<SEC-DOCUMENT>0001213900-14-005415.txt : 20140806
<SEC-HEADER>0001213900-14-005415.hdr.sgml : 20140806
<ACCEPTANCE-DATETIME>20140806081022
ACCESSION NUMBER:		0001213900-14-005415
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20140806
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140806
DATE AS OF CHANGE:		20140806

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Neonode, Inc
		CENTRAL INDEX KEY:			0000087050
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPONENTS, NEC [3679]
		IRS NUMBER:				941517641
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35526
		FILM NUMBER:		141018130

	BUSINESS ADDRESS:	
		STREET 1:		2350 MISSION COLLEGE BLVD
		STREET 2:		SUITE 190
		CITY:			SANTA CLARA
		STATE:			CA
		ZIP:			95054
		BUSINESS PHONE:		408 496-6722

	MAIL ADDRESS:	
		STREET 1:		2350 MISSION COLLEGE BLVD
		STREET 2:		SUITE 190
		CITY:			SANTA CLARA
		STATE:			CA
		ZIP:			95054

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SBE INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k080614_neonode.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>UNITED
STATES </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECURITIES
AND EXCHANGE COMMISSION </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Washington,
D.C. 20549 </B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FORM
8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CURRENT
REPORT </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Pursuant
to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Date
of Report (Date of earliest event reported): August 6, 2014</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NEONODE
INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Exact
name of issuer of securities held pursuant to the plan) </B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Commission
File Number 1-35526</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; width: 49%; font: 10pt Times New Roman, Times, Serif; text-align: center; direction: rtl; unicode-bidi: embed; border-bottom: Black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Delaware</B></FONT></td>
    <TD STYLE="vertical-align: bottom; width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; width: 49%; font: 10pt Times New Roman, Times, Serif; text-align: center; direction: rtl; unicode-bidi: embed; border-bottom: Black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>94-1517641</B></FONT></td></tr>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(State
                                         or other jurisdiction</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>of
        incorporation)</B></FONT></P></td>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(I.R.S.
                                         Employer</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Identification
        No.)</B></FONT></P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>2350
Mission College Blvd, Suite 190, Santa Clara, CA. 95054</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Address
of Principal Executive Office, including Zip Code)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Registrant&rsquo;s
telephone number, including area code: </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;(408)
496-6722</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Not
Applicable</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Former
name or former address, if changed since last report) </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 15%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744; &nbsp;&nbsp;Written communications pursuant
to Rule&nbsp;425 under the Securities Act (17 CFR 230.425) </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744; &nbsp;&nbsp;Soliciting material pursuant to
Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12) </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>TABLE
OF CONTENTS&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed; width: 10%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item&nbsp;2.02</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; width: 81%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Results
of Operations and Financial<B> </B>Condition.</FONT></P></td>
    <TD STYLE="width: 9%; text-align: center">3</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"></td>
    <TD STYLE="text-align: center">&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Item
    9.01&#9;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Financial
Statements and Exhibits</FONT></P></td>
    <TD STYLE="text-align: center">3</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD COLSPAN="2" STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Signatures&nbsp;</FONT></P>

</td>
    <TD STYLE="text-align: center">4</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD COLSPAN="2" STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exhibit
Index&nbsp;</FONT></P>

</td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD>&nbsp;</TD></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Ex-99.1&#9;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Press
Release of the Company dated August 6, 2014</FONT></P></td>
    <TD STYLE="text-align: center"></TD></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TD STYLE="width: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 1in; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif"></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item&nbsp;2.02.&#9;Results
of Operations and Financial Condition.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
August 6, 2014, Neonode Inc. (the &ldquo;Company&rdquo;) reported its earnings for the three and six months ended June&nbsp;30,
2014. A copy of the Company&rsquo;s press release containing this information is furnished as Exhibit&nbsp;99.1 to this report
on Form 8-K and is incorporated herein by reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
information furnished pursuant to this Item&nbsp;2.02, including Exhibit&nbsp;99.1, shall not be deemed &ldquo;filed&rdquo; for
purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), or otherwise
subject to the liabilities under that Section, or incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item&nbsp;9.01.
&#9;Financial Statements and Exhibits.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Exhibits</B></FONT></P>

<P STYLE="font: 10pt/15pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
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    No.</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 1.5pt"></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; width: 88%; text-align: left; vertical-align: bottom; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt/15pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Description</FONT></P></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt/15pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exhibit
99.1&#9;</FONT></P></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify"><P STYLE="font: 10pt/15pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Press
Release of the Company dated August 6, 2014 containing financial information for the three and six months ended June 30, 2014.</FONT></P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SIGNATURES
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 27pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&#9;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
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    <TD COLSPAN="2" STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">NEONODE
INC. <BR>
&nbsp;</FONT></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left;  width: 60%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 6%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 34%; border-bottom: Black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/ David Brunton</FONT></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name:</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">David
Brunton</FONT></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title:&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; direction: rtl; unicode-bidi: embed"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief
    Financial Officer</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date:
August 6, 2014<B> </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">4</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<TYPE>EX-99.1
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<DESCRIPTION>PRESS RELEASE
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B><IMG SRC="img1.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Neonode<SUP>&reg;</SUP> Reports Results
for Quarter Ended June 30, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>SANTA
CLARA, CA. </B></FONT><FONT STYLE="color: black">&ndash; <B>August 6,<FONT STYLE="font-family: Times New Roman, Times, Serif">
2014 </FONT></B>&ndash; Neonode Inc. (NASDAQ: NEON),</FONT> the optical touch technology company, today reported financial results
for the three months ended June 30, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Highlights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Neonode zForce technology has been selected by a major global PC OEM for 2015 product lines.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Hewlett Packard (&ldquo;HP&rdquo;) printers with zForce touch started generating revenue in the
second quarter.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Neonode recently signed a license with top-tier automotive system OEM, Magneti Marrelli.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Neonode currently has 45 patents issued and 105 pending, up from 37 and 93 last quarter.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Neonode Appoints Per Lofgren as new independent Director and Chairman of the Audit Committee effective,
August 5, 2014 and Lars Lindqvist as new Chief Financial Officer effective August 15, 2014. CFO David Brunton will retire on August
15, 2014 and transition into a consulting role for Neonode.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&quot;The ramp of our printer business is progressing
and related revenues should continue to ramp as new printers incorporating our technology keep getting introduced. We are engaged
with two additional tier one printer OEMs and we believe we will expand our market share of the ~100 million unit printer market&rdquo;
said Neonode CEO Thomas Eriksson.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&ldquo;We are
executing on our strategy to penetrate the ~300 million unit PC market and I am happy to announce that we have been selected as
a touch technology partner by a major PC OEM. It has become increasingly apparent that</FONT> <FONT STYLE="font-size: 10pt">zForce
PLUS&rsquo; strongest value proposition for the PC segment is our high performance features and that we can provide touch solutions
at a significantly lower cost than our competitors&rdquo; said Thomas Eriksson.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;Finally, I would like to welcome Lars
Lindqvist to the CFO helm, along with Per Lofgren to the Board of Directors&quot; concluded Mr. Eriksson.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Financial Results for the three and six months ended June 30,
2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Net revenues for the three and six months ended
June 30, 2014 were $0.9 million and $1.9 million, respectively, compared to net revenues for the three and six months ended June
30, 2013 of $1.1 million and $1.6 million, respectively. Our net revenues for the three and six months ended June 30, 2014 included
$0.4 million and $1.3 million from license fees plus $0.5 million and $0.6 million, respectively, of fees for engineering design
services. Our net revenues for the three and six months ended June 30, 2013 included $0.6 million and $1.2 million from license
fees plus $0.5 million and $0.4 million, respectively, of fees for engineering design services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gross margin was $0.4 million and $1.3 million
for the three and six months ended June 30, 2014, respectively, compared to $0.4 million and $1.0 million for the same periods
in 2013, respectively. Our total operating expenses were $4.3 million and $9.1 million for the three and six months ended June
30, 2014, respectively, compared to $3.5 million and $7.6 million for the same periods in 2013, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recorded a net loss of $3.9 million and
$7.9 million for the three and six months ended June 30, 2014, respectively, compared to a net loss of $3.1 million and $6.7 million,
respectively, in the comparable periods in 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Our net cash used
by operating activities was $6.0 million for the six months ended June 30, 2014 compared to $4.1 million for the six months ended
June 30, 2013.</FONT> During the three months ended June 30, 2014, we issued 2,500,000 shares of our common stock to an accredited
institutional investor at a price of $4.00 per share and a warrant for an aggregate purchase price of $10,000,000 in gross proceeds
and net proceeds of approximately $9.3 million after expenses and fees, including a placement agent fee.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash totaled $12.0 million at June 30, 2014
compared to $8.8 million at December 31, 2013. Common shares on a fully diluted basis totaled 45.8 million on June 30, 2014, compared
to 40.4 million at December 31, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><U>Conference Call Information</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will host a conference call Wednesday
August 6, 2014 at 10AM Eastern Standard Time (EST) featuring remarks by, and Q&amp;A with, Neonode's CEO Thomas Eriksson, CFO David
Brunton, and Daniel Gelbtuch (SVP of Corporate Finance &amp; IR).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The dial-in number for the conference call
is toll-free: (877) 539-0733 (U.S. domestic) or +1 (678) 607-2005 (international). To access the call all participants must use
the following Conference ID: # 81344901. Please make sure to call at least five minutes before the scheduled start time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To register for the call, and listen online,
please visit http://goo.gl/9tJ00n</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For interested individuals unable to join the
live event, a digital recording for replay will be available for 30 days after the call's completion - 8/6/2014 (1PM EST) to 9/6/2014.
To access the recording, please use one of these Dial-In Numbers (800) 585-8367 or (404) 537-3406, and the Conference ID # 81344901.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>About Neonode</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Neonode Inc. (NASDAQ:NEON) develops and licenses
the next generation of Multisensing touch technologies, allowing companies to differentiate themselves by making high performing
touch solutions at a competitive cost. Neonode is at the forefront of providing unparalleled user experiences that offer significant
advantages for OEM's. This includes state-of-the-art touch technology features such as low latency pen or brush sensing, remarkably
high speed scanning, proximity-, pressure-, and depth sensing capabilities and object-size measuring.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Neonode&rsquo;s patented Multisensing technology
is developed for a wide range of devices such as mobile phones, tablets and e-readers, toys and gaming consoles, printers, white
goods, wearable goods and advanced automotive infotainment systems. Neonode, the Neonode logo, Multisensing, and zForce are trademarks
of Neonode Inc. registered in the United States and other countries. Liquid Sensing, It Makes Sense and AlwaysON are trademarks
of Neonode Inc. For more information please visit <U>www.neonode.com</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Safe Harbor Statement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements
relating to expectations, future performance or future events, and product cost, performance, and functionality matters. These
statements are based on current assumptions, expectations and information available to Neonode management and involve a number
of known and unknown risks, uncertainties and other factors that may cause Neonode&rsquo;s actual results, levels of activity,
performance or achievements to be materially different from any expressed or implied by these forward-looking statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These risks, uncertainties, and factors are
discussed under &ldquo;Risk Factors&rdquo; and elsewhere in Neonode&rsquo;s public filings with the U.S. Securities and Exchange
Commission from time to time, including Neonode&rsquo;s annual report on Form 10-K, quarterly reports on Form 10-Q, and current
reports on Form 8-K. You are advised to carefully consider these various risks, uncertainties and other factors. Although Neonode
management believes that the forward-looking statements contained in this press release are reasonable, it can give no assurance
that its expectations will be fulfilled. Forward-looking statements are made as of today&rsquo;s date, and Neonode undertakes no
duty to update or revise them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Copyright &copy; 2014, Neonode Inc. All rights
reserved. Neonode is a registered trademark of Neonode Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>For more information, please contact:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Investor Relations: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Daniel Gelbtuch</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">P: +1 917.509.9582</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Email: daniel.gelbtuch@neonode.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NEONODE INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(In thousands, except share and per share amounts)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">June 30,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2014</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2013</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(Unaudited)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">(Audited)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Current assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-left: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,048</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">8,815</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">709</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">969</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Projects in process</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">778</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">736</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt; padding-bottom: 1.5pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">573</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">616</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,108</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,136</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Deposits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Property and equipment, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">859</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">335</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt; padding-bottom: 2.5pt">Total assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">14,984</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">11,471</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">509</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">479</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,242</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">978</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Deferred revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,468</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,666</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt; padding-bottom: 1.5pt">Current portion of capital lease obligations</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">71</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,290</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,123</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Capital lease obligations, net of current portion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">459</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">5,749</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">5,123</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Stockholders&rsquo; equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt; text-indent: -10">Series B Preferred stock, 54,425 shares authorized with par value $0.001 per share; 83 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively. (In the event of dissolution, each share of Series B Preferred stock has a liquidation preference equal to par value of $0.001 over the shares of common stock)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt; text-indent: -10">Common stock, 70,000,000 shares authorized with par value $0.001 per share; 40,455,352 and 37,933,799 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">168,696</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">157,994</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Accumulated other comprehensive income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">(159,577</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">(151,695</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt; padding-bottom: 1.5pt">Total stockholders' equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">9,235</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">6,348</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt; padding-bottom: 2.5pt">Total liabilities and stockholders&rsquo; equity</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">14,984</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">11,471</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NEONODE INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(In thousands, except per share amounts)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0">Three months ended <BR>June 30,</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0">Six months ended <BR>June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0">2014</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0">2013</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0">2014</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0">2013</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; color: black; text-align: left; padding: 0; text-indent: 0">Net revenues</TD><TD STYLE="width: 1%; color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">$</TD><TD STYLE="width: 9%; color: black; text-align: right; padding: 0; text-indent: 0">865</TD><TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">$</TD><TD STYLE="width: 9%; color: black; text-align: right; padding: 0; text-indent: 0">1,084</TD><TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">$</TD><TD STYLE="width: 9%; color: black; text-align: right; padding: 0; text-indent: 0">1,879</TD><TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">$</TD><TD STYLE="width: 9%; color: black; text-align: right; padding: 0; text-indent: 0">1,632</TD><TD STYLE="width: 1%; color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; padding: 0; text-indent: 0">Cost of revenues</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">452</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">662</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">618</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">678</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">Gross margin</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">413</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">422</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">1,261</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">954</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; font-style: italic; text-align: left; padding: 0; text-indent: 0">Operating expenses:</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">Product research and development</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">1,742</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">1,441</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">3,526</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">3,075</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">Sales and marketing</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">756</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">893</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">1,798</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">1,698</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">General and administrative</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">1,789</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">1,189</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">3,818</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">2,841</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding: 0 0 0 10pt; text-indent: 0">Total operating expenses</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">4,287</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">3,523</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">9,142</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">7,614</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">Loss before provision for income taxes</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">(3,874</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">(3,101</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">(7,881</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">(6,660</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">Provision for income taxes</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">-</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">19</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">1</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; color: black; text-align: right; text-indent: 0">30</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left; padding: 0 0 2.5pt; text-indent: 0">Net loss</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(3,874</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(3,120</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(7,882</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(6,690</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; font-style: italic; padding: 0; text-indent: 0">Loss per common share:</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left; padding: 0 0 2.5pt; text-indent: 0">Basic and diluted loss per share</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(0.10</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(0.09</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(0.20</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD><TD STYLE="color: black; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding-top: 0; padding-right: 0; padding-left: 0; color: black; text-align: right; text-indent: 0">(0.20</TD><TD STYLE="padding: 0 0 2.5pt; color: black; text-align: left; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding: 0 0 0 10; text-indent: -10">Basic and diluted &ndash; weighted average number of common shares outstanding</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: right; text-indent: 0">39,233</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: right; text-indent: 0">34,135</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: right; text-indent: 0">38,587</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="color: black; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; color: black; text-align: right; text-indent: 0">33,825</TD><TD STYLE="padding: 0; color: black; text-align: left; text-indent: 0">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 7.7pt; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<!-- Field: Page; Sequence: 4; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NEONODE INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(In thousands)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Three months ended <BR>June 30,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Six months ended <BR>June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid">2014</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid">2013</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid">2014</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1.5pt solid">2013</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="color: black">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; color: black; text-align: left">Net loss</TD><TD STYLE="width: 1%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">(3,874</TD><TD STYLE="width: 1%; color: black; text-align: left">)</TD><TD STYLE="width: 1%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">(3,120</TD><TD STYLE="width: 1%; color: black; text-align: left">)</TD><TD STYLE="width: 1%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">(7,882</TD><TD STYLE="width: 1%; color: black; text-align: left">)</TD><TD STYLE="width: 1%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 9%; color: black; text-align: right">(6,690</TD><TD STYLE="width: 1%; color: black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left">Other comprehensive income:</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">&nbsp;</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left; padding-bottom: 1.5pt">Foreign currency translation adjustments</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">30</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">41</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">65</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">54</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="color: black; text-align: left; padding-bottom: 1.5pt">Total comprehensive loss</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">(3,844</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">)</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">(3,079</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">)</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">(7,817</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">)</TD><TD STYLE="color: black; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; color: black; text-align: right">(6,636</TD><TD STYLE="padding-bottom: 1.5pt; color: black; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 5; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NEONODE INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(In thousands)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; padding: 0; text-indent: 0">Six months ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">2014</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">2013</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; text-indent: 0">Cash flows from operating activities:</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding: 0; text-indent: 0">Net loss</TD><TD STYLE="width: 1%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding: 0; text-indent: 0">$</TD><TD STYLE="width: 9%; text-align: right; padding: 0; text-indent: 0">(7,882</TD><TD STYLE="width: 1%; text-align: left; padding: 0; text-indent: 0">)</TD><TD STYLE="width: 1%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; padding: 0; text-indent: 0">$</TD><TD STYLE="width: 9%; text-align: right; padding: 0; text-indent: 0">(6,690</TD><TD STYLE="width: 1%; text-align: left; padding: 0; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10pt; text-indent: 0">Stock-based compensation expense</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">1,415</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">1,339</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10pt; text-indent: 0">Depreciation and amortization</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">83</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">64</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10pt; text-indent: 0">Loss on disposal of property and equipment</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">-</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">1</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10pt; text-indent: 0">Changes in operating assets and liabilities:</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: 0">Accounts receivable</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">236</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">1,431</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: 0">Projects in process</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">(44</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">)</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">(624</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: 0">Prepaid expenses and other assets</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">(61</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">)</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">259</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: 0">Accounts payable and accrued expenses</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">429</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">20</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1.5pt 20pt; text-indent: 0">Deferred revenue</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">(186</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">)</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">88</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1.5pt 10pt; text-indent: 0">Net cash used in operating activities</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">(6,010</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">)</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">(4,112</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">Cash flows from investing activities:</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1.5pt 10pt; text-indent: 0">Purchase of property and equipment</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">(86</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">)</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">(34</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1.5pt 10pt; text-indent: 0">Net cash used in investing activities</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">(86</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">)</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">(34</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">Cash flows from financing activities:</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10pt; text-indent: 0">Proceeds from sales of common stock, net of offering costs</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">9,254</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&mdash;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10pt; text-indent: 0">Proceeds from exercise of stock options</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&mdash;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">166</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1.5pt 10pt; text-indent: 0">Proceeds from exercise of stock warrants</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">36</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">200</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1.5pt 10pt; text-indent: 0">Net cash provided by financing activities</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">9,290</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">366</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">Effect of exchange rate changes on cash</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">39</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">37</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">Net increase (decrease) in cash</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">3,233</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">(3,743</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 1.5pt; text-indent: 0">Cash at beginning of period</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">8,815</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0">9,097</TD><TD STYLE="text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 2.5pt; text-indent: 0">Cash at end of period</TD><TD STYLE="padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">$</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">12,048</TD><TD STYLE="text-align: left; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">$</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">5,354</TD><TD STYLE="text-align: left; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding: 0; text-indent: 0">Supplemental disclosure of cash flow information:</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 2.5pt 10pt; text-indent: 0">Cash paid for income taxes</TD><TD STYLE="padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">$</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">1</TD><TD STYLE="text-align: left; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">$</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">30</TD><TD STYLE="text-align: left; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding: 0; text-indent: 0">Supplemental disclosure on non-cash investing and financing activities:</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 2.5pt 10pt; text-indent: 0">Purchase of equipment with capital lease obligation</TD><TD STYLE="padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">$</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">530</TD><TD STYLE="text-align: left; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">$</TD><TD STYLE="text-align: right; padding-top: 0; padding-right: 0; border-bottom: Black 2.5pt double; padding-left: 0; text-indent: 0">-</TD><TD STYLE="text-align: left; padding: 0 0 2.5pt; text-indent: 0">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">6</P>

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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
