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Interim Period Reporting
3 Months Ended
Mar. 31, 2012
Interim Period Reporting [Abstract]  
Interim Period Reporting [Text Block]
 
1. Interim Period Reporting
 
The unaudited interim condensed consolidated financial statements, include all adjustments, consisting of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim periods. The results of operations for the three months ended March 31, 2012 are not necessarily indicative of expected results for the full 2012 fiscal year.
 
The accompanying condensed consolidated financial statements as of March 31, 2012 and for the three months ended March 31, 2012 and 2011 have been prepared by us, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally contained in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted.  These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2011.
 
Operations
 
Neonode Inc., “we”, “us”, “our”, the “Company”, develops and licenses the next generation of MultiSensingTM user interfaces and optical multi-touch solutions for some of the world’s largest consumer brands. The cornerstone of our offer to customers is our patented  zForce® MultiSensing touch technology which provides a far more augmented and profound user experience than traditional touch. zForce MultiSensing is suited for small to midsized consumer and industrial electronic devices and supports unlimited gestures, multi-touch and sweep navigation.  zForce MultiSensing applies on any surface and integrates with all types of devices. zForce MultiSensing uses infrared light with zero latency that responds with any object - like a pen, finger, brush or gloved finger (with sizes down to 1 mm), at a very high scanning speed of 1000 Hz.
 
Neonode licenses zForce MultiSensing to Original Equipment Manufacturers (“OEMs”) and Original Design Manufacturers (“ODMs”) who embed our technology into electronic devices that they develop and sell and is currently being integrated into products such as mobile phones, e-Readers, household appliances, printers and office equipment, GPS devices, automobile consoles, games and toys,  and tablet devices.
 
Our technology licensing model allows us to focus on the development of solutions for multi-touch enabled screens, and thus we do not have to contend with the financial and logistical burden of manufacturing products, which is handled by our ODM/OEM clients. We license the right to use zForce and software which, together with standard components from partners, create a complete optical touch solution. Our licensing model provides the added benefit of allowing us to grow revenues without the need of increasing costs at anywhere near the same rate to support the revenue growth.
 
Liquidity
 
Our operations are subject to certain risks and uncertainties frequently encountered by companies in the early stages of operations. Such risks and uncertainties include, but are not limited to, technical and quality problems in new products, ability to raise additional funds, credit risks and costs for developing new products. Our ability to generate revenues in the future will depend substantially on our ability to enter into contracts with customers and to raise additional funds through debt or equity financings. During 2011, we raised approximately $15.5 million through debt and equity offerings (see Notes 3 and 4).  We believe we have sufficient cash to operate through the first quarter of 2013, and thereafter expect to receive sufficient cash from customer license agreements currently in place to operate for at least the next twelve months.