dilutive. Potentially dilutive securities excluded from the calculation of diluted shares outstanding are shown below: Nine Months Ended Year ended 2021 2020 Unvested restricted shares 12,861,949 10,652,680 Common shares issuable upon conversion of preferred stock 21,982,491 21,982,491 Total 34,844,440 32,635,171 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 9 Months Ended |
Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation Expense | 9. Stock-based Compensation Expense Stock-Based Compensation The Company measures employee and director stock-based compensation awards based on the award’s estimated fair value on the date of grant. Expense associated with these awards is recognized using the straight-line attribution method over the requisite service period for stock options, RSUs and restricted stock, and is reported in our consolidated statements of comprehensive loss. The fair value of our stock options is estimated, using the Black-Scholes option-pricing model. The resulting fair value is recognized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award. The Company has elected to recognize forfeitures as they occur. Stock options generally vest over four years and have a contractual term of ten years. Determining the grant date fair value of options requires management to make assumptions and judgments. These estimates involve inherent uncertainties and if different assumptions had been used, stock-based compensation expense could have been materially different from the amounts recorded. The assumptions and estimates for valuing stock options are as follows: ● Fair value per share of Company’s common stock. ● Expected volatility. ● Expected term. ● Risk-free interest rate. ● Estimated dividend yield. Equity Incentive Plans In February 2013, the Board of Directors adopted the 2013 Equity Incentive Plan (“2013 Plan”). The 2013 Plan authorizes the award of stock options, stock appreciation rights, restricted stock awards, stock appreciation rights, RSUs, performance awards, and other stock or cash awards. As of September 30, 2021 and December 31, 2020, approximately 8,206,191 and 9,821,567 shares of common stock were reserved and available for issuance under the 2013 Plan. In July 2021, the Company’s Board of Directors passed a resolution that approved to grant options to purchase 2,692,000 shares of the Company’s common stock at $2.88 per share to certain employees of the Company under the 2013 Plan. Options issued under the Plan generally vest based on continuous service provided by the option holder over a four-year period. Compensation expense related to these options is recognized on a straight-line basis over the four-year period based upon the fair value at the grant date. The following table sets forth the summary of options activity for the year ended December 31, 2020 and the nine months ended September 30, 2021: Shares Weighted-average exercise price Weighted-average remaining contractual term (years) Aggregate intrinsic value Outstanding as of December 31, 2020 6,971,301 $ 0.20 7.0 $ 1,399,827 Vested and expected to vest at December 31, 2020 10,892,738 $ 0.54 7.0 $ 5,860,120 Vested and exercisable at December 31, 2020 5,978,428 $ 0.20 6.9 $ 398,584 Granted 2,692,000 Exercised (14,416 ) 0.23 Cancelled/forfeited (1,056,207 ) $ 0.21 Outstanding as of September 30, 2021 8,592,678 $ 1.04 6.0 $ 8,946,804 Vested and expected to vest at September 30, 2021 11,375,469 $ 0.53 7.0 $ 6,050,155 Vested and exercisable at September 30, 2021 5,505,018 $ 0.22 7.0 $ 1,189,368 The fair value of a stock option is estimated using an option-pricing model that takes into account as of the grant date the exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected dividends on the stock, and the risk-free interest rate for the expected term of the option. The Company has used the simplified method in calculating the expected term of all option grants based on the vesting period and contractual term. Compensation costs related to share-based payment transactions are recognized in the financial statements upon satisfaction of the requisite service or vesting requirements. The weighted average per share grant-date fair value of options granted during the years ended December 31, 2020 and 2019 was $0.07 and $0.07 respectively. The following weighted average assumptions were used in estimating the grant date fair values in September 30, 2021 and December 31, 2020: September 30, December 31, Fair value of common stock $ 6.48 $ 0.23 Expected term (in years) 3.00 6.00 Risk-free rate 0.55 % 0.68 % Expected volatility 65.0 % 29.34 % Dividend yield 0 % 0 % During the three months ended September 30, 2021 and 2020, we recorded stock-based compensation expense from stock options of approximately $70,400 and $46,590, respectively. During the nine months ended September 30, 2021 and 2020, we recorded stock-based compensation expense from stock options of approximately $166,458 and $130,521, respectively. As of December 31, 2020, total unrecognized stock-based compensation cost related to outstanding unvested stock options that are expected to vest was $65,247. This unrecognized stock-based compensation cost is expected to be recognized over a weighted-average period of approximately 1.8 years. |
Retirement Savings Plan
Retirement Savings Plan | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Savings Plan [Abstract] | |
Retirement Savings Plan | 10. Retirement Savings Plan Effective November 17, 2017, the Company established the Cyngn Inc. 401(k) Plan for the exclusive benefit of all eligible employees and their beneficiaries with the intention to provide a measure of retirement security for the future. This plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and qualifies under Section 401(k) of the Internal Revenue Code. Cyngn, Inc. did not offer and has not provided a company match for its 401(k) Plan. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Retirement Savings Plan | 11. Income Taxes For the three months ended September 30, 2021 and 2020, the Company recorded income tax expense of $0 and tax expense of $0, respectively. The effective tax rate is 0% and 0% for the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, the Company recorded income tax expense of $0 and tax expense of $0, respectively. The effective tax rate is 0% and 0% for the nine months ended September 30, 2021 and 2020, respectively. For financial reporting purposes, the Company’s effective tax rate used for the interim periods is based on the estimated full-year income tax rate. For the nine months ended September 30, 2021, the Company’s effective tax rate differs from the statutory rate, primarily due to a valuation allowance recorded against the net deferred tax asset balance . On March 27, 2020, the CARES Act was enacted in response to market conditions related to the COVID-19 pandemic. The CARES Act includes many measures to help companies, including changes that are temporary and non-income based tax laws, some of which were part of the Tax Cuts and Jobs Act. One provision of the CARES Act increases the tax deduction for net operating losses from 80% to 100% for 2018 through 2020 and allows net operating losses generated in 2018 through 2020 to be carried back up to five years. The Company has made reasonable assessments in accounting for certain effects of the CARES Act that was passed. However, the provisional impacts may be refined over the prescribed measurement period. Currently, the Company is not under examination by any taxing authority. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Legal Proceedings The Company is subject to legal and regulatory actions that arise from time to time. The assessment as to whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable, often involves significant judgment about future events, and the outcome of litigation is inherently uncertain. There is no material pending or threatened litigation against the Company that remains outstanding as of September 30, 2021 and December 31, 2020. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 13. Risks and Uncertainties COVID-19. A novel strain of coronavirus (COVID-19) was first identified in December 2019, and subsequently declared a pandemic by the World Health Organization. While Cyngn’s business has experienced limited disruption due to this pandemic, our leadership team continues to focus on the highest level of safety measures to protect our employees. The Company is aware COVID-19 continues to present significant uncertainty in the future economic outlook for our customers and the markets we serve. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events The Company performed a review of events subsequent to the balance sheet date through November 18, 2021, the date the financial statements were issued and determined that there were no other events requiring recognition or disclosure in the financial statements. In October 2021, the PPP Note for $695,078 was approved for forgiveness by our lender in accordance with PPP forgiveness guidelines. The forgiveness of the Note, including accrued but unpaid interest, will be recorded as a gain on extinguishment of debt in our consolidated statements of operations in the fourth quarter of 2021. In November 2021, the PPP2 Note for $892,115 was approved for forgiveness by our lender in accordance with PPP forgiveness guidelines. The forgiveness of the PPP2 Note, including accrued but unpaid interest, will be recorded as a gain on extinguishment of debt in our consolidated statements of operations in the fourth quarter of 2021. On October 22, 2021, the Company consummated its IPO of 3,500,000 shares of common stock at an offering price of $7.50 per share. The IPO generated net proceeds of $23.3 million after deducting underwriting discounts, commissions and offering expenses. The Company also granted its underwriters the election to exercise a 45-day over-allotment option to purchase an additional 525,000 shares of common stock at the IPO offering price, less underwriting discounts. At the completion of the IPO, all shares of the Company’s outstanding redeemable convertible preferred stock automatically converted to shares of common stock. Immediately after the IPO, the Company filed an amended and restated certificate of incorporation, which became effective on October 22, 2021. The amended and restated certificate of incorporation authorized 110,000,000 shares consisting of 100,000,000 shares of common stock, at a par value of $0.00001, and 10,000,000 shares of preferred stock at a par value of $0.00001. The rights of the holders of common stock are subject to and qualified by rights of the holders of the preferred stock. The Company’s board of directors adopted the Cyngn Inc. 2021 Incentive Plan (the “2021 Plan”) and the Company’s stockholders holding a majority of the voting power of the Company approved the 2021 Plan. The 2021 Plan became effective immediately on adoption and replaces the 2013 Plan. However, awards outstanding under our 2013 Plan will continue to be governed by their existing terms. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements as of and for the nine months ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to applicable rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements are unaudited and include all normal adjustments necessary for a fair presentation of the Company’s financial position at September 30, 2021 and 2020, and operating results and cash flows for the periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for any subsequent quarter or for the full year December 31, 2021. These unaudited consolidated financial statements should be read in conjunction with the following: i) audited consolidated financial statements as of and for the years ended December 31, 2020; ii) the discussion under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and’ iii) our final prospectus (the “Prospectus”), filed with the Securities and Exchange Commission or the SEC, pursuant to Rule 424(b) under the Securities Act of 1933, as amended or the Securities Act), on October 21, 2021. |
Principles of Consolidation | Principles of Consolidation The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated upon consolidation. The Company’s fiscal year begins on January 1 and ends on December 31. |
Foreign Currency Translation | Foreign Currency Translation The functional and reporting currency for Cyngn is the U.S. dollar. Monetary assets and liabilities denominated in currencies other than U.S. dollar are translated into the U.S. dollar at period end rates, income and expenses are translated at the weighted average exchange rates for the period and equity is translated at the historical exchange rates. Foreign currency translation adjustments and transactional gains and losses are immaterial to the consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the balance sheet date, as well as reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates and judgments include but are not limited to share-based compensation. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents. The Company’s cash is placed with high-credit-quality financial institutions and at times exceeds federally insured limits. The Company has not experienced any credit loss relating to its cash equivalents. |
Concentration of Supplier Risk | Concentration of Supplier Risk The Company is not currently in the production stage and generally utilizes suppliers for outside development and engineering support. The Company does not believe that there is any significant supplier concentration risk as of September 30, 2021 and 2020 and December 31, 2020 and 2019. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Additionally, the Company considers investments in money market funds with a floating net asset value to be cash equivalents. As of September 30, 2021 and December 31,2020, the Company had $1.7 million and $6.1 million of unrestricted cash and cash equivalents. In addition, the Company had $50,000 and $400,000 in restricted cash as of September 30, 2021 and December 31, 2020, respectively, which is reported separately as current assets on the consolidated balance sheet. The Company’s restricted cash consists of cash not available for immediate use that the Company is obligated to maintain in accordance with the terms of its credit card spending arrangement. The following table provides a reconciliation of cash and cash equivalents and restricted cash to amounts shown in the consolidated statements of cash flows: September 30, 2021 2020 Cash and cash equivalents $ 1,650,684 $ 8,041,139 Restricted cash 50,000 400,000 Total Cash and cash equivalents and Restricted cash $ 1,700,684 $ 8,441,139 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The accounting guidance defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The carrying amounts of cash equivalents, accounts payable and notes payable are reasonable estimates of their fair values due to the short-term nature of these accounts. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Repair and maintenance costs are expensed as incurred. Depreciation is recorded on a straight-line basis over each asset’s estimated useful life. Property and Equipment Useful life Machinery and equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of 3 years or lease term Automobile 5 years |
Leases | Leases The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 842. All contracts are evaluated to determine whether or not they represent a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases are classified as finance or operating in accordance with the guidance in ASC 842. The Company does not hold any finance leases. The Company has elected to adopt the short-term lease exemption in ASC 842 and as such has not recognized a “right of use” asset or lease liability in the consolidated balance sheets as of September 30, 2021 and December 31, 2020. |
Long-Lived Assets and Finite Lived Intangibles | Long-Lived Assets and Finite Lived Intangibles The Company has finite lived intangible assets consisting of patents and trademarks. These assets are amortized on a straight-line basis over their estimated remaining economic lives. The patents and trademarks are amortized over 15 years. The Company reviews its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The events and circumstances the Company monitors and considers include significant decreases in the market price of similar assets, significant adverse changes to the extent and manner in which the asset is used, an adverse change in legal factors or business climate, an accumulation of costs that exceed the estimated cost to acquire or develop a similar asset, and continuing losses that exceed forecasted costs. The Company assesses the recoverability of these assets by comparing the carrying amount of such assets or asset group to the future undiscounted cash flow it expects the assets or asset group to generate. The Company recognizes an impairment loss if the sum of the expected long-term undiscounted cash flows that the long-lived asset is expected to generate is less than the carrying amount of the long-lived asset being evaluated. An impairment charge would then be recognized equal to the amount by which the carrying amount exceeds the fair value of the asset. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance as of and September 30, 2021 and December 31, 2020 (see Note 11. Income Taxes). There are no uncertain tax positions that would require recognition in the financial statements. If the Company were to incur an income tax liability in the future, interest on any income tax liability would be reported as interest expense and penalties on any income tax would be reported as income taxes. Management’s conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analysis of or changes in tax laws, regulations and interpretations thereof as well as other factors. |
Convertible Preferred Stock | Convertible Preferred Stock The Company has applied the guidance in Accounting Standards Codification (“ASC”) 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities |
Stock-based Compensation | Stock-based Compensation The Company recognizes the cost of share-based awards granted to employees and directors based on the estimated grant-date fair value of the awards. Cost is recognized on a straight-line basis over the service period, which is generally the vesting period of the award. The Company recognizes stock-based compensation cost and reverses previously recognized costs for unvested awards in the period forfeitures occur. The Company determines the fair value of stock options using the Black-Scholes option pricing model, which is impacted by the fair value of common stock, expected price volatility of common stock, expected term, risk-free interest rates, and expected dividend yield (see Note 9. Stock-based Compensation Expense ) |
Net Loss Per Share Attributable to Ordinary Shareholders | Net Loss Per Share Attributable to Ordinary Shareholders The Company computes loss per share attributable to ordinary shareholders by dividing net loss attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised into shares. In calculating diluted net loss per share, the numerator is adjusted for the change in the fair value of the shares (only if dilutive) and the denominator is increased to include the number of potentially dilutive common shares assumed to be outstanding (see Note 8. Net Loss per Share Attributable to Common Stockholders). |
Research and Development Expense | Research and Development Expense Research and development expense consist primarily of outsourced engineering services, internal engineering and development expenses, materials, labor and stock-based compensation related to development of the Company’s products and services. Research and development costs are expensed as incurred. |
Selling, General, and Administrative Expense | Selling, General, and Administrative Expense Selling, general, and administrative expense consist primarily of personnel costs, facilities expenses, depreciation and amortization, travel, and advertising costs. |
Commitments | Commitments The Company recognizes a liability with regard to loss contingencies when it believes it is probable a liability has occurred and the amount can be reasonably estimated. If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, the Company accrues that amount. When no amount within the range is a better estimate than any other amount the Company accrues the minimum amount in the range. There have been no such liabilities recorded by the Company as of September 30, 2021 and December 31, 2020. |
Segment Reporting | Segment Reporting The Company’s chief operating decision maker, its Chief Executive Officer, manages its operations and business as one operating segment for the purposes of allocating resources, makes operating decisions and evaluates financial performance. Minimal product revenue has been generated since inception and substantially all assets are held in the United States. |
Revenue Recognition | Revenue Recognition On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers |
Recent Accounting Standards | Recent Accounting Standards There were no significant updates to the recently issued accounting standards. Although there are several other new accounting standards issued or proposed by the FASB, the Company does not believe any of those accounting standards have had or will have a material impact on its financial position or operating results. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of cash and cash equivalents and restricted cash to amounts | September 30, 2021 2020 Cash and cash equivalents $ 1,650,684 $ 8,041,139 Restricted cash 50,000 400,000 Total Cash and cash equivalents and Restricted cash $ 1,700,684 $ 8,441,139 |
Schedule of property and equipment estimated useful life | Property and Equipment Useful life Machinery and equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of 3 years or lease term Automobile 5 years |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Schedule of property and equipment | Unaudited December 31, 2021 2020 Automobiles $325,406 $325,406 Furniture and fixtures 125,000 125,000 Computer and Equipment 35,169 26,157 Property and equipment, gross 485,575 476,563 Less: accumulated depreciation and amortization (415,378 ) (342,758 ) Total property and equipment, net $ 70,197 $ 133,805 |
Schedule of accrued expenses and other current liabilities | Unaudited December 31, 2021 2020 Credit card payable $ 45,466 $ 37,455 Accrued expenses 30,526 175,761 Accrued payroll 142,597 94,186 Total accrued expenses and other current liabilities $ 218,588 $ 307,402 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying amount and accumulated amortization of separately identifiable intangible assets | As of September 30, 2021 Gross Carrying Accumulated Net Carrying Patent $ 7,000 $ (3,967 ) $ 3,033 Trademark 45,000 (16,250 ) 28,750 Total intangible assets $ 52,000 $ (20,217 ) $ 31,783 As of December 31, 2020 Gross Carrying Accumulated Net Carrying Patent $ 7,000 $ (3,617 ) $ 3,383 Trademark 45,000 (14,000 ) 31,000 Total intangible assets $ 52,000 $ (17,617 ) $ 34,383 |
Schedule of estimated amortization expense for all intangible assets | Period ending December 31, Amortization Three month period ending December 2021 $ 866 Twelve-month period ending 2022 3,467 Twelve-month period ending 2023 3,467 Twelve-month period ending 2024 3,467 Thereafter 20,516 Total $ 31,783 Years Ended December 31, Amortization 2021 $ 3,467 2022 3,467 2023 3,467 2024 3,467 2025 3,467 Thereafter 17,048 Total $ 34,383 |
Capital Structure (Tables)
Capital Structure (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Partners' Capital Notes [Abstract] | |
Schedule of authorized, issued and outstanding shares of the convertible preferred stock and liquidation preferences | Series Shares Authorized Shares Issued and Outstanding Per Share Liquidation Preference Aggregate Liquidation Amount Gross Proceeds Series A 10,157,843 10,157,843 0.6842 6,949,996 6,949,996 Series B 6,567,670 6,567,670 3.3939 22,290,015 22,290,015 Series C 5,256,978 5,256,978 15.7933 83,025,031 83,025,031 21,982,491 21,982,491 112,265,042 112,265,042 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted loss per share | Nine months Ended 2021 2020 Net loss attributable to common stockholders $ (5,742,580 ) $ (6,076,084 ) Basic and diluted weighted average common shares outstanding 966,210 951,794 Loss per share: Basic and diluted $ (5.94 ) $ (6.38 ) Three months ended 2021 2020 Net loss attributable to common stockholders $ (2,099,185 ) $ (1,762,172 Basic and diluted weighted average common shares outstanding 966,210 951,794 Loss per share: Basic and diluted $ (2.17 ) $ (1.85 ) |
Schedule of calculation of diluted shares outstanding | Nine Months Ended Year ended 2021 2020 Unvested restricted shares 12,861,949 10,652,680 Common shares issuable upon conversion of preferred stock 21,982,491 21,982,491 Total 34,844,440 32,635,171 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-Based Payment Arrangement (Tables) [Abstract] | |
Schedule of stock option | Shares Weighted-average exercise price Weighted-average remaining contractual term (years) Aggregate intrinsic value Outstanding as of December 31, 2020 6,971,301 $ 0.20 7.0 $ 1,399,827 Vested and expected to vest at December 31, 2020 10,892,738 $ 0.54 7.0 $ 5,860,120 Vested and exercisable at December 31, 2020 5,978,428 $ 0.20 6.9 $ 398,584 Granted 2,692,000 Exercised (14,416 ) 0.23 Cancelled/forfeited (1,056,207 ) $ 0.21 Outstanding as of September 30, 2021 8,592,678 $ 1.04 6.0 $ 8,946,804 Vested and expected to vest at September 30, 2021 11,375,469 $ 0.53 7.0 $ 6,050,155 Vested and exercisable at September 30, 2021 5,505,018 $ 0.22 7.0 $ 1,189,368 |
Schedule of weighted average fair value of each grant estimated on grant date | September 30, December 31, Fair value of common stock $ 6.48 $ 0.23 Expected term (in years) 3.00 6.00 Risk-free rate 0.55 % 0.68 % Expected volatility 65.0 % 29.34 % Dividend yield 0 % 0 % |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 21, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Description of Business and Basis of Presentation (Details) [Line Items] | ||||||
Common stock, shares authorized (in Shares) | 42,000,000 | 42,000,000 | 42,000,000 | |||
Additional shares of common stock (in Shares) | 525,000 | |||||
Common stock, shares authorized (in Shares) | 110,000,000 | 110,000,000 | ||||
Common stock shares (in Shares) | 100,000,000 | 100,000,000 | ||||
Preferred stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 | ||||
Preferred stock shares (in Shares) | 10,000,000 | 10,000,000 | ||||
Preferred stock, per shares (in Dollars per share) | $ 0.00001 | $ 0.00001 | ||||
Net losses | $ (2.1) | $ (1.8) | $ (5.7) | $ (6.1) | ||
Accumulated deficit | (114.4) | $ (108.7) | (114.4) | (108.7) | ||
Net cash used in operating activities | 5.7 | $ 6 | ||||
Unrestricted cash and cash equivalents | $ 1.7 | $ 1.7 | $ 6.1 | |||
Purchase Warrants [Member] | ||||||
Description of Business and Basis of Presentation (Details) [Line Items] | ||||||
Redeemable warrants (in Shares) | 140,000 | |||||
Initial exercise price per share (in Dollars per share) | $ 9.375 | |||||
IPO [Member] | ||||||
Description of Business and Basis of Presentation (Details) [Line Items] | ||||||
Common stock, shares authorized (in Shares) | 3,500,000 | |||||
Offering price per share (in Dollars per share) | $ 7.5 | |||||
IPO [Member] | “CYN” [Member] | ||||||
Description of Business and Basis of Presentation (Details) [Line Items] | ||||||
Net proceeds | $ 23.3 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Unrestricted cash and cash equivalents | $ 1,700,000 | $ 6,100,000 |
Restricted cash | $ 50,000 | $ 400,000 |
Estimated useful lives | 15 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of reconciliation of cash and cash equivalents and restricted cash to amounts - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Schedule of reconciliation of cash and cash equivalents and restricted cash to amounts [Abstract] | ||
Cash and cash equivalents | $ 1,650,684 | $ 8,041,139 |
Restricted cash | 50,000 | 400,000 |
Total Cash and cash equivalents and Restricted cash | $ 1,700,684 | $ 8,441,139 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful life | 9 Months Ended |
Sep. 30, 2021 | |
Machinery and Equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful life [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful life [Line Items] | |
Property and Equipment, Useful Life | 7 years |
Leasehold Improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful life [Line Items] | |
Property and Equipment, Useful Life | Shorter of 3 years or lease term |
Automobiles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful life [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Apr. 30, 2020 | |
Balance Sheet Components [Abstract] | ||||||
Depreciation expense | $ 21,913 | $ 65,998 | $ 22,042 | $ 66,127 | ||
Deferred social security taxes | $ 135,916 | $ 892,115 |
Balance Sheet Components (Det_2
Balance Sheet Components (Details) - Schedule of property and equipment - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of property and equipment [Abstract] | ||
Automobiles | $ 325,406 | $ 325,406 |
Furniture and fixtures | 125,000 | 125,000 |
Computer and Equipment | 35,169 | 26,157 |
Property and equipment, gross | 485,575 | 476,563 |
Less: accumulated depreciation and amortization | (415,378) | (342,758) |
Total property and equipment, net | $ 70,197 | $ 133,805 |
Balance Sheet Components (Det_3
Balance Sheet Components (Details) - Schedule of accrued expenses and other current liabilities - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Credit card payable | $ 45,466 | $ 37,455 |
Accrued expenses | 30,526 | 175,761 |
Accrued payroll | 142,597 | 94,186 |
Total accrued expenses and other current liabilities | $ 218,588 | $ 307,402 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 28, 2022 | Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | ||||||
Lease agreement period | 1 year | |||||
Operating lease payments | $ 15,500 | |||||
Future minimum payments | $ 31,000 | $ 179,000 | ||||
Rent expense | $ 60,383 | $ 49,552 | $ 175 | $ 127,599 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 867 | $ 867 | $ 2,600 | $ 2,600 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of gross carrying amount and accumulated amortization of separately identifiable intangible assets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 52,000 | $ 52,000 |
Accumulated Amortization | (20,217) | (17,617) |
Net Carrying Amount | 31,783 | 34,383 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,000 | 7,000 |
Accumulated Amortization | (3,967) | (3,617) |
Net Carrying Amount | 3,033 | 3,383 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 45,000 | 45,000 |
Accumulated Amortization | (16,250) | (14,000) |
Net Carrying Amount | $ 28,750 | $ 31,000 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated amortization expense for all intangible assets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Intangible Assets, Net (Details) - Schedule of estimated amortization expense for all intangible assets [Line Items] | ||
Total | $ 31,783 | $ 34,383 |
2021 | 3,467 | |
2022 | 3,467 | |
2023 | 3,467 | |
2024 | 3,467 | |
2025 | 3,467 | |
Thereafter | 17,048 | |
Total | $ 34,383 | |
Amortization [Member] | ||
Intangible Assets, Net (Details) - Schedule of estimated amortization expense for all intangible assets [Line Items] | ||
Three month period ending December 2021 | 866 | |
Twelve-month period ending 2022 | 3,467 | |
Twelve-month period ending 2023 | 3,467 | |
Twelve-month period ending 2024 | 3,467 | |
Thereafter | 20,516 | |
Total | $ 31,783 |
Debt (Details)
Debt (Details) - USD ($) | Feb. 28, 2021 | Apr. 30, 2020 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | |||
Company borrowings | $ 695,078 | ||
Interest rate | 0.98% | ||
Maturity date | 5 years | 24 months | |
Principal amount | $ 892,115 | $ 135,916 | |
Interest accruing | 1.00% |
Capital Structure (Details)
Capital Structure (Details) - $ / shares | Sep. 30, 2021 | Jul. 31, 2021 | Dec. 31, 2020 |
Capital Structure (Details) [Line Items] | |||
Common stock, shares authorized (in Shares) | 42,000,000 | ||
Common stock, par value | $ 0.00001 | $ 2.88 | $ 0.00001 |
Common stock, shares issued (in Shares) | 966,210 | 951,794 | |
Common stock, shares outstanding (in Shares) | 966,210 | 951,794 | |
Convertible preferred stock, shares authorized (in Shares) | 21,982,491 | 21,982,491 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | |
Series A [Member] | |||
Capital Structure (Details) [Line Items] | |||
Dividends declared on common stock, per share | 0.0411 | ||
Original issuance price, per share | 0.6842 | ||
Series B [Member] | |||
Capital Structure (Details) [Line Items] | |||
Dividends declared on common stock, per share | 0.2036 | ||
Original issuance price, per share | 3.3939 | ||
Series C [Member] | |||
Capital Structure (Details) [Line Items] | |||
Dividends declared on common stock, per share | 0.9476 | ||
Original issuance price, per share | $ 15.7933 |
Capital Structure (Details) - S
Capital Structure (Details) - Schedule of authorized, issued and outstanding shares of the convertible preferred stock and liquidation preferences | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Conversion of Stock [Line Items] | |
Series A Shares Authorized | shares | 21,982,491 |
Series A Shares Issued and Outstanding | shares | 21,982,491 |
Series A Per Share Liquidation Preference | $ / shares | $ 0.00001 |
Series A Aggregate Liquidation Amount | $ | $ 112,265,042 |
Series A Gross Proceeds | $ | $ 112,265,042 |
Series A [Member] | |
Conversion of Stock [Line Items] | |
Series A Shares Authorized | shares | 10,157,843 |
Series A Shares Issued and Outstanding | shares | 10,157,843 |
Series A Per Share Liquidation Preference | $ / shares | $ 0.6842 |
Series A Aggregate Liquidation Amount | $ | $ 6,949,996 |
Series A Gross Proceeds | $ | $ 6,949,996 |
Series B [Member] | |
Conversion of Stock [Line Items] | |
Series A Shares Authorized | shares | 6,567,670 |
Series A Shares Issued and Outstanding | shares | 6,567,670 |
Series A Per Share Liquidation Preference | $ / shares | $ 3.3939 |
Series A Aggregate Liquidation Amount | $ | $ 22,290,015 |
Series A Gross Proceeds | $ | $ 22,290,015 |
Series C [Member] | |
Conversion of Stock [Line Items] | |
Series A Shares Authorized | shares | 5,256,978 |
Series A Shares Issued and Outstanding | shares | 5,256,978 |
Series A Per Share Liquidation Preference | $ / shares | $ 15.7933 |
Series A Aggregate Liquidation Amount | $ | $ 83,025,031 |
Series A Gross Proceeds | $ | $ 83,025,031 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders (Details) - Schedule of basic and diluted loss per share - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of basic and diluted loss per share [Abstract] | ||||
Net loss attributable to common stockholders | $ (2,099,185) | $ 1,762,172 | $ (5,742,580) | $ (6,076,084) |
Basic and diluted weighted average common shares outstanding | 966,210 | 951,794 | 966,210 | 951,794 |
Loss per share: | ||||
Basic and diluted | $ (2.17) | $ (1.85) | $ (5.94) | $ (6.38) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders (Details) - Schedule of calculation of diluted shares outstanding - shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of calculation of diluted shares outstanding [Abstract] | ||
Unvested restricted shares | 12,861,949 | 10,652,680 |
Common shares issuable upon conversion of preferred stock | 21,982,491 | 21,982,491 |
Total | 34,844,440 | 32,635,171 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Jul. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |||||||
Common stock issurance (in Shares) | 8,206,191 | 9,821,567 | |||||
Purchase of grant options (in Shares) | 2,692,000 | ||||||
Common stock, Par share (in Dollars per share) | $ 2.88 | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Fair value of options granted | $ 0.07 | $ 0.07 | |||||
Stock-based compensation expense of stock options | $ 70,400 | $ 46,590 | $ 166,458 | $ 130,521 | |||
Stock options expected vest | $ 65,247 | ||||||
weighted-average period | 1 year 9 months 18 days |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense (Details) - Schedule of stock option | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Schedule of stock option [Abstract] | |
Number of shares, outstanding at beginning balance | 6,971,301 |
Weighted-average exercise price, outstanding at beginning balance (in Dollars per share) | $ / shares | $ 0.2 |
Weighted-average remaining contractual, outstanding at beginning balance | 7 years |
Aggregate intrinsic value, outstanding at beginning balance (in Dollars) | $ | $ 1,399,827 |
Number of shares, vested and expected to vest at beginning balance | 10,892,738 |
Weighted-average exercise price, vested and expected to vest at beginning balance (in Dollars per share) | $ / shares | $ 0.54 |
Weighted-average remaining contractual, vested and expected to vest at beginning balance | 7 years |
Aggregate intrinsic value, vested and expected to vest at beginning balance (in Dollars) | $ | $ 5,860,120 |
Number of shares, vested and exercisable at beginning balance | 5,978,428 |
Weighted-average exercise price, Vested and exercisable at beginning balance (in Dollars per share) | $ / shares | $ 0.2 |
Weighted-average remaining contractual, vested and exercisable at beginning balance | 6 years 10 months 24 days |
Aggregate intrinsic value, vested and exercisable at beginning balance (in Dollars) | $ | $ 398,584 |
Number of shares, granted | 2,692,000 |
Number of shares, exercised | (14,416) |
Weighted-average exercise price, exercised (in Dollars per share) | $ / shares | $ 0.23 |
Number of shares, cancelled/forfeited | (1,056,207) |
Weighted-average exercise price, cancelled/forfeited (in Dollars per share) | $ / shares | $ 0.21 |
Number of shares, outstanding at ending balance | 8,592,678 |
Weighted-average exercise price, outstanding at ending balance (in Dollars per share) | $ / shares | $ 1.04 |
Weighted-average remaining contractual, outstanding at ending balance | 6 years |
Aggregate intrinsic value, outstanding at ending balance (in Dollars) | $ | $ 8,946,804 |
Number of shares,vested and expected to vest at ending balance | 11,375,469 |
Weighted-average exercise price, vested and expected to vest at ending balance (in Dollars per share) | $ / shares | $ 0.53 |
Weighted-average remaining contractual, vested and expected to vest at ending balance | 7 years |
Aggregate intrinsic value, vested and expected to vest at ending balance (in Dollars) | $ | $ 6,050,155 |
Number of shares, vested and exercisable at ending balance | 5,505,018 |
Weighted-average exercise price, Vested and exercisable at ending balance (in Dollars per share) | $ / shares | $ 0.22 |
Weighted-average remaining contractual, vested and exercisable at ending balance | 7 years |
Aggregate intrinsic value, vested and exercisable at ending balance (in Dollars) | $ | $ 1,189,368 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense (Details) - Schedule of weighted average fair value of each grant estimated on grant date - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of weighted average fair value of each grant estimated on grant date [Abstract] | ||
Fair value of common stock (in Dollars) | $ 6.48 | $ 0.23 |
Expected term (in years) | 3 years | 6 years |
Risk-free rate | 0.55% | 0.68% |
Expected volatility | 65.00% | 29.34% |
Dividend yield | 0.00% | 0.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 27, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes (Details) [Line Items] | |||||
Income tax expense (in Dollars) | $ 0 | $ 0 | $ 0 | $ 0 | |
Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% | |
Minimum [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Tax deduction percentage | 80.00% | ||||
Maximum [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Tax deduction percentage | 100.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Subsequent Events (Details) [Line Items] | ||||
Forgiveness by our lender (in Dollars) | $ 892,115 | $ 695,078 | ||
Issuance of shares | 3,500,000 | |||
Offering price per share (in Dollars per share) | $ 7.5 | |||
Preferred shares issued | 21,982,491 | 21,982,491 | ||
IPO [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Net proceeds (in Dollars) | $ 23,300,000 | |||
Additional shares | 525,000 | |||
Shares authorized | 110,000,000 | |||
Issuance of common stock | 100,000,000 | |||
Common stock par value (in Dollars per share) | $ 0.00001 | |||
Preferred shares issued | 10,000,000 | |||
Preferred stock par value (in Dollars per share) | $ 0.00001 |