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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2017
Stockholders' Equity [Abstract] |
Stockholders' Equity |
8. | Stockholders’ Equity
Common Stock On October 6, 2017, the Company amended its certificate of incorporation to increase its authorized shares of common stock to 100,000,000. Securities Purchase Agreements On August 2, 2017, we entered into a Securities Purchase Agreement with accredited investors as part of a private placement pursuant to which we issued a total of 9,750,000 shares of common stock at $1.00 per share, and warrants, for an aggregate purchase price of $9.75 million in gross proceeds (see Note 1 for additional details). In August 2016, Neonode entered into the Securities Purchase Agreement with institutional and accredited investors as part of a private placement pursuant to which Neonode agreed to issue a total of 8,627,352 shares of Neonode common stock, as described below, and warrants for an aggregate purchase price of $7.9 million in net proceeds. The total number of shares includes (i) an aggregate of 427,352 Employee Investor Shares at $1.17 per share for gross proceeds of approximately $500,000, (ii) an aggregate of 4,600,000 Outside Investor Shares at a price of $1.00 per share for gross proceeds of $4,600,000, and (iii) up to 3,600,000 Pre-Funded Warrant Shares issuable upon exercise of the Pre-Funded Warrants for which Neonode received $3,564,000 pre-funded in gross proceeds. The Pre-Funded Warrants were issued to certain outside investors whose purchase of shares of Neonode common stock would make them the beneficial owners of more than 9.99% of the outstanding common stock of Neonode. Each of the Pre-Funded Warrants were pre-funded upon closing of the private placement at $0.99 per Pre-Funded Warrant Share and have an exercise price of $0.01 per Pre-Funded Warrant Share. The Pre-Funded Warrants are immediately exercisable upon issuance and will not expire prior to exercise. Warrants and Other Common Stock Activity Under the terms of the 2017 Securities Purchase Agreement, we issued warrants (the “2017 Warrants”) to investors in the private placement to purchase up to a total of 3,250,000 shares of common stock at an exercise price of $2.00 per share. The 2017 Warrants will become exercisable on August 8, 2018, and will expire on August 8, 2020. If the 2017 Warrants are fully exercised, we will receive approximately $6.5 million in proceeds. In addition to the Pre-Funded Warrants described above, under the terms of the 2016 Securities Purchase Agreement, Neonode issued the Purchase Warrants to all investors in the private placement to purchase up to a total of 4,313,676 shares of Neonode common stock at an exercise price of $1.12 per share. The Purchase Warrants will expire five and one-half years from issuance. The terms of the Purchase Warrants require that exercise may only be for cash and not on a cashless basis unless, after a period of six months from closing of the private placement. During the year ended December 31, 2017, there were no warrants exercised. During the year ended December 31, 2016, a warrant holder exercised warrants to purchase 80,000 shares of common stock using the cashless exercise provisions allowed in the warrant and received 11,565 shares of our common stock. On October 13, 2015, we issued 3,200,000 shares of our common stock from our shelf registration statement to investors in connection with an equity financing transaction. We sold the stock at $1.90 per share and raised approximately $6.1 million gross and received approximately $5.4 million in cash, net of direct offering costs including underwriting discounts and legal, audit and other regulatory costs of approximately $0.7 million. A summary of all warrant activity is set forth below:
Outstanding and exercisable |  | Warrants |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life |
January 1, 2015 |  |  | 3,335,073 |  |  | $ | 4.45 |  |  |  | 0.93 |
Issued |  |  | - |  |  |  | - |  |  |  | - |
Expired/forfeited |  |  | (2,591,000 | ) |  |  | 5.06 |  |  |  | - |
Exercised |  |  | (280,000 | ) |  |  | 1.30 |  |  |  | - |
December 31, 2015 |  |  | 464,073 |  |  | $ | 3.02 |  |  |  | 0.19 |
Issued |  |  | 3,600,000 |  |  |  | 0.01 |  |  |  | - |
Issued (Prefunded) |  |  | 4,313,676 |  |  |  | 1.12 |  |  |  | - |
Expired/forfeited |  |  | (384,073 | ) |  |  | 3.13 |  |  |  | - |
Exercised |  |  | (80,000 | ) |  |  | 2.00 |  |  |  | - |
December 31, 2016 |  |  | 7,913,676 |  |  | $ | 0.62 |  |  |  | 5.13 |
Issued (Purchase) |  |  | 3,250,001 |  |  |  | 2.00 |  |  |  | - |
Expired/forfeited |  |  | - |  |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |  |  |  | - |
Outstanding, December 31, 2017 |  |  | 11,163,677 |  |  | $ | 1.02 |  |  |  | 3.68 |
Outstanding and exercisable, December 31, 2017 |  |  | 7,913,676 |  |  | $ | 0.62 |  |  |  | 4.13 |
Outstanding Warrants to Purchase Common Stock as of December 31, 2017:
Description |  | Issue Date |  | Exercise Price |  |  | Shares |  |  | Expiration Date
August 2016 Prefunded Warrants |  | 08/16/16 |  | $ | 1.00 |  |  |  | 3,600,000 |  |  | 02/16/22
August 2016 Purchase Warrants |  | 08/17/16 |  | $ | 1.12 |  |  |  | 4,313,676 |  |  | 02/17/22
August 2017 Purchase Warrants |  | 08/08/17 |  | $ | 2.00 |  |  |  | 3,250,001 |  |  | 08/08/20
Total Warrants Outstanding |  |  |  |  |  |  |  |  | 11,163,677 |  |  |
Preferred Stock The terms of our Series B Preferred stock are as follows: Dividends and Distributions The holders of shares of Series B Preferred stock are entitled to participate with the holders of our common stock with respect to any dividends declared on the common stock in proportion to the number of shares of common stock issuable upon conversion of the shares of Series B Preferred stock held by them. Liquidation Preference In the event of any liquidation, dissolution, or winding up of our operations, either voluntary or involuntary, subject to the rights of the Series B Preferred stock and Senior Preferred stock, shall be entitled to receive, after any distribution to the holders of senior preferred stock and prior to and in preference to any distribution to the holders of common stock, $0.001 for each share of Series B Preferred stock then outstanding. Voting The holders of shares of Series B Preferred stock have one vote for each share of Series B Preferred stock held by them. Conversion Initially, each share of Series B Preferred stock was convertible into one share of our common stock. On March 31, 2009, our stockholders approved a resolution to increase the authorized share capital, and to increase the conversion ratio to 132.07 shares of our common stock for each share of Series B Preferred stock. Conversion of Preferred Stock Issued to Common Stock The following table summarizes the amounts as of December 31, 2017:
|  | Shares of Preferred Stock Not Exchanged as of December 31, 2017 |  |  | Conversion Ratio |  |  | Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at December 31, 2017 |
Series B Preferred Stock |  |  | 83 |  |  |  | 132.07 |  |  |  | 10,962 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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